Classic examples of a power mafia destroying CEB

day by day. We wonder why a party like JVP is

keep their silence on this critics -CEB Engineers

(Lanka-e-News- 05.Feb.2015, 2.00PM)

Dear Mr. Wasantha Samarasinghe - JVP,
We being a group of professional electrical engineers associated with Ceylon Electricity
Board (CEB) would like to share few information with you. The reason weve selected
you is simply that your comments against the present Power and Energy Minister
regarding the recent salary increment of engineers in CEB.
We accept that this increment was approved on 7th Jan 2015 by the past government
just before the presidential election to get an undue advantage. Same time we note that
there was a pending salary increment to CEB engineers by that time. We have the same
argument on the method this increment is given.
But we have a question on your approach of marketing this issue against the present
Power and Energy Minister by neglecting his great attempts to clean the CEB while
sweeping out the power mafia.
Below is one classic example of a power mafia destroying CEB day by day. We wonder
why a party like JVP is keep their silence on this critics.

CEB, LTL Holdings (LTL Holdings) and LTL Projects (LTL Projects)
CEB has a subsidiary company called LTL Holdings (Pvt) Limited (LTL Holdings). LTL
Holdings, formally known as Lanka Transformers Limited (LTL) has incorporated in
1980 with the fullest support of CEB. Main business lines of LTL are the
manufacturing of distribution transformer to CEB, steel galvanizing and power
producing by independent power plants. At present CEB has 63% of its shares. Balance
37% is ultimately owned by following Three Culprits. We will explain how it has
happened.
Mr. U. D. Jayawardana (Chief Executive Officer of LTL Holdings)
Mr. M. J. M. N. Marikkar (Chief Operations Officer of LTL Holdings)
Mr. Ravindra K. Pitigalage (Chief Financial Officer of LTL Holdings)
Without any doubt and argument, LTL has done immense service to our national
economy, engineering field and CEB. We dont claim or takeout any credit belongs to
LTL on this great service. But you didnt give the licence to HE Mahinda to do
whatever the thing he wish even he won the battle with LTTE. Similarly we couldnt
allow these Three Culprits to do whatever the thing they wish and steel the public
money.
Back to the story, in 1998, LTL formed its fully owned subsidiary, LTL Projects (Pvt)
Limited (LTL Projects) to grab the opportunities in power sector projects. LTL
Projects shares were owned by LTL Holdings (Formally known as LTL), LTL ESOT
Limited and aforesaid Three Culprits. And LTL ESOT Limited is owned by the Three
Culprits. Finally equation of LTL Projects were minimized to Shares of LTL + Shares
of Three Culprits.
At 2002, Minister of Power and Energy, Mr. Karu Jayasuriya tried to appoint Mr. Upul
Jayasuriya as the Chairman of LTL. Three Culprits shocked and formed an employee
union to mitigate the threat and won the battle since the change proposed was a
political appointment. But Three Culprits realized that summer has an end. At that
time CEB has 63% of LTL shares. 10% is owned by ABB and balance 27% is owned by
Lanka Transformers Group Share Ownership Trust.
As Tsunami hits Sri Lanka in 2004, another Tsunami came to destroy the LTL
tradition. Three Culprits successfully managed to take out the LTL shares on LTL
Projects. LTL favoured flavoured CEB officers shut their mouth there. Now LTL
Projects is fully owned and controlled by Three Culprits via their own firm LTL ESOT
Limited.
And same time ABB informed CEB to buyout their 10% shares on LTL. Same LTL
flavoured CEB officers said Three Culprits, no money to buyout. If you have do it.
Three Culprits took the ABB shares for LTL ESOT Limited. Now the LTL Holdings
equation is 63% for CEB, 10% for Three Culprits via their own firm LTL ESOT

Limited and 27% for Lanka Transformers Group Share Ownership Trust.
Lanka Transformers Group Share Ownership Trust is consisted of equal shares from
LTL Holdings employees. Three Culprits began to remove thousands of LTL Holdings
employees from labour to managers day by day. Three Culprits created various
stories, platforms and reasons them to resign by force or voluntarily. Now there are
only about five employees remained at LTL Holdings. Most of the labour is hired for
LTL Holdings works. And rest and management of LTL Holdings is paid by LTL
Projects and other subsidiaries. The reason to remove most of the LTL Holdings
employees is very clear. Its just to grab the Lanka Transformers Group Share
Ownership Trust only to Three Culprits. So, at present CEB has 63% of LTL Holdings
shares. Balance 37% is ultimately owned by Three Culprits.
Main Frauds by Three Culprits
Three Culprits formed a group with former Secretary to Ministry of Power and
Energy, M. M. C. Ferdinando and Additional General Manager (Projects) of CEB, L. A.
S. Fernando and execute billions of frauds through power and energy projects.
LTL Projects carryout the bulk of subcontracts for the main contracts acquired by
Lakdhanavi Limited (Fully owned subsidiary of LTL Holdings). CEB should get returns
on these projects through their share on LTL Holdings. But aforesaid five gangsters
make frauds accounts to minimize CEB returns and grab on their pockets.
If a firm having direct relationship with CEB, that firm couldnt participate for a tender
floated by CEB and couldnt execute a project for CEB as a contractor. LTL Projects is
fully owned and controlled by Three Culprits. They are executive officers of LTL
Holdings. 63% of LTL Holdings is owned by CEB. So, legally LTL Projects couldnt
participate for tenders floated by CEB and couldnt execute any project for CEB as a
contractor. But LTL Projects main business is Construction of Grid Substation and
Transmission Line Projects for CEB.
Even though there are different faces in front operation framework of LTL Projects,
Three Culprits control every other thing at LTL Projects. Eng. H. D. Chaminda is the
well-known Project Manager of LTL Projects who execute the Grid Substation Projects.
Now he is the CEO of LTL Projects. Attached Annex 1 is an appointment letter given by
CEO of LTL Holdings to Eng. H. D. Chaminda of LTL Projects. Its clearly mention that
he is appointed to execute CEB Transmission Substation Projects. How can a person
worked for CEB owned company (LTL Holdings) manage and direct operations of a
company worked as a contractor to CEB.
Son of L. A. S. Fernando (Additional General Manager (Projects) of CEB) is working
for LTL Holdings as an Electrical Engineer under the supervision of Mr. M. J. M. N.
Marikkar (Chief Operations Officer of LTL Holdings). You all may know that CEB Grid

Substation Projects are directed by Additional General Manager (Projects) of CEB. So

giving his son a job at LTL Holdings, Is it a bribe or just a Kalaguna Salakamu event.
Corruptions and Frauds done by well-educated elite group of so called professionals in
the infrastructure sector in Sri Lanka within last few years is now a Secret knows by
everyone. Former secretary to Ministry of Power and Energy, Former secretary to
Ministry of Highways and Chairman of Ports Authority are the well-known engineers
who lead this vulnerable culture from the front. As present Minister of Power and
Energy says, current bribery commission has no power and technically qualified
personnel to conduct investigations against these technical frauds, so need to form a
special technical investigation unit.
Another nice argument made by these victims is How we can fraud through
internationally funded projects. Those are given by World Bank, ADB or JICA. And we
have seen in the following paras in the letter published by the former His Excellency
President after the allegations made against him with his defeat. According to HE, its
virtually impossible to fraud since there are so many parties involved. HE says,
My government carried out more development work in this country than any other
government in post independence history. These unprecedented achievements were
belittled in the eyes of the public during the presidential election campaign with the
malicious propaganda that the costs of these infrastructure projects had been
overpriced three to tenfold and huge kickbacks taken by politicians and officials in my
government. The estimates for all infrastructure projects are made by Technical
Evaluation Committees (TECs) made up of well qualified and reputed engineers.
The project is then evaluated by a cabinet appointed tender board which is made up of
the most senior civil servants in the country. Every agreement signed with a foreign
lending agency is vetted by the Attorney General and it has to receive final approval
from the cabinet. Sri Lanka is now a middle income country and not entitled to
development assistance. Therefore, my government used concessionary financing
arrangements with the ADB, World Bank, and the Japanese, Chinese and Indian
governments for the implementation of certain development projects. If the cost of a
project is to be artificially inflated as some have alleged, there will have to be collusion
between all the relevant bodies of the government, the international project
consultants who design and supervise the project from start to finish, the contractor
and the lending agency a process involving scores of individuals and therefore
virtually impossible.
As professional engineers in Ceylon Electricity Board, we thought to give some
evidences to show how to fraud through foreign funded projects by World Bank, ADB
or JICA. Well describe below three projects funded by JICA.
Vavuniya Kilinochchi Transmission Project

Habarana Valachchenei Transmission Project

Greater Colombo Transmission and Distribution Loss Reduction Project
Above first project is already completed in 2012 and other two projects are not yet
awarded. So at least now we can save some money to the country if react soon.
Vavuniya Kilinochchi Transmission Project (VKTP)

This VKTP project is awarded to Consortium of Mitsubishi Corporation and LTL

Projects (MC & LTL Projects) for an amount of LKR 1,300 Mill.
There were only three bidders pre-qualified by TEC of CEB, Namely
MC & LTL Projects
Kinden Corporation, Japan
Viskus Corporation, Japan
There were only THREE key personnel involved with this. So, its very easy.
Mr. Mendis - DGM, Projects CEB
Mr. Ferdinando Former Secretary to Ministry of Power and Energy
Mr. Marikaar - COO of LTL Holdings
First Secretary of Ministry of Power and Energy and COO of LTL Holdings make the
deal to grab the project and share the profit.
Then COO of LTL Holdings make to deal with DGM, Projects CEB to grab the project
on their name.
Then DGM, Projects instructs his TEC to select only the three Japanese bidders. JICA
the funding agency is also very happy on this since whoever the winner, Japan gets
some money back.
Then COO of LTL Holdings approach aforesaid three Japanese bidders and start
negotiations to give a local offer to them.
Bidders also approaching DGM, Projects CEB and Secretary to Ministry of Power
and Energy to get help on qualifying. They also recommend LTL Holdings as the local
party.
Now COO of LTL Holdings decide the bidder they can get the more advantage. They
decide to go with MC.
Now the game begins. CEB has 63% shares on LTL Holdings. Legally if some firm
having legal relationship with CEB, that firm couldnt participate for a tender floated
by CEB. So, on top LTL Projects can participate for CEB tenders. But if so, legally these
Three Culprits cant be worked as CEO, COO and CFO of LTL Holdings.
Now LTL Projects make a consortium agreement with MC, Japan and submitted
highly increased bid price for LKR 1,300 Mill.

Meantime LTL Holdings acted as subcontractor of other two Japanese bidders and
gave them a higher price than above. So, MC+LTL Projects got the project.
Since LTL Holdings were recommended by DGM, Projects CEB and Secretary to
Ministry of Power and Energy, these two Japanese bidders didnt have any doubt on
their mind. But since the LTL Holdings management control the LTL Project, they
successfully manipulate the tender.
Comparing a same type of project done at Chunnakam, you can see the amount of
money they have stolen.
Project
VKTP
CARDP
Location Kilinochchi
Chunnakam
Scope
2 nos. of 132/33 kV TF
2 nos. of 132/33 kV TF
4 nos. of 132 kV feeders 4 nos. of 132 kV feeders
8 nos. of 33 kV feeders
8 nos. of 33 kV feeders
Contract Amount LKR 1,300 Mill.
LKR 650 Mill.
Year

2008-10

2010-12

Habarana Valachchenei Transmission Project (HVTP)

This HVTP project is going to be awarded to the Consortium of Mitsubishi

Corporation and LTL Projects (MC & LTL Projects).
Same parties as above has been pre-qualified by TEC of CEB, Only difference is Kinden
Corporation, Japan and Viskus Corporation, Japan came as a consortium.
MC & LTL Projects bid price is LKR 800 Mill greater than the Kinden & Viskus price.
But working on same method as earlier former Secretary to Ministry of Power and
Energy and former AGM Projects of CEB tried to disqualify Kinden & Viskus and try
to award the contract to MC & LTL Projects.
There were only THREE key personnel involved with this too. So, its very easy again.
Mr. L A S Fernando Former AGM, Projects CEB
Mr. Ferdinando Former Secretary to Ministry of Power and Energy
Mr. Marikaar - COO of LTL Holdings
Greater Colombo Transmission and Distribution Loss Reduction Project
There were seven bidders participated for this pre qualifications.
MC & LTL Projects
Kinden & Viskus
Siemens, Germany + India
ABB, Germany + India
Pestech, Malaysia

One Arabian firm

One Korean firm
Now again everything is set to do as previous tenders. Mr. L A S Fernando Former
AGM, Projects CEB, Mr. Ferdinando Former Secretary to Ministry of Power and
Energy and Mr. Marikaar - COO of LTL Holdings made the plan before the
presidential election to eliminate the other five bidders and qualify only the two
Japanese parties.
And again finally they will disqualify Kinden & Viskus and get the project to MC & LTL
Projects.
Now its high time for CEB engineers to come up and raise their hand against the
corruptions done by these CEB paid thieves. So, we are ready to support you to
disclose the power mafia by these so called elite people in the society. Please show us
your willingness by followings.
Remove Mr. U. D. Jayawardana (Chief Executive Officer of LTL Holdings), Mr. M. J.
M. N. Marikkar (Chief Operations Officer of LTL Holdings) and Mr. Ravindra K.
Pitigalage (Chief Financial Officer of LTL Holdings) from the positions in LTL
Holdings.
Suspend the CEB projects executed by LTL Projects or CEB projects awarded to LTL
Projects immediately.
-By Group of Electrical Engineers - CEB-