Fraudulent coal tender annulled: Sobhitha Thera’s FR petition withdrawn

October 26, 2022Author - Editor

A Fundamental Rights petition filed by Ven. Omalpe Sobhitha Thera challenging the decision of the Cabinet of Ministers to award the coal tender to the Black Sand Commodities Company was today withdrawn following the government’s decision to cancel the questionable tender for the procurement of coal to the Lakvijaya Coal Power Plant.

Ven. Omalpe Sobhitha Thera filed this petition seeking an order staying the purported award made to a company incorporated in the United Arab Emirates (UAE) for the procurement of 4.5 million MTs of coal to the Lakvijaya Coal Power Plant.

President’s Counsel Sanjeewa Jayawardena appearing for the senior prelate, submitted to court that it has come to the knowledge of his client from the public domain, that company named Black Sands Commodities of Dubai, in the UAE was wrongfully awarded the questionable coal tender for the Lakvijaya Coal Power Plant.

However, the Attorney General’s Department informed the court that the Cabinet of Ministers had cancelled the tender and further decided to call fresh tenders for the procurement of coal to Lakvijaya Coal Power Plant.

Taking into account the new circumstances, Mr. Jayawardena told court that there was no further requirement for the petitioner to pursue the petition and sought court’s permission to withdraw the application.

Taking into consideration the facts, Chief Justice Jayantha Jayasuriya and Justice L.T.B. Dehideniya decided to terminate the case proceedings of the petition.

The petitioner is challenging the decision of the Special Standing Cabinet Appointed Procurement Committee to award the coal tender to the Black Sand Commodities Company and subsequent approval issued by the Cabinet of Ministers.

Ven. Omalpe Sobhitha Thera maintained that the price per MT ton of coal for which the tender has been awarded to the Black Sand Commodities Company, is exorbitantly high, vis-à-vis the current Russian prices, thus, giving and affording, an unjustifiably and unfathomable and indeed, unconscionable profit margin to the above company. The Petitioner states that Black Sand Commodities Company is not registered with the Lanka Coal Company (Pvt) Ltd. as a supplier of coal.

The petitioner further stated that, the tender in question is for the procurement of 4.5 million MTs of coal, to be supplied during the span of three years, commencing from October 2022 to April 2025.

The prelate said Black Sand Commodities Company had been chosen to supply coal at a FOB base rate of US$ 295.22 per ton, which is clearly well above the market rates that other countries have imported coal under Russian prices, in the month of July 2022. Based on the above prices, there is a difference of approximately US$ 115 to US$ 155 per ton of coal. (Lakmal Sooriyagoda)