COPF crucifies visa outsourcing deal

• Says absence of competitive bidding process likely resulted in deal that does not provide best value for money
• Calls for immediate comprehensive forensic audit of entire procurement process by Auditor General to address critical issues and ensure transparency, accountability
• $ 200 m investment promised to Cabinet remains un-invested and not mentioned anywhere in agreement
• Hints at possible abrogation of outsourcing agreement
• COPF member claims visa deal 10 times worse than Central Bank’s bond scam
• Speaker urged to invite Auditor General to examine COPF report and refer it to CID or CIABOC

The controversial non-transparent and non-competitive visa outsourcing deal has been literally “crucified” by the Committee on Public Finance (COPF) which has called on the Auditor General to launch an immediate probe, which could even mean abrogation of the agreement.

In a statement, the COPF, chaired by MP Dr. Harsha de Silva, said it has released a critical report revealing major discrepancies in the procurement process and agreement with the Consortium comprising GBS Technology Services, IVS Global-FZCO, and VF Worldwide Holdings Ltd. The Committee’s findings highlight significant concerns and recommend urgent corrective actions.

The key findings are:

Uncompetitive procurement process:

• The Consortium was appointed without a competitive bidding process, preventing the Department of Immigration and Emigration (DOIE) from securing the best value for money.
• Proposals were submitted before finalising the System Specification Requirement (SSR), raising concerns on procedural integrity.

Critical issues identified:

•  Unclear fee structure: Lack of transparency in fee components, including discrepancies in service fees and convenience fees.
• Data breach and termination: A significant data breach was reported by a major travel vlogger in May 2024 potentially triggering a termination clause.
• Conflicting exclusivity: The exclusivity granted to the Consortium contradicts the presence of existing service providers and the recommendation by the evaluation committee.
• Un-invested funds: The $ 200 million investment promised to Cabinet remains un-invested and not mentioned anywhere in the agreement.
• Terminated service provider: Mobitel, the previous ETA service provider since 2012, submitted multiple proposals for system improvements and a comprehensive proposal for new services was overlooked.

Recommendations:

• Comprehensive forensic audit: The COPF recommends that the Auditor General undertake a comprehensive forensic audit of the entire procurement process. This audit should be completed at the earliest opportunity to serve as the foundation for necessary actions, which could include abrogating or amending the Consortium Outsourcing Agreement.

• Data protection measures: The COPF urges the Ministry of Public Security (MOPS), DOIE, and the Sri Lankan Data Protection Authority to review the KPMG report and take immediate and decisive actions to ensure the complete security and protection of all data handled through the ETA application process.

COPF Chairman Dr. Harsha de Silva said, “The absence of a competitive bidding process in the procurement of online visa services has likely resulted in an agreement that does not provide the best value for money. Our findings call for immediate action by the Auditor General to address these critical issues and ensure transparency and accountability, which could even mean abrogation of this agreement.”

Separately in Parliament, de Silva said: “We learned that the Auditor General has already begun such an audit and we request that this be completed soon and the report handed over to Parliament and other relevant institutions.”

Dr. de Silva noted the challenges faced by the Committee in compiling the report, including non-cooperation and humiliation from some officials. “Despite these obstacles, the Committee thoroughly scrutinised the information provided, resulting in a detailed report of around 1,000 pages with numerous annexures related to the multiple companies involved in the deal,” he said.

One key revelation was that VFS Global is not the prime contractor for the deal. 

“Although it is often referred to as VFS Global, the prime contractor is GBS Technology Services. IVS Global – FZCO and VFS VF Worldwide Holdings Ltd., are the contractors according to our investigations,” de Silva disclosed.

“The Committee’s opinion is that this deal was an obstacle to the Department of Immigration and Emigration’s ability to secure the best value,” he said adding under the new visa system, applicants must pay an $ 18.50 service fee and a $ 7.27 convenience fee, totalling over $ 25. 

“Without this unsolicited proposal, the cost of visas could have been much lower,” he argued.

Dr. de Silva recalled that the deal was awarded to VFS when the Department of Immigration and Emigration had already agreed to extend a contract with SLT-Mobitel, which provided the same service at a cost of $ 1 for the past 12 years.

“The COPF has instructed the Controller General of the Department of Immigration and Emigration to conduct an investigation and attend to the matter immediately to avoid becoming victims of scams and identity theft,” he added.

Additionally, COPF member MP Rauff Hakeem urged the Speaker to invite the Auditor General to examine the report and refer it to the CID or the Commission to Investigate Allegations of Bribery or Corruption (CIABOC), given the serious implications of the deal. Hakeem alleged that that the visa deal is 10 times worse than the Central Bank’s bond scam, calling it a $2.6 billion scam.

Access the full report via https://www.youtube.com/watch?v=f037THfRVnI