Sri Lanka’s Land Reforms Commission (LRC) is alleged to have caused a massive loss to the state running up to millions of rupees by committing financial irregularities including failure to recover money given to a company for non-implemented computer system, unauthorised transactions, improper assessments and estimates. These details were transpired when the Committee on Public [...]

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LRC foregoes Rs.17 m over non- implemented computer system

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Sri Lanka’s Land Reforms Commission (LRC) is alleged to have caused a massive loss to the state running up to millions of rupees by committing financial irregularities including failure to recover money given to a company for non-implemented computer system, unauthorised transactions, improper assessments and estimates.

These details were transpired when the Committee on Public Enterprises (COPE) met in Parliament recently to examine the Auditor General’s report for the year 2020 and the current performance of the LRC.

The committee recommended to take immediate action against the alleged private computer company and recover the amount of Rs. 17 million for the creation, development and implementation of a fully integrated computer system and take disciplinary action against the officials involved in the transaction.

A sum of Rs. 17 million was paid to the said company 21 years ago in 2002 but the integrated computer system has not been installed at the LRC as yet, the Auditor General’s report revealed.

The report revealed that the Commission has also failed to recover its outstanding debt amounting to Rs. 2,135 million.

This amount remained as receivable for a period of 10-30 years from seven state institutions, and Rs. 2.3 million was still to be recovered from eight persons for the leasing of lands over a period of 20 years, as at the end of the year 2020/2021 under revive

COPE recommended to the Ministry of Lands to update the 50 year-old Land Reforms Commission Act and carry out the necessary measures to restructure its operations.

COPE observed irregularities in the transfer of land by the commission and thus the COPE chairman recommended that a report containing detailed information about the transfer of land in the last 20 years should be submitted to the COPE committee soon.

It has also directed the Lands Ministry to appoint a task force to identify and estimate the value of land and recommended that the Secretary to the Ministry submit a report to within two weeks indicating the responsibilities assigned to the task force.

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