By: Staff Writer
October 20, Colombo (LNW): Over 200 audit reports presented by the Auditor General in Sri Lanka, highlighting instances of corruption, financial misappropriation, and irregularities in state institutions, have been discarded without any action taken against the involved perpetrators.
According to sources within the department, these reports have effectively been sent to the recycle bin, leaving the wrongdoings unaddressed and the financial losses to the state unrecovered.
The reports included findings on significant financial irregularities in recent high-profile transactions, particularly in the importation of essential commodities, resulting in a loss of more than Rs. 40 billion to the government.
Despite these substantial losses to the state coffers, no steps have been taken to punish the officials responsible or to recover the misappropriated funds, as noted by several senior officials of the Auditor General’s Department.
One of the main reasons for this inaction, according to a high-ranking official and member of the Sri Lanka Audit Service Association (SLASA), is the department’s lack of legal authority to enforce its recommendations.
The official, speaking on condition of anonymity, emphasized that without the power to initiate legal proceedings, the Audit Service’s efforts to identify and report financial irregularities remain ineffective. The absence of enforcement capabilities means that their hard work often goes unrecognized, with their findings relegated to the backburner.
While the audit reports are intended to be reviewed by Parliamentary committees like the Committee on Public Enterprises (COPE) and the Committee on Public Accounts (COPA), there has been no substantial follow-up action to address the findings.
The implementation of these committees’ recommendations falls under the purview of Ministry Secretaries, who serve as the Chief Accounting Officers. However, due to their need to align with the interests of political authorities, these officers often fail to take concrete action on audit recommendations, according to department insiders.
The situation has deteriorated further since the disbanding of the National Audit Service Commission, which was established under the 19th Amendment to the Constitution and functioned from 2016 to 2020.
Although the commission did not have strong constitutional safeguards, it did possess limited authority to take disciplinary action against corrupt officials. Its dissolution has left a significant gap in the oversight and accountability framework for state financial practices.
In light of these challenges, the Sri Lanka Audit Service Association has called for urgent legal reforms to empower the Auditor General’s Department and restore the functions of the National Audit Service Commission.
They suggest either amending the existing outdated laws or introducing a new audit bill in Parliament to grant these institutions the necessary powers to combat economic crimes effectively.
The absence of an independent and empowered auditing body means that significant financial mismanagement within state institutions goes unpunished, undermining public trust in the government’s ability to maintain financial integrity.
Addressing these gaps in the legislative framework is seen as crucial to holding corrupt officials accountable and recovering state assets lost to misappropriation and fraud.
