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No audit since 2016: Focus on fishy deals at CFC  

27 Dec 2020

Evidence gathered on allegations

Complaint to be lodged with CID

  The Ceylon Fisheries Corporation (CFC), which has not conducted auditing since 2016, has commenced a full audit for the years from 2016, State Minister Kanchana Wijesekera said. The last audit of the CFC had been completed in 2015 and it was revealed that no audit has been done since 2016. State Minister of Ornamental Fish, Freshwater Fish and Shrimp Farming Development, Multi-day Fishing and Fish Export Wijesekera told The Sunday Morning that the newly appointed Deputy General Manager (DGM) – Finance will look into the matter. “No audit has been done at the CFC for 2016, 2017, 2018, and 2019. We are auditing it now. Apart from that, we are preparing documents to lodge complaints with the Criminal Investigation Department (CID) over the allegations and irregularities,” he said.   When asked about the nature of allegations, the State Minister said: “Several concerns have been put forward through the Finance Manager over irregularities. We will lodge complaints over irregularities in relation to some constructions and the utilisation of allocated funds. Evidence is being gathered at the moment.” Meanwhile, CFC Chairman Maj. Gen. (Retd.) S.W.L. Daulagala said the new DGM Finance was appointed only three months ago but that they expect to complete the auditing giving priority to the task. He said the Covid-19 pandemic also made an impact in the delay of completing the backlog of audits.   “Everything is being done now. The last audit submitted was the one for 2015, and the one for the year 2016 is being done. Since we have a backlog of four years, it is difficult to complete them immediately in two to three months. We couldn’t perform at full capacity due to Covid restrictions, resulting in lack of staff members. However, it is our responsibility to get the audit completed,” he said. The Chairman, who was appointed 11 months ago, further said the CFC is facing the issue of taking the institution forward without making losses due to previous issues. “We have to pay for fish purchased as far back as 2011 and 2012 as well. We have assets of Rs. 362 million but our liabilities are about Rs. 1.2-1.3 billion. Signs of mismanagement can be seen since 2010. At times, freezer rooms have been sold for scrap metal. We don’t have a place to store fish now. Our priority will be to invest in infrastructure development,” he said.   He said the Government should intervene to find a solution to old issues at the CFC. “The debt at the CFC is about Rs. 900 million and we cannot settle it on our own. Therefore, the Government's involvement is needed. Even when we make the CFC profitable, we can't allow old loans to weigh us down,” he said.


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