COPE spotlights six bad transactions

The People’s Bank had invested Rs. 1,137 million in shares of SriLankan Airlines and their value had come down by Rs. 848.8 million in 2010, says the interim report of the Parliamentary Committee on Public Enterprises(COPE) which was presented in the House yesterday.

In its interim report presented ahead of the annual budg-

In its interim report COPE has identified six transactions of poor accountability at various state institutions

et, COPE has identified six transactions of poor accountability at various state institutions. The People’s Bank made this investment in 4,236,135 shares of SriLankan Airlines when the Emirates Company sold them.

The bank was asked to act responsibly in future and not invest in loss making institutions.

Besides this, the outstanding value of non-performing loans given to 109 persons had accumulated to a whopping Rs. 5.8 billion, and the bank’s authorities have been instructed to submit a report on this matter. Of this amount, Rs.1.1 billion had been given to 29 persons as overdrafts.

In another irresponsible transaction, the Bank had invested Rs.155.5 million in the shares of the People’s Merchant Bank Ltd and which had incurred a loss of Rs. 141.16 million at the end of 2010.

COPE had observed that the Central Bank lost US $ 15.6 million through its investment in Greek Government Bonds without considering the market conditions of that country.

“The explanation offered by the Central Bank was that, in the overall investment in the Euro-Zone, there was a profit on the investment. However, the fact remains that the investment in Greek Bonds resulted in a loss,” the report says.

The report also highlights the fact that the actual income from the IIFA Film Festival had not been identified. The sale of tickets for the IIFA Cricket match had been given to a private company contrary to the directive of the subject minister. The income from through the sale of these tickets had not been handed over to the Tourism Promotion Bureau.

In another revelation, the Sri Lanka Tea Board had paid Rs. 9,038,930 to a private company for an installation, but the work was still incomplete. It was also observed that some components installed some years ago were now obsolescent. COPE has referred to the Criminal Investigation Department (CID a case involving a Samurdhi Bank manager who had obtained a loan of Rs.1,025,000 in the name of a beneficiary).

With regard to the chronic renal failure issue in the North Central Province, COPE says that there is no proper co-ordination among the relevant authorities. COPE has directed the Water Board to take action to form a steering committee with the participation of all the relevant authorities.

COPE Chairman D.E.W. Gunasekara who presented the report in Parliament said that the financial positions at 32 state institutions were examined.

He said that the complete report covering 235 institutions would be presented to the House before the end of this year.

Central Bank lost US $ 15.6 million through its investment in Greek Government Bonds