Lanka Sathosa Limited was ordered to provide a report to Parliament on the loss of Rs. 15 BN it has caused the government when it imported 80,000 MT of rice in 2014 by the Committee on Public Enterprise (COPE) yesterday (21) which Sathosa is said to have kept the stocks in the storehouses for 12 months without releasing them into the market.
The COPE also noted that the management of Lanka Sathosa Limited should take full responsibility for the losses incurred including a sum of Rs. 10,637 MN due to a series of malpractices, as noted by the Auditor General in a special audit report.
Sathosa was also found to have failed to follow the government procurement process.
These observations were made at the COPE proceedings in Parliament on Wednesday.
The COPE also demanded a report from the Sathosa management on the payments of over Rs. 1.5 MN per month to a TV channel named “You TV” for advertising purposes. The Committee urged the management to provide answers to questions as to who took the decision regarding the advertising campaign to the said TV channel and why.
The Committee also questioned the payments it has done on networking Lanka Sathosa Limited which amounts to over Rs. 400 MN and on the reasons as to why the networking process was delayed for over 12 months.
It was also revealed that a payment of Rs. 12,500 per person have been paid on a monthly basis by Sathosa as a transportation allowance for certain employees who do not own a vehicle.
The Chairman of Lanka Sathosa M. Thariq Kaleel, Secretary to the Ministry of Industry and Commerce and other relevant officials were summoned on behalf of Lanka Sathosa Limited before the COPE .