📈 COPA Flags Rs. 167M Loss and Demands Urgent Cooperative Sector Reforms

The Committee on Public Accounts (COPA) has raised serious concerns over financial irregularities and stagnant loan recoveries within the Department of Cooperative Development, based on audit reports from 2021-2024. • Financial Losses & Irregularities: A major loss of Rs. 167 million was identified regarding a 2013 loan issued to the Building Materials Corporation. The funds were released outside existing regulations, and repayments ceased in 2015. • Stalled Loan Recoveries: Rs. 31 million remains unrecovered from 28 Cooperative Societies. Repayment delays range from 12 to 59 years. Recovery is currently hindered by legal jurisdictional issues between national and provincial authorities. • Policy & Legislative Action: COPA has ordered officials to expedite the drafting of a new Cooperative Act to provide stronger legal powers for fund recovery. • Agricultural Sector Oversight: Questions were raised regarding a Rs. 50 million poultry initiative (part of the livestock and food security strategy). Originally intended for nationwide rollout to address egg shortages, the program was restricted to only seven areas in Gampaha. • Status: Based on National Audit Office reports; matter formally reported to Parliament for further action.