News
Political undercurrents in deal with Malaysian firm: CEB engineers tell President to order probe
The Ceylon Electricity Board Engineers Union (CEBEU) has requested the President to hold an impartial investigation into the Public Utilities Commission of Sri Lanka (PUCSL) over action filed by a Malaysian energy company claiming US$ 160 million for violating an agreement.
The case has been filed by KLS Energy of Malaysia requesting compensation for the loss it had to incur as a result of the Sri Lankan government violating the treaties the governments of Sri Lanka and Malaysia had agreed upon.
In a letter sent to President Gotabaya Rajapaksa, the CEB Engineers Union (CEBEU) has pointed out that the CEB has already paid in excess of Rs. 200 million to foreign lawyers as costs in this case.
The CEBEU has said in its letter that a senior PUCSL official had issued a generation licence for a 35 MW Wind/Solar Hybrid Project to KLS Energy sans prior approval from the PUCSL.
The letter granting approval was signed on December 30, 2009 at a time the PUCSL Director General had resigned after he refused to give approval for the project.
In the letter sent by the CEBEU, it is stated that according to the Sri Lanka Electricity Act No. 20 of 2009, no licence to generate above 25MW can be issued by PUCSL to any party other than the CEB. However, a letter was issued to give a licence to KLS Energy.
The PUCSL’s then Director General Ranjith Perera had informed the Government that it was against the law to grant approval for this project. Nevertheless, due to the strong influence from a government faction to grant approval, the Sunday Times reliably learnt Professor Perera had resigned from his post.
Although the CEB had signed a 20-year power purchase agreement with KLS Energy on the instruction of the PUCSL, the CEB had withdrawn from the agreement based on delays in construction and various technical reasons.
The CEBEU said it might be appropriate for the Government to inquire into the issuing and signing of this letter through a proper authority similar to the Auditor General or the Bribery Commission.