Wastage unlimited

The internet is an interesting tool that spews out entertaining factoids. For example at 71 members strong, Uganda has the third largest cabinet in the world after North Korea and Kenya. This is in circumstances where the global average of ministers is 30. The average for Sub-Saharan Africa is 40. Sri Lanka stands well ahead of the pack with its latest additions and changes but latest reports of the Petroleum Ministry spending Rs. 10 million to hold a welcome for the latest “public servant” makes for even more shocking reading.

The Ceylon Petroleum Corporation (CPC) has spent Rs. 4.2 million to colour-wash its Sapugaskanda complex to welcome new Petroleum Minister Anura Priyadharshana Yapa on Tuesday. Unions have charged that the overtime payment to about 400 workers who had colourwashed the refinery for four days was estimated to be Rs. 3.2 million. Deciding that more is always better, the corporation has also purchased 35 flower pots to beautify the place for the event, at Rs. 3,200 each. Such potty ideas would no doubt be excused by the new official who in all probability will not even bother to inquire into the expenses that have been made on his behalf by public funds.

The sweet smell of extra money will be enjoyed by the drivers, clerks, security officers and executive staff involved in organising the welcoming ceremony as they too are entitled to overtime payments. This ludicrous situation is highlighted for the purpose of illuminating the needless wastage, corruption and mismanagement that has maligned public enterprises for decades.

CPC in 2012 alone is reported to have made losses exceeding Rs. 95 billion. While part of this has happened due to the increasing prices of oil and the refusal of the Government to have an open and transparent pricing policy, a much larger weight has to be placed on mismanagement and corruption. The inability of Government committees such as the Committee on Public Enterprises (COPE) to deal with the burgeoning public expenditure being wasted by public enterprises is largely due to the fact that it is not given enough teeth to act decisively. With good governance and transparency being ignored consistently, it is seen as an effective method of getting rich off taxes rather than supplying a service to the consumer.

Despite the fact that the CPC insists it incurs losses due to absorbing high fuel costs and giving fuel out at subsidy rates to its partner-in-crime, the Ceylon Electricity Board (CEB), there has been little effort being made to address needless expenses. If such a simple event was used to squander this much money, the amounts spent on other functions boggles the imagination.

CPC, in particular, has been tarred with this brush more than once after consignments of substandard fuel was imported to the country on several occasions. Following suspension of long term contracts with companies and US sanctions on Iran, the CPC resorted to spot buying at higher prices. The tender procedures and transparency of these actions are rarely questioned informatively, with the Government preferring to turn a blind eye. The pervasive sentiment seems to be “others are doing worse so why not me?”

In the absence of strong and consistent anti-corruption efforts from the top, an independent Police force and respect for rule of law, there is little hope for such splurging to end. Public servants have become a force unto themselves and consider service to their wallets more important than the masses. Perhaps their dismissal is valid given that the common man has not been fiercely active in fighting for his rights. Yet all these contributing reasons create the perfect environment for Sri Lanka’s true potential to remain unrealised.