The Ministry of Energy on Friday (5) rejected allegations that a recently unloaded coal shipment had failed to meet required quality standards.
Responding to claims that a consignment of nearly 60,000 MT contained excessive ash, Ministry of Energy Secretary G.M.R.D. Aponsu maintained that the coal remained within acceptable limits and that contractual safeguards were in place to penalise the supplier if any quality parameters were breached.
The Government has been using the terminology of ‘acceptable limits’ of deviation from the expected value when responding to the substandard coal imports scandal, which saw the former Energy Minister and Secretary to the Ministry step down, pending the outcome of an inquiry.
Defending the ongoing emergency coal unloading operations at the Lakvijaya Power Plant in Norochcholai, Aponsu claimed there was no significant issue with the shipment’s ash content.
“There is no significant issue with the ash content because the coal is within the acceptable margin. Regarding the shipment that arrived on 28 May, once we receive the load port report and it is accepted, we proceed with unloading. If the ash content is higher than the required level, the supplier is penalised. That is the formula,” Aponsu stressed.
The ministry’s response follows a warning issued by the Free Lawyers organisation regarding the vessel MV Josco Yongzhou, which arrived at the Puttalam anchorage on 28 May carrying 59,766 MT of coal supplied by Taranjot Resources.
The organisation alleged that the consignment was being unloaded despite an official load port report issued by Bureau Veritas Solutions South Africa on 30 April indicating an ash content of 16.8%. According to the group, this exceeded the 16% maximum reject threshold stipulated in the Lanka Coal Company (LCC) tender conditions.
Addressing the report cited by the legal group, Aponsu said that the Bureau Veritas report was not the primary enforcement mechanism under the procurement contract.
“The Bureau Veritas report is an additional report we obtain, but it holds no legal validity for enforcement. It is strictly for checking purposes. Sometimes the load port report is favourable, but the discharge port report is not. That is why we initiated another check. However, it does not provide the legal basis to take action.
“We operate strictly according to the agreement. Under that agreement, if the ash content is higher than the required level, the supplier is penalised. That is the equation,” Aponsu said.
He acknowledged the findings contained in the supplementary report but reiterated that any formal action would be based solely on the contractual terms agreed upon with the supplier.
“The required level is 16%, and I am aware that the recent figure was slightly above 16%. However, that figure is based on the Bureau Veritas report, which is additional information obtained for verification purposes. It is not part of the formal agreement,” he noted.
Despite these assurances, the Free Lawyers organisation has questioned the legal and financial implications of accepting the shipment. The organisation argued that there was no legal basis for the Government to accept or pay for a consignment that failed to meet mandatory quality requirements.
“The coal does not qualify for purchase under the tender conditions. There is no legal basis for the LCC or the Government of Sri Lanka to accept or pay for this shipment,” the organisation said.
Attorneys-at-Law Athula de Silva and Piyal Darshana Guruge further warned that authorising payment for allegedly substandard coal could expose officials to legal liability. They argued that such action could amount to a breach of financial regulations and administrative procedures, potentially causing a loss to the State under the Anti-Corruption Act No.9 of 2023.
The organisation has called for an independent investigation by the Auditor General, the Commission to Investigate Allegations of Bribery or Corruption (CIABOC), and other relevant technical authorities.
The controversy comes as the Government races to complete an emergency procurement of 300,000 MT of coal before rough seas associated with the southwest monsoon disrupt unloading operations.
Maintaining uninterrupted coal supplies is considered critical to preventing power generation shortfalls in the coming months.
Providing an update on the remaining emergency deliveries, Aponsu said unloading operations were continuing at the anchorage.
“Only three ships are there now. These are the last three vessels under the Taranjot tender. They are currently in our waters and waiting to be unloaded,” Aponsu said.