COPE Chairman calls for stronger internal audits in State Enterprises

A strong internal audit mechanism is essential for the wellbeing of State-Owned Enterprises, Chairman of the Committee on Public Enterprises (COPE) Dr. Nishantha Samaraweera said.

He made these remarks while addressing Chief Financial Officers and Internal Audit Officers of State-Owned Enterprises (SOEs) at a recent workshop.

The workshop was organized by COPE with the sponsorship of the United Nations Development Programme (UNDP) at the Monarch Imperial Hotel in Sri Jayawardenepura Kotte.It was aimed at strengthening internal auditing and financial oversight within SOEs.

Addressing the gathering, Dr. Samaraweera said active intervention is needed to address the disorganized conditions currently seen in the state enterprise sector. He also stressed that officials accountable to the State are expected to maintain a high level of performance.

He further stated that a successful workshop had earlier been conducted for heads of all SOEs, and that the latest programme for Internal Audit Officers and Chief Financial Officers was organized to strengthen financial discipline and internal audit processes across all institutions.

Dr. Samaraweera also noted that as there are 457 State-Owned Enterprises, it is difficult in practice to summon all institutions before COPE. Therefore, he said steps are being taken to introduce a digital mechanism to monitor and evaluate the performance of those institutions.

Auditor General Ms. Samudika Jayarathna delivered a lecture titled “The State Auditor and Public Institutions: Roles, Responsibilities and Collaborations.” She said public funds belong to the people and therefore must be properly managed for the benefit of the public. She also emphasized the importance of maintaining proper financial discipline and internal auditing systems while supporting the state audit process.

Director General of the Department of Management Audit Mr. A.P. Kurumbalapitiya delivered a lecture on “The Role of Internal Audit Unit in Ensuring Public Accountability,” while former Auditor General and Advisor to the COPE and COPA Committees Mr. Sarath Mayadunne delivered a lecture on “The Role of State-Owned Enterprises within the Public Accountability Structure in Sri Lanka.”

Participants were also given an opportunity to raise questions related to the subject area. During the discussions, attention was drawn to the need to make the position of Internal Auditor more independent by having the officer report to the Ministry Secretary instead of being placed under the head of the respective institution.

Director Legislative Services of Parliament M. Jayalath Perera, Internal Audit Officers, and Heads of Finance Divisions representing nearly 300 State-Owned Enterprises participated in the workshop.

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