Norway is making an effort to tighten financial controls on Sri Lankan projects implemented through the government and NGOs.!!!

Norway tightens financial control over SL projects
February 27, 2011, 12:00 pm

By Shamindra Ferdinando



Norway is making an effort to tighten financial controls on Sri Lankan projects implemented through the government and NGOs.



A senior embassy spokesman says action to thwart mismanagement of funds and ensure better control of its development funds is high on their agenda .



According to the Norwegian Agency for Development Cooperation (NORAD), the total Norwegian development cooperation with Sri Lanka amounted to approximately NOK 2.5 billion during the period 1997-2009. Of this amount, about NOK 100 million had been spent on the peace process, including the Sri Lankan government (Secretariat for Coordinating Peace Process) and the LTTE (Peace Secretariat).



Among the other recipients of Norwegian funds are the National Peace Council, the Centre for Policy Alternatives and the Sri Lanka Press Council.



In the first phase (1997 to 1999), Sri Lanka and Norway agreed that the latter should support a negotiated settlement to the conflict. It was followed by the second bid in the period from 1999 to 2002, when Sri Lanka and the LTTE invited Norway to play the role of facilitator. The third phase (2002-2006) saw the parties to the CFA agreeing to explore a federal solution, and in the fourth phase between 2006 and 2009, Norway made a series of abortive attempts to revive the peace process.


The Island raised several issues with the Norwegian embassy including the ongoing evaluation of the failed peace processes, spearheaded by successive Norwegian administrations.


The Island: The Norwegian Embassy recently invited proposals for a Consultancy Assignment on ‘Advisory Service on Financial Management and Audit Issues of Development Projects’. Is this a new initiative and if so, what prompted the new Ambassador to tighten financial controls?



Have you already picked an agency? We understand there have been many shortcomings in projects earlier funded by Norway and at least one key recipient of Norwegian financial assistance was investigated for misappropriation of funds.


Norwegian embassy: The Consultancy Assignment has been going for more than three years. The purpose is to enhance the capacity of the embassy on evaluating audit and financial statements. The consultant should also do on the job training of the staff as well and assist the staff in evaluating budgets. It is not a position at the Embassy but a consultancy service that is provided from outside the Embassy as and when required. We are in the process of evaluating the applications. Nobody has been selected for the assignment so far.


The Island: What is the status of the ‘evaluation of Norwegian peace efforts in Sri Lanka 1997-2009?’ According to the tender document, regarding the ‘evaluation of Norwegian peace efforts in Sri Lanka 1997-2009,’ the draft of the final report was to be ready by Jan. 30. 2011. Is it ready?



In keeping with the tender document, will Sri Lanka receive a copy on March 7, 2011; for comments? Will you be releasing the final report in April this year?


NE: This is an independent evaluation commissioned by the Evaluation Department of the Norwegian Agency for Development Cooperation (NORAD). It was put out to international tender and awarded to a consortium lead by the Chr. Michelsen’s Institute, in Bergen, Norway. The final report is expected to be ready by May 2011. It will then eventually be published and available both in print and electronically from NORAD’s website (www.norad.no/evaluering).


The Island: We understand, the head of the inquiring team, Gunar Sorbo, had an opportunity to meet UNP leader in Oslo late last year. Did Sorbo meet or discuss the issue at least over the phone/Skype with any other Sri Lankan officials in Colombo, including former president CBK or the SL embassy in Oslo?


NE: The detailed work programme during the course of the evaluation is the sole responsibility of the evaluation team, and neither we nor the Evaluation Department in NORAD know the details of this at this point in time.


The Island: Norwegian tender document says Oslo spent approx. NOK 2.5 b from 1997-2009. Of this amount, NOK 100 m was allocated for activities directly connected with the peace process, including SLMM and Peace Secretariats of both parties. Has there been constant monitoring of spending and a breakdown of funds allocated?



NE: For Norway, work to prevent the mismanagement of funds is high on the agenda and efforts to ensure better control of our development funds have been intensified. Our projects are monitored financially to prevent corruption, irregularities and the misuse of funds. The projects are also followed up to see the objectives being fulfilled.



How the LTTE spent Norwegian funds received through its Peace Secretariat has not yet been revealed.



Sri Lanka recently rejected a move by Chr. Michelsen’s Institute to visit Colombo to meet some of those involved in the peace process.

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