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COPE wants AG to submit report on controversial gas deal

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By Saman Indrajith

Committee on Public Enterprises (COPE) has recommended that Auditor General’s Department conduct an investigation into the cancellation of the Term Tender, approved by the Cabinet to buy gas from Siam Gas at USD 96 per metric ton and the purchase of 100,000 metric tons of gas at a cost of USD 129 per metric ton from an Oman company.

COPE chaired by Prof Charitha Herath made this observation when Litro Gas Lanka Ltd., Litro Gas Terminal Lanka (Private) Ltd., and Sri Lanka Insurance Corporation were summoned before COPE as part of an inquiry to ascertain if the orders given by the previous COPE had been implemented and to discuss their current performance.

It was discovered that tenders had been invited to purchase 2,80,000 metric tons of gas and three gas suppliers had submitted bids. Siam gas Company had offered the lowest price (USD 96) per metric ton, and accordingly the Cabinet had approved to award the tender to that company.

The Litro officials said that gas could not be obtained from Siam gas Company due to the economic crisis as banks in Sri Lanka were unable to submit the Standby Letter of Credit (SBLC) to Litro as per the conditions stipulated during the bidding process.

They further said that during the discussions with the company, Siam had expressed its unwillingness to supply gas without a Standby Letter of Credit (SBLC).

Due to that delay, as a temporary solution, Siam gas Company had suggested that it could provide 15,000 metric tons of gas as an emergency purchase. This is the gross amount of gas required for two weeks. However, the company then said it could supply only 6600 metric tons.

Litro officials also said that the Oman company, which had sent prices at USD 129 per metric ton for the Term Tender, had agreed to provide 100,000 metric tons of gas for four months at 25,000 metric tons per month.

Accordingly, after informing the Cabinet of the situation, the term tender given to Siam gas Company had been cancelled and Cabinet and approval granted for the term tender to purchase 100,000 metric tons of gas from the Omani company.

A USD 70 million loan from the World Bank and 20 million of Litro Gas Lanka Ltd., amounting to USD 90 million in total had been used for this procurement, Muditha Peiris, Chairman of Litro Lanka said.

The COPE chairman instructed the Auditor General’s Department to conduct an investigation and report whether the loan amount of USD 70 million from the World Bank had been properly utilised.

Prof. Herath added that buying gas from the Omani company at a higher price instead of the lowest bidder, Siam, could set a bad precedent.

The committee also inquired why Litro had not been able to purchase gas with USD 160 million allocated for the purchase of gas under the Indian Credit Line.The Litro chairman said that according to the conditions of the Indian government, Litro had to buy gas from the Indian company.

Litro officials said several rounds of discussions had been held on the matter. The COPE Chairman recommended to the Secretary to the Ministry of Finance to look into the issue immediately and submit a report within two weeks.

The attention of the COPE was also drawn to the fact that there were only four directors at Litro. It was revealed that according to the law, there should be five members. Since the Ministry of Finance appoints the members of the Board of Directors, COPE pointed out the need to appoint the Board of Directors as per law. The COPE Chairman recommended the Secretary to the Ministry of Finance to take necessary measures on this.

The COPE discussed the suitability of the same person holding the positions of Chairman and Chief Executive Officer of the company.The COPE also inquired whether Litro could obtain financial support from Sri Lanka Insurance Corporation, the parent company. Chairman of the Sri Lanka Insurance Corporation, Vijitha Herath said that the company had been able to purchase gas in the past due to the deposit of nearly five billion rupees in a state bank.

Representing the Secretary of the Ministry of Finance, Saman Fernando. Deputy Secretary to the Treasury, Chairman of the Sri Lanka Insurance Corporation and former Litro Chairman Vijitha Herath, Litro Chairman Muditha Peiris were present at this meeting whilst Thesara Jayawardane, former chairman of Litro Company, joined online.

Parliamentarians Patali Champika Ranawaka, Mahindananda Aluthgamage, Anura Dissanayaka, (Dr.) Harsha de Silva, (Dr.) Sarath Weerasekera, Jagath Pushpakumara, Indika Anuruddha, S.M Marikkar, Jayantha Samaraweera, (Dr.) Nalaka Godahewa, Premnath C. Dolawatta and Madhura Withanage were present at the meeting.



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‘Vision’ Programme Marks Two Years

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Marking the completion of two years of the ‘Vision’ Programme, students from Pinnawala Central College and Matale Siri Seevali College were given an opportunity on Thursday (24) to visit the Presidential Secretariat.

The ‘Vision’ Programme was launched for schoolchildren jointly by the Presidential Secretariat, the Ministry of Education and the Department of Communication of the Parliament of Sri Lanka.

Following a visit to the former Parliament building at the Presidential Secretariat, the students were also briefed on the history of Parliament.

The role of the President’s Fund and its importance to schoolchildren were explained by Senior Additional Secretary to the President Roshan Gamage.

The ‘Vision’ commemorative book, featuring the two-year journey of the ‘Vision’ Programme and its special activities, was also presented to the participating schools.

As part of the programme, valuable plants were also presented to the schools as a symbolic gesture underscoring the importance of environmental conservation.

Director General of Public Relations Dharmasiri Gamage, the Director and Assistant Director of the Tri-Services Security Coordination Unit, the principals and teaching staff of Pinnawala Central College and Matale Siri Seevali College, and students were among those present on the occasion.

President’s Media Division (PMD)

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Sajith vows to scrap 22A under future govt.

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Sajith at yesterday’s protest

Opposition and SJB Leader Sajith Premadasa yesterday vowed that an SJB government would repeal the 22nd Amendment (22A) to the Constitution.Premadasa made the pledge while addressing thousands of SJB supporters who gathered near Parliament to protest against 22A.

Addressing the rally at Polduwa Junction, Battaramulla, Premadasa said the proposed constitutional amendment would undermine democracy and judicial independence and enable the concentration of political power in the Executive.

“Even if they pass it, under an SJB government we will scrap it,” Premadasa told the gathering, claiming that 22A was aimed at paving the way for a one-party state and placing the State under the control of a single political party.

Braving the rain, Premadasa said they had gathered there peacefully and had no intention of resorting to violence.

“We have gathered here to protect democracy,” he said, challenging the government to hold Provincial Council elections if it was confident of facing the people.

Premadasa said the SJB was prepared to work with any democratic and clean political force committed to the country’s progress and public welfare, amid ongoing discussions on cooperation among Opposition parties, including the United National Party.

Premadasa also accused groups aligned with the government of attempting to discourage people from attending the protest through statements and other measures.

SJB General Secretary Ranjith Madduma Bandara said the protest had been organised against the proposed amendment, which the party had opposed on the grounds that it could pave the way for authoritarianism.

The demonstration began around 9 a.m. at Polduwa Junction and coincided with Parliament taking up the proposed 22nd Amendment for debate. Proceedings on the Bill are scheduled to continue today (25).

The Supreme Court has determined that the proposed amendment does not require approval at a referendum and could be passed with a special majority in Parliament.

Meanwhile, traffic congestion was reported on roads surrounding Parliament and Polduwa Junction following the demonstration.

Security was also tightened in and around the Parliamentary complex, with a heavy police presence observed at Polduwa Junction and near the main entrance to Parliament.

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Two retired female Navy officers remanded over disappearance of two women during war

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Two retired female Navy petty officers were ordered to be remanded until October 5 over their alleged involvement in the abduction and disappearance of two women in Trincomalee during the war.

Trincomalee Chief Magistrate M.S.M. Samsudeen yesterday ordered that the two suspects be remanded and directed that they be produced for an identification parade on October 5.

The suspects, residents of Chilaw and Haputale, were arrested after appearing before the CID in connection with another court case. They were subsequently produced before the Trincomalee Magistrate’s Court.

The court was informed that the investigation concerned the alleged abduction of Sasikumar Thenmoli and Mary Delsia, residents of Paalaiyootru, Trincomalee, on or around May 13, 2008.

The CID told court that information uncovered during its investigations indicated that the two women had allegedly been detained at an underground location known as the “Gun Site” at the Trincomalee Naval Base while the two suspects were serving in the Navy. The women were subsequently reported missing.

Further investigations into the alleged abduction and disappearance of the two women are continuing.

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