Courtesy Hiru News

A massive theft occurred involving USD 2.5 million from the Treasury, allegedly reaching a third party, according to Samagi Jana Balawegaya Member of Parliament Harsha de Silva.

The Member of Parliament made these remarks while making a special statement in Parliament today (5).

The system is crippled because high-ranking officials, including the Secretary to the Ministry of Finance, lack proper experience in financial management and because individuals from other services are appointed to such positions instead of skilled administrative officers.

The Member of Parliament questioned why the Department of External Resources, which can only intervene in bilateral debt negotiations, became involved in this transaction.

The process is in a muddle even though the servicing of government debt must take place through the Department of Debt Management.

He further stated:

”A massive theft occurred here. Hundreds of thousands of dollars are lost. Ultimately, the taxpayers of this country must pay for it; no one else. It is not brought from Pelawatta. But the main thing I have to say is that when the former Minister of Finance and the Deputy Minister described this, they spoke as if there is no problem and this is a normal occurrence. It is not so. I told my members that since we held a closed-door session, the facts presented are only a summary for the public and Parliament. But according to what was said there, we understand there are many complications in this massive process. There are a great many.

For example, why was a Department of External Resources involved in this? The Department of External Resources has no connection to this transaction. Here is the Act. This Act states very clearly that the Department of External Resources can only be involved in negotiating bilateral loans. Next, it says that in accordance with the Debt Act, the timely servicing of government debt must be done through the Department of Debt Management. So why this confusion? There is a major problem here, which is that these people do not know what they are doing. The story about ‘L-boards’ is proven today. Also, usually, individuals from the SLAS come to these positions after working in thirty or forty places before coming to a place like the Ministry of Finance. Everyone knows that what is done now is ‘Apocalypse’. What happens in ‘Apocalypse’? People from the Planning Service are put into these places.

I challenge anyone to say if I am wrong. I might be wrong. But as far as I know, both the DG of PDM and the DG of ERD are from the Planning Service. People in the Planning Service do not have the necessary experience. Also, for the first time in Sri Lankan history, the Treasury Secretary is a person who previously sat here as a Member of Parliament. He also lacks experience in this management.

I know that when this was appointed, when we were in government, I oversaw the SEC as the Deputy Minister. At that time, there were perhaps ten or fifteen directors at the SEC. This gentleman worked as one of them. After that, the Secretary to the Ministry of Finance is a person who must perform a very large role. If the Secretary and the DGs do not have this experience, there is no need to ask about what is happening.

The other thing is the delegation of authority. It was mentioned that a payment of nine hundred thousand was made once. Minister Anil said a payment of nine hundred thousand dollars was made. Who approved a payment of nine hundred thousand dollars? Can a director do that? Was there no delegation of authority? In any institution, the first task a Secretary should know is to delegate—this person for one hundred thousand, this person for five hundred thousand, and the DG for one million. It is said a payment of nine hundred thousand US dollars was made. How was it done?

Therefore, a theft occurred here. No one can escape from that. A theft occurred. Who the thief is must be found. Let the CID do that. You are there, and I am in our Finance Committee. Let us find the policy and administrative problems in this in the Finance Committee. Let us find them and recommend what should happen.

However, I say one last thing. For three turns, the Finance Minister, the Treasury Secretary, or the Deputy Secretaries did not come to our committee. I eventually wrote a letter to the President regarding this. I will table that as well. Even after that letter was written, they said just the other day that they cannot come. That cannot be done. I was too good; that is what caused the trouble. I was too good. I could have brought a privilege question if I wanted. I did not. Why? I gave them an opportunity. But do not take undue advantage of that opportunity. Finally, we are told from various places that we gave these people too much leniency.”