Peliyagoda fish market ice plant deal opens can of worms
The Fisheries Ministry has initiated a comprehensive investigation into the Peliyagoda fish market ice plant tender awarded to a private firm over its alleged involvement in financial misdeeds depriving millions of rupees for the government.
The private firm has violated the tender conditions by not adhering to the monthly payment for the 25-metric tonne ice plant and a cold storage at the complex taken over by them on a 10-year lease agreement.
The tender bid manipulation of the private firm with the connivance of a senior official of the ministry has incurred a loss of Rs. 30 million for the state as a result of paying only Rs. 200,000 per month instead of Rs. 835,000, ministry sources said.
The relevant private firm has won the contract to supply ice to fish traders making use of the ice plant and a cold storage at the complex for 10 years during the period of February 2019 to January 2029.
According to the tender bid document, it has to pay a monthly instalment of Rs.835,000 as the rental of the ice plant and cold storage. However the private firm in a letter to a high official of the ministry on 10-09-2019 has informed that it cannot make the tender bid payment due to high maintenance cost of the ice plant and less revenues from the supply of ice.
It has requested the ministry to allow them to pay Rs.200.000 for five years till they make sizable income from the supply of ice to fish mongers.
Further it has proposed that if the company is able to sell 25 mt of ice cubes per month after some time then they will pay Rs. 635,000 subject to a 10 year period and if this quantity is down to 10 mt they will reduce the monthly payment to Rs. 400,000.
Considering these proposals permission has been given to this firm to continue the supply of ice and maintain the plant for five years following the intervention of a high official, relevant documents showed.
The granting of permission on a letter of assurance given by the private company is a violation of tender guidelines and conditions of the contract, a senior ministry official.
He added that the whole episode has been kept under lock and key due to official involvement in this financial misappropriation.
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