News
China wants issue resolved amicably
Controversy over harmful organic fertiliser:
Amidst a simmering controversy both in and outside Parliament over accusations the SLPP government planned to import harmful organic fertiliser from China, the Chinese Embassy, in Colombo, has urged Sri Lanka and Qingdao Seawin Biotech Group to resolve this issue promptly, and address differences through dialogue, in good faith, for the mutual benefits of the China-Sri Lanka cooperation.
Both the Samagi Jana Balavegaya and the JVP have slammed the government over the moves to import organic fertiliser from China.
The following is the text of the Chinese Embassy statement: “It has been noticed that recently there are several news reports and statements in Sri Lanka claiming that the organic fertilizer to be imported from China contains harmful bacteria. In this regard, the Embassy of China in Sri Lanka contacted the product supplier, Qingdao Seawin Biotech Group Co., Ltd. to examine the said issue, and found out that these reports and statements, which have already harmed the reputation of the company in question, directly contradict the facts. The Embassy would like to clarify as follows:
* Qingdao Seawin Biotech Group Co., Ltd. (hereafter referred to as Seawin), is a high-tech enterprise focusing in the production of new-type seaweed organic fertilizer, found in 2000 with a registered capital of 132 million RMB (approximately 4.1 billion LKR). Its products, which have passed the EU ECOCERT Organic Certification, OMRI Certification, REACH Certification, and Australian Organic Input Certification etc., have been exported to more than 50 countries and regions in the world, including Europe and the United States. It also set up overseas branch companies in the U.S. and Australia.
* Seawin was selected by the Ministry of Agriculture of Sri Lanka through open tender to supply the urgently needed organic fertilizer.
* The company has undertaken obligations strictly in accordance with the signed contract. In their production process, the organic fertilizer must be sterilized at 600 ?, thus all harmful microorganisms are killed by the high temperature, which is in line with the standards required in the bidding documents, the contract, the letters of credit as well as the widely accepted international standards for organic fertilizers.
* In the process of enforcing the contract, however, the Sri Lanka National Plant Quarantine Services (NPQS) claimed that the sample received contained harmful bacteria including Erwinia, after only THREE (3) days of test and analysis, which lead to the above-mentioned news reports. It is noted that, according to the International Plant Protection Convention, it will take at least SIX (6) days to detect Erwinia. The hasty conclusion made by NPQS lacks scientific basis. As such, the decision made by the authorities to reject Seawin’s organic fertilizer based on the NPQS report is not only questionable but also causing great financial loss to the company.
* Therefore, the Embassy hopes that the related parties on the Sri Lankan side and the Chinese company could coordinate on the principles of respecting science and facts and the spirit of contract with the view to resolving this issue promptly, and address differences through dialogue in good faith for the mutual benefits of the China-Sri Lanka cooperation.”
COPF final report on USD 2.5 mn cyber fraud recommends action against all responsible
The US$2.5 million loss incurred during Sri Lanka’s foreign debt repayment to Australia was a clear case of a cybercrime and theft, Committee on Public Finance (COPF) Chairman Dr. Harsha de Silva told Parliament yesterday.
Presenting the COPF final report on the cyber fraud, Dr. de Silva said the incident amounted to a serious financial crime and called for a comprehensive investigation, by law enforcement authorities, to identify and prosecute all those responsible.
The report revealed serious governance, procedural and operational failures that enabled the fraudulent transfer of public funds, while recommending sweeping reforms to strengthen cybersecurity, financial controls and public debt management systems.
According to the report, officials of the Treasury and the Central Bank bore responsibility for governance lapses that contributed to the failures. It also highlighted the fact that the Ministry of Finance was operating an outdated Microsoft Exchange Server after security support had ended, while basic safeguards, such as multi-factor authentication, had not been implemented.
The COPF said suspicious payment instructions linked to debt repayments involving India, the United Kingdom, Germany and Belgium had also been detected, preventing further losses. However, the US$ 2.5 million fraud materialised only in the repayment transaction involving Australia.
The report has noted that officials had failed to verify lender email domains, relied on unverified email communications and lacked adequate internal controls, allowing the fraud to continue for months.
Although the investigation uncovered system-wide weaknesses across several institutions, only four mid-level Finance Ministry officials had been suspended so far, the report said.
The COPF has recommended a special audit of the foreign debt repayment process, strengthened cybersecurity measures across state institutions, updated financial regulations and improvements to public debt management systems.
by Saman Indrajith
News
Opposition signs no-confidence motion against Justice Minister for dereliction of duty over Negombo Prison deaths
Opposition Leader Sajith Premadasa, together with Opposition MPs, yesterday signed a No-Confidence Motion (NCM) in Parliament against Justice Minister Harshana Nanayakkara.The move comes in response to the unrest at the Negombo Prison, where both prison officers and inmates were killed.
Opposition members said the Minister had failed to fulfill his responsibility and accountability regarding their safety.According to the Opposition group, the NCM seeks to hold the Minister directly accountable for lapses in ensuring protection within the prison system.
The Attorney General yesterday informed the Supreme Court that the government has decided to review the legality of agreements entered into by the previous administration to hand over the country’s electronic visa issuance operations to private companies.
Additional Solicitor General Viveka Siriwardena, appearing for the Attorney General, made the submission when the Supreme Court took up the fundamental rights petitions filed by former MPs President’s Counsel M.A. Sumanthiran, Patali Champika Ranawaka, and Rauff Hakeem, challenging the previous Cabinet’s decision to outsource the e-visa system.
The petitions were heard before a three-judge bench, comprising Chief Justice Preethi Padman Surasena and Justices Achala Wengappuli and Arjuna Obeyesekere.
The Additional Solicitor General informed court that the current Cabinet had appointed a subcommittee to examine the legality of the agreements with the private companies and requested time to report on its findings, stating that the review was still underway.
President’s Counsel Sumanthiran, appearing as one of the petitioners, told the court that although the present government had indicated its intention to cancel the transaction, the petitioners wished to proceed with the case.
He noted that members of the current Cabinet had been named as respondents in the petitions.The Supreme Court directed the petitioners to issue notice on the members of the current Cabinet, named as respondents, and fixed September 29 for further proceedings.
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US$ 2.5 mn cyber heist exposes system failures
Opposition signs no-confidence motion against Justice Minister for dereliction of duty over Negombo Prison deaths
AG informs SC of e-visa agreement review
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