Procurement documents covering Sri Lanka’s coal imports over several years were sent to the subject ministry outside the prescribed procedure and with delays, the Presidential Commission of Inquiry investigating coal transactions was told on Tuesday.
The evidence came from Lanka Coal Company Audit Officer Indra Kumari, who appeared before the Commission.
Tenders prepared without the plant’s figures
Kumari said that before preparing procurement documents, the Lanka Coal Company is required to obtain formal documentation from the Lakvijaya Coal Power Plant specifying how much coal it needs. Instead, she told the Commission, procurement documents were submitted to the ministry on the basis of estimates prepared by the Lanka Coal Company itself, without first securing the requirement documentation from Lakvijaya.
The correct sequence, she explained, is for the power plant to state the quantity required first, after which the company should begin the procurement process. She added that it was the Lanka Coal Company’s responsibility to obtain and verify that information from the plant before initiating any procurement.
Kumari also made observations about a company identified as Potensia, which took part in the bidding for the 2024–2025 coal import season and had entered the process with a bid priced lower than competing bidders. NewsFirst’s report did not set out what conclusion, if any, the Commission drew from that.
Audit obstructed by unanswered letters
The Commission further heard that the Lanka Coal Company failed to respond to requests for information needed to compile an audit report covering the period of the coal imports under scrutiny.
Kumari said letters requesting the required information went unanswered, and that reminder letters subsequently issued also drew no response. As a result, she said, preparing the final audit report became extremely difficult because of the lack of cooperation and the unavailability of the information sought.
Context
The Special Presidential Commission of Inquiry into coal procurement began recording statements from witnesses in June, starting with officials from the Lanka Coal Company, the Lakvijaya Power Plant and the Ministry of Energy. A government audit had earlier flagged irregularities in coal procurement for Lakvijaya, Sri Lanka’s only coal-fired power station.
No other verified newsroom had reported Tuesday’s testimony at the time of writing.
