Thread by @nimilamalee

While we are all raging against past corruption and, hopefully, blaming ourselves over why we did nothing about it, why don't you also read about a real-time case that's happening as we watch? Central Expressway Project Section III or #CEPIII #corruption #SriLanka

A contract to award part of #CEPIII's third section to a local consortium at a price higher by US$ 822mn (Rs 166.4bn) than its competing bid is to be pushed through Cabinet in the coming weeks. This means it's Rs 166.4 BILLION rupees higher than the competiting bid.

This has upset this second bidder, China's Metallurgical Corporation (MCC) which claims its bid was priced at US$ 1.05bn (Rs 212bn) while the controversial offer, which has Highways Minister Johnston Fernando's backing, is US$ 1.87bn (Rs 378bn).

Have no illusions about MCC. When Mahinda Rajapaksa was president, they pushed through costly road construction projects on single bids. We wrote against "unsolicited proposals", warning that if there were no competing offers, there was no way to measure if they were the best.

But that the Mahinda Rajapaksa dispensation's main development strategy was to do away with competitive bidding and accept unsolicited proposals or single offers that could not be compared for pricing.

What is happening with #CEPIII is described in documents spilling into the public domain, including cabinet papers. The competing bid is from a recently formed local consortium led by Access Engineering Ltd which will borrow from local banks for the project.

There had been only two bids for this section of #CEPIII of which MCC’s was the only foreign offer. MCC claims their financial bid wasn't even opened. Nothing in #SriLanka's tender process is sacrosanct. Even when there are competing offers, bid-rigging is WILD.

So when you are looking at real-time corruption, understand that every cent comes from what is our depleted coffers and ask WHY. Ask the correct people and make them accountable.

The CEP is a goldmine that even the last government tried to exploit. Here is just a basic snapshot of what's going on now via @TimesOnlineLK

sundaytimes.lk/220306/news/pu…

We have highlighted these issues repeatedly in the past. But it's only when the impact of corruption--the inflated pricing--hits us that we start complaining. Take this 2015 report based on what the National Audit Office found:
sundaytimes.lk/151227/news/me…

What does that story say? Irregularities, questionable deals and colossal waste in major road projects; national procurement guidelines flouted in awarding contracts; contractors paid billions more than the usual cost; RDA funds used for activities extraneous to the....

...rehabilitation of roads; no cabinet or treasury approval obtained; over Rs. 400 million passed for road maintenance, but no work carried out; and questions over payments to Maga Neguma Company.

Be aware of these things when you ask why we are in this situation now.

Interestingly look at (h) of @an_cabraal's proposals of this week: "Postponing non-essential and non-urgent capital projects". #CEPIII fits right into this. Politically, this could mean there's a split; one faction supports MCC and the other supports the local bid.

While we are all distracted by fuel and gas and electricity and all the other problems this government isn't solving, there are underhand deals going on to screw us over even more.

Another interesting point: the local bid will borrow from local banks. Massive amounts. Can they afford it? Can someone who knows more about this answer the question? Separately, if it's the Chinese, it means a foreign loan. Can someone explain if that is acceptable?