The Committee on Public Accounts (COPA) has raised serious concerns over alleged procurement irregularities, misuse of public assets and financial losses at the Southern Provincial Council (SPC), including the auctioning of an asphalt production machine without properly accounting for stocks of bitumen and diesel.
The issues came under scrutiny recently when COPA, chaired by MP Kabir Hashim, reviewed the Auditor General’s reports on the Southern Provincial Council and its current performance.
The committee examined the Auditor General’s Triennial Report for 2021–2023, reports for 2024 and 2025, and the implementation of recommendations made at a previous COPA meeting in March 2023.
Particular attention was drawn to the 2021 auction of an asphalt production machine belonging to the Southern Provincial Road Development Authority.
The machine, transferred to the Authority in 2013, had remained idle after 2018 following the decline in large-scale road carpeting projects. Officials said maintenance and security costs associated with keeping the machine idle had led to the decision to auction it.
However, COPA questioned the failure to include 21,782 litres of residual bitumen and the remaining diesel stock in determining the auction value, resulting in a financial loss to the State.
Legal action has been initiated to recover the relevant amount from the buyer, while complaints have also been lodged with the police.
Although preliminary investigations and disciplinary inquiries had been conducted and two officials had faced disciplinary action, but the loss had not been recovered from those responsible.
Officials told COPA that a fresh comprehensive investigation committee had subsequently been appointed, taking into consideration explanations submitted by the officials concerned, to determine who was actually responsible for the loss.
COPA also questioned procurement practices at the Southern Provincial Council, including the awarding of several contracts to a single supplier for plants.
The Committee was told that some supplies had not been completed despite advance payments being made, prompting authorities to take steps to acquire a parcel of land to recover outstanding amounts.
The purchase of 86 scanners at a cost of around Rs. 27 million also came under scrutiny.
The Committee questioned why the scanners had been purchased without a proper needs assessment or feasibility study and why most of them were subsequently not used for their intended purposes.
Members also raised concerns over the suspension of a digitisation programme midway through its implementation due to problems with the related software project.
COPA further questioned whether relevant circulars and financial regulations had been properly followed in granting fuel and housing allowances to officials of public institutions.
The Committee stressed that public funds and State property could not be managed without proper accountability and transparency.
It called for formal investigations into the irregularities identified, the determination of responsibility and appropriate legal and disciplinary action against those found responsible.
State Ministers Nalin Hewage, retired Major General Aruna Jayasekara and Aravinda Senarath, and MPs Sagarika Athauda, T.K. Jayasundara, Lal Premanath, Susantha Kumara Navaratne, Ruwanthilaka Jayakody, Manjula Suraweera Arachchi, Ajantha Gammaddege and Sunil Rathnasiri attended the meeting.