“This is more corrupt than Sakvithi, as both steal from the public.
"The real story for journalist is state sector corruption and inefficiency.”
Sakvithi Construction, an unregulated firm that took in deposits from hundreds of people collapsed last year with the owner fleeing the country.
Amunugama, a onetime finance minister and now deputy finance minister, was speaking at the inauguration of a program for financial journalism training sponsored by Sri Lanka's Securities and Exchange Commission.
Amunugama said employees Sri Lankan Insurance Corporation and Sri Lanka Transport Board had come back to work despite being retired and given golden handshakes.
Sri Lanka has a bloated public sector, which has ballooned in recent years.
While many public sector workers are twiddling their thumbs and taking salaries home, some are doing the bulk of the real work, and are underpaid for the work that they do.
In 2004 in particular, graduates unemployable in productive sectors had run a successful campaign to get tax free lifetime jobs in the state sector after getting a free education at the expense of the people.
Critics say that the propaganda supporting the effort was so effective, that the general public, including plantation and factory workers who ultimately had to produce goods and tax revenues to pay their salaries, did not regard it as a scam.
Loss-making state enterprises are also kept alive by another powerful ideology.
But now tax revenues are under pressure. In the first quarter total revenues fell 8.2 percent and tax revenues fell 4.8 percent.
"All taxes revenues have dropped," said Amunugama.
"The money is enough to pay salaries, pensions and foreign loan repayments and to keep the occasional foundation stone laying for buildings."
In 2008 state workers took home 53.6 percent of tax revenues or 313.9 billion rupees as salaries and wages.
In addition an estimated 10.6 billion rupees was lost in tax concessions given largely to state workers to import cars. Ordinary citizens outside the state have to pay exorbitant rates of tax to import cars.
Updated
All of them enjoying life at the tax payers expense. None of them including Amunugama contribute anything to Government Revenue. Amunugama is the biggest hypocrite of them all - others enjoy and keep their mouth shut!
That being said, the president recently in a speech spoke of the merits of the large public sector - how its an engine for employment and how we have a large army of labour to servce the people. How years ago we only have X number of public servants, but now we have YY% more to serve then.
Thats the spin on it. And that spin comes from way higher than Sarath, who despite making a correct observation, hasn't given a solution to the problem.
Other top officials even blamed the IMF and the UNP for trying to reduce the size of the public sector.
Recently LBO reported (Rs. 20 billion i think?) loss for Inland Revenue from vehicle duty from the recent policy decision to provide public servants duty exemptions on vehicles.
Unfortunately you cannot cut your losses with the government. By law you are forced to pay taxes. By law inflation is generated.
How do you rate the ministers, who head all the public sector organisations in your matrix?
When you take the word "public", you get various sub sets such as tax payers, working class, share holders of quoted and unquoted companies, depositors. The inefficiencies affect every one whether it come from private or public sector.
You get "Pinpadi" guys both in the private and public sector. The issue remains that some private sector executives are super efficient and they rob the money of the depositors (public) with the blessings of the shareholders (public) and get away with handsome packets. Thus, I think it is better to be a "Pinpadi" guy than a "Pawpadi" guy.
channa,
a couple of things...
A public quoted company is not funded by tax payers money. it is funded by shareholder money and earnings...
unless the said company is owned by the government (in which case its not really a private company so to speak)
if its a non government owned public quoted company the shareholders can take action to remove errant directors at the AGM or even convene an EGM for the same purpose. you try doing that at a state enterprise.. it would take nothing short of outright revolt to succeed in removal of directors.
there are avenues of action to take against people enjoying the plums of office and doing nothing in return for the shareholders but not so in the case of the state enterprises...
Why not talk about private sector inefficiency. There are many top execs in public quoted companies doing nothing but enjoying plums of office. Isn't that swindling public money?
What we are waiting to see is what you and your government would do now? No point you blaming workers in the state enterprises and departments. It is you and your colleagues in the government are to be blamed for bloating the public sector.
Have some political will to admit your own mistakes and have some courage to take remedial measures, at least now.
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