Marikkar alleges plot to reappoint sacked former minister linked to sub-standard coal fraud

Samagi Jana Balawegaya (SJB) MP S.M. Marikkar has accused the government of plotting to reappoint former Energy Minister Kumara Jayakody to the cabinet despite ongoing investigations into a Rs. 20 billion sub-standard coal fraud.

Speaking at a press conference held at the SJB headquarters in Colombo today (13), the opposition lawmaker said that efforts are underway to reinstate the former minister by January 2027 while misleading the public regarding the actual financial damage.

Financial losses and procurement failures

Marikka said that the overall financial losses resulting from the coal deal are projected to reach Rs. 20 billion when including state fuel subsidies, contradicting government assertions that performance bonds would offset the damage.

He said the official report compiled by an expert panel under the Sectoral Oversight Committee on Infrastructure reveals that direct losses total Rs. 18.393 billion.

"Procurement failures led to severe power generation shortfalls, forcing the state to spend Rs. 8.572 billion on emergency power purchases after failing to generate 300 megawatts. Additional expenses included Rs. 7.099 billion for extra coal consumption, Rs. 2.284 billion paid above market rates for emergency shipments, and Rs. 402.8 million caused by shipment delays. Furthermore, suspicious quality certificates required third party testing by an Australian firm costing Rs. 26.6 million, while increased equipment maintenance and ash disposal added tens of millions to the final bill," he said.

Calls for investigation and parliamentary action

Marikkar claimed that Cabinet members attempted to whitewash the incident by citing Rs. 16.9 billion held in performance bonds and penalties, but significant net losses remain unrecoverable.

He said the parliamentary committee recommended recovering Rs. 400 million directly from the private supplier responsible for shipping delays.

He alleged that alterations made to procurement guidelines during the former minister's term allowed uncertified suppliers into the bidding process, establishing his direct accountability for the crisis.

Marikka added that the full expert report will be tabled in Parliament next Tuesday for distribution to all 225 lawmakers before being forwarded to the Bribery Commission, Criminal Investigation Department, and a Presidential Commission for formal legal proceedings.