Further evidence on 5 Oct

Corruption case against Kumara Jayakody:

Former Chairman of Lanka Fertilizer Company, Buddhika Ruwan Madihahewa yesterday (7) told the Colombo High Court hearing corruption case against former Energy Minister Kumara Jayakody that in his capacity as the Chairman had approved an advance payment of RS. 8.8 mn to D.S. Construction on the basis of confirmation made by the Procurement and Finance Divisions that procurement procedures had been followed. Jayakody had been the Procurement Manager at that time.

Jayakody resigned in April this year following controversy over the case and the exposure of alleged irregularities in the coal procurement process.

The case was taken up before Colombo High Court Judge Rasantha Godawela, who ordered that further trial of evidence in the case filed by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) against Jayakody be taken up on 5 Oct.

Madihahewa, who testified under the direction of CIABOC Deputy Director General Asitha Anthony, told court that a procurement process had been initiated in 2014 to select a bidder to carry out the carpeting of roads at the Hunupitiya warehouse complex of Lanka Fertilizer Company.

The witness said that Jayakody, had been serving as the Procurement Manager of the company at the time.

According to him following the procurement process, a company named D.S. Construction was selected to carry out the road carpeting project. An advance payment of Rs. 8.8 million had subsequently been made to the company against an advance payment guarantee, the witness said.

The witness stated that he had approved the payment after examining documents submitted by the Procurement and Finance Divisions confirming that the relevant procurement procedures had been followed properly.

However, the witness admitted that the company had failed to carry out the carpeting work. He further revealed that some materials, had been left within the company premises.

He further testified that subsequently, only Rs. 2.2 million had been recovered under the advance payment guarantee provided by the company.

The CIABOC had filed the case against the former Minister alleging that while serving as the Procurement Manager of Lanka Fertilizer Company in 2014, he had caused a loss of Rs. 8.8 million to the government by carrying out procurement activities relating to the carpeting of the company’s warehouse premises in a manner favourable to a private company.

from The Island https://ift.tt/Gc07UFP