ECONOMYNEXT – Sri Lanka’s controversial visa deal with IVS-GBS and VFS Global is coming despite the country being required to reduce corruption stemming from an International Monetary Fund governance assessment, the island’s main opposition has said.
The main opposition has also slammed the unsolicited deal with VFS Global, a private contractor, as being bigger than a central bank linked bondscam in 2015.
“This is three or four times bigger than the bondscam,” opposition legislator Rauff Hakeem told parliament.
“I am bringing to the attention of this house this massive fraud (visharler wanchawak).
The deal came despite procurement requirements and anti-corruption roadmap required in an International Monetary Fund deal, following a ‘governance diagnostic assessment’.
“Having pledged all those new measures, and agreed to the IMF conditions, what does the government do?,” Hakeem asked in parliament.
VFS Global and two other firms named in a consortium, IVS-GBS were allowed to collect 18.5 dollars per tourist from a visa. Previously a double entry visa was given at 50 dollars.
VFS Global was selling a double entry visa at 100.77 dollars with actual visa being hiked to 75 dollars and two fees of 18.50 and 7.27 being charged from tourists.
It has now turned out that the visa validity period of the e-visa has been suddenly halved to three months from six, and money has been taken from unfortunate tourists without informing them of the change.
Sri Lanka Parliament’s Committee on Public Finance has also questioned the charges of VFS Global, which now has a monopoly.
The committee has called senior officials to examine the problem.
Examination of the #SriLanka visa outsourcing contract began at #COPF in @ParliamentLK today. We will meet again on the 14th to continue the discussion. As Chair of the committee this is all we wish to state to the media given the ongoing n sensitive nature of the matter.
— Harsha de Silva (@HarshadeSilvaMP) May 9, 2024
Hakeem said if 2.5 million tourists came in 2024 VFS Global would earn around 18.7 billion rupees in the year. In 2024, however the target is around 2.3 million.
He did not say what exchange rate he was using to make the calculation.
In 2024 the entire Department of Immigration’s wage bill in the budget was only 992 million rupees, Hakeem said.
“The total recurrent expenditure of the Department of Immigration and Emigration is 2.57 billion rupees,” he said.
“The amount that goes to the company is 7.2 times bigger.
The total recurrent expenditure of the Department of Immigration and ICT Agency put together was 5.2 billion rupees.
“Whereas we are paying 6.2 times more to some outside company,” Hakeem asked. “How is this happening?”
“Who is pocketing this money. This is the question. This is a massive fraud that is taking place.”
Following protests by Tourism Minister Harin Fernando who reportedly threatened to resign at cabinet, a 50 dollar single entry visa was proposed.
VFS Global was expected to get 10 dollars from the 50 dollar visa opposition legislator S M Marikkar charged, leading to a 20 percent loss in revenue to the country per visa.
“The government has thrown sand on the face of the people (mooneter weli gahala), trying to convince everyone that things are back to normal now that a 50 dollar visa is now available,” Marikkar charged in pithy Sinhalese.
“Doesn’t’ 10 dollars from that go to the company?
There was no answer from government benches.
“We will continue fight against this robbery,” Marikkar said. “We will expose more details relating to this robbery.”
The VFS Global deal hit the Indian Ocean island just as tourism was recovering from the worst economic crisis in recent history leaving a large section of the population mal-nourished and the country is struggling to restructure foreign debt with the help of the IMF.
National Security Minister Tiran Alles, under whose ministry the Department of Immigration comes has said there was no need to call competitive tenders because no one would compete against VFS Global.
“Just think about this, because I say it,” Minister Alles told reporters in Colombo. “If we called tenders who is there to tender for this and compete against VFS?
“We went to cabinet. Committees were appointed. It was studied. Against went to cabinet. That was the correct process that was done.”
Opposition legislators meanwhile said VFS Global was charging 21.65 dollars from tourists from several countries where the cabinet of ministers have decided to give free visas to promote tourism
“Visa cost is zero. Then here is a service free of 18.50 for a free visa,” Opposition legislator Nalin Bandara told parliament.
“There is another charge for 3.11 dollars. So they are taking 21.65 dollars for a gratis visa when a tourist comes to Sri Lanka.” (Colombo/May15/2024)