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Message: <blockquote data-quote="eranga_rama" data-source="post: 10994883" data-attributes="member: 85571"><a href="http://www.dailymirror.lk/news/13730-huge-losses-at-state-institutionscope.html" target="_blank">Huge losses at state institutions:COPE    </a>The Parliamentary Committee on Public Enterprises (COPE) has revealed  that the government has lost a staggering Rs.10 billion due to the  mismanagement, inefficiency and corruption at 24 state institutions from  2010 up to now, the Daily Mirror learns. This is in addition to the  annual losses incurred by some of these institutions.COPE has identified the budget airline ‘Mihin Lanka’ as an institution  running at a significant loss right from its inception. The company has  incurred a loss of Rs.3.3 billion in 2007/2008 and this has risen to  Rs.4.6 billion the following year with the accumulated losses now  amounting to Rs.5.7 billion.Apart from the massive losses it has incurred so far, Mihin Lanka now  faces a liability Rs.2.4 billion. COPE observes that figures provided by  the company with regard to its financial position were incompatible  with the findings of the Auditor General. The company has also failed to  provide sufficient evidence in this respect.The company has failed to pay interest on the Rs.500 million loan  obtained from the Airport Aviation Services (Pvt.) Ltd. And this had led  to the Treasury having undertaken to settle the loan, thus adding  another cost to the state coffers.The National Gem and Jewellery Authority, State Mortgage and Investment  Bank, Sri Lanka Rupavahini Corporation, Sri Lanka Telecom have also been  mentioned as the institutions with serious operational losses over the  past years. The COPE said it was alarming to see the accumulation of  losses at a rate as high as 90 per cent.The Gem and Jewellery Authority had lost Rs.7 million due to the  violation of a bond signed with the American Gem Traders Association.  The revenue had decreased over the years at the institution whereas the  expenditure had increased.At the State Mortgage Bank, a large amount of loans remained  outstanding. The profit level had dropped from Rs.312 million in 2005 to  Rs.21 million in 2008.The University Grants Commission had paid Rs.306 million as language  proficiency allowance to employees. COPE cited this as a major loss  during the year under review.COPE said at Sri Lanka Rupavahini Corporation, a post of the Chief  Executive Officer has been created though there is no provision for such  a post in the Rupavahini Act. The Corporation had not taken action in  2010 to recover Rs.42 million payable by various political parties for  the use of its airtime during election times although COPE had given  directions in this regard at meetings held previously while Rs.10  million due from Mihin Lanka too had not been recovered. Rs.2.5 million  paid as advances to some employees had been written off.The net profit of the Corporation had dropped from Rs.137 million in 2006 to Rs.4.7 million in 2009.At Sri Lanka Telecom, the under-payment of telecommunication levy for  the period between 2003 to December 2009, had amounted to a staggering  Rs.6 billion. The total loss for the year 2008/2009 was Rs.9.3 billion  at Sri Lankan Airlines. A net loss of Rs.352 million had been reported  under the Fuel Risk Management Programme.Sri Jayewardenepura University had spent Rs.3 million on a project  without getting the ownership of the land verified. The university had  maintained a fund called ‘Vice Chancellors Fund’ disregarding legal  provisions in this respect. The university had failed to recover Rs.67  million from lecturers who violated the bonds signed with the  authorities when going abroad for further studies.  Rs.17 million has to  be recovered from Moratuwa University lecturers while Rs.40 million has  to be recovered from lecturers attached to the Open University for  violating bond agreements. The Buddhist and Pali University, Hector  Kobbekaduwa Agrarian Research and Training Institute, Lanka Sathosa Ltd,  Ceylon Shipping Corporation, Cey Nor Foundation are some of the other  institutions where major financial misappropriations have been noted.  COPE has meanwhile identified numerous other disputed transactions at  these institutions, and the recovery of these loans remains a question.source<a href="http://www.dailymirror.lk/news/13730-huge-losses-at-state-institutionscope.html" target="_blank">http://www.dailymirror.lk/news/13730-huge-losses-at-state-institutionscope.html</a>Need your comments</blockquote>

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