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Committee on Public Enterprises: Failed ICTA projects revealed

11 Dec 2020

The Information and Communication Technology Agency (ICTA) has come under scrutiny as the Committee on Public Enterprises (COPE) raised questions following revelations of massive expenditure on numerous projects launched by the agency and that had fallen by the wayside, incurring billions in costs. The agency was summoned before the COPE panel on Tuesday (8). During the meeting, COPE Chairman Professor Charitha Herath said failures have been observed in several projects kicked off by the ICTA for the digitalisation of the public sector, causing billions of losses. Through the e-Pension Project, the ICTA was entrusted with the responsibility of developing the hardware and software for the project utilising state funds to initially provide pensions to the pensioners of the Western Province covering the District Secretariat, the armed forces, the Department of Prisons, the Department of Railways, and the Department of Civil Defence, through an online mechanism. However, the project, which was supposed to be implemented across the country, was abandoned with effect from 1 November 2013, due to “software and hardware issues” and Rs. 278.54 million went to waste as a result, the COPE panel revealed. In addition, the Google Loon project, initiated with the purpose of providing islandwide internet access, had not been executed by the ICTA, although more than Rs. 1.8 million was spent to release the equipment for the project from Customs and another Rs. 6.4 million was spent on project promotion. The COPE further revealed that Rs. 850.47 million was approved while Rs. 148.33 million was spent on the “Lanka Government Network” project, which the ICTA began in 2016 for establishing an efficient public service by connecting government institutions through a network. The panel stated that the progress of the project was at 17%. It was disclosed that Rs. 3.5 million allocated for the procurement process of the e-NIPO project initiated by the National Intellectual Property Office (NIPO) in 2016, has been used to pay salaries of ICTA officials. Accordingly, the COPE Chairman pointed out the need to formulate a formal mechanism to regulate financial matters. Meanwhile, Rs. 39 million was spent as of 31 December 2017 on the e-Local Government project which had failed and was relaunched in 2016, and the COPE reprimanded the agency for not including it in the performance reports since then. The COPE also revealed that the ICTA had not prepared a corporate plan and that the plan which was made at a cost of Rs. 2,737,000 was not executed. Hence, the COPE directed the ICTA to conduct an internal investigation into the years 2003-2019 and submit a report to the panel at the earliest possible date. The COPE further expressed its displeasure over the recruitment of officials for the senior positions of the ICTA under contract basis. The panel emphasised the need to create several key positions on a permanent basis and establishing a proper hierarchy within the agency.  


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