Monday, April 22, 2013


By Nimal Perera

http://www.lankaenews.com/English/images/logo.jpg(Lanka-e-News-22.April.2013,3.30PM) We are approaching last spell of a period which should have been bright but was actual dark. Find out the story below.


In the second coal tender the same game plan as in first tender could not be played as the evaluation was handled by CEB engineers. Initially as per the TEC submission, the tender was for Taurian Iron & Steel Co. Pvt. Ltd. Then the Secretary MOPE pulled a different card. He tabled a Supreme Court judgment happened in 2000, and raised doubts over TEC recommendation for Taurian citing they don’t have a local agent and therefore they are not qualified under the contract law. 

Then Secretary MOPE wrote to SCAPC submitting the position of the Attorney General, which upheld the applicability of Public Contract Act 13 of 1987 in respect of this tender. As per this Act all public contracts & initial offers and the companies participating has to be registered. 

However there is a big puzzle on whether a foreign bidder has to register or not. With these points raised SCAPC directed TEC to re-evaluate the tender and then;

1. Two bidders – JV to JV of Commodities Ltd & Uttam Galva Steel Ltd and Coal & Oil Company LLC were qualified as they had registration certificates for their local agents
2. One bidder - Nobel Resources Ltd who had not been represented by any agent also was qualified. (If the law was strictly imposed he also should be disqualified.)
3. Three bidders - Taurian Iron & Steel Co. Pvt. Ltd, Emirate Trading Agency LLC and MCS Holding Pte Ltd were disqualified as “their bid documents were collected by a local agent”. The big question is whether they have appointed any local agents in their bids. Otherwise why not they be treated as Nobel was treated?

Finally Taurian - the lowest offer would be rejected at a huge cost to the country. The price deference with Nobel and Taurian is 126.00 - 108.10 = 17.90 Dollars per Metric Ton. For the total quantity this will be 27 Dollar Million.

All the above episodes and Norochchloei PS construction were looked after by Mr. TM Herath – additional secretary in MOPE and Chairman Lanka Coal Company. Minister Ranawake replaced the LCC chairmanship by the CEB vice chairman. Only a week, here went the minister. Now we see the higher chairs of the mafia!

These tenders are pre-planned, well designed, well coordinated frauds in which the winning party is predetermined. If unexpected comes up he will be removed on a small lapse. If the earmarked party lacks something, that would be excused as a minor issue. Even the price negotiations are permissive for the dear ones.

This fraud in RS 2 billion order, could not be singly done at TEC, LCC or CAPC levels. Not even the cabinet of ministers. A master mind center piece is required. Of course he is blessed & covered from the top polity. Sadly this is not the first fraud of this nature; Kerawalapitiya combined cycle power plant (over RS 12 billion loss), Norochcholei Power plant 1st and 2nd (about RS 10 & 25 billion respectively) and many small scale lines up.

Further I’ve attached here, the complaint made to Bribes or Corruption commission.(See Below)



Full story >>