Sri Lanka Telecom (SLT) is opening an investigation into its own tender for importing equipment to launch Internet Protocol Television (IPTV) in the island which has resulted in a loss of Rs. 360 million to the institution.
The SLT will conduct an internal re-audit to investigate the deal and take action against officers responsible for causing a massive financial loss for the institution. The newly appointed board of directors has taken this decision considering the submissions made by the SLT trade unions, officials said.
Earlier an agreement was signed with Just In Time Holdings (Pvt) Ltd (JIT) to import and install IPTV equipment at a cost of US $7.7 million. According to Clause 3 of the contract JIT was responsible for clearing the goods from Sri Lanka Customs.
SLT officials said that the Customs seized the equipment due to discrepancies in invoices and other related documents.
The SLT’s finance and Administration Division had arranged a cash/ bank guarantee of Rs.361 million for the clearance of goods.
It also paid demurrage (charges for delaying the clearance from the Customs). The then SLT board had directed the Chief Internal Auditor to conduct a comprehensive audit into the whole IPTV deal.
According to his report submitted on 21st March 2008, four SLT officers have been charged with misconduct and disciplinary action was taken against them.
The former board of directors of the SLT at its meeting on September 17, 2008 directed the management to settle the case with Customs by paying demurrage. The board also decided not to pay the balance amount of US$4.4 million to JIT. |
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