Auditor General reveals Rs.208 mn loss at SLIC

24 October 2012 08:59 pm - 13     - {{hitsCtrl.values.hits}}

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In a shocking revelation made in parliament, Sri Lanka Insurance Corporation is reported to have lost Rs.208 million by entering into a re-insurance agreement with a bogus company.

This has been highlighted in the Auditor General’s report, which was examined by the parliamentary Committee on Public Enterprises (COPE) on Tuesday.
UNP MP Lakshman Kiriella raised this matter in Parliament yesterday quoting the AG’s report. He said this re-insurance agreement had been entered into with this bogus company called ‘Trans Asia Management Advisors FZC’ with regard to Sri Lanka Petroleum Corporation by the Sri Lanka Insurance Corporation.

Quoting the report, Mr. Kiriella, who is a COPE member, said a premium of Rs.92 million had been paid to this company for 2009/2010 and another Rs.116 million for 2010/2011.

COPE observes that this transaction had taken place in a situation where the name of the suspicious company had been made public on the internet in 2006.

It has been remarked in the report that this kind of transaction reflects badly on the management of the Company.

Mr. Kiriella said COPE should pursue this matter and bring those responsible to book.

Senior Minister Sarath Amunugama in response said the Auditor General’s observations should not always be accepted as divine findings.

“COPE has to study those findings and come to conclusions instead of accepting them as the whole truth,” he said.

However, Mr. Kiriella said that the Auditor General’s hands are legally tightened today, and therefore, he was unable to act independently.

“After the 17th Amendment to the Constitution was repealed, there is no independent procedure for the appointment of the Auditor General. According to the 18th Amendment, it is always someone loyal to the executive is appointed to the post,” he said. (Kelum Bandara and Yohan Perera)
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  Comments - 13

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  • Damien Perera Thursday, 25 October 2012 03:43 AM

    Any one has any idea how many billions (or trillions) have been lost in Government ventures in this manner during the last few years?

    Danushka Desilva Thursday, 25 October 2012 04:21 AM

    Why the need of creating a company to steal money? why dont they just take the whole thing in the open without bothering so much! Asiyawe Ashcharya

    Fusion Thursday, 25 October 2012 09:55 AM

    "Miracle of Asia"? More like "Debacle of Asia"!

    Paul Albert Thursday, 25 October 2012 10:12 AM

    Special hell is there for all the politicians involved

    Gamini Thursday, 25 October 2012 04:37 AM

    Before pronouncing someone guilty and believing in everything the opposition says we should ask for an independent inquiry. Remember you are innocent before proven guilty.

    Mason Thursday, 25 October 2012 04:47 AM

    CPC has been importing crude oil from black listed companies. Now to find their transactions have been insured with a bogus company. We buy bonds from a failing country. EPF/ETF/NSB funds are invested in loss making stocks.
    Cost of living is sky rocketing, with increase in prices all around. The ultimate one to shoulder the burden is the Common Man.
    Will there never be an end to this ?????????

    RUKMAL Thursday, 25 October 2012 12:24 AM

    "Naduth Hamuruwange,Baduth Hamuruwange"

    Black Mamba Thursday, 25 October 2012 12:45 AM

    No heads will roll except some scapegoats for the benefit of public consumption!

    Imran Hussein Thursday, 25 October 2012 08:33 AM

    What more to say.

    siribiris Thursday, 25 October 2012 05:09 PM

    Suba anagathyak

    willows Thursday, 25 October 2012 03:25 AM

    we knew this and more to come

    Rom Thursday, 25 October 2012 09:02 AM

    I have a doubt about the negetives given to these commets, They look as if they have been manupilated!!!!!!!!

    Janaki Kalansuriya Thursday, 25 October 2012 03:31 AM

    Is anyone surprised that a 'Bogus Company" had been used to enter into a contract? This is now the story of our lives in Sri Lanka. Get ready for more borrowings, taxpayers.


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