“Disposal of unproductive non-financial assets”
I refer to an article in the Business Times on April 1 under the above headline where it is stated that a Comptroller General (CG), appointed under the Finance Ministry, has been entrusted mainly to prepare and maintain a list of central assets covering all non-financial assets of the government for monitoring purposes.
While appreciating this move, which should have been initiated long ago, I wish to mention that apart from disposing unproductive non-financial assets, there are unproductive financial assets as well in the government organisations and public enterprises controlled by the state (SOBE).
Unproductive financial assets include the inventories as well and there are redundant and old inventories in most of the SOBEs and other departments. Hence it is advisable for the CG to collect data on such assets as well for monitoring purposes in addition to the unproductive non-financial assets.
This fact would assist some of these organisations to get away from liquidity crises and assist to maintain their liquidity positions to satisfactory levels.
Secondly, I feel that this exercise should cover the non-productive military assets as well maintained by all three forces and the Police, if so far not captured under this exercise.
Thirdly, I feel that a sound budgetary control system should be placed under the CG to monitor government expenditure for purpose of cost management. At least a quarterly variance report should be prepared and reviewed for minimising costs and to avoid wastage, theft, corruption and such other unproductive costs.
For this purpose the CG may establish budgetary control sub committees at ministry levels covering all establishments as a preventive measure.
Also, it is advisable for copies of the CG’s quarterly reports to be forwarded to the Auditor General and the COPE for their observations and suitable action in order to maintain transparency.
I wish and hope that when preparing regulations for the above purpose, the CG would consider these items as well, among other areas.
Mahinda Wimalasena
Kiribathgoda