Sri Lanka will be forced to pay US$ 8.3 million for the shipment of rejected Chinese organic fertilizer, which has been stuck in the country's waters for months. The vessel, Hippo Spirit, has been waiting for instructions to either unload the fertilizer or return to China. Regardless of whether Sri Lanka accepts the fertilizer or not, the country will have to pay a total of US$ 8.35 million, including US$ 6.75 million for the shipment and US$ 1.6 million in delay charges to the shipping company.
According to reports, the Hippo Spirit carrying the rejected
Chinese organic fertilizer is now located around 12.4 nautical miles from
Beruwala, Sri Lanka. The vessel had sailed from Qingdao Seawin Biotech Group
Co., Ltd to Sri Lanka carrying 20,000 metric tonnes of organic fertilizer.
However, after harmful bacteria was detected in the samples of the fertilizer
shipment, the ship was diverted to Singapore. Rather than returning to China,
the Hippo Spirit altered its course back to Sri Lanka.
On the 17th of September, Sri Lanka's Minister of Agriculture
confirmed that a microorganism called 'Erwinia' was discovered in the samples
brought down 'unofficially' to Sri Lanka and tested. The supplier of the
fertilizer was the same, Qingdao Seawin Biotech Group Co., Ltd. The suspension
of organic fertilizer imports from China was announced on September 29th after
the detection of harmful bacteria in a fresh sample (2nd batch) of Chinese
Organic Fertilizer.
The Ceylon Fertilizer Company Limited obtained a court order to
block payment to Qingdao Seawin Biotech over the shipment of organic
fertilizer, which was contaminated. The Colombo Commercial High Court issued
the order against the Qingdao Seawin Biotech, its local agent, and the People's
Bank on October 22nd. However, the People's Bank of Sri Lanka was blacklisted
by the Economic and Commercial Office of the Chinese Embassy in Sri Lanka for
failing to make the payment according to the Letter of Credit and the contracts
between the two parties.
On the 7th of November, Qingdao Seawin Biotech Group Co., Ltd.,
sent a Letter of Demand to the National Plant Quarantine Service. The letter
demanded that the NPQS make a payment of US$ 8 million within three days for
the loss and damage caused to Qingdao Seawin Biotech Group Co., Ltd. due to the
negligent conduct of the National Plant Quarantine Service.
In conclusion, the officials who influenced the Letters of Credit to be opened must be held accountable for this payment. The Hippo Spirit and the Seiyo Explorer both share the same IMO number, confirming that the Hippo Spirit is the Seiyo Explorer. The detection of harmful bacteria in Chinese Organic fertilizers has caused significant loss and damage to Qingdao Seawin Biotech Group Co., Ltd, and Sri Lanka is now compelled to pay the price.
By Polito
