Supreme Court halts coal tender fraud

Jun 26, 2016

The Supreme Court on the 24th ordered the Power and Energy Ministry to cancel the corrupt tender deal to buy coal for Lakvijaya power plant in Norochcholai, and to find a new supplier as per proper procurement requirements. The tender called in 2015 was worth Rs. 2.2 billion. A three-member bench headed by chief justice K. Sripavan issued the order after considering a fundamental rights petition filed by Nobel Resources Pvt. Ltd.

The petitioner said it had placed the lowest bid of 90 US dollars per ton, but the tender had been given to Swiss Singapore that had a higher price of 101 dollars per ton. Later, in violation of tender procedures, that company’s price was lowered and the procurement committee gave it the tender. Appeals by four bidders against the decision were set aside. Announcing his ruling, the CJ said he was shocked by the biased manner in which the ministry secretary and the procurement committee had conducted themselves in this matter.