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Procurement of LP gas: Ex-COPE Chief alleges embezzlement of funds amounting to Rs 1.3 bn

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Auditor General says probe completed; Litro response to be sought

By Shamindra Ferdinando

Former Chairman of the Committee of Public Enterprises (COPE) Prof. Charitha Herath, MP, has said the LP gas supply had been disrupted for eight months as a Litro Gas Chairman had cancelled a tender awarded to a supplier.

The SLPP National List member said so addressing a public meeting organised by the SLPP rebel group, in Kandy, on Saturday (10). Herath was referring to the appointment of Viyathmaga activist Theshara Jayasinghe as Chairman of Litro on July 06, 2021. The LP gas supply remained crippled until Jayasinghe’s resignation on 14 April 2022. Jayasinghe was succeeded by Vijitha Herath, who was replaced by Muditha Peiris on 13 June. The incumbent Chairman previously served as the Managing Director of the state enterprises owned by Sri Lanka Insurance Corporation (SLIC).

Herath claimed that a dispute between local agents of the supplier chosen by Litro and another led to the disruption of supplies in the wake of the cancellation of the tender. Former Foreign Minister Prof. G.L. Peiris and Dr. Nalaka Godahewa, who received the media portfolio during the tail-end of the Gotabaya Rajapaksa administration, were among those present at the meeting. The rebel group consists of 13 members. At the time the then President Gotabaya Rajapaksa appointed Theshara Jayasinghe as Litro Chairman, Anil Koswatte served as the Chairman and the state enterprise has been embroiled in a controversy over the suspension of state audit.

Prof. Herath said it had not been possible to restore the cooking gas supply until the World Bank provided USD 70 mn to the government. Sri Lanka added USD 20 mn to the funds provided by the World Bank. The lawmaker claimed that the supplier whose bid had been rejected earlier had secured the contract through a front. He alleged that a metric ton of gas that could have been procured previously at a cost of USD 96 was finally obtained at USD 129.One-time Media Ministry Secretary alleged that even the funds provided by the World Bank at a time the country was struggling to resolve the economic crisis had been misappropriated.

Acknowledging that they didn’t want to cause another disruption, Prof. Herath said the crisis had been exploited by interested parties to embezzle as much as Rs 1.3 bn. The people had elected Gotabaya Rajapaksa President, hoping for an end to waste, corruption and irregularities. Unfortunately, the public faith in the former President was shattered.Auditor General W. P. C. Wickremaratne yesterday told The Island that his officers had completed the inquiry and would soon send their report to the state enterprise concerned for its response.

The COPE, under the chairmanship of Prof. Herath, also inquired into the failure on the part of Litro to utilize USD 160 mn allocated through the Indian credit line for the procurement of gas. The parliamentary watchdog recommended the appointment of the members of the Board of Directors of Litro through the parent company SLIC instead of through the Ministry of Finance.

Prof. Herath said an investigation had to be conducted, through the Auditor General’s Department, on the cancellation of the term tender, which had been approved by the Cabinet to buy gas from Siam Gas at USD 96 per metric ton and opting to buy 100,000 MT of gas at a cost of USD 129 per metric ton from an Oman company. Instructions had been issued when the members of the top management of Litro Gas Lanka Ltd., Litro Gas Terminal Lanka (Pvt.) Ltd., and Sri Lanka Insurance Corporation were summoned before the COPE to implement the orders given by the previous Committee on Public Enterprises and to discuss the current performance.

Inquiries revealed that since the term tender for the purchase of gas ended in February 2021, tenders had been invited for 2,80,000 metric tons of gas and three gas suppliers submitted bids accordingly. Siam Gas Company submitted the lowest price as USD 96 per metric ton and accordingly the Cabinet has decided to award the tender.The Litro management is on record as having told the COPE 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 announced during the bidding process.



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Indo-Lanka MoUs unlikely to be tabled in Parliament any time soon

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Ali Sabry

…of seven SOCs only one constituted so far

Sri Lanka’s controversial MoU on Defence Cooperation with India was unlikely to be taken up any time soon in Parliament in spite of the House Sectoral Oversight Committee (SOC) on Governance, Justice and Civil Protection that has been assigned defence, authoritative sources told The Island.

Of the seven SOCs only one was activated with the recent election of Dr. Najith Indika, MP, as the Chairman of the Sectoral Oversight Committee on Governance, Justice, and Civil Protection of the Tenth Parliament.

The inaugural meeting of the current parliament was held on 21 Nov., 2024.

Sources said that the parliament had met for the last time yesterday (10) before the Sinhala and Tamil New Year holiday. It is scheduled to meet again on May 8.

The UNDP that has financially backed the establishment of the SOC system to help strengthen the role of the parliament recently reached a consensus with the government to reduce the number of SCOCs from 17 to seven. The Island, in writing, asked for the UNDP’s reaction to the operation of SOCs but had not received a response at the time this edition went to press.

The SOCs have the power to examine any Bill, except the Bills defined in Article 152 of the Constitution, Treaty, Reports including the Annual and Performance Reports relating to the institutions coming under its purview or any other matter referred to the Committee by Parliament or any Committee or a Minister relating to the subjects and functions within their jurisdiction.

Sources said that out of the seven SOCs only one had been activated during the past five months though the government and the Opposition agreed to share the leadership of them.

Accordingly, it was agreed that the government would appoint chairpersons to four SOCs –– Economic Development and International Relations, Health, Media and Women’s Empowerment, Science, Technology and Digital Transformation and Governance, Justice and Civil Protection .

It was also agreed that the Opposition would appoint chairpersons to the SOCs on Infrastructure and Strategic Development, Education, Manpower and Human Capital, and Environment, Agriculture and Resource Sustainability to the Opposition.

India and Sri Lanka on April 5 signed six MoUs on HVDC interconnection for import/export of power, cooperation in the field of sharing successful digital solutions implemented at population scale for digital transformation, defence cooperation, multi sectoral grant assistance for Eastern province, health and medicine and pharmacopoeia cooperation. In addition to them, India, Sri Lanka and UAE signed a tripartite MoU cooperation in development of Trincomalee as an energy hub.

The Island  asked Ali Sabry, PC, who served as foreign minister during Ranil Wickremesinghe’s tenure as the President (July 2022 to Sept 2024) whether the seven MoUs had been discussed during that period. We also asked him whether those MoUs should have been discussed at SOCs before finalisation.

Sabry said: “Most of the MOU to my knowledge were discussed except the one on Defence Cooperation, which I am unaware of. General procedure is the relevant line ministry prepares the initial draft and gets the input from the Foreign Ministry and goes for stakeholder consultation of all ministries and agencies involved. Then the President’s Office grants its sanction and with the approval of the AG, it goes before the cabinet of ministers. With Cabinet approval, the government could sign the MOU.”

Sabry said that he was of the opinion that once the government signed a particular MoU, it should be placed before the parliament. “MOU’s are generally not legally binding and only signify the desire to work together. If the signed MoUs were to be implemented, then they have to be followed by agreements or laws.”

He emphasised the pivotal importance of transparency in the whole process. The ex-minister said: “I think transparency is crucial in these matters. Concealment leads to speculation and assumption of the worst. The MOUs should be tabled in Parliament for public information. Discussion at the relevant SOCs would have been helpful. There are growing fears fueled by lack of information in the public domain. This is a private comment, not to be attributed to me.

Asked whether MoUs, particularly the ones on defence and energy had to be approved by the Attorney General, the former minister said that the AG has to advise the MoUs compatibility with the Constitution. “But Article 157 of the Constitution does not apply; the 2/3 majority stipulated there envisages only investment treaties.” Foreign Minister Vijitha Herath assured Parliament on April 8 that the AG had cleared all seven MoUs and none of them were inimical to the country.

By Shamindra Ferdinando

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LG polls: Appeal Court orders EC to accept 35 additional nomination papers

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The Court of Appeal yesterday ordered the Election Commission (EC) to accept 35 additional nomination papers for the 2025 local government elections, which had been previously rejected by election officials.

The ruling was issued yesterday by a bench comprising Acting President of the Court of Appeal, Justice Mohamed Lafar Tahir, and Justice Priyantha Fernando. The court ordered the relevant Returning Officers to accept the nominations following hearings on several petitions filed by political parties and independent groups challenging the rejections.

Last week, the Court of Appeal ordered the EC to accept 37 previously rejected nomination papers.

by A.J.A. Abeynayake

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Defence MoU with Quad member will drag Sri Lanka further into new cold war: CP

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Dr. G. Weerasinghe

The Communist Party (CP) of Sri Lanka yesterday (10) expressed grave concern over the NPP government’s unilateral decision to enter into a defence MOU with Quad-member India.

The CPSL urged All democratic and progressive forces to pressure the government to reveal the contents of the defence agreement with India. It also asked the NPP government to revive the Indian Ocean Peace Zone proposal at the UN and mobilise global opposition to militarisation in the region. All democratic and progressive forces had to build a United Front against a New Cold War, the CP has said.

General Secretary of CP Dr. G. Weerasinghe has issued the following statement: “This decision has been taken without consultation or debate in Parliament and in the context of a New Cold War and heightened militarisation of the Indian Ocean.

During Indian Prime Minister Narendra Modi’s visit to Sri Lanka from 4-6 April, a defence MOU was exchanged between Secretary of the Ministry of Defence of Sri Lanka retired Air Vice Marshal H.S. Sampath Thuyacontha and Indian Foreign Secretary Vikram Misri.

Indian media has framed this MOU as being part of Indian strategy to counter China’s presence in the region.

President Anura Kumara Dissanayake assured Modi that Sri Lanka, “will not permit its territory to be used in any manner inimical to the security of India as well as towards regional stability”. While the CPSL has no fundamental objection to this, questions remain over India’s own commitment to regional stability.

The fact is that India is a member of the Quad and has partaken in US efforts to contain China in a New Cold War. In 2024, current US Secretary of State Marco Rubio tabled a bill in congress to grant India a status on par with NATO members. During a meeting between Modi and US President Donald Trump in February, India and the US entered into a 10-year defence partnership framework to transfer technology, expand co-production of arms, and strengthen military interoperability.

By entering into defence agreements with India, there is a very real danger of Sri Lanka being dragged into the Quad through the back door as a subordinate of India. Sri Lanka could become a de facto part of the Indo-Pacific Strategy and compromise its non-aligned status. This would be antithetical to Sri Lanka’s interests as China is a major investor and trade partner for the country and has supported our sovereignty in international fora.

Sri Lanka is currently not directly embroiled in any conflict with an external actor and therefore has no need to enter into defence agreements. The last defence agreement that Sri Lanka entered into was with the UK-Ceylon Defence Pact (1947-1957), which was a neocolonial arrangement detrimental to Sri Lanka’s sovereignty and international relations.

The defence MOU with India could also be interpreted as a step towards further militarisation of the Indian Ocean, which is a violation of the UN Declaration of the Indian Ocean as a Zone of Peace which both countries supported.”

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