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The National Water Supply and Drainage Board (NWSDB) has proceeded with the plan to award a multi-million dollar water project in the Gampaha district, first mooted through an unsolicited proposal five years ago by former Economic Development Minister, Basil Rajapaksa, to a controversial firm involved in the building of the constantly malfunctioning Norochcholai Power plant.
 
The US$ 229.5mn contract for the Gampaha, Attanagalla and Minuwangoda Integrated Water Supply Scheme was granted in August 2016 to China Machinery Engineering Corporation (CMEC), despite serious concerns raised by the Auditor General’s (AG) Department on various aspects including questions over the qualification of the Chinese contractor to undertake such a major project.
 
“It was observed that while the Memorandum of Understanding entered into originally by Sri Lanka in 2010 was with a company named China National Machinery and Equipment Import and Export Corporation (CNMEI & EC), which presented its list of qualifications, the contract was ultimately signed by the Chairman of NWSDB on May 15, 2013 with a different company named CMEC,” the Auditor General’s Department raised in a query addressed to the Chairman of the NWSDB, dated January 24, 2018.
 
The Auditor General’s Department has, therefore, called for an explanation as to why the contract was signed with a different ‘sub-contracted company’ and not with the company with which the agreement had been reached originally.
 
In its query, the Auditor General’s Department makes note of the fact that there was no evidence of even a registration certificate in the set of documents submitted by CMEC related to the contract.

The Department points out that even a letter of recommendation issued by the Chinese Embassy in Colombo in June 2010 to the then Minister of Water Supply and Drainage, had mentioned CNMEI & EC as the contractor while the proposed financier of the project, China Development Bank had also issued their ‘Letter of Intent’ to finance the project to CNMEI & EC.
 
“Further, as per procurement guidelines, only the Secretary of the respective Ministry has the authority to sign a contract of over Rs. 500 million but in this particular contract, the Chairman of NWS&DB has signed it violating procurement guidelines,” the AG’s Department has highlighted.
 
The project proposes to provide tap water to around 150,000 households benefiting around 600,000 people in the entire Divisional Secretariat areas of Attanagalla, Gampaha, Minuwangoda and a part of Mahara and Mirigama.
 
Eighty-five percent of the project is proposed to be funded by a loan from the China Development Bank (CDB) with the balance to be financed by Bank of Ceylon (BOC).
 
On October 17, 2017, former President Chandrika Kumaratunga whose hometown is Attanagalla, wrote to Prime Minister Ranil Wickremesinghe citing her serious concerns about the decision to proceed with the controversial contractor.
 
“I am very concerned about the manner in which this project was awarded to a company which is apparently not qualified to carry out such a major project,” the letter which has also been copied to Finance Minister Mangala Samaraweera and Minister for Water Supply and Drainage, Rauff Hakeem states.
 
Amidst the signing of the agreement with CMEC, which now holds the legal authority to implement the project, it is learnt that four out of 20 tasks mentioned in the qualification list of the project screening report names a third company by the name of Tiajin Water Industry Engineering and Equipment Company Ltd (TWIEE), which is an associate company of CNMEI & EC. The same firm has also undertaken 10 out of 18 tasks classified as foreign construction work.
 
“As CMEC does not meet the project requirements, it has entered into a partnership with TWIEE and submitted the qualification of TWIEE. However, as the agreement is only with CMEC, TWIEE has no legal tie up with the project. Hence, the contract agreement is not with a party qualified for the project,” the AG’s Department points out.
 
In addition, the Department has also raised concerns on the suitability of CNMEI &EC as the contractors given that the company has only involved in projects related to energy generation, hydro electricity, telecommunication, radio, and electronic transmission.
Although they had been involved in major projects worldwide, their experience in projects related to water supply and drainage has been limited to about a mere four projects in the past 10 years.
 
Sources from the Auditor General’s Department said that the department had in 2016 alone raised similar queries on three occasions dated January 6, December 22 and December 31 because there were serious doubts about the suitability of CMEC to undertake the project.
 
The sources noted that the Strategic Enterprise Management Agency (SEMA) in 2012 had also recommended reconsidering the decision to hand over the project to CMEC given that the Norochcholai coal power plant had broken down about 35 times since it was commissioned in 2011.
 
“The Ministry of Water Supply and the NWSDB had awarded this contract to CMEC in violation of many Government procedures as stipulated in the Tender Procedure Guidelines, Financial Regulations, as well as Cabinet approvals. There is no justification to continue with this agreement with CMEC, especially by a Government committed to transparency and Good Governance,” former President Chandrika Bandaranaike said in a recent letter addressed to Prime Minister Wickremesinghe, urging the cancellation of the project.
 
“There is a serious issue regarding the Company to which this contract has been awarded, namely CMEC of China. It is this Company that built the Norochcholai power generation plant. That contract too was awarded, without calling for tenders to CMEC who has doubtful credentials reconstruction of power projects or water supply projects.

“Their technology and financial ability has been questioned as a consequence of the Norochcholai machinery breaking down 38 times in five years, since it was first commissioned in 2011,” she highlighted explaining the gravity of the situation.
 
It is learnt that although unsolicited water supply projects were suspended with the change of Government in January 2015, a project review committee appointed to inquire into unsolicited water supply projects recommended the continuation of the CMEC contract. Subsequently, the Cabinet granted approval and requested the External Resources Department of the Ministry of Finance to negotiate with China Development Bank to secure funds,” she said.
 
In February 2016, Cabinet granted approval for a loan agreement between NWSDB and CDB to finance 85 percent of project cost and with the Bank of Ceylon for the remainder.

The Cabinet in August 2016 authorised the Treasury to issue a letter of undertaking to CDB for US$ 146.3mn, which is 75 percent of the loan amount, in addition to a letter of guarantee.
 
According to the report, lowest estimated rates for the tasks were offered by NWSDB, with the changing in costs being at 11 per cent. Estimates for the treatment plant by CMEC indicated an increase in cost which was at Rs. 1,554.99 million, change in cost as high as 51 percent. Therefore, the NWSDB could have done the project for Rs. 1,554.99 million less.
 
The report highlights that even though procurement guidelines state that only a maximum of 20 percent can be paid as an advance to a contractor, an advance payment of 34 percent was made to CMEC. A further 50 percent advance was made to sub-contractor NWSDB, in complete violation of the above.
 
The project is also mired in financial controversy after the Water Board obtained a loan of USD 34.3 million from the Bank of Ceylon that lay in the bank accounts of the CMEC from May 19, 2017 to December 15, 2017 or a seven month period.
 
However, during that entire period, the Water Board paid interest of Rs 454.4 million for the loan, to the BOC, while the contractor profited from the money in the bank, the AG report highlights.
 
The AG report also noted that the Contractor CMEC was paid USD 16.2 million on August 11, 2017, purportedly for work conducted from February 10, 2014 to March 31, 2017.

However, this money was only secured through a loan facility only in August and September 2016. 

Source : Sunday Observer

The foundation stone was laid for the construction of 250 new houses under the Indian Housing Project at a special ceremony held yesterday (04), at the Madakumbura Estate in Punduloya, Nuwara Eliya, the Indian High Commission said today.  

Minister for Hill Country, New Villages, Infrastructure and Community Development, Palani Digambaram, State Minister for Education  V.S. Radhakrishnan and Acting High Commissioner of India Arindam Bagchi jointly laid the foundation stones.

In a similar ceremony held at Vellaioya Estate in Hatton the same day, the foundation stone for the construction of 50 new houses was laid with the participation of the Assistant High Commissioner of India in Kandy Dhirendra Singh.

India has committed a total of 14,000 houses in the Plantation areas including the 10,000 houses announced by Indian Prime Minister Narendra Modi. Around 1000 houses out of these are nearly complete. The foundation stones laid at Madakumbura and Vellaioya estates marks the start of another 3000 houses in phases in as many as 40 estates and around 70 locations/divisions.

MP Ven. Athuraliye Rathana Thero says that an internationally accepted legal document should be formulated for the regulation of Glyphosate. Speaking at a conference held in Colombo yesterday (05), he said that there should be more support for public awareness programs on this matter.
 
He states that, presently, there are 32 containers with Glyphosate waiting to be released at the port, and that these Glyphosate imported from various countries should be inspected via a proper regulating authority before being released.
 
The thero got emotional while recollecting an incident he encountered related to the Glyphosate issue. According to him, a 20 year old man, whose father and uncle also died of kidney disease, was sent to India, by the help of the priest, for treatment of his kidney disease. However, the young man has died at the age of 28 due to the same disease. Rathana Thero says that hearing of such incidents is upsetting and yet the government has no policy regarding Glyphosate. 
 
He further said that it is regrettable that we are unable to discuss about something that is a matter of attention in the whole world. He says that there is no dialogue in the country regarding this issue due the lack of awareness among the public. He added that no politician in the country is currently addressing this situation.
 
Source : Ada Derana

Popular television presenter, compere and journalist Hema Nalin Karunaratne has passed away at the age of 55. He had passed away at his home in Malabe following a heart attack sources said. Karunaratne was reportedly found dead inside a room at his house at Millagahawatta Road, Thalahena according to the Police after the home owners raised the alarm. 

With over 25 years of experience in the television industry serving in channels including Rupavahini and Swarnavahini, Karunaratne headed his own satellite channel in Heritage TV. 

Rupavahini’s education service was a milepost in his life and he gained fame for the popular programme “9.05” which was a mainstay in the channel programmes for a long period.

Source : Ada Derana

 TNL Chairman Shan Wickramasinghe says the equipment belonging to TNL from its Polgahawela broadcasting station was taken after presenting an incorrect fault. 

According to him TNL has made the necessary payments to the government in order to broadcast pointing out that his organization which has been operating for 25 years has not faced similar accusations previously. 

Meanwhile Director of TNL, Ishini Wickramasinghe says legal action will be taken in this regard while presenting their case before the courts.

The Telecommunications Regulatory Commission (TRC) has sealed TNL TV's transmission centre in Polgahewela.

The station, in a Facebook post, stated that the "TRC is currently attempting to take our equipment into its custody. We condemn this act with the contempt it deserves as we, as a TV station, have paid due charges to the TRC."

TNL TV is part of the TNL group which is owned by Premier Ranil Wickremesinghe's brother, Shan Wickremesinghe.

It is suspected that the TRC has moved to seal TNL TV after it aired news segments that were highly critical of President Maithripala Sirisena. The news segments in question had highlighted contradictory statements made by President Sirisena.

The TRC is an institution that comes under the purview of President Maithripala Sirisena with the Secretary to the President Austin Fernando acting as its Chairman.

Former President Mahinda Rajapaksa claims he had no knowledge of being appointed as an advisor to the Sri Lanka Freedom Party (SLFP)
While claiming he loves the SLFP however Rajapaksa had said he would not be part of the party during the time is is aligned with the United National Party (UNP). 

He had also said when the Pohottuwa party is making major progress he has no interest to join the SLFP claiming that he will not tolerate being thrown out and then invited back if and when others in the SLFP feels like it.

Minister of Finance and Media, Mangala Samaraweera has been appointed as the Vice Chairman of the United National Party by Prime Minister Ranil Wickremesinghe. 

Posting a message on Twitter, Samaraweera said that "30 years ago, when I was first appointed as the SLFP organiser for the Matara district, I didn't even, in my wildest dreams, thought that I would get such a position in the grand old party."

Six Sri Lankans involved in human smuggling have been arrested in Sicily, Italy by Italian law enforcement officials.  

According to Italian media reports the six Sri Lankans were arrested today following investigations conducted by authorities. The arrest was made after two Sri Lankans were nabbed having false documents in Sicily.

Six other Sri Lankans were arrested thereafter when it was revealed they were part of a human smuggling operation which were smuggling Sri Lankans in to Sicily.

he present government deserves 100% credit from the people for establishing a mature democracy in the country within the last three years, Minister Mangala Samaraweera said yesterday. He also said that despite many persons criticizing the government for being weak, the same traits they identify as weaknesses are the characteristics of a mature democracy.

“I don’t believe even in the 1950s there was a democracy as what we have now. Anybody can criticize or write against this government. There is freedom to hold public protests just like in democratic countries. Within these three years, two Cabinet ministers stepped down from their posts. The Prime Minister was summoned before a Presidential Commission and he willingly gave evidence before the Commission. There was freedom to bring in a No Confidence Motion against the Prime Minister as well. This is what democracy is.”

"This is not a weak government. Strikes, disagreements and head changes are not weak characteristics of a government. What we have here is a mature democracy now.” Minister Samaraweera pointed out.

Drawing from the investigation presently carried out against the US President Donald Trump’s election campaign, Minister Samaraweera said it is the similar class of democracy that prevails in Sri Lanka at present.

Minister Samaraweera was speaking at the launching of “Sathya” (Truth) Campaign and the UNP Central Media Unit at Sirikotha yesterday morning. UNP Ministers including Gayantha Karunatilake, Harin Fernando, Akila Viraj Kariyawasam, State Ministers Eran Wickremeratne, Ajith P. Perera Dr. Harsha De Silva and UNP backbenchers were present at the occasion.

Minister Samaraweera further said that the present government has taken all initiatives to strengthen the reconciliation process . He pointed out that Sri Lanka cannot be economically developed if the ethnic groups in the country live in tension and disharmony. “The present government has made an enormous contribution to the country’s reconciliation process.
"President Maithripala Sirisena has visited Jaffna 17 times during his term of office so far and the Prime Minister has visited Jaffna on 12 occasions.” Minister Samaraweera pointed out.

The Minister also said that fake news have become the biggest threat to democracy in Sri Lanka as well as in the world.

He further said that certain groups were trying to portray truth as untruth and vice versa. While pointing out that the previous regime was a government that feared the word “Truth”, Minister Samaraweera said that the “Truth” campaign begins as a national movement that brings truth to the people.

He requested not to drag the country back to the dark era where the previous regime thrived. 
Source : Daily News

United National Party (UNP) Parliamentarian Ananda Kumarasiri has been elected as the 29th Deputy Speaker of the Parliament of Sri Lanka.

A secret ballot was held today (05) to determine the Deputy Speaker with the UNP nominating Kumarasiri and the United Peoples Freedom Alliance (UPFA) nominating the name of Gamapaha District Parliamentarian Sudarshini Fenandopulle. 

Kumarasiri managed to receive 97 votes as opposed to Fernandopulle who was only able to garner 53 votes.

Parliament will elect a new Deputy Speaker when it meets today in terms of Article 64(3) of the Constitution.

The parliament will be convened this afternoon at 1 pm under the leadership of Karu Jayasuriya and the main task of today's session would be to appoint the new Deputy Speaker.

A voting will be held to elect the Deputy Speaker since many names have been nominated to the post.

Several parliamentarian have been nominated for the Deputy Speaker post left vacant by the resignation of parliamentarian Thilanga Sumathipala. Since several names have been nominated for the past a vote will be taken to appoint a new deputy Speaker, the Speaker said.
 
MP Ananda Kumarasiri from the United National Party (UNP), Sri Lanka Freedom party national list MP Angajan Ramanathan and UPFA Gampaha district MP and former Deputy Minister Dr. Sudarshini Fernandopulle who is representing the Group of 16 have been nominated for the post of Deputy Speaker.
 
Dr. Fernandopulle would be the first women Deputy Speaker in the Sri Lanka Parliamentary history if she is selected for the post.
 
Thilanga Sumathipala who served as Deputy Speaker since 01st of September 2015 resigned from the post of Deputy Speaker and Chairperson of Committees of the Parliament on May 25th after he left the government.