Indian company demands USD 1.88 mn from CEB over alleged culpability of engineer

By Ifham Nizam

Sterling & Wilson (Pvt) Ltd., an Indian company, has demanded USD 1.88 million from the Ceylon Electricity Board (CEB) for alleged mishap caused by a Board Mechanical Engineer on the project 1×50 MW diesel plant.

Senior engineers are in the process of taking up the matter with CEB General Manager to urge him to carry out an investigation into alleged wrongful actions said to have been committed by then CEB Project Manager, Mechanical Engineer A.P.K.

Muthunayake and his team.The Contractor has claimed from CEB by their letter ref. CEB/NS/15/12/78 dated 2020.12.15 an additional sum of USD 1,887,970.15 for additional factory visits and inspections at overseas factories which are not identified in the contract.

Original Specification of the contract approved by Standing Cabinet Appointed Procurement Committee (SCAPC) requires Mass flow metres, painting of tanks, etc., for which S&W had estimated the cost and submitted the bid.However, the Contractor claims that CEB personnel who visited their factory approved changes to original specifications while they saw no approvals that had been made by the Board’s GM or SCAPC.

Indian Company revealed and claimed Rs. 650 million additional amount from CEB due to the additional foreign tours enjoyed by the then Project Manager Eng. Muthunayake, the Secretary of Mechanical Engineers Union of CEB.

The total loss caused to CEB by the poor management of this project was more than Rs. 837 million, an official said.

“CEB management has not carried out any investigation into the alleged fiasco and only transferred Muthunayake to a different branch at Aniyakanda Workshop,” a senior engineer said.

CEB mechanical engineers union President U.K.L. Choolakeerthi, contacted for comment, said that they were not authorised to talk the media and asked us to contact Media spokesman cum AGM A I D K Navaratne, who was not immediately available for comment.