Brown sugar issued by Lanka Sugar Company (Pvt) Ltd (LSCPL) to be distributed among low-income families at subsidized prices has been sold to the private sector using the names of cooperative societies, it was reported.

The stocks of brown sugar produced by Sewanagala and Pelwatte sugar companies under the LSCPL are being given to cooperative societies for the distribution among the low-income families.

During the last tender, the LSCPL has sold a kilo of red sugar to private buyers at 340 rupees, while a kilo was sold to cooperative societies for 300 rupees.

It is said that the stocks of sugar obtained by the cooperative societies have been sold to the private sector at higher prices.

However, the private buyers said that the cooperative societies that issue sugar for a lower price are selected with political backing.

On March 7, a letter had been forwarded to the LSCPL stating that a sum of Rs.14.3 million was deposited to procure 50,000 kg of sugar in the name of the Hasalaka Cooperative Society Limited and that two lorries will be sent on March 8.

However, the Hasalaka Cooperative Society Limited said that it never ordered such a consignment of sugar.

Accordingly, the parties connected to this scam had earned an undue profit of Rs.2 million or more, from this transaction alone.

Similarly, 700 stocks of sugar have been sent under the name of cooperative societies in Habaraduwa and Ihala Lelwala in Galle and the scammers had fraudulently profited from this as well.

The LSCPL said that action will be taken if it is confirmed that a sugar scam had taken place.