The Hon. (Dr.) Anil Jayantha - Minister of Labour and Deputy Minister of Finance and Planning

¶ 01 Hon. Presiding Member, thank you for this opportunity.

¶ 02 Today, at the time of adjournment, the Opposition has brought an adjournment motion alleging irregularities, fraud, and corruption in the coal procurement tender. However, their case is flawed from the outset. For example, they have wrongly reported the coal volume as 12.32 million metric tons.

¶ 03 They raise four main points. All four are incorrect and can be refuted.

¶ 04 First: they allege the procurement process violated the Auditor General’s recommended procedures. There is no such instance. The process followed prescribed steps, including permissible date changes where applicable, in accordance with the National Procurement Commission. The procurement committees conducted evaluations; ten bidders participated; responsive bids were considered; we accepted the lowest compliant bid. Under previous Governments—yours included—coal procurements were often regularized only via Cabinet approvals, outside standard procedures. We have presented those facts throughout this debate. Under your Governments the proper procurement cycle was not followed.

¶ 05 Second: they allege we acted contrary to the 2022 advice of the Committee on Public Finance (COPF). Not so. The 2022 advice emphasized increasing competition by reasonable relaxation of conditions while assessing supplier capacity, experience, quality, and adequate performance securities, etc. The relevant adjustments were done in 2023. Our Government took the existing procurement framework forward; we made no improper deviations.

¶ 06 Third: they argue we should have chosen a “trustworthy” supplier who could guarantee quality. Trustworthiness must be evidenced through specifications and documented compliance, not through drawing-room assessments or private house meetings. State financial management cannot be reduced to that. The tender specifications governed selection; the contract was signed per those specs.

¶ 07 Fourth: they claim the supplier failed to deliver on time. That is not accurate. The prior tenderer, Ox Potencia LLC-FZ, had yet to complete their remaining deliveries, and time was taken to finish that while the new tender concluded. The new tender stipulated coal delivery by 23 December; the supplier requested that with the port made ready they could deliver by the 30th; we agreed, and unloading commenced on the 3rd. On that basis, all four allegations fall.

¶ 08 We welcome constructive criticism on grounded facts. But we cannot accept unauthenticated information. Calls to cancel the contract are misguided. Cancellation requires breach under the agreed terms. Coal procurement is not like any other commodity. Moisture content and calorific values can vary between loading and discharging ports. Hence we obtain both Load Port and Discharge Port reports. If the calorific value falls below 5,900 kcal/kg beyond allowed limits, we do not accept. Load Port Reports are provided, and at discharge, accredited third-party testing is done via open procurement. In this case, “Cotecna,” an Indian firm, carried out sampling transparently in the presence of engineers and provided reports. The first shipment failed; penalties were levied accordingly. Others did not. If someone brandishes some report to demand cancellation, that is not prudent. Premature cancellation would be a misuse of public financial management and could unjustly benefit the supplier through claims for large damages—as has happened before under prior administrations, such as the well-known aircraft leasing episode that led to multi-million-dollar liabilities when contracts were unilaterally cancelled. We will not repeat such mistakes.

¶ 09 It is clear the Opposition seeks to portray us as equally corrupt to normalize the notion that “everyone is corrupt.” But our Government has demonstrated clean governance—nationally and internationally recognized. Attempts to destabilize the economy and public finances through false narratives will not succeed. Our 159 Government MPs act collectively and consistently; such tactics will not undermine us.

¶ 10 On the coal specifications, the Opposition keeps saying “substandard coal.” This tender involves off-specification tolerances defined in the contract, not acceptance of substandard products. Where calorific value is marginally below 5,900 kcal/kg within negotiated bands, we impose liquidated damages/penalties per contract. The supplier also has recourse to umpire samples. From our side, actions have been taken per the reports. This is not about importing substandard goods.

¶ 11 We indeed know of true substandard imports that occurred earlier—bad medicines, bad fertilizer—where specifications were violated. Here, by reading the procurement and contract properly, it is clear no procurement was done to bring in substandard goods. Deviations are handled per the contract via penalties.

¶ 12 On process: ten suppliers participated; we followed due process without violating any law. After unloading, certification timelines matter: without a breakwater and during monsoon months, unloading itself takes around five days per vessel. With multiple vessels—ten to twelve—arriving in sequence, and with about 17 days to get Discharge Port lab reports after Load Port documentation, simultaneous report comparisons take time. If both Load and Discharge Port calorific values fell below 5,900 kcal/kg beyond tolerances, we can cancel and impose penalties. Historically, penalties have been imposed, including in 2014 when seven vessels were penalized. Claims that the coal will damage the plant are often made; in Norochcholai’s history, plant trips have occurred due to various causes, not always coal quality alone. Those must be analyzed technically.

¶ 13 In sum, the Opposition argues we are corrupt and incompetent. We reject that. There has been no fraud or corruption under our administration in this matter. We continue to safeguard public financial discipline, which is why we have achieved stability and will maintain it through 2025 and beyond.

¶ 14 Thank you.