Rupavahini may vanish into thin air

Rupavahini may vanish into thin air


Rupavahini was losing income, and it was feared that the state TV may become another white elephant before long, Auditor General’s Department, the Treasury and COPE sources revealed yesterday.

A confidential report sent to the Parliamentary Committee on Public Enterprises (COPE) by Treasury Secretary Dr. P.B.Jayasundara on the performance of the Rupavahini  in 2005 – 2009 says that the SLRC has not submitted updated corporate plan for 2010.

Deficiencies in management and financial discipline had  reduced the annual profit to a mere Rs. 4.7 mn in 2009 from a very satisfactory Rs. 137 mn profit in 2006. he net profit ratio has been decreased from a healthy 8% in 2006 to a poor 0.25% last year, the Auditor General has said. 

“The operating loss has been increasing annually since 2005 and the heaviest operating loss has been recorded for 2008. The income was significantly lower than expenditure and recorded a heavy loss which was a serious situation that needs immediate attention,” the report said.

The report draws the attention of the government to put the house at the SLRC in order adding that there has been erosion in the performance of SLRC management in recruitment of employees and financial management.

The report says that the SLRC has not achieved budget targets of profit before and after tax in the four years in review. The SLRC has recruited 79 officers creating new designations without taking proper approvals. Another 31 officers have been recruited outside the approval cadre.

“The cost of employment of the SLRC is high and most of the allowances given to the staff were without taking proper approval and 69% of the total administrative expenses in 2009 were for the staff salaries and benefits,” the report has said..The Auditor General in his observation on the performance of the SLRC in the year 2005 to 2008 has highlighted that the SLRC has failed to comply with the Sri Lanka accounting standards and policies in preparing its financial statements.

He further says that there were accounting deficiencies, poor management, lack of evidence for credit and non compliance with the laws and regulations has caused to erode the profit margin of the SLRC sharply.

/ News

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