This recommendation was given yesterday when Litro Gas Lanka Company, Litro Gas Terminal Lanka (Pvt) Company and Sri Lanka Insurance Corporation were called before the COPE Committee to implement the orders given by the previous COPE Committee and to discuss the current performance.
It was revealed here that tenders were called for 2,80,000 mt of gas as the season tender for gas purchase ended last February and accordingly three gas suppliers have submitted bids. Here, Siam Gas Company A.D. 96 each and the minimum price has been submitted and accordingly the Cabinet has approved to award the tender.
But due to the economic crisis, Litro officials also stated that since the Sri Lankan banks were not able to submit a standby letter of credit (SBLC) to Litro, they were unable to obtain gas through the Siam company. Officials of the Litro company said that despite discussions with the concerned company, the company expressed its unwillingness to supply gas without a pending letter of credit according to the conditions presented during the tender.
Due to this delay, as a temporary solution from Siam Company itself, the gross amount of gas required for two weeks is M.T. 15,000 as emergency purchases, but they can supply Mt. It was revealed that it also failed as it was informed that there were only 6600. But for the season tender, USD The Omani company, which had sent prices for 129 mt of gas per month. 25000 MT each. The Litro Company also said that they agreed to provide one lakh for 4 months.
Accordingly, after notifying the above facts to the Cabinet, the Term Tender given to Siam Gas Company was canceled and the Omani Company received M.T. of gas. It was also revealed that Cabinet approval was received for the season tender for the purchase of 1 lakh. For that, the World Bank's USD 70 million loan support and Litro Company's A.D. 20 million USD. Mr. Muditha Peiris, President of Three Litro, said that 90 million will be spent.
Although the need for gas is an urgent situation, buying from the Omani company at a higher price instead of the lowest bidder, Siam, may set a bad precedent in the future. The Chairman of the Coop informed the Auditor General's Department to investigate and report whether the amount of 70 million was used effectively.
Under the Indian credit facility allocated for gas purchase, USD The committee also focused on the inability to buy gas with 160 million. Here, the Litro chairman said that according to the conditions of the Indian government, it is a problem to buy gas that is not produced in the country. It was also revealed that several rounds of discussions have been held in this regard. The COPE Chairman recommended to the Secretary of the Ministry of Finance to look into this immediately and report within two weeks.
Attention was also drawn to the fact that the number of currently appointed members of Litro's board of directors is only 4. It was revealed that according to the legal status, there should be 5 members. Moreover, since the Ministry of Finance appoints the members of the Board of Directors, the Coop Committee pointed out the need to appoint the Board of Directors to consist of representatives of the parent company, and the Coop Chairman recommended the Secretary of the Ministry of Finance to take necessary measures.
There was a discussion about holding both the positions of the company's chairman and chief executive officer by the same person. Even if the position of the chairman of the company changes, the existence of a permanent position of chief executive officer is essential for the good survival of the company, so the committee emphasized the importance of working for it promptly. Here, Litro Chairman said that the Board of Directors has already taken a decision to deal with this crisis as soon as it is resolved. The committee recommended that the necessary steps be taken and reported immediately.
Attention was also paid to the ability of Litro Company to receive financial support from the Sri Lanka Insurance Corporation, which is the mother company of Litro Company.
The Chairman of the Insurance Corporation, Mr. Vijitha Herath, said that the company was able to purchase gas recently due to the deposit of nearly 5 billion rupees in a state bank.
Deputy Secretary of Treasury Saman Fernando representing the Secretary of the Ministry of Finance, Vijitha Herath, Chairman of Litro, former Chairman of Insurance Corporation, Muditha Peiris, Chairman of Litro Company were also present at the event and Mr. Teshara Jayawardena, former Chairman of Litro Company, joined the event through the Internet.
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