COPE uncovers Rs. 50 m scam at PGIS of Peradeniya University

• University official had fraudulently obtained Rs. 50 m from FDs maintained by PGIS
• CID investigation underway with cornered official interdicted

A senior official of the Postgraduate Institute of Science (PGIS) affiliated to the University of Peradeniya had fraudulently obtained Rs. 50 million from fixed deposits (FDs) maintained by the PGIS, it was revealed at a meeting of the Committee on Public Enterprises (COPE).

The officer involved in the financial misappropriation was interdicted after the fraud came to light and investigation by the Criminal Investigation Department (CID) of the Police is underway, the Committee was told.

The council of the University of Peradeniya is conducting a disciplinary inquiry into how the money was defrauded while the Auditor General’s Department is taking steps to impose surcharges to recover the lost money. This was informed to the committee when it met to review the Auditor General’s report for the years 2018 and 2019 and the current performance of the PGIS.

Investigations so far have revealed that the PGIS had closed 14 fixed deposits which were under the Peradeniya Branch of People’s Bank, during the period from 1 January 2009 to 31 December 2016 and obtained a sum of Rs. 93 million.

Out of this amount, only Rs. 37 million (Rs. 37,948,865) has been invested in new fixed deposits and Rs. 50 million (Rs. 50,338,160) has been fraudulently obtained personally by the Senior Assistant Bursar of the PGIS of University of Peradeniya, the committee found.

The committee also discussed the payment of an allowance of 10% made to the librarian of the Faculty of Science, in addition to the relevant monthly salary for his work in the Postgraduate Institute, without the relevant approval.

The COPE inquired as to why the report had not been submitted by the PGIS even though a sum of Rs. 6,386,200 had been paid to the PGIS for the submission of an Environmental Impact Assessment report (EIA) on the construction of the proposed Badulla-Kandy Expressway.

The committee also noted that the Research and Scholarship Fund, which was established by the Postgraduate Institute of Science to provide research and scholarship facilities, had not spent any money during the year 2019 and had a balance of Rs. 8,038,458 by the end of the year. The Director – PGIS stated that 12 scholarships had been awarded to suitable scholarship recipients.

COPE recommended that a separate Internal Auditor be appointed for the audit of all postgraduate institutions rather than relying on the Internal Audit Department of the university. 

In addition, the committee instructed the Secretary to the Ministry of Education Prof. Kapila Perera to appoint a subcommittee on the administrative affairs of all nine postgraduate institutions throughout the country and submit a report within six months.

The meeting was chaired by COPE Chairman MP Charitha Herath. State Ministers Susil Premajayantha and Indika Anuruddha, MPs Patali Champika Ranawaka, Eran Wickramaratne and Premnath C. Dolawatta, Secretary to the Ministry of Education Prof. Kapila Perera, University Grants Commission (UGC) Chairman Prof. Sampath Amaratunga, University of Peradeniya Vice Chancellor Prof. Upul Dissanayake and other officials participated in the meeting.