By: Staff Writer
December 15, Colombo (LNW): As the Sri Lanka Export Credit Insurance Corporation (SLECIC) marks its 46th anniversary, it faces significant challenges under its new management, tasked with addressing years of irregularities and corruption. The institution, once a key player in supporting the country’s export sector, has been marred by financial mismanagement and unethical practices over the past 12 years.
A forensic audit, initiated by the Committee on Public Enterprises (COPE) of the previous parliament, is currently underway to probe financial misappropriations at SLECIC.
Preliminary findings have led to the suspension of the General Manager (GM), who has been accused of various irregularities, including the questionable payment of a large insurance claim exceeding Rs. 400 million to a single exporter, violating standard procedures. According to parliamentary sources, the audit has uncovered multiple instances of financial misconduct.
SLECIC’s role is to assist exporters by covering their risks and financing operations through pre- and post-shipment guarantees.
However, the recent investigation has exposed significant internal issues, including allegations of irregular recruitment, lack of proper underwriting, unfair treatment of staff, and a steady decline in the corporation’s performance.
In response to these findings, COPE has directed the Ministry of Finance to appoint an independent committee to examine the financial irregularities and submit a comprehensive report.
Further investigations have unearthed additional cases of corruption, including an employee in the marketing division who unauthorizedly approved the shipment of goods to a different country than stipulated in the insurance policy.
This led to a default by the buyer and a Rs. 30 million claim by the exporter. The case revealed potential collusion between the exporter and SLECIC staff. Despite efforts to discipline the employee involved, a change in government leadership allowed the individual to return to his position without an inquiry, after being convinced by corrupt officials.
Moreover, another alarming case involved the Assistant General Manager, who, despite a history of poor integrity, was promoted to Deputy General Manager (DGM).
Upon his promotion, he reportedly destroyed crucial documents related to the forensic audit, only to be caught by the acting GM appointed by the Ministry of Finance.
This incident, along with the dismissal of the forensic audit report, suggests that corruption continues to run deep within the organization.
Whistleblowers claim that these officials are also granting unauthorized discounts to large corporates without the knowledge of the board, further damaging the corporation’s integrity.
In addition to these issues, concerns have been raised about the corporation’s failure to adequately promote the Small and Medium Enterprises (SMEs) sector.
Instead of supporting these vital businesses, some SLECIC officials have been accused of prioritizing large corporations and pocketing commissions by offering unauthorized discounts, which ultimately lead to inflated claims.
The ongoing investigations and the apparent cover-up of corrupt activities have raised alarms. The corporation, established in 1978 to promote Sri Lanka’s exports, has been derelict in its duties, with the new government’s intervention appearing ineffective in addressing the systemic corruption.
Despite the change in leadership and the initiation of inquiries, many corrupt practices persist, undermining the corporation’s ability to serve the national interest.
Staff members and concerned individuals have called for an immediate audit and a thorough investigation into the current leadership’s actions, urging the government to take decisive steps to restore the integrity of the SLECIC and ensure that it can fulfill its original mission of supporting Sri Lanka’s export sector.
