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Nano fertiliser controversy: CID probe continues

27 Nov 2021

  • JVP awaits CID’s interim report
  • Bank and Ministry officials summoned by CID
  • Nano fertiliser price discrepancy is due to heavy subsidies: IFFCL
  • If attempts are made to change agreement, we can cancel it: UFTL Chair
  • Shasheendra Rajapaksa distances himself from controversy 
By Asiri Fernando The controversy over the alleged irregularities involving the importation of nano nitrogen liquid fertiliser from the Indian Farmers Fertiliser Co-operative Ltd. (IFFCL), through their local agent, continues, as a probe launched by the Criminal Investigation Department (CID) into the matter progresses. Several employees of the People’s Bank and State Ministry of Agriculture Secretary M.N. Ranasinghe were questioned by the CID regarding the controversy last week, The Sunday Morning learnt. Detectives had also summoned Colombo Commercial Fertilisers Ltd. Chairman Methsiri Wijegunawardena to record a statement on the matter. However, when reached, Police Media Spokesman SSP Nihal Thalduwa told The Sunday Morning that he could not confirm if Wijegunawardena had given a statement, pointing out that there were two ongoing investigations into the issue. He would not comment on when an interim report will be given. The Janatha Vimukthi Peramuna (JVP), which first revealed the alleged irregularities with the importation, continued to raise the matter in Parliament last week. Responding to a query, JVP Leader Anura Kumara Dissanayake said that although the party had requested an initial report on the issue from the Government, none was tabled as of last Friday (26). Fellow JVP MP Vijitha Herath had earlier requested an initial report to be submitted to Parliament on the matter. The CID was investigating allegations that irregularities had occurred with regard to accounts that were set up at the state-owned People’s Bank last month, and affiliated to the United Farmers Trust Ltd. (UFTL), the local agent for IFFCL. Last month, MP Herath informed Parliament about details of a bank account opened the previous week and used to transfer funds to purchase the nano fertiliser stock from India. He alleged that $ 1.2 million was transferred to the private bank account of two individuals of the UFTL for the acquisition of nano fertiliser from India and linked the Secretary to the President to the controversy. Following the Opposition MP’s allegation and reports in the press, Secretary to the President P.B. Jayasundera strongly denied the allegations against him, calling on the Inspector General of Police (IGP) to launch an inquiry into the same. Minister of Agriculture Mahindananda Aluthgamage also lodged a complaint with the Police seeking an investigation into the allegations linking him to the irregularities pointed out by Opposition MPs. Tussle over prices Officials from the IFFCL replied to allegations regarding a strong price discrepancy between the liquid nano fertiliser in India and the price at which Sri Lanka imports and distributes it.  Speaking at a press conference, Dr. Anil Yadev, a subject matter expert from the IFFCL, pointed out that the price of a 500 ml bottle of nano liquid fertiliser in India cost only INR 240 ($ 3.23) due to it being heavily subsidised by the Indian Government. The product had been imported at LKR 2,520 ($ 12.45) per 500 ml bottle. Earlier this month, Minister Aluthgamage told the press that he had intervened to reduce the price of a 500 ml bottle to $ 10, and was seeking a further reduction. Aluthgamage explained that the fertiliser had been sold to Sri Lanka with a large profit margin, adding that the Ministry was trying to get the price reduced through diplomatic channels. However, the Agriculture Minister’s claims were rejected by UFTL Chairman Mohan Perera at a press conference, who said that the agreement cannot be renegotiated diplomatically, warning that the company was ready to consider cancelling the contract if such action was taken.  Responding to criticism on pricing by Opposition MP Patali Champika Ranawaka, Perera challenged him to import the volume agreed upon for a lower price. Perera opined that the Agriculture Minister’s statements were made under pressure and should not be taken seriously.  The UFTL Chairman also claimed that India will make significant profits from this agreement and venture into the Sri Lankan fertiliser market. Perera also declined a request from journalists to disclose the rates at which the IFFCL sold the same nano fertiliser to other countries. Shifting accountability  The confusion and discrepancies surrounding the importation of organic fertiliser options in place of the banned chemical fertiliser, may be an indication that the Government had not properly planned the policy change as well as its impact on the agriculture sector.   The blame game regarding the decision to import the liquid fertiliser following the sudden policy change on agriculture was spreading, with one minister in charge of the subject claiming he did not play a role in making the decision.  Responding to Opposition allegations in Parliament, State Minister for Regulating the Supply of Organic Fertiliser Shasheendra Rajapaksa distanced himself from the nano fertiliser scandal and the ongoing controversy surrounding the rejected Chinese organic fertiliser shipment supplied by Qingdao Seawin Biotech Ltd. “I was not involved, nor did I influence both these imports; they were carried out following strict government procurement procedures and overseen by the Director General of Agriculture and had the approval of the Ministry and the Cabinet,” Minister Rajapaksa said, adding that he is planning to take legal action against Opposition parliamentarians who have made false allegations against him.  He urged those who allege irregularities to submit the evidence and information they have on the issue to the investigators. Several attempts to contact the Minister and State Minister of Agriculture and the UFTL on the issue failed.

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