Auditor General issue and AKD’s credibility

This is important in respect of the credibility of the ruling National People’s Power (NPP) as well

The fourth name submitted by President Anura Kumara Dissanayake for the post of Auditor General in permanent or acting capacity has also been rejected by the Constitutional Council last week. The nominee, O.R. Rajasinghe, a member of the Audit Division of the Army was proposed by Prime Minister Dr. Harini Amarasuriya had the backing of only four members in the ten-member CC -- namely, Leader of the House Bimal Rathnayake and MPs M. Athambawa and S. Shritharan apart from the Prime Minister.

Leader of Opposition Sajith Premadasa, Samagi Jana Balawegaya (SJB) MP Ajith P. Perera and the three civil society members of the CC had voted against the Army officer taking over the post. 

President Dissanayake had initially submitted the name of H.T.P. Chandana, an audit officer at the Ceylon Petroleum Corporation to the CC to succeed Auditor General W.P.C. Wickramaratne who retired eight months ago. When the CC rejected that name, the next senior-most official at the National Audit Office, Dharmapala Gammanpila, was appointed as the Acting Auditor General and the President sought to extend his term after six months, but the CC did not accept it. Then the name of Senior Deputy Auditor General L.S.P. Jayaratne was submitted to serve as Auditor General in an acting capacity, but her name was also rejected. 

Thus, there has been no Auditor General for the past eight months and no acting Auditor General at the department for the past two weeks, a situation that might lead to disruption of work at the National Audit Office at a time when the country is facing a crisis situation.

At crisis times such as national disasters,  when hectic activities are carried out in rapid pace by the public sector involving huge sums on money, the possibility of corruption  also naturally mounts. Emergencies by nature always demand less supervision and open gates to malpractices. Sri Lanka is currently facing such a tricky situation.

Following  huge floods in the basins of many rivers in the country, and an unprecedented number of landslides throughout the central hills  triggered by Cyclone Ditwah in late November affecting millions of people, the government has announced a massive relief programme meant for those affected. And the President had instructed the officials involved in these relief operations to pay flood victims the initial payments for cleaning houses and purchasing household utensils  before December 31. This urgency, though justifiable and commendable, makes it difficult for the higher authorities to monitor transactions at the grassroot levels. 

The government has created two funds -- Government Disaster Relief Fund and the Rebuilding Sri Lanka Fund to handle fund raising activities and relief and reconstruction activities in the aftermath of  Cyclone Ditwah. Concerns are mounting over the legality and transparency of these funds as they have been created outside the government’s Consolidated Fund framework. Financial experts and Opposition members have already raised questions about whether these funds conform to the provisions of the Public Financial Management Act.

Committee on Public Finance Chairman MP Dr. Harsha de Silva, citing the controversial Helping Hambantota Fund that was created in the aftermath of the 2004 tsunami disaster, recently pointed out that the Rebuilding Sri Lanka Fund must be approved by Parliament as a statutory fund. 

Although Treasury Deputy Secretary A.K. Seneviratne has told media that these funds remained under Treasury oversight, as they were created as sub-funds of the Treasury,  and until the funds are formally declared through a gazette, the accounts will be managed by the Treasury and remain under its supervision. What Dr. de Silva had pointed out is acceptable as Parliament is the ultimate authority in public financing according to the Constitution. This is more so at a time when the post of permanent Auditor General is vacant.

This is important in respect of the credibility of the ruling National People’s Power (NPP) as well. Despite the Opposition parties having made a huge fuss about the doctorate title of former speaker Asoka Ranwala,  and Minister Sunil Handunnetti as well as some other government members making regular slips of the tongue, the reputation of the NPP, especially its core party, the Janatha Vimukthi Peramuna (JVP) as an untainted political party is still intact. However, the Auditor general issue might tarnish its name irreparably, if acts are not taken swiftly in this regard.

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