Norochcholai Power Plant US$ 300 M ‘pocketed in commission’

By Lashane Cooray-2013-02-23 The main opposition, United National Party (UNP), has accused that the government's estimated cost of US$ 1,300 million for the construction of the Phase 1 of Norochcholai Power Plant, included US$ 300 million 'pocketed in commission'. They alleged the actual construction cost was US$ 1,000 million, sans commissions. "The cost of Phase 1 of Norochcholai has now been estimated to be US$ 1,300 million. The excess US$ 300 million had been pocketed as commissions," UNP MP Harin Fernando alleged, addressing the media in Colombo yesterday. He claimed the Chinese entrepreneurs, who had been involved in the construction of the Norochcholai Coal Power Plant, were now refusing the Sri Lankan Government's offer to sell it back to them, because of the excess US$ 300 million that had been 'pocketed as commission' by those involved in the construction project. MP Fernando alleged the actual cost incurred during the 'phase one' of the Norochcholai construction project was US$ 1,000 million. "The government claimed the cost was US$ 1,300 million. However, the Chinese have said otherwise, in their refusal to accept the ownership of the plant. This means US$ 300 million was pocketed as commission by those involved in the project," he said. Also addressing the media, UNP MP Ajith P. Perera said, the Norochcholai Power Plant "didn't live up to its expectations," and "the only result was getting Sri Lanka into a long-term partnership with China, which is of no benefit to Sri Lanka." He claimed a further US$ 890 million would be required for the completion of the second and third phases of the Norochcholai construction project. He said former Power and Energy Minister, Champika Ranawaka, vehemently opposed the conditional partnership with the Chinese, and he ended up being kicked out of his portfolio. "We know the current Power and Energy Minister Pavithra Wanniarachchi was appointed to ensure that the second and third phases of the project are passed to the Chinese without any hassle," Perera, UNP MP alleged. He went on to say many 'patriots' seemed to have no qualms about 'selling Sri Lanka off to China,' while at the same time, 'shouting to high heaven about western influences in the country.' "Recently in Parliament, permission was sought to bring the largest hotel chain in Sri Lanka, the Hyatt Regency, under a new establishment called the 'Sino-Lanka Hotel and Spa', which , it was assured would be a 'completely Sri Lankan' business. But how could they make such a claim, when 'Sino' refers to 'Chinese'? The government must give us an answer," Perera said. Rs 6.4 B fraud at RMV By Gagani Weerakoon-2013-02-23    Minister of Transport, Kumar Welgama, admitted in Parliament yesterday a fraud to the tune of Rs 6.4 billion had taken place at the Department of Motor Traffic, due to the registering of assembled vehicles. Welgama said the fraud was highlighted in the 2010 annual report of the Auditor General, and added it had been committed by a group of vehicle importers, who had imported chassis of vehicles citing them as spare parts. "The parts were assembled here and released to the market under the numbers of vehicles already registered at the Department. The government lost around Rs 6,400 million due to this loss of new registrations," he revealed. The fraudsters had made use of the special permission granted to import vehicle chassis in the aftermath of the tsunami disaster, the minister said adding the engines and gear boxes too had been imported under the category of spare parts. Around 2,000 vehicles had been released to the market in this manner and of them 1,900 have been assigned registered numbers of old vehicles. Minister Welgama said not only the officials attached to the Department, but also some in the Import and Export Department and Customs Department are responsible for this. He said he asked the Commissioner of Motor Traffic to send inquiries to the Controller of Import and Export with regard to this issue. "Under previously used mechanism of motor vehicle registration, the numbers were not issued in batches and the English letters were not there either. A group of officials had got involved in this operation by helping the fraudsters to find old registration numbers," he charged. Minister Welgama said an investigation is in progress and the Criminal Investigation Department and the Fraud Investigation Bureau are also involved in the probe. The minister said this in response to a question raised by Matara District UNP MP Buddhika Pathirana.