Payment to China contractor of Gin – Nilwala Project: Daily Mirror reveals more

Payment to China contractor of Gin – Nilwala Project: Daily Mirror reveals more

Payment to China contractor of Gin – Nilwala Project: Daily Mirror reveals more

Written by Keshala Dias

20 Oct, 2017 | 9:32 pm

Earlier this week News1st reported that the Colombo Fort Magistrate issued an arrest warrant on K.W. Ivan de Silva, a former Secretary to the Ministry of Irrigation and Water Management during the previous regime.

This is in relation to an advance to the tune of Rs 4,012 million, paid to the Chinese contractor of the Gin-Nilwala Diversion project.

The project contractor was selected bypassing government procurement regulations. The Daily Mirror on Friday revealed further details quoting informed sources.

The Gin-Nilwala Diversion Project contract was signed on November 5, 2014 and 5% of the agreed fee was advanced as a mobilisation payment.

The Contract was signed between K.W Ivan de Silva of the Ministry and Chairman of CAMC Engineering Company.

The Daily Mirror reports that although Rs 4,012 Mn had been paid to CAMC Engineering Co Ltd, the contrators have failed to implement any ground work to date.

The report further notes that the amounts are believed to have been released in three installments.  The first paid on November 24, 2014.

The final installment was paid a few days prior to Mahinda Rajapaksa  defeat at the Presidential Elections.

Who instructed the former secretary to the Ministry of Irrigation and water management to release public funds to the project contractor? A contractor selected  bypassing Government  procurement regulations?

The Director General of the Department of National Budget instructed the Irrigation Ministry Secretary R.M.W Ratnayake
to conduct an investigation to find out whether the staggering advance payment had caused a loss to the country,
if so who is responsible?

The Daily Mirror article reveals that Ratnayke appointed a three-member committee to investigate the matter, appointing D.D Ariyaratne as the head of the committee and two others. Both Ratnayake and Ariyaratne worked in the same ministry as Ivan De Silva at the time the alleged fraudulent act took place.

According to the Daily Mirror sources the committee found no wrong doing, stating ” the entire process from awarding the unsolicited contract to CAMC Engineering to making payments thereafter had been made legally and in the presence of tranparency”.

Latest News