Massive frauds at National Youth Services Council exposed at COPE

The Committee on Public Enterprises (COPE) Sub-Committee disclosed that Sri Lanka Youth Services (Pvt) Ltd, a subsidiary of the National Youth Services Council (NYSC), had registered as a supplier and submitted price quotations to the council at higher rates.

The matter emerged at the COPE Sub-Committee meeting chaired by MP Chandima Hettiarachchi, which met recently (19) in Parliament to review the Auditor General’s reports for the years 2022 and 2023, the current performance, and the progress of implementing recommendations made during COPE meetings held on February 18th and 20th, 2025.

During the meeting held, the Sub-Committee inquired officials regarding the recommendation given to former Chairman of the Council Pasindu Gunaratne to provide all video footage related to the Smart Youth program, including the musical concert held. Officials informed the Committee that the relevant video footage had been handed over. The Committee extensively inquired regarding the payment of Rs. 120 million paid to the respective production entities for this purpose. It was disclosed that Sri Lanka Youth Services (Pvt) Ltd., a subsidiary of the National Youth Services Council, had obtained the contract at a higher cost and then outsourced the work to other institutions.

Furthermore, although the former chairman stated that the Smart Youth program and exhibition had been conducted following a survey report, officials of the National Youth Services Council informed the Committee that no such report was available with them.

The Chair of the Sub-Committee stated that a massive financial fraud had occurred in the conduct of the Smart Youth program. He instructed officials to conduct an independent investigation at the Ministerial level and submit a comprehensive report to the Sub-Committee within three months. He also directed the National Youth Services Council to conduct its own investigation and take legal action accordingly.

Furthermore, the Committee discussed the issue of compensation payments to 40 officials who had faced complications due to political reasons. A Cabinet decision had been issued to appoint a committee of retired officials to handle these payments, but instead, three separate committees had been appointed by the council to grant compensation. The Sub-Committee instructed officials to submit a full report within two weeks, detailing the names of the officials who received compensation, the amounts paid, the dates of promotions, the dates of payments, the dates of approvals, and the names of officials who made the decisions.

Moreover, the Committee extensively discussed a complaint regarding a diploma awarded by the National Youth Services Co-Operative Society Ltd (NYSCO). It was revealed that the Sri Lanka National Youth Services Council had no involvement in this diploma program operated by NYSCO. The Chairman of the National Youth Services Council further stated that NYSCO was no longer under the council’s control. Additionally, it was disclosed that the age limit for selecting the General Manager of NYSCO, which was previously set at 35 years, had now been raised to 50 years. The Chair of the Sub-Committee emphasized that the National Youth Services Council's name should not be misused and directed the council’s board of directors to investigate and take necessary actions.

Furthermore, he instructed the Secretary to the Ministry to summon NYSCO’s top officials for an inquiry and stated that the Sub-Committee’s recommendations on this matter would be forwarded to the Cooperative Commissioner for necessary action.

The Sub-Committee also held extensive discussions on the submission of annual reports and financial statements of the National Youth Services Council and Sri Lanka Youth Services (Pvt) Ltd to Parliament within the stipulated timeframes, as well as the proper functioning of audit and management committees.

The meeting was attended by MPs Samanmali Gunasinghe, Jagath Manuwarna, Asitha Niroshana Egoda Vithana, Lakmali Hemachandra, Attorney at Law, Auditor General W.P.C. Wickramaratne, and several other officials.