Rs. 819 million pilfered to bring down 13

SUNDAY, 21 OCTOBER 2012

A massive irregularity has been committed when buying 13 power sets to the Department of Railways states the General Secretary of All Ceylon Railway General Employees’ Union Sumathipala Manawadu in a letter to Committee on Public Enterprises (COPE) adding that an investigation should be carried out and the loss incurred to the Department should be recovered.

In his letter Mr. Manawadu states, “ due to lack of transparency in buying, allocation and acquisition of services the Department or Railways losses a colossal sum of public money. It is regrettable to note that these irregularities are carried out by those who have been assigned to develop rail services.

13 power sets were ordered according to cabinet paper No.09/1766/358/063 -1 and the letter of 17.09.2009 from M/S China Locomotive and Rolling Stock Corporation Limited සහ M/S CSR Qingdao Sifang Locomotive Rolling Stock Co Ltd on an agreement to pay the full cost in 15 years. The Department of Railways following government circular 415 assigned Sri Lanka Shipping Corporation to bring down the power sets to the island. Sri Lanka Shipping Corporation quoted US$ 380 million at the rate of US$108 per cubic foot to bring down 13 power sets of 26852 cubic feet each while Sathsindu Co. Ltd. quoted US$ 324 at the rate of US$92.625 per cubic foot. The Minister had presented a cabinet paper to hand over the transport of power sets to the lowest bidder.

However, Hayleys Ltd. that had not presented any quotations has been assigned to bring down power sets at a cost of US$95 per square foot and has already brought down several power sets. Accordingly, the Department of Railways incurs a loss of US$2.375 from every cubic foot of the 13 power sets that will be brought down and the extra amount the Department has to pay is US$63,000 (nearly Rs.819 million).”

Mr. Manawadu states when authorities say they have no funds to allow employees in the department to provide loans or vacancies that exist in the Department are not filled stating there are no funds or do not buy necessary spare parts due to lack of funds, one person pilfering millions of public money is a crime and requests COPE to investigate the issue and take measure to get the Department to recover the loss.