Lanka will be compelled to pay US$ 8.3 Mn even without using Chinese Fertilizer – JVP

Former JVP Kalutara District MP Dr. Nalinda Jayatissa said Sri Lanka will be compelled to pay 8.3 million US Dollars for the ship transporting rejected Chinese Fertilizer.

For months, the Hippo Spirit has been moving around Sri Lankan waters, awaiting instructions to unload Chinese Organic Fertilizer or to return back to China.

Dr. Jayatissa said that even if Sri Lanka accepts the fertilizer ship or not, the country would be compelled to pay 6.75 million US Dollars as well as another 1.6 million US Dollars to the shipping company for delay charges.

“Sri Lanka will be compelled to pay 8.3 million US Dollars without even using Chinese Organic Fertilizer,” he told the media on Thursday (9).

He said the officials who influenced the Letters of Credit to be opened, must be held accountable for this payment.

The Hippo Spirit vessel, which is carrying rejected Chinese Organic Fertilizer is now located some 12.4 nautical miles away from Beruwala, according to marine traffic websites.

The Hippo Spirit is carrying tonnes of rejected Chinese Fertilizer from Qingdao Seawin Biotech Group Co., Ltd to Sri Lanka.

Earlier, it is reported that the Hippo Spirit, the ship carrying Chinese Organic Fertilizer, did not return to China after the first samples were rejected by Sri Lanka.

Instead, the Hippo Spirit had sailed to Singapore and altered its course back to Sri Lanka, without returning to China.

On Sept 22, the Hippo Spirit ship carrying 20,000 metric tonnes of organic fertilizer left for Colombo from China’s Qingdao Port.

But the ship was diverted to Singapore after harmful bacteria was detected in the samples of this fertilizer shipment.

The Hippo Spirit ship that didn’t return to China had left Singapore declaring it would be heading to the Colombo Port.

But on Oct 14 the automatic identification system (AIS) used to track the ship had been deactivated at the Malakka Strait.

Vessel trackers showed the last position of the ship as the Malakka Strait before it went out of range.

Data available online showed the Hippo Spirit ship in Hambantota on the Oct 24 under the name Seiyo Explorer.

The Hippo Spirit and the Seiyo Explorer both share the same IMO number, and therefore it can be confirmed the Hippo Spirit is the Seioy Explorer.

The IMO Ship Identification Number is a unique seven-digit number that remains unchanged through a vessel’s lifetime and is linked to its hull, regardless of any changes of names, flags, or owners.

On Sept 17, Agriculture Minister of Agriculture Mahindananda Aluthgamage confirmed that a microorganism identified as ‘Erwinia’ was discovered in samples brought down ‘unofficially’ to Sri Lanka and tested.

The supplier was the same, Qingdao Seawin Biotech Group Co., Ltd.

On Sept 29, Agriculture Minister Aluthgamage announced the suspension of organic fertilizer imports from China.

This was after Director-General of Agriculture Dr. Ajantha De Silva on Sept 28 confirmed that Harmful Bacteria was detected in a fresh sample (2nd batch) of Chinese Organic Fertilizer.

The Ceylon Fertilizer Company Limited had got a court order to block payment to Qingdao Seawin Biotech over the shipment of organic fertilizer which was contaminated.

The Colombo Commercial High Court had issued the order on Oct 22, against the Qingdao Seawin Biotech, its local agent, and the People’s Bank.

The People’s Bank of Sri Lanka was then blacklisted by the Economic and Commercial Office of the Chinese Embassy in Sri Lanka for failing to make the payment according to the Letter of Credit and the contracts between the two parties.

However, People’s Bank said that is it bound by an enjoining order issued by the Commercial High Courts of Sri Lanka with regard to the trade transaction in question, which precludes the bank from processing the payment.

People’s Bank also said that the temporary delay in processing the said payment pertaining to the LC is solely due to the bank’s obligation to be bound by the legal directions of the country, as a responsible corporate citizen.

On Nov 7, Qingdao Seawin Biotech Group Co., Ltd., the Chinese Organic Fertilizer Manufacturer sent a Letter of Demand to the National Plant Quarantine Service.

The Letter of Demand notes that Qingdao Seawin Biotech Group Co., Ltd., has suffered significant loss and damage in a sum of US$ 8 Million and continues to suffer further loss and damage due to loss of reputation and goodwill as well as existing and potential business, due to the negligent conduct of the National Plant Quarantine Service.

The LOD noted that the NPQS make a payment of US$ 8 Million within three days from the date hereof for the loss and damage caused to Qingdao Seawin Biotech Group Co., Ltd.