Railway Department selling 6,000 tons of scrap metal outside tender process: Official alleges

Colombo, August 11 (Daily Mirror) - An official from a major institution in the country has approached the Commission to Investigate Bribery or Corruption, alleging that the Railway Department is preparing to sell approximately 6,000 metric tons of scrap metal—including decommissioned railway carriages to two major iron companies outside the tender procedure.

The complaint further states that the Procurement Committee or Evaluation Committee responsible for this sale has failed to take proper action regarding incomplete applications. It allowed companies that submitted incorrect documents along with their prices to correct their deficiencies, which resulted in losses to the Department.

According to the complaint, senior officials of the Railway Department and procurement officers are involved in this matter. The procurement process for the sale of scrap metal owned by the Railway Department to the private sector was initiated in July last year through a public newspaper advertisement, with tender documents opened on July 23.

Eleven companies submitted applications and related documents for the procurement. Two companies were rejected because it was observed that the Industrial Development Board had not submitted the required 18 percent value-added tax documentation along with their official documents and prices.

Under these circumstances, companies that submitted correct prices and documents risk losing their opportunity. 

According to government procurement guidelines, the Procurement Committee does not have the authority to fill in missing information in tender documents after the tender has been opened. Since this tender exceeds Rs. 1,000 million, the authorities must conduct a pre-qualification inspection, according to the railway trade unions.

The trade unions have urged the railway authorities to take appropriate action against the companies and officials previously involved in the illegal purchase of railway scrap iron. They have also called for excluding companies currently attempting to fraudulently acquire scrap from the procurement process, and for involving only those buyers who meet all qualifications and have submitted formal bids.

When asked about the tender, Railways General Manager Dhammika Jayasundara said that, as this is a large-scale tender, its proceedings will be handled by the Ministry of Transport.

He further stated that it is his personal opinion that the old trains, including the scrap iron and steel piled up, should be sold immediately, as this is a factor contributing to train delays.