Controversial import of spare parts for SLTB buses under scrutiny

By Ashwin Hemmathagama 

Our Lobby Correspondent

The controversial import of spare parts for Sri Lanka Transport Board (SLTB) buses in 2011 by a private supplier evading tender procedures and taxes is now being examined by the Financial Crimes Investigation Division and Sri Lanka Customs. 

According to the FCID report, the procurement process has been contravened by the then Directors of SLTB, members of the Tender Board and Chairman, who have infringed the prescribed tender procedure of the Government and caused losses by acting outside prescribed tender procedures. 

“Sri Lanka Customs reveals by its report that Rs. 298,094,509 of State income has been fraudulently sent to India by Steel Inspex and Industries Ltd. and its employees and Section 12,43, 47, 51, 52, and 129 of the 235 chapters of the Customs Ordinance have been violated by this company by doing so and a trial regarding this is being conducted under the Customs ordinance,” Minister of Transport and Civil Aviation Nimal Siripala de Silva told Parliament yesterday in response to a question for oral answer raised by Opposition MP Sunil Handunnetti.

Informing the House of the details of the fraudulent transaction, Minister Siripala de Silva said: “Spare parts were purchased from the local open market till April 2011. According to a decision taken by the Board of Directors of the SLTB, after calling bids from the spare parts and accessories suppliers by publishing a newspaper advertisement on 14 February 2011, the contract of supplying spare parts for the buses was granted to Steel Inspex and Industries Ltd. based on the recommendations of the Technical Evaluation Committee. Subsequently, considering the delays of supplying spare parts by only one institution, Nimbus Automotive Lanka Ltd. was selected to import and supply spare parts subjected to the prices and methodologies agreed by the Steel Inspex and Industries Ltd. in year 2012.”

“Steel Inspex and Industries Ltd. was selected first to import spare parts by inviting open bids from suppliers who wish to keep stocks in stores allocated by the SLTB by utilising their own capital under the name of SLTB supply spare parts to the SLTB depots and regional workshops on concessionary loan basis according to the requirement in 2011 for prevention anomalies that might take place most often when purchasing spare parts from regional markets,” he added.