Coal Tenders Were Based on Estimates Rather Than Actual Plant Requirements

COLOMBO (News 1st); Procurement documents related to Sri Lanka's coal import process over the past several years were submitted to the subject ministry outside the prescribed procedure and with delays, the Presidential Commission of Inquiry probing coal transactions was informed on Tuesday (18).

The revelation was made during testimony provided by Lanka Coal Company Audit Officer Indra Kumari before the Commission.

Giving evidence, Kumari stated that prior to preparing procurement documents, the Lanka Coal Company is required to obtain formal documentation from the Lakvijaya Coal Power Plant specifying its coal requirements.

However, she told the Commission that procurement documents had instead been submitted to the ministry based on estimates prepared by the Lanka Coal Company, without first obtaining the relevant requirement documentation from the Lakvijaya Power Plant.

She further explained that the correct procedure requires the Lakvijaya Power Plant to initially provide documentation specifying the quantity of coal required, after which the Lanka Coal Company should proceed with the procurement process.

The audit officer also pointed out that it was the responsibility of the Lanka Coal Company to obtain and verify such information from the power plant before initiating procurements.

Meanwhile, Kumari also made observations regarding the company identified as Potensia, which had participated in the bidding process for the 2024-2025 coal import season.

According to her testimony, the company had entered the procurement process by submitting a bid at a lower price compared with competing bidders.

The Commission also heard that the Lanka Coal Company had failed to respond to requests for information needed to prepare an audit report covering the period relevant to the questioned coal imports.

Kumari revealed that despite sending letters requesting the required information, the responses were not received. She added that reminder letters were subsequently issued, but those communications also went unanswered.

As a result, she said the preparation of the final audit report became extremely difficult due to the lack of cooperation and the unavailability of requested information.