A shocking National Audit Office report reveals how Sri Lanka’s Youth Services Council, under Minister Harin Fernando, misused over Rs. 538 million in public funds on unauthorized music shows, expos, and last-minute payments before the 2024 presidential election to allegedly promote Ranil Wickremesinghe.
A comprehensive audit report by the National Audit Office has uncovered large-scale financial irregularities and misuse of public funds by the National Youth Services Council (NYSC) during the lead-up to Sri Lanka’s 2024 Presidential Election. The audit reveals that over Rs. 538 million was spent on unauthorized events, including musical shows and exhibitions, allegedly to promote President Ranil Wickremesinghe’s campaign.
The 2024 Smart Youth Exhibition, a series of music shows, and the ‘Sihinaya’ program were all organized under the NYSC and executed without alignment to its official work plan. Despite Cabinet approval being granted only on July 15, 2024, the Council had already conducted three exhibitions and five musical performances prior to this date, breaching protocol and raising red flags about procedural transparency.
Crucially, a written directive issued by the Election Commission on July 30, 2024, ordered the postponement of such activities until after the presidential polls. Disregarding this, the NYSC went ahead with a musical show under the Sports Fiesta initiative between August 16 and 18, spending Rs. 14.57 million of public funds.
The report further highlights a suspicious escalation in payments just a day before polling. On September 20, 2024, three suppliers handpicked by the NYSC Director General were paid Rs. 37.86 million, while two recently registered companies received an additional Rs. 11.37 million. These registrations were fast-tracked without proper documentation or deposits. Finance officers have confirmed they were pressured by senior officials to release the payments.
Adding to the concern, the Sri Lanka Youth Services Company, a NYSC subsidiary, was found to have issued fake invoices for services like fireworks, banners, and event security, resulting in an overpayment of Rs. 7.33 million. The audit revealed a total disregard for procurement procedures, with supplier lists and specifications being directly controlled by the Director General’s office.
Out of the Rs. 538.79 million expended on these events, only Rs. 74.20 million had been reimbursed by the Presidential Secretariat as of December 31, 2024, even though the Cabinet had sanctioned a reimbursement of Rs. 493.25 million. As a result, Rs. 464.59 million was absorbed from the NYSC’s annual capital allocation, severely impacting priority youth development programs.
The report also points out that Rs. 259.83 million of the Rs. 323.39 million spent on organizing three Smart Youth Exhibitions and 14 music events occurred before Cabinet approval. This violates standard financial management regulations and the National Budget Circular 2024/01, which emphasized strict control of public expenditures due to the country’s economic crisis.
Another alarming finding was that despite Rs. 12 million being allocated for recording and archiving 10 music performances, no video documentation was available for audit. Many of these events were not included in the Council’s annual action plan, further illustrating the deviation from official mandates.
Overall, the audit paints a picture of a state-run youth agency being leveraged for political purposes. Programs were launched and funded outside legal boundaries, bypassing procurement laws, and ignoring electoral regulations, resulting in significant public fund mismanagement at a time of national economic stress.
