• Point to financial irregularities in Indian aid rice distribution 

The United Rice Producers’ Association (URPA) has requested President Ranil Wickremesinghe to initiate legal action against officials involved in alleged financial irregularities in the distribution of humanitarian aid including rice given to Sri Lanka by the Government of India through the Food Commissioner’s Department.

Speaking to The Morning, URPA President Kusumitha Mudith Perera said that the Indian Government had donated 40,000 metric tonnes (MT) of rice, 450 MT of milk powder, and 4.6 MT of medicines to the country as humanitarian aid in June 2022. He mentioned that the Government had entrusted the work pertaining to the clearance, loading, and distribution of the related commodities to the said department and that a tender had been called for that purpose. 

“After the relevant tenders were called, the transport contract was given to two rice mill owners who were not registered transport service providers. This was done when the department had the ability to transport this rice using vehicles belonging to State institutions. The selected suppliers have no experience in transporting large bulks of commodities. Also, they are presidents of two co-operative societies who have defaulted on the loan repayments given by the department to purchase rice,” he said. 

Perera also said that the related suppliers had charged double the fee that should have been charged for the transportation of rice in Sri Lanka. While the then Food Commissioner and the Chief Accountant of the Department were well aware of the transport charges in the market, he claimed that they had committed a huge financial irregularity by hiding the information and paying a very high fee to the two relevant suppliers.

“All these goods were given as aid by India due to the difficulties faced by the people. These officials have made money by turning the distribution of those goods into a business. As a result, there has been a financial irregularity of nearly Rs. 200 million. We have, therefore, requested President Ranil Wickremesinghe to immediately direct the relevant authorities to investigate this and initiate legal action against the officials concerned,” he added.

The Morning recently reported that although the stock of 40,000 MT of rice given to Sri Lanka by the Government of Tamil Nadu as humanitarian aid could have been transported to the relevant districts at a price of about Rs. 6 per kilogram, the department had paid a price of about Rs. 12 per kilogram to transport the said stock, which has resulted in the misappropriation of about Rs. 200 million.

When contacted by The Morning, the Chief Accountant of the Department, E.M.N.R. Bandara claimed that the rice has been transported at the relevant rates applicable at that time, following the prescribed tender procedure. He said that the transport contract was awarded to the two suppliers who submitted the lowest rates in the call for tenders.