According to the National Audit Office, an amount of four million, eight hundred and forty six thousand four hundred and six rupees (49,846,406) which was overpaid to the supplier by the government in the importation of nano nitrogen liquid fertilizer has not been recovered by the 30th of January of this year (2023). Sri Lanka Latest News
For the import of 100,224 bottles of nano nitrogen liquid fertilizer on October 18, 2021, an amount of Rupees Twenty Five Crores, Thirty Three Lakhs, One Thousand One Hundred Twenty Six (253,301,126) was paid to the supplier at US$ 12.45 per bottle.
Later, the price of a bottle was reduced to 10 US dollars.
Accordingly, the amount paid in excess to the supplier was not recovered and the audit report also states that the amount was not accounted as receivable in the final accounts of Colombo Commercial Fertilizer Company.
Regarding this, the management of the relevant fertilizer company has stated to the audit that the Ministry of Agriculture decided to import nano nitrogen liquid fertilizer due to the urgent need of the country based on the approval of the Council of Ministers.
Accordingly, it was decided to buy a 500 ml bottle of nano nitrogen for 12,45 US dollars, and 100,224 bottles of liquid fertilizer were imported as the first stock.
For that, payments were made to the supplier using the Telegraphic Transfer method, and later on the decision of the Cabinet of Ministers, letters of credit were opened and payment for the remaining liquid fertilizers was received at US$10 each.
The fertilizer company also mentioned to the audit that although the bank was instructed to recover the excess amount paid to the supplier in the import of the remaining liquid fertilizer through the letter of credit, the bank informed that it is not possible to do so.
The company has stated to the audit that the overpaid amount is an amount to be paid to the Treasury, and no commercial transaction took place here.
At the time of this transaction, Mr. Mahindananda Aluthgamage was the Minister of Agriculture and Mr. Shashindra Rajapaksa was the Minister of State.
