The Hon. Lieutenant Commander (Rtd.) Prageeth Madhuranga

¶ 01 Hon. Presiding Member, Hon. Namal Rajapaksa said earlier that for about ten years after that Government came in, no proper action was taken on this dairy cattle issue. If he is in a position to hear me, I would point out: on 13.01.2014, then President Mahinda Rajapaksa submitted the first Cabinet memorandum on this matter. On 17.12.2014, then Minister Basil Rajapaksa’s Cabinet paper noted a proposal to procure from Wellard Rural Exports (Pvt) Ltd. This is the very company tied to problems in phases I and II, and in phase III stage I of cattle imports. The Auditor General’s report of 04.05.2018 records health issues, procurement issues, and non-conformity of imported cattle. Despite such findings, and contrary to recommendations to prevent recurrence, those corrupt governments released a 20% advance for phase III stage II, treating public funds as private booty.

¶ 02 Procurement Guideline 5.4.5 requires acceptable securities. Yet, without any such security, a 20% advance was released to Wellard Rural Exports. The Ministry of Rural Economic Affairs incurred a fruitless expenditure of Rs. 2,110.3 million; by 25 February 2025 there had been no benefit to Sri Lanka. The contract also required a 2.5% performance security, which was not obtained. Had it been taken, we could have recovered 2.5% of payments.

¶ 03 On the National Gem and Jewellery Authority (NGJA): On 16.07.2021, NGJA received a report that its building was subsiding due to a private nearby construction. The then State Minister, present in the House this morning, tried to divert attention. During his tenure, without any procurement process, the NGJA rented another building from 01.09.2021 to 31.08.2023 at Rs. 4.5 million per month—Rs. 108 million over two years—without procurement, and later, through procurement, selected the very same building again from 01.09.2023 to 01.08.2025 at Rs. 4,950,000 per month, incurring Rs. 113.85 million. The Government valuer had set the monthly valuation at Rs. 4.8 million, so the rent exceeded the valuation by Rs. 150,000 per month.

¶ 04 Moreover, the directors of the landlord company are themselves directors of a company licensed by the NGJA to mine and export gems—a clear conflict. Despite spending these vast sums, the private party responsible for damaging the NGJA building had offered to provide an alternative building at Rs. 3 million per month for six months—an offer the Authority did not accept—choosing instead to rent elsewhere, first without procurement, then with procurement.

¶ 05 From July 2021 to February 2025, Rs. 208.95 million has been paid in rent. The NBRO has reported that the damaged NGJA building could have been repaired and reused at a cost of only Rs. 21 million. Additionally, an FTIR machine worth Rs. 18 million became inoperative due to a roof leak after relocation. In total, Rs. 113.85 million (first rent period) + Rs. 108 million (second rent period) + Rs. 18 million (machine damage) = Rs. 239.85 million spent, whereas repairs would have cost Rs. 21 million—an avoidable loss of Rs. 218.85 million to NGJA and the State due to corrupt and inefficient decisions.

¶ 06 We toil day and night for the poorest of our people. For 76 years, rulers misused and wasted funds, impoverishing the public. COPE exposes such matters not to harass officials but to stop waste and redirect resources to the people’s welfare. The COPE Chairman and all Members work towards that end.

¶ 07 Thank you.