LECO controversy: Govt. cancels Rs 80 mn tender for Mercedes-Benz

A controversial vehicle order placed for the Lanka Electricity Company (LECO) had been scrapped and was under investigation, Power and Energy Minister Kumara Jayakody told Parliament yesterday.

The matter surfaced after Opposition MP Ravi Karunanayake alleged that a Mercedes-Benz worth around Rs. 80 million had been procured. Raising the issue in the House, he claimed that although a grey vehicle priced at Rs. 70 million had been available in the showroom, officials had opted for a black model costing Rs. 80 million instead.

Alleging that 10 cars had been procured for Rs. 200 million, MP Karunanayake questioned the recent much hyped government claims of reduced vehicle expenditure.

Responding, Minister Jayakody said the order had been placed by LECO officials

without the knowledge of then-Chairman Janaka Aluthge, who was overseas at the time. He stressed that the decision was taken at company level and should not be attributed to the former head.

According to the Minister, Rs. 622 million had initially been earmarked for a fleet of 17 vehicles including seven cars and ten double cabs but the allocation had been cut to Rs. 466 million. He added that the Chairman’s BMW was plagued by mechanical issues, costing Rs. 2–3 million in repairs.

Jayakody said instructions had now been issued to cancel the disputed order, while a formal inquiry was underway to determine how it had been approved.

“It is unfair to link the former Chairman to this transaction,” he told Parliament. “The company acted without his knowledge, and we are investigating the circumstances under which the order was placed.”

By Saman Indrajith

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