Three leading construction companies that allegedly submitted false information to secure a lucrative contract under Section 3 of the Central Expressway Project face the risk of being blacklisted for the first time under the new procurement guidelines, which came into effect in January this year.
All three companies hold a CS2 grade—the highest classification awarded by the Construction Industry Development Authority (CIDA), the regulatory body. The alleged forged documents relate to “audited” financial statements submitted as part of their bid documents, according to sources.
The Cabinet has instructed the Secretary of the Highways Ministry to consider “appropriate procedural steps to be taken in addressing the alleged fraudulent and corrupt practices” of these contractors. It has also approved a proposal from Highways Minister Bimal Ratnayake to direct the National Procurement Commission and CIDA “to take action accordingly” regarding the contractors in question.
According to the Cabinet memorandum submitted by Minister Ratnayake, the Standing High-Level Procurement Committee has recommended action against the bidders “based on the submission of documents with their technical bids containing elements of fraud and corrupt practices” identified by the Bid Evaluation Committee.
The new procurement guidelines are designed to curb fraud and other malpractices in the bidding process. Under these rules, authorities are empowered to sanction, debar, or blacklist bidders, suppliers, contractors, and service providers who violate the guidelines or the terms and conditions of the relevant procurement documents.
In addition, action may be taken against officers of any institution subject to the procurement guidelines if they are involved in public procurement and are found to have violated the rules, including breaches of the ethics of public procurement, which are also covered under the guidelines.
One of the violations specifically outlined in the guidelines that qualifies a bidder, supplier, contractor, or service provider for sanction, debarring, or blacklisting is the “submission of eligibility and qualification requirements containing false information or falsified documents.”
A committee is expected to be appointed to probe the matter, the sources said.
