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Sri Lanka probes Rs. 606mn architects’ consultancy in defence HQ deal

ECONOMYNEXT – Sri Lanka’s government is investigating an architects’ firm given a consultancy in the new military headquarters complex without competitive bidding and paid 80 percent of their fee for less than half the work, a spokesman said.

Health Minister Rajitha Senaratne said the architects, Muditha Jayakody Associates (Pvt) Ltd., had been given a 606 million rupee contract for consultancy services in the Akuregoda Security Services Headquarters building project in the Battaramulla suburb of Colombo.

“The total cost of the headquarters complex is 65 billion rupees and there appears to be financial irregularities in the project,” he told a news conference.

“A team of officials appointed to investigate the project found the company appointed to provide consultancy services, Muditha Jayakody Associates, was chosen without competitive bidding – no tenders were called.”

The company had not been registered under Company Law nor with the Sri Lanka Institute of Architects, when it was given the consultancy deal and had done so only after the contract was given, Senaratne said.

“Also, there had been no agreement with the company for the project. Although 509.9 million rupees – 83 percent of the amount of the 606 million rupee consultancy – had been paid as of 31 May 2015, only 30 percent of the work has been done.”
He said the Cabinet of Ministers had decided to probe the deal and take legal action, if necessary.  (Colombo/August 6 2015)

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