Govt. auditors returning to Litro offices after a lapse of two years

By Shamindra Ferdinando

The Auditor General’s Department, in consultation with the Committee on Public Enterprises (COPE), will soon initiate the process of auditing State-owned Litro Gas and Litro Terminals after a lapse of nearly two years.

The audit inquiry gets underway in the wake of Chairman and CEO of Litro Gas Lanka Limited and Litro Terminals Theshara Jayasinghe’s bombshell revelation at his Union Place Office last Friday (5) that his organization conspired with the foreign supplier to manipulate the gas supply to the country in a bid to compel the state enterprise to further extend a two year contract now in place.

The Committee on Public Enterprises (COPE) sources say the AG has intervened after Jayasinghe withdrew a high-profile case initiated by Litro last year to thwart the due process.

Against the backdrop of Friday’s media briefing, The Island on Saturday (6) sought Jayasinghe explanation how Litro avoided government audit in spite of interventions made by the parliamentary watchdog committee in this regard. Jayasinghe said that he recently withdrew a case filed by Litro meant to deprive the AG of the opportunity to investigate the state enterprise. Jayasinghe said that quite an amount had been spent on the legal term and it should be investigated as well.

AG W.P.C. Wickramaratne yesterday told The Island that a team of officers would be sent to Litro on Monday (8) to commence the inquiry. Wickramaratne said that the AG could not intervene therein due to legal impediment caused by the state enterprise taking legal action. Asked to explain, the AG said that the court prevented the audit process in response to legal action initiated by the company.

Litro has hired President’s Counsel Romesh de Silva and Sanjeeva Jayawardena on its behalf. Sanjeeva Jayawardena represents the Monetary Board of the Central Bank of Sri Lanka for a fresh term of 6 years, up to June 2027. Appointments to the Monetary Board are cleared by the Parliamentary Council chaired by the Speaker.

Responding to another query, Jayasinghe explained how the country’s largest importer of LP gas in spite of being owned by Sri Lanka Insurance Corporation (SLIC) was audited by a private firm at the expense of taxpayers’ money regardless of serious concerns expressed by parliamentary watchdog committee COPE. Jayasinghe pointed out that those interested in extending the contract for a further period from early next year deliberately caused a gas shortage during President Gotabaya Rajapaksa’s absence. “They wanted to secure consensus on a fresh agreement. They probably felt confident the project could have been brought to a successful conclusion as the President was away in Scotland.”

Jayasinghe said that he called a media briefing after having informed the President of the disruption of the gas supply caused by interested parties.

The government in July this year brought Viyathmaga activist in place of Anil Koswatte who received the appointment in January 2020 in the wake of change of government in Nov 2019.

Current Litro and Litro Terminals Board includes Asoka Bandara and Shanthi Kumar. The Corporate Management Team consists of Janaka Pathirana, Lakmali Hapuarachchi, Mignone Wijesuriya, Wickramasinghe Kamalanatha, Jayantha Basnayaka, Pushpakumara Edirisinghe, Terrance Appuhamy, Maheshika Rajakaruna, Hiran Seneviratne and Muditha Thamanagama.

Jayasinghe stressed that as Chairman and CEO of the state enterprise he had no option but to disclose the massive racket that had been perpetrated at the expense of the government. “Their strategy was simple. They deprived the required foreign currency to procure gas in spite of direct intervention of the Central Bank,” Jayasinghe said, declaring he was ready to face the consequences of the unprecedented disclosure.

Anil Koswatte has in writing requested Finance Secretary S.R. Attygalle to inquire into the allegations directed by his successor. Attygalle didn’t answer his hand phone yesterday morning.

The Colombo Magistrate’s Court recently released Koswatte, a former Chairman of Laksala in a case filed by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) as regards the losses caused to the government due to non-compliance with proper procurement procedures. The court issued the order after the CIABOC informed that the case could not be continued due to a technical error in the filing of the case.

Meanwhile, according to COPE proceedings pertaining to Litro Gas and Litro Terminals obtained from the Communications Department of the Parliament, the watchdog committee has inquired into the state enterprises acting contrary to specific instructions issued by the AG. In spite of the Auditor General, having obtained the approval of the Attorney General to proceed with auditing of the two enterprises, couldn’t do so as the board of directors hired private audit firm KPMG. COPE has taken up this issue in late February this year at a meeting attended by Prof. Charitha Herath (Chairman), Jagath Pushpakumara, Patali Champika Ranawaka, Premanath C. Dolawatta, S.M. Marrikar and S. Rasamanikkam.

The then Chairman Anil Koswatte, who had been present there on the invitation of COPE pointed out there couldn’t be any dispute over hiring of a private firm in terms of a decision taken by the Board of Directors of Litro Gas and Litro Terminals.

Koswastte said so when the COPE sought an explanation how the two enterprises hired a private firm as the SLIC which owned 99 percent shares of them was audited by the AG and the SLIC too backed their stand.  During that meeting held on Feb 23, 2021, losses suffered by the SLIC to the tune of Rs 36 mn due to the termination of its operations in Male and Seychelles, too, was revealed.

Inquiries revealed that the SLIC that owned 99 percent of shares at Litro Gas and 100 percent shares at Litro Terminals had one vote at the Board of Directors whereas one share at Litro Gas was represented by three persons.

The COPE has repeatedly told Parliament that their authority in respect of state sector finance is questioned by various parties.

Couple of weeks after Jayasinghe succeeded Koswatte, The Island sought information pertaining to the actual situation at the state enterprise. Having asked for time to go public, Jayasinghe told the media last week that for those who robbed the country, political parties and governments did not matter. Jayasinghe alleged that powerful persons benefited at the expense of the state enterprises and the hapless public.