September 27, Colombo (LNW): In a significant development, the Sri Lankan Court of Appeal has issued an interim order suspending a Cabinet decision related to the purchase of 750,000 N-Series travel documents from Thales Finland OY and Just In Time Technologies Ltd.
The decision, made on September 2, 2024, and the associated procurement process for machine-readable passports (MRPs) and 5 million e-passports, has been temporarily halted due to concerns over potential violations of procurement procedures raised by Epic Lanka, a competing bidder.
Epic Lanka had filed a petition challenging the procurement, arguing that the contract awarded violated the original procurement process. The court has not only suspended the Cabinet’s decision but also halted all actions connected to the deal, including the invitation for bids and any subsequent contracts or agreements with the aforementioned companies.
The Court of Appeal will revisit the case on October 1, 2024, through the Writ Application No. 609/2024.Procurement Controversies and Tender Process
The Ministry of Public Security initially called for international tenders to supply and print 5 million e-passports over a span of ten years, adopting a Public-Private Partnership (PPP) model.
However, this tender was later canceled by the ministry, citing the availability of upgraded printing infrastructure at the Department of Immigration and Emigration (DIE). The ministry floated a new tender, limited to the procurement of the passport booklets, with the expectation that the passports would be printed using the existing infrastructure.
Of the four companies that submitted proposals, Thales, in partnership with local firm Just In Time Technologies, was selected to supply the e-passports. This decision was based solely on purchasing the passport books, without including printing services.
Public Backlash and Operational Issues
Meanwhile, the DIE introduced an online-only system for passport applications, accepting just 800 applications per day, down from the previous 3,000. This sudden shift led to chaos at the DIE office in Battaramulla, with long lines and public frustration.
The reduced daily applications were seen as a measure to manage the limited stock of MRPs until the e-passports were ready to be rolled out next year. However, this reduction in applications has significantly impacted government revenue.
Alleged Breach of Tender Conditions
After being awarded the contract, Thales and its local partner reportedly informed the authorities that they could not print the e-passports using the existing infrastructure, contradicting the original tender conditions.
Instead, they offered to provide the necessary infrastructure and charge for each passport printed. This new proposal led to the submission of a Cabinet paper for approval, which Epic Lanka claims is a violation of government procurement policies. Critics have compared this situation to the controversial VFS visa issuance deal, where Sri Lanka paid high fees to a foreign company for tourist visa processing, despite having a more cost-effective local system.
