RTI exposes irregularities in SL water contracts involving Chinese SOES

PMAC calls for accountability and urgent probe into unsolicited bids and inflated costs

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THE People's Movement Against Corruption (PMAC) yesterday called for an urgent and comprehensive Government investigation into a pattern of large-scale corruption and irregularities concerning the awarding of millions of dollars in contracts to Chinese State-owned companies for projects under the National Water Supply and Drainage Board (NWSDB).

It said that revelations from a Right to Information (RTI) application filed by the PMAC have exposed a web of questionable practices and irregularities - including unsolicited bids, inflated costs, and significant financial disparities, primarily involving Chinese State-owned entities (SOEs).

The PMAC statement is as follows: Documents disclosed following the RTI Application by PMAC revealed that from 2013 to date, China Machinery Engineering Corporation (CMEC), China Harbour Engineering Company Ltd. and China Geo Engineering Company was contracted for projects that were financed by the Sri Lankan Government, the Asian Development Bank, Agency for French Development (AFD) and China Development Bank. While some of these projects are currently ongoing, it has been revealed that several contracts were awarded at significantly inflated prices compared to initial estimates.

Further examination of the disclosed documents revealed a questionable joint venture arrangement for two major contracts with a locally registered entity, raising questions about the necessity of a local intermediary.