A 27 million rupee fraud committed at the state engineering corporation asphalt plant 

Oct 20, 2015

State engineering corporation workers union said a 27 million rupee fraud has been committed during the Rajapaksa regime during the procurement of raw materials for the Asphalt production plant Horana owned by the State Engineering Corporation. The union has urged the subject minister Sajith Premadasa to conduct an investigation into the matter.

This 27 million fraud have been occurred during the procurement of Diesel, Bitumen, metal and stone powder needed for production. The State Engineering workers union said they have a doubt that the suppliers had any links with the former political authority of this fraud. This fraud has been committed during the time when Wimal Weerawansa was serving as the minister for the state engineering services owned by the State Engineering Corporation.

Regular state procurement process has been breached and quotations have been chosen from selected suppliers. Meantime diesel supplies have been called from companies with no accepted standards. The same process has been followed when selecting the suppliers for the purchase of Bitumen. While there are recognized suppliers available to procure Bitumen, suppliers personally known to the authorities has been chosen.

The state engineering workers said these purchases are made for a higher price from different companies committing large financial frauds when these raw materials are available to buy for minimal prices from Ceylon Petroleum Corporation. These irregularities have been occurred for the requirement of the former general manager and the deputy general manger.

Purchasing in contrary to the public procurement guidelines, calling quotations without transparency, giving the orders to selected suppliers, giving more orders and payments to suppliers who has defaulted supplies, Purchasing for higher prices more than the market
rate, adding VAT and issuing payments for products which there are no VAT has been committed against the corporation for more than 27 million. The Engineering corporation workers urge the minister to provide these information to the police financial crime unit or any other law enforcement agency and take legal action against whoever responsible for this financial fraud.