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“After the 17th Amendment to the Constitution was repealed, there is no independent procedure for the appointment of the Auditor General.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)