The Hon. Wasantha Samarasinghe - Minister of Trade, Commerce, Food Security and Cooperative Development

¶ 01 Hon. Presiding Member, I thank all Hon. Members and Ministers who took part in this debate on our Ministry’s Head of Expenditure. I will respond to many points raised.

¶ 02 Hon. Dayasiri Jayasekara mentioned various companies—particularly Hayleys and Dhammika Perera. I say: look at the Boards and Chairmen we have appointed. Directors and former Chairmen from the best private conglomerates have left those posts to take up positions in our state institutions. Why? Because you earlier sold off state property and institutions, even with the cash in their accounts. We have decided to bring private-sector expertise into the State to build these institutions, not to sell them. The Opposition is trying to paint our officials’ files as if they are the officials’ personal files. As a Government, we decided to bring private knowledge into the State and build institutions.

¶ 03 On Sathosa: Hon. Dayasiri, Hon. Chaminda Wijesiri, and Hon. Mujibur Rahuman made various claims—often only one-sided, and false. We have advertised 21 vacancies—send us qualified people; we will recruit. There are issues about how past staff worked. They are not being sacked; some are leaving. Some are under CID investigations over rice and sugar stocks. This morning I said: since 2014—eleven years—goods worth Rs. 350 million left Sathosa warehouses but have never reached shops; they are still “on the way.” That is how they worked; we are changing that. We appointed the former DGM (Internal Audit) as Acting CEO. As we reform, some with allegations have resigned; we have filed CID complaints; some have left.

¶ 04 Regarding a particular lady officer mentioned by Mujibur Rahuman: her services were discontinued when her contract ended; before leaving, she erased data from the computer—there is a complaint. We will not allow such destruction; we will build these institutions.

¶ 05 On rice procurement: it was said we took rice from Jayawickrama mills. Note: Sathosa had only two moisture meters; if quality fails, stocks are rejected. We have now required suppliers to agree in writing that failed quality will be rejected. We resolved this in a short time.

¶ 06 On vehicles: of 816 vehicles handed to the Presidential Secretariat, we have already reallocated 254 to institutions; some still remain. Vehicles not needed by some will be given where required. Also, many vehicles were listed for auction.

¶ 07 Hon. Marikkar asked thrice about us protecting tax evaders. We say clearly: we protect no thief and allow no theft. He cited several companies; I obtained details along with their tax payments. One entity is not even VAT-registered—we will investigate. We are already pursuing this through the Consumer Affairs Authority, Inland Revenue, and relevant bodies. For example: Amro Refiner (Pvt) Ltd is VAT-registered but has not submitted returns or accounts and has not paid VAT. RG Brothers is not VAT-registered. Sena Mills Refineries (Pvt) Ltd has paid Rs. 17.423 million VAT on 2025.01.21 and Rs. 18.3 million on 2025.02.21. Another “Sena Mills Refineries” had last paid VAT on 2023.08.25. “Amro Sugars” is not VAT-registered. Some expect the Government to pounce on day one; we are acting lawfully and proceeding.

¶ 08 Sathosa’s computer system was not given after we came; it predates us and has issues—stocks in one system, sales in another. We are procuring a new integrated system to see daily sales by shop and total stocks—revealing the systemic irregularities of institutions some tried to shut down. In 2023 they tried to close Lak Sathosa too.

¶ 09 On a union leader named by Dayasiri—he has been with the Inter-Company Employees’ Union since 2004 when Sathosa was formed. People are appointed to posts on merit; no one unqualified is appointed just because of union roles. Those unsuitable are leaving.

¶ 10 Past Governments persecuted employees—false charges and harassment—costing us large sums in court and inquiries. We are rectifying that and uniting all to rebuild Sathosa.

¶ 11 It was alleged that we awarded a tender to E&Y because it is linked to a Presidential adviser. Not so. Under tender procedures, whoever wins gets the award—indeed some companies owned by Members of this very House have government contracts under due tender; I need not name them. We will award to the lowest responsive bidder, not to friends.

¶ 12 On the cooperative movement: it was attempted to be dismantled. Loans from cooperative funds were given to friends and not recovered. We are strengthening cooperatives—by 2027 we aim to establish 1,000 producer cooperatives to integrate producers into the value chain.

¶ 13 Cooperative banks take deposits and give loans; today many lack functioning Boards and depositor funds. In Colombo District: Maharagama Cooperative has about Rs. 1,000 million missing; Dehiwala–Mount Lavinia Rs. 1,300 million; Seethawaka–Avissawella Rs. 980 million. Across the country, around 68 such societies have depositor funds without accountability. Why? Because entities misusing the “cooperative” name—like “Wealth” turned into “Wealth Cooperative”—have been used to launder black money. Therefore we are amending cooperative laws—currently under Provincial Councils. We are drafting three Bills to ensure proper monitoring, including requiring approvals for new branches like normal banks. These so-called “banks” have popped up collecting deposits without oversight; in the end there is no bank and no money. We will provide an insurance shield too.

¶ 14 There is a Cooperative Insurance Company Limited owned by cooperative societies through their shares. It is listed on the stock exchange. But instead of using it to insure our cooperatives and institutions, some go elsewhere. We will correct this.