Dubious appointment of unqualified officer as NLB General Manager raises eyebrows

Additional Secretary Ministry of Finance D.H.S. Pulleperuma’s letter has ruffled the feathers of NLB officials as the former has requested to hold an inquiry on a procurement fraud

Meanwhile, CIABOC too has come under criticism for sending the entire complaint they received sans the sender’s name and signature

According to the NLB scheme of recruitment, the General Manager (GM) should be a Class I Officer of the Sri Lanka Administrative Service and should possess three years of service experience in that Grade

 the officer who needs to go to another department should give the Ministry a letter of request with the duly filled relevant form which will then be sent to the Appointment Authority

It has now come to light how Jayasekera was released from the Ministry of Education on a secondment basis to the NLB without following proper procedures

Speculation is rife why the Additional Secretary Ministry of Finance has ignored Bribery Commission’s directive to conduct an inquiry into an appointment made during the former regime to the National Lotteries Board.

Following a complaint received by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) on how an unqualified person was appointed as the General Manager (GM) of the National Lotteries Board (NLB) in 2022, at the behest of a powerful Secretary at the Presidential Secretariat during President RanilWickremasinghe’s tenure, CIABOC requested the Finance Ministry to conduct an inquiry on the matter which has gone unanswered.

NLB is a state owned enterprise under the purview of the Ministry of Finance, Economic Stabilization and National Policies. Hence, Secretary CIABOC K.G. Lenarolle has made a written request on January 8, 2025, to the Secretary Ministry of Finance to send a report on how this appointment was made, by February 24, 2025. 

After the new NLB Management took office in November 2024, this dubious posting was reported to the CIABOC by letter dated November 27, 2024, seeking action against the controversial appointment. Secretary CIABOC, by letter (Ref: AC/3503/2024) dated January 8, 2025, to the Secretary Ministry of Finance requested an inquiry into this issue. The letter further states,  ‘Requesting an inquiry on the appointment of an unqualified officer as the GM, NLB.

‘In reference to the above subject, the Bribery Commission is in receipt of a complaint dated November 27, 2024. The Commission decided to obtain a report from you by February 24, 2025 for further action. A copy of the complaint is attached herewith’.

Although the Finance Ministry was directed to send a report regarding how this appointment was made, surprisingly, the Additional Secretary Ministry of Finance D.H.S. Pulleperuma by letter dated March 4, 2025, (Ref: MF1/ 01/03/TEM) to the General Manager of the NLB has requested to hold an inquiry on the said former GM, J.M.H.N.G. Jayasekera over a procurement fraud the latter was alleged to have been involved when an ERP system was to be introduced to the Lotteries Board. 

Pulleperuma’s letter to the NLB states, ‘Requesting an inquiry on the appointment of an unqualified officer as the GM, NLB (AC/3503/2024)

‘This refers to the above subject letter I am in receipt from the Secretary CIABOC (Ref: AC/350/2024) dated January 8, 2025 which is annexed herewith. 

‘I was directed by the CIABOC to hold an investigation to find out whether the former GM Ms. J.M.H.N.G. Jayasekera was involved in a financial fraud during the procurement process followed to introduce an ERP system to NLB.

‘Hence, appoint a three member inquiring committee, headed by a senior official (Deputy GM) as the Committee Chairman, together with another senior officer from NLB and Chief Accountant, Finance Ministry E.M.U.S. Ekanayake and send the report to me before April 15, 2025. D.H.S. Pulleperuma Additional Secretary for the Secretary’. 

Pulleperuma’s letter has ruffled the feathers of NLB officials as the former has requested to hold an inquiry on a procurement fraud although the subject matter of the letter is completely different to what she has requested in the content of the letter.

Confusing directions 

 “We are puzzled about what we have been directed to do by Pulleperuma. As per the subject matter, the CIABOC has requested to hold an inquiry on the appointment of the former GM, but the content of the Finance Ministry letter has directed NLB to hold an inquiry related to the ERP system,” NLB sources said on condition of anonymity.

Meanwhile, CIABOC too has come under criticism for sending the entire complaint they received sans the sender’s name and signature. Although the CIABOC has an obligation not to disclose all the information they receive in a complaint to a third party and if a need arises to send only a summery, Secretary of CIABOC Lenarolle has forwarded the entire complaint the NLB has sent to Director General, CIABOC to the Finance Ministry raising concerns amongst its own employees.

“How can anyone trust the CIABOC in future if they send the full complaint to a third party? True the line ministry should know what the allegations are, but why couldn’t the CIABOC send a summary of the complaint to the Finance Ministry. By this course of action, the CIABOC has violated the confidentiality they should maintain when they receive a complaint,” a senior CIABOC officer said on strict condition of anonymity.

However, when this newspaper sent an email to Director General CIABOC, RangaDissanayake on March 19, 2025, to find out whether there are provisions in the CIABOC Act which allows them to share the full complaint they receive with or whether they have an obligation not to disclose the content of a complaint to a third party, the Commission in their response dated March 20, stated that the Commission has taken a stern decision that they will not disclose the full contents of any complaint they receive with a third party in future and that complainants should trust the Commission that their complaints would be treated as ‘strictly confidential’ in future.

This newspaper further requested CIABOC to inform as to what action they would take against the Secretary Ministry of Finance for the failure to send the report by February 24, to the Commission, the Bribery Commission has stated that they will notify the Additional Secretary, Finance Ministry D.H.S. Pulleperuma to inform why the CIABOC should not take any action against her as per Section 127 of the Act, as she has called for a report on a matter the Commission has not demanded.    

When contacted Pulleperuma to inquire why she requested an inquiry on a different matter, ignoring the request made by the CIABOC, the Additional Secretary said that there are two issues to be inquired into.

“The letter you are referring to is about the inquiry I requested on the procurement scandal on the ERP system. I have already in receipt of the inquiry report on the appointment scam,” she said.

Although she stated that the letter she has sent to NLB on March 4, 2025, was on the procurement scandal, but not on the appointment scam, when this paper informed her that we are in possession of the questionable letter in which she has made reference to the CIABOC letter on the appointment scam as the subject matter, but has requested for a different inquiry, Pulleperuma said that she is in parliament and wanted this reporter to meet her at her office at the Ministry of Finance.

Calls taken to contact her later to get an appointment to meet her, went unanswered.

Be that as it may, it has now come to light how Jayasekera was released from the Ministry of Education on a secondment basis to the NLB without following proper procedures. Jayasekera, who was a Class II Sri Lanka Administrative Officer (SLAS), was a Director at the Ministry of Education at the time she was released to the NLB on a secondment basis for an unidentified position which has raised eyebrows of Finance Ministry officials. 

According to the NLB scheme of recruitment, the General Manager (GM) should be a Class I Officer of the Sri Lanka Administrative Service and should possess three years of service experience in that Grade. But Jayasekera was a Class II SLAS officer.  

According to Finance Ministry officials, as per the Procedural Rules of the Public Service Commission (PSC), when releasing a public officer on a secondment basis, there is a procedure that must be followed.

“We were surprised how the PSC, Ministry of Public Administration, Home Affairs, Provincial Councils and Local Government approved this release request letter that was inaccurate. Even the Ministry of Finance, Economic Stabilization and National Policies and the Ministry of Education too have ignored their responsibilities. This particular officer had a close connection with a powerful Secretary at the Presidential Secretariat and we believe that was why the PSC. Ministry of Public Administration, Ministry of Education and the Ministry of Finance deliberately failed to discharge their respective duties when such a release is made,” the sources added. 

As per Chapter XII, Sections 166 of the Procedural Rules of the PSC, the application to release for an appointment to another post in the public sector shall be made to the Appointing Authority through the Head of the Department of the Institution in accordance with the Appendix 12 as the case may be, and; 

Where it is made on the needs of the government or public policy, the Secretary to the Ministry to which the officer is proposed to be appointed shall make the request to the Appointing Authority in the format of Appendix 13 along with a letter of consent from the officer.

Appendix 12, has to be filled by the requester and as per Section 2.4 of this, the officer should indicate the post she is expected to serve after the release which is compulsory and; Appendix 13 has to be filled by the Secretary of the Ministry/ Head of Institution under whom the officer is proposed to be appointed. Also there again, in the Appendix 13 form, it has to indicate to which post she will be appointed after the release which has to be compulsory. However, according to copies of documents this newspaper is in possession of, none of the said government institutions have mentioned to which post she would be appointed; which is a clear violation of government rules.

“If the officer concern has duly filled and handed over the Appendix 12 of the PSC procedural rules, to the Appointing Authority through the Head of the Department at the Ministry of Education where she was working and seeking to release on a secondment basis, why didn’t the Secretary PSC in his approval letter (Ref: PSC/APP/05/02/07/2021 dated July 28, 2022) for the release, to the Ministry of Public Administration not mention the post to which they have given their approval.

Aiding a powerful official

Director Ministry of Public Administration for the Ministry Secretary D.K.R.A. Dharmasena in his letter dated July 28, 2022, to Jayasekera through the Ministry of Education too has not mentioned the post to which Ms. Jayasekera has been released, but has stated as ‘Releasing to the National Lotteries Board as a secondment basis’. Finance Ministry sources further said that the reason why the PSC, Ministry of Public Administration, Ministry of Education and the Ministry of Finance deliberately ignored to accept correctly filled two forms – Appendix 12 and 13, is a clear indication that they were aiding the said powerful Secretary to get his friend a powerful position at the NLB without the necessary qualifications.

“There are many instances we can bring up where the PSC and other Ministries have refused to accept any release request if the proper details are not filled as per Chapter XII, Sections 166 of the Procedural Rules of the PSC,” sources said.

The former Additional Secretary to the Ministry of Finance H.G. Sumanasinghe on behalf of the Ministry Secretary, released Jayasekera on a secondment basis to the NLB by letter dated August 2, 2022.

The letter states, ‘This refers to the letters I am in receipt from Secretary PSC (Ref. No: PSC/ APP/ 05/02/2021 dated July 28, 2022) and Secretary Ministry of Public Administration (Ref. No:  75/10/5430 dated July 28, 2022). You have been released for two years as a secondment basis to the NLB which has been approved by the PSC’.

Although Jayasekera was released to the NLB, but not to a specific position, NLB employees claim that it was (the then NLB Chairman LalithPerera) that had made her the GM, NLB for two years through letter dated August 2, 2022. 

“Perera is a lawyer. Knowing what the qualifications a GM should possess to hold this responsible position, what made him to appoint her to the post of the GM unless he got instructions from the ‘top’,” the sources said. 

After her contract period lapsed, Dr. ChameeraYapaAbeywardena, (who succeeded LalithPerera as Chairman of NLB), recommended a two year extension to Jayasekera not only from the line Ministry- the Finance Ministry, but also from Secretary to the President SamanEkanayake by letter dated May 27, 2024 (Ref. No: NLB/ ADM/10/09/2024/03).

A Finance Ministry source said, “There was no necessity for Dr. Abeywardena to make a request from SamanEkanayake to extend the GM’s tenure by two years as the latter had nothing to do with NLB appointments”. After this, Dr. Abeywardena, by letter dated May 30, 2024, had made the request to the Appointing Authority- Secretary Ministry of Finance to extend the GM’s post.   

Meanwhile, this newspaper contacted Senior Assistant Secretary of the Public Service Commission SusilRajakruna to find out what the general practice is when an Administrative Officer is transferred from one Ministry to another State Owned Enterprise. Rajakaruna said that the officer concerned should hand over a request letter with the form filled by her, as per the Procedural Rules of the PSC. This has to be forwarded to the Head of the Department. “It is then sent to the Ministry of Public Administration who will forward the request letter together with the form to the PSC. If the other party sends a request to us in writing that they are willing to take this officer on a secondment basis, we will give our approvals for the transfer,” said Rajkaruna.

When asked whether the required forms have to be duly filled by both the applicant and the Secretary of the Ministry under whom the officer is proposed to be appointed, Rajakaruna said that all completed documents have to be sent for approval.

This newspaper then spoke to M.S.K. Nisar Senior Assistant Secretary at the Ministry of Education to know what their general procedure is when they transfer an officer to another ministry on secondment basis.

According Nisar, the officer who needs to go to another department should give the Ministry a letter of request with the duly filled relevant form which will then be sent to the Appointment Authority. “If it is an Administrative Officer the request is sent to the Ministry of Public Administration. We are not concerned to which post the officer will be released, but as per the PSC Procedural Rules, the necessary forms have to be duly filled if not the process for the release request will be hampered,” she said.

Meanwhile, when contacted, Secretary Ministry of Public Administration S. AlokaBandara to find out the procedure any SLAS officer must follow when requesting a release on a secondment basis, the Ministry Secretary said that the PSC Procedural Rules have to be strictly followed.

Referring to Jayasekera’s appointment, Bandara said that in the event a request is received with a half-filled form, such a request will be rejected as per the Procedural Rules.

“It is compulsory for the applicant to send the duly filled form together with the request letter and the Head of the Department’s consent,” Bandara said.

“I am sorry I cannot remember these appointments now”- former Additional Secretary

When contacted, former Additional Secretary H.G. Sumanasinghe to find out why he issued a letter to the NLB releasing Jayasekera to an unnamed position which is a violation of the Procedural Rules of the PSC, and whether he had to do it due to the pressure mounted on him from the Presidential Secretariat, Sumanasinghe said that he is no more in service now and is on retirement and cannot remember issuing such a letter. “I am sorry I cannot remember these appointments now. I am now on retirement,” he said.

“I cannot make any comments”- Former NLB Chairman Lalith Perera

When contacted, former NLB Chairman LalithPerera as to why he appointed Jayasekera to the post of General Manager despite the Finance Ministry having released her, but not recommended her to either to the post of GM or any other post, Perera said that he cannot make any comment although he accepted that he made Jayasekera the GM at the NLB. “I cannot make any comments on this unless a proper legal authority requests me to give a statement,” Perera said.

“I was kept in the dark about her qualifications until the matter was raised”- Former NLB Chairman Dr. ChameeraYapa Abeywardena

When Dr. ChameeraYapaAbeywardena was contacted to find out why he requested a two year extension to Jayasekera- knowing that she is not qualified to hold the post- Dr. Abeywardena said that he didn’t know that she was not qualified, but had done so since there was a request. “I was kept in the dark about her qualifications until the matter was raised. Neither the National Audit Office nor the Internal Audit took up this issue during my tenure. The proposal to request for an extension came up at the Board level and since this was my first appointment as a Chairman, I was misled. There was no reason for me to check her qualifications unless it was brought to my notice. I have not done anything wrong. If this issue was raised during my tenure I would have taken stern action,” said Dr. Abeywardena.