Nagananda Files CA Petition Over Recent Gas Purchases

Posted on the 12 July 2022 by Frontpage
Law & Order Dilshan Tharaka Tags:  Print Edition

A Writ petition was yesterday filed in the Court of Appeal seeking an Interim Order restraining the implementation of Litro Gas Lanka Ltd decision to purchase domestic LP Gas from a private company at a rate of US$ 129 per metric tonne.

The petition has sought the issuance of a Writ of Mandamus directing the Litro Gas Company to procure domestic LP gas at a lower price instead of obtaining it at a higher price.

The petition was filed by Vinivida Foundation General Secretary Nagananda Kodithuwakku.

The petition has cited eight respondents including Litro Gas Lanka Ltd, its Chairman Muditha Peiris, Prime Minister Ranil Wickremasinghe, his Advisor Sagala Rathnayake, Siam Gas Trading Pvt Ltd., O Q Trading Limited, Activs Oil Industry Suppliers Ltd and the Attorney General.

The petition says that the respondent Litro Company decided to make immediate purchases (Spot Purchase) as a remedy for the current domestic LP gas crisis in the country.

According to the petition, tenders were called and three companies had submitted their prices.

According to the tenders, Siam Gas Trading Company agreed to supply two hundred and eighty thousand metric tons of gas at a rate of USD 96 per metric ton including shipping and insurance charges, and it is stated in the petition that the cabinet approved it. But the purchase of gas from that company was canceled and the petition says that the respondent Litro Gas Company has entered into new agreements to purchase from a company called Activs Oil Industry Suppliers at a rate of USD 129 per metric ton of gas.

The petitioner alleges that the respondents Litro Gas Lanka Ltd Chairman Muditha Peiris, Prime Minister Ranil Wickramasinghe and his Advisor Sagala Ratnayake have committed serious financial irregularities by deciding to purchase gas at a higher price when they were supposed to purchase gas at a lower price.

The petitioner has pointed out that there is a huge waste of public money by purchasing gas at higher prices.

Therefore, the petition seeks to issue a Writ of Certiorari to quash the agreement made to purchase gas at US$ 129 per metric tonne from a private company.

The petition also requests the issuance of a Writ of Mandamus ordering the respondents to purchase gas at the lowest prices currently offered for the benefit of the consumers.

Wednesday, July 13, 2022 – 01:12