The Chairman of Lanka Coal Company (Pvt) Ltd, Maithri Gunaratne and the board have been removed by with immediate effect by Power and Renewable Energy Minister Ranjith Siyambalapitiya.
The Board of Directors were removed after considering the recommendations provided by the Auditor General in a report submitted to the Parliamentary Sectoral Oversight Committee on Energy pertaining to the purchases by the Lanka Coal Company from 2009 to 2016.
Accordingly, the Ministry of Power and Renewable Energy said Additional Secretary to the Ministry Meryl Gunathilake has been appointed as the Acting Chairman of the Lanka Coal Company.
In a letter dated Jan. 15, 2017, Batagoda has advised Power and Renewable Energy Minister Ranjith Siyambapalitiya to remove the board of directors. Batagoda also called for an emergency meeting of the shareholders of the company to discuss the situation and to take remedial measures.Anti Corruption Front noted that a few days after an Auditors General report revealed that Sri Lanka lost Rs 4145.43 million in 2016 due to an agreement signed after obtaining Cabinet approval through misleading Ministers, to import coal to the country, the Ministry of Power had entered into a similar agreement.
With this agreement, the state will have to pay US $ 10 per ton above the real market price. The first ship carrying coal will arrive with a shipment between 40 000 – 60 000 tons. The Letters of credit have already opened to facilitate this deal,” according Anti-Corruption Front.
Batagoda found fault with the board of directors of LCC for not taking remedial measures and tangible action to avert losses. He suggested that in accordance with the recommendations made by the AG, it would be necessary to ascertain whether LCC was required to function. The top Power Ministry official said that LCC fate should be examined against the backdrop of its failure to take remedial measures as recommended by the AG.
Anti Corruption Front (ACF) said that the Secretary to the Ministry of Power and Renewable Energy BMS Batagoda had written to President Maithripala Sirisena yesterday demanding the resignation of ‎Maithri Gunaratne who had continuously opposed attempts to sign an unfavorable deal to import coal to Sri Lanka.
Courtesy The Island, Colombo Gazette