News Today: COPE criticizes mismanagement at Gem and Jewellery Authority, calls for urgent investigation into financial discrepancies

The Committee on Public Enterprises (COPE) has raised significant concerns regarding financial mismanagement at the Gem and Jewellery Authority (GJA). One of the key issues highlighted was the decision to spend a staggering Rs. 2 billion on renting a separate building instead of renovating its existing facility for just Rs. 21 million, as suggested by the Central Engineering Consultancy Bureau (CECB). This financial misstep has prompted COPE to demand an investigation into the matter.

The GJA had vacated its original building in 2021 due to structural issues caused by an adjacent shopping complex. However, despite an offer from the responsible company to pay Rs. 3 million per month as compensation, the Authority refused the offer and opted for relocation. This decision led to excessive rental expenses, which COPE has criticized as a wasteful use of public funds, contributing to the government’s financial strain.

In addition, COPE has questioned the legality and lack of formal approval for gem mining activities in Heraniaka. The committee raised concerns over contract extensions granted to private companies without due diligence or proper oversight. Officials from the GJA struggled to provide clear answers during the investigation, prompting COPE to recommend an internal investigation, as well as a referral to the Commission for Investigation of Bribery or Corruption.

Another major issue scrutinized by COPE was the release of a Rs. 2.5 billion gem consignment, which had been seized by the court for under-valuation. Despite this, the court only imposed a fine of Rs. 10,000 instead of the maximum fine of Rs. 333,000, which COPE has deemed insufficient. The committee expressed dissatisfaction with the officials’ defense, accusing them of misleading the committee.

Finally, COPE pointed out that the GJA lacks a dedicated division for regulating gem imports, which has led to inconsistencies in taxation. With only 1,664.06 kg of gems re-exported from 46,815.94 kg imported between 2022 and 2024, discrepancies in tax evaluations are raising red flags. COPE has demanded a comprehensive framework for regulatory oversight and revenue collection.