SCAM EXPOSED: Politicos pressure Water Board to buy bad steel

By Jayashika Padmasiri

A staggering Rs 200 million would have gone down the pipes and into the water, but the potential waste was nicked at the last moment ---- when the Sri Lankan National Water Supply and Drainage Board (NWSDB), about to pay Rs 200 million to contractors of the Kelaniya Right Bank Water Treatment Plant Project, was stopped in its tracks, when it was identified that the steel to be used for construction was substandard.
Now, the contractor is trying to use political pressure and go ahead with using the substandard steel for the construction.
It is reliably learnt that although the NWSDB did not face any financial loss, certificates were forged bearing the logo of the National Building Research Organization (NBRO), so that the scam would go unnoticed. However, the fraud was later detected by astute engineers, and the contract was immediately terminated by the authorities.
Sources which provided LAKBIMAnEWS with this information and spoke to us on grounds of anonymity said that the Kelaniya Right Bank (KRB) Water Treatment Plant Project is a water plant built in Pattiwaila, Biyagama on the Kelaniya river right bank, with Danish assistance. It is meant to to provide water mainly to towns situated north of Colombo at a total cost of Rs. 8100 million.

Substandard steel

Speaking further these sources added that the main contractor AARSLEFF and the sub contractor China Geo had ordered 2000 tons of substandard steel known as Melwa steel which is said to be an unknown brand, costing Rs 200 Million. However, these same sources revealed that after the scam was exposed, the Water Board had decided to halt work concerning this project. Seven forged test reports were also found regarding the quality of the Melwa steel, issued by NBRO. Meanwhile, these sources also added that the engineer who had helped detect this fraud has been suspended, and that the Melwa steel supplier is now influencing the authorities to continue with the supply of the substandard steel construction material.
Many allegations were leveled against the NWSDB, NBRO and the contractors of the KRB Water Treatment Plant Project by these sources. However, when LAKBIMAnEWS contacted the NWSDB, Project Director Ranjith Perera, we heard a different version of the story. He said that the KRB Water Treatment Plant project was functioning.
“That project is still functioning though there was a small issue with a steel product, which was bought by the sub contractors China Geo. 200 tons of Melwa steel were ordered and bought by the sub contractor. However, we soon learned that this steel which was brought to the site was not upto SLS standards or not even upto British standards. So we refused to purchase the steel products and asked the sub contractor to replenish stocks with quality steel .”
When we questioned the Melwa steel supplier about still trying to influence the NWSDB to use the former product, Perera refuted the claim. “That story is completely incorrect. We have stopped the purchase of Melwa steel, ” he said. Nevertheless when we asked him about the forged certificates, the project Director admitted that a few forged certificates existed, which had included incorrect test results on a NBRO letterhead. So how were these certificates issued, we asked Perera. He said: “Yes, that is a problem indeed. Though the NWSDB did not incur any financial loss, we agree that a few certificates were forged. However, we have already lodged a complaint with the Police. Meanwhile, the CID is also conducting investigations into this matter.”
When asked about the suspended engineer, Perera further said that the engineers were working in the company belonging to the main contractor AARSLEFF, and that this contractor must have decided to terminate the particualr engineer’s services.
“We do not know for what reason this engineer has been suspended from his duties. All we can do is assume that perhaps he is in some way linked with the fraud that has taken place. However, we do not know that for sure. We will get to know who is responsible, after the police and the CID complete their investigations. Meanwhile, all we can say is that, from everything that has happened, no financial loss was incurred on the part of the NWSDB. However, the loss will have to be borne by the sub contractor,” Perera said.
We also contacted AARSLEFF the main contractor of the KRB Water Treatment Plant Project. AARSLEFF was responsible in terminating the services of the engineer. However, AARSLEFF Project Manager, Niels Bay Jensen when contacted refused to talk to us.
However, the Minister in charge of Water Supply, Mahinda Amaraweera told us that the project is functioning though there was a problem regarding the steel supply.
“It is true that substandard steel had been used for the project, and when the NWSDB had found out about this scam, they had removed all the low quality steel and replaced it with good quality steel. However, now the project is functioning and all is in good order.”

Forged certificates

When questioned about the forged certificates with the NBRO logo, Amaraweera said that he is aware of the situation.
“Both the police and the CID are looking into this matter. However, we suspect that either the contractor or some persons working at the NBRO and NWSDB must have been involved in this fraud. Anyway we will look into this matter, and after the CID investigation, if we find that some of these parties are involved in this scam, we will take legal action against them. “
Speaking further Amaraweera said that fortunately the NWSDB found out about this scam at the nick of time and took immediate action.
Meanwhile when LAKBIMAnEWS contacted the Director General of the National Building Research Organization (NBRO), W. B. J Fernando, and queried him about the forged documents, he said that the NBRO was not responsible for what had taken place.
“There isn’t anything we can do. We released the correct test results of the specific steel product sent to our client, China Geo. And after that, we do not know what happened to those certificates. Anyway it is not our responsibility to find out what happened to the certificates. However, if anyone complains to us saying reports issued by the NBRO include incorrect data, then we will investigate and see what could be done regarding that matter,” Fernando said.