The Hon. S.M. Marikkar

¶ 01 At the Adjournment, I move the following on Issues Relating to the Power Sector:

¶ 02 “Whereas the Committee on Public Enterprises, based on recommendations of the Auditor General, provided further policy directions regarding the procurement process for purchasing coal for the Lakvijaya Coal Power Plant at Norochcholai;

¶ 03 Whereas for the ‘2025–2026 Coal Season’ the procurement of 12.32 million metric tons of coal required for Lakvijaya should have been conducted in line with Government Procurement Guidelines, safeguarding fundamental requirements including: I. Financial capacity II. Experience III. Quality of supply IV. Adequate legal bonds,

¶ 04 Whereas contrary thereto: I. By engaging in corrupt practices contrary to the procurement process recommended by the Auditor General, II. By acting contrary to the directions given by COPE regarding the procurement process for purchasing coal, III. By failing to select a reliable supplier who can guarantee the quality of supplies, IV. By the supplier company failing to deliver coal to the Plant on time,

¶ 05 the present Government has jeopardized Sri Lanka’s energy security;

¶ 06 Whereas the CEB has already suffered a massive financial loss due to this process, and further losses are ongoing; and as the Turbine Last Stage Blades, Air Pre-Heater (APH), boiler tubes, and the FGD system at Lakvijaya have reached a state requiring repairs due to low-quality coal, necessitating a huge expenditure; and whereas due to the Minister of Power misleading the National Procurement Commission and the Cabinet and approving a corrupt procurement, these conditions have arisen;

¶ 07 Therefore, this House urges: 1. To take all necessary steps immediately to safeguard Sri Lanka’s ‘energy security’; 2. To recover losses to the Republic due to this corrupt procurement process from those responsible, and to take steps to avert impending losses in future; 3. To ensure accountability at all levels of persons responsible for this corrupt and illegal process.”

¶ 08 At the outset, let me say this: across the country there are about 3,000 JVP cadres. When you sacrificed for your revolutionary aims, please realize the luxurious lives some of your tie-and-coat types are enjoying from thefts they commit.

¶ 09 When a Rolls-Royce was brought for Dudley Sirisena, and a helicopter for “Nipuna” the rice mill owner, our leaders then loudly condemned it. Today, when the President repeats “not a single rupee of theft,” how do these thefts go unseen?

¶ 10 The anti-corruption force at Pelawatte is now tranquilized. We are not afraid. Our duty is to expose these thefts.

¶ 11 The former Chairman of Lanka Coal Company did not act according to the Auditor General’s 30.09.2022 report adopted by COPE on 04.10.2022. In 2022, emergency methods used during power cuts were used again, instead of normalizing as directed. The requirement of 10 million MT over three years was cut to 5 million MT; the GCV ≥ 5,900 kcal/kg requirement was relaxed; bid period cut from 42 to 21 days — all to let corruption in and keep reputed firms out. Cabinet was not properly informed of the Auditor General’s recommendations. “Lowest” price was cited without ensuring quality. The first ship, due 14 December, arrived 30 December. The load port report should come from where it was loaded, but for the first time coal was shipped from South Africa while the report came from Indonesia; even the sample integrity was questionable. Real-time tests failed; yet the Minister denied issues. When tests failed, they stopped real-time tests and staged a media show claiming a USD 2.1 million penalty — mere optics.

¶ 12 Every one of the first eight vessels has resulted in losses, as per documents signed by the Additional Secretary of the Ministry of Power and issued from the CEB GM’s office. I table those documents.

¶ 13 Independent real-time reports at Lakvijaya show GCV values below 5,900: e.g., 5,689; 5,684; 5,078; 5,562; 5,670; 5,415, etc. Ash percentages, normally around 11%, are over 16% in all vessels — 20.1%, 21.38%, 25.5%, etc. Load port certificates show “pass”, but Lakvijaya lab shows “fail” — deception. I table those too.

¶ 14 With ash above 16%, the tender should be cancelled; if two vessels are rejected, the entire tender should be cancelled. Instead, it’s being spun. Mixing previous acceptable coal with bad coal will only delay the inevitable; by March, only the bad coal remains, reducing output by about 300 MW. Then power cuts or costly diesel generation will follow, burdening consumers. A proposal is already afoot to increase tariffs by 13.5%. We tell the PUCSL: do not pass the cost of theft onto consumers.

¶ 15 I respect Hon. Anil Jayantha, but saying “increase the number of slabs to absorb costs” means making people pay for thefts. You promised to reduce bills by a third; instead, another hike looms.

¶ 16 If tariffs are increased, we will mobilize the people. The Government has had 16 months; the honeymoon is over.

¶ 17 I urge the Government MPs: do not defend this. Do not let one Minister’s acts destroy your Government and harm 22 million people. We are ready to see who has the spine to oppose this robbery. Thank you.