Description
Sri Lanka’s Auditor General has reported the failure to adhere to the legitimate procurement processes when awarding a tender to an unregistered company, “Black Sand Commodities” for the purchase of coal. This summation of coal was to be used during the period of 2022-2025 for the Lak Vijaya Power Plant in Norochcholai. According to the Auditor General’s report, the procurement process used to secure the coal was illegitimate and wasn’t carried out as legally mandated by the Government. According to him, it was done to avoid fair and equal opportunities in procurement to other interested parties. Member of Parliament and the then Chairperson of the Committee on Public Finance, Dr. Harsha de Silva raised this in Parliament.[i]
Monetary value involved
USD 1,477 million[ii]
What is the corruption
- Mismanagement of public funds
- Violation of due procurement process
What has been done
The Committee of Public Finance (COPF) recommended that all the officials involved in the coal procurement procedure should be suspended for at least one year[iii].
The Committee on Public Enterprises (COPE) instructed to implement the eight recommendations made by the Auditor General regarding this purchase[iv].
What can be done
- Citizens, civil society, media and professionals advocate for regulation of the procurement procedure to address corruption risks in spot procurement and unsolicited proposals.
[i] https://www.themorning.lk/articles/221310
[ii] https://twitter.com/harshadesilvamp/status/1563133345395265544?lang=en
[iii] https://economynext.com/coal-procurement-sri-lankas-copf-recommends-action-against-officials-100712/
[iv] https://www.parliament.lk/en/committee-news/view/2869?category=33
