Sacked Chairman insists govt. approved fertiliser mixing process

by Shamindra Ferdinando

The probe on what Agriculture Development and Agrarian Services Minister Maithripala Sirisena called a massive racket at Hunupitiya packaging plant of Lanka Fertiliser Company, has taken an unexpected turn with former Chairman Lalith Kantha Jayasekera claiming that the company had the government approval to produce mixed fertiliser.

In an interview with The Island, Jayasekera rejected allegations that he had engaged in any corrupt practice. "There is absolutely no truth in what the minister said," he said, emphasising that his appointment had been made by the Minister last May.

He said he had been accused of packing fertiliser which was to be made available to farmers under President Mahinda Rajapaksa’s subsidised scheme with a view to selling the product at a higher rate. "We have been accused of misappropriating Rs. 1,000 million," he said. He said once the investigation got underway, the police would know the truth. He vowed to prove his innocence in a court of law.


"Although I have been summarily dismissed on an extremely serious charge of corruption, they have retained me as Chairman of the Thamankaduwa Fertiliser Corporation," he said.

He emphasised that Lanka Fertiliser Company wouldn’t be able to meet farmers’ fertilise requirement, if it quit the packaging operation. He said the distribution of heavily subsidised fertiliser for 2007/2008 Maha season had been finalised at the time the raid was conducted on the Hunupitiya plant. The question of re-packing subsidised fertiliser therefore didn’t arise, he said.

According to him the Lanka Fertiliser Company received Rs 314 for a 50 kg sack of fertiliser although the farmer had to pay Rs. 350 for it. He said that the actual cost of a 50 kg bag was Rs. 3,150. The balance payment was met by the Treasury, he said.

He said that National Fertiliser Corporation in early November, 2006 had approved the fertiliser mixing programme. T. M Abeywickrema, Secretary to the Agriculture Development and Agrarian Services had acknowledged that the Lanka Fertiliser Company had been authorised to use subsidised fertiliser for the programme, he said. In fact, the Treasury had already deducted Rs 174,203,000 from the subsidy payments to the company, thereby making the allegation that subsidised fertiliser was used for mixing programme was irrelevant, he said. Abeywickrema’s letter dated February 28, 2007, which was copied to several officials including Treasury Secretary was proof that the Agricultural Development Ministry had been aware of the fertiliser mixing programme.