CONTROVERSIAL NUMBER PLATE TENDER TO INCUR OVER RS.516MN LOSS TO GOVT.

The true financial loss to the state could escalate to nearly Rs. 1 billion over the contract period once the backlog for number plates is cleared

- By NISHEL FERNANDO

A multi-billion rupee government tender to supply vehicle number plates is mired in controversy after the two lowest bidders were disqualified on technical grounds, paving the way for the contract to be awarded to the highest bidder at a potential loss of over Rs. 500 million to the state.

The move comes as a crisis brews on the roads, with industry sources estimating that over 200,000 vehicles are currently operating without government-issued number plates, creating a significant backlog and potential security concerns.

The procurement process, which has been fraught with delays and changes to tender conditions, is now stalled after the two rejected companies, including the lowest bidder Access International (Pvt) Ltd and the second-lowest bidder Metropolitan Technologies (Pvt) Ltd, filed appeals with the Procurement Appeal Board (PAB).

Speaking to Mirror Business, Commissioner General for the Department of Motor Traffic (DMT), Kamal Amarasinghe, confirmed the appeals. "Two companies have appealed the decision to award the contract," he stated.