New twist in the controversial LPG tale
A highly- influential company won an unsolicited bid to supply LP gas but as it failed to supply the gas, the contract was given to others in a never —ending saga of the controversial LP deal that has thrown open a fresh controversy.
This information emerged when on Tuesday the Committee on Public Enterprises (COPE) summoned the chairman of Litro Gas and its officials to inquire into allegations that a recent deal with Omani company OQ Trading was marred by irregularities.
Avant Garde Surface Safety Solutions had, some months back, sent a letter to Litro Gas Lanka Ltd stating that they are also willing to supply LPG, this letter with official documents showed. The contract was then approved on the direction of former Finance Minister Basil Rajapaksa.
In November 2021, former Litro Gas Lanka Chairman Theshara Jayasinghe told the media that he was instructed by the ‘top administration’ to break the ‘gas mafia’ involving the Omani company.
In May 2022, Mr. Jayasinghe told COPE that Avant Garde was willing to supply gas at a lower price. On Tuesday (this month), Mr. Jayasinghe attending the meeting virtually told the COPE that he had been pressurised to award the tender to Avant Garde which however failed to supply LPG causing a severe shortage in gas cylinders in the local market.
On Tuesday, COPE directed the recent controversial LP Gas deal to be investigated by the Auditor General.
It has suggested that an investigation be conducted by the Auditor General’s Department on the cancellation of the term tender given to purchase LP gas from Siam Gas at US$ 96 per metric ton and opting to buy 100,000 MT of gas at a cost of $129 per metric ton from Oman company OQ Trading.
Other startling revelations that came to light jolting committee members at Tuesday’s COPE meeting was that former Finance Minister Basil Rajapaksa was behind the sudden cancellation of the long-term tender with Oman’s OQ Company in February 2022, which resulted in the LPG shortage in the market.
“A long-term tender was signed in 2020 with the OQ Company to supply LPG till 2023. However on October 6, 2021, Mr. Rajapaksa held a discussion with all the relevant officials to cancel the agreement in February 2022,” an official source revealed.
Later OQ wrote to former Treasury Secretary S.R. Attygalle expressing their interest in supplying LPG for at least two more years. The Omani company then returned to the fray, this year, winning the LPG deal even though its price was higher than the Siam offer.
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