2022-07-07
News Categories : Committee News
COPE chaired by Hon. (Prof) Charitha Herath recommended that an investigation be conducted through the Auditor General's Department on the cancellation of the Term Tender, which had been approved by the Cabinet to buy gas from Siam Gas at USD 96 per metric ton and opting to buy 100,000 MT of gas at a cost of USD 129 per metric ton from an Oman company.
This recommendation was given recently (05) when Litro Gas Lanka Ltd, Litro Gas Terminal Lanka (Private) Limited and Sri Lanka Insurance Corporation were summoned before COPE to implement the orders given by the previous Committee on Public Enterprises and to discuss the current performance.
It was disclosed that since the Term tender for the purchase of gas ended last February, tenders were invited for 2,80,000 MT of gas and three gas suppliers have submitted bids accordingly. Siam gas Company has submitted the lowest price as USD 96 per metric ton and accordingly the Cabinet has approved to award the tender.
The Litro officials disclosed that gas could not be obtained from Siam gas Company due to the economic crisis as banks in Sri Lanka were unable to submit the Standby Letter of Credit (SBLC) to Litro as per the conditions announced during the bidding process.
They further said that despite discussions with the concerned company in this regard, the company expressed its unwillingness to supply gas without a Standby Letter of Credit (SBLC) as per the conditions presented during the tender invitation.
Due to this delay, as a temporary solution, Siam gas Company itself has negotiated to obtain 15,000 MT of gas as emergency purchases, which is the gross amount of gas required for two weeks, but it has been informed that they can supply only 6600 MT and thus was unsuccessful.
Litro officials also said that the Oman company, which had sent prices at USD 129 per metric ton for the Term Tender, agreed to provide 100,000 MT of gas for 4 months at 25,000 MT per month.
Accordingly, after notifying the above facts to the cabinet, it was revealed that the term tender given to Siam gas Company was canceled and the cabinet approval was received for the term tender to purchase 100,000 MT of gas from the Omani company. A USD 70 million loan from the World Bank and 20 million of Litro Gas Lanka Ltd amounting to USD 90 million in total was used for this procurement, Mr. Muditha Peiris, Chairman of Litro Lanka said.
The COPE chair instructed the Auditor General's Department to conduct a formal investigation and report whether the loan amount of USD 70 million from the World Bank was effectively used, and added that although the need for gas is a necessary emergency, buying from the Omani company at a higher price instead of the lowest bidder, Siam, may set a bad precedent in the future.
The committee also focused on the inability to purchase gas with the amount of USD 160 million allocated for the purchase of gas under the Indian Credit Line. The Litro chairman said that according to the conditions of the Indian government, it is a problem to buy gas that is not produced in the country. It was also revealed that several rounds of discussions have been held regarding this. The COPE Chairman recommended to the Secretary to the Ministry of Finance to look into this immediately and report within two weeks.
Attention was also drawn to the fact that the number of currently appointed members of Litro's board of directors is only 4. It was revealed that according to the legal status, there should be 5 members. Furthermore, since the Ministry of Finance appoints the members of the Board of Directors, COPE pointed out the need to appoint the Board of Directors to consist of representatives of the parent company. The COPE Chairman recommended the Secretary to the Ministry of Finance to take necessary measures on this regard.
It was also discussed about holding both the positions of the company's Chairman and Chief Executive Officer by the same person. Even if the position of the company's chairman changes, the presence of a permanent chief executive officer position is essential for the good survival of the company, so the committee emphasized the importance of working towards it as soon as possible. Furthermore, Litro Chairman said that the Board of Directors has already taken a decision to deal with this situation as soon as this crisis is resolved. The committee recommended to take necessary steps and submit a report on this regard.
Litro Company's ability to obtain financial support from Sri Lanka Insurance Corporation, the parent company of the Litro Company was also looked into. The Chairman of the Sri Lanka Insurance Corporation, Mr. Vijitha Herath, said that the company was able to purchase gas in the past due to the deposit of nearly 5 billion rupees in a state bank.
Representing the Secretary of the Ministry of Finance, Mr.Saman Fernando. Deputy Secretary to the Treasury, Chairman of the Sri Lanka Insurance Corporation and former Litro Chairman Mr. Vijitha Herath, Litro Chairman Mr. Muditha Peiris were present at this meeting whilst Mr. Thesara Jayawardane, former chairman of Litro Company, joined online.
Parliamentarians Hon. Patali Champika Ranawaka, Hon. Mahindananda Aluthgamage, Hon. Anura Dissanayaka, Hon. (Dr.) Harsha de Silva, Hon. (Dr.) Sarath Weerasekera, Hon. Jagath Pushpakumara, Hon. Indika Anuruddha, Hon. S.M Marikkar, Hon. Jayantha Samaraweera, Hon. (Dr.) Nalaka Godahewa, Hon. Premnath C. Dolawatte and Hon. Madhura Withanage were present at the meeting held.
2025-04-23
The second Parliamentary Sub-Committee on “Strengthening the legal framework related to the transport sector and steering the transport sector in a positive direction”, established by the Ministerial Consultative Committee on Transport, Highways, Ports and Civil Aviation discussed the need to focus on the transport needs of the community with disabilities. This sub-committee meeting was held on 10.04.2025 at the Parliament premises, chaired by the Hon. Member of Parliament, Lakmali Hemachandra, Attorney-at-Law. Hon. Member of Parliament Sugath Wasantha de Silva, Chair of the Parliamentary Caucus for Persons with Disabilities and a member of the sub-committee, also participated in the meeting. In addition, a group of representatives, including heads of organizations and institutions representing various segments of the community with disabilities, attended the Committee meeting. Accordingly, the challenges encountered in fulfilling the transport needs of the community with disabilities and the proposals to address these issues were extensively discussed during the sub-committee meeting. It was identified that the lack of proper accessibility to transportation modes is a major issue faced by the community with disabilities. Due to the absence of appropriate access facilities for buses and trains, persons with disabilities are often compelled to rely on hired vehicles, which results in them incurring significant expenses, a concern they highlighted to the sub-committee. The representatives pointed out that although the Gazette Notification issued under the Disabled Persons (Accessibility) Regulations, No. 1 of. 2006 mandates the provision of proper facilities for this community, many institutions and individuals fail to comply with these regulations. They also brought to the attention of the sub-committee the need to ensure the effective implementation of these laws in order to deliver tangible benefits to the community with disabilities. Representatives from these organizations also indicated to the sub-committee that certain conduct by bus conductors causes serious inconvenience to individuals with disabilities. They emphasized the necessity of not only legislative reforms but also improving attitudes towards persons with disabilities The need for legislation to allocate seats on buses and trains specifically for personas with disabilities, allowing them to board buses without the need for conductors’ assistance, and ensuring appropriate communication facilities at railway stations for the convenience of the disabled. Additionally, several other issues impacting this community were addressed. Furthermore, it was pointed out that the issuance of driving licenses to individuals with hearing impairments has been discontinued. The representatives appealed to the sub-committee to intervene and ensure that this facility is reinstated for those individuals. Accordingly, the Committee Chair stated that the issues and proposals submitted by the community with disabilities should be sent in writing to the sub-committee within two weeks. She further stated that after reviewing these submissions, a final report would be submitted to the Ministerial Consultative Committee on Transport, Highways, Ports and Civil Aviation.
2025-04-23
The Ministry of Transport is also requested to submit proposals within two months Sub-Committee also looks into developing a formal system to check the suitability of public transport vehicles National Transport Commission instructed to submit proposals to increase the professionalism of public transport drivers within a month Discussions were held regarding proposals to strengthen the existing legal framework to ensure the safety of public transport, including the safety of bus passengers at the Parliamentary Sub-Committee on “Strengthening the legal framework related to the transport sector and steering the transport sector in a positive direction”, established by the Ministerial Consultative Committee on Transport, Highways, Ports and Civil Aviation. This Sub-Committee met on 09.04.2025 under the chairpersonship of Hon. Member of Parliament, Lakmali Hemachandra, Attorney at Law, during which attention was drawn to this matter. Accordingly, officials representing the Ministry of Transport, Highways, Ports and Civil Aviation and several institutions under its purview participated in the Sub-Committee meeting. Their views were obtained with regard to strengthening the legal framework to ensure the safety of passengers using public transport. The need to regulate the procedure for issuing fitness certificates for public transport buses was emphasized during the Sub-Committee. Officials stated that under Section 29 of the Motor Traffic Act, these fitness certificates are issued for buses, lorries, and ambulances by garages registered under the Provincial Councils, without regulation from the Department of Motor Traffic. Due to issues concerning the standards and reliability of these garages, the Chairperson of the Sub-Committee stressed the need to establish a formal procedure for this purpose. The necessity of enforcing “construction regulations” under Section 19 of the Motor Traffic Act was also discussed. Accordingly, detailed discussions were held regarding aspects such as the required spacing between seats, removal of unnecessary equipment, and installation of seat belts in both newly imported and existing buses for passenger safety. Based on the relevant data and information, the Ministry of Transport was instructed to prepare a report with proposals on the measures to be implemented concerning passenger safety in public transportation and submit it to the Ministerial Consultative Committee on Transport within two months. Furthermore, attention was drawn to the necessary steps to enhance the professionalism of public transport drivers. Accordingly, the Chairperson of the Sub-Committee directed the National Transport Commission to submit proposals for the standardization of the driving profession within one month. It was also instructed that data related to road accidents that occurred during the past three months be promptly submitted to the Sub-Committee. The Chairperson of the Sub-Committee emphasized the importance of preparing future recommendations based on this data. Attention was also drawn to strengthening the necessary legal provisions for enforcing the law against the use of drugs by bus drivers. Officials mentioned that regulations relevant to this matter under the Motor Traffic Act are currently in the final stage of preparation. The need to promptly implement these regulations and to properly establish the technological mechanisms required to detect drug substances in the bodies of drivers was highlighted. This Sub-Committee primarily examines possible short-term and long-term changes to laws and regulations related to the transport sector, following which a report containing the necessary recommendations is to be prepared. Hon. Member of Parliament Sugath Wasantha de Silva also participated in this Sub-Committee meeting.
2025-04-10
The Committee on Public Enterprises (COPE) of Parliament, chaired by Hon. Member of Parliament (Dr.) Nishantha Samaraweera, conducted a field investigation at the Bandaranaike International Airport on 09.04.2025. The COPE recently (2025.04.02) reviewed the Bandaranaike International Airport Development Project in connection with the Auditor General's Reports for the years 2022 and 2023 and the current performance of the Airport and Aviation Services (Sri Lanka) (Private) Limited (AASL), and accordingly conducted this field investigation. It was expected that the number of aircraft stands at Bandaranaike International Airport would be increased through the construction of a Remote Apron and Taxiways as part of the Bandaranaike International Airport Development Project. However, it was observed that both the AASL and the Japanese joint venture company hired for design and consultancy services had undertaken these activities without proper technical or operational analysis. As a result, achieving the project's objectives proved challenging. Despite several weaknesses and practical challenges identified at the planning stage, the Committee noted that steps were taken to complete the project. Accordingly, the solutions already proposed by AASL to achieve the desired objectives of the project were also observed. The COPE members held extensive discussions with local representatives from the Japanese joint venture and senior officials from relevant institutions. During these discussions, the Committee expressed displeasure over the financial losses incurred by the government due to these oversight issues and poor planning. The Committee recommended that, to prevent further misuse of public funds in future development activities, attention must be given to the issues arising during planning stages. The Committee decided to reconvene with the officials from AASL in the near future to continue discussions on the matter. The field inspection was attended by Hon. Members of Parliament M.K.M. Aslam, Samanmali Gunasinghe, Lieutenant Commander (Retd.) Prageeth Madhuranga, Ruwan Mapalagama, Sunil Rajapaksa, Thilina Samarakoon, and Chandima Hettiarachchi, along with officials from relevant institutions and parliamentary officials.
2025-04-10
More than 80 of the recommendations made by the Committee on Public Petitions during the fifth session of the ninth Parliament have not been implemented A decision was taken by the Committee to Review Non-Implementation of Recommendations of the Parliamentary Committees to grant a period of one month for the implementation of recommendations given by the Parliamentary Committees, which have not yet been implemented. This decision was taken during the meeting of the Committee held yesterday (Apr. 09) at the Parliament under the chairmanship of Hon. Minister Harshana Nanayakkara, Attorney at Law Accordingly, discussions were held on identifying the priority non-implemented recommendations that should be reviewed by the Committee. During the discussion, it was disclosed that over 80 recommendations issued by the Committee on Public Petitions during the Fifth Session of the Ninth Parliament have not been implemented. Furthermore, the Committee also decided to grant a period of one month for the implementation of recommendations that have not been acted upon, which were issued by the Committee on Public Enterprises (CoPE), Committee on Public Accounts (CoPA), and Committee on Public Finance (CoPF). As such, the Committee decided to issue letters to the respective Ministry Secretaries requesting the implementation of these non-implemented recommendations. If it is not possible to implement them within one month, the reasons for the non-implementation must be submitted in writing to the Committee. Hon. Members of Parliament Ravi Karunanayake, Oshani Umanga, and several Parliamentary officials were present at this meeting
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