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SLAF consults AG on vanished supplier firms

SLAF consults AG on vanished supplier firms
August 16
12:19 2019

(UTV|COLOMBO) – The Sri Lanka Air Force (SLAF) has initiated legal action against two private companies for causing damages worth Rs 16 million by supplying faulty solar powered street lamps in 2009.

The Air Force had purchased 187 solar powered street lamps at a cost of Rs 19.6 million with a 15 year warranty period from two companies named Access Solar (Pvt) Ltd and Environ Energy Lanka (Pvt) Ltd in 2009. However, 148 of those lamps and 33 batteries had faulted causing a 16 million rupees loss to the Air Force.

When the Air Force attempted to recover the damage from the supplier warranty, it was found that the two companies no more exist.

The Air Force informed the Parliamentary Committee on Public Accounts (COPA) in this regard when the Committee queried the matter. The COPA, in its report submitted to Parliament on April 4, pointed out that no action had been taken to recover the above damage from the relevant companies. The reply of the SLAF to this query was presented to Parliament on July 31.

“When taking action to recover the damage from the warranty, as the failure of solar powered street lamps and its components which were purchased for Sri Lanka Air Force in year 2009 occurred within the respective warranty period, it is revealed that the relevant companies are closed by that time. Accordingly,the Sri Lanka Air Force has taken all possible action to recover the damage but due to the failure of all such efforts, a board of investigation has been appointed to inquire the same. Referring after its recommendations to the Air Force Commander, it is recommended to take legal actions necessarily against relevant companies for recovering the damage. Further to inform, the Sri Lanka Air Force has already taken necessary action by now to prevent such damages in future.”

“Accordingly, Director Legal, Sri Lanka Air Force, has submitted all the information required to dispatch letters of demand to those two companies named Access Solar (Pvt) Ltd and Environ Energy Lanka (Pvt) Ltd to Attorney General’s Department on July 5, 2018,” the paper further stated.

The Auditor General had however emphasized that “when selecting a supplier for a technical nature purchasing, an understanding about the persistence of the company needs to be gained and for that more attention should be on the financial statements of the company”. (Courtesy: DN)

 

 

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