Ministerial vehicle fleet gobbles up public funds

With the JVP going into top gear over government expenditure on ministry vehicles, a study by The Sunday Times reveals that staggering expenses running into several millions a month, is being incurred by the government solely on hired vehicles used by ministers, deputy ministers and their personal staff. In addition, expenses for the payment of salaries to ministers their personal staff, their fuel and telephone allowances also run into millions each month.

The situation has been compounded with the crossover of the UNP MPs which has led to a record number of ministries resulting in an added burden on the tax payer.

Details tabled in Parliament in recent months by some ministries in relation to questions raised by parliamentarians over the use of rented vehicles show that some of them spend as much as Rs. 1.4 million a month. The details tabled are in relation to 35 ministries and according to opposition MPs that may well be the tip of the iceberg.

A study of four selected ministries -- Irrigation and Water Management, Highways and Road Development, Export Development & International Trade and Tourism Ministry showed that a total of Rs. 35.6 million is being paid annually for vehicles rented from private companies.

Meanwhile, although in the face of growing public criticism over extensive privileges enjoyed by ministers, the government has decided to reduce their salaries by 10% but this will only save the state coffers Rs. 6.9 million annually. There are 52 Cabinet Ministers, 20 Deputies and 35 Non-Cabinet Ministers and their salaries have now been brought down on par with those of MPs which is Rs. 54285. Initially a salary of a minister was Rs. 65,500.

Details tabled in the House revealed that Chamal Rajapaksa’s Irrigation and Water Management Ministry pays as much as Rs. 207, 000 a month for each of the seven vehicles it has rented from a private company, while Jeyaraj Fernandopulle’s Highways and Road Development Ministry spends Rs. 290,000 and Rs. 195,000 a month for just two vehicles out of a fleet of seven.

Mr. Rajapaka’s ministry is required to pay a rental of Rs. 17.3 million annually for its seven rented vehicles while Mr. Fernandopulle’s ministry is expected to pay an annual fee of Rs. 8.1 million for its seven vehicles. Moreover a monthly fuel allowance of Rs. 105,000 is paid for the Mitsubishi jeep used by Minister Rajapaksa.

The Export Development & International Trade Ministry that comes under the purview of Prof. G.L. Peiris has rented eight vehicles for which Rs. 5.9 million is paid annually, while the Tourism Ministry has to pay Rs. 4.1 million for six vehicles it has rented.

The Water Supply and Drainage Ministry has rented four vehicles and pays a monthly rental of Rs. 257, 225 while the Trade Marketing Development Cooperatives and Consumer Affairs Ministry has rented three vehicles and pays Rs. 165,000 on a monthly basis.

The Foreign Affairs Ministry needs to pay Rs. 184,000 monthly for one vehicle it has rented while it also has to pay another Rs. 40,000 for another vehicle.

Vehicles used on a rental basis range from double cabs to Ford Cars. They are owned mainly by cab services. According to a circular issued by the President’s Office in 2006 01. 06. a minister is entitled to two vehicles while his personal staff is entitled to five.

A deputy minister is entitled to two vehicles while his personal staff is given three. Accordingly, the private secretary, public relations officer (two in some ministries), coordinating secretary and media secretary of a minister are given vehicles. Drivers of the Ministry receive a wage of Rs. 412 a day and overtime payments.

In addition to vehicles-related expenses, MPs receive a monthly payment of Rs. 104, 635 including their salary. Other allowances include a fuel allowance of Rs. 33,350 (MPs close to Colombo get a lesser amount), Rs. 1000 for refreshment allowance, Rs.4,000 for Parliament sittings, Rs. 2,000 for hand phones and Rs. 10,000 as staff travel allowance.

Ministers also enjoy additional allowances for overseas travelling and those who don’t have houses in Colombo are paid Rs. 100,000 monthly for accommodation. They are also entitled to a fuel allowance ranging from Rs. 20,000 to 75,000 a month depending on the area they live in and five phone lines and a fax machine. Their personal staff is entitled to a monthly fuel allowance ranging from Rs. 13, 200 to 19,400

Ministers are also paid a monthly telephone allowance ranging from Rs. 17,000 to Rs. 34,000 while some of their staff members get a telephone allowance between Rs. 4000 and Rs. 5250. When the matter regarding vehicle expenditure came up in parliament, JVP parliamentarian Ranaweera Pathirana had noted that if the government could stop the renting of one particular vehicle used by the Highways and Road Development Ministry for which it pays an annual rental of Rs. 3,480,000, that money could at least be used to pay the monthly salary to 60 ministers.

As a means of curbing heavy expenditure he suggested that ministries be merged together to reduce their numbers. He also charged that although certain ministries had been allocated a lot of money, only little had been actually given to them. He said that one particular ministry had been allocated Rs. 650 million for this year but even by July it had been given only Rs. 50 million.
He also charged that some of the rented vehicles were owned by close associates of some ministers.

Deputy Finance Minister Ranjith Siyambalapitiya said there were moves to give vehicles to ministries through the Finance Ministry and tenders have been called for. He said the process of estimating the prices of various vehicles had already begun.