A significant corruption scandal involving public land owned by the Colombo Municipal Council (CMC) has surfaced following revelations in a report by the Auditor General. 

Following an ultimatum of two weeks that concluded on 14 March, Committee on Public Accounts (COPA) Chairperson Aravinda Senarath revealed that the committee was yet to receive an official report from the Chief Secretary of the Western Provincial Council.

According to the findings of the report, a funeral parlour had allegedly been operating illegally on land originally designated as the official residence of the caretaker of the Borella Cemetery. Senarath revealed in Parliament that the appointed caretaker of the Borella Cemetery was allegedly responsible for operating the unauthorised business. 

The alleged irregularities, which have persisted for over three decades since 1994, involve not just the watchman but a network of officials and political figures who allegedly facilitated and profited from the illegal operation.

The alleged misuse of public property has led to an estimated loss of Rs. 144 million to the CMC. However, Senarath cautioned that the real figure could be even higher due to the long-standing nature of the alleged malpractice and the absence of formal records. 

“There is a recorded estimated loss of Rs. 144 million to the CMC, but we cannot really put a proper estimate because this entity is against the law and there is an abuse of property. The loss could be even greater as well,” he said. 

The alleged illegal entity was never legally recognised, and no rent or official payments were made for the use of municipal land. “If this entity had been maintained in accordance with the law, then an estimate could have been drawn, but this is against the law,” Senarath added, affirming that the business had no legal standing.

COPA has taken serious note of the issue, especially since the 2022 and 2023 audit reports had flagged the irregularity but no action had been taken by the responsible authorities. 

“This matter was reported in the 2022 and 2023 audit reports; these things get audited. However, no action had been taken in this respect. Therefore, we took it upon ourselves to investigate this,” Senarath said. 

As a result, COPA had instructed the CMC to submit a detailed response regarding the findings within two weeks, a deadline which expired on 14 March.

CMC position 

When contacted by The Sunday Morning, CMC Commissioner Palitha Nanayakkara said that given the pending investigation by Western Provincial Council Chief Secretary Dhammika Wijayasinghe, he was unwilling to disclose information on the case.

Reiterating the same stance, Wijayasinghe said: “The matter is currently sub judice (under trial) and I cannot therefore divulge additional details.” 

When questioned on the two-week ultimatum, she stated: “Two weeks were insufficient to complete the investigation and to file a report, and I have notified COPA of this. Therefore, I have submitted an interim report to COPA.”

However, Senarath claimed that no report had been received from the Chief Secretary thus far, and at the latest COPA meeting, officials were instructed to retrieve the necessary report from the CMC and conduct an independent investigation.

The issue at hand is not merely a case of unauthorised land use but a broader reflection of entrenched corruption in municipal governance. Senarath emphasised that public property must serve the interests of the people and not private individuals. 

“An official cannot conduct private business on public land, cause a loss to public land, abuse the land for any reason, or utilise it for business purposes,” he asserted. He further emphasised that COPA was empowered to ensure that municipal property was used for the benefit of the public. As such, the operation of the allegedly illegal business entity has been ordered to be halted.

Decades of malpractice

One of the most alarming aspects of the scandal is its long duration. The alleged illegal operation has reportedly been ongoing since 1994, spanning multiple political administrations. Senarath alleged that officials and politicians from various backgrounds had facilitated the business through underhanded dealings.

Despite its decades-long existence, no direct link has been established between the issue and any particular government. 

When questioned whether the Chandrika Bandaranaike Kumaratunga Government, which came to power in 1994, bore responsibility, Senarath stated: “We cannot say for certain right now. We have not traced evidence of any such direct connection so far. However, we do have evidence of the governors of the time and certain other officials issuing warnings to the entity and subsequent measures.”

Beyond political figures, municipal officials have also played a critical role in allegedly enabling the illegal business. The investigations have revealed that multiple individuals, ranging from governing officials to CMC employees, had been involved. 

“It is not just one person; there are governing officials, politicians, and CMC officials who have had underhanded dealings to ensure the smooth functioning of this entity, according to the information we have uncovered thus far,” Senarath said.

With investigations now underway, COPA is determined to hold both current and former officials accountable for their actions. 

“The current officials also have a responsibility for this. At the same time, the previous officials who had underhanded dealings and helped run this entity also have a responsibility. 

“We are in touch with the Ministry of Public Administration on this matter regarding how to proceed. We will definitely act against them. The ministry will have to look into the estimated losses and the Ministry Secretary has the power to act against the officials who engaged in malpractices in the past,” Senarath stated.

Senarath made it clear that legal proceedings could follow. “We are in the process of uncovering some corrupt practices. Eventually, we will be able to proceed to court regarding these corrupt practices. The audit report is giving us direction in this regard,” he said.

The Auditor General’s Annual Reports for 2022 and 2023 had flagged multiple financial and administrative irregularities within the CMC, highlighting concerns over governance, transparency, and financial mismanagement.

One of the other key issues identified relates to the administration of CMC-operated vehicle parking facilities, which reportedly suffer from mismanagement and operational inefficiencies. While the exact financial losses remain unclear, the report points to a lack of proper oversight and accountability in handling revenue from these facilities.

Future action 

COPA has not provided additional time for the CMC to submit a response but has instead mandated immediate action. “We have not given extra time. We have issued certain instructions to the CMC, which it must implement,” Senarath said.  

Another COPA meeting would be convened soon, where officials from the CMC would be summoned to present their progress on the investigation, Senarath assured.

Meanwhile, Deputy Minister of Public Administration, Provincial Councils, and Local Government Prabha Ruwan Senarath told The Sunday Morning that while his ministry was aware of the issues raised by COPA, it was yet to arrive at a final decision on how to deal with the present and former employees of the CMC.

“There is an ongoing investigation mandated by COPA and we are still awaiting the outcome of that investigation. We cannot act prematurely against State sector employees without first determining all pieces of the puzzle. 

“Let COPA first make its determination, and if there is to be a court case, we may be subject to the decision of the courts as well. For now, we are only aware of the malpractices that have taken place. Once the ministry is authorised to take action, we will ensure that the public is made aware,” he said.