Following the current government’s assumption of power, Parliament heard allegations of irregularities and non-compliance in coal procurement for the Norochcholai Lakvijaya Power Plant.
Opposition MP S.M. Marikkar tabled a motion urging the government to take appropriate action against all responsible parties, highlighting that coal shipments did not meet required specifications and raised concerns of mismanagement.
Key Irregularities
- Procurement deviated from Auditor General and Treasury-approved guidelines.
- Required coal quantity and quality standards were not met.
- First shipment delayed from December 14 to December 30, affecting timely reporting.
- The tender process allowed undue advantage to certain companies.
Financial Impact
- Total losses to the Electricity Board via 8 coal shipments: LKR 2 billion.
- Estimated overall operational losses: LKR 3.12 billion.
- Losses after supplier changes: LKR 1.137 billion.
Energy Minister Kumar Jayakody’s Response
- Procurement followed Auditor General’s recommendations.
- No illegal favoritism or procedural violations occurred.
- Technical issues raised by opposition MPs were addressed with detailed explanations.
