Govt. loses over Rs.1Bn due to frauds related to vehicle registration

Due to the failure of charging the prescribed fees for the registration of 296 motorcycles falling under the engine capacity category of 201 to 450, the government has incurred a loss of Rs. 78.15 million, a statement from the parliamentary media unit said yesterday. 

It was disclosed at the meeting of the Committee on Public Accounts (COPA) of Parliament. The statement said 3,088 motorcycles had been registered without Cabinet approval and legal documentation required for registration.
The COPE Chairman MP Aravinda Senaratne chaired the meeting held on March 21.

The discussion focused on the Auditor General’s reports for 2020, 2021, 2022, and 2023 of the Department of Motor Traffic and its current performance.

The COPA also inquired into the implementation of the recommendations issued during the COPA meetings held in 2019. A detailed discussion took place regarding 25 points presented by the Auditor General concerning illegal vehicle registrations that had occurred before the integration of the Sri Lanka Customs computer system. Investigations conducted on this matter and the disciplinary actions taken against the responsible officials by the Department of Motor Traffic were also reviewed.

“During this discussion, the committee expressed strong disapproval of the department’s failure to take any disciplinary action against the relevant officials. It was emphasised that the reports submitted in this regard were entirely unsatisfactory. As a result, the Chairman recommended that immediate disciplinary measures be taken and that an independent team of officials be appointed to conduct the necessary investigations.

COPA also paid attention to fraudulent vehicle registration certificates issued by incorporating the engine and chassis numbers of illegally imported vehicles into pre-existing registered vehicle numbers. It was revealed that this had resulted in a loss of Rs. 1.2 billion to the government.

Additionally, the committee examined the fraudulent issuance of vehicle registration certificates for unused vacant registration numbers by the Department of Motor Traffic, which had caused a loss of Rs. 6.2 million to the government. 

Moreover, the misuse of diplomatic vehicle registration numbers to register other vehicles had led to a financial loss of Rs. 122 million. The Auditor General emphasised the importance of making the public aware of these matters.

Following an inquiry into the corruption, fraud, and irregularities that have occurred within the Department of Motor Traffic, the committee recommended that disciplinary actions be taken against all responsible officials and that the progress of these actions be reviewed monthly. It was also recommended that the relevant legal enforcement authorities take necessary steps to implement the law regarding any criminal activities that had taken place,” the statement said.