Rs. 1.9b loss incurred in 2.5 months from coal deal: ACF

5 April 2017 02:57 am - 10 - {{hitsCtrl.values.hits}}

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Sri Lanka has lost Rs. 1,953 million within just two and a half months from January 15 to March 31, this year due to the controversial deal struck with Swiss Singapore Overseas Enterprises Pvt. Ltd to provide coal to Norochcholai Power Plant, Anti Corruption Front (ACF) yesterday said.

Advisor of the ACF, Keerthi Tennakoon said Sri Lanka has to pay the company US$ 13.75 more for a metric tonne of coal compared to other companies that provide coal under the spot tender method to Sri Lanka.

He said the Ministry has today stopped purchasing coal through the open market and that under the instructions of Ministry Secretary Suren Batagoda, the Lanka Coal Company has purchased coal for a price of US$ 91.75 per metric tonne through the controversial tender.

“The price of a metric tonne purchased under the spot tender method was US$ 77.98. Had the government purchased coal under spot tender method, it would have only spent US$ 171,639,126. Therefore, we have incurred a loss of US$ 12,766,337 (Rs 1,953,249,561) from this deal,” he said.

Mr. Tennakoon said we can only imagine the loss Sri Lanka will incur as the tender progresses and unfortunately the tax payer will have to dig deeper into their pockets to safeguard the country from this corrupt deal as well.

He said the loss incurred by this deal was only second to the Central Bank Bond Sale scam.

Meanwhile, responding to State Minister of Power Ajith P Perera’s statement that those who criticize the deal are traitors, Mr. Tennakoon said the Rajapaksa Administration also labelled Board of Investment (BOI) Chairman Upul Jayasuriya and himself as 'traitors' when they exposed massive government corruption. (Lahiru Pothmulla)

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Comments - 10

r86 Wednesday, 05 April 2017 09:32 AM

someone has misled you...these kind of thing happens in Engalanthe not Sri lanka...we are under Yahapalanaya.. via DM Android App

Shelly. Wednesday, 05 April 2017 10:22 AM

Really what this Tennakoon (and Samarasinghe) doing for living. .. via DM Android App

avisenna Wednesday, 05 April 2017 10:27 AM

Out of government for 27 years. Poor management all round. And I Hathdenage Kendaheliya. via DM Android App

OMG Wednesday, 05 April 2017 11:16 AM

shipping is one of the high bribe earning way for politicians. This should be well investigated and whatever the loss made to be recovered from the ministry or the person in charge to be jailed. The way of taking bribe in shipping is called kick back. They fix the freight rate at higher than market rate and take the difference as kick back to their personal accounts. They may receive the bribe in overseas bank accounts or taking the bribe as property. Over to you FCID

BuffaloaCitizen Wednesday, 05 April 2017 11:59 AM

"recovered from the ministry or the person in charge to be jailed" in the history of SL since independence has this ever happened? Talk reality please.

Mason Wednesday, 05 April 2017 12:02 PM

Do those in power care about these losses. Had they this loss, and many more like these could have been avoided.Go on Prohithas you all are having the best of times, having the cake, eating it and enjoying it too,We are footing the bill, but our cries are falling on deaf ears.

OMG Wednesday, 05 April 2017 12:13 PM

The ministers should have knowledge of the shipping for country to benefit from changing market, otherwise they will make huge loses to country. Atleast they should learn from India one of the biggest player in shipping industry. How their shipping tenders are handled. They fix tenders spot basis during weak market to get the cheapest freight rate and fix under long period contracts during firm market to save rates.

OMG Wednesday, 05 April 2017 01:09 PM

If our mentality is fixed it will never punished, then it will never happen. Other countries have developed bcoz public got smarter to get the culprits punished by their hard struggles.

Selvyn Wednesday, 05 April 2017 02:51 PM

We know very well he is seeking attention like a child. We see him suddenly spring up with things which looks strange via DM Android App

Mevan Thursday, 06 April 2017 12:43 AM

Using coal is cheaper in the short term but environmentally hazardous in the long term. Why dosen't the govt promote use of solar power more actively.

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Rs. 1.9b loss incurred in 2.5 months from coal deal: ACF

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