Spotlight

Tender matters and port deals

By Frederica Jansz 

Chairman, Sri Lanka Ports Authority, Dileepa Wijeysundera and the US Embassy in Colombo have been slammed in a report classified as highly confidential, submitted by a 12 member committee that evaluated and recommended the......

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> JVP's 'full option' hypocrisy 

> A Rs. 20 million "biography"

Tender matters and port deals

Minister Mangala Samaraweera

Tissa Vitharana

By Frederica Jansz 

Chairman, Sri Lanka Ports Authority, Dileepa Wijeysundera and the US Embassy in Colombo have been slammed in a report classified as highly confidential, submitted by a 12 member committee that evaluated and recommended the purchase of electronic scanning equipment for the Colombo port.

Wijeysundera, together with his Minister, Mangala Samaraweera are also under fire for having interfered in a previous tender to install a new computer terminal management system to be purchased to service the Jaya Container Terminal (JCT) and the North Pier Development Project at the Port of Colombo.

Meanwhile, both men are also pushing for an oil tank farm to be built in Hambantota at a cost of US $ 67 million more than that estimated in a project evaluation report.

And it is in this backdrop that a 12 member committee that evaluated offers to purchase four scanners for the Colombo port in a confidential report dated April 18, 2005 to Deputy Secretary to the Treasury, S. B. Divaratne, has severely criticised both Wijeysundera and the US Embassy in Colombo for attempting to interfere with the tender calling for electronic scanning equipment - lobbying for selected favourites.

Eliminated

The report states that in one instance, one supplier had even met the Chairman SLPA, who subsequently wrote to Divaratne who functioned as chairman, cabinet Appointed Negotiating Committee (CANC) in relation to this tender, complaining that "TEC had systematically eliminated Gamma Rays from the competition."

The Project Committee is of the opinion that this is a serious insinuation against the evaluation done by this committee. Further, that for Wijeysundera to have arranged a meeting with this supplier "is considered against the accepted norms of government tender procedure and is unethical," committee members assert in their jointly signed report.

The Project Committee which evaluated the offers for this tender, comprised 12 senior government officials. The committee was chaired by Commandant, Kotelawela Defence Academy, Rear Admiral C. N. Thuduwewatte.

Other members included Director Planning, Sri Lanka Air Force, A.V.M.C. Gunaratne, Director General Military Intelligence, Major General K. Hendawitharana, Director, Sri Lanka Customs, M.H.R. Tissera, Director Bonds - Sri Lanka Customs, P.D.K. Fernando, Director Narcotics - Sri Lanka Customs, S. Ramachandran, Head of Engineering Department - University of Moratuwa, Prof. R. A. Attalage, Senior Manager Security and Investigations - Sr Lankan Airlines, Major B.D.N. Perera, Chief of Electronics - Airport and Aviation Services Ltd., W. Wimalshanthi, Director Technical, Sri Lanka Ports Authority, S.H. Liyanage, Electrical Engineer, Sri Lanka Ports Authority, H. A. Ariyasinghe,  and Director, Department of State Accounts,  D.P.R. Senadhipathi.

In December last year the Ministry of Finance invited offers for the supply of electronic scanning equipment for the 'Non - Intrusive Inspection' (NII) of container and bulk cargo in the Port of Colombo.

Offers for this equipment were called by advertising in local newspapers including in Sri Lankan missions abroad. Offers closed on January 21, 2005. Subsequently, the closing date was extended to February 1, 2005.

Bidding system

The tender was thus opened on February 1, this year, by the Ministry of Finance. The proposals were invited on the basis of the two envelope bidding system, where technical proposals and financial proposals are forwarded separately. The technical proposals are evaluated first, while the financial proposals remain closed until the final stage of evaluation. This method, it is believed, helps the government evaluate the best system as per specifications.

But during the course of evaluating offers, both the US Embassy in Colombo and Chairman SLPA, Dileepa Wijeysundera protested at the manner in which the tender was being evaluated.

At a special meeting summoned on January 20, 2005 by Divaratne, the Project Committee members were told of the protests lodged by the two concerned parties.

One protest came from the US Embassy which stated that some of the US companies would not be in a position to participate in the tender, unless the specifications were broadened.

The second complaint came from the SLPA Chairman himself, where Wijeysundera admitted to having actually met with a supplier. As pointed out by the Project Committee, the insinuation made by Wijeysundera against the committee was not only serious, but his actions too were against the accepted norms of government tender procedure.

The Project Committee is of the opinion that there was no reason to make any changes to the specifications, "as specifications had been prepared after much deliberations and considering national requirements," they said. The committee adds, "specifications should not be changed to suit any individual request, for any supplier, or any other interested party."

After studying six proposals, the Project Committee had agreed that two should be excluded from further evaluation as they failed to fulfill tender conditions. The two companies were IPS Marketing Resources Pte. Ltd. and Singapore and Hytec Inc. USA.

Excluding the American-based company Hytec Inc. USA is what apparently caused the controversy with the US Embassy in Colombo.

Baseless assertion

On February 22, Divaratne had handed over a letter received by him from the US Embassy economic officer, which charged that some important aspects of the technical specifications prepared in consultation with a US contractor in 2003 and 2004 had been changed. But the Project Committee maintains that the changes incorporated into the 2004 specifications were done to suit Sri Lanka's national requirements and after careful deliberation.

The Project Committee asserts that in this context, "the allegation by the US Embassy is baseless and incorrect." It was further revealed that in 2003/2004, the US company had been contracted by the government through the US Embassy, for preparation of technical specifications. The Project Committee maintains that these specifications were included in the 2004 specifications stated in the tender document.

But in another letter to the government, this one from the US defence attach‚, he has mentioned the US company, Hytec Inc. by name as having participated in this tender but was rejected due to failing to conform to tender specifications.

This same company according to the Project Committee report had, "attempted to induce unnecessary influence on two members of the TEC, while the tender was progressing.."

The committee notes that "such influence by any company or authority on the GOSL or TEC is unethical and should not be tolerated."

The Project Committee reiterates that documents were found where similar pressures had been exerted by the US Embassy in a previous tender called by the Sri Lankan government.

"Not legal"

"As per such a letter, it is not legal for the US Embassy to support one US company over the others, though such a situation has occurred during this year (2004/2005) in this tender too," the report states.

And in the midst of allegations and counter charges, TEC recommended that Smiths Detection (Asia-Pacific) Pte. Ltd. be included in the next stage of evaluation as the company that had conformed to almost all requirements to supply the required scanners.

In the meantime, sources revealed that this is not the first time SLPA Chief Dileepa Wijeysundera has directly interfered with government tender procedure and a government tender.

On a previous occasion, The Sunday Leader highlighted details of a full scale controversy that erupted soon after Wijeysundara accepted the position of Chairman SLPA, following the April 2, 2004 general election.

Upon assuming his post, he initiated a strong lobby, calling upon the UPFA government to cancel a contract already recommended and approved by a Cabinet Appointed Tender Board under the former UNF regime.

The issue concerned a new computer terminal management system to be purchased to service the Jaya Container Terminal (JCT) and the North Pier Development Project at the Port of Colombo.

Wijeysundara, as the new chairman of SLPA on that occasion too had gone so far as to personally identify "suitable" suppliers, two of whom had already been disqualified at a pre-qualification stage by the Technical Evaluation Committee.

Condemning the supplier selected by TEC and a Cabinet Appointed Tender Board (CATB) Wijeysundara maintained to The Sunday Leader when we spoke with him at the time, that the UPFA government was to soon call for fresh bids, of which he said those who had made offers previously would be requested to do so once again, and their bids re-evaluated.

Insistence

What was not clear was if Wijeysundara had already identified "suitable suppliers" why the government was even going ahead with the process of calling a fresh tender. Wijeysundera did not comment when we asked if this would mean short-listed suppliers will be immediately disqualified.

Wijeysundara insisted that the multi-million dollar contract earmarked for award to the Japanese Mitsui Engineering and Shipbuilding Company (MES) was overpriced by at least US $ 2 million. The Ports Chief claimed further that the IT system on offer by MES was inadequate and not the best in comparison with at least four other bids that were disqualified by a previous Technical Evaluation Committee.

The financial offer by MES cost an estimated Rs. 945 million ( US $ 9.4 million), monies for which are to be drawn out of an aid loan amounting to Rs. 1.3 billion (US $ 13 million) from  the Japan Bank for International Corporation (JBIC).

The tussle as to who should secure this lucrative deal and the controversy created by Wijeysundara compelled Chief Representative, JBIC in Colombo, Shafiya Ejima, to write on October 8, 2004 to the director general, Department of External Resources at the Ministry of Finance. In this letter, Ejima urged the Sri Lankan government to solve this issue amicably and probe "the possibility of negotiating with the selected applicants for a mutually beneficial solution to the issues now raised" by this government.

But even before Ejima's letter, the matter came to a head, when in June last year, Minister Mangala Samaraweera submitted a cabinet memorandum proposing cancellation of the existing terminal management system tender and recommended calling for fresh offers based on new terms of reference done by the SLPA.

The delay in the award of this tender is due to Access Navy JV having been rejected due to failure to conform to tender specifications. Access Navy, we reliably learn, had tried hard to cancel this tender even during the regime of the UNF by attempting to pressure former Financial Advisor to the government, R. Paskaralingam.

And as the issue heightened, entangled in a web of politicking, Samaraweera submitted a second cabinet memorandum on May 4 this year which purported to outline details for "The Three Year Business Plan of the Sri Lanka Ports Authority." However the cabinet paper was submitted minus the required annexures and at the May 4 cabinet meeting, Minister for Science and Technology, Prof. Tissa Vitharana raised the issue, insisting cabinet could not pass the document without having scrutinised the annexures.

Heated debate

A heated discussion followed which finally resulted in cabinet deciding to appoint a special committee headed by Finance Minister Dr. Sarath Amunugama to study the matter in some detail. Thus the award of this tender too hangs in the balance.

What is significant in this backdrop is the conduct of the SLPA Chairman. For Wijeysundera being chairman SLPA has little justification and certainly no right to cancel an internationally floated tender, unless the CATB decides it is necessary and does so after having obtained cabinet approval.

Already JBIC on being informed of this tender being cancelled following Samaraweera's cabinet paper, has requested for reasons, lodging a strong protest with the Department of External Resources on May 12, 2005.

But the tender is to be cancelled for on May 9, the new TEC members recommended that the tender be cancelled fresh tenders called.

And Samaraweera and Wijeysundera are determined to proceed. In similar vein to the manner in which Samaraweera is bulldozing ahead with constructing an oil tank farm in Hambantota at a cost of US $ 100 million.

This is despite an evaluation done by an international consultancy firm having clearly stated the project is totally unfeasible for Hambantota, but if implemented would require a total of only US $ 33 million dollars and not US $ 100 million.

The justification for the massive difference in price - 67 million US dollars - Mangala Samaraweera and Dileepa Wijeysundera are yet to explain.

JVP's 'full option' hypocrisy

By Frederica Jansz, Marianne David and Dharisha Bastians 

Once again, the hypocrisy and double-speak of the Janatha Vimukthi Peramuna (JVP) has reared its ugly head. This time initiated by the party's holier than thou Deputy Minister, Sunil Handunetti.

On May 10, the JVP's Deputy Small and Rural Industries Minister, Sunil Handunetti, was driving down Pagoda Road, Nugegoda when he met with an accident. The time was 10:15 a.m. and Handunetti was in the driving seat of a red Toyota Hilux double cab bearing registration number WPJH 3850.

Deputy Minister Sunil Handunetti

He hit the back of a white Nissan Wingroad WPJU 3803 near Ananda Balika Mawatha on Pagoda Road. The driver of the white Nissan car was Prasanna Karunaratne of 53, Ihalakundasale, Kandy. The crash caused the rear windscreen of the car to shatter while the entire back caved in. The damage to the double cab however was minimal. Handunetti was visibly shaken when he got down from his vehicle. And he had good enough reason to be so. For, apart from the initial shock of the crash, Handunetti did not possess a valid driving licence. No brakes Walking up to Prasanna Karunaratne, the gentleman driving the white Nissan, Handunetti offered to reach a settlement amicably. Both men agreed not to take the matter to courts.

Buddhika Pathirana and Manusha Nanayakkara, both members of the Southern Provincial Council witnessed the accident. They had been driving behind Handunetti's vehicle when he crashed into the white Nissan.

Pathirana had instructed his driver to overtake the two vehicles and proceed. While doing so however, both Pathirana and Nanayakkara had recognised Handunetti in the driving seat of the double cab. Pathirana immediately instructed his driver to stop the vehicle they were travelling in and he together with Manusha Nanayakkara got down. By which time, Handunetti had also descended from his vehicle as had the driver of the white Nissan car.

Pathirana and Nanayakkara walking upto Handunetti had inquired if he was okay and what had been the cause for the crash. Handunetti had replied, "I could not apply brakes."

The JVP minister had then tried to defuse the situation requesting Pathirana and Nanayakkara to leave. Both provincial councilors had asked him if he and the owner of the white Nissan were covered by insurance. To which Handunetti who had by this time somewhat recovered his composure replied, "No problem machang. both vehicles are full option - full insurance."

Pathirana and Nanayakkara had then left the scene of the accident.  It was what took place thereafter that amply portrays the shallowness of the JVP and in this case Sunil Handunetti.

For an entry for future reference at the Mirihana police station made by PC4180 gives the name and address of Prasanna Karunaratne as the driver of the white Nissan car, but has written an unknown name and address as the driver of the double cab which Handunetti was driving. The police entry states that WPJH 3850 was driven by Keith Bernard Perera of 90/2A, Pahalakannagahamuna, Ragama Road, Kadawata.

Finding out that Handunetti did not possess a driving licence the Mirihana police resorted to one of the oldest ploys used by those in power - at least in Sri Lanka - when incidents of this nature occur.  To introduce an individual innocent of the offence.

For when the Mirihana police turned up at the scene of the crash  upon recognising Sunil Handunetti, their first instinct was to hush up details of the accident.

Instead of chiding Handunetti for not possessing a driving licence and booking him for breaking the law, IP Chandrasena, OIC (Traffic) Mirihana Police instead resorted to hide all details of the accident, abusing his uniform and office as an inspector of police, forcing a subordinate to follow suit.

Chandrasena at the very least should have demanded a spot fine from Handunnetti which for not possessing a licence is Rs. 150. If Handunetti for some reason refused to pay he should have been produced before a magistrate.

On the other hand, since the accident was of a rather serious nature given that the white Nissan was badly damaged and Handunetti who by his own admission at the scene of the accident had admitted it was because he had failed to apply brakes, then the police should have produced him - as they would have any other miscreant - in a court of law.

But  the OIC (Traffic), Mirihana Police did neither. He was assisted in his deceit by ASP (City Traffic), Indu Karunaratne who we learn requested IP Chandrasena to assist the two parties to help claim insurance and have their vehicles repaired, instead of charging Handunetti for being behind the wheel minus a driving licence and causing an accident as well.

The police thus aided and abetted the JVP Deputy Minister to subvert justice and the rule of law. For Handunetti would have to submit the name of a licenced driver, which cannot in these circumstances be himself, in order to claim insurance for the damaged Toyota Hilux double cab.

The police should at the very least have subjected Handunetti to a breathalyser test as they would certainly have done with any other ordinary citizen.

But the OIC (Traffic) Mirihana Police failed to even lodge an entry of the accident in the 'Accident Information Book' (AIB) which is usually a necessary requirement.

Such information is considered vital particularly if it involves a VIP - and this accident did involve a Deputy Minister.

And the holier than thou JVPer did not request that the police should do their duty by the book either.

IP Chandrasena also did not record the accident in a daily situation report which is submitted to the IG's Command Room for information which must be passed onto the Inspector General of Police and senior police officers and even President Chandrika Kumaratunga.

Typically what occurred only proves the culpability of the police to pay pooja to politicians in office and bend the law to suit Handunetti and his kind.

Even Director, Traffic, SSP Lucky Peiris had not been informed of the accident until the morning of May 27, when following our probe into the incident, an unidentified informer telephoned Peiris and told him about the incident adding that the Mirihana police were conniving with Handunetti to name a licenced driver as having been behind the wheel of the double cab at the time of the accident.

As the entry at the Mirihana Police Station proves, this is exactly what indeed happened.

"I intend to check on it," Peiris said when we spoke to him, saying he had received absolutely no information of an accident involving Sunil Handunetti.

Denials

Meanwhile, OIC (Traffic) IP Chandrasena denied any knowledge of the accident. "I know nothing," he said, insisting that while there was no entry made of the accident he knew absolutely nothing of such an incident involving Sunil Handunetti.

City Traffic ASP, Indu Karunaratne voiced an identical denial when we spoke with him. "I know nothing of such an accident," he claimed before abruptly switching off his mobile phone.

Later, SSP Lucky Peiris confirmed that he had acted immediately and checked with IP Chandrasena who had indeed confirmed an accident of this nature had taken place on May 10, at Pagoda Road confirming the existence of an entry to this effect for future reference - one that did not carry the name of Sunil Handunetti.

The inspector's admission to SSP Lucky Peiris only further proves his culpability to subvert justice as well as lying in the process. For there are two witnesses to the accident, Buddhika Pathirana and Manusha Nanayakkara, both men who not only saw Sunil Handunetti at the wheel of the double-cab that crashed but also spoke with him at the scene of the accident.

For all its fiery rhetoric this accident proves in no small way the double speak and hypocrisy the JVP stands guilty of in failing to uphold the rule of law. Their hypocrisy knows no bounds as they will stoop to even forcing the police to bend the law and ignore rules in order to swing a situation in their favour. Not that Sri Lanka's police requires much persuasion.

Then the day after the accident, May 11, Deputy Minister Sunil Handunetti made a beeline to the Department of Motor Traffic in Werahera, Boralesgamuwa.

Complaining and cursing at his misfortune to all and sundry, the Deputy Minister filed his application for a driving licence. The application was submitted with a minute from the commissioner of motor traffic asking RMV officers to expedite the application process. The register of applicants at the Department lists S. Handunetti 117/W/C1/D/05/15400 as having paid the required Rs. 620 application fee with Bank Voucher No. 114040. The register also states that the application has been filed without submission of the stipulated original documents of birth certificate and NIC. For this reason, the application processing officials had refused to accept Handunetti's application, RMV sources told The Sunday Leader.

According to the register, Handunetti was to be present for a driving test on the same day. However, his name does not appear on the list of candidates that sat the driving test at the department on May 11. Department officials believe that either Handunetti absented himself or he arrived for the test and was turned away by examiners because of his disability.

Handunetti would find it harder than others to obtain his driving license on account of the fact that he is missing two fingers on each hand - a disability that is more commonly believed to be an unfortunate mishap involving the construction of a 'duppie' bomb during the JVP's 'gory' days in 1988/1989. Handunetti also has a few missing toes.

His disability would bar department authorities from granting him a licence, unless a special order is made by the Commissioner of Motor Traffic, following medical clearance by a department authorised medical practitioner. This medical certificate was not part of Handunetti's application either. Department officials maintain however that unless Handunetti's application is cleared at the department, the Narahenpita branch cannot issue his licence.

In response to queries put forward by our sister paper Irudina during the week of the accident, Additional Commissioner, Motor Traffic, Wimal Rupasinghe said that a medical certificate is vital to obtain a licence and that this certificate must state that tests have been conducted to ascertain the candidate's fitness, vision, height, weight and use of limbs and organs.

Rupasinghe added that even if a person missing fingers were to submit a medical certificate confirming fitness, at the driving test examiners from the department would note the problem. And since an examiner could not make a decision on the candidate's ability to drive, the case would have to be referred to a special high level committee in the department for advice.

However, eyewitnesses to the May 10 accident claim that Handunetti was most certainly in the driver's seat of the double cab that crashed into the Nissan.

Handunetti stands guilty of contravening Section 123 of the Motor Traffic Act which states (a) no person shall drive a motor vehicle of any class on a highway unless he is the holder of an effective driving licence which is valid for motor vehicles of that class.

Breaking the law

Section 125 (4) of the Motor Traffic Act states no driving licence shall be issued to any person if he is suffering from any such disease or disability as may be prescribed or if the commissioner is satisfied that the person suffers from any physical or mental disability which is likely to prevent him from driving a motor vehicle in a safe and proper manner.

According to Director (Traffic), Lucky Peiris, it is the RMV that decides on whether to issue licences to people with disabilities, depending on the disability. As for those who drive without licences, he said such offenders would be charged.

"We charge drivers who do not have licences. If it is a heavy vehicle and the driver does not have a licence, we take charge of the vehicle and take it to the police station, where it is released only when the registered owner of the vehicle arrives with a valid driving licence," he said.

This however did not happen in this case. For the police did not take charge of the red Hilux double cab Handunetti was driving at the time of the accident which could not have been in his name given that he does not possess a licence nor have they charged him for committing an offence by driving a vehicle without a licence.

Despite repeated attempts by The Sunday Leader, Handunetti was not available for comment.

A Rs. 20 million "biography"

President Chandrika Kumaratunga

By Dilrukshi Handunnetti  A Dubai-based company has undertaken to compile the biography of President Chandrika Kumaratunga including a massive public relations exercise costing around Rs. 20 million which is to be completed by June 29, to coincide with President Kumaratunga's birthday. Authoritative sources confirmed that Ports and Civil Aviation Minister Mangala Samaraweera spearheads the project, with at least three government sponsors and several well-wishers extending financial assistance for the same. What is incredible is that the project has been commissioned to Media Prima, a Dubai-based company only on May 4, to meet a deadline of June 29, according to information received. The final draft, it is learned, is expected to be ready for release by June 28. Initial discussions have been held between the company and Minister Samaraweera just prior to the finalisation of the project which has a local representative, a company named Luxury Holiday Travels.

No initial draft

According to information received, no initial draft has been prepared as yet while the author awaits further instructions. Biographer Lord Jeffery Wilson has been specially flown in to the country for the purpose of compiling the biography.

Lord Wilson has complied several biographies of leaders of the Arab world and some in Europe. In addition to being a famous biographer, he has also done compilations for promotional purposes. He has completed a similar project for Emirates Airlines and compiled the history of Sri Lanka's national carrier some months ago.

When contacted, Local Representative, Media Prima, Ramzi Ali said that besides being a biography, it would also be a huge publicity exercise to promote the image of Sri Lanka through the sale of the book. He said that such a programme was vitally important in the post-tsunami scenario.

Accordingly, the biography which is expected to be released on June 29 is to be launched worldwide with President Kumaratunga gracing two such events - to be held in Colombo and London.

The other selected destinations are Washington DC, New York, Ontario, Oslo, Paris, Bonn and Prague with the likelihood of more venues being added to the list, depending on the requirement as assessed by Minister Samaraweera, according to sources.

Adding a further twist to the tale of the Presidential biography is the 'sponsors' component - a benefit that no other has had.

Among the state sponsors are Sri Lanka Telecom, Bank of Ceylon and the Airport and Civil Aviation Authority. When contacted, at least one of the government sponsors confirmed that Media Prima has contacted them for a sponsorship, but said there was no final decision on extending one yet.

Contrary to that statement, authoritative sources disclosed that instructions have been issued to profile the three government institutions as part sponsors.

Interestingly, when questioned, the local project representative confirmed that there may be sponsors of various criteria but refrained from giving any names. He however admitted that Wilson would profile the sponsors, individuals, as well as companies with brief descriptions being included in the publication itself.

Not a biography?

Among those who have already been approached for sponsorships are Norma Nanayakkara (Greenlanka Shipping), Sanath Ukwatte (Mt. Lavinia Hotel) and Thilanga Sumathipala (Sumathi Group), according to highly placed sources.

When pressed for details, Ali said that he cannot quote the exact expenditure involved, but demanded to know as to "who divulged" the details relating to the Presidential biography project. He further said that until the project is finalised - which means at the end of production - the cost could not be discussed.

He also said that the biography would have twin purposes - it being the official biography of President Kumaratunga compiled by a reputed biographer, and also being a public relations exercise for the country. Some 150,000 copies are to be printed and distributed worldwide with specific promotional campaigns being conducted at the most exotic destinations all over the world.

Meanwhile, when the official Biographer, Lord Wilson was contacted, he said that the compilation was not going to be a biography, but a publication aimed at promoting Sri Lanka. He said that he has undertaken similar work for other countries and had completed a similar project on behalf of SriLankan Airlines.

Conflicting reports

When asked whether he had already met the President to conduct interviews for the "biography," he answered in the negative. When queried whether there was a possibility of meeting her, he laughingly added,"I would very much hope to."

While Lord Wilson is very clear on the project component - that it is going to be a PR exercise for the tsunami hit island, Ali's version differs - that by June 29, there would be a Presidential biography ready for release.