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Whether it is buying gunny bags or constructing buildings, public entities have to follow strict procedures to ensure that taxpayers’ money is not wasted. But according to the recently released 2021 audit report, recklessness and mismanagement led to losses of nearly Rs 20 crore.
The National Pharmaceutical Company purchasing medical raw materials that could not be used, the University of Peradeniya making mathematical errors in its elevator installation contract, Litro Gas Lanka cancelling orders and not getting refunds are just a few examples of the losses incurred.
The audit report covers procurement and projects for 160 entities in 2021, some of which are long-standing and date back to 2017.
However, the Rs 200 million does not include losses due to irregularities in the bidding process itself, which were not precisely calculated in the audit but could run into hundreds of millions of rupees. In one case, a vaccine was purchased at 156 times the estimated price because only one company submitted a bid and the National Pharmaceutical Corporation did not call for the next round of bids. In another case, the Gem and Jewellery Authority overpaid Rs 36 million by renting a building from the highest bidder instead of the lowest.
Many entities violated due process and blatantly disregarded accountability.
Tender requirements were changed midway, fewer people than required were appointed to the Technical Evaluation Committee, payments were made in advance, product testing was not done and, in fact, in some cases, the tendering process was not followed at all. For example, Lakdiva Engineering Company (Pvt) Ltd did not float a national tender for the procurement of spare parts for buses and garages worth Rs 571 million.
In addition, the law requires public agencies to prepare action plans, corporate plans, progress reports and procurement plans to ensure progress and prevent corruption. However, the audit found that 21 agencies did not have a procurement plan, 19 agencies did not have an action plan, and another 12 agencies did not even have a budget for the audit year.
Sunday Times
(Except for the headline, this article was originally published by sundaytimes.lk and has not been edited by SLM staff)
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