By Maheesha Mudugamuwa Courtesy  The Morning

Scrutiny over financial and administrative irregularities in Sri Lanka’s State universities has intensified in recent times, thrusting institutions like the Sabaragamuwa University into the spotlight. 

The Committee on Public Enterprises (COPE) convened on 4 June to examine the Auditor General’s report for the 2023 financial year, placing the Sabaragamuwa University’s management under intense scrutiny. 

Chaired by MP Dr. Nishantha Samaraweera, the session sparked widespread debate over whether parliamentary questioning of university officials would facilitate financial recovery or cause detrimental effects to the university’s functioning.

Nevertheless, following the revelations, COPE recommended establishing an independent investigation committee to probe allegations of corruption and mismanagement at the Sabaragamuwa University. 

Importantly, COPE stipulated that no current university governing body member be appointed to the committee and instructed the Ministry of Education, Higher Education, and Vocational Education to ensure a swift and thorough investigation.

Sabaragamuwa University findings 

The inquiry also highlighted troubling issues concerning student welfare, notably the tragic suicide of second-year student Charith Dilshan. The university’s student disciplinary officer revealed that he was not informed about a New Year festival event – approved without proper procedures – that was suspected to have contributed to the student’s death. 

Despite warnings about potential risks in student hostels, the university administration appeared to have failed in oversight. COPE has called for a formal and independent investigation into the incident.

In another serious concern, COPE scrutinised a 2022 incident where the university allowed a contractor to remove 500 cubic metres of soil from university land without charge, following a request from an Imbulpe Pradeshiya Sabha member. Although the administration later deemed the approval improper, a Police complaint was filed only two years later, raising questions about the delay and accountability.

Further criticism was directed at the university’s sports complex and stadium, built in 2014 for over Rs. 123 million. The Auditor General reported poor drainage, soil erosion, and structural damage affecting usability. While the Central Engineering Consultancy Bureau rehabilitated the facility as per COPE’s earlier recommendations, ongoing maintenance was neglected. 

University officials attributed the issues to the area’s topography but could not explain the lack of a permanent engineer or clear maintenance responsibility. The sports complex’s upkeep was shifted haphazardly between the cleaning and sports divisions without accountability.

The COPE session also revealed troubling financial mismanagement during university construction projects. Payments exceeding Rs. 2.6 million were allegedly made to a contractor based solely on a project engineer’s certification, without formal claims. 

Additionally, a new university library project had allegedly suffered a contractor breach of agreement, resulting in a loss of over Rs. 28.8 million, as the university failed to encash the performance bond. Despite a surcharge notice, recovery remains pending.

Committee appointed to investigate 

Against such a backdrop, responding to these concerns, the Ministry of Education, Higher Education, and Vocational Education announced the establishment of a four-member independent committee to investigate financial mismanagement and administrative lapses at the Sabaragamuwa University. 

Convened by Ministry Secretary Nalaka Kaluwewa, the inquiry team is tasked with delivering findings within two months.

The panel is chaired by retired Justice of the Supreme Court Vijith K. Malalgoda, lending considerable legal gravitas to the proceedings. Other members include former Vice Chancellor of the University of Ruhuna Prof. Gamini Senanayake, former Additional Secretary to the Ministry of State Resources and Enterprise Development W.M.C. Bandara, and University Grants Commission (UGC) Assistant Internal Auditor Hasanthi Pathirana, who serves as Committee Convenor.

The committee will review procurement, financial reporting, staff appointments, and administrative processes, aiming to recommend reforms that enhance governance and transparency in higher education institutions.

University of Colombo audit findings

In addition to the Sabaragamuwa University, the University of Colombo also faces significant audit findings. 

In 2013, a company limited by guarantee was formed by employing Faculty of Science staff without formal university approval. Despite a Memorandum of Understanding signed five years later mandating annual audited financial statements be submitted to the university’s Council, none had reportedly been provided up to the audit date.

Furthermore, the agreement had lacked provisions for royalty income to the university. Over nine years, only Rs. 1,885,690 has been contributed, with no income recorded during the year under review. The university has also lacked a system to safeguard the company’s inventions and patents under its intellectual property portfolio.

The audit has further disclosed that 13 research projects worth Rs. 8.19 million, funded between 2018 and 2020, remained incomplete beyond their scheduled deadlines. Seventeen additional projects valued at Rs. 8.82 million were abandoned. The university management has indicated funds would be redirected to other research activities, but the audit recommended timely completion of approved research.

Additionally, the university had allegedly not secured legal ownership of eight lands and four unassessed lands valued at over Rs. 25 billion. The management had attributed delays to other Government agencies but was urged to expedite the process.

The audit has also revealed that Rs. 117.9 million across 44 designated funds was left unutilised in 2023, despite total recurrent and capital expenditure exceeding Rs. 800 million. The report has urged effective use of funds for their intended purposes.

FUTA stance 

Dr. Anuruddha Karunaratne of the Federation of University Teachers’ Associations (FUTA) expressed support for financial and administrative inquiries within universities, provided they were conducted with fairness and a focus on systemic improvement rather than punishment.

Speaking in the context of ongoing inquiries at Sabaragamuwa University, Dr. Karunaratne stated that FUTA had no objection to investigations into financial mismanagement or administrative shortcomings, noting that public universities were funded by taxpayer money and must uphold transparency and accountability.

We are responsible for public funds and we welcome any inquiry aimed at uncovering facts and improving governance. However, if such inquiries are used as tools to undermine the academic community or discredit the university system, we strongly oppose such moves,” he said.

Referring specifically to the case at Sabaragamuwa University, he said that the academic community was confident that there had been no intentional wrongdoing. We have allowed the process to take its course. Based on our understanding, academic staff have acted correctly in financial matters. While some administrative lapses may have occurred, these are often the result of systemic inefficiencies rather than misconduct,” Dr. Karunaratne noted.

He pointed out that university academics were trained to excel in teaching and research, not necessarily in administration. Furthermore, he raised concerns about the qualifications of university administrative officers, who, despite managing large budgets and wielding significant authority, may lack the professional training of their counterparts in the wider public service, such as ministry secretaries or Government accountants.

There may be errors in management or decision-making, but we must differentiate between systemic faults and intentional wrongdoing. We welcome dialogue and scrutiny, as long as it is aimed at strengthening the system and establishing good practices, not penalising individuals,” he emphasised.

SL’s university system 

Sri Lanka’s higher education system comprises 17 State universities, all governed under the regulatory framework of the UGC, the apex body responsible for policy formulation, funding allocation, quality assurance, and overall coordination of university education.

Each university operates autonomously but adheres to regulations and standards set by the UGC and the Ministry of Education, Higher Education, and Vocational Education. Universities are typically organised into faculties (such as arts, science, engineering, medicine, law, agriculture, and management), which further divide into departments focusing on specific academic disciplines.

At the helm of each university is the vice chancellor, appointed by the Government, who oversees academic, administrative, and financial operations. Supporting the vice chancellor are various administrative officers, deans of faculties, registrars, and financial officers who collectively manage day-to-day functions.

Governing councils and senates, comprising academic staff and external members, provide oversight and strategic direction, including decisions on academic programmes, budgeting, and policies.

Despite this structured framework, universities often face challenges in maintaining efficient governance due to bureaucratic hurdles, funding limitations, and occasional overlaps in authority between the UGC, ministry officials, and university administrations.