Audit of 14 State-owned entities not under AG

Monday, 25 March 2013 01:10 - - {{hitsCtrl.values.hits}}

By Ashwin Hemmathagama

Our Lobby Correspondent

State-owned companies which have failed to provide a decent return during the past 10 years but continue to be funded by State coffers, creating controversy, were taken up by Opposition legislator Ravi Karunanayake last week in Parliament.

Amazingly, none of these loss-making companies are audited by the Auditor General’s Department but subjected to a private audit, which has “no binding with the shareholders,” which includes the Government.

Mihin Lanka Ltd., Shipping and Aviation Information and Research Ltd., Polipto Lanka Ltd., Sri Lanka Thriposha Ltd., Rakna Arakshaka Lanka Ltd., Lanka Logistic and Technologies, Sri Lanka Savings Bank, Lankaputhra Development Bank Ltd., Sri Lanka Insurance Corporation Ltd., State Trading (Co-Operative) Wholesale Co Ltd., Lanka Sathosa, State Resources Management Corporation, and Gal-Oya Plantation Ltd., are the 13 companies established during the past 10 years.

“Why have you kept the SriLankan Airlines out of this list? In the absence of audits conducted by the Auditor General’s Department, SriLankan Airlines should also be included in the list,” said UNP MP Karunanayake.

In response, Minister of International Monetary Co-operation and Deputy Minister of Finance and Planning Dr. Sarath Amunugama confirmed that Sri Lanka Insurance Corporation Ltd., which happens to be the only company running at a profit, has paid the Government Rs. 6,720.4 million as dividends for 2011.

“I agree with you that SriLankan Airlines is running at a loss and the balance sheet is heading south! Lack of operation expenditure has made it difficult to operate or expand SriLankan Airlines, but they have prepared a new business plan for the next five years taking in anticipated tourist arrivals,” said Dr. Amunugama.