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Public funds continue to be wasted in state sector

Auditor General’s report
By Chandani Kirinde

Public funds continue to go waste in many state institutions due to operating inefficiencies and noncompliance with rules and regulations, according to the latest Auditor General’s report.

Among the 25 state institutions that came under the Auditor General’s scrutiny was parliament where his report said the internal audit mechanism was not satisfactory. It noted that palriament’s Internal Audit Unit (IAU) which should be independent of those entrusted with the responsiblity of financial control had been brought under the director of finance.

Some of the issues highlighted with regard to Parliament included the printing of 10,000 information brochures at a cost of Rs 1.1 million for a public awareness programme but even a year after they were printed, only some 100 had been distributed.

In another case, a consultant had been paid more than Rs 1.2 million in 2004 and 2005 for the preparation of a human resources development plan under the parliament modernisation project but the plan had not been implemented, the report said.

Another area of irregularity the report has pointed out is the laundering of linen and uniforms. For this purpose, Rs. 1.8 million had been estimated in 2007 but the actual amount paid for it amounted to Rs. 3.5 million, about 95 per cent over the estimated amount.

The report also said it raised nine queries regarding the accounts of the Ministry of Child’s Development and Women’s Empowerment, but the ministry had failed to furnish details about entries amounting to Rs 95.9 million.

In the Ministry of Highways, the report said that even though preliminary work on the Colombo-Katunayake expressway had begun in 2000 by a South Korean company and Rs 6,688.7 million had been spent up to December 31, 2007, the construction work had come to a halt because a donor for the project was not available.

Similarly plans were made in 1990 for the construction of the Colombo-Kandy expressway and Rs 32.7 million had been spent by December, 2007 on preliminary work, yet a contract had not been awarded.

 
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