Further probe on Lanka’s Pentagon, consultancy firm’s contract suspended

The Cabinet of Ministers on Tuesday decided to further probe the multibillion rupee Defence Complex which is described as Sri Lanka’s Pentagon.

This was after a consultancy firm that dealt with the Akuregoda project was suspended for having charged Rs. 600 million which official Government Spokesperson Rajitha Senaratne said was far in excess. He told a media briefing that the move to suspend the firm’s contract followed the recommendations of a four-member committee of officials.

At Tuesday’s ministerial meeting, President Maithripala Sirisena, in a cabinet memorandum recommended that the same four-member committee be called upon to further probe two different aspects of the project.

One is whether the consultancy firm in question has been appointed as lead consultant of the project by the Cabinet of Ministers on January 25, 2011 “without following competitive bidding process.”

The second aspect is the total consultancy cost. This cost, it has been pointed out by the four member Committee in its report, are limited to 5.5 percent. Of this percentage, 1.5 percent or Rs 606.03 million has been allocated to the consultancy firm and four percent or Rs 1,556.90 million to the Central Engineering Consultancy Board (CECB).

President Sirisena told ministers that “the computation of total cost estimate should be re-done based on accepted norms and by competent persons. Consultancy fees should be determined accordingly and if any overpayments or under payments had been made, such payment should be appropriately adjusted. Furthermore, consultancy fees should be as per the Cabinet decision i.e. payment based on work-done instead on a man month basis.

The four member-committee is chaired by G.S. Withanage, Secretary to the Ministry of Foreign Employment and includes H.M. Ajith Chandra, Director, Office of National Unity and Reconciliation, S.D.H. de Silva, Director of the Ministry of Housing and Construction and P. B. S. C. Nonis, Director of the Department of Public Finance.