A complaint regarding the Norochcholai coal scam during D.V. Chanaka's tenure

Information regarding a massive financial fraud believed to have occurred during the tenure of former Acting Minister of Power and Energy, Mr. D.V. Chanaka, in the process of purchasing coal for the Norochcholai Lakvijaya Power Plant, was handed over to the Special Presidential Commission of Inquiry yesterday (13) by Gampaha District Parliamentarian of the National People's Power, Mr. Pragith Manuranga.

According to this complaint, during the period from January to April 2023, standard tender procedures were severely violated in the procurement of 72,000 metric tons of coal. PT Arista Mitra Jaya from Indonesia had offered to supply coal at a favorable price of US$ 240 per metric ton, along with a 200-day interest-free credit facility, and this offer had received the approval of the Procurement Committee, the Technical Evaluation Committee, and the Cabinet.

Against such a backdrop, the MP's complaint states that in February 2023, the then Acting Minister D.V. Chanaka submitted a paper containing false information to the Cabinet. Although the Minister had stated that the Letter of Credit (LC) submitted by the relevant Indonesian company had been rejected by their bank, it has been revealed that it was actually rejected because the eighth clause, which had previously been agreed to be removed, was included in the LC when it was issued. Through this planned process, the relevant supply was given at a higher price to 'Coral Energy' and 'Kambas Industrial', companies not selected by the tender board, resulting in an enormous financial loss to the government. Protesting against the Minister's provision of false information to the sub-committee, Ministers Wijeyadasa Rajapakshe and Ali Sabry, who are President's Counsels and represented the Cabinet Sub-Committee on Coal, have resigned from that committee.

In addition, several other parties filed complaints regarding coal frauds before the Commission yesterday. Among them were Gampaha District MP Ruwan Mapalagama of the National People's Power and Dr. Chamal Sanjeewa, convenor of the National Professional Civil Front. MP Ruwan Mapalagama pointed out that during the four-year period when Champika Ranawaka and Pavithra Wanniarachchi served as Ministers of Power and Energy, over five hundred thousand metric tons of coal had been imported without proper Cabinet approval or tender calls. He also presented written evidence that due to these illegal transactions carried out on six occasions using three companies, the government had incurred a loss exceeding 6.7 billion rupees. Concurrently, Mr. Sanjaya Mahawatte, Chairman of the 'Magen Ratata' organization and head of the 'Civil Intelligence Front', also provided information to the Commission regarding numerous past irregularities in coal imports.

Based on the allegations made by the opposition regarding the new coal tender procedure introduced by the current National People's Power government, the President established this Special Commission of Inquiry. The first complaint to this Commission was submitted on the 7th by Parliamentarian Ravindra Bandara, and it was a complaint regarding the arbitrary awarding of a tender to a company that was ranked third on the qualified list during the 2009-2010 period. The deadline for submitting complaints regarding irregularities in coal procurement to this Special Presidential Commission is set to expire on May 22nd.