COPA exposes large-scale corruption in North Central Provincial road projects, school auditorium

THE Committee on Public Accounts (COPA) last week uncovered what it described as one of the most shocking episodes of corruption in the country's recent road development history, following revelations of financial irregularities and political interference in flood rehabilitation projects undertaken by the North Central Provincial Council.

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The Committee convened in Parliament, chaired by MP Aravinda Senarath, and disclosed that 53 roads, damaged during the 2011 floods, were rehabilitated based on an additional estimate of Rs. 1.17 billion. However, a 2013 investigation by a team of engineers from the University of Peradeniya found that construction standards had not been met. As a result, payments to contractors were suspended.

The original estimate for these road projects stood at Rs. 3,593 million (over Rs. 3.59 billion).

Officials told the COPA that, rather than adhering to standard public procurement protocols, the projects were deliberately fragmented into 741 smaller contracts, each valued below Rs. 5 million. This circumvented the requirement for competitive public tenders and enabled the contracts to be awarded through limited bidding, with approval from the then Director General of the Provincial Road Development Authority.

They noted that this fragmentation allowed seven contractors without a public tender process. One of these contractors had received 629 projects covering 42 roads worth Rs. 2,934 million. Officials stated that based on the contractor's financial capacity and experience, contracts worth only Rs. 300-600 million should have been awarded. It was also disclosed that this contracting company was linked to a politician who held power in the North Central Province at the time.