Coal racket continues!

Aug 06, 2016

A cabinet paper is to be submitted on the coming Wednesday by disregarding a suspension order issued by a three-member Supreme Court bench on June 24 to handover a coal tender to Swiss Singapore company, say sources at the power and energy ministry.

Another competitor, Nobel Resources International filed the petition in the SC, alleging the procurement committee has amended the tender procedure to make it advantageous to Swiss Singapore and handed over the tender to that company.

Considering the fundamental rights violation case, the SC noted fresh bids should be called as per the laws to supply coal for the Norochcholai plant in accordance with the competitive bidding procedure. As per that ruling, awarding the tender to Swiss Singapore company is illegal.

Eight companies made bids in April 2015 to secure this tender. The technical evaluation committee recommended to the procurement committee that the lowest bidder, Nobel Resources should be given the tender. However, the procurement committee members and heads of Swiss Singapore reached underhand agreements, with the company being awarded the tender.

After complaints were made and on the orders of the president, the procurement appeal board investigated and decided the procedure of awarding the tender was wrong.  However, minister Ranjith Siyambalapitiya and his deputy Ajith P. Perera insisted the tender was not illegal, and that the country would not suffer any losses. Ex-minister Patali Champika Ranawaka was accused of being responsible, but he directly rejected the charges. He said he has written to the president then, asking that the tender be cancelled.

Ministers have been accused, but it is clear that top government officials responsible for implementing the tender procedure have neglected their responsibilities and allowed a corrupt deal to take place.

Had this particular company been given the tender, the government would lose an estimated 8,300,222 US dollars. The lowest bidder Nobel Resources made a bid for 49,632,134.70 dollars. Swiss Singapore’s bid was 57,932,356.96 dollars. However, the coal price in the world market has come down considerably now. Therefore, if fresh bids are called, the price can be brought down further. But, disregarding all these, attempts are being made to handover the tender to Swiss Singapore, ministry officials say.

The procurement committee members were the secretary to the power and energy ministry, secretary to the foreign employment ministry, general manager of the CEB and the additional secretary to the power and energy ministry.

Source - Sathhada