Despite recommendations from the National Audit Office (NAO), action is yet to be taken regarding the allegedly controversial nano-fertiliser transaction with an Indian company.
A special report issued under the National Audit Act highlights concerns regarding the high-cost importation of nano nitrogen liquid fertiliser in Sri Lanka.
The import, facilitated by United Farmers Trust Ltd. (UFT) from Indian Farmers Fertiliser Cooperative Ltd., had incurred a substantial expense of Rs. 711,863,096 for 306,454 bottles.
Criticism has arisen regarding supplier selection, the urgency of fertiliser needs, and transactions of key entities.
The NAO has highlighted the Government’s failure to directly import fertiliser from established Government entities such as Colombo Commercial Fertilizers Ltd. and Lanka Fertilizer Ltd.
This oversight had resulted in missed opportunities to procure liquid fertiliser at a significantly lower cost of $ 5 per 500 ml bottle. Instead, the involvement of UFT as a mediator led to inflated costs, with payments reaching $ 12.45 per bottle in the initial import and $ 10 per bottle in subsequent imports.
The audit has recommended measures to recover overpayments totalling Rs. 49,846,406 made for the first stock of nano-fertilisers.
Responsible parties such as the Ministry of Agriculture, Procurement Committee, and Technical Evaluation Committee have been urged to take action to recover these funds from the relevant company or individuals who approved payments without proper evaluation.
Additionally, the NAO has suggested the recovery of Rs. 994,745 not utilised from the fee of Letters of Credit (LC), holding irresponsible parties accountable.
The NAO has emphasised on the need for agreements to be scrutinised for unfavourable terms that could lead to unnecessary costs for the Government.
Recommendations include seeking legal advice to avoid such situations and refraining from making purchases without formal agreements with suppliers.
Additionally, the importance of obtaining performance bonds as per procurement guidelines has been stressed, with calls for disciplinary action against officers who failed to do so.
In light of the potential for unnecessary costs incurred through involvement of private sector intermediaries, the NAO has recommended exploring avenues to import fertiliser directly through State-owned companies or via bilateral agreements with other countries, to minimise costs and ensure purchases align with identified requirements.
When contacted by The Sunday Morning, Agriculture Minister Mahinda Amaraweera said there were two ongoing investigations and that there had been no update currently regarding the incident.
“The Criminal Investigation Department and Bribery Commission are currently investigating the matter,” he added.
Source: the morning
