News
Suspension of costly private power purchase, Covid give relief to CEB
‘Quite baffling Rs 2.8 bn standing charge, Rs 300 mn rent undermined state enterprise’
By Shamindra Ferdinando
The suspension of power purchases from three Independent Power Producers (IPPs) namely Ace Power Matara (20 MW), Ace Power Embilipitiya (100 MW) and Asia Power Sapugaskanda (50 MW) had contributed to the improvement of the financial situation at the CEB, authoritative sources told The Island.
Sources said that the CEB had suspended the agreements on 01 March pending re-negotiation with IPPs as it was felt the annual standing charge alone for three power stations amounted to Rs. 2.8 bn was unfair by the procurer. The decision had been taken at the behest of the then Power Minister Dullas Alahapperuma, who relentlessly pushed for measures required to ease the burden on the cash-strapped state enterprise, sources said, adding that the increase in hydropower output that automatically lessened the country’s dependence on private diesel plants and a significant drop in the demand for electricity due to the crisis caused by the raging Covid-19 epidemic had eased pressure on the CEB. The electricity regulator (PUCSL) is having negotiations with IPPs to finalise approval of a four-year extension of contracts.
Sources said that during Alahapperuma’s tenure as the Power Minister the government had taken the furnace-oil fueled power plants off the national grid, thereby greatly reducing toxic fumes emitted by them.
The three IPPs had strongly pushed for extensions on the basis that being furnace-oil-fired, they were much cheaper for the CEB than auto-diesel-powered plants.
The PUCSL didn’t respond to The Island query regarding the status of CEB’s agreements with Asia Power and ACE Power Embilipitiya as well as Matara? The PUCSL also didn’t explain its role in the discussions with the IPPs.
Gamini Lokuge, last wee, replaced Alahapperuma as the Power Minister, in a mini-cabinet re-shuffle. Alahapperuma received the media portfolio. Sources said that in spite of the ministerial change the Power Ministry was expected to continue with Alahapperuma’s initiatives to curb waste, corruption and other irregularities.
Sources said that two days after Alahapperuma’s exit, the ministry had launched a major building project at Narahenpita to bring all its offices located at different places under one roof. Sources said that the government spent staggering Rs 300 mn annually on renting 37 buildings in Colombo and its suburbs.
Power Ministry spokesperson Sulakshana Jayawardana was not immediately available for comment.
Sources said that though the government had suspended major construction projects due to severe financial constraints, the then power minister Alahapperuma had received the go ahead from Cabinet for the Narahenpita project after he had explained the long-term benefits of it.
Alahapperuma was shifted from the Power ministry to the Media portfolio the day before he was to complete one-year there. Several weeks before the Cabinet reshuffle, CEB Chairman Eng. Vijitha Herath was replaced by M.M.C. Ferdinando. Ferdinando served as the Secretary to the Ministry of Power and Energy during President Mahinda Rajapaksa’s tenure.
Major changes took place at the Power ministry in spite of significant improvements at the ministry with the CEB making a profit in the second quarter since 2010.
News
Presidential Suite at Sri Jayewardenepura General Hospital opened to the public
The special ward at Sri Jayewardenepura General Hospital, which had until now been reserved exclusively for the use of the Executive President, was opened for the public for the provision of medical treatment to the general public from Tuesday (24).
This decision was taken jointly by the Ministry of Health and the hospital administration, in accordance with instructions given by President Anura Kumara Dissanayake.
Constructed in 1984 with a grant from the Government of Japan, Sri Jayewardenepura General Hospital was originally established with a capacity of 1,000 beds. However, in line with the initial design, an additional special unit, designated as Room No. 1001, was included exclusively for the personal use of the Executive President.
Over the 42 years since the hospital’s establishment, this facility has been utilised only on a very limited number of occasions. Nevertheless, it has been maintained over the years in anticipation of a possible visit by a sitting President, without being made available for patient use.
With effect from today, this special unit will be utilised for the benefit of general patients receiving treatment at the hospital. This step has been taken in line with the Government’s policy of ensuring the more efficient use of public assets and resources to meet the healthcare needs of the people.
News
Cabinet Sub-Committee appointed to streamline the Public Service meets for the second time
The second meeting of the Cabinet Sub-Committee appointed to ensure the orderly functioning of the public service was held on Tuesday (24) afternoon at the Presidential Secretariat, under the patronage of Prime Minister Dr Harini Amarasuriya.
Extensive discussions were held on the immediate measures required to ensure the uninterrupted delivery of government services to the public and to address the challenges faced by public servants.
Attention was also drawn to maintaining the continuous operation of services under the Ministries of Public Administration, Provincial Councils and Local Government, Health, Education, and Justice. Accordingly, it was decided to ensure that examinations are conducted as scheduled and that essential medicines are supplied to hospitals without disruption.
The challenges in passenger transport services and the railway transport system, as well as future measures, were also discussed at length. Focus was also placed on the steps to be taken regarding the transportation of essential goods.
In addition, attention was given to introducing digital service systems to facilitate working from home and to enhance the efficiency of existing services. It was also noted that these activities would be supervised under the Ministry of Digital Economy.
Instructions were further issued to review the current energy management practices across all ministries and departments and to take steps to implement necessary policy changes.
Minister of Public Administration, Provincial Councils and Local Government A. H. M. M. H. Abeyaratne, Secretary to the Prime Minister Pradeep Saputhanthri, Chief of Staff to the President Prabath Chandrakeerthi, Secretary to the Ministry of Public Administration, Provincial Councils and Local Government S. Aloka Bandara, Secretary to the Ministry of Health and Mass Media Dr Anil Jasinghe, Secretary to the Ministry of Energy Professor T. M. Udayanga Hemapala, Secretary to the Ministry of Digital Economy T. R. W. S. Dhanapala, Secretary to the Ministry of Justice and National Integration Ayesha Jinasena, PC, Senior Additional Secretary to the President Roshan Gamage, and Chairman of the Ceylon Petroleum Corporation D. J. A. S. S. Rajakaruna, along with other committee members, were also present at the occasion.
News
Energy Minister indicted on corruption charges ahead of no-faith motion against him
… first NPPer to face charges under Section 70 of Bribery Act
Colombo High Court has issued summons on Energy Minister Kumara Jayakody to appear in court today (27) to serve indictment in a corruption case filed by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC). Action has been taken under Section 70 of the Bribery Act. The losses suffered by the government have been estimated at Rs. 8,859,708.
National List (NL) MP Jayakody is the first NPP minister or politician at any level to be indicted for corruption. The NPP parliamentary group consists of 159 including 18 NL members.
The summons has been issued by High Court judge Rashantha Godawalage.
Although CIABOC previously in many instances arrested those who had been under investigation and produced them before Magistrate courts, Minister Jayakody has been directly summoned by the Colombo High Court.
The investigation into alleged corruption in procurement during the time Jayakody served the Ceylon Fertilizer Corporation (CFC) started after the change of government in 2015.
According to the CIABOC investigation, the alleged instance of corruption took place in early 2014 towards the tail end of Mahinda Rajapaksa’s second term. At that time Jayakody was CFC’s Procurement Manager, and the CIABOC dragged the investigation until its current leadership under overall speeding up of the cases recently completed the inquiry.
Parliament recently announced that the debate on no-faith motion moved against Minister Jayakody over alleged irregularities in the procurement of substandard coal for the country’s only coal-fired power station at Norochcholai.
SJB MP Mujibur Rahman said that the NPP, having campaigned on an anti-corruption platform during presidential and parliamentary polls in 2025 couldn’t under any circumstances shield minister Jayakody. The indictment of Jayakody over a corruption case that had happened in 2014 and the failure on his part to fulfill obligations as Energy Minister under the current dispensation couldn’t be considered separately, the Colombo District MP said.
The issue at hand is whether the NPP would try to protect Jayakody at the expense of the government, MP Rahman said. Once the NPPer is formally charged in a corruption case the government would find it extremely difficult to keep him in the cabinet, the former UNPer said.
SJB lawmaker S.M. Marrikar recently warned Minister Jayakody that he should be prepared to serve a jail term. The warning was issued at a media briefing that primarily dealt with the alleged irregularities in the procurement of coal and their decision to move a no-faith motion against the minister. Marrikar explained how the crisis coupled with the growing diesel shortage could compel the government to increase electricity tariffs by as much as 18 percent next week. MP Marikkar said that they were eagerly waiting to see who backs Jayakody at the expense of the government during the upcoming vote on the no-faith motion.
There had been a previous case of a sitting minister being charged under the Bribery Act in respect of corruption perpetrated as a government servant. MP Rahman said that they intended to intensify the ongoing campaign against the government on the strength of the unprecedented corruption case and the outcome of the no-faith motion. “Of course, they have the numbers to defeat our no-faith motion. But, in doing so, they end up with egg on their face. That is the reality,” Rahman said, adding that those responsible for waste, corruption and irregularities whichever political parties they represented shouldn’t expect special status.
MP Rahman alleged that the CIABOC granted special status to Minister Jayakody. All those who had been indicted previously were first called to the CIABOC, recorded their statements and then arrested, handcuffed and produced in court. The media was afforded the opportunity to cover their humiliation, MP Rahman said, but in this case the powers that be paved the way for the accused to receive indictments directly from the Colombo High Court.
“Let us see whether the Bar Association of Sri Lanka responds to this development,” MP Rahman said.
By Shamindra Ferdinando
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