Jun 01, 2019

‘Suraksha’ tender Chairperson unaware that Allianz was a foreign company! Featured

The Education Ministry Nutrition Director Renuka Pieris, giving evidence before the Presidential Commission probing the irregularities of the Good Governance Government said she was unaware that the company (Allianz) entrusted with the provision of insurance to school children under the Suraksha Insurance scheme, was a foreign insurance company.

She served as the Chairperson of the tender committee set up to provide insurance of Rs. 4.5 million to students between the age of 5-18 and said that they had received instructions to award an extra 10 points to local insurance companies who bid for the tender.

The Sri Lanka Insurance Company had obtained 64 points while the foreign insurance company Allianz had received 94 points.

However, she claims that she was unaware that Allianz was a foreign company. Therefore, the extra 10 points instructed to be given to local insurance companies had also been awarded to Allianz.

The Chairman of the Committee, retired Supreme Court Judge Upali Abeyratne and the rest of the commissioners had stated that while around Rs. 500 million would have to be paid as compensation for injuries suffered by the students, the balance 2,300 million is the question.

Allianz tender awarded in violation of circular

However, it is said that this contract has been given to a foreign company violating the state finance circular No. 04/2015.

According to the regulations of the circular, tenders should only be called from state insurance companies, but the Education Ministry had disregarded this regulation and called for tenders from foreign insurance companies as well.

If the regulations of the state Finance Circular was adhered to it would prevent the state officials from taking bribes and other irregularities, but by awarding the tender to a private insurance company, transparency of the process is compromised.

According to economic experts by this move state tax revenue will definitely go to a foreign country which is detrimental to the country, especially at a time when the rupee is at a very weak position.