Documente Academic
Documente Profesional
Documente Cultură
Alleged Rs. 4 bil. financial fraud revealed in the dealings between Chinese
Contractor and FormerIrrigation and Water Management Ministry Secretary
regarding the Gin-Nilwala Diversion Project
Plans are afoot to summon De Silva, who is domiciled in New Zealand, at the
earliest, FCID sources said.
The Gin-Nilwala Diversion Project contract was signed on November 5, 2014 and
5% of the agreed fee was advanced as a mobilization payment soon after the
agreement was signed between K.W. Ivan de Silva, of the Irrigation and Water
Management Ministry, and Luo Yan, Chairman CAMC Engineering Company.
Although Rs. 4012 million had been paid to CAMC Engineering Co. Ltd, the
contractors have failed to implement any ground work to date. During the
present Governments 100 day programme the then newly appointed Irrigation
and Water Management Ministry Secretary Gamini Rajakaruna, by letter dated
June 22, 2015, wrote to CAMC Engineering Company requesting it to refund the
advance made as mobilization payment until the temporary suspended project is
re-commenced.
Rajakarunas letter further stated as thus, The agreement has been signed
between your company and the Ministry of Irrigation and Water Resources
Management and an advance payment (part of the total agreed mobilization
advance) also has been paid. This project will be implemented under the newly
formed Ministry of Irrigation hereafter as the employer.
According to the agreement (Clause 5 of the main agreement) the contract shall
come into effect when the employer confirms the date on which the conditions
stipulated for the contract comes into full effect.
It was only one and a half years later that CAMC Engineering replied Rajakaruna.
The engineering company responded by saying that it cant refund the
mobilization advance as requested, but would carry out the project once the
Government approval is received.
-De Alwis
Project Director Lalith de Alwis told the Dailymirror that the ground work will be
commenced only after the feasibility tests are concluded.
I took over office in March this year and we are still carrying out feasibility
studies. It will need more time to finish the feasibility studies before releasing the
report, De Alwis said.
Its learned that the investigators were able to unearth more details than what
was expected of them and obtained all information regarding the suspicious
transaction.
The sources further revealed as to how De Silva told his officials that the total
advance payment amounting to Rs. 3,700 million had to be paid to the Chinese
company in 2015. They added that once the money is received from the Treasury,
he (Ivan de Silva) will approve the payments for the entire amount. In a letter to
the Chief Accountant and the Project Director, Ivan de Silva has further stated as
thus, Although only Rs.40 million had been allocated for the Gin Nilwala Project
for 2015, another Rs.12, 000 million had been allocated for other special projects
undertaken by the Irrigation Ministry which confirms the Finance Ministry letter
dated December 31, 2014. In my reply to the aforesaid letter, I have made a
request to release Rs.3,700 million for the Gin- Nilwala Diversion Project. Since we
have already received funds amounting to Rs.2000 million for the above project,
the Finance Ministry informed us that another Rs.1000 million would be released
in the future. Hence I give my approval to make arrangements to pay Rs.2000
million from the funds the Finance Ministry, funds which have been already
released, and the rest should be paid once the remaining allocations are
received.
When this scam was revealed, Director General of the Department of National
Budget, A.R. Deshapriya by letter dated September 4, 2015 instructed the
Irrigation Ministry Secretary R.M.W. Ratnayake to conduct an investigation to find
out whether the staggering advance payment had caused a loss to the country
and if so to find out who is responsible for the swindle.
Ministry officials pose with representatives of the Chinese company
after signing documents on November 05, 2014
The sources further revealed as to how De Silva told his officials that the total
advance payment amounting to Rs. 3,700 mn had to be paid to the Chinese
company
Director General of the Department of National Budget had wanted Ratnayake to
appoint a committee and conduct an impartial inquiry
Though Ratnayake had wanted the Treasury Secretary to appoint a committee to
conduct the investigation, Director General of the Department of National Budget
had wanted Ratnayake to appoint a committee and conduct an impartial
inquiry. We were disappointed as to why the National Budget Department failed
to conduct the inquiry, they were supposed to do, without asking Ratnayake to do
so as he was working hand in glove with the accused.
The credibility of the three member committee, headed by D.D. Ariyaratne- the
then Additional Secretary (Irrigation Development)- was questionable as the then
Secretary Ratnayake, Ariyaratne and Ivan de Silva worked in the same ministry
when the alleged fraudulent act took place. In such a backdrop, can anyone
expect the committee report to reveal the truth? When there are documents to
prove how Ivan de Silva had released Rs.4012 million and made China CAMC
Engineering Company Limited an advance without obtaining the proper
approvals, it is surprising as to how the three-member inquiring committee in its
report stated that there was no controversy involved in the transaction, the
sources added.
Posted by Thavam