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Writer's pictureThe Reporter

The Huge Scam that the Central Bank Lost to.

There has been a lot of talk about the financial fraud of over 11 billion rupees at the Treasury Bond auction these days. It is considered to be the largest financial fraud in the country. However, the country is currently experiencing a massive financial fraud which is three times bigger than the previous bond scam, which cost the country Rs. 34 billion (34,000 million). Several top government officials and businessmen are working together to make the financial fraud possible by deliberately delaying the tender procedure for the construction of the L.N.G (natural gas) power plant known as Kerawalapitiya - No. 11 project to meet the future energy needs of Sri Lanka. The tender, which had been delayed for a long time due to various reasons, was handed over by B.M.S Batagoda and G. S Vithanage to Korea's Samsung Company in an illegal manner in late 2017, and they also  planned the work and the project was awarded to the company despite the recommendations of the Technical Evaluation Committee.

    If the tender was awarded to the company, the long-term loss to the country would be over Rs. 200 billion and they would have to withdraw their plan in the face of rising voices of anti-corruption people. The problem continued until GS Vithanage resigned from the relevant tender committee, which was subsequently then decided that the tender would be awarded to the company which had been recommended by the TEC to the lowest bidder of the company. However, it is reported that B.M.S Batagoda is trying hard to hand over the construction tender to the second lowest bidder. Experts in the energy sector have estimated that the difference between the lowest bid and the second lowest bid would cost the country a loss of Rs. 34 billion. The investments needed for the particular construction by the second lowest bidder is at an amount of $125 million which is an investment higher than the first lowest bidder, and the reason to this is the commissions received by B.M.S Batagoda and others. B.M.S Batagoda is making a concerted effort to get rid of the local bidder from the energy sector, who produced the lowest bid but was completely ignored. BMS. Batagoda was once a notorious bureaucrat who was once caught up in the notorious coal scam and has even incurred the wrath of the Supreme Court. The intention of these fraudsters is to put the country in a position where it is not possible to meet future energy requirements by postponing the construction of this power plant. When the power is not met, the CEB has to make an emergency purchases from the private sector to meet the demand, and the cost per unit is very high.

    A big businessman who is supplying emergency power to the government who is now a billionaire, is carrying out this plan which is being launched as a long term project together the corrupted officer, B.M.S Batagoda. If the construction of the power plant is delayed, the Electricity Board will have to bear an additional cost of Rs. 1550 million  to purchase emergency electricity supply, which in the long run will create huge economic problems for the country. Worse yet, the Sri Lankan government has incurred a financial loss of Rs. 12.4 billion due to delays in the construction of the power plant, which is a serious financial crime that exceeds what the country lost due to the treasury bonds scam. Money earned from treasury bonds scam can be recovered through a parliamentary act. However, none of these banks or businesses in this country can invest such an amount that these corrupted people has earned from these scams. They have deposited that money in foreign banks. If this scam continues, the huge loss that our country is to incur in the future will never be reimbursed.

The Huge Scam that the Central Bank Lost to.
The Huge Scam that the Central Bank Lost to.

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