The Hon. (Dr.) Nishantha Samaraweera

¶ 01 Hon. Speaker, at the Adjournment today, I move:

¶ 02 “During the examination of audit reports submitted to the Committee on Public Enterprises (COPE), and in summoning the relevant parties to obtain clarifications, numerous acts of corruption and fraud at various levels have been uncovered. Likewise, the Special Audit Report on the advance payment made under Step 2 of Phase III for the import of 15,000 dairy cattle has also revealed similar matters. To prevent the continuation of such conduct and to foster a more accountable society, it is the responsibility of all Members of Parliament.

¶ 03 Therefore, the necessary legal amendments must be effected expeditiously so that matters arising within COPE can be promptly referred to the Attorney-General to initiate legal action.”

¶ 04 Briefly, I wish to clarify the two main reports forming the basis of today’s debate: - The Special Audit Report on the advance payment for importing 15,000 dairy cattle under Step 2 of Phase III of the dairy cattle import project. - The COPE report containing observations and recommendations arising from the audit reports of the National Gem and Jewellery Authority for 2022 and 2023, and its performance in 2024.

¶ 05 Under Phases I and II of the cattle import project, about 4,500 dairy cattle were imported through Wellard Rural Exports Pty Ltd of Australia. For Phase III, plans from 2014 envisaged importing 20,000 dairy cattle in two steps. Under Step 1, 5,018 cattle were imported by end-2017. The next step aimed to import a further 15,000 cattle. Despite identifying issues and losses during Step 1 and receiving recommendations to rectify them, authorities proceeded with Step 2 without addressing those concerns. The Audit Report shows numerous resultant problems: no fresh procurement was conducted for this phase; instead, a company selected over a decade earlier was again engaged without any current procurement process.

¶ 06 The plan envisaged importing 15,000 cattle over 2018 (2,500), 2019 (7,500) and 2020 (5,000), with a total estimated cost exceeding USD 80 million. An advance of 20 percent for the entire 15,000 cattle—USD 11 million (about Rs. 1,749.6 million)—was paid in 2018 to the same company, without obtaining a performance bond. Ultimately, not a single one of the 15,000 cattle under Step 2 was brought to Sri Lanka, and the whole process failed. When converted and adjusted, the total sunk cost to the State is about Rs. 2,110.3 million. The Report details inefficiencies, alleged frauds, and how a vital national need—enhancing domestic milk production—was undermined.

¶ 07 Accordingly, we must debate these matters today.

¶ 08 Order, please! At this point, the Hon. Speaker is leaving the Chair.

¶ 09 Whereupon THE HON. SPEAKER left the Chair, and DEPUTY SPEAKER [THE HON. (DR.) RIZVIE SALIH] took the Chair.