(1) Subject to subsection (2), the provisions of this Act shall apply to every public contract where the contract cost exceeds five million rupees.

In this subsection" contract cost" means the anticipated or estimated consideration for such contract and where such contract has been concluded by acceptance of tender, the agreed consideration for such contract, and accordingly, where the contract is for the performance in instalments, the consideration shall be the aggregate of the amounts payable in respect of such instalments.

(2) The provisions of this Act shall not apply-

(1) The President may from time to time appoint from among persons who appear to the President to have had experience and shown capacity in industrial, commercial, legal or financial and administrative matters, a Panel of inquiry of not less than ten persons.

(2) The provisions of the First Schedule hereto shall have effect in relation to the members of the Panel.

(3) For the purpose of carrying out any investigation under this Act, the President may nominate one or more members of the Panel to constitute a tribunal of inquiry (in this Act referred to as the" Tribunal ")

(4) Where more than one member of the Panel have been nominated to the Tribunal, the President may nominate one of them as the Chairman of the Tribunal.

(5) Where a Tribunal is constituted under this section, the Registrar of Public Contracts appointed under section 1 shall function as the Secretary to the Tribunal.

(1) The Tribunal shall have and may exercise and discharge the powers and duties conferred or imposed upon it by this Act, and in particular the following:

(2) Notwithstanding anything contained in any other law, it shall be the duty of any person to whom a request, summons or directive is made or given under this section, to forthwith or within the time specified therein to comply with the same, and if he fails to do so without reasonable excuse he shall be guilty of the offence of contempt against, or in disrespect of the authority of the Tribunal.

(1) For the purpose of this Act, the President shall appoint a person to be known as the Registrar of Public Contracts (hereinafter referred to as the" Registrar") and such other persons as Assistant Registrars as may be deemed necessary.

(2) Any person appointed as an Assistant Registrar may perform and discharge any power, duty or function expressly conferred or imposed upon the Registrar under this Act.

(1) The duties of the Registrar shall be-

(1) Any person who acts as an agent or sub-agent, representative or nominee for or on behalf of any tenderer, shall register himself and such public contract in accordance with section 10 and shall furnish to the Registrar the particulars required to be furnished under section 6.

(2) Where any person is an agent, sub-agent, representative or nominee for or on behalf of a tenderer he shall first produce a certificate of his appointment as agent, sub-agent, representative or nominee to the Registrar before he registers himself and the public contract under this section,

(1) Every person who contravenes or fails to comply with the provisions of section 8 shall be guilty of an offence and shall be liable on conviction to a fine of one hundred thousand rupees and to imprisonment for a term not exceeding two years.

(2) No person required to be registered under section 8 shall have any dealing directly or indirectly relating to a public contract-

without first producing a valid certificate of registration under this Act and if such person has any dealings or attempt to have any dealings he shall be guilty of an offence and liable, on conviction thereof, to a fine not exceeding one hundred thousand rupees or to imprisonment for a term not exceeding two years.

(1) Every application for registration under section 8 shall be made in the prescribed form and shall contain a declaration by the applicant that the particulars stated therein are to the best of his knowledge true and accurate,

(2) The Registrar, shall, upon being satisfied that the applicant has not contravened any of the provisions of this Act, and the particular stated in the application are true and accurate, register the applicant and the public contract to which such application relates.

(3) No person shall be registered or issued with a certificate under section 11 until he has paid to the Registrar the prescribed fee,

(1) Pursuant to a registration under section 10 the Registrar shall issue to such applicant a certificate in the prescribed form.

(2) The Registrar may, at any time, require the attendance before him of the persons applying to be registered, or who has been registered, and may require the attendance of any other person to ascertain any information the Registrar considers necessary for the proper enforcement of the provisions of this Act and examine such person upon oath or affirmation.

(3) A certificate issued under this section, shall, subject to the provisions of section 14 remain in force for a period of one year from the grant of such certificate and may from time to time be renewed for a period of one year on payment of the prescribed fee.

(1) The registration of any person registered under this Act may be cancelled or suspended by the Registrar on his own motion-

(2) Where the registration of any person has been cancelled or suspended by the Registrar under subsection (1), that person shall thereupon cease to be registered and the Registrar shall inform such person in writing of such cancellation or suspension as the case may be.

(3) Before canceling or suspending the registration of any person under this section, the Registrar shall-

(1) Any person aggrieved by a decision of the Registrar in respect of any cancellation or suspension under section 14, may appeal against such decision to the Court of Appeal, within fourteen days of his being informed by the Registrar of such cancellation and suspension.

(2) Until rules are made under Article 136 of the Constitution pertaining to appeals under this section, the rules made under that Article pertaining to applications by way of revision to the Court of Appeal shall apply to every appeal made under this section.

(3) The Court of Appeal may on an appeal made to it under this section, confirm, revise, modify or set aside the decision against which the appeal is made and make any other order as the interest of justice may require.

(1) Any person who, in the course of any transaction relating to. a public contract or at any stage in the duration of such contract-

to the Registrar or to any member of the Panel or Tribunal, public body or a technical committee, tender board or evaluation board of such body or any employee or officer thereof, or to any State officer or any other person for the purpose of causing or inducing the Registrar or any such member, employee, officer or State officer or other person to enter into any public contract or to award any tender or to show or give any favour or privilege to any person for or in connection with any public contract, shall be guilty of an offence and shall be liable on conviction to a penalty of not less than one hundred thousand rupees and to imprisonment for a term not less than two years and not exceeding five years.

(2) Where a person convicted of an offence under subsection (1) is a person registered under this Act, such person in addition to any penalty imposed under subsection (1), shall be liable to a further penalty equal to an amount imposed under that subsection.

(3) Where in the course of any transaction relating to a public contract the Registrar or any member of the Panel or a Tribunal or any member of a public body or of a technical committee, tender board or evaluation board of such body, or any officer or employee thereof, or any State officer or any other person has accepted any inducement or gratification of any form whatsoever, or has accepted or received any movable or immovable property or has' accepted or received any scholarship, reward or any other form of benefit or consideration offered, made or given in contravention of subsection (1) whether in Sri Lanka or elsewhere such Registrar, member, officer, employee, State officer or any other person shall be guilty of an offence and be liable on conviction to a penalty of not less than one hundred thousand rupees and to imprisonment for a term not less than two years and not exceeding five years.

(4) Where in any proceeding under this section evidence has been adduced that an inducement, gratification, transfer of movable or immovable property or a scholarship, reward or any other form of benefit or consideration has acted as a material factor in the award of a public contract and in consequence thereof the Registrar or any member of the Panel or a Tribunal, a public body or of a technical committee, tender board or evaluation board of such body or any employee or officer thereof or any State officer or any other person derived any direct or indirect material advantage or benefit it shall be presumed in the absence of proof to the contrary that an inducement, gratification. transfer of movable or immovable property or award of a scholarship or any other form of benefit or consideration was offered or made or given for the purpose of inducing the person to whom it was made to enter into such public contract.

(1) Every person who, otherwise than in the course of his duty, directly or indirectly, by himself or by any other person, in any manner whatsoever, influences or attempts to influence whether in Sri Lanka or elsewhere-

in the exercise, performance and discharge of his powers, functions and duties under this Act or in connection with any public contract or at any stage in the duration of such contract, shall be guilty of an offence and shall be liable on conviction to a fine of rupees one hundred thousand or to imprisonment for a term not exceeding two years.

(2) Any offence committed in any place referred to in subsection (1) shall be triable by the High Court holden in the judicial zone nominated by the President of the Court of Appeal by a direction in writing under his hand.

(1) It shall be the duty of -

in the exercise, performance and discharge of his powers, function and duties, to report forthwith to the President the commission or attempted commission of any act or acts by any person in contravention of any of the provisions of this Act or any regulations made thereunder.

(2) Up an the receipt of a report under subsection (1) the President may, under subsection (3) of section 3, nominate a Tribunal to carry out an investigation.

(3) Any person referred to. in subsection (1) who fails to comply with the provisions of that subsection shall be guilty of an offence and shall be liable an conviction to a fine of one hundred thousand rupees or of imprisonment, not exceeding two years.

(4) No suit or prosecution shall lie against any person in respect of a report submitted by such person under subsection (1).

(5) No person shall print or publish any report or statement which directly or indirectly refers to the contents of any report made under subsection (1), except with the written approval of the President.

(6) A person who contravenes the provisions of subsection (4) shall be guilty 'of an offence and shall be liable on conviction to a fine of one hundred thousand rupees or to imprisonment for a term not exceeding two years.

(1) Where it is alleged that any public contract has been entered into contrary to the specifications or pre-qualifications required in relation thereto or where restrictive specifications have been set out for the award of a tender or contrary to the provisions of this Act, any person aggrieved by the award of such contract may, by petition in writing accompanied by a duly sworn affidavit, request the President to appoint a Tribunal under subsection (3) of section 3 to carry out an investigation with regard to such contract.

(2) For the purpose of section 6, and this section "duly sworn affidavit" means an affidavit sworn or affirmed to, before a justice of the peace or a judicial officer that sets out the facts and circumstances within the personal knowledge of the deponent.

(3) On receipt of a petition under subsection (1) the President may nominate, under subsection (3) of section 3 a Tribunal to carry out an investigation.

(1) Where it appears to the Tribunal that in the course of an investigation under this Act, any person has been guilty of an offence, the Tribunal may of its own motion, report the matter to the Attorney-General and shall furnish him" such information and give him such access to, and facilities for inspecting and taking copies of any statement, information or documents as are in the possession or under the control of the Tribunal.

(2) If on any report submitted to the Attorney-General under subsection (1) it appears to him that it is a case where a prosecution ought to be instituted, he shall within one month of the receipt of such report inform the Tribunal accordingly, and shall institute proceedings within two months thereafter, and it shall accordingly be the duty of the Tribunal to render him all assistance in connection with the prosecution or proceedings:

Provided that where the Attorney-General is of the opinion having regard to the circumstances of the case that proceedings cannot be instituted within the period of two months, he shall inform the Tribunal accordingly and such proceeding shall not be deemed to be invalid by reason only that it had not been instituted within the period of two months.

(3) Where a person convicted under this section is a contractor, tenderer or any other person registered under this Act, the Court shall give notice of such conviction to the Registrar who shall thereupon-

(1) Any person while being employed in any capacity by any public body has occasion to acquire or obtain cognizance of any classified information, and communicates such information to any person other than to a person to whom he has a duty to disclose such information, whether in Sri Lanka or elsewhere, and before or after the award of any tender relating to a public contract, then such person shall be guilty of an offence, and on conviction be liable to a fine of one hundred thousand rupees or to imprisonment for a term not exceeding two years.

(2) In this section" classified information" means any facts, information or knowledge, documents or objects that relate to any public contract.

(1) The Tribunal shall have power to summon and examine all witnesses at any investigation conducted by the Tribunal. Every summons shall be under the hand of the Chairman of the Tribunal.

(2) A summons may be served by delivering it to the person named therein, or if that is not practicable, by leaving it at the last known place of abode of ,that person.

(3) Every person on whom a summons is served ,shall attend before the Tribunal at the time and place mentioned therein, and shall give evidence or produce such documents or other thing as are required of him and are in his possession or power, according to the tenor of the summons.

(1) The Tribunal shall have power for the purpose' Evidence of any inquiry or any investigation under this Act-

(a) to procure and receive all such evidence, written or oral, and to examine; all such persons as witnesses, as it may think necessary .or desirable to procedure receive or examine;

(b) to require the evidence, whether written or oral of any witness to be given on oath or affirmation; such oath or affirmation to be that which would be required of that witness if he were giving evidence in court, and to administer an oath or affirmation to every such witness.

(2) All such evidence whether written or oral as may be obtained by the Tribunal in the course of an investigation under this Act certified by the Chairman as having been so obtained shall subject to the provisions of the Evidence Ordinance and notwithstanding the provisions of any other law to the contrary, be admissible in evidence against an accused person in any prosecution for an offence or in any proceedings under this Act.

(a) fails without cause, which in the opinion of the Tribunal is reasonable, to appear before the Tribunal at the time and place mentioned in the summons; or

(b) refuses to be sworn or affirmed or, having been duly sworn or affirmed, refuses or fails without cause, which in the opinion of the Tribunal is reasonable, to answer any question put to him relating to the matters directed to be inquired or investigated into by the Tribunal; or

(c) refuse or fails without cause, which in the opinion of the Tribunal is reasonable, to produce to the Tribunal any document or other thing which is in possession or power and which is in the opinion of the Tribunal necessary for arriving at the truth of the matters to be inquired into, such person shall be guilty of the offence of contempt against, or in disrespect of, the Tribunal.

(1) Any act or omission in contravention of the provisions of section 26, shall constitute an offence of contempt against, or in disrespect. of, the Tribunal if such act or omission would, if, done or omitted to be done in relation to the Court of Appeal have constituted an offence of contempt against, or in disrespect of, the authority of such Court.

(2)

(a) when required to do so by the Tribunal, a court, or the person to whom the transaction or matter relates;

(b) in the performance of his duties; and

(c) in order to comply with any of the provisions of this Act or any other written law.

(1) No suit or prosecution shall lie against the Registrar, the members of the Tribunal or any officer or employee thereof, for any act which in good faith is done or purported to be done by the Registrar, a member of the Tribunal or any officer or employee thereof under this Act.

(2) No action, prosecution or other proceeding civil or criminal, shall be instituted in any court or tribunal against any person referred to in subsection (1) in respect of any report made by him under this Act.

(a) by a body of persons then-

(b) by any person acting for or 'on behalf of a person registered under this Act then the registered person.

shall be liable for the commission of that offence unless he proves that the 'Offence was committed without his consent or connivance, and that he exercised all due diligence to prevent the commission of that 'Offence as he ought to have exercised, having regard to the nature of his functions and all other circumstances.

(1) Where negotiations in relation, to any public contract have not reached finality by the execution 'of a contract or where any public contract has been entered into and the performance of such contract has not been completed 'or where the final payments in respect 'Of the performance 'of any public contract have not been made on the date of commencement of this Act, the provisions 'of this Act shall apply, mutatis mutandis, in respect 'Of such contract.

(2) where after the date 'of commencement of this Act final payment has been made in respect of the performance of all the obligations in a public contract and the Tribunal is of the opinion after investigation that there have been irregularities in the procedure adopted by any public body in the awarding 'of such contract or that there has been a contravention 'of the terms and conditions specified in such contract, the Tribunal may make such inquiries as it may deem necessary and may report the result 'Of that inquiry to the President and to the Attorney-General, and the provisions of section 22 shall apply, mutatis mutandis, to any such report.

(1) The President or where the subject 'or function is assigned to a Minister, such Minister, acting with the concurrence 'of the President may make regulation for all matters in respect 'of which regulations are authorized to be made under this Act.

(2) Without prejudice to the generality 'Of the powers conferred by subsection (1), where the subject or function has been assigned to a Minister, such Minister may with the concurrence of the President make regulations in respect 'or all of any of the fallowing matters:

(3) Every regulation made by the Minister under this Act, shall be published in the Gazette and shall come into operation on the date of the publication or on such later date, as may be specified in the regulation.

(4) Every regulation made by the Minister shall, as soon as convenient after the date of its publication, be brought before Parliament for approval. Any regulation which is not so approved shall be deemed to be rescinded as from the date of disapproval but without prejudice to anything previously done thereunder.

(5) Notification of the date on which any regulation is deemed to be rescinded shall be published in the Gazette.

(1) The Chairman of the Tribunal shall submit to the President in such form and detail as the Tribunal may determine the report of the Tribunal's work during the year completed.

(2) The Tribunal may, in addition to the report furnished under subsection (1), submit to the President such other reports on such matters as it deems necessary and shall furnish to the President such information as the President may call from time to time in respect of the activities and affairs of the Tribunal.

(a) in the case of a government department the head of such department;

(b) in the case of a public corporation its Chairman; or

(c) in the case of a local authority the Mayor or Chairman as the case may be ;

(a) the President;

(b) the Speaker;

(c) a member 'of the Judicial Services Commission;

(d) a member of the Public Service Commission;

(a) any consortium of persons any one or more of whom is not a citizen of Sri Lanka. or not ordinarily resident in Sri Lanka; or

(b) a company or firm incorporated or registered or has its principal place of business outside Sri Lanka;

(c) any individual ordinarily resident in Sri Lanka or if not so resident is or has been a citizen of Sri Lanka; or

(d) any company, firm or public body incorporated in or which has its principal place 'Of business in Sri Lanka; or

(e) any company or firm not incorporated in Sri Lanka or not having its principal place of business in Sri Lanka, in which any Director partner or any shareholder holds more than twenty-five per centum of its share is, or has been a citizen of Sri Lanka

and who enters into any public contract with any public body or is a prospective tenderer, contractor or supplier in respect of any such contract with a public body.