A series of large-scale fraud and corruption cases involving the Department of Motor Traffic (DMT) were brought to light during recent meetings of the Committee on Public Accounts (COPA), held on March 21 and 22.
The discussions centered on multiple audit findings spanning several years, revealing severe irregularities in vehicle registrations and substantial losses to the state.
One of the key issues discussed was a racket uncovered in a 2019 audit involving the fraudulent import of luxury vehicles.
158 vehicles had been imported under licenses intended for religious institutions using altered names and forged documentation, the COPA revealed citing the 2019 audit.
Additionally, the manufacturing dates of 120 vehicles were changed before registration, the audit reveals.
In response, DMT officials said disciplinary action had been taken against an implicated employee, including an inquiry by the Ministry of Public Administration.
A clerk who was interdicted was later reinstated due to lack of sufficient evidence. COPA members, however, expressed concern over the lack of accountability and the precedent it sets for public sector conduct, in addition to the loss in government revenue.
The committee also reviewed more recent audit findings covering 2020 to 2023. It was revealed that due to the failure to charge prescribed registration fees for 296 motorcycles with engine capacities between 201cc and 450cc, the state incurred a loss of Rs. 78.15 million. Further, 3,088 motorcycles were registered without Cabinet approval or required legal documentation.
A comprehensive review was conducted on 25 audit points related to illegal vehicle registrations made before the integration of the Sri Lanka Customs computer system.
COPA criticized the department’s failure to act on these issues, noting that reports submitted were inadequate. The committee called for immediate disciplinary action and the appointment of an independent investigation team.
Among the other serious findings were:
• Fraudulent vehicle registration certificates issued by using engine and chassis numbers from illegally imported vehicles, causing a loss of Rs. 1.2 billion.
• Unauthorized issuance of certificates for unused vacant registration numbers, leading to a loss of Rs. 6.2 million.
• Misuse of diplomatic registration numbers for non-diplomatic vehicles, resulting in a loss of Rs. 122 million.
DMT officials also acknowledged critical issues within their operational system, citing the lack of a service agreement with the system provider. Despite these shortcomings, they maintained that external access to the system is not possible.
Following these revelations, COPA recommended that disciplinary action be taken against all responsible officials and that progress be reviewed monthly. The committee also urged legal authorities to pursue criminal investigations where applicable and stressed on the need for greater public awareness of the irregularities. (Newswire)