COPE questions Litro Gas on use of private auditors instead of Auditor General

The Committee on Public Enterprises (COPE) has questioned the failure of Litro Gas Lanka and Litro  Gas Terminal to conduct its audits through the Auditor General Department.

Litro Gas Lanka and Litro Terminal Lanka which  operates under the Sri Lanka Insurance Corporation have conducted their audits through a private company disregarding the Auditor General’s notice to have the audits conducted through them.

COPE questioned the grounds of conducting an audit by a private company called KPMG based solely on the decision of the Board of Directors.

The loss of Rs. 36 million due to the closure of branches in the Maldives and the Seychelles by the Sri Lanka Insurance Corporation was discussed  at the COPE meeting held on Tuesday under the chairmanship of MP Charitha Herath.

COPE directed the Chairman of the Sri Lanka Insurance Corporation to submit an expeditious report on the reasons for the closure of the Maldives and Seychelles branches of the Sri Lanka Insurance Corporation and the financial losses and expenses incurred by the Corporation for opening and closing those branches, a press release from the Department of Communication in Parliament said.

The COPE Committee chairman expressed his astonishment regarding as to why Litro Gas Lanka and Litro Terminal Lanka as shareholders of Sri Lanka Insurance Corporation owning 99.94% and 100% of shares respectively conducted an audit through a privet company although the Sri Lanka Insurance Corporation themselves is conducting their audit through the Auditor General.

Addressing the Committee, the Chairman of Litro Gas Lanka stated that there is no legal impediment for a private sector company to carry out an audit as decided by the Board of Directors.

State Ministers Susil Premajayantha, Nalaka Godahewa MPs Jagath Pushpakumara, Patali Champika Ranawaka, Premnath C Dolawatta, S.M Marikkar,  S Rasamanikkam and officials representing the Sri Lanka Insurance Corporation and Litro Gas Lanka were  present at the meeting.