brand logo

Hiring external lawyer to draft agreements: CEB justifies decision

23 Jun 2020

* CEB legal division not competent to handle matter * Engineers' Union yet to discuss the matter By Maheesha Mudugamuwa The Ceylon Electricity Board (CEB) justified hiring an external lawyer to draft agreements related to the formation of a joint venture with China Machinery Engineering Corporation (CMEC) for a 300 MW extension to the Lakvijaya Power Station in Norochcholai, claiming their legal division is not competent enough to handle the relevant subject. CEB Chairman Eng. Vijitha Herath told The Morning that by hiring an expert in the field, the Board was saving a large sum of public funds in case an issue arises between the two parties for the agreement. “This is not a simple agreement but a complex one for which a large sum of money is involved,” he stressed. As reported, the CEB has approved to retain the lawyer’s services at a total cost of Rs. 17.65 million, excluding taxes. The decision to hire an external lawyer was taken at the CEB’s board meeting held in April and all board members had agreed to the decision, the Chairman said, adding that the relevant lawyer was one of the best lawyers in Sri Lanka to handle power-related international agreements. When asked why CEB’s legal division is not handling the agreement, Herath noted that it was too expensive for the Board to keep such an expert in house as such cases arise only from time to time. “Whenever it is necessary, it’s cheaper to hire an expert in the field than recruite one to the Board, which is not practical,” he added. Meanwhile, when contacted, CEB Engineers’ Union (CEBEU) President Anuruddha Thilakaratne told The Morning that the issue had not yet been discussed with the union and therefore they couldn’t say whether the union agrees to it or not. However, the Union President stressed that as the most important thing at present is the establishment of a new power plant in Sri Lanka to solve the power crisis, whatever decisions the Project Management Unit (PMU) takes should be a necessity at present. Speaking to The Morning, a senior engineer attached to the CEB said that the subject matter of the new agreement to be signed for the new coal power plant is new to Sri Lanka and so a necessity arises to hire an expert lawyer in the subject. “The lawyer was chosen by a team of which a Chief Legal Officer (CLO) is a member and they have agreed to hire the new external lawyer,” the senior engineer, who wished to remain anonymous, told The Morning. Commenting on the lawyer fee, he noted that the entire amount was for a two-year-long process and that the CEB has not yet made any payment. "Even though we have about 1,000 engineers in CEB, we get local/foreign consultancy for technical tasks. It finally saves some money for the country as it gives recommendations on optimum methods," he added.


More News..