Treasury ignores AR/FRs to import 1000 pickup vehicles for state agencies
View(s):Overlooking AR and FR (Administration and Financial Regulations), the Treasury is to import 1000 pickup vehicles for state agencies (Ministries, Departments, Corporations and state institutions) on the eve of the 2015 budget bypassing tender procedures, informed sources revealed.
The Treasury has picked United Motors Lanka PLC this time to purchase these 1000 vehicles without the usual process of calling for tenders and overlooking previous suppliers including Associated Motorways Ltd (AMW), Diesel & Motor Engineering Plc (DIMO), Toyota Lanka Ltd, sources said.
The deal was finalised by an influential Sri Lankan government official during a visit overseas with a Sri Lankan businessman there, motor industry sources disclosed.
The practice of procuring vehicles for government agencies once in three years by the Treasury is unbearable for a country like Sri Lanka, an eminent economist who wished to remain anonymous told the Business Times.
He said that a brand new vehicle could be used in good condition for at least five years even after 10 per cent depreciation per year. He added that he cannot understand the purpose of importing 1000 pickups on the eve of 2015 budget and an anticipated presidential election.
These new vehicles will be purchased through cash from the Consolidated Fund.
The Department of National Budget will negotiate with the Bank of Ceylon and the People’s Leasing Company, a subsidiary leasing company of the People’s Bank, and – in this case – on terms and conditions of the leasing arrangement in line with guidelines on procurement of vehicles, the sources said.