Massive stock of substandard rice in CWE warehouses raided

• Health authorities warn people to be cautious when buying red rice and nadu rice
• Mixed with harmful chemicals to enhance the appearance of rice stocks
• Anti-corruption commission reveals names of unscrupulous traders
• MoHs detected 420,000 substandard rice stocks from CEW warehouses

By Shanika Sriyananda

Health authorities warn people to beware when buying red and nadu rice as they have detected a massive racket run by rice traders and millers that sell substandard rice, which is unfit for human consumption.

The substandard rice stocks have been polished, coloured with harmful chemicals and mixed with low-graded rice to enhance its appearance.

This unscrupulous trading practice was revealed when  Medical Officers of Health (MoHs) detected over 420,000 kg of substandard rice stocks from the warehouses of the Cooperative Wholesale Establishment (CWE) in several locations in Colombo, including Maligawatta, yesterday.

The Medical officers, following the information received from the Presidential Commission of Inquiry into Investigate and Inquire into Serious Acts of Fraud, Corruption and Abuse of Power, State Resources and Privileges (PRECIFAC), had begun inspecting the CWE warehouses a few weeks ago.

The PRECIFAC is currently investigating financial irregularities in the CWE surrounding the  import of 225,000 metric tons of rice during the last quarter of 2014, during the previous regime.

Reliable sources told the Daily FT that the health authorities will take legal action, soon, under the Food Act against the CWE and any others involved in the shady trade to sell rice unfit for human consumption. They have also detected another CWE warehouse in Weyangoda and some containers of  substandard rice stocks.

According to information received by the PRECIFAC when grilling some of the top officials of the CWE, it was revealed that some of the top rice millers in the country have also have a hand in this shady well-organised business.

“ These unscrupulous traders and rice millers have used certain chemicals and colours, which are harmful to humans, to enhance the appearance of the substandard rice stocks. They have also used chemicals to keep them fresh. Most of the substandard rice stocks are being sold as red rice (Rathu kakulu) and nadu,” they said adding that the business is thriving from Maligawatta to Polonnaruwa to Jaffna.

According to sources, the CWE was granted the Cabinet approval to import 50,000 metric tons of rice from India and Bangladesh but the then CWE administration had imported 225,000 metric tons of rice from private parties.

The PRECIFAC, which has questioned  a large number of CWE officials, found that the CWE had not followed the tender procedure in importing these rice stocks and imported through certain private rice importers.

When contacted, the PRECIFAC Secretary Lacille De Silva said that the PRECIFAC is further recording statements from the CWE officials and those who are involved in this business to calculate the massive loss incurred to the government through this rice deal.

“ We have given the list of names who are involved in this unscrupulous trade practice to the relevant authorities to take legal action against them. Following the information we gathered during our investigations into the CWE racket, we have found a large amount of rice stocks, unfit for human consumption, are scattered around the country,” he said.