News
CEB wrangle gets even murkier
By Ifham Nizam
Plans were afoot by the Power Ministry and the Ceylon Electricity Board top management to give the green light to a higher cost joint venture between China and Pakistan to install a mooring system to unload LNG at Kerawalapitiya, sources close to the Senior Engineers’ Association said.
A senior engineer told the Sunday Island that the CEB was likely to approve it though it was yet under evaluation. “There are strong recommendations from the Power Ministry,” an official said.
When contacted, Ceylon Electricity Board Engineers’ Union (CEBEU) President Saumya Kumarawadu told the Sunday Island that the project should proceed.
He said that it would be taken up at the Cabinet shortly and by the Attorney General’s Department. “I don’t see anything wrong with it as it comes under negotiations and Denmark is also one of the partners,” he added.
He also said that the project comes as a PPA, thus, coming with an investment. “We must go for the three LNG Plants -1,500MW before going to renewable energy,” Kumarawadu said.
A senior engineer attached to the newly launched Senior Engineers’ Association said: “This is the biggest tender fraud in the country, if it is awarded. The value of the contract for Chinese and Pakistan JV is around USD 1.3 billion for 10 years.”
In comparison, he claimed that the cost to CEB from “the New Fortress proposal is USD 250 million for five years.”
Senior Engineers’ Association Officials pointed out that the cost to CEB from the above Pakistan, China JV and pipeline by the same Chinese would cost three USD 3 per One Million Terminal Units (MMBTU). That was double the price of the New Fortress offer of USD 1.4.
CEB tender condition was to install the mooring system for Floating Storage Regasification Unit (FSRU) at a given location with 15 -16 metres depth in the sea.
Many experienced companies who bought the tender documents informed CEB that the location was not suitable for the FSRU terminal and wanted to have the option to change to a stable position.
However, CEB before the bid very clearly said the location of the mooring point cannot be changed.
Therefore, the senior electrical engineer said only two bids were offered and the Technical Evaluation Committee rejected one bid and qualified the JV from China and Pakistan.
The Sunday Island reliably understands that this JV wanted to change the location and TEC considering the possibility.
Since it’s practically impossible to have a mooring system as per CEB location, JV is now offering a small discount to CEB. The earlier price was USD 2.33 /MMBtu and now offered to reduce to USD 2.0/ MMBTU.
“This is a major deviation and violation of tender conditions and procurement procedure.
While refusing to accept a change, it is now trying to accommodate the request of a preferred party,” he added.
Another engineer said that it will jeopardize the entire procurement process of the country. “It’s unfair for experienced bidders who didn’t want to offer impractical solutions.”
The Sunday Island learns that the Pakistan joint venture partner has little experience and the Chinese partner has none.
Engineers say foreign company’s solution and approach was to remove others and to pressure CEB.
Power Ministry Spokesman Sulakshana Jayawardena said that the project was still under evaluation.
News
Lanka enters new phase of prosecutions as hurdles clear
MONETABRIEF –The prosecution of high-profile individuals from the former Rajapaksa administrations is set to escalate this month with the clearing of legal hurdles and administrative bottlenecks, according to officials involved in the process.
Former president Gotabaya Rajapaksa’s attempt to secure an order preventing his arrest in connection with the Easter Sunday massacre was turned down by the Court of Appeal on Thursday.
An overseas travel ban has been in operation against Rajapaksa since June, but the Criminal Investigations Department made no move to question him. He instead filed a writ application seeking an order preventing his possible arrest.
President of the Court of Appeal Rohantha Abeysuriya noted that the court would not interfere with the investigative process. Any attempt by the court would amount to an obstruction of the investigation.
In an unrelated case, the same court rejected an application by opposition legislator Dilith Jayaweera seeking the quashing of a contempt charge filed against him by the Fort magistrate. The charges against Jayaweera and a few other opposition politicians are expected to be taken up in the coming week.
Jayaweera and other opposition politicians — Wimal Weerawansa, Udaya Gammanpila, Sugeeshwara Bandara, and Asanka Navaratne
— were hauled up over their remarks relating to the arrest of Suresh Sallay, the former head of the State Intelligence Service.
SLPP academic Mahinda Pathirana is also charged over his public comments about Sallay’s arrest in February under the draconian Prevention of Terrorism Act.
Former president Mahinda Rajapaksa’s son, legislator Namal Rajapaksa, is already in remand custody following his arrest in connection with three cases of bribery and money laundering relating to the 2013 Airbus deal and the Krrish property development in Colombo.
Although Namal has been granted bail in the Airbus money laundering charge, he is in custody until October 13 over the bribery charge relating to the same Airbus transaction. His arrest is under a provision of the Anti-Corruption Act that does not allow a magistrate to grant bail unless under exceptional circumstances.
Meanwhile, his mother Shiranthi Rajapaksa, who had been asked to report to the Financial Crimes Investigations Division on September 24, was a no-show and was yet to return from Singapore.
She had travelled overseas on September 16, and a family spokesman said she was handed the FCID summons at the departure lounge of Bandaranaike International Airport just before she boarded a flight to Singapore.
At the time, the family spokesman said she was due to return in three days.
“We will see greater momentum in the legacy cases in the coming weeks,” an official involved in the prosecutions said.
“We have cleared the legal hurdles to press ahead with more arrests,” he said.
“We are working on a few administrative issues which will be resolved very soon.”
The controversial prosecution of former President Ranil Wickremesinghe is dragging on without him being formally indicted since his arrest in August last year. The Fort magistrate has listed the case again for November 11, when the Attorney-General is expected to report on his decision regarding action against Wickremesinghe.
News
Police warn: Court evaders face property seizure
Police have reminded the public that courts have the power to take legal action against individuals who evade arrest or remain in hiding after warrants have been issued against them.
Police said that under Section 60 of the Code of Criminal Procedure Act No. 15 of 1979, a court could issue a written proclamation requiring a person evading arrest under a warrant to appear at a specified place and time.
The proclamation must allow the person at least 30 days to appear before court, Police said.
If the person fails to appear even after the proclamation has been issued, the court may take further action under Section 61 of the Act.
This includes issuing an order for the attachment of the movable or immovable property belonging to the person concerned.Police issued the reminder highlighting the legal measures available against persons who deliberately evade arrest and remain in hiding after warrants have been issued.
News
Nearly 20 Iranian tankers stranded off Lanka amid US sanctions
Around 20 Iranian oil tankers are reportedly stranded about 15 nautical miles off Sri Lanka’s southwestern coast, with several vessels facing shortages of food, fuel and fresh water amid tightening US sanctions and maritime restrictions, The Wall Street Journal reported.
According to the report published on Thursday (1), US officials have in recent weeks urged Sri Lanka to prevent local vessels from supplying essential provisions to the tankers and their crews.
The report, citing Sri Lankan Government documents and companies involved in supplying the vessels, said the US had raised concerns over assistance being provided to the sanctioned tankers.
The situation follows the United States’ decision to reimpose a maritime blockade of the Strait of Hormuz in July, which has reportedly left dozens of Iranian and Iran-linked tankers involved in transporting sanctioned oil to China stranded near Asian countries, including Sri Lanka and Malaysia.
Most of the vessels are reportedly empty tankers that had previously transported Iranian crude to Asia, often through ship-to-ship transfers, before preparing to return to Iran for additional cargo.
The WSJ reported that the US Embassy had warned Sri Lanka in August that it was monitoring 19 Iranian tankers off the country’s western coast and had raised the possibility of secondary sanctions against companies providing services to sanctioned vessels.
Sri Lankan authorities have maintained that the vessels are located outside the country’s 12-nautical-mile territorial waters and that the Government is not providing them with logistical assistance.
Meanwhile, shipping companies told the WSJ that obtaining approval to supply essential items, including food, drinking water and fuel, as well as repair services, to the Iranian vessels had become increasingly difficult.
Separately, Reuters reported in late August that 27 sanctioned Iran-linked tankers were waiting off Sri Lanka without cargo.
The Trump administration has also imposed additional sanctions on Iran and warned countries and companies trading with Tehran of potential consequences, as Washington seeks to pressure Iran to make concessions amid the ongoing conflict.
Similar concentrations of Iranian-linked tankers have been reported off Malaysia, where waters have historically been used for ship-to-ship transfers of Iranian crude destined mainly for China.
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