The Committee on Public Accounts (COPA) has questioned officials of the Southern Provincial Council (SPC) over the 2021 auction of an asphalt production machine, saying the State lost money because leftover bitumen and diesel were not counted in its value.
COPA, chaired by MP Kabir Hashim, reviewed the Auditor General’s reports on the council. These were the triennial report for 2021 to 2023, the reports for 2024 and 2025, and action taken on recommendations made at an earlier COPA meeting in March 2023.
The machine belonged to the Southern Provincial Road Development Authority. It was transferred to the Authority in 2013 and stood idle from 2018 as large-scale road carpeting projects declined. Officials told the committee that the cost of maintaining and guarding it led to the decision to auction it.
COPA asked why 21,782 litres of residual bitumen and the remaining diesel stock were left out when the auction value was set. Officials said legal action had been started to recover the amount from the buyer and complaints had been made to the police. Two officials had faced disciplinary action, but the loss had not been recovered from those responsible. A new investigation committee has since been appointed to determine who was responsible, officials said.
The committee also questioned procurement at the council, including the award of several contracts to a single supplier for plants. It was told that some supplies had not been completed even though advance payments were made, and that authorities were taking steps to acquire a parcel of land to recover the outstanding amounts.
Members asked about the purchase of 86 scanners for about Rs. 27 million. They wanted to know why the scanners were bought without a needs assessment or feasibility study, and why most were later not used for their intended purposes. They also raised the suspension of a digitisation programme midway through because of problems with the related software project, and asked whether circulars and financial regulations were followed in granting fuel and housing allowances to officials of public institutions.
COPA called for formal investigations into the irregularities, a determination of responsibility, and legal and disciplinary action against those found responsible. The committee said public funds and State property could not be managed without accountability and transparency.
Background
COPA is a parliamentary committee that examines how public bodies spend public money, usually working from reports by the Auditor General, who audits State institutions. Provincial councils, which are elected bodies for each province, are among the institutions whose accounts the Auditor General reviews.
The committee does not itself prosecute anyone. It can question officials, make recommendations and ask for investigations, and it is then for the relevant authorities to act on them.
What it means
Provincial councils handle public funds that pay for local roads, equipment and services. When assets are sold for less than their value or equipment is bought but not used, the cost falls on public funds.
The recovery proceedings against the buyer and the new investigation committee are the next steps officials described. Whether the money is recovered will depend on those processes.
