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2023-05-29

News Categories : Committee News 

Many irregularities including administrative concerns of the National Gems and Jewelry Authority revealed in COPE

  • COPE emphasize that Gems and jewelry Authority, which is the sole authority to regulate the gem industry, should not engage in gem mining projects directly with third parties.
  • Given the background of continuous accusations against the authority, instructions to carry out a formal investigation into all the irregularities and activities that have been reported in the last 10 years.
  • Orders to the authority to prepare a highly transparent system in granting licenses for gem mining.
  • An investigation into the release of an officer suspended for misconduct pending a preliminary investigation at the request of the former chairman.
  • Displeasure over the gem cluster which was valued at 10 million dollars being appraised at nearly 10,000 dollars.
  • It is revealed that although an agreement was signed with a private institution to establish an accounting software system at a cost of 19 million rupees, the work has not yet been completed.
  • It is revealed that although an agreement was signed with a private institution to establish an accounting software system at a cost of 19 million rupees, the work has not yet been completed.
  • A report called on the loss of nearly 16 million rupees by taking shop rooms from the World Trade Center.
  • A loss of 36 million rupees due to higher bidding while renting a building for the Authority.

 

The National Gems and jewelry Authority was called before the Committee on Public Enterprises (COPE) which met on 24.05.2023 under the chairmanship of the Member of Parliament Hon. (Prof.) Ranjith Bandara, to examine the reports of the Auditor General for the years 2020 and 2021 and its current performance.

The following matters were taken into consideration at the Committee meeting.

 

It was emphasized that the Authority, which is the only authority to regulate the Gem industry in this country, should stay away from business activities.

The Auditor General pointed out the facts regarding the Authority engaging in direct monitoring projects with third parties. According to the Gems and jewelry Act, the Committee emphasized that since it is the only Authority to regulate the gem industry in Sri Lanka, such Authority should not engage in gem mining projects directly with third parties.

 

Recommendations to develop a system of high transparency in the granting of licenses

The Members of the Committee pointed out many irregularities that have been reported during the granting of licenses for gem mines. It was pointed out that due to some corrupt officials giving mines to their cronies, the government has also lost the proper tax revenue. The Chairman of COPE recommended to the Secretary of the Ministry to prepare a system with high transparency in granting licenses by the Authority.

 

Given the background of continuous accusations against the authority, instructions to carry out a formal investigation into all the irregularities and activities that have been reported in the last 10 years.

Given the background of continuous accusations regarding the Gems and jewelry Authority, the COPE Chair informed that a formal investigation should be conducted regarding the reported irregularities pertaining to the agreements entered into by the Authority in the last 10 years and a proper mechanism should be set up to take the Authority on the right path. The Chair of the Committee advised that the assistance of a Senior Retired Audit Officer should also be sought if necessary.

 

Displeasure over the gem cluster which was valued at 10 million dollars being appraised at nearly 10,000 dollars.

There was also a discussion about the value of the gem cluster discovered in Sri Lanka in 2021 being valued at 10 million dollars, after which it was valued at only nearly 10,000 dollars. The officials said that in the present context it has an artefact value. Thus, the Auditor General and the Committee pointed out that there is a problem with the professional competence of the officials concerned.

 

Absence of a permanent Director General

The absence of a permanent director general for the Authority was made note. The secretary said that the current director general is also an officer in the administrative service. Thus, the Committee advised to take immediate steps to appoint a permanent director general. The Chair of the Committee said that if the existing salary scales are an obstacle to that, COPE will make an intervention to take measures through the Hon. President and the Secretary to the Ministry of Finance.

 

A report is called for regarding the process of renting a building for the Authority

COPE looked onto the fact that a contract was entered into for a period from 2021 to 2023 under a monthly rental basis of 4.5 million rupees for a building that had been offered at a higher price for the Authority. It was also revealed that this has been done due to the unsafe condition caused by the damage to the building of the Authority due to the construction work done near the building which was run by a private company. Accordingly, the Auditor General pointed out that due to not selecting the company that submitted the lowest bid, an additional payment of 36 million rupees will have to be made for the two years rental. Furthermore, it was revealed that a case is pending against the private company that caused damage to the building of the Authority and that an amount of 152 million rupees should be recovered from the said company.  Since a confusing situation is being observed in this regard, the COPE Chair informed the Secretary of the Ministry to conduct a formal investigation and give a report within 2 weeks.

 

When acquiring stalls from the World Trade Center under rental basis, the approximated 16-million-rupee deposit yet to be received

According to an agreement between a private company and the authority, 35 stalls were obtained from the World Trade Center for a deposited amount of nearly 16 million rupees, but despite the agreement ending in 2021, it was not possible to release the deposit due to one stall not being handed over. It was also revealed that there is a lawsuit related to this. The officials failed to give clear answers in this regard and thus the Chair instructed the Secretary to the Ministry to immediately investigate and give a report on the matter.

 

Despite the agreement to establish an accounting software system at a cost of 19 million rupees, the work has not yet been completed

COPE paid attention to the fact that although a contract was made with a private institution to establish an accounting software system for the use of the institution at a cost of 19 million rupees, the work has not yet been completed. The Committee expressed its strong displeasure that the company had been paid nearly 10 million rupees from the year 2016 to 2021 but had not yet completed these tasks and informed the secretary to investigate and report on this immediately.

 

Reinstatement of the suspended officer without formal investigation

It was also revealed that the Director (Land Mining) was suspended for his misconduct and dismissed without a formal investigation by the Internal Auditor while conducting a preliminary investigation. It was also revealed that the internal auditor made this decision following an appeal made by the accused officer to the former chairman. COPE instructed the secretary to look into this and take a decision without any influence.

 

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