News
COPE questions Ceylon Coal Company officials on Rs. 1.1 billion loss
A probe by the COPE (Committee on Public Enterprises) yesterday found that a loss to the tune of Rs. 1.1 billion had occurred due to the non-specification of the quantity of coal required when calling for tenders for the purchase of the raw material by the Ceylon Coal Company (Pvt) Limited.
The Ceylon Coal Company (Pvt) Ltd. had purchased coal on a short-term basis without following the proper procurement process, the COPE was informed at its meeting at the Parliamentary Complex with its Chairman Prof Charitha Herath presiding.
COPE members Ministers Mahinda Amaraweera, Mahindananda Aluthgamage, State Ministers Nalaka Godahewa, Sarath Weerasekera, Ajith Nivard Cabraal, MPs Patali Champika Ranawaka, Eran Wickramaratne, Jagath Pushpakumara, Premnath C. Dolawatta, S.M. Marikkar and Rauff Hakeem were present at the meeting.
A group of senior officials of the Ceylon Coal Company Ltd had been summoned to respond to the queries of the COPE probe. They told the committee that they had expected to take the advantage of the fluctuations in market prices by purchasing coal on a short-term basis.
COPE Chairman Herath pointed out the need to handle tenders with the approval of the Cabinet of Ministers in accordance with the prescribed procurement process.
The Norochcholai Lakvijaya Power Plant was added to the national grid to meet a 900 MW electricity requirement, but there was a shortfall of 90 MW, the COPE was told.
It was also revealed at the meeting that only 810 MW was actually being generated and that 90 MW shortfall was unavoidable.
Secretary of the Cabinet Procurement Committee had been absent from the Procurement Committee meetings on eight occasions and an Additional Secretary has been appointed for the purpose. Therefore, the COPE Committee noted that there was a problem with the legitimacy of decisions taken. However, officials said that it was possible to appoint an Additional Secretary for the purpose. The Chairman recommended submitting an immediate report to the COPE to ascertain whether this was correct.
The committee asked why three barges purchased by the Ceylon Electricity Board at a cost of Rs. 1100 million had been handed over to the Sri Lanka Navy. The COPE directed the Secretary to the Ministry to submit an immediate report on the procedure followed in handing over the barges and the reasons for their inability to maintain them.
The newspaper advertisements had said that five years’ experience in coal supply was required for the supplier, but applications had been issued to companies with only three years’ experience. The committee was of the view that it had put the coal company at a disadvantage. It also said no formal procedure had been followed on the last day of bidding. The Committee decided that those matters should be duly investigated.
The COPE asked whether the involvement of the Sri Lanka Shipping Corporation in the purchase of coal would result in a loss than the purchase of coal through another institution under the normal tender system. It recommended submitting a report in that regard.
The COPE noted the need for regular meetings with the Ceylon Electricity Board, the Ceylon Shipping Corporation, the Ceylon Coal Company and the relevant ministry and its members to draw their attention to the cost of operating thermal power plants.
The COPE Chairman instructed officials to submit all reports on these matters within one month.
Several ex-Cabinet ministers questioned; Ranil, Sajith, too likely to be summoned
The Commission to Investigate Allegations of Bribery or Corruption (CIABOC) has initiated an inquiry into the shifting of the Agriculture Ministry situated at Rajamalwatte, to a building belonging to the D. P. Jayasinghe Group of Companies, at Rajagiriya, during the Yahapalana government.
The building was rented for a five-year period at a cost of over Rs 1 bn by the yahapalana government within months after the then President Maithripala Sirisena declared opened the 10-storey building complex.
The CIABOC yesterday morning recorded former yahapalana minister Gayantha Karunatilleke’s statement in connection with the investigation. Later in the day, CIABOC recorded the statement of SJB General Secretary Ranjith Maddumabanadara. Earlier CIABOC summoned former ministers Thalatha Atukorale, Wajira Abeywardena and Lakshman Kiriella. At the time of the finalisation of the deal, KIriella was in the UNP.
Sources said that former PM and President Ranil Wickremesinghe, too, was likely to be questioned in this regard. Responding to The Island queries, sources pointed out even SJB leader Sajith Premadasa was expected to be questioned.
The then Speaker Karu Jayasuriya is on record as having said that the building was rented in keeping with a decision taken by the government and not Parliament.
The UNP-SLFP coalition shifted the Agriculture Ministry to accommodate 16 Sectoral Oversight Committees therein.
Although the government paid as much as Rs. 21.5 mn monthly rent to D.P.A. Jayasinghe Company, the Agriculture Ministry failed to move in for over a year. The then Agriculture Minister Duminda Dissanayake sought Cabinet approval on Dec 1, 2015 to rent the building.
According to inquiries conducted earlier by the Presidential Commission appointed to probe state sector corruption, the Agriculture Ministry sought Cabinet approval for a new building after the then Prime Minister Wickremesinghe submitted a cabinet proposal on 21 September, 2015, to use the Agriculture Ministry building for Parliament’s sectoral oversight committees.
PM Wickremesinghe’s Secretary Saman Ekanayake has told the Commission that public funds could have been saved if the several vacant floors of Suhurupaya belonging to the Defence Ministry had been made available to the Agriculture Ministry.
By Shamindra Ferdinando ✍️
Railway sources said that the damages caused to railway tracks could be more than USD 300 mn.
According to UNDP Rapid Crisis Assessment Sri Lanka’s railroad system, over 278 km of railways were exposed to cyclone-related flooding, including 35 railroad bridges nationwide. This figure reflects flooding only, but other hazards (such as localised debris, landslides, or damage to a single bridge) can also disrupt operations, meaning that even relatively small obstructions can render long stretches of railway non-operational. Like road exposure, railway exposure limits mobility and the capacity of affected populations to access key services and infrastructure.
At the level of divisional secretariats, Colombo and Thimbirigasyaya in Colombo District, Ja Ela in Gampaha District, as well as Mannar Town and Nanaddan in Mannar District all registered over 10 km of exposed railways each.
Commissioner-General of Essential Services B.K. Prabath Chandrakeerthi is on record as having said that only 478 kilometers of Sri Lanka’s 1,593-km railway network were currently usable following extensive damage caused by the recent cyclone.
Under Secretary of State for Political Affairs Allison Hooker arrived in Colombo yesterday (11) to underscore US interest in defence, trade and maritime security in line with their Indo-Pacific strategy.
The US embassy here issued the following statement: “Under Secretary Hooker will meet with Sri Lankan counterparts to discuss a wide range of bilateral issues, focused on deepening economic and commercial ties, strengthening defence cooperation, and supporting Sri Lanka’s economic and maritime sovereignty.
The United States and Sri Lanka share a strong and enduring partnership rooted in our mutual commitment to regional security, economic growth, and prosperity for our peoples. Through close cooperation on defence, trade, and maritime security, we are working together to advance a free, open, and resilient Indo-Pacific region.
As we continue to build on our strategic partnership, the United States also stands with the people of Sri Lanka as they respond to the devastating impacts of Cyclone Ditwah. We remain committed to working together to address both immediate challenges and long-term opportunities for our two nations, reflecting our ongoing commitment to the U.S.-Sri Lanka partnership.”
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