The National Audit Office (NAO) has revealed significant delays and financial irregularities in the Rs. 135 million project to improve the Correctional Centre for Youthful Offenders in Pallansena, Negombo – a project initiated to address severe prison overcrowding.

The project, proposed by the National Planning Department in 2019, was scheduled to begin on 28 September 2020 and be completed by 31 December 2020. By the end of 2023, 11 main work items were expected to be completed. 

Estimates had been prepared for seven items at Rs. 10,478,341, close to the provision of Rs. 10,125,031. However, no estimates had been prepared for the remaining four components. 

Despite expenditures exceeding Rs. 105 million – excluding salaries and overtime allowances – the project was still incomplete as of 6 February 2024.

The NAO has flagged serious financial management issues. 

For example, Civil Security Department staff working on the project had received Rs. 22,293,250 in combined allowances from 2021 to 2023, payments made without adherence to Financial Regulation 136(1), which requires that expenditures fall within authorised financial provisions. 

Additionally, Rs. 4,677,625, intended for the prison cafeteria’s food and beverage expenses from November 2020 to December 2021, had been paid under the project as per a decision of the Minor Administrative Procurement Board, in contravention of Section 1.3 of Chapter XIV of the Establishments Code.

The Department of Prisons has defended the delays, citing challenges including nationwide economic conditions and material supply and procurement issues from the Sri Lanka Navy, labour shortages from the Civil Security Department, and extremely high groundwater levels at the construction site, which had complicated work. 

The sewerage system, supplied separately by the Navy, had not been included in the original Army-prepared estimates. 

While numerous progress review meetings have been held to provide guidance to the relevant parties, the department has admitted it lacked direct control over contractors and Civil Security Department staff. Plans are now underway to procure additional materials through the Pallansena facility of the Department of Prisons.

The NAO has recommended that the Department of Prisons implement systematic programmes to ensure timely completion of the project and achieve the intended objectives.

When contacted, Prisons Spokesperson Jagath Chandana Weerasinghe said he would have to check the details of the project before commenting.