Take action as per the legal provisions against auctioneers who sell land and houses without legal title and proper approvals – A recommendation from COPA to the Local Authorities of the western province.
- Implement a system that does not inconvenience consumers due to fraudulent sale of land and houses
Since land and houses auctioned by many auctioneers have been mortgaged to the banks and given the auctioneers failure to inform the consumer regarding such detail, it was discussed at length how the consumers making purchases of such lands and houses are facing issues. Accordingly, the Committee on Public Accounts drew its attention towards the measures taken by the Local Authorities of the western province to resolve the said issue.
The officials who were present stated that the advertisements regarding auctions are published even prior to obtaining proper approvals. COPA recommended that action be taken in a manner that does not prejudice the consumer and to look for a way forward post discussing with the auctioneers who are legitimately conducting such auctions.
It was also emphasized that action should be taken in accordance with the legal provisions regarding the sale of land and houses or the publication of related advertisements without obtaining prior approval and the confirmation of the legal title to such property by the auctioneer. Accordingly, the Committee instructed the officials present to provide a full report on the matter by August.
This was discussed when COPA met in Parliament recently (10) under the Chairmanship of the State Minister Hon. Lasantha Alagiyawanna to look into the progress of the recommendations made during the previous Committee meeting based on the Auditor General’s report on Local Authorities of the western province.
Furthermore, the coordination data system for the Local Authorities of the Western Province was also discussed here. Accordingly, COPA instructed to take prompt action in this regard, as daily work can be done more efficiently between the institutions through such Coordinating Data System between the Local Authorities in the Western Province.
The Committee had given recommendations to the local authorities to provide survey reports on the current status and progress of allocating land for public use when land parceling and sale. However, it was made note that the related survey reports are yet to be received.
It was also disclosed that although a contract of Rs. 36 million was entered into in 2015 for the purpose of providing consultancy services for the construction project of the new municipality building, the council has thereafter abandoned the project as the council had no land ownership. Thus, I was disclosed that the consultancy firm has filed a lawsuit for the amount in arrears owed to them. The Committee on Public Accounts emphasized that such problems arise due to the fact that Local Authority bodies enter into projects which are beyond their mandate without any feasibility study at their own discretion. Accordingly, it was emphasized that a policy decision should be taken in this regard.
State Minister Hon. Prasanna Ranaweera, Members of Parliament Hon. Sahan Pradeep Withana, Hon. Weerasumana Weerasinghala, Hon Madura Vithanage, Hon. (Mrs.) Muditha Prishanthi and Hon. (Mrs.) Manjula Dissanayake were present at this Committee meeting held.
