Section 77 of Consumer Affairs Act to be repealed

Uditha Kumarasinghe and Rajmi Manatunga

COLOMBO: The Government has decided to propose the immediate repeal of Section 77 of the Consumer Affairs Authority Act, inserted by the United National Party (UNP) Government to give Prima a free hand over wheat flour prices.

Cabinet Spokesman Minister Anura Priyadarshana Yapa told the media yesterday that the Cabinet which met on Wednesday approved a proposal to this effect and also decided to refer the issue to the Commission for the Investigation of Bribery and Corruption since they suspected foulplay behind the affair.

“The matter was disclosed when the Trade and Consumer Affairs Minister met Prima officials to inquire as to why they kept absconding legal proceedings instituted against it for the arbitrary increase of wheat flour prices. They have pointed out that Section 77 of the act is clearly intended to protect their action,” he said.

The Minister also pointed out that the positioning of the Section was unusual and suspicious in itself since it has been included after the section on language inconsistencies which is ordinarily the final main provision of an Act.

“It is extremely unusual to place such a fundamental provision which constitutes a proviso to the entire Act as the final Section of the legislation. We believe that it was inserted specifically to protect Prima since dealers of other essential commodities do not come under its ambit,” he said adding that the Section destroyed the whole purpose of the Act.

Addressing the briefing, Power and Energy Minister Mahindananda Aluthgamage said that they have evidence to prove that Rs one billion was provided by Prima to include the provision into the Consumer Affairs Authority Act which was promulgated in 2003.

“We ask the then Consumer Affairs Minister Ravi Karunanayake as to who received this money. We are also of the view that the UNP is responsible for every additional rupee the people have to pay for wheat flour,” he said.

Section 77 gives legal effect to any agreement entered into between the Government and a goods or service provider irrespective of anything in it contrary to the Act, during the period stipulated in such an agreement.

It has also been decided to propose the appointment of a Parliamentary Select Committee to probe the incident.

Aluthgamage also said they will soon disclose in Parliament other similar malpractices committed by UNP Ministers.