It is ironic that the JVP-NPP government is now defending tainted ministers and downplaying corruption in the Parliament it came to power promising to clean up. A few weeks ago, it vehemently denied the allegation that more than a dozen coal shipments obtained from a new supplier for the Norochcholai power plant were substandard. Having realised the futility of defending the indefensible, it chose to eat its words. However, it kept on claiming that the low-quality coal had not affected power generation. Now, it has had to admit that the low-grade coal imports have led to a huge drop in electricity generation at the Norochcholai power plant. However, it claims that there have been no irregularities in the coal procurement process! It has thus craftily conceded some points to defend its main argument that the integrity of its members is above reproach.
President Anura Kumara Dissanayake yesterday admitted in Parliament that low-quality coal had adversely impacted electricity generation. Assuring that the additional costs would not be passed on to the public, he claimed that the price of the first shipment of coal had effectively dropped from USD 98 per tonne to around USD 68 per tonne after penalties were imposed on the supplier. This cannot be cited in extenuation of the offences of supplying and procuring low-quality coal. The quality of coal was so low that all coal stocks should have been rejected in keeping with the tender guidelines. Instead, the government allowed the errant supplier to dump dirty coal here after paying penalties! Even if the penalties have led to a coal price reduction, as the President has claimed, more than 1.2 million litres of diesel have to be burnt daily to meet the electricity generation shortfall caused by the use of low-quality coal at Norochcholai, according to Convener of the United Trade Union Force, Ananda Palitha, a former Ceylon Petroleum Corporation worker.
Although President Dissanayake has said the additional costs arising from low-quality coal will be recovered from the supplier and they would not be passed on to electricity consumers, electricity tariffs have already been increased, and it is feared that another power price hike is in the pipeline. Diesel stocks meant for transport and agricultural purposes are being diverted for power generation. The Opposition yesterday claimed that unofficial power shedding was already on because it was not feasible to burn diesel to produce power to meet the Norochcholai generation shortfall. Power and energy experts have warned that official power cuts will be imposed after the upcoming traditional New Year.
It can also be argued that the government has raised colossal amounts of funds at the expense of the public to absorb losses caused by the coal scam. It has resorted to price gouging. It is accused of having jacked up the prices of fuel stocks procured before the eruption of the Iran war. The Opposition says the government has increased the price of old LGP stocks. The people are without any defence when their government orders them to stand and deliver.
While addressing Parliament, President Dissanayake also sought to defend his friend, Energy Minister Kumara Jayakody the Opposition is all out to oust over the fraudulent coal procurement. A no-faith motion against Jayakody is scheduled to be taken up in Parliament on 10 April. The President laid the blame for the low-quality coal imports solely at the doorstop of the supplier. True, that company must be held accountable for violating the tender guidelines and fined. But the government cannot absolve itself of the blame for the coal scam. It postponed the commencement of the bidding process and changed the tender criteria in favour of the errant company, as the Opposition has revealed in Parliament, holding Minister Jayakody accountable for the corrupt coal deal.
A future government is bound to have the coal scam probed thoroughly, and the JVP/NPP big guns involved in it will have to face legal action when they lose their hold on power. They will have a lot to answer for. Former ministers have been imprisoned for misusing fuel allowances.
