As Sri Lankan commuters endure persistent train delays and inadequate facilities, it has become evident that the railway system reflects governmental incompetence over the course of many decades.
In a significant revelation, the National Audit Office (NAO) has brought to light a multitude of issues, exposing a tangled web of mismanagement, dubious procurement practices, and widespread corruption.
For generations, passengers have faced ongoing challenges, including antiquated trains, chronic delays, and overcrowding, while governmental authorities have failed to address these pressing concerns. Despite a growing commuter population, the provision of adequate train services remains elusive.
The NAO’s findings have uncovered systemic deception perpetrated by Government officials, who have shamelessly misappropriated public funds for personal gain.
Of particular concern is the culture of impunity among senior officials, who exploit loopholes within the system to evade accountability. As retirement approaches, these individuals shirk their responsibilities, leaving behind a legacy of mismanagement and misconduct – all at the expense of taxpayers’ money.
Among the major issues highlighted by the NAO, it has been revealed that a staggering 72% of the total trains have failed to adhere to schedules, leaving passengers stranded and exasperated.
Despite the establishment of schedules dating back to 1865, the latest audit report exposed that out of the planned 120,993 train runs in 2022, only 32,844 ran on time and a notable 10,077 cancellations were recorded. The report underscores the chronic unreliability that has plagued the Sri Lankan rail network for decades.
Even more baffling is the revelation that despite the dismal performance, resources remain underutilised.
In 2022 alone, 23 locomotives and 36 power sets sat idle, a stark contrast to the previous year when significant investments were made. The acquisition of six power sets and 10 engines from India in 2021, totalling a hefty $ 90 million, raises serious questions about the allocation and utilisation of funds within the railway sector.
The Sunday Morning learns that out of 10 engines, only four are currently operational. Furthermore, one of these operational engines recently experienced a breakdown due to an issue and is now stationed at the Kalutara Railway Station.
Issues with compartments
Speaking to The Sunday Morning, Railway Trade Union Collective Convenor Indika Dodangoda expressed concern over the situation. Dodangoda stated: “Not only are the engines underutilised, but also many of the compartments remain out of service.”
Dodangoda emphasised that the union had previously raised concerns about the suitability of these engines and compartments, but their warnings were disregarded by some individuals who proceeded with their procurement regardless.
Furthermore, the report sheds light on the stagnation of Sri Lanka Railways’ contribution to the country’s transportation landscape. Despite historically accounting for 6% of passenger transport and 6.5% of freight transport, the department’s share has failed to see meaningful growth.
The revelation that the railway network had shrunk from 1,521 km in 1934 to a mere 1,465 km by 2021, with a nett decrease of 56 metres even after recent expansions, underscores a concerning trend of regression.
Additionally, the report disclosed that on 2 April 2019, for the second time, the supplier had been notified regarding the unsuitability of an item to be purchased – known as Item No.6 – while procuring spare parts for M4-class locomotives. The item, identified as panel model 17FL11C1 for over-speed protection and transition speed events, had been found to be unsuitable. Despite this, the rejected item had been re-delivered on 5 September 2019. However, as of 31 December 2022, the required items, valued at Rs. 1,202,864 (110.71×10,895), had still not been provided.
New committees
In response, the railway management stated that a Technical Evaluation Committee had been appointed to develop a formal contract format beneficial to both parties. This committee’s mandate includes making recommendations on document drafting, preparing new tender documents in line with procurement guidelines, and incorporating necessary conditions, payment terms, and security measures.
The committee has completed drafting the relevant bid documents, which will be submitted to the procurement committee for approval. This process aims to minimise such situations in future procurement activities.
Furthermore, in the procurement of spare parts for M4-class locomotives, Item No.6, which had been rejected for a second time, was reported to the relevant agency. It was noted that the warranty period for this item had expired and despite reaching out to the agency, as of 31 December 2022 no response had been received.
To address these issues, steps have been taken to develop a new tender document in alignment with current procurement guidelines. This document will encompass conditions, terms of payment, security measures, and other pertinent details. Additionally, a Technical Appraisal Committee has been convened to draft a formal agreement format that ensures fairness to both parties and offers recommendations for document preparation.
Furthermore, it has come to light that despite commencing the procurement of spare parts for M4-class locomotives in 2011, the required goods could not be obtained until 2022 due to their unavailability. Consequently, non-essential items were ordered to meet the demand.
Among these purchases was a spare part essential for M4 engine maintenance, comprising nine items procured under RLJ 3158/16. While all other items had been utilised for repair work after being retrieved from storage as necessary, this particular item could not be considered non-essential.
The inability to use it stemmed from the fact that the supplied item had been defective and the correct replacement had not been provided by the supplier despite two deliveries. Consequently, the supplier had been requested to re-deliver the goods, with the stipulation of providing a bank guarantee to secure the return of the initially supplied item.
An agreement had subsequently been reached with the supplier, whereby the items would be delivered only after the bank guarantee was furnished. Furthermore, the supplier had agreed to accept the return of the defective items, and the agency had committed to replacing them with functional ones. This response was provided by the management in reaction to the findings of the audit.
Additionally, it has been revealed that despite arrangements being made to procure railway carriages urgently needed for repair, the purchase could not be completed within the four-year period from 2018 to the end of 2021. This delay was attributed to the reported unavailability of stock in stores. The manner in which repairs were conducted had raised concerns during the audit, particularly regarding resorting to extensive purchases under the guise of urgent needs, a practice deemed controversial.
Furthermore, as revealed by the NAO, despite informing the supplier on 19 October 2020, regarding the shortfall in the spare parts ordered under RJFM/3432/17 and the need for resupply, the supplier had failed to take action to supply the outstanding spare parts worth Rs. 4,780,740 or refund the related payment.
Despite more than two years having passed since the payment, the agency had been unable to take action against the supplier due to the absence of terms in the agreement addressing undersupply, lack of deposit retention, and failure to obtain performance security as per procurement guidelines. Consequently, the Rs. 5,631,510 paid for goods not supplied had become a loss to the Government.
Similarly, despite being informed on four occasions to provide outstanding goods ordered under RWS/3367/15 but not supplied, the supplier had not fulfilled these obligations as of 15 July 2022, the audit date. This failure amounted to Rs. 3,697,022, and the agency’s inability to take action against the supplier due to contractual deficiencies and the absence of performance security led to a loss of Rs. 4,714,396 to the Government.
In response, the management had asserted that the full amount must be paid to the supplier as per current letter of credit conditions. However, they had acknowledged that in cases of non-supplied goods, relevant suppliers would be notified for return arrangements or refunding. To mitigate such situations in the future, a new bid document is being prepared in compliance with current procurement guidelines, incorporating necessary conditions, payment terms, and security measures to safeguard the interests of both parties.
In the face of such egregious malpractice, the plight of the everyday commuter is relegated to the sidelines, to endure the indignity of dilapidated trains and crumbling infrastructure. As calls for reform grow louder, the question remains: will the powers that be heed the cries of the people, or will they continue to turn a blind eye to the rot within?
Attempts by The Sunday Morning to contact Transport Minister Bandula Gunawardana proved futile.