President urged to halt coal tender for company embroiled in controversy

by Shamindra Ferdinando-January 3, 2017

Campaign for Free and Fair Election (CaFFE) Executive Director Rajith Keerthi Tennakoon has called upon President Maithripala Sirisena to rescind Power and Renewable Energy Ministry decision to award new mega coal contract to Swiss Singapore Overseas Enterprises Pvt Limited alleged to have caused losses amounting to nearly four billion rupees at an earlier occasion.

Tennakoon told The Island that he had sought President Maithripala Sirisena’s intervention as the Supreme Court had in June last year declared that the previous contract awarded to the same company was flawed and shocked the conscience of the court.

A fresh contract, too, would cause significant losses at a time the country was facing balance of payment crisis. Tennakoon said, noting that the government had asked for a USD 1.5 bn IMF bailout package.

Tennakoon said the ruling UNP-SLFP coalition was already under heavy fire over Central Bank bond scams involving Perpetual Treasuries. The government had absolutely done nothing so far to have bond scams investigated, he said.

Having campaigned on a platform of good governance and accountability, President Maithripala Sirisena couldn’t under any circumstances turn a blind eye to the fact that a group of officials was involved in a massive scam. Alleging that coal mafia had in its pocket many influential politicians and officials, Tennakoon said that it was a crime to allow the deal when coal could be procured through spot tenders.

Tennakoon said the government must not allow Lanka Coal Company (ICC) to go ahead with the project despite the damning Supreme Court observations. It government should inquire into the circumstances under which the Cabinet had granted approval for the latest order for 1 mn MT of coal, he said.

In his letter to President Maithripala Sirisena, Tennakoon has said that the government should continue with spot tenders introduced by former Power and Energy Minister Patali Champika Ranawaka to ensure a better deal for Sri Lanka. Tennakoon has said that the present Cabinet couldn’t justify corrupt deals claiming the previous government had carried out far worse transactions.

Tennakoon said the Supreme Court itself had faulted the Standing Cabinet Appointed Procurement Committee (SCAPC) for allowing Swiss Singapore Overseas Enterprises Pvt Limited to interfere in the process (SCFR394/2015). Unfortunately, the Power and Renewable Energy Ministry and ICC had been allowed to deal with Swiss Singapore Overseas Enterprises Pvt Limited at the expense of much touted yahapalana promise to end corruption in the public sector.

Tennakoon said the latest corrupt deal was being finalised in the wake of President Maithripala Sirisena participation at an anti-corruption conference organised by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) at the Taj last December. Responding to a query, he said another case had been filed against the coal deal (SCFR 349/2016) and it was pending in the Supreme Court.