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State-owned Litro Gas leaks in its tender procedure, selection process
View(s):A tender to supply lp gas to state-owned Litro Gas Co. has run into controversy, with allegations of irregularities in the tender procedure and selection process.
Tenders to supply 190,000 Mt LPG closed last month with the tenders initially due to be opened on a Sunday. Following objections from the bidders, the tender opening was postponed for a working day.
The tender document too contained conditions which did not comply with standard procedures which discouraged some tenderers from bidding.
The supplier eventually selected had earlier been disqualified by the Technical Evaluation Committee of Litro Gas, due to insufficient technical information and compliance on vessel qualifications.
“In one of the clauses was a submission of a Letter of Credit worth US$ 1 million, which is not the norm. As per tender procedures, we submit a bid bond at the time of bidding and if awarded, we submit a Performance Bond and a Bank Guarantee,” claimed an industry source who spoke to the Sunday Times on condition of anonymity.
The vessels reportedly nominated by the supplier were allegedly not qualified and compliant to carry lp gas to Sri Lanka. Thereafter, permission had been granted to the supplier to submit a fresh technical report, thereby directly violating tender procedures.
The supplier had named an Omani shipping company which reportedly did not provide vessels to any other party other than their sister company.
Litro Gas financial controller, Muditha Hamangama declined to comment, saying the chairman Sadila Moonasinghe would make a comment. Mr. Moonasinghe said he would respond to the queries later, but thereafter did not respond to the calls from the Sunday Times.