The Ceylon Electricity Board Engineers Union (CEBEU) has filed a fundamental rights petition, seeking an injunction against what it calls “unlawful” agreements the Government has entered into with the US-based New Fortress Energy (NFE). The Supreme Court petition follows announcements by CEB unions that they would launch trade union action against the agreements from November [...]

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Kerawalapitiya plant: CEB engineers seek SC order to quash Govt.’s deals with US firm

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The Ceylon Electricity Board Engineers Union (CEBEU) has filed a fundamental rights petition, seeking an injunction against what it calls “unlawful” agreements the Government has entered into with the US-based New Fortress Energy (NFE).

The Supreme Court petition follows announcements by CEB unions that they would launch trade union action against the agreements from November first week.

In its petition, the union said the NFE had submitted an unsolicited proposal to the Finance Ministry to supply Re-Gassified Liquefied Natural Gas (RNLG) for five years, in spite of a February 18 tender calling for international bids for the deployment of a Floating Storage Regasification Unit (FSRU).

Whilst the tender process was still ongoing, the Government submitted Cabinet Memoranda dated 05.07.2021 and 06.09.2021 to entertain NFE proposal.

Therefore, the agreement reached between the Government and NFE to sell 40 percent of Government shares in the Yugadhanavi Power Plant to NFE and to purchase LNG (liquid nitrogen gas) from NFE is illegal and arbitrary, the union argues, claiming that the deal, is against Sri Lanka’s Energy Policy gazetted on August 9, 2019 and the Sri Lanka Power Act No. 17 of 1969.

The CEBEU further claims that the respondents have misled the Cabinet with regard to this deal and acted in a conspiratorial manner.

In such circumstances, the petitioners have appealed to court to declare null and void all agreements entered into between the Government and NFE, while also declaring null and void, the sale and/or transfer of shares of the Yugadhanawi owning company, West Coast Private Limited (WCPL), to NFE.

The petition cites 73 respondents, including the Attorney General, the Prime Minister, the Cabinet, the President’s Secretary and the Treasury Secretary.

Meanwhile, raising issue under Parliament Standing Orders, National People’s Power (NPP) Leader Anura Kumara Dissanayake on Friday (22) alleged that confidential details in the tender document which the CEB had selected after calling for open international competitive bids had been illegally used by the Finance Ministry to justify NFE’s unsolicited proposal.

Mr Dissanayake revealed that the Finance Ministry Cabinet proposal to award the contract to NFE over those who had submitted bids under the tender process had noted that the prices quoted by NFE were lower than those on the bids.

Details of the bids are supposed to remain a secret until the tender process comes to an end, Mr Dissanayake pointed out. “So, how did Finance Minister Basil Rajapaksa know that the bids were higher than the prices quoted by NFE?” he asked.

The CEBEU is also planning trade union action to protest against the agreement. A spokesman said all main trade unions, including the National Trade Unions Centre, would support the trade union action. The TU action will continue until the Government withdraws from all agreements with NFE, he vowed.

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