A Presidential Commission of Inquiry into Sri Lanka's coal transactions has learned that procurement documents for coal imports were prepared based on estimates instead of actual requirements from the Lakvijaya Coal Power Plant, according to testimony from Lanka Coal Company's audit officer.
The Presidential Commission of Inquiry investigating coal import dealings heard evidence on Tuesday that Lanka Coal Company deviated from standard procurement procedures when preparing tender documents over recent years. According to audit officer Indra Kumari, the company submitted procurement documents to the relevant ministry based on internal estimates rather than following the required process of first obtaining formal documentation from the Lakvijaya Coal Power Plant specifying its actual coal needs.
Kumari explained that the correct procedure mandates the power plant should initially provide documentation detailing the quantity of coal required before Lanka Coal Company initiates the procurement process. She emphasized that it was Lanka Coal Company's responsibility to obtain and verify such information from the power plant before launching tenders. The audit officer also noted that procurement documents were submitted to the ministry with delays and outside the prescribed procedures.
During her testimony, Kumari highlighted issues with a company called Potensia, which participated in bidding for the 2024-2025 coal import season. She stated that Potensia submitted a bid at a lower price than competing bidders in the procurement process. Additionally, Kumari disclosed that Lanka Coal Company had failed to respond adequately to requests for information needed to complete an audit report. Despite sending letters requesting documentation and issuing reminder communications, the company did not provide the necessary information, significantly hampering the audit process.
