CIABOC probes Melwa Group & RS Steel bigwigs over scrap metal

An investigation has been initiated into the heads of Melwa Group and RS Steel over allegations that they had attempted to procure around 6,000 MT of scrap metal, including retired train carriages, from Sri Lanka Railways (SLR) while bypassing proper Tender procedures.

The probe was launched based on a complaint lodged with the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) by a senior official from a state institution.

Noting that the procurement and evaluation committees responsible for selling the scrap metal failed to act on incomplete bids, the complaint has also pointed out that companies that had submitted bids which could put SLR at a disadvantage, were allowed to submit corrected documents later.

The complaint also alleges that senior SLR officials and procurement officers were involved in this irregularity.The Tender process was publicly announced in July, with bids opening on July 23 and 11 companies participating.

However, it was observed that 02 companies had presented the bid in a manner which would result in their rejection from the Tender process.This, officials say, denied other bidders a fair opportunity.

The SLR Trade Unions say that government procurement guidelines state that once a Tender is opened, the procurement committee cannot correct deficiencies in submitted documents, and that it is mandatory for officials to do a pre-qualification assessment as this Tender exceeds Rs.01 billion

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