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Bitter battle continues over sugar deal
By Mahangu Weerasinghe
The explanation submitted by the suspended CWE chairman Upali Guneratne regarding his role in a sugar deal has been rejected and a new chairman is to be appointed tomorrow, Trade and Consumer Affairs Minister Jeyaraj Fernandopulle said.

As the bitter battle continued over the sugar deal, the minister said he was not satisfied with the explanation given by Mr. Gunaratne and former National Lotteries Board Chairman Upali Liyanage would be appointed to this post tomorrow.

The dispute between the Minister and the CWE chairman arose when Mr. Gunaratne refused to approve the import of sugar from Brazil as proposed by the minister.

Colombo-based Mushin Traders had offered the CWE a cargo of Brazilian sugar at US$ 197 a metric ton. This price was about US$ 90 below the current world market price. Mushin Traders, agents for the Kingdom Trading Corporation in Bahrain, had offered to supply the country cheap sugar even without a Letter of Credit.

Mr. Gunaratne responding to the Minister said: "There has been no cabinet decision to buy sugar from Mushin Traders. Usually sugar is bought only from members of the Refined Sugar Association of London as this guarantees a safe product. Both the Treasury and the Brazilian Embassy have asked us to beware of companies offering such unbelievably low prices.

"Although the Minister is pushing the deal saying that the dealer does not require a Letter of Credit, the company in question has asked for a Documents Against Payment, which is in fact worse. The agreement does not allow a Discharge Port Survey, as is the normal procedure, and thus we cannot be sure of the quality of the sugar, as we do not get to check it in Colombo. The terms of the agreement are thus very tricky, as we cannot be sure of the quality of the sugar before we purchase it."

Mr. Gunaratne denied the Minister's allegations that he was trying to mislead the public. "I was just acting in the public interest, standing up for what is right, and doing my duty as a lawful citizen," he said.

Minister Fernandopulle said: "We have also informed the cabinet about this stock, and the Treasury has approved it as well," the minister said. "This import will give the country a saving of more than 125 million rupees,” he said.

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