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| Wednesday, 14 July 2004 |
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by Rajmi Manatunga The Government yesterday disclosed a series of alleged large scale frauds and corruption running into Rs 28.6 million committed by the administration of MILCO Private Ltd in the import of milk powder to the CWE during the previous regime. Agriculture and Livestock Minister Anura Kumara Dissanayake told the media that the former Chairman and the Chief Executive Officer of the State-owned company had allegedly imported 1,100 metric tonnes of low-quality milk powder manufactured by an English company called Philpot Diary Ltd and fraudulently sold them through the CWE under the Highland brand name. According to the Minister, the alleged fraud discovered following inquiries by a three member committee has caused a huge financial loss to MILCO, the only manufacturer of milk powder sans chemicals in Sri Lanka. "According to the report forwarded by the Committee, the financial loss resulting in the alleged transaction is around Rs 28 million. But the loss caused to the demand for Highland milk powder in the market is much more. "There is an unsold stock of 1,350 MTs of genuine Highland milk powder," the Minister said pointing out that sales of Highland which was eight million packs in 2001 had drastically fallen to 5.5 million in 2003. The Minister said the low-quality milk powder released to the market under Highland, Highland 1+ and Highland 4+ names had been imported following an alleged agreement between the former Chairman and the English company without the approval of the Board of Directors, where MILCO paid an additional US$ 200 per metric tonne over the world market price. "There is no reason to doubt the former Agriculture Minister's knowledge in this regard. We have identified this as an alleged conspiracy aimed at destroying the market share of Highland which was fast gaining popularity. Legal action will be taken shortly against the culprits responsible for these transactions." The Minister emphasised they would not release the remaining stocks of low-quality milk powder to the market since they had recalled all such products from shops and provided them for animal consumption. Consumers need not harbour any apprehensions about the quality of Highland products now on sale, he added. |
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