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Lack of transparency and loss to country: Visa outsourcing under CoPF fire
View(s):- Calls for comprehensive forensic audit by the Auditor General’s Office
By Sandun Jayawardana
The absence of a competitive bidding process in the outsourcing of online visa applications prevented the Department of Immigration and Emigration (DOIE) from obtaining the “best value for money.” This is especially evident when considering the fees charged by competing destinations are much lower, Parliament’s Committee on Public Finance (CoPF) states in a report.
The Committee, chaired by MP Dr. Harsha De Silva, further notes, that there are additional issues relating to fee structures, the procurement process including technical and software specifications, contractual agreements, potential financial and data security risks, the “ambiguous investment” of USD 200 million by the Consortium that was awarded the contract, and its exclusivity.
In light of these concerns, CoPF has recommended a comprehensive forensic audit by the Auditor General’s Office. The objective of the audit is to conclusively determine the outcomes of the report, enabling the authorities to take necessary action. “Such action could involve the abrogation of the Consortium Outsourcing Agreement or amending specific clauses within the same,” the Committee report suggests.
The Consortium comprising GBS Technology Services & IVS Global-FZCO and its technical partner VFS Global, first presented its proposal to the Ministry of Defence in March, 2022 and subsequently to the Ministry of Foreign Affairs in October, 2022. After the DOIE came under the Ministry of Public Security, the Consortium’s unsolicited proposal was submitted to that Ministry in June, 2023. Following Cabinet approval, the visa outsourcing agreement between the DOIE and the Consortium was signed on December 21, 2023.
The new e-visa platform that was set up by the Consortium replaced the Electronic Travel Authorisation (ETA) platform that was being operated by national telecom provider SLT-Mobitel since 2012. Prior to receiving the Consortium’s proposal, a Cabinet Appointed Negotiation Committee (CANC) was established to evaluate a proposal submitted by Mobitel in November 2020 (revised in August 2023) for carrying out system improvements to the ETA. The CANC was also tasked with overseeing the development of the System Specification Requirement (SSR) by the DOIE. Both Mobitel and the Consortium submitted their proposals before the finalisation of the SSR. Nevertheless, the Consortium’s proposal was accepted, CoPF points out, adding that this raises concerns regarding the process by which proposals were submitted without a finalised SSR. The Committee remarks that if the SSR had been finalised the DOIE could have conducted a truly competitive procurement process.
CoPF’s review of documents has also revealed a potential contradiction. A Cabinet decision dated January 22, 2020, authorised Travelson International Travel Service (Shanghai) Company Limited to handle ETA applications specifically for Chinese nationals. “This existing agreement raises concerns about a potential conflict with the role of the Consortium, designated as the exclusive facilitator for the DOIE.”
The report also claims that Mobitel “proposed a comprehensive suite of service comparable to that of the Consortium at USD 1.00 per visa.” The Committee comments that this “is a staggering 94.5% lower than the Consortium’s fee of USD 18.50 per visa.” CoPF states that the vast price difference confirms the overall weakness of the procurement decision, adding that the fee components, including discrepancies in service fees and the presence of convenience fees, lack transparency.
Additionally, a Cabinet Memorandum dated September 8, 2023, from the Ministry of Public Security, indicated that IVS-GBS Global Services had proposed to invest USD 200 million to provide the necessary technical equipment, software, and knowledge for system integration with the DOIE to deliver these services.“However, upon reviewing the Consortium Outsourcing Agreement and proposal, the specified investment amount of USD 200 million is not mentioned.
The report also highlights what the CoPF calls a “significant data breach” identified by popular travel vlogger Will Davis, who goes by the name “Trek Trendy.” In May, 2024, Mr. Davis (who has over 1 million subscribers on YouTube), said on his social media channels that he was getting other people’s tourist visas emailed to him complete with full names, address and passport info. While the Ministry of Public Security had clarified that the circulated data was dummy data, the Committee stresses that the incident raises concerns about the system’s security. “The random circulation of any data, even dummy data, to foreign visa applicants is a potential security risk.”
| VFS Global paints a positive picture As the outsource partner to the government, the Consortium continues to deliver on its mandate which is documented in the contract, VFS is the technical partner to the new e-visa platform and the spokesperson said the new visa regime has expanded from the ETA regime of a 30-day visa to 17 different types of visas ranging from 30 days to 10 years. He said more than 280, 000 applications had been processed during the three months that the new platform has been in operation. Out of all the applicants who have applied for visas, about 20% have applied for long-term visas lasting for more than 30 days. “As we stand today, there are more than 50, 000 individuals who possess multiple entry visas which have a duration of at least 6 months and above.” The spokesman pointed out that there is more propensity to visit a country if a traveller had a longer-term visa which allows multiple entry. He noted that the more expensive long-term visas, within the first 80 days, have resulted in incremental revenue earning for the government of USD 4.5 million through visa fees. The Consortium’s overall mandate with the government also includes doing a global marketing campaign for Sri Lanka, said the spokesman. “We have already carried advertisements promoting Sri Lanka in India. Similar advertisements are going to be released in other countries including the Regarding complaints that the new visa regime requires more documentation from a traveller than what was asked under the ETA, the VFS Spokesman noted that one of the objectives of the e-visa regime is to ensure national security and that the government has also required more information about travellers in order to control illegal overstays. “Earlier, you didn’t have to upload any documents but now, you need to upload a passport copy, a photograph and certain additional documents if you are coming for a long-term visa and depending on the nature of your visit.” These specifications have been given by the DOIE. He also said that they have introduced various enhancements to the platform based on feedback from travellers. This includes a He pointed out that VFS operates in 151 countries and have delivered e-visa platforms in 12 of them. “Given that we have delivered the e-visa platform to twelve other countries, there are lessons and best practices that we bring in from various other parts of the world in terms of where we have implemented this,” he added.
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| Alles stands his ground, ready to debate with facts and figures Speaking during a media briefing on Thursday, Public Security Minister Tiran Alles hit back at the CoPF’s report. He stressed that the process of signing the visa agreement with Mobitel in 2012 had followed the same process that was followed when entering into the agreement with the Consortium. Mr. Alles noted that the only visa that was available on the ETA operated by Mobitel since its inception was the 30-day single entry visa and that the government had obtained Parliamentary approval in November last year to expand this to include new visa categories. Mobitel had failed to upgrade its ETA despite multiple requests by the DOIE. The proposal that Mobitel had submitted while the DOIE was finalising the agreement with the Consortium too only included the 30-day single entry visa, the minister said. Mr. Alles said 17, 133 tourists had arrived in Sri Lanka under the newly introduced long-term visa categories during the first 15 days from April 15-30 of the new platform being rolled out. As such, the new visa regime operated without any issue before the situation changed in May following the viral video of a passenger whose Russian partner did not have a valid visa to enter Sri Lanka, he argued. Many politicians then got on the bandwagon to attack VFS for political gain, Mr Alles charged. Despite this, 16, 877 passengers came to Sri Lanka under the newly introduced visa categories in May, while 12, 286 arrived in June. The minister scoffed at allegations that a fraud had been committed through the signing of the agreement, challenging the accusers to provide proof. He said the government had “not spent even five cents” to set up the platform and questioned how any fraud could have been committed in such a situation. “I take full responsibility for this matter and I am ready to debate it with anyone with facts and figures,” he added. Mr. Alles also took aim at CoPF Chairman Dr. De Silva, stating that 16 MPs who are members of CoPF have submitted a joint letter to the Speaker claiming that they did not approve the report and were unaware it was going to be presented in Parliament last week. |
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