News
Over one-billion-rupee loss from Harin’s Google Loon project alone
COPE finds ICTA a drain on public purse
By Saman Indrajith
An investigation conducted by the COPE (Committee on Public Enterprises) has revealed that the Information and Communication Technology Agency of Sri Lanka (Pvt) Ltd (ICTA) drained public funds running into billions on failed projects.
The COPE inquiry on Tuesday found that the e-Pension Project initiated by the ICTA at a cost of Rs 278.54 million had come a cropper.
The ICTA was entrusted with the responsibility of procuring the hardware and software for the project using government funding to provide pension online to the pensioners of the Western Province, covering the District Secretariat, the Armed Forces, the Department of Prisons, the Department of Railways and the Department of Civil Defence. However, given various software and hardware issues, the project was not implemented countrywide and abandoned on Nov 1, 2013 causing a loss of Rs 278.54 million.
Parliament sources said that the COPE investigation had found that the Google Loon Project intiated by Harin Fernando was also among the listed projects of ICTA. Although the Google Loon project to provide Internet access countrywide had not been executed, the ICTA had suffered over one-billion-rupee loss on the project. Rs. 1,851,322 had been spent to get the Google Loon equipment released from the customs, the COPE inquiry has revealed Another Rs. 6,427,941 was spent on project promotions.
The COPE investigation chaired by Prof. Charitha Herath was attended by Minister Mahinda Amaraweera, State Ministers Susil Premajayantha, Indika Anuruddha and MPs Eran Wickramaratne, Jagath Pushpakumara, Premnath C. Dolawatta, S.M. Marikkar, Patali Champika Ranawaka and Shanakiya Rasamanickam.
It was also found that Rs. 850.47 million had been approved and Rs. 148.33 million spent on another failed project titled Lanka Government Network (LGN) launched by ICTA under the yahapalana government.
The LGN launched to enhance efficiency of the public service by bringing all state institutions under one umbrella network had also failed, sources said.
MP Patali Champika Ranawaka pointed out that the ICTA amidst the failure after failure continued to launch more than 500 other similar projects adding to the losses.
It was also revealed that the Rs. 32.5 mn spent on the procurement of the project by the National Intellectual Property Office under the name ‘e-NIPO’ had been utilised by the ICTA to pay salaries of its officials.
It was disclosed that a previously failed project called ‘e-Local Authorities’ had been re-launched in 2016. The investigation revealed that Rs. 39 million had been spent as at Dec 31, 2017, but that amount had not been included in the performance reports.
COPE Chairman Prof. Herath pointed out that ICTA 2017 corporate plan had cost Rs. 2,737,000, but been discarded later.
Prof. Hearth directed ICTA senior officials to conduct their own investigation from 2003 to 2019 with regard to the issue of corporate plans and report back to the COPE. He had also instructed the officials to initiate legal action against those responsible for the losses, Parliament sources said.
News
Construction of Jet A-1 Aviation fuel pipeline and new oil tank complex at Muthurajawela begins under President’s patronage
President Anura Kumara Dissanayake said that the Government’s objective is to maintain a strong state presence in the energy market while providing an efficient service to the people, adding that significant progress has been achieved towards this objective over the past two years and that a strong energy market that does not place a burden on the people is now being built in Sri Lanka.
The President made these remarks on Friday (02) morning while attending the commencement of construction of the Jet A-1 pipeline system of the Ceylon Petroleum Corporation (CPC) and two new oil storage tank systems belonging to the CPC and the Ceylon Petroleum Storage Terminal Limited (CPSTL).
The projects are being implemented in line with the Government’s national objective of developing infrastructure in the energy sector, with the aim of ensuring the security of aviation fuel supplies, reducing supply costs and providing the capacity required to meet future demand for aviation fuel.
A dedicated pipeline and associated tank complex are being constructed to connect Muthurajawela with the Bandaranaike International Airport in Katunayake, with the aim of meeting the future demand of the country’s aviation sector, ensuring the security of aviation fuel supplies and reducing transportation costs.
Construction has commenced on five new Jet A-1 fuel storage tanks with a total capacity of 92,000 cubic metres. These comprise two large Jet A-1 tanks, each with a capacity of 30,000 cubic metres; two medium-sized tanks, each with a capacity of 15,000 cubic metres; and an additional tank with a capacity of 2,000 cubic metres. The fuel supply pipeline system will be connected to the airport through a 21-kilometre-long underground pipeline with a diameter of 10 inches from the Muthurajawela tank complex. The project is scheduled for completion within 30 months.
Meanwhile, as part of ongoing efforts to strengthen and expand storage and infrastructure facilities in the petroleum industry, the Ceylon Petroleum Storage Terminal Limited (CPSTL) commenced construction today of three new storage tanks at the Muthurajawela Terminal.
Upon completion, the three-tank system, comprising two tanks with a capacity of 15,000 cubic metres each and one tank with a capacity of 10,000 cubic metres, will provide an additional total storage capacity of 40,000 cubic metres.
This will further enhance the petroleum storage capacity of the terminal and support the continued development of the country’s petroleum infrastructure. The project has a contractual period of 18 months and is scheduled for completion in April 2028.
The tanks are being constructed in compliance with relevant international standards and recognised industry best practices, ensuring enhanced safety, reliability and operational efficiency. The additional storage capacity will strengthen the country’s fuel reserves, improve operational flexibility and support the reliable and uninterrupted distribution of fuel products to meet the country’s growing energy requirements.
Minister of Ports and Civil Aviation and Minister of Energy Anura Karunathilaka said,
“We are now in an era of energy transition. The world is rapidly moving towards the use of clean energy. The use of electric vehicles is very important in this regard, and our country is also now moving in that direction.
The use of solar energy is also important. We expect to add 1,200 megawatts of solar power capacity to the national grid by 2029.
As a country, we must focus not only on controlling fuel prices but also on controlling fuel consumption. The public also has a major responsibility in this regard.
It is particularly important to change our patterns of energy consumption. Greater energy security can be achieved by avoiding periods of high energy demand, shifting towards electricity use and using fuel-efficient vehicles, particularly electric vehicles.”
Chairman of the Ceylon Petroleum Corporation D. J. Rajakaruna said,
“We faced a major challenge due to the war in the Middle East. However, with the intervention of the President, relief was provided to the people and the situation was managed very effectively.
As a result, while diesel prices in the global market increased by 91%, the increase in Sri Lanka was only around 39.5%. While petrol prices in the global market increased by 80%, the increase in Sri Lanka was only around 41%.
Despite providing fuel at lower prices in this manner, the Corporation has recorded a profit of Rs. 28 billion this year. We also recorded a profit of Rs. 36 billion last year.
This may raise the question of why fuel prices are not being reduced when there are such profits.
However, we have used those profits to commence a number of infrastructure development projects at the institution.
These include adding the capacity of 11 tanks, including the construction of six tanks that had previously been abandoned, to increase fuel storage capacity; modernising our oil-filling section, which is more than 90 years old, and establishing a gantry system similar to that at Muthurajawela; laying two new pipelines for unloading fuel from the port to Kolonnawa; constructing a new pipeline to transport Jet A-1 fuel to Katunayake; and upgrading the pipeline system and laying new pipelines, among many other projects.
We are implementing these projects using those profits. Therefore, we have returned the benefits to the people through these investments.”
The Minister of Science and Technology, Professor Chrishantha Abeysena; Deputy Minister of Energy, Arkam Ilyas; Member of Parliament Kumara Jayakody; Secretary to the Ministry of Energy and Senior Additional Secretary to the President, Russell Aponso; foreign ambassadors; government officials including officials of the Ministry of Energy and the Ceylon Petroleum Corporation; and representatives of Sinopec were among those present at the occasion.
President’s Media Division (PMD)
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.
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