Coal Controversy Continues
The controversial Coal Tender issue came to light last year due to circumventing of procedure and process in awarding a spot tender to the same company. Thereafter legal action was filed in the Supreme Court. The court observed a blatant violation of the process when awarding the tender. K. Sripavan, C.J, in his judgement on the case said “I have no alternative but to declare the decision of the SCAPC (Standing Cabinet Appointed Procurement Committee) to award the tender to the 22nd Respondent (Swiss Singapore) cannot stand valid in the eye of the law.” In its judgment the Chief Justice also observed that some events which took place in the award of the coal tender to Swiss Singapore Overseas Enterprises Pte Ltd “shocks the conscience of the Court”
The applications were dismissed however due to preliminary objections that were raised.
The controversial Coal Tender process has taken a different turn with the Power and Energy Ministry deciding to continue to purchase coal from Swiss Singapore despite damning observations by the Supreme Court.
The decision comes despite the Power and Energy Ministry was said to have been “taken aback” last week when the spot tender they called for coal had the lowest price at USD 64.77 per metric tonne. However, current supplier, Swiss Singapore Overseas Enterprises Pte Limited price for the supply of coal is said to be USD 7 less than what was quoted in a recent spot tender at USD 58 per metric tonne. Hence, the Power and Energy Ministry would continue to contract with Swiss Singapore Overseas Enterprises Pte Limited.
However, that in order to arrive at the complete price which has to be paid to Swiss Singapore the calculations have to be made according to an API 4 Index. This figure does not seem to have been taken into account in classifying Swiss Singapore as the best option because had it been accounted for, the calculations would have shown that the long term tender with this company would have resulted in USD 9.17 more per metric tonne than what would have been spent using the spot tender method.
The figures given by the Power and Energy Ministry has also been questioned publicly by Wasantha Samarasinghe of the Voice Against Corruption Movement.
