Connect with us

News

Opposition questions delay in probing 2020 sugar scam

Published

on

Public Security Minister Ananda Wijepala told Parliament yesterday that the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) has commenced an investigation into the 2020 sugar scam.

He said the probe had been initially handled by the CID, which sought the Attorney General’s instructions on further proceedings. Acting on those instructions, the CID referred the matter to CIABOC for further investigation. The findings so far have been handed over to CIABOC, and the Commission was now conducting inquiries, the Minister said.

Wijepala was responding to a question raised by Badulla District SJB MP Chaminda Wijesiri, who asked what action the incumbent government had taken to identify those responsible for the sugar scam.

“There were files of documents in the possession of Minister Wasantha Samarasinghe on this scam, and your party pledged to take action against those responsible. What action has been taken so far,” Wijesiri asked.

Deputy Minister of Economic Development, UDN Jayaweera, said the government at the time had reduced the Special Commodity Levy on sugar to 25 cents per kilogram by Gazette Extraordinary No. 2197/12 dated October 13, 2020. The reduction came into effect on October 14, 2020.

He said the decision was taken in line with instructions issued by the then Secretary to the President, conveyed in a letter dated October 13, 2020, to the Secretary to the Ministry of Finance to reduce taxes on four commodities — sugar, lentils, canned fish and big onions — with a view to easing the cost of living.

Asked to name the companies that had imported sugar after the tax reduction, the Deputy Minister said the importers included Pyramid Wilmar Company, Peliyagoda Trading Company, AMRO Sugar, Global Trading Company, Vincent Trading Company, RG Brothers, Woodland and Company, Cargills Food Company, and VD Holdings and Commodities.

Jayaweera said that, according to an Auditor General’s report dated March 23, 2022, a total of 336,949 metric tonnes of sugar had been imported between October 14, 2020 and February 28, 2021 under the reduced tax regime. Of this, 277,715 metric tonnes were white sugar and 59,234 metric tonnes were brown sugar. The revenue loss to the Government due to the tax reduction was estimated at Rs. 16.76 billion.

Following an inquiry, the Committee on Public Finance on June 21, 2022 instructed the Chief Accounting Officer of the Ministry of Finance to conduct a probe into the scam with the assistance of the CID. Accordingly, the Finance Ministry lodged a complaint with the CID through the IGP on July 12, 2022.

The CID on January 2, 2025 sought the assistance of the Auditor General to carry out a forensic audit into the matter. The Auditor General, in a communication dated March 7, 2025, informed the CID that it had no legal provision to record statements from certain stakeholders and advised that such statements should be recorded by the CID. Meanwhile, the Inland Revenue Department has been directed to assess the profits earned by the importers and recover losses from them, the Deputy Minister said.

Minister Wijepala added that the CID had subsequently sought further instructions from the Attorney General, following which the matter was referred to CIABOC, which is now conducting the investigation.

By Saman Indrajith



Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

News

Coal scam has become litmus test for NPP: FSP

Published

on

The scam involving the import of substandard coal has become the litmus test for the NPP Government, says the Frontline Socialist Party.The substandard coal scam has become the litmus test for the NPP government’s integrity and transparency, Frontline Socialist Party (FSP) Education Secretary Pubudu Jayagoda said on Thursday, alleging serious irregularities and contradictions in the government’s handling of coal procurement for the Lakvijaya Power Plant.

Addressing the media in Colombo, Jayagoda strongly rejected recent statements made by Tilvin Silva, General Secretary of the JVP, during an interview with a state television channel on the ongoing coal tender controversy. He said several of Silva’s claims were factually incorrect and echoed earlier statements made by the Minister of Power and Energy that had already been abandoned after being proven false.

“There are serious inaccuracies in the views expressed by Tilvin Silva. Some of these false points were first raised by the Power Minister a week or two ago, but he stopped repeating them once we produced documentary evidence,” Jayagoda said, adding that the JVP General Secretary appeared to be “not up to date with the facts.”

Jayagoda rejected claims that coal had previously been purchased without calling for tenders from a politician’s company at inflated prices. He said that since the Lakvijaya Power Plant commenced operations in 2008, tenders had been called annually and contracts awarded to the lowest bidder.

He also dismissed assertions that no tenders were called in 2023. “The Power Minister initially made this claim, too, but stopped after we presented the tender advertisements,” Jayagoda said. He questioned contradictory statements made by government representatives, pointing out that while Silva claimed no tender was called in 2023, references to 2023 tender specifications had been publicly cited by Deputy Minister Kumara Jayakody.

“If no tender was called in 2023, how were tender specifications published that year?” Jayagoda asked, describing the claims as mutually contradictory.

According to Jayagoda, tenders were, indeed, called in 2023 and the contract was awarded to Coral Energy. When that company failed to supply coal on time, the supply responsibility was transferred to Black Sand. He further rejected claims that no tenders were called in 2024, explaining that during the bidding process a company named Potentia had offered a lower price than the initial lowest bidder.

“Based on approvals from the Technical Evaluation Committee, the Procurement Committee, the Cabinet, and finally the Attorney General, coal was purchased from the lowest bidder,” he said, adding that any doubts regarding the legality of the process could be investigated through proper legal channels.

However, Jayagoda stressed that the controversy was not merely about whether tenders were called, but about how the process was manipulated. He listed several concerns raised by the FSP from the outset, including a four-month delay in calling for tenders, changes to tender specifications, and the tender period being reduced by half.

“Urgency was cited as the justification for these changes, yet there was a six-week delay in awarding the tender. That clearly shows there was no real urgency,” he said.

Jayagoda also alleged that laboratory reports were concealed when substandard coal shipments were imported, in order to protect the supplying company. He said that despite a contractual clause requiring the tender to be cancelled if two shipments failed quality standards, the government continued with the order. He further accused the authorities of violating the agreement by approving emergency purchases in a way that benefited the supplier.

“The entire process is suspicious,” Jayagoda said. “A Minister will not resign unless they admit to fraud. But it is the responsibility of the President and the government to conduct an independent investigation, determine whether fraud has occurred, and remove the Minister if wrongdoing is established.”

He concluded by reiterating that the coal tender controversy would serve as a decisive test of the government’s commitment to accountability. “This is the litmus test for the integrity and transparency of the government,” Jayagoda said.

Continue Reading

News

INS Gharial delivers 10 Bailey Bridges to Lanka

Published

on

INS Gharial delivering Bailey Bridges to Colombo Port on Thursday

A consignment of 10 Bailey Bridges arrived in Colombo from Visakhapatnam aboard the Indian Navy ship INS Gharial and was formally handed over at a ceremony held on 05 February.The bridges were handed over by the Acting High Commissioner of India to Sri Lanka, Dr. Satyanjal Pandey, to Deputy Minister of Ports and Civil Aviation, Janitha Ruwan Kodithuwakku.

The additional Bailey Bridges have been provided under India’s grant assistance of USD 5 million for post-Cyclone Ditwah reconstruction, aimed at strengthening critical connectivity infrastructure in affected areas. Another consignment, carrying the remaining bridge components, is expected to arrive shortly.

The supply of Bailey Bridges forms part of India’s comprehensive USD 450 million Reconstruction and Rehabilitation Package announced by India’s External Affairs Minister, Dr. S. Jaishankar, during his visit to Sri Lanka, following Cyclone Ditwah.

The newly supplied bridges are to be installed at various locations across the country. Technical assessments for installation are being carried out by Indian Army engineers, in close coordination with the Sri Lankan Army and the Road Development Authority (RDA).

India has previously supplied four Bailey Bridges to Sri Lanka, two of which were installed in the Kilinochchi District and two along the Kandy–Ragala Road. These bridges have played a key role in restoring connectivity in difficult and hilly terrain, improving access for local communities and facilitating the resumption of essential services, livelihoods, and economic activity.

Continue Reading

News

Anusha Palpita further remanded until 20 Feb.

Published

on

Former Secretary to the Ministry of Mass Media and former Chairman of the Telecommunications Regulatory Commission of Sri Lanka (TRCSL), Anusha Palpita, was further remanded until 20 February by the Colombo Chief Magistrate’s Court.

The Court issued this order after considering the facts presented by the Bribery Commission and the attorneys representing the suspect.

Palpita was taken into custody and subsequently produced before the court on 23 January in connection with an investigation conducted, based on information received by the Bribery

Commission regarding the failure to disclose the source of assets amounting to Rs. 46 million, the Commission stated.

According to the Bribery Commission, Anusha Palpita arrived at the Commission on 23 January 23 was taken into custody after recording his initial statement.

The arrest was made on the charge of accumulating significant assets and property, exceeding his income, during a specific period, following an investigation into assets gathered beyond his legal earnings, within that time frame.

Continue Reading

Trending