The Parliamentary Committee on Public Enterprises (COPE) has been informed that Rs. 20,630 million collected during the period from 2018 to November 2023 by the Civil Aviation Authority of Sri Lanka has not been remitted to the Treasury.
During a meeting of the COPE in Parliament this week, the Committee Chair stated that, according to clauses 07 and 08 of Extraordinary Gazette No. 1550/7 dated 22nd May 2008, the Overseas Sales Surcharge (OSS) collected by the Civil Aviation Authority should be credited to the Consolidated Fund.
He further said that, however, since the inception of the Gazette notification, the Overseas Sales Surcharge has not been credited to the Consolidated Fund but has been identified as the income of the Authority and retained by it.
Furthermore, the COPE Chair said that the Audit disclosed that Rs. 90 million per month could be retained for Authority expenditure, and the balance should be remitted to the Treasury from this collected income in accordance with the Cabinet decision given in November 2023. However, he stated that the audit has revealed that the sum of Rs. 20,630 million collected during the period from 2018 to November 2023 has not been remitted to the Treasury.
Officials pointed out that the income earned from these retained funds is the main revenue source of the Civil Aviation Authority. However, the Committee Chair inquired whether these retained funds were utilised for activities related to regulation, and stated that the Cabinet decision concerning these funds should also be reconsidered.
The COPE Chair further instructed the Civil Aviation Authority of Sri Lanka to act within the prevailing legal framework if it is to properly carry out its primary function of “regulation.”
The directive was issued when the COPE, chaired by MP Nishantha Samaraweera, met in Parliament this week (20) to examine the Auditor General’s Reports of 2022 and 2023 and the current performance of the Civil Aviation Authority of Sri Lanka.
Further, extensive discussions took place at COPE regarding the renovation work of the bungalow maintained by the Authority in Weerawila. The procurement plan had been approved for Rs. 4.5 million for this renovation process, but during implementation, it had risen to Rs. 24 million.
The Committee questioned officials regarding this increase. However, the officials stated that these details were inaccurate and that updated information has been referred to the audit. Accordingly, expressing displeasure regarding the failure to provide accurate information to the audit, the Committee Chair instructed that accurate information be provided within the specified timeframe.
It was also revealed by the National Audit Office officials that even after the renovation of the official quarters of the Authority at Katunayake, the main shortcomings that existed before the renovations still remained, as observed during physical inspections carried out by the audit.
The Committee also discussed at length that approximately Rs. 1.5 million had been spent merely for the repair of doors. Accordingly, the Committee Chairman instructed the Secretary of the Ministry and the relevant officials to carry out a full re-examination of these renovation works of the buildings and the related procedures.
Extensive discussions were also held at COPE regarding the existing staff vacancies of the Civil Aviation Authority. It was disclosed that around 14 senior-level vacancies have persisted for several years.
In response, officials explained that although the Authority had called for applications, suitably qualified persons with expertise and experience had not applied for these posts due to prevailing salary disparities. However, they stated that applications have been called and that after receiving the necessary approvals from the Prime Minister’s Committee, the vacancies would be filled.
Commenting on this, the Committee Chair pointed out that at present, a positive perception regarding Sri Lanka is emerging among citizens, and therefore, persons with expertise and qualifications would be willing to serve in professions not merely for salaries but also due to the interest shown towards such careers.
Nevertheless, he instructed that discussions be held with the Department of Management Services to review the salaries for the vacant posts of the Civil Aviation Authority and to take suitable action. Further, the Committee was instructed to take necessary measures to build a workforce with the required knowledge in this field within the country. (Newswire)
