Timber Corp's tall accounts probed

By M. Ismeth

The report said 65 cheques amounting to Rs. 1,104,125 had been returned to customers and the corporation had failed to recover Rs. 634,245.

Under sub-heading 'Lack of evidence for audit' the following items in the accounts had not been accepted in the audit due to lack of documentary proof.

l The rent agreement with the Ministry of Land and Agriculture for Rs. 8,145,542

l The rent agreement with the Ministry of Forestry and Environment for Rs. 3,531,530 

l Cost of fuel and vehicle repairs amounting to Rs. 12,777,032

l Trade debtors accounts amounting to Rs. 187,847,598 and Rs. 104,282,367 respectively and Rs. 35,299,793 of miscellaneous creditors.

l Rs. 497,802,499 which is the balance of profit and loss account after appropriation on December 31,1996.

l The working director and deputy general manager (Finance) had spent Rs. 15,532 and Rs. 10513 respectively on their mobile phones from August to end of December.

l No action had been taken to recover Rs. 113,560,362 under uneconomical transactions.

l Although the corporation had deposited Rs. 3,301,868 with filling stations and multi-purpose cooperative societies, it had obtained fuel on credit. 

l An interest income of Rs 4,010,795 was lost due to encashing Treasury bills prior to maturity. 

Inability to recover Rs. 20,558,160 as house rent from 1989-1996 for the head office of the Forest Department and payment of income tax, unfinished 127 furniture units worth Rs. 188,490 lying in the new depot at Kaldemulla for over three years, 292 units of damaged furniture worth Rs. 730,458 are lying in the machine leasing stores

l Under omissions in accounts school components worth Rs. 1,412,300 were found in the CCA Regional office, Orugodawatte.

l A stock of imported timber worth Rs. 1,416,808 at Orugodawatta had not been valued and taken into account.

l The land in which the head office is situated which was purchased for Rs. 7,200,000 by the corporation was acquired by the Ministry of Agriculture and Lands had been included as a fixed asset.

l Furniture had been bought by the corporation for Rs. 191,500 for an office of the Ministry of Forestry and Environment through its fund instead of indicating it as dues from that ministry. It had been included under miscellaneous debtors as an amount due from the furniture dealer.

Select committee to probe allegations

The proposal for a select committee came following allegations by the Opposition of corruption and malpractice in the armed forces.

The Cabinet also has approved the setting up of a Shipping Development Fund to promote and develop shipping and related services and a pilot project to cultivate medicinal herbs on a proposal made by the minister of Indigenous Medicine.

Meanwhile, the Media Information Unit celebrated its first anniversary last Friday by launching its website .

The website can be accessed on www.srilan-kasmic.com and would disseminate news on a daily basis.

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