As the first step, its chairman Kiran Atapattu recently told the media that he had found 45,000 mt of weevil-infested Indian Naadu and Indian White Kekulu rice from the institution’s warehouses.
The attempt is to sell the rice to Prima at between Rs. 25 and Rs. 30 per kilo, it has now come to light.
Atapattu, who is Sathosa chairman since February, says the rice had got weevil-infested as his instructions to send the consignment to sales outlets speedily had not been followed.
Also, he had paid demurrage and got cleared 50,000 mt of Swarna Ponni that had been kept at the port since January.
That rice too, is not fit for consumption now, and will soon be given to Prima as animal feed.
Finance minister Ravi Karunanayake has questioned industries minister Risath Badurdeen as to why such a large consignment had been imported.
He has refused to grant concessions requested for the clearance of the rice, but Badurdeen had got involved in getting it cleared.
The middleman between Lanka Sathosa and Prima in this deal is Colombo Pettah businessman Rajan.