Renovation of MR’s official residence No proof to show Govt. procurement guidelines were followed during purchases through Lanka Building Materials Corporation Limited

 Former President Mahinda Rajapaksa inaugurating the elevator at his residence in Wijerama

• LBMCL sources, some of their staff members have objected to their client purchasing equipment without obtaining quotations
• LBMCL has initiated purchasing goods and services for this project before the then Premier Mahinda Rajapaksa submitted a cabinet paper seeking cabinet approval to grant LBMCL the contract
• LBMCL maintains that due to the height of COVID and considering the urgency, they hadn’t called for quotations through newspaper advertisements, but sent SMSs to interested parties and selected the lowest bidder
• Sources reveal that all these purchases connected to the renovation were made not only during the height of COVID 19 in 2020, but continued after the lockdown period was over

Credible information as to how public funds have been misappropriated from the entire Mahinda Rajapaksa official residence renovation project has now reached this newspaper, following the Right to Information Commission’s stern order to the contractor- Lanka Building Materials Corporation Limited- to release the requested details to the Daily Mirror newspaper. As per the documents this newspaper is in possession of, Rs. 421.93 million, out of tax payers’ monies, have been spent on renovation activities of this house.

A copy of a document which shows that some of the  purchases to facilitate the renovation of Mahinda Rajapaksa’s residence was made through LBMCL

Although the public authority -Lanka Building Materials Corporation Limited (LBMCL)- gave an assurance to the RTI Commission, on August 2, 2024, that all relevant documents requested will be handed over to the Appellant (Daily Mirror), on or before October 15, 2024, the Public Authority did not honour their word. Hence the Daily Mirror exposed the story on November 27, 2024, titled ‘Renovation of MR’s official residence: State authorities in hot water for violating DM’s RTI request’. Following this, Information Officer LBMCL Dimuthu Vithanage provided the necessary documents to this newspaper.

When this reporter visited LBMCL recently, to speak to the officials who were involved in purchasing materials for this project, it was revealed how all expensive items, including the passenger elevator, lightings, lighting control system, electrical installation, bathroom accessories, conference/ interpretation/ multimedia and PA systems, VRF type air- conditioning system, supper flex ceiling, steel roof, high and low pressure gas lines, Data /WiFi system etc. have been purchased from the suppliers selected by the Maintenance Engineer of the project Lt. Commander W.I.E. Aravinda of Sri Lanka Navy and the Prime Minister’s office.

However, it is unknown on whose advice names of these suppliers have been selected by Lt. Com. Aravinda. 

Govt. procurement guidelines bypassed

The reason why the Project Maintenance Engineer ordered LBMCL to purchase these items from the selected parties bypassing government procurement guidelines raises questions. According to LBMCL sources, some of their staff members have objected to their client purchasing equipment without obtaining quotations. But the Commercial Division has followed the instructions given by the Prime Minister’s Office and the Project Engineer.
It is also shocking to note how LBMCL has initiated purchasing materials and obtaining services for this project well before the then Prime Minister Mahinda Rajapaksa submitted a cabinet paper seeking cabinet approval to offer the contract to LBMCL. 

Mahinda Rajapaksa in his first Cabinet Memorandum (No: PMO/ CM/03/2021) dated January 5, 2021, has stated, ‘My new term as the Hon. Prime Minister of Sri Lanka has started from August 9, 2020 and the official residence at 117, Wijerama Mawatha, Colombo 7 is also regularly used for official duties to be performed by the PM and official functions such as diplomatic meetings. Accordingly it is proposed that the cost of maintenance and repair which were required to maintain the same should also be borne by the PM’s office, considering this official residence is also an official residence of the PM is appropriate. 

‘In the view of the above, the approval of  the Cabinet of Ministers is sought to bear the recurrent and capital expenditure incurred in maintaining the same by the allocations under the expenditure Head of the Prime Minister’s Office or by the additional allocations obtained from the Treasury as required, considering the official residence of former President holding No: 117, Wijerama Mawatha, Colombo 7 is also as an official residence of the Prime Minister only to be limited to my current term of office’.

To this request, the Cabinet has granted its approval (No: CP 21/ 0084/ 302/ 002) on January 25, 2021. This cabinet paper states, ‘A memorandum dated January 5, 2021, by the Prime Minister on allocation of funds for the maintenance and repair of the official residence of the Prime Minister. The above memorandum was considered along with the observations of the Minister of Finance. After discussions, it was decided to recommend to the Cabinet to grant approval to the proposal’.  

But, it is only in his second Cabinet Memorandum (No: PMO/CM/19/2021) dated September 27, 2021, Rajapaksa requested approval to purchase building materials from LBMCL.

The said Cabinet Memorandum states, ‘As per the recommendation of the Cabinet Sub-Committee, approval has been granted by the Cabinet of Ministers on January 25, 2021, to the Cabinet Memorandum submitted by me.
‘Accordingly, the essential renovations and modernizations of the residence holding No: 117, Wijerama Mawatha, which is being used as the official residence of the PM as well as of the Fifth Executive President were commenced with the labour contribution of the Sri Lanka Navy (SLN) and are currently being carried out successfully.   ‘It is observed that procuring the building materials and equipment required as well as all other items required for this renovations through LBMCL – a state owned institution would be more efficient and effective. Hence the approval of the Cabinet Ministers is sought to carry out the renovation and modernizations of the official residence of the Prime Minister/ Fifth Executive President at No: 117, Wijerama Mawatha, Colombo 7, under the labour contribution of SLN, directly purchase materials and supplies for the modernization from LBMCL and to obtain architectural and interior designing consultancy services from LBMCL and to make payments for same and to enter into agreements as required ’.   

It is for this second cabinet memo, Minister of Finance Basil Rajapaksa has given his approval on October 10, 2021 (Ref No: MF/ NB/ CM/ 09/ 2021/ 002/ 01). Finance Minister’s observation says, ‘I agree with the proposals of Cabinet Memorandum’.

Questions raised 

Hence, questions have been raised on whose directive, LBMCL started purchasing materials and also issued a letter of appointment to an Architect / Interior Designer for this project well before the Cabinet granted approval to purchase the materials and supplies directly for the modernization project and to obtain architectural and interior designing consultancy services from them LBMCL. 

According to LBMCL employees, this institution does not import even a safety pin now, but because the contract was offered to them- since it is a public institution- they had to purchase all the material from the local market.
“Whatever we purchased, we added 8% to 10% as our profit and sent the invoices to the Prime Minister’s Office,” sources said.  

The sources further said how, the Commercial Division of the LBMCL panicked when informed that copies of all documents pertaining to the purchases should be handed over to the RTI Commission failing which, their officials would have to face legal action.  

“When the request came under the RTI Act to obtain the details of these purchases, the Commercial Division panicked as they do not have proofs to prove that they followed government procurement guidelines. Now the Commercial Division says that they sent SMSs to dealers and got quotations from them, but did not publish paper advertisements and call for quotations. Although there was a request to build a swimming pool at the Wijerama Mawatha residence, it was later cancelled due to lack of funds” sources said. 

Commercial Manager Asela Sahabandu said that due to height of COVID and considering the urgency, they did not call for quotations through newspaper advertisements, but sent SMSs to interested parties and obtained quotations and selected the lowest bidder.

However, the sources revealed that all these purchases were made not during the height of COVID 19 in 2020, but well after the lockdown period was over, in 2021.

As per copies of the documents this newspaper is in possession of, LBMCL has reached an agreement with an Architect/ Interior Designer on January 18, 2021; it is alleged that the Architect/ Interior Designer, known to Yoshitha Rajapaksa, was picked personally by the latter. 

The sources alleged how the contract letter for the Architect /Interior Designer was signed by the then General Manager Dilum Rathnayake though it should have gone through the Manager Human Resources (HR).
“The Architect /Interior designer Chamika Shamal de Alwis (Chartered Architect) No: 27, Sucharithodaya Road, Pamunuwa Road, Maharagama was selected on the directives of Yoshitha Rajapaksa. Although the cabinet approval was given to obtain architectural and interior designing from LBMCL in October 2021, this selection was done in January 2021. LBMCL does not have in-house architects or interior designers, so without calling for quotations from suitable parties, on the directives of the General Manager along with the directives of the Maintenance Engineer, a letter was sent to the selected person without the knowledge of the HR Manager. When an appointment is made, the letter should be signed by the HR Manager but in this instance, it is the GM that issued this letter on January 18, 2021,” sources alleged.

By letter dated January 18, 2021, GM Dilum Rathnayake sent a letter to the Secretary to the Prime Minister by stating, ‘Appointment Letter/Contract Agreement for the Architectural services of the Official Residence of Hon. Prime Minister. This refers to your letter dated January 13, 2021 Ref: PMO/ 2/ 3/ BM/ VR, on the above subject.
‘Arrangement has been made to appoint Mr. Chamika Shamal de Alwis as the Architect for the renovation of the official residence of the Hon. Prime Minister. The letter issued to Mr. De Alwis is attached herewith for your information and necessary action please’.

The same day, the contract letter has been sent to De Alwis by the GM. It states, ‘Dear Mr. Chamika, We have gone through your letter in which you have expressed your wish to work with us on the Project of the Prime Minister’s official residence. We are happy to say that we accept your proposal to work with us.

‘We would like if you can start work in the said project from February 10, 2021. Your engagement with us shall continue unless it is terminated by either one of us in writing seven days before.

‘Your total architecture fee will be 2.5% of the actual work done of the project.
‘The terms of your agreement will be given separately – Dilum Rathnayake’.

Meanwhile, when this newspaper asked the then Manager HR Dimuthu Vithanage, who is presently the GM of LBMCL, whether he was aware of this appointment, Vithanage said that he was kept in the dark when issuing this letter, but came to know of it several weeks after the appointment was made.

“I was not aware of how this person was selected. Dilum Rathnayake had got this letter typed and sent to De Alwis. The HR Department does not maintain any file in regard to this appointment,” Vithanage said. 

Former GM Dilum Rathnayake when contacted to find out why tenders weren’t called when purchasing items for the renovation work and on whose instruction the Architect/ Designer was selected, he refused to make any comment claiming that he doesn’t know the identity of the caller.

“Without knowing who this caller is how can I reveal these confidential details to you,” asked Rathnayake.
Further it was revealed how the Project Maintenance Engineer Lt. Commander W.I.E. Aravinda wanted LBMCL officials attached to this project to come for a review meeting to the Wijerama site on August 25, 2021 and how he had handed over a set of files with a name and contact number for each file giving instructions to purchase the items from the names given. All these were for the expensive items. It raises questions as to how these purchase instructions had been given well before the second cabinet memorandum was submitted to the Cabinet and approvals received from the Finance Minister. 

“On August 21, 2021, we were asked to come to the Wijerama site for a review meeting to discuss how to procure the necessary materials. Four of us went for this meeting and Lt. Com. W.I.E. Aravinda handed over several files to us wanting to purchase these expensive items from the names that were given in each file. As requested we did not call for quotations but purchased directly from them,” one of the members who attended this meeting told this newspaper on terms of anonymity.  

When this newspaper contacted Lt. Com. Aravinda to find out why he wanted LBMCL to purchase the items from selected parties without following government procurement guidelines, he said that he cannot talk to the media without the approval of the Navy Commander.

Hence, Director Media Sri Lanka Navy Com. Buddhika Sampath was contacted to get the Navy Commander’s approval. On his request, an e-mail was sent to him on February 3, seeking approval to allow Lt. Com. W.L.E. Aravinda to speak to the Daily Mirror.

“I will get the Commander’s approval and then we have to get the Defence Secretary’s permission. I can assure that these permissions can be obtained within few days,” Com. Sampath said. 

Following the first e-mail, this reporter contacted the Director Media on February the 6. Once again another e-mail was sent to him on February 10, 2025, but to no avail. Until this newspaper went for publication, approval hadn’t been granted by SLN for the matter.

When this newspaper requested from Media Spokesman of Sri Lanka Navy Captain ‘Gayan’ Wickremasuriya and Deputy Director Legal Captain Asanka Karunaratne on July 24, 2023 under the RTI Act to provide details of these renovation activities, they didn’t furnish the particulars.

Be that as it may, as per the copies of documents this newspaper is in possession of, a staggering Rs. 421.93 million (actual cost is Rs. 421, 930, 701.56) has been spent on this renovation project.

For the bathroom accessories Rs.15.415 million had been spent while Rs. 16.807 million has been spent for the lighting control systems.

To lay granite for the Wijerama residence, Rs.15.874 million had been spent and Rs. 10 million for the architectural and landscape designing. To purchase lighting Rs.12.488 million had been spent and for the electrical work of this project a staggering Rs. 31.595 million had been spent while Rs.2.357 million had been spent for the installation of Data/ Telephone and Wi-Fi system for the refurbished premises.

For the marbles the amount of funds that had been spent was Rs.4.5 million, and another Rs. 4.680 was spent for Homogeneous Press Tiles and for the timber flooring it has cost Rs. 21.271 million.

In addition to the above, another Rs.4.801 million had been spent on granite.

For the installation of Conference/ Interpretation/ PA and Multi-media Systems the cost borne by the tax payer was Rs. 16.312 million.

For the installation of VRF type air-conditioning system it had cost Rs.44.874 million. For the passenger elevator Rs. 15.093 million had been spent.

For the super flex ceiling for the Wijerama official residence the cost borne by the tax payer was Rs.37.345 million, for the steel roof the cost was Rs.32.760 million, for water proofing Rs. 1.336 million, for the installation of high and low pressure gas line Rs. 3.923 million has been spent, for the pressure booster system Rs. 4.361 million and for the solar water heating system Rs. 1.012 million had been spent.

Several millions of rupees has also been spent on ready-mix concrete. When asked what the purpose was to supply ready-mix concrete for the renovation project, LBMCL sources said that the Wijerama house got an extension which amounted to a large two storied building. 

“It was for this construction, these ready-mix was purchased. Because of this, several thousands of bags of cement were also supplied. The newly constructed area is as large as the old house,” sources added.   

The sources further said how orders have been placed during public holidays/ weekends as there wasn’t any need to submit purchasing orders.

“There were many instances where orders have been placed on weekends and public holidays with claims being made that those items were urgently in need. Most of the time cement, sand and other items were requested and the Commercial Division request the suppliers to supply these items without a purchasing order. We have no records to say whether these items have been supplied to the Wijerama site or any other places, as for most of such purchases we do not have any documents as prove. It is a known secret why they ordered these items on public holidays,” sources alleged. 

When contacted, the Chief Accountant of the Prime Minister’s Office Nilantha Fernando, who made correspondence with LBMCL when purchasing most of the expensive materials, to find out whether he was aware that government procurement guidelines were not followed when purchasing the expensive items for the renovation project, Fernando said that all the materials were purchased through LBMCL as per the Cabinet approval. He further said that he cannot answer question posed by this newspaper, but the Chief Finance Officer (CFO) of the Prime Minister’s Office Mr. Y.M.S. Gunasekera is the senior officer who can respond to such queries.
The CFO of the Prime Minister’s Office when contacted requested this newspaper to send a request under the RTI Act for him to provide the necessary details.

When it was conveyed to him that the Daily Mirror requested from the Information Officer Mashanka Liyanage and the Designated Officer Harsha Wijewardana respectively on February 6, 2023 and February 24, 2023, to obtain these details, none of these officers provided the needed information. They claimed that the requested details are not in their possession and refused to provide the information that was sought. CFO Gunasekera said that he too cannot make any comments in this regard as the files have been sent to the President’s Office because all the maintenance work of the Wijerama house is carried out by the President’s Office.

“When the Project Engineer informed us what their requirements are for the renovation, we asked LBMCL to purchase the items and send the vouchers to the Prime Minister’s Office. Once we received the voucher, we made the payments. Other than that we didn’t know whether they followed tender procedure or not,” Gunasekera said.