Parliamentary Series No 230 The Eighth Parliament …...Public Enterprises for the Third Session of...

Parliamentary Series No. 230

The Eighth Parliament of

The Democratic Socialist Republic of Sri Lanka

(Third Session)

Fourth Report of the Committee on Public Enterprises

(The Report presented by the Parliamentary Committee on Public Enterprises on

the State Universities and Higher Education Institutions that Operating parallel

with them, which were subjected to Examination from 17th March 2017 to 4

th

April 2018 by the Committee)

Presented on 07th

day of November 2019 by

Hon. Sunil Handunnetti

Chairman of the Committee on Public Enterprises

Ordered to be printed by Parliament of Sri Lanka

On 07th day of November 2019

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Parliamentary Series No 230

3

The fourth report of the Committee on Public Enterprises in the eighth Parliament of the third

session of the Democratic Socialist Republic of Sri Lanka

Committee on Public Enterprises

Eighth Parliament (Third Session)

As per the Speaker‟s Announcement made in Parliament on 11th January 2019,

the following 16 Members of Parliament were appointed to the Committee on

Public Enterprises for the Third Session of the Eighth Parliament by the

Committee of Selection on 10th January 2019 in terms of Standing Order 120 (1):

1. Hon. Sunil Handunneththi, M.P. (Chairman)

2. Hon. Rauff Hakeem, M.P.

3. Hon. Ravindra Samaraweera, M.P.

4. Hon. Sujeewa Senasinghe

5. Hon. (Dr.) Harsha de Silva, M.P.

6. Hon. Ajith P. Perera, M.P.

7. Hon. Wasantha Aluvihare, M.P.

8. Hon. Ranjan Ramanayake, M.P.

9. Hon. Ashok Abeysinghe, M.P.

10. Hon. Anura Priyadarshana Yapa, M.P.

11. Hon. Lakshman Senevirathna, M.P.

12. Hon. Chandrasiri Gajadheera, M.P.

13. Hon. Mahindananda Aluthgamage, M.P.

14. Hon. Dayasiri Jayasekara, M.P.

15. Hon. Jayantha Samaraweera, M.P.

16. Hon. Mavai S. Senadhiraja, M.P.

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Eighth Parliament (Second Session)

This report presents facts unveiled regarding State Universities and Higher

Education Institutions that Operating side by side with them, examined from

17th

March 2017 to 04th

April 2018 at the Committee on Public Enterprises

within the Second Session of the Eighth Parliament and the Committee on

Public Enterprises of the Second Session of the Eighth Parliament,

Chaired by Hon. Sunil Handunneththi, consisted of the following 26 Hon.

Members of Parliament.

1. Hon. Sunil Handunneththi, M.P., (Chairman)

2. Hon. Rauff Hakeem, M.P.,

3. Hon. Ravindra Samaraweera, M.P.,

4. Hon. Lakshman Senevirathne, M.P.,

5. Hon. Sujeewa Senasinghe, M.P.,

6. Hon. Wasantha Aluvihare, M.P.,

7. Hon. (Dr.) Harsha de Silva, M.P.,

8. Hon. Ajith P. Perera, M.P.,

9. Hon. Lasantha Alagiyawanna, M.P.,

10. Hon. Ranjan Ramanayake, M.P.,

11. Hon. Ashok Abeysinghe, M.P.,

12. Hon. Anura Priyadarshana Yapa, M.P.,

13. Hon. Anura Dissanayake, M.P.,

14. Hon. Chandrasiri Gajadheera, M.P.,

15. Hon. Mahindananda Aluthgamage, M.P.,

16. Hon. Dayasiri Jayasekara, M.P.,

17. Hon. Bimal Rathnayake, M.P.,

18. Hon. Mavai S. Senadhiraja, M.P.,

19. Hon. Abdullah Mahroof, M.P.,

20. Hon. Jayantha Samaraweera, M.P.,

21. Hon. S. Sritharan, M.P.,

22. Hon. M.A. Sumanthiran, M.P.,

23. Hon. Hector Appuhamy, M.P.,

24. Hon. (Dr.) Nalinda Jayatissa, M.P.,

25. Hon. Harshana Rajakaruna, M.P.,

26. Hon. Gnanamuththu Srineshan, M.P.,

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CONTENTS

Chairman‟s Note………………………………………………… 9

Fourth Report of the Committee on Public Enterprises

For the Third Session…………………………………… 11

University of Sri Jayewardenepura……………………………... 15

University of Peradeniya………………………………………... 21

University of Colombo………………………………………….. 29

Sabaragamuwa University of Sri Lanka………………………… 37

University of Ruhuna……………………………………………. 41

University of Kelaniya…………………………………………… 45

South Eastern University of Sri Lanka………………………….. 47

Eastern University of Sri Lanka…………………………………. 55

University of Jaffna …………………………………………….. 69

University of Wayamba ………………………………………… 73

Uwa Wellassa University of Sri Lanka …………………………. 85

Open University of Sri Lanka …………………………………… 89

Rajarata University of Sri Lanka……………………………….... 91

Rajarata University of Sri Lanka along with

The State Engineering Corporation of Sri Lanka…………………93

University of Visual and Performing Arts…………………... 95

Buddhist and Pali University of Sri Lanka ……………………… 99

(Not coming under the purview of the University Grants Commission)

University of Moratuwa………………………………………….. 105

Annex 12 –……………………………………………………… 109

The special audit report comprised of the issues raised in

COPE meetings and observations regarding the University

System of the country

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Chairman’s Note

The University Grants Commission is the main regulatory body monitoring the

state university system of Sri Lanka. There are 15 state universities under the

University Grants Commission.

Since universities render a yeoman service to the higher education sector of the

country, every succeeding government has made sizable financial investments

into the university system with a view to developing the human resource in Sri

Lanka.

The Committee on Public Enterprises has, on several occasions, discussed in

depth, the observations that were disclosed about the university system of Sri

Lanka from the audits carried out over the past time period. Although, the

Committee has issued directives and recommendations from time to time to

resolve these issues, the level of adherence to these directives and

recommendations is not satisfactory.

Therefore, at the request of the Committee, the Auditor General took action to

present to Parliament a comprehensive report exclusively on the universities.

Based on facts and observations therein contained, the Committee has decided to

submit this report to Parliament.

I appreciate greatly the cooperation extended to the Committee on Public

Enterprises by the Auditor General and the staff of the Auditor General by

auditing the accounts of these institutes. Furthermore I extend my sincere thanks

to all members of the Committee on Public Enterprises, the staff of the

Committee office who provided their support for the compilation of this report

and the staff of the Interpreters‟ Office who translated this report.

Sunil Handunnetti

Chairman


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Third Session of the Eighth Parliament

Fourth Report of the Third Session of the


Introduction

It is with great pleasure that the Committee on Public Enterprises presents its

Fourth Report of the Third Session of the Eighth Parliament.

The Auditor General under the Committee on Public Enterprises subjects to

scrutiny all state Corporations, companies deemed to have been registered under

the Companies Act No. 7 of 2007 or any other written law in which company the

government or a state owned company or any local authority holds 50% or more

of the shares including their accounts.

As such, this Report contains observations and recommendations pertaining to

the following sixteen universities that were subjected to scrutiny of the

Committee during the period 17.03.2017 to 04.04.2018. in compiling this Report,

the facts in the Special Audit Report (Annex 12) prepared by the Auditor

General on the request of the Committee on Public Enterprises regarding the

observations revealed regarding the University system during the audit conducted

in this period were also subjected to consideration.

The Universities Examined by the Committee on Public Enterprises in the

Years 2017 and 2018 and the Times of Examination

Institution Date of

Examination

Period Covered by the

Examination

1. University of Sri

Jayewardenepura

07.03.2017 Reports of the Auditor

General for the years 2011,

2012, 2013 and 2014 and

the present performance

2. University of Peradeniya 23.05.2017 Reports of the Auditor


2012, 2013 and 2014 and


3. University of Colombo 04.07.2017 Reports of the Auditor


2013 and 2014 and the

present performance

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4. University of

Sabaragamuwa




present performance

5. University of Ruhuna 21.09.2017 Reports of the Auditor


2012, 2013, 2014 and 2015

and the present performance

6. University of Kelaniya 22.09.2017 Reports of the Auditor


2012, 2013, 2014 and 2015


7. Southeastern University

of Sri Lanka



2012, 2013, 2014 and 2015


8. Eastern University of Sri

Lanka



2012, 2013, 2014 and 2015


9. University of Jaffna 23.11.2017 Reports of the Auditor


2013, 2014 and 2015 and


10. University of Wayamba 28.11.2017 Reports of the Auditor


2012, 2013, 2014 and 2015


11. Uwa Wellassa University 29.11.2017 Reports of the Auditor


2012, 2013, 2014 and 2015


12. Open University of Sri

Lanka




present performance

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13. University of Rajarata 21.03.2018 Reports of the Auditor


2013, 2014 and 2015 and


14. University of Rajarata

along with State

Engineering Corporation

of Sri Lanka

03.04.2018 Present status with regard to

the recommendations of the

Committee of 21.03.2018

15. University of Visual and

Performing Arts



2012, 2013, 2014 and 2015


16. Buddhist and Pali

University of Sri Lanka



2013, 2014 and 2016 and


17. University of Moratuwa 04.04.2018 Reports of the Auditor


2014, 2015 and 2016 and


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University of Sri Jayewardenepura

(Ministry of Higher Education and Cultural Affairs)

(This institution belongs to the Ministry of City Planning, Water Supply and Higher Education from

28.12.2018)

Date of Investigation: 07 March 2017

Matters Discussed

01. Awarding an honorary doctoral degree to a foreigner violating the

provisions in the Universities Act

The steps taken against the officers responsible for awarding an honorary

doctorate to a foreigner by the Hema Ellawala foundation in the Department

of History and Archeology violating the provisions in the Universities Act.

The Vice Chancellor stated that an investigation was conducted in 2013 on

this matter and the said officers have been acquitted from the charges against

them and the Senate has accepted that decision.

Recommendations

The Vice Chancellor of the University was recommended to direct the

following reports to the Committee within one week.

i. A copy of the report of the investigation,

ii. A complete report including the names of the officers in the Board

who gave the approval in this regard

iii. A report that includes the details of the honorary doctorates that had

been awarded during the past 05 years as ordered by the Committee

held on 10/10/2012

Report the present situation and the progress

As requested by the above recommendations, the copy of the report of the

investigation, the list of the officers in the Board of Directors who approved

that, the report of honorary degrees awarded from 2005 to 2016, have been

submitted to the Committee by the letter dated 25.05.2017 and No. අවි/

ක ෝප්/ 2017 /1 of the Vice Chancellor (Acting) of the University.

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02. Maintaining a fixed deposit of Rs. 1001 million by the institution as

at 31.12.2016

The Vice Chancellor stated that course fees for the courses like self-financing

are debited to that account and such money is taken back for the expenses

required to conduct those courses.

Recommendations

i. Pay attention to prepare a methodology that is common to all the

Universities regarding the handling of such fixed deposits.

ii. Obtaining the approval from the General Treasury and the

University Grants Commission to maintain the fixed deposit.


i. State secretary (higher education division), by his letter dated

14.06.2017 and with a copy to the Secretary to the Committee

on Public Enterprises, has ordered the Chairman of the

University Grants Commission to prepare a methodology that is

common to all the Universities with regard to the handling of

fixed deposits as per the above mentioned recommendation no.

(i) .

However, as further stated by that letter the progress of the preparation of

such a methodology has not been reported to this Committee as of

31.10.2017.

ii. A copy of the letter dated 13.03.2017 that has been sent by the

Vice Chancellor, after taking the necessary arrangements as per

the above-mentioned recommendation no. (ii), to the Director

General (Budget Department), through the Secretary to the

Ministry of Higher Education and the Chairman of the

University Grants Commission requesting the approval to

maintain the relevant fixed deposit has been submitted to the

Committee.

03. According to the data on enrolling students to the Universities in the

previous years there is a difference between the number of student

enrollments to the Universities and the proposed number of students

that are to be enrolled to the Universities, and there is a decline in

the number of students enrolled to the courses though there are

vacancies

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The Vice Chancellor stated that this shortage resulted due to the effort

made by the science and math students to enter into the medicine and

engineering courses without enrolling themselves to the courses to which

they have been selected.

Recommendations

i. The Committee was of the view that the students should be

enrolled to the Universities without any delay to provide a

solution for that.

ii. The other solution is that as the Vice Chancellor gave his

consent the Chairman of the University Grants Commission

should be informed to take necessary action, if possible, to direct

the students to the Universities even if there is a delay.


The Committee has been informed by the Vice Chancellor‟s letter dated

25.05.2017 and No. අවි/ක ෝප්/2017/1 that all the students sent by the

University Grants Commission at a later stage have been either enrolled

or registered into the relevant courses

04. As per the Senate meeting that was held on 27.01.2011, the

investigation that has been decided to be conducted with regard to a

professor who tried to obtain a professorship by using a thesis

presented by some other person for another degree

The Vice Chancellor stated that the above investigation has not yet been

conducted.

Recommendations

Conduct an independent investigation in this regard and report the

decision of the Senate within a month.


As per the recommendations given to the University of Sri

Jayewardenepura, which was summoned before the Committee on 07

March 2017, a three-member committee has been appointed in the 461st

meeting of the University Governing Council on 09.03.2017 to conduct

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an independent investigation on this matter but due to the criticism

published in social media web sites about the members of the committee

two of the members have informed that they would not participate in the

committee. It has been reported to the Committee in a letter dated

25.05.2017 and No. අවි/ ක ෝප්/2017/1 that in the 462nd

Governing

Council meeting conducted on 25.04.2017 three new members and one

additional member have been appointed but those three members also

have expressed their unwillingness to participate in the committee.

Therefore, in the 463rd

Governing Council meeting held on 18.05.2017

three members, for whom the approval was granted earlier, were

appointed and investigations have been started. Further an additional

report dated 15.08.2017 has been submitted with regard to the above

matter and the final report has been submitted to the Committee after the

investigation was finalized.

The conclusion of the committee that consists of Prof. Daya

Amarasekara, Prof. Madana Bandara, and Prof. (Mrs.) Prema

Podimenike was that “both the theses are sociological studies and it

seems similar sources and similar methods have been used but since the

topic of study, objective, data, content and the conclusions are not similar

and it can be concluded that there are no direct extracts that violates the

ethics of sociological research.”

05. Township programme

The Committee focused its attention to this programme, which is aimed

at providing a service to that area by connecting the university, village

and its community.

Recommendations

Submit the Committee its progress report, and a report of the 07 projects

that have been started by now, the amount of money that has been

allocated to them and details of the beneficiaries within one month.


The township programme proposed by the Sri Jayewardenepura

University has 37 sub projects under 6 main categories and the

Committee has been submitted a report by the letter of the Vice

Chancellor dated 25.05.2017 and No. අවි/ ක ෝප්/2017//1 including the

progress and the expected cost which is Rs.2,244/-.

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06. Research Aid

Inquiries were made on the allowances given to the tune of Rs.5,209,759/-

from 2007 to 2011 to 18 lecturers as research aid since reports have not been

obtained at the completion of those research or allowances have not been

refunded and 45 lecturers who obtained Rs.14,305,845/- within a period of

seven years from 2005-2012 have delayed their research reports from 01 year

to 08 years.

The Vice Chancellor stated that such officers enter into a bond when research

aid is given and if there is a breach of the bond that money will be deducted

from the salary of those who are responsible for the breach.

Recommendations

Send a detailed report on this to the Committee and to the Auditor General.


The Vice Chancellor in his letter dated 25.05.2017 and No. අවි/

ක ෝප්/2017//1 has informed the Committee that the following steps have

been taken to solve the aforesaid problem though the detailed report has not

been prepared.

i. That a report on the present situation of the researches conducted by

the lecturers who obtained research aid will be obtained as at

08.05.2017 and that the lecturers were made aware that the relevant

progress reports and final reports should be submitted and that action

will be taken to deduct the research aid from their salaries if they

failed to submit the research reports as per the agreements.

ii. Establish a research council to regulate the research activities in

universities and carry out follow ups efficiently through that

mechanism.

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University of Peradeniya


(This institution belongs to the Ministry of City Planning, Water Supply and Higher

Education from 28.12.2018)

Investigated date : 23 May 2017

Matters discussed

01. Money that should be charged from the lecturers who went

abroad

The Committee focused its attention to the current situation of

charging the money to the tune of Rs.119, 058, 568/- from 143

lecturers who breached the agreements and went abroad as of

31.12.2016.

The Vice Chancellor stated that the consent of the lecturers who

went abroad for studies and who breached the agreements should be

obtained to deduct that money from their EPF fund and since there

are problems pertaining to that issue and, as a remedial measure ,

action has been taken to get that consent when the agreement is

signed.

Recommendations

i. The Committee identified that the breach of agreements by

the lecturers is a problem common to most of the

Universities and the Committee recommended to the Vice

Chancellor of the Peradeniya University to submit proposals

to the Committee as to how such breach of agreements can

be prevented and this will be included in the report on

Universities that will be presented to Parliament once all the

Universities are summoned before the Committee.


The value of the bonds that should be charged from 58 lecturers who

79,430,802.95/- and the Vice Chancellor of the Peradeniya

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University in his letter dated 16.10.2017 and No.

IA/UP/COPE/2017/07 has informed the Committee that the

following action has been taken to charge the money.

i. By suing – Lawsuits have been filed against 08 lecturers.

ii. By paying installments – 19 lecturers are paying bonds in

installments.

iii. By ETF - The bond value can be covered once the EPF of 31

lecturers are charged to the university. (18 files with regard to

that have already been sent to the University Grants Commission

and action has been taken to send the remaining 13 files.)

But the fact remains that no proposal has been presented to the Committee

covering all the universities to prevent the breaching of such agreements.

02. Not having a proper methodology to confirm the attendance of

the academic staff and payment of salaries to them

The Committee paid its special attention for not having an

attendance list for the academic staff and not having proof as per

financial regulation no. 137 that Rs.998, 352, 538/- have been paid as

salaries and allowances in 2012 for 746 who are employed in the

staff, as per the section 03 of the chapter XX of the Establishment

Code of University.

The Vice Chairman of the University Grants Commission agreed to

further investigate this matter.

Recommendations

Present a report within a month to the Committee including the

courses of action that can be taken to ascertain the attendance of the

academic staff and paying of salaries to them without affecting the

dignity of those professions.


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The Vice Chancellor of the University of Peradeniya in his letter dated

30.06.2017 and No. IA/UP/COPE/2017/03 presented the following facts

to the Committee.

i. As per Financial Regulation 267, the monthly salary reports will be

directed to the relevant Heads of the Departments and get them to

obtain the signatures of academic and nonacademic staff confirming

that they obtained their salaries.

ii. Install fingerprint machines for the non-academic staff of the

University and mark the attendance of the non- academic staff

according to the finger print machines.

iii. The Vice Chairman of the University Grants Commission has failed

to submit a report that includes the measures that can be taken to

ascertain the attendance of the academic staff as requested by the

Committee in its recommendations.

03. Include the study allowances when the contributions to the EPF

and ETF are calculated

An additional amount of Rs. 129,138,230/- and Rs. 25,827,644/- has

been paid respectively from 1997 to April 2011 violating the circular

letter dated 18/07/2003 and No. PD/ I / NS/D.L/A078 of the Director

General (Budget) by calculating the study allowances when the

contributions to the EPF and ETF are calculated.

The Vice Chairman of the University Grants Commission stated that

as per the circular no. 1000 of the University Grants Commission

contributions from the allowances have been approved.

Recommendations

i. The Committee decided that since these funds are operative

under the Acts and those calculations should be done with

the advice given by the Labour Commissioner and the Vice

Chairman of the University Grants Commission was directed

to solve this problem by getting an interpretation from the

Labour Commissioner about total earnings.


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A detailed report of the facts on which the calculations are based when

the contributions to the EPF and ETF are calculated on the allowances,

has been submitted to the Committee along with a letter dated

19.06.2017 and No. HE/FIN/02/COPE/UOP- VOL- 1 of the Chairman of

the University Grants Commission.

04. Funds and fixed deposits

The Committee focused its attention to the following matters.

i. Maintaining 597 funds with a value of Rs.1370/-.

ii. Not providing any scholarship or a prize from the funds received

as donations.

iii. 24 research funds to the tune of Rs.7, 643, 048/- have not been

used for any research activity from 2013 to 2016 and remain

defunct.

iv. Investing Rs.12, 400, 000/- , which was given by the General

Treasury for research, in fixed deposits.

Recommendations

i. A recommendation was given to the Vice Chancellor of the

University to consider the following facts in the next board

meeting and report it to the Committee.

Study the need of funds for research and obtain and maintain the

funds accordingly.

Take action to change the system to provide donations to match

the present situations.


The following facts have been reported by the letter dated 16.10.2017 and No.

IA/UP/COPE/2017/07 of the Vice Chancellor of University of Peradeniya.

i. 597 funds with a value of Rs.1370 have been established as follows

and a study should be done on those funds and necessary action

should be taken to submit a complete report to the Board of Directors

if there are funds that are not in use.

Funds 139 - Rs.215, 173, 152.40

Funds 205 - Rs.982, 778, 818.47

Funds 253 - Rs.169, 765, 717.56

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ii. It has been reported that scholarships are not awarded when the

students are not eligible for the scholarships upon their failure to

meet the recommended laws and regulations and therefore the laws

and recommendations for the scholars have now been updated and

all the funds will be used to give scholarships from the year 2016.

iii. A report should be prepared including the funds in question and the

money amounting to Rs.7, 643, 048/- in other 24 accounts including

the other dormant accounts and it should be submitted to the Board

of Directors and on their recommendation, the relevant funds should

be sent to the donor or it should be deposited in to a development

fund of the University.

iv. The following details have been reported to the Committee on the

value of fixed deposits Rs.12, 400, 000/-.

Research Funding

Section

Rs.5,000,000.00 These research funds have been

utilized for research activities.

Research Fund in the

Faculty of Agriculture

Rs.7,000,000.00 It was reported that this

investment has been made from

the balance of the Research and

Funding Account in 2013 and it

has caused no harm to the

research activities.

Fund in the Faculty of

Medicine

Rs. 400,000.00 80% of the interest of the fund is

used to give scholarships to the

low income students in the faculty

of medicine and the balance 20%

has been reinvested in this fixed

deposit.

Rs.12,400,000.00

05. Difference between data on enrollment of students to universities

and enrollment of students to faculties

According to the data on student recruitments to the Universities

from the academic years 2011 to 2016 there is a difference of 719

between the number of students that has been approved and the

number of students that has been registered and there is a difference

of 513 between the number of students that has been enrolled and the

number of students registered for the faculties.

26


Some students do not enroll into the courses for which they have

been selected and there are many other reasons for that difference.

Recommendations

As a solution to this problem when the students are called action can be

taken to call, some more than the required number of students or any

other suitable system can be adopted.

The Committee pointed out that it is not appropriate to have differences between

the number of students who are enrolled into the universities and the number of

students who are enrolled into the faculties and further instructions were given to

maintain a data bank with accurate data to prevent such occurrences.


i. The Vice Chancellor of the University of Perdeniya in his letter

dated 16.10.2017 and No. IA/UP/COPE/2017/07 has submitted

to the Committee that owing to the reasons mentioned below

there can be certain differences between the number of students

in the faculties and the number of students in the registration

division and a system to update data has been introduced and this

difference can be minimized by comparing the data between the

faculties and registration division once in three months.

The students who register themselves for the courses

change the university and return to the same university

again to study.

Information with regard to the abolishing of studentship

is not received immediately.

Some students drop out from courses uninformed.

Delayed participation for the courses.

ii. Progress with regard to the courses of action that has been taken

on the recommendations of the Committee has not been reported.

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07. A professor who has been released for another post has been given

sabbatical leave along with all allowances and salaries within the

same period

A professor who has been released on no pay leave for a period of 03 years with

effect from 04.08.2014 for a director post in the post graduate institute of

agriculture, has been given sabbatical leave along with all the allowances and

salaries and he has obtained salaries from two institutions and therefore he has

been paid Rs.1, 523, 935/- additionally.

Recommendations

The following recommendations have been given to the Secretary to the Ministry

i. Take disciplinary action after conducting a preliminary investigation.

ii. Submit a report to the Committee including the courses of action that

should be taken to prevent such incidents.


The Vice Chancellor of the University of Peradeniya in his letter dated

30.06.2017 and No. IA/ UP/ COPE/2017/05 has informed the Committee that the

lecturer has made a request to pay back the money amounting to Rs.

2,185,944.92, that has been paid by the university, in installment basis and

according to the existing laws and regulations that request cannot be taken into

consideration and he has been informed to pay the total amount at once.

Further to that the Secretary to the Ministry of Higher Education and Highways

has appointed a three member committee in his letter dated 21.05.2017 and No.

HE/FIN/02/COPE/UOP- VOL- 1 ordering to give a report within 21 days as

recommended by the Committee but the Committee has not been reported

anything about the above investigation report of the disciplinary action taken

against the lecturer.

At the same time, as recommended by the Committee to the Secretary to the

Ministry, action has not been taken to submit the courses of action taken to

prevent such things in the future.

07. Staff Vacancies

There are 266 vacancies in the permanent academic staff as at 01 March

2017 and it has been revealed that an additional number of 213 have been

recruited to the academic staff on temporary and contract basis.

28


The Vice Chancellor stated that the main problems and mentioned that

though paper advertisements are published twice a year to recruit staff there

is shortage of qualified lecturers because private sector offers higher salaries,

private practices are more profitable, there are difficulties in admitting their

children to the schools in Kandy and in addition to that the selected doctors

who are willing to work have not been released by the Ministry of Health.

Recommendations

i. Submit a list of names of the doctors who have not been released by

the Ministry of Health with regard to all the universities.

ii. The Committee to have a discussion with the Secretary to the

Ministry about releasing those persons.


The Vice Chancellor of the University of Peradeniya has reported the above

facts to the Committee in his letter dated 16.10.2017 and No.IA/

UP/COPE/2017/07.

29



University of Colombo



28.12.2018)

Date of Inquiry: 04th

July 2017

Main matters discussed

01. Corporate plan

When the main performance criteria pertaining to year 2016 and reports of its

actual performance of the corporate plan of the University of Colombo for 2016-

2020 were compared, it was revealed that the progress was not sufficient.

Eg. Even though the expected number of research papers to be submitted by the

postgraduate students was 570, the actual progress was 44 making the difference

526.

The Vice Chancellor stated that there have been such fluctuations in some years

and even though the students have the ability to enhance the quality of their

researches, they find it difficult to publish their research papers at the

international level. Therefore, arrangements have been made to establish a

Research Development Centre with the approval of the Senate with which steps

would be taken to enhance the quality of the Research Papers.

02. Staff

While it was observed that there are 111 vacancies on the non-academic staff and

a sum of Rs.29, 406,870/= had been paid for 379 external lecturers in 2016. It

was inquired as to why steps were not taken to fill those vacancies.

The Vice Chancellor stated that the service of external lecturers had to be

obtained for certain subjects, as there were no qualified persons to be recruited as

lecturers despite applications being called for. The Vice chancellor also stated

that the recruitment procedure starts following the retirement of lecturers and that

too adds to this problem.

Recommendations

1. Sending a report stating the faculties where the 111 vacancies exist at present,

to the committee within a week.

30


Reporting the current status and progress

i. A detailed report consisting of the vacancies existing in each faculty as

demanded by the committee has been submitted to the committee by the letter of

the Vice Chancellor of the University of Colombo bearing No. Co/A/01 dated

16.08.2017. (Annexure 01)

ii. Further, the above letter has also stated that the approved cadre of the

University is 662 and 551 lecturers were in service as at 31,12,2016 and

accordingly the following steps have been taken to fill the remaining 111

vacancies.

Recruiting 21 persons to the Academic Staff from 01.07.2017 to

15.08.2017.

Publishing newspaper advertisements calling applications for a portion of

other vacancies.

Making arrangements in the future to publish newspaper advertisements

to fill the remaining vacancies.

03. Funds of the University

It was revealed that Universities have massive funds and that the University of

Colombo alone has a fund of around Rs.2 Million.

The Vice Chancellor stated that these funds are raised by the university and the

fees from the courses and research consultancy services are credited to this fund

and that they are used for developing infrastructure facilities and enhancing

welfare facilities of the students.

Recommendations

The Committee emphasized that the setting up of funds should be in compliance

with the provisions of the Universities Act and all funds should be merged with

the fund mentioned in the Act and that there can be Accounts for other subjects

within it.

04. New building of the Faculty of Graduate Studies

It was revealed that despite the University agreeing to pay a sum of Rs.2,

995,373/= to the Central Engineering Consultancy Bureau relating to overseeing

the construction activities of the new building of the faculty of Graduate Studies

in terms of the consultancy agreement, the Deputy Registrar of the faculty who

did not possess any expertise had been appointed to overseeing the new building

31



of the faculty of Graduate Studies and a sum of Rs.522,000 which is 78% of the

monthly salary had been paid in contravention of the provisions of the Public

Enterprise Circular No.95 of 41th June 1994 and the recommendations of the

Finance Committee for that. The Committee inquired about the present status of

that.

The Vice Chancellor stated that the said payment was terminated after discussing

with the audit committee and that the said officer was removed from that task and

an external consultant has been appointed and steps have been taken to prevent

such payments from being made in future.

Recommendations

Directing to arrive at a decision upon discussing with the Senate about the steps

to be taken against the officers responsible for this matter and informing the

committee about it.


It has been reported to the committee that this status was reported to the meeting

of the committee held on 16.08.2017 and that the Senate has decided to consider

the said allowance as an allowance paid for a service delivered by the said officer

outside the scope of his normal duties.

05. Financial status statement

Activities pertaining to obtaining deeds to establish the ownership of lands worth

of Rs .31, 485,140,000/= mentioned in the Financial Status statement had not

been done as at 29th June 2015 and that it was revealed that a private company

has been entrusted with the task of preparing plans for those lands by 19th June

2005.The committee inquired about the current status of that.

Recommendations

Directed to inform this to the Auditor General and report to the committee.


It has been reported to the committee that only the task of preparing plans had

been handed over to a private company subsequent to which the Commissioner

of lands of the Western Province had recommended to transfer the land to the

University.

32


06. Establishing a Limited company

It was revealed that a Limited Company in the form of a Business Center of the

Faculty of Science of the University (Colombo Science center) had been

established by using the staff of the University on the funds of the International

Development Association of the W.B without the approval of the Cabinet of

ministers and without being provided for by the Universities Act and the

Financial statements had made no revelation of that. The committee inquired as

to how they were audited.

The Vice Chancellor stated that the institution has been indicated in the accounts

of the University and it was receiving a Royalty fee and it has a Board of

directors and was established with the approval of the University Grants

Commission.

Recommendation

Directing the secretary to the Ministry to explore the possibility to establish

institutions of this nature in terms of the Universities Act.


Progress has not been reported by the secretary to the Ministry.

07. Sabbatical Leave

It has been revealed at the Audit that 03 lecturers who had obtained Sabbatical

leave had served in the Sir John Kothalawala Defense University and the

University of Peradeniya during that period on contract basis and those

institutions had paid an accumulated sum of Rs 3,068,793/= for those services.

Despite such payments being made, the University of Colombo, which is the

permanent place of work of those lecturers, too had paid a sum of Rs,7,202,882/=

as salaries and allowances for that period and accordingly the Treasury had paid

salaries and allowances for those 03 officers. The committee inquired as to how it

happened.

In response to that, the Vice Chancellor stated thus;

Sabbatical Leave means granting 01 year‟s fully paid leave after serving

for 07 years.

As this is earned leave the University should make a payment.

By obtaining leave, some lecturers serve in foreign Universities while

some others serve in local Universities.

33



The Establishments code of the University grants commission does not

contain a condition that the lecturers should conduct research

compulsorily during the period of Sabbatical leave.

The universities are vested with the power of making laws required by

the Universities, by the Act.

The Establishments code of the government is made use of when the

Establishments code of the University Grants commission does not have

provisions.

Recommendations

Sending a copy of the Establishment code of the University Grants Commission

approved by the University Grants Commission to the Committee and the

Auditor General.


A copy of the Establishments code of the University Grants Commission has

been submitted to the committee by the letter of the Vice Chancellor of the

University of Colombo dated 24.08.2017.

34


Annexure 01

35



36


37



University of Sabaragamuwa



28.12.2018)

Date of inquiry: 09th

August 2017

Matters discussed

01. Acting in contravention of the agreement to obtaining the security

service of the University

Making a payment of Rs,9,432,774/= to the Security company for a period of one

year from October 2011 to October 2012 in contravention of the conditions of the

Security service agreement.

It was admitted before the committee that it was not the legitimate method of

making that payment.

02. Water issue of the University

Even though it has been reported that 135 liters of water can be obtained at a

minute from the yet incomplete Tube Well constructed at a cost of

Rs.1,050,196/= near the Girls‟ hostel, the actual volume of water that could be

obtained was 20 liters. However, the Tube Well has not yet been made use of.

Recommendations

Making arrangements to use this Tube Well by repairing it as soon as possible.


Not reported.

03. Problems in enrolling students to the University

Even though the expected number of students to be registered in the University

during the last Academic year was 3556, there were 380 vacancies, which is 11%

of the number of students to be registered, after registering 3176 students.

The Chairman of the University Grants Commission stated that the situation in

question can be averted from next year.

38


04. Useless Expenses

A sum of Rs.1, 819,966 had been spent for preparing and implementing the

preliminary plan for constructing an Information Technology building for the

University in 2010. However, it had been abandoned later thus making it a

useless expenditure.

The Vice Chancellor stated that the necessity of the said building did not arise as

spacious buildings with sufficient Information Technology facilities for students

came up with structural changes being made to the constructions of the

University.

Recommendations

Submitting a detailed report about it to the Committee.

Reporting the current status and the progress

Not reported.

05. Administration of the staff

122 vacancies (16 of the 17 approved number of professors, 72 of the 270

approved number of lecturers, 34 of the 51 approved number of temporary

lecturers) on the Academic staff existed as at 31st May 2017 and a total of 175

vacancies (13 administrative posts, 10 academic assistant posts and 152 non-

academic posts) on the non-academic staff existed as at 31st May 2017.

The Vice Chancellor stated that the vacancies could not be filled as the financial

allocations were not received from the Treasury even though the human resource

was received in February 2017 and that he expected to make the recruitments in

2018.

06. Non-registering of Arrival and Departure by the officers of the

Academic staff

Even though every employee of the institution should register their arrival and

departure in terms of section 3.1 of chapter xx of the Establishments code for the

University Grants Commission and the Higher Education institutions, 259

officers on the Academic staff of the University had not acted in compliance with

those provisions.

39



Recommendations

The Vice Chancellor stated that a note is made after the relevant lecture and

salaries are paid in accordance with those details.

40


41



University of Ruhuna



28.12.2018)

Date of Inquiry: 21st September 2017

Matters subjected to discussion

01. Action Plan

As Action Plans for years 2011 to 2017 have not been prepared, the extent to

which activities relevant to the objectives set out in the Corporate Plan had been

fulfilled could not be examined.

Recommendations

i. Hand over a copy of the Action Plan approved for the year 2017 to

the Committee and the Auditor General.

Reporting current status and the progress

A copy of the approved Action Plan has not been presented to the Committee.

02. Paying an overdraft interest

Rs.1, 158, 514 in respect of two current accounts has been paid as overdraft

interest from January 2013 to December 2013 in contravention of Financial

Regulations 387.

Recommendations

The Committee instructed that strict compliance with Financial Regulations

should be ensured in future.


i. It has been reported that this situation occurred due to the university

going through a financial crisis and the non-receipt of provisions on

time from the treasury during the said period but overdraft interest

has not been paid at any time thereafter up to 31.12.2018.

42


03. Purchasing a vessel for the Faculty of Fisheries and Marine Sciences

and Technology

Manufacturing a vessel spending Rs.17, 338, 186/- without a proper feasibility

study and it remains anchored at the Galle Navy Camp without being put to use

and hiring boats from external individuals in the years 2015/2016 spending

Rs.460,000/- from a project fund.

The Dean stated that this boat was being used for practical studies of students and

that it was used successfully on 08 occasions in 2017 and that it could not be

launched without the approval of the Navy.

Recommendations

i. Handing over a report to the Committee within 02 weeks on the

number of times the vessel was used during the period from 2013 to

2017.


A report containing the number of times the vessel was used from 25.09.2014 to

30.08.2017 by the Faculty of Fisheries and Marine Sciences and Technology was

submitted to the Committee by the letter No. RU/IA/03/09 dated 09.11.2017 of

the Vice Chancellor.

04. Returning project money

i. Returning project funds of Specific Agreement on Research Co-

operation between The Swedish International Development

Cooperation Agency.

Out of Rs.45, 300, 469/- received under the Swedish project fund for the Faculty

of Fisheries and Marine Sciences and Technology, a sum of Rs.14, 595, 553/-

had been returned without being utilized.

The Vice Chancellor said that due to the delay in receiving money which resulted

in the suspension of the project, the money had to be returned.

ii. Out of Rs.22, 840, 222 received by the Ruhuna University from

Vrije University Belgium for the „Green Dyke‟ project, Rs.

8,901,555/- had been returned to that university without being

utilized.

43



The Vice Chancellor stated that the money had to be returned as a large sum of

money which was required for the construction of an exhibition centre (Coastal

Resource Awareness Centre) outside the university premises could not be

procured. Therefore, the above items had been displayed in a hired location for a

period of one year and subsequently they had been installed at the Faculty of

Fisheries and Marine Sciences and Technology.


The Committee had been informed that the project was originally planned for 05

years and the Coastal Resource Awareness Centre which was one of the

important components of the project could not be established as envisaged due to

problems arose in finding required buildings and therefore the project period was

extended by 06 months and the necessary activities were completed by a group

Belgian scientists using an alternative method and thus the amount of money

received for the project was unspent.

05. Violation of contracts and bonds by lecturers who went abroad

As a result of this, an amount totaling Rs.22, 640, 929/= was to be recovered

from 18 lecturers by the end of the year under review.

The Vice Chancellor stated that the inclination towards the violation of bonds

had seen a decline as bonds had been recovered from many as of now.


An explanation on the measures taken by the University in respect of these

lecturers has been presented to the Committee.

06. Not utilizing project funds

From the impress of Rs.150, 369, 330/- given to the University in November

2010 by the Higher Education for Twenty First Century (HETC),

Rs.51, 195, 765/= or 34% had not been utilized when the project was completed

on 30 June 2016.

He Vice Chancellor stated that the losses were incurred in carrying out the

project and added that the project had to be abandoned to prevent further losses

by continuing with the project.

44


45



University of Kelaniya



28.12.2018)

Date of Inquiry: 22nd

September 2017


01. Vacancies in the academic staff

Existence of ninety eight (98) vacancies in the academic staff of 558

members.

Notwithstanding such vacancies, approving various types of leave

for 89 members of the academic staff

The committee questioned as to how academic activities were being conducted

against such a backdrop.

The Vice Chancellor stated that the 27 out of 98 vacancies were professor

vacancies, which would be filled through promotions. He added that vacancies

invariably would occur since several succeeding years were taken into account in

filling vacancies and details on vacancies were considered only once a year.

The Vice Chancellor further pointed out that no restrictions whatsoever were

placed in granting academic leave as priority was accorded to the staff

development and academic activities were being carried out despite such

difficulties by procuring the services of temporary lecturers and visiting lecturers.


The committee was informed by letter No.UK/IA/COPE/2017 and dated

01.02.2018 of the Vice Chancellor of the Kelaniya university that action was

being pursued to fill the above vacancies.

02. Not crediting the course fees charged from foreign students of the

Medical Faculty, Ragama to the income of the University

The inquired about the above matter and the Vice Chancellor stated that such

action was taken pursuant to the letter No. UGC/C//PS/60 dated 18/10/2000 of

the Chairman of the University Grants Commission.

46


The Committee pointed out that the said letter did not contain such instructions

and that the University could only maintain one fund in terms of the relevant Act

and noted that maintaining other funds was in this manner was problematic.

Recommendations

Taking action to credit all receipts to one single fund or taking measures to have

legal provisions formulated to account the money received from faculties under

the existing system.

03. Obtaining internet facilities from Lanka Education and Research

Network (LEARN) spending Rs.43 million in 2016

The Committee discussed the obtaining of internet facilities from the above

company at a very high cost. The committee was of the opinion that this

company established and managed by the University Grants Commission

maintains a high profit percentage in supplying its services.

Recommendations

i. Conduct a feasibility study with the assistance of the Auditor General

regarding procuring services of this company and informing the

committee.

ii. Exploring the possibility of obtaining this service with a lower profit

percentage from this company and reporting to the committee.


Progress has not been reported.

47



South Eastern University of Sri Lanka



28.12.2018)


November 2017


01. Granting promotions and service extensions to lecturers who have not

completed postgraduate degrees

The Committee noted that though the granting of promotions and service

extensions to lecturers who had not completed their postgraduate degrees for a

period of 8 years had been discussed at the COPE meeting held on 21.09.2012,

the situation had not been corrected even up to now.

The Vice Chancellor and the Chairman of the UGC made a clarification in this

connection and the following matters became known.

The relevant lecturers had been recruited temporarily.

Postgraduate degrees could not be completed within the stipulated period

due to the war situation prevailed in the country at the time.

The relevant lecturers had to be confirmed in service without the

completion of postgraduate degree due to the shortage of lecturers in the

university.

The committee also queried about the termination of service of only 2 lecturers

out of 10.

The Vice Chancellor said that the services of the two relevant lecturers were

terminated on the advice of the Attorney General.

Recommendations

Conducting an inquiry regarding the basis on which the service of 08 lecturers

were not terminated and submitting a report to the committee within 02 weeks.



48


02. Preparing the masterplan of the University

The committee paid its attention to the preparation of the masterplan of the

university and the following matters came to light.

An engineering company of the United States had been paid Rs.16.87

Million for this purpose in 2007.

The report received by the university in respect of the relevant task

cannot be accepted as a report.

Payment of Rs.7.2 million to another consultancy firm for the

preparation of a new master plan despite the aforesaid situation.

The Committee noted that questions in this regard had also been raised at the

COPE meeting held on 21.09.2012 and though a report had been submitted to the

Committee as per the recommendations made therein, essential matters had not

been included in that report.

Recommendations

Submission of a report prepared with the focus on the following matters within a

month to the Committee.

What are the other consultancy companies which submitted quotations

for this transaction?

What is the basis for the selection of the engineering company of the

United States for the preparation of the master plan?

Are the services provided by them commensurate with the money paid?



03. Board of Survey

The Committee took notice of the Board of Survey conducted in the university in

the year 2013 and the following matters came to light.

A board of survey had not been conducted from 1995 to 2013.

A deficiency of 2477 fixed assets items amounting to a total cost of

Rs.37 million being documented.

Without looking into the reason for such a deficiency, the cost of the said

fixed assets items being written off from books.

49



The Vice Chancellor stated that the items were written off from account books

upon a decision of the Governing Council and added that the board of survey had

been conducted annually from the year 2013.

Recommendations

I. Forwarding the decision taken by the Governing Council to write off the

cost of fixed assets from account books.

II. Forwarding a confirmation to the Committee to the effect that a board of

survey will be conducted annually.


I. The report relevant to No. (i) above has been submitted to the

Committee. (Annex 02)

II. Documents confirming that the board of survey is conducted annually

have been submitted to the Committee.

04. Language Laboratory

The Committee paid its attention regarding the non-use up to now of the

language laboratory established at the faculty of Arts and Culture in the year

2007 at a cost of Rs.8.1 million.

The Vice Chancellor made a clarification in this connection during which the

following matters transpired.

It had been used in the year 2007

During the period from 2010-2012, the computers in the language

laboratory became unusable.

The computers should be disposed of following a board of survey

Since there are several language laboratories in the university, a need for

this laboratory does not arise at present

It is expected to use the relevant premises as a lecture hall or for some

other purpose.

The Committee voiced its displeasure over the installation of a Network

Point at a cost of Rs.2.1 million in the year 2010 in spite the decision not to

use it any longer.

50


05. Upgrading roads for an administrative building

The Committee noted that in laying asphalt for upgrading roads for an

administrative building, the relevant contractor had charged Rs.14,100/- for a

metric ton and the same contractor had charged only Rs.12,000/- for laying

asphalt for the development of a road of another faculty during the same period.

The Vice Chancellor said that the charges had been different, as the activity had

been carried out in the Oluwil and Sammanturai premises.

Recommendations

Recommending the Auditor General to submit a report to the committee having

looked into these two contracts separately.



06. Irregularities of former Vice Chancellor

The Committee paid its attention to several irregularities committed by former

Vice Chancellor Dr. S.M.M. Ismail in the university and the Committee inquired

about the current relation between him and the university.

The Vice Chancellor said that though he served as a lecturer of the University he

had been released from the service and that he currently functioned as the

Chairman of Laksala.

Recommendations

A preliminary disciplinary inquiry on Dr. S.M.M. Ismail is conducted by the

Ministry of Higher Education and Highways and making the Committee aware

within a month.



51



Annexure 02

52


53



54


55



Eastern University of Sri Lanka


(This institution belongs to the Ministry of City Planning, Water Supply and Higher Education

from 28.12.2018)

Date of Investigation- 22nd November 2017

Matters discussed

01. Staff vacancies

The Chairman of the committee made the following observations with

pertinence to the current staff vacancies of the institution.

101 vacancies exist in the academic cadre and it is 30% as a

percentage.

Substantial numbers of vacancies exist in the positions of professor,

associate professor, and senior lecturer.

Sabbatical leave had been granted to 07 lecturers in spite of the

prevailing vacancies

The need to introduce a methodology to attract qualified lecturers to

the university.

Here, the following submissions were made by the chairman of the University

Grants Commission.

There is no possibility to make abrupt recruitments owing to the

dearth of qualified academic staff and the same situation is prevalent

in the entire university system.

To address this, a new plan is being prepared to facilitate the lecturers

including the trainee lecturers enabling them to get the post graduate

qualifications and other educational qualifications and to deploy them

for the future vacancies.

However, external recruitments cannot be done to fill the vacancies

that arise in the positions like professors since a considerable period

56


of time is required to achieve the qualifications required for such a

post and since they should be generated within the university system

itself.

Also, the following ideas were put forward by the Vice chancellor of the

University.

Newspaper advertisements were published to fill the above vacancies

even recently.

Qualified persons had not applied in response to the said

advertisements, and

Action will be taken in future to avoid this situation.

The chairman of the University Grants Commission made the

following submissions with pertinence to this matter.

A number of steps have to be completed based on the seniority of a

lecturer posit ion, in order to become a professor in a university.

There is a specific methodology of application and there is no

possibility to directly recruit a professor to a faculty.

Further, there is a difficulty in keeping them in the university without

the government sponsorship, in spite of the fact that special

allowances are paid to them.

Recommendations

To enlighten the National Budget Department to present a report to the

committee on the possibility to formulate a special allowance system in order to

attract academic staff to universities of this nature.

Reporting the current situation and the progress

It has not been reported.

57



02. Purchasing Medical equipment- 2012

The attention of the Committee was drawn towards the following matters related

to the purchase of medical equipment with a value of Rs.13 million in the year

2012, without following a proper procurement procedure.

In the previous committee meeting held on 07th March, 2013, it

has been directed to take disciplinary action against the officers

who got involved in the above matter.

An investigation committee to investigate this matter had been

appointed by the university in the year 2013.

The university has not hitherto implemented the

recommendations given by the said committee.

The entire responsibility pertaining to this purchase is on the

procurement committee.

Action had not been taken to appoint a technical evaluation

committee pertaining to these purchases.

At this point the following explanations were made to the committee by the Vice

Chancellor of the University.

All these medical equipment are already in use.

Out of the items purchased, only one item is outside the order.

A sum of Rs.2.8 million had been withheld without releasing to

the supplier.

There, the particular supplier had opted to take legal measures

with a view to recovering the dues.

This situation is a result of the dearth of qualified suppliers.

Recommendations

To take measures to provide a report to the committee within a period of one

month on the measures that will be taken to follow the recommendations given

by the investigation committee.

58



This has been reported to the committee through letter number

EUSL/IAD/COPE-2017/J:01 dated 01.05.2018 by the vice chancellor of the

Eastern University of Sri Lanka. (Annexure 03)

03. Allowances paid to the External lecturers

27 Lecturers out of those in the permanent service of the university had been

appointed as external lecturers, and a payment of Rs.696, 250/= had been paid to

these lecturers in the year 2016.

Here, the chairman of the university Grants Commission made the following

submissions.

There is a possibility to appoint the lecturers possessing the

required qualifications and experience serving in a particular

faculty of a university as external lecturers in another faculty of

the same university,

These kinds of appointments are usually done in the entire

university system.

Recommendations

Informing the secretary to the Ministry of Higher Education and Highways to

make the required arrangements to do the relevant amendments pertaining to this

matter as per section 26.5 of chapter III of the Establishment Code for the

University Grants Commission and the Higher Education Institutes.



04. Granting study leave

Attention of the committee was drawn towards the following matters

related to the payment of Rs.9.2 million paid to one lecturer to follow a course

in the University of Bedfordshire under the Master of Philosophy degree

course.

The relevant officer had been on probation at the particular time.

59



He has not completed his master of Philosophy degree even after the

expiration of the relevant time period.

The service of the said lecturer had been terminated by the vice

chancellor without any approval from the Senate.

The university has accepted a school principal and a Samurdhi Manager,

as guarantors for this lecturer.

Attention to be paid towards the legal measures that have been taken by

the university in this regard.

Of the manner in which the relevant penalty can be charged from him in

case of any breach of agreement related to this incident.

Here, the following submissions were made by the vice chancellor of the

university.

The amount of Rs.9.2 million granted to this person has been shared by

the university, University Grants Commission and another institute(

HETC fund)

This person has reported for duty in the university at the expiration of the

study leave period of 39 months granted to him.

He was interdicted owing to his inability in completing the study course

within the specific time.

Legal measures had been taken by this person against the University for

the Interdiction.

He has been reinstated temporarily at the moment.

He has completed the course by now and he will be reinstated in his

service once the results are released.

Recommendations

To present the following reports to the committee within a period of one month;

i. A complete report on this matter including the institutions from

which the above lecturer had obtained funds of Rs.9.2 million for

the study course and the amounts obtained from each institution.

ii. The follow up report pertaining to the matter.


A report on this matter has been submitted to the Committee. (Annexure 04)

60


05. Idle Assets

79 Computers and 02 servers that has been purchased in the year 2016 incurring

an expense of Rs.7457720/= had hither to remained idle.

The vice chancellor of the university stated that the computers and the

servers which had been ordered were received on time but this problem

was resulted by the delay in procuring the infrastructure including the

furniture required for installation and the delay in computer networking

activities. It was also stated that all these equipment are in use at the

moment.

Recommendations

To present a report including the explanations on this matter to the

committee within one month.


A report on this matter has been submitted to the Committee.

(Annexure 05)

06. Outstanding Loan Balances

There is an outstanding loan balance of Rs.10124 628/= which should be

recovered from 222 members of the academic and non- academic staff

who have vacated and retired from their positions.

Here, the following submissions were made by the vice chancellor of the

university pertaining to the matter

Some officers out of this number have already retired

Some officers have joined other universities for service.

A certain amount of the outstanding loans has already been

recovered.

Recommendations

To present a report including the following points to the committee

within a month.

61



Number of reminders that have been sent to these 222 officers

asking to settle the outstanding loans during the specific period.

Number of occasions on which the Ministry of Finance has

informed the university on this matter;

Number of officers who have completely settled these loans;

Number of persons from whom the outstanding loans are to be

further recovered;

Report including the details of the persons who have got

transferred to other universities but with outstanding loan

balances to be recovered;

The number of persons who have got retired.

Number of persons against whom legal measures have been

taken.


A report on this matter has been submitted to the Committee.

62


Annexure 03

63



64


Annexure 04

65



66


67



Annexure 05

68


69



University of Jaffna



from 28.12.2018)

Date of Investigation - 23rd November 2017

Matters discussed

01. Staff Vacancies

The committee paid its attention towards the 744 vacancies which

existed in the academic and non-academic staff of the university.

The vice chancellor of the university stated that although newspaper

advertisements had been published several times to fill these vacancies,

qualified officers have not applied for the said posts owing to the

substandard facilitation in the university.

Recommendations

i. It was recommended to present a report, to the committee within a

period of six months by the university grants commission, having

intervened to and investigated this matter.


i. The recommended report has not been presented by the

University grants commission.

02. Special Funds

The committee inquired about not presenting to the auditor general, the detailed

reports on maintaining funds with a value of Rs.258436915/= as long-term

investment in the financial statements of 2016 without obtaining the approval of

the General Treasury.

Recommendations

To present a report on the utilization of the interests of this Fund to the

committee within a period of one month.

70



The recommended report has not been presented.

03. Accounts receivable and accounts payable

It was inquired about the failure to recover the employee loan balance of

Rs.1318007/= which had remained for 07 years.

Recommendations

It was recommended to study about this matter and to report to the Auditor

general


An explanation on the current progress on the matter has been sent to the

committee through letter number UJ/IA/08 dated 22.02.2018 of the Vice

chancellor of the University of Jaffna.

04. Research Assistance

A sum of Rs.58335439/= had been paid from the year 2014 to 2017 as research

assistance to 138 academic staff members and the committee inquired about the

extremely poor progress of the research completion.

Recommendations

To present a report to the committee within one month on the research conducted

locally and internationally by the university during the last 05 years.



05. Research Allowances

An amount of Rs.69672787/= subject to a percentage of 35% out of the basic

salary of 33 members of the academic staff, had been paid as research allowance

within the year 2016 without obtaining the final research reports.

71



Recommendations

To present a detailed report on this matter to the committee within a period of

one month.



06. Inactive, Obsolete and Slow moving Assets.

Inactive, Obsolete and Slow moving Assets of Rs.234, 975/=, Rs.1, 320, 659/=

and Rs.325, 409/= respectively have not been utilized productively.

Recommendations

To present a detailed report on the utilization of these assets to the committee

within a period of one month.


i. It has not been reported.

72


73



Wayamba University of Sri Lanka



from 28.12.2018)

Date of Investigation - 28th November 2017

Matters discussed

01. Academic Staff

21 members of the academic staff had obtained study leave and one

lecturer had been on sabbatical leave as at 15th December 2017, in spite

of the 56 vacancies that existed in the academic cadre. A sum of

Rs.3956583/= had been paid for the services obtained from 61 external

lecturers and 13 external advisors in the year 2016.

The vice chancellor stated the following in this regard.

Action is being taken with pertinence to filling these vacancies

in the academic cadre.

Interviews will be conducted after publishing the newspaper

advertisements.

The assistance of the external lecturers is obtained to conduct

the academic work without any hindrance until the recruitments

are done.

Arrangements have been made to recruit lecturers on temporary

and contract basis owing to the difficulty encountered in finding

qualified people for certain subjects.

Recommendations

To present a report including the following points to the committee within a

month.

The number of external lecturers whose services had been

obtained during the past two years.

74


The number of instances in which interviews had been held

to recruit academic staff.

The number of participants in the interviews.

The number recruited and the number remaining in the

university.

The number of lecturers who have obtained study leave.


This report has been sent to the committee through letter number

WUSL/IA/COPE/2017/03 dated 20.06.2018 of the Vice chancellor of the

Wayamba University. (Annexure 06)

02. Incomplete contracts

It was observed that a sum of Rs.10577621/= which had to be recovered

from the contractor for the incomplete work had not been recovered.

The vice chancellor stated that the value of all the performance bonds

relevant to this contract had been deducted from the sum that should be

paid to him up to the date of termination of work, and that no contract

has been awarded to him thereafter.

Recommendations

To send a complete report on the procedure followed to award this contract to the

committee within two months.


A report in this regard has been sent to the committee. (Annexure 07)

03. Research Reports

The research period has expired on 31.12.2016, however, a sum of

Rs.2417815/= had been paid as research allowance in the years 2014,2015

and 2016 to 07 members of the academic cadre in spite of the fact that they

had not submitted the final research reports and that they had suspended the

research on the way.

75



The following submissions were made by the Vice chancellor in this regard.

Any member of the academic or non-academic staff can obtain a

certain percentage out of the salary as a research allowance having

submitted a research proposal as per the circular issued by the

government,

The research has to be completed within the specific time,

This same method is adopted in all the universities,

The officers applying for research allowances for the ensuing year

should complete the research relevant to the previous year and

should attach the copies of the research reports of the previous year

to the application.

Recommendations

To present a report to the committee including the methodology

adopted (with the method adopted for performance assessment) in

making the research allowance payments to the 07 particular

officers.


The recommended report has been presented. (Annexure 08)

04. Making use of the Research reports

Inquiring the manner in which the research reports presented by the

university student community during the past period had contributed

towards the political, social and economic processes of Sri Lanka.

The vice chancellor made the following points here.

Research on cashew is done by the lecturers of the faculty of

agriculture in collaboration with the Cashew Research Institute,

08 varieties of grafted cashew have been introduced by now

and there is a good contribution to the country,

76


Research is done on the cashew related products and these

products are introduced to the market,

The wedge grafting was the only method adopted initially but

now successful results have been gained through bud grafting

as well.

The university tops the others in this field and the Research

section and specially the Patent section has developed promptly.

Recommendations

i. To present a report to the committee within one month including the

following information pertaining to the period of last three years.

Details pertaining to the research conducted

Details of the fields selected for research

Names and other information about the persons who conducted research.

ii. Formulating a methodology to raise the awareness of the people on

the research that are productive to the country.


i. The recommended report has been presented to the committee.

ii. A summary report on the progress achieved by the cashew industry

as a result of the research conducted as a joint venture by the

Wayamba University of Sri Lanka and the Cashew Corporation has

been presented. (Annexure 09)

05. Constructing the building of the Faculty of Applied Sciences

It was observed that a loss has incurred owing to this contract, and the

committee inquired about the contractor and the officer who authorized

the payments.

The vice chancellor made the following points here.

The contractor was Anthony Builders,

77



He has undertaken several contracts of the Wayamba University

of Sri Lanka,

This contract had been estimated at a value of Rs.327 million,

The lowest tender value was Rs.348 million and as this value

exceeded the estimated value, a request was made by the

Technical evaluation committee and the Procurement

committee from the contractor asking to reduce the area.

Accordingly the area was reduced,

This has been the first contract awarded under the Design &

Guild system,

A BOQ is not available as per its nature,

The contractor has completed an extent exceeding the extent

agreed,

An extent of 7290 m2

and an extent of 415 m

2 as a car park,

has been completed,

Accordingly, an extent of 1000m2 approximately has been

completed additionally,

An area of 7290 m2 has been completed so far.

Recommendations

To present a report within two months having conducted a detailed audit inquiry

through the Auditor General‟s Department on the items for which the payments

had been made,


A report on this matter is included on page numbers 58 and 59 of the audit

report in annexure number 12.

78


Annexure 06

79



Annexure 07

80


Annexure 08

81



82


Annexure 09

83



84


85



Uva wellassa University



28.12.2018)


November 2017

Matters Discussed

01. Developing a computer system for the general administration of the

university

Writing off an advance payment of 736,000 rupees paid on behalf of the agreed

amount in this regard, as an expense in the year 2013.

Recommendation

Sending a report to the Committee pointing out the reasons for writing off the

aforesaid amount.


An explanation has been sent to the Committee in this regard by the Secretary to

the Ministry of Higher Education and Cultural Affairs through the letter No.

HE/FIN /02/COPE-UWU-Vol-1 dated 31.05.2018

02. Contravening Bond and Contract Agreements

Even though a lady lecturer , from a whom an amount of 5,801,835 rupees was

to be recovered due to the fact of contravening the bond and the contract

agreement, had been informed to pay the said amount in 24 installments, it has

not been recovered even after the lapse of almost 03 years since the

contravention of the agreement .

The Vice Chancellor stated that action will be taken to file a case against her if

this amount of money is not repaid within a period of another three months.

Recommendation

Informing this to the foreign university where the aforesaid lecturer is employed

and sending a letter of demand to her.

86


Reporting the current situation and progress

The Secretary to the Ministry has informed the Committee that the lecturer

concerned is taking action to repay this amount of money in installments.

03. Purchasing fire proof safes

Five fire proof safes worth 322,560 rupees , which had been purchased on 30th

June 2010 ,had remained in the warehouse without being used until 31st May

2011 and the said five safes have been used only after seven years since they

were purchased and disciplinary action has not been completed against the

officers who are responsible for misplacing the keys of four safes out of those

safes.

Recommendation

(i) Non availability of an operational manual becomes the main reason

for such incidents and hence the operational manual should be

prepared with immediate effect and all purchases of the university

should be made based on the said operational manual.

(ii) Conducting a disciplinary inquiry against the officer who is

responsible for the misplacement of the keys and action should be

taken against him as per the aforesaid disciplinary inquiry.


It has been informed to the Committee that arrangements have been

made to conduct a disciplinary inquiry against the officers who are

responsible for the misplacement of the keys of the fire proof safes.

04. Paying a surcharge to the Employees Provident Fund

The contributions due for the period from the year 2006 up to 2011 have not

been paid on the due date and as a result of it ,a surcharge of 1,715,562 rupees

has been paid to the Employees Provident Fund and action has not been taken in

that regard until 06th November 2017 and the amount of 1,399,116 rupees, the

contribution of the employees to the fund, which is 8% of their salaries, has

been paid from the University Fund.

Recommendation

A detailed report, which includes all the facts regarding this matter, should be

handed over to the Committee and the Auditor General.

87




A detailed report has been sent to the Committee providing explanations in this

regard and it has been informed to the Committee that action has been taken to

pay the arrears of the contributions to the Employees Provident Fund as per the

decisions of the Governing Council of the University, and the contribution for the

Employees Provident Fund has been duly paid on behalf of the staff that has been

recruited to the university by now.

05. Internal Audit

A permanent Senior Assistant Internal Auditor had not been appointed even by

15th November 2017 and the Chief Internal Auditor of Palmyra Development

Board, Mr. R.Rameshwaran, has been appointed on contract basis.

The Chairman of the University Grants Commission stated that the Ministry of

Finance has been informed through the university about the fact of appointing a

permanent auditor.

Recommendation

i. A report which includes all the recommendations in regard to this

matter should be sent to the Treasury.

ii. Making an inquiry in regard to the fact whether the approval of the

Palmyra Development Board had been obtained for appointing its

chief internal auditor as the internal auditor of the university.


The Chief Internal auditor of Palmyra Development Board has been appointed

for carrying out the audit activities of this university on assignment basis and a

letter has been submitted to the Committee to the effect that the Palmyra

Development Board has no objection in that regard. (Annex 10)

88


Annexure 10

89



The Open University of Sri Lanka

(Ministry of Higher Education and cultural Affairs)

(This institution belongs to the Ministry of City Planning, Water Supply and Higher

Education from 28.12.2018)


March 2018

Matters Discussed

01. Performance of the University

The expected objectives of the Distance Education Modernization Project that

was commenced by the Ministry of Education in the year 2003 under a foreign

loan aid of 60 million US dollars (9000 million rupees ) obtained from the Asian

Development Bank have not been achieved .

Recommendation

A complete report of this should be submitted to the Committee within a period

of one month.


Has not been reported.

02. Internal Audit division

The vacancy of the position of Senior Assistant Internal Auditor which fell

vacant in September 2017 has not yet been filled.

Recommendation

This matter should be inquired from the University Grants Commission and a

report d should be submitted to the Committee within a period of one month.


An explanation in regard to the current situation has been submitted to the

Committee through the letter dated 14.05.2018 sent by the Vice Chancellor of the

Open University of Sri Lanka.

03. Course manuals printed in the university

The quality of the course manuals printed in the Press of the University has

decreased and due to that reason the aforesaid books have to be printed again. It

was inquired about the printing activities of this press even in the meeting of the

90


Cope held on 22.08. 2007 and it is mentioned in the minutes of the aforesaid

meeting of the Cope as follows. The Committee inquired about “the fact of

sending five lorry loads of printed books that have been removed from use in

large numbers to the paper company at Walachchena” and it also inquired about

“the fact of another huge quantity of books being left in the stores.”

Recommendation

i. Conducting a site examination about the activities of the press.

ii. Submitting a complete report after examining the whole

process of printing books

iii. Submitting a set of proposals to regulate this process in

consultation with the Vice Chancellor to the Committee and the

Auditor General within a period of one month.


Though it has been informed through the letter dated 07.06.2018 sent by the Vice

Chancellor that a three member committee has been appointed to look into the

problems prevailing in the press of the open university of Sri Lanka, the progress

of it has not yet been reported

04. Not signing the attendance and the departure by the academic staff,

as is mentioned in the Establishment Code of the Universities

Even though instructions were given even in the meeting of the Committee on

Public Enterprises held on 03.11.2014 to prepare a paper which contains

policy decisions , in consultation with the relevant parties , the said policy paper

has not yet been submitted to the Committee.

Recommendation

i. Submitting a report to the Committee including the circumstances

that can be made a basis to evaluate the performance of the

teachers

ii. Preparing a Performance Based Evaluation System for university

teachers


The Self Evaluation Report which is used to evaluate the performance of the

academic staff has been submitted to the Committee along with a report

which includes the norms to be followed by the academic staff.

91



Rajarata University



28.12.2018)

Date of Inquiry: 21st March 2018

Matters discussed

01. The fact that a lecturer of the university has acted as a supplier

The Committee inquired about the facts of a lecturer of the university had been

engaged as a supplier to transport water to the hostels of the students using

bowsers in the year 2015 and the prices of the lecturer remained at a higher level

when compared with the prices at which this service was obtained at competitive

prices in the year 2016 and the fact that an agreement had not been entered into

with the lecturer.

The Vice Chancellor of the university stated that the aforesaid course of action

was taken as a prompt step to distribute water at a time when the water pumping

station was dysfunctional.

Recommendation

i. The Committee pointed out that ineffectiveness of the audit activities

of the university was the reason for the continuation of this situation

and stated that special action should be taken to look into the

problem of the post of internal auditor remaining vacant and address

that problem.

ii. An investigation should be carried out in regard to the process

adopted by the university to obtain water and submit the report of

within a period of one month.


The aforesaid investigation has been carried out and the report of it has been

submitted to the Committee through the letter No RTJ/ IA/COPE 2018/2

dated 26.04.2018 sent by the Vice Chancellor of the University of Rajarata.

92


02. Disposal of the reusable items

As per the reports of the survey of goods ,it has been revealed that 220 beds , 64

steel cupboards and 112 wood chairs ,all of which are reusable, had been sold at

a price of 291,100 rupees and 436 wooden beds ,80 steel cupboards and 89 towel

racks have been purchased in the same year at a cost of 14,911,827 rupees.

Recommendation

Looking into this and submitting a report of it within a period of one month.


Recommended report has been submitted to the committee.

93



Rajarata University along with

State Engineering Corporation of Sri Lanka


(These institutions belong to the Ministry of City Planning, Water Supply and Higher Education

and Ministry of Housing, Construction and Cultural Affairs from 28.12.2018)

Date investigated – 3rd

April 2018

Facts discussed

01. Building a parapet wall around official residence of the Vice

Chancellor of the University

Assigning the contract with other bidder rejecting the lowest bidder.

University changing the estimate which was submitted by the State Engineering

Corporation without the knowledge of State Engineering Corporation.

Aforementioned facts were questioned by the committee and it was revealed

that the university had changed the estimate which was done by the State

Engineering Corporation charging a higher price. And the Vice chancellor stated

that it was due to the technical issues which were there in aforesaid estimate.

The committee pointed out that aforesaid situation is bad on the standards of the

State Engineering Corporation.

Recommendations

i. Reporting whether there was a necessity for the University to

modify certain rates which were included in the estimate of the

State Engineering Corporation ,

ii. Preparing a proper mechanism not to have errors in regard to the

estimates of this nature, in time to come.

iii. Submitting the estimate to the committee incorporating basic

adjustments provided by the State Engineering Corporation, within a

month period.

iv. Reporting to the committee, within a period of month. of the effect

caused to the estimate, due to the adjustment made by the university

regarding certain rates

Current situation and progress

Recommended report has been submitted to the committee.

94


95



University of Visual and Performing Arts



28.12.2018)

Date investigated; 22nd

march 2018

Facts discussed

01. Vacancies of the staff

The committee inquired on providing more opportunities to external lecturers

while having a dearth of Internal lecturers and increase of the payment for the

external lecturers year by year .

Vice chancellor submitted his views and following facts were revealed.

More external lecturers have been appointed as the University has been

expanded to 3 faculties and 22 Departments.

Recruitments are being carried out to fill the existing vacancies and

to fix the previous non availability of a proper mechanism of

calculating working Hours .

The disciplinary procedures have been initiated in regard to the

malpractices which had occurred.

That the exact number of working hours in every month has been

notified by now.

A proper procedure has been put in place to calculate it since January

2018.

Recommendations

i. Providing correct cadre composition to the Auditor General‟s

Department.

ii. A report compiled containing the comparison of attendance of six

months starting from January 2017 and attendance of six months starting

from 2018.

The current situation and the progress

Both reports on correct staff composition and the attendance of the internal

lecturers of 3 faculties of the University has been submitted to the committee

with the letter HE/FIN/02/COPE-RUH-Vol-1 of Secretary to the Ministry of

Higher Education, dated 22.05.2019.

96


Payment for the Vice chancellors.

The committee observed that huge amounts of money had been paid to the Vice

chancellor by the University in various occasions.

The water and electricity bills of the private residence - Rs.536, 215/-

(Feb-Dec 2014)

Salary for a lady servant of laborer grade - Rs.653, 438/-

(Feb-Dec 2014)

Bills – security services - Rs.1,260,147/-

(Feb-Dec 2014)

The Vice Chancellor payments to work in open and distance education

center - Rs.75, 000/-

(March -Dec 2012)

Supervising affairs and travelling - Rs.144, 000/-

(Jan-Dec 2012)

Recommendations

i. Taking measures in accordance with the opinion of the Attorney

General in regard to the matter of Vice chancellor residence.

ii. Submitting a report to the committee including a criterion in regard

to fixing a ceiling of payments to the Vice chancellors.


The current progress in regard to the matter pertaining to (i) had been

submitted to the committee by the letter UVP/LE?MR/01 of the Vice

chancellor , University of Visual and performing Arts dated 09.11.2018 .

02. Lanka Education and research network (LEARN )

The committee observed that the university had paid Rs.16, 492,945 in 2015 ,

Rs.18 , 759 ,955 in 2016 , and Rs.16, 603, 133 in 20 17 up to 30th September, to

LEARN institute to obtain Internet facilities .

The committee was in the opinion that a special Audit query should be conducted

on LEARN institute to probe whether monthly payments to the institutions are

reasonable or not.

Recommendations

Conducting a special Audit inquiry on LEARN institute within a month and

reporting to the committee.

97




Pages 48 and 49 of audit report (Annexure 12), provides a clarification on

this matter.

03. 7 year sabbatical leave

The committee inquired whether there is a circular making provisions with

regard to taking seven year sabbatical leave and the salary entitlement from the

same institution while serving another University and draw another salary at

the same time .

The chairman of the university grants Commission stated that there had been a

long standing practice of serving for some other University while taking 7 year

Sabbatical leave and there are circulars in that regards and the internal auditor

stated that one can serve for to institutions with approval of the Senate of the

University .

Recommendations

Submitting all circulars containing the related provisions to the Committee and

the Auditor General.


The extracts of the establishment code pertaining to Higher education

institutions and the University Grant Commission which contains provisions

regarding 7 year sabbatical leave , have been submitted to the committee by

the letter no. UGC/CIA/F/UVPA/COPE/I of the chairman of the University

Grants Commission, dated 03.07.2018.

04. Acting, superseding establishment code.

The committee drew the attention that Certain officers of Academic Assistant

staff who were recruited in 2010-2011 had been recruited to the Faculties of

Performing arts and Drama and Music, in contravention to the establishment

code by taking leave more than 45 days during the probation period and

confirmation without any extension of the probation period.

The committee made inquiries of the fact that a sum of Rs.240, 700 /- which had

deducted for no pay leave from aforesaid officers, had been repaid to the same

officers with the approval of the Vice Chancellor .

98


The chairman of the University Grant Commission stated that no provisions have

been laid down by any circular permitting the Vice Chancellor to do so.

Recommendations

Taking a decision by the Senate having re investigated the matter in question.

05. Public Petitions

The committee on Public Enterprise drew the attention towards the public

petitions received by the committee regarding the University affairs.

Negligence of duties by the Lecturers and the Professors of the of Faculty of

Performing and drama of University of Visual and Performing arts. (Rakimu

Sarasaviya Lecturers‟Association)

Casual appointments in University of Visual and Performing arts – Senior

Lecturer Saumaya Liyanage (“Performing Arts lecturers who seek the fairness”)

Casual appointments in University of Visual and Performing Arts – Senior

Lecturer Saumaya Liyanage ( Proffesor – Sarath Chandrajeewa )

Recommendations

i. Referring aforesaid petitions to the Secretary to the Ministry

(referred on the date of 20.04.2018 )

ii. Reporting to the committee after investigating the same.


A report has been submitted by the letter No. HE/FIN/02/COPE- UVPA-Vol. I of

the Chief Accountant of the Ministry of Higher Education, in this regard.

99



Sri Lanka Buddhist and Pali University

(Ministry of Education)


09.01.2019)

Date investigated - 23rd

March 2018

The facts discussed

01. The procurement plan- 2015

The committee drew the attention of the fact that the purchases have not

been done as per the procurement plan, since the items amounting to the

cost of Rs.21.6 Million had been purchased despite the procurement

estimates of Rs. 4.6 Million as per the procurement plan 2015 .

The Assistant Internal Auditor of the University stated;

“Sarasavi Medura” Hostel was declared in open January 2015.

The items for that were purchased outside the procurement plan.

That Money has been spent on purchasing computers for Language

Laboratory which was started to introduce the modern languages to

the university students in the same year.

Recommendations

Preparation of systematic procurement plan to avoid such discrepancies in time

to come.

Current situation and the progress

Not reported.

02. Vacancies in the staff

The committee drew the attention regarding the availability of vacancies.

15 vacancies out of 61 positions of the approved academic cadre and 6

vacancies out of 15 approved Administration cadre by 31.12.2017.

Vice Chancellor stated as follows;

Most of the aforesaid vacancies have been filled by this time.

100


No application by the suitable candidate as per the criterion though

applications have been called twice.

Applications have been called by now for vacant positions.

Steps will be taken to fill the vacancies within next 3 months.

Steps will be taken to fill the existing vacancies of the nonacademic

staff within next 3 months.

Recommendation

Taking steps to introduce more transparent enrolment procedures, as this

University is not regulated by the University Grants Commission.


Not reported.

03. Enrolment of the University students

The committee drew attention regarding the following matters with regard to the

enrolment of the students to the university.

Only 581 students have been enrolled, though 1572 student had applied

during past 5 years.

The capability of enrolling more students considering the resources that

the University possesses.

Limiting the number of enrolments going by the space of the University

hostels despite provisions are available to have hostel facilities on rent

and lease basis as per the university Act.

The possibility of providing boarding facilities to the lay students outside

the university.

Ven. Vice Chancellor stated as follows;

Aforesaid numbers are reduced as the number of applicant are

distributed among Buddha Shravaka Bikshu University Anuradhapura

and Sariputta College of Education Nittabuwa

The enrolments are done as per the infrastructure facilities of the

Universities.

There are problematic situations with regard to the security, Food and

Transport facilities to the students , even though the residences are taken

on rent basis .

Recommendations

101



i. Advertising on newspapers to see the possibility of having hostel

facilities for lay students if the boarding facilities can‟t be taken

for Bikku students on rent basis .

ii. Deploying a team of Ministry officials to look in to this matter.

iii. Submitting a report to the committee within 2 months , regarding

whether there is a possibility of enrolling more number of

students considering the resources and the infrastructure that the

university possesses and regarding the Administrative and Legal

measures that have to be taken in that regard.


Following details have been submitted to the committee by the letter of vice

chancellor of the University of the Buddhist and Pali, bearing No. BPU

/IAB/06/COPE/ 2017, dated 26.06.2018.

The number of students, enrolled to the university since year

2010

Academic year number of local

students, enrolled number of foreign

students , enrolled

2010 109 45 2011 110 48 2012 107 36 2013/2014 93 09

2014/2015 108 07

2015/2016 110 28

2016/2017 130 24

2017/2018 140 32

Details on available and the proposed Hostels for academic year

2018/2019

Hostel Number of occupants,

accommodated A 50

B 51

C 69

D 69

E 69

F 50

Sarasavi Medura

200

Total

558

102


Number of students who study internal Degree Courses for the

academic year 2017/2018

Bikku laid foreign Total

First year

108 32 32 172

Second year

89 39 24 152

Third year

85 25 28 138

Fourth year

42 5 3 50

Total

324 101 87 512

Further , as per the above mentioned details , the letter states that the

number of students that are enrolled for the academic year 2018/2019 ,

will have to be restricted to 130 , measures are being taken to have

hostel facilities outside the University and there is a necessity of

improving the infrastructure facilities like lecture halls, canteens

and the security and the transport facilities should be provided when

the outside hostel facilities are provided .

4. Expenditure per student

The committee further drew the attention to the fact that the expenditure per

student of this University is relatively higher than the other universities that have

been established in Sri Lanka.

The gradual increase of University expenditure per student from 2012

to 2016 relatively to 2011, and very high value in 2016.

The building of Sarasavi Medura hostel which was contracted with a

cost of Rs. 220 Million, being underutilized by 2015, only

accommodating 55 students while having the capacity to provide

facilities for 208 students.

The cost incurred for subjects that are studied by single student.

The Secretary to the Ministry and the Vice Chancellor stated as follows;

That the development activities of the university were expedited

during past 5 years.

That 197 student occupy Sarasavi Medura hostel by now.

103



The students are enrolled for a year, considering the facilities that

can be provided to them during next 4 years.

The number of foreign students that register has reduced due to

the various problematic situations that occurred in the country in

the recent years though more number of foreign student got

registered by the time the building was designed . But an increase

is visible yet again.

05. Computer instructor – Grade II post

Recruiting an applicant who does not have minimum qualification for this post.

Registrar stated that the authenticity of the degree certificate he submitted has

been confirmed by the university by email and that university is a University

grant commission approved university.

Recommendations

i. The academic transcript should be brought down from the University

concerned and inspected.

ii. Notifying the officer concerned to send the degree certificate

certifying it in a proper manner.


Not reported.

104


105



University of Moratuwa



28.12.2018)

Date investigated: 04th

September 2018

Matters discussed

01. Vacancies in the staff

There were 155 vacancies in the posts of academic staff and 232 vacancies in the

posts of non-academic staff by 30th of September 2017.

Recommendations

i. Educating the committee on the general reasons that result staff

vacancies.

ii. Preparing a mechanism on the services that can be obtained from

persons who possess specialized professional skills and talents.

iii. Giving the right to decide whether the persons who are enrolled as

mentioned above to be retained in the staff or under a separate

category to the university.

iv. Preparing a mechanism to obtain services of those who come to

serve for a certain period for universities that conduct professional

courses fulfilling the said requirement instead of enrolling them on

permanent basis.

Reporting of present status and progress

Not reported.

02. Violation of agreement and bonds

Recommendations

i. Recovering the money that should be charged from the lecturers who

have violated the agreements and bonds from the University

Provident Fund.

ii. Submitting a document that includes details on how the amount was

recovered to the committee.

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Not reported.

03. Non-financial transactions

The chairs and tables required by the new cafeteria complex had been obtained

on rent without following the government‟s procurement guidelines.

The Vice Chancellor said investigations in this regard are being carried out.

Recommendations

To submit a report in this connection to the committee within 03 months.


Not reported.

04. Course Development Funds

Course Development Funds had not been spent for any course development

activity in year 2016.

The Vice Chancellor said that these funds are not obtained targeting one year and

the aforesaid money will not be spent if a requirement does not arise.

05. The agreement between the University of Moratuwa and CodeGen

International Company

Although the university should have retained the intellectual property rights

according to the policies adopted by the university with regard to intellectual

property, it had reached an incompatible agreement with the CodeGen

International Company without gaining any financial benefit.

Recommendations

i. To submit a comprehensive report in this regard to the committee

within a month.

ii. To submit the documents, that state the project has not yet reach the

revenue generation level if it is still at the research and development

stage, to the committee and the Auditor General.

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Not reported.

06. The contribution to the country from the research conducted by

university

The following matters were discussed.

What are the research papers presented by the university from year 2015

to 2017?

For which fields?

Which parties in Sri Lanka or in a foreign country are using the

information available in those papers?

The contribution made by the academia to address the national issues?

Recommendations

To submit a report in this regard to the committee by the end of May 2018.


Not reported.

Uni-Consultancy Services

The Secretary to the Ministry of National Policies and Economic Affairs has

issued a clarification with regard to the matter mentioned above from the

letter MNPEA/P/UGC/MU dated 03.09.2018 submitted to the committee.

(Annexure 11)

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Annexure 11

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The special audit report comprised of the issues raised in COPE

meetings and observations regarding the

University system of the country (Annexure 12)

Nature of the report and the background

This special report includes the common issues that exist in the university system

at present and issues unique to each university as well as the progress of

implementing the orders given by the Committee on Public Enterprises and the

observations as well as the recommendations of the Auditor General.

The University Grants Commission (UGC) is the main institution that regulates

Sri Lanka‟s state university system and 15 universities have been established

under the UGC. They are,

i. University of Colombo

ii. University of Kelaniya

iii. University of Moratuwa

iv. University of Sri Jayawardenapura

v. University of Visual and Performing Arts

vi. Open University of Sri Lanka

vii. University of Peradeniya

viii. University of Jaffna

ix. University of Ruhuna

x. Eastern University of Sri Lanka

xi. Southeastern University of Sri Lanka

xii. Rajarata University of Sri Lanka

xiii. Sabaragamuwa University of Sri Lanka

xiv. Wayamba University of Sri Lanka

xv. Uva Wellassa University of Sri Lanka

These universities are governed by the provisions of the University Act No. 16 of

1978. In addition to the aforesaid institutions, number of universities that come

under the direct purview of the Ministry of Higher Education is 02. They are,

i. Buddhist and Pali University of Sri Lanka

ii. Bhiksu University of Sri Lanka

Observations have been made with regard to the following fields under the

general matters identified in this special audit with reference to aforesaid

institutions.

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1) Decline of number of students enrolled to universities

Information with regard to enrolling of students to state universities for the

last 04 years is as follows.

2013/14 2014/15 2015/16 2016/17 2017/18

Number of

students

applied for

university

education

55,991 58,176 68,299 71,106 78,894

Number of

students

selected to be

enrolled for

university

25,200 25,676 29,110 30,668 30,550

Number of

students

selected for

university as a

percentage out

of the applied

students

45 43.7 42.6 43.1 38.7

During the five years from year 2013/14 to 2017/18, number of students applied

for universities and number of students selected for universities, as a percentage

had shown a declining trend of 45% to 38.7%.

02. Not filling the places vacant after enrolment of local and foreign students

for universities.

2.1 Places vacant after enrolment of students to state universities.

(Page 38 of the Annexure 12)

Students who qualify for various courses not registering for the aforesaid

courses, registered students changing their courses and directions issued by

the universities asking not to fill the slots further, have resulted aforesaid

places being vacant available in the universities.

2.2 Places vacant after enrolment of foreign students to state universities.

(Pages 12, 39 and 40 of the Annexure 12)

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Out of the places vacant in every course of local universities 5% have been

allocated for Sri Lankan students with foreign qualifications and foreign

students. The tendency of foreign students who are selected for local

universities not attending the universities out of Colombo has mainly

resulted this situation and attention had not been focused on giving

opportunity for local students to fill the unfilled amount of the quota

allocated for foreign students.

3. Holding aptitude tests to enroll students for universities (Page no.41 of

the Annexure 12)

After the relevant university informs the results of the aptitude test

conducted by each university, the University Grants Commission will select

students for relevant courses after taking into consideration those results and

the Z-scores obtained by the students.

It was observed that having no specific date to hold aptitude tests for

various courses in each university has delayed the issuing of Z-scores

relevant for each academic year, whereas number of reasons including

applicant failing the aptitude test even after obtaining a higher Z-score,

relevant Dean of the faculty or lecturers having the final say on deciding

whether the relevant applicant will pass / fail have resulted various

malpractices.

4. The performance level with regard to universities and the higher

education

5. Violation of bonds reached by the staff and not taking measures to

recover the money due to the violation of bonds. (Page no.46 of the

Annexure 12)

It has been observed with regard to staff of every university that bonds have

been violated by not reporting for work again after the relevant period had

expired. Therefore, 519 academic and non-academic staff members had

violated the bonds and the total amount payable is Rs.836, 133, 700/-.

6. Not taking measures to complete the External Degree Courses within

the relevant time period (Pages 44 and 55 of the Annexure 12)

Whereas a student should complete the degree within 03 academic years

after registration, the delays in conducting of examinations and issuing of

results have resulted students spending more than 07 years to complete their

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degree and it was observed that this situation has created certain issues,

including curbing the opportunity for them to face the competitive

examinations of the government due to the age limit.

Furthermore, it was also observed that there are certain instances where

money received for External Degree Courses not being credited to the

University Fund, with regard to 15 universities.

07. Utilization of funds generated from state financial allocations and other

incoming sources. (Page numbers 51 and 52 of the Annexure 12)

In terms of the University Act No. 16 of 1978 the universities had

maintained separate funds and the balance of 794 funds maintained with

regard to 15 universities by 31.12.2017 was Rs.5, 666, 943, 414/-.

A large amount of sum is provided annually by the treasury for activities of

the universities and these allocations are provided through the loans

obtained by the treasury. Therefore, it is observed that the net debt per

capita could have been eased by reducing the treasury allocations if the

money had been spent for activities of the universities instead of investing it

in the funds.

Further, instances were observed where capital grants had been retained as

non-spent grants without utilizing them for relevant purposes although they

had been provided for universities annually. The amount that had been

retained without spending by 31.12.2017 was Rs.1, 416, 216, 302/-

(Annexure 28 of the report). It has been observed that preparing estimates

without conducting proper assessment, carrying out research, lack of

interest shown by the academia to submit research and publications for

international and local conferences have resulted underutilization of capital

grants provided by the treasury annually.

08. The progress of using research output of students and lecturers for the

betterment of the country. (Page 47 of the Annexure 12)

Since it is difficult to investigate whether research have been actually

carried out due to not handing over of research proposals before the

deadline, not submitting research reports by the lecturers who had obtained

research grants, the problematic situation of whether the objectives of

providing research grants have been fulfilled has been observed. It is also

observed no action has been taken against lecturers who had given up their

research.

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09. Commonly accepted accounting method not being followed by all the

state universities and the University Grants Commission with regard to

their accounting process.

It has been observed that comparing financial statements of universities with

each other has become difficult since the accounting process does not have

a uniformity as each university uses different types of software for the

accounting process.

Other matters included in the report (Annexure 12)

1. Admission policy for state universities (Page 10 of the Annexure 12)

2. Applying for university admissions via internet. (Page 42 of the Annexure

12)

3. Hostel requirement and other general facilities of the students. (Page 43 of

the Annexure 12)

4. Allocation of lecture hours for university lecturers. (Pages 14 and 45 of the

Annexure 12)

5. Lawful right of the lands where universities and higher education institutions

are being maintained. (Pages 14 and 45 of the Annexure 12)

No measure had been taken to legally acquire the lands utilized by majority

of universities and activities with regard to acquiring have also delayed.

Further, buildings had been constructed on the lands that are not legally

owned using the government fund and the revenue earned by the university;

whereas it has been identified the relevant universities may face a risk in the

future owing to this situation.

6. Salaries and allowances been paid for the members of academic staff without

obtaining any confirmation on their arrival and departure. (Page 54 of the

Annexure 12)

7. Not taking measures to prepare cadre vacancies. (Page 54 of the Annexure

12)

8. Although 34 years have passed since the issuance of establishment code for

the University Grants Commission and higher education institutions, no

measure has been taken to re-issue the establishment code with an

amendment. (Page 54 of the Annexure 12)

9. Paying allowances for sabbatical leave. (Pages 15,44 and 45 of the Annexure

12) Sabbatical leave is one of the main entitlements of the lecturers of this

field and it is represented as mentioned below.

i. Sabbatical leave for a semester after 11 semesters of service

ii. Sabbatical leave for two semesters after 16 semesters of service

iii. Sabbatical leave for two terms semesters 21 semesters of service

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(„Semester‟ here refers to at least eight weeks of full time service)

It was observed that members of the academic and non-academic staff of each

university who had obtained sabbatical leave with salary and allowances by the

end of year 2017 had served in the positions of academic and non-academic staff

of other universities while receiving salaries and allowances of those positions as

well.

10. Loopholes in contract agreement and administration. (Pages 57,58,59 and 60

of the Annexure 12)

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The recommendations presented by the Auditor General for the above

observations

(Pages 61, 62 and 63 of the Annexure 12)

1. Taking expedite measures to recover the money that could not be

charged due to the violation of bonds and Preparing agreements with

regard to bonds in a responsible manner.

2. Taking measures to complete the external degree courses conducted by

universities within the scheduled time period of 03 or 04 years.

3. Preparing plans to effectively utilize the capital grants allocated annually

for universities by the government.

4. Selecting research fields focusing special attention on sectors that are

beneficial for the country, utilizing grants allocated for research

effectively, establishing a proper post review system regarding research

and introducing a mechanism to publicize research outcomes.

5. Taking legal action against lecturers who do not complete or delay

research already commenced.

6. Taking measures to transfer the revenue earned from self-funded courses

to the fund of the commission.

7. Obtaining the approval of the Minister when establishing new faculties in

universities, in terms of the Act.

8. Constructing permanent hostels to cater the requirement of the students.

9. Providing proper academic calendars when assigning academic duties for

lecturers and conducting a follow up on whether they provided the

service according to the calendar.

10. Instead of the aptitude test conducted to enroll students for various

courses of universities, providing opportunity for the students who have

obtained high Z-scores at the G.C.E. Advanced Level examination for

university admissions by taking a justifiable policy decision that does not

violate fundamental rights of the students.

11. Taking measures to publish an open advertisement when recruiting

persons for non-academic administrative positions of the University

Grants Commission and the Universities.

12. If the grants provided by the treasury are deposited in fixed deposits

obtaining approval of the Finance Minister and utilizing the money

effectively for the task it was allocated.

13. Introducing well-known accounting software for all the universities and

preparing financial statements using the system in order to minimize

accounting errors.

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14. Since the number of foreign students who are entering the Sri Lankan

universities has gradually declined, providing those opportunities for

local students.

15. Taking measures to attract more foreign students for universities.

16. Providing opportunity for qualified students to enter universities by

properly filling the places vacant in universities.

17. Taking measures to implement the decisions of the Committee on Public

Enterprises and having a follow-up.

18. Amending the establishment code relevant for the University Grants

Commission and the higher education institutions according to the

present day requirement.

19. Conducting another inquiry on the role of LEARN company and

assessing its effectiveness as well as preparing a cost effective

programme to obtain internet facilities by creating a network of experts

who are involved in the Information Technology Institutions functioning

in each university.

20. Obtaining the services of Information Technology Institutions when

providing internet facilities for universities and obtaining the assistance

of institutions such as Sri Lanka Telecom for the purpose.

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Observations of the Committee

When considering the general issues prevailing in the University system at

present, the committee observed the following.

1. The need to introduce reforms in the curricular to match with the

globally changing needs.

2. The need to develop curricular that can address the job related issues.

3. Operational deficiencies.

4. Management deficiencies that exist with pertinence to reporting for

service and obtaining leave.

5. Deficiencies in the management of fixed assets.

6. Deficiencies in the management of vehicle pool.

7. Shortcomings in submitting financial statements.

8. Deficiencies in conducting Audit committee meetings.

9. Under-utilization of Funds.

10. Deficiencies in Human Resource Management.

11. Constructions done in the lands which have not been properly acquired.

12. The need to encourage research important for the country‟s economy.

Recommendations of the Committee

1. The committee which accepts all the recommendations given in the Auditor

General‟s Report, presents them to Parliament for approval and implementation.

2. The committee also recommends that an open dialogue should take place in

Parliament, once presented.

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