Archives

By Chamitha Kuruppu

The government is preparing a 'special document' on the controversial and much delayed privatisation of six state owned cluster bus companies which will be announced to the public shortly, Financial Advisor to the Prime Minister R. Paskaralingam told the Daily News yesterday.

"The deal is going through. The government will announce the actual situation of the deal to the public who only know half of the truth within another day or two," Paskaralingam said.

The media reported over the weekend that PERC has decided to further extend the time granted to the UK based IBIS Transport Consortium to settle the amount due while the agreement between the government and the IBIS was scheduled to lapse yesterday.

Secretary to the Finance Ministry Charitha Ratwatta said he is preparing a report on the same issue under the instructions of Prime Minister Ranil Wickremesinghe.

He said that he will hand over the report to the premier as 'soon as possible'. Former Transport Minister Dinesh Gunawardena told the Daily News yesterday that the Public Enterprise Reforms Commission and the government have been taken for a ride by the UK based IBIS Transport Consortium as they once again failed to pay the first instalment of 60 percent of the Rs.1.4 billion to the Treasury yesterday.

The 'so-called' biggest transaction that took place at the Colombo Stock Exchange (CSE) has violated the rules and regulations of the CSE as well as the tender procedure, Gunawardena said.

"PERC should take steps to cancel the agreement without further extending the time," he said. Gunawardena said the government should take a decision immediately and inform the public about its stand on the deal. He questioned the government for its failure to maintain 'the policy of transparency' throughout the deal. "Minister of Economic Reforms Milinda Moragoda and PERC should tell the public where they stand," he said.

IBIS has requested the government to grant a loan or a guarantee, which is a serious violation of the agreement between the two parties, he said.

"Due to this deal public transportation in the country has come to a virtual breakdown,". Gunawardena said that he hopes to raise the issue in Parliament during this week 'for the sake of the public in the country'.

Meanwhile, industry sources questioned why PERC cannot terminate the agreement and call for fresh bidding. None of the parties involved in the deal seems to be knowing what is actually going on, they said.

According to the agreement signed with PERC the first instalment had to be paid before February 15 and the second instalment before March 13.

The IBIS company earlier said that they paid Rs.850 million to the Treasury through a Letter of Credit in early February which was the first instalment of 60 percent of the Rs.1.4 billion for the purchase of the 39 percent shares of the first cluster bus companies.

Transport Minister Thilak Marapana earlier assured that the management of the six state-owned bus companies will not be handed over until the IBIS company pays the amount due.

News | Business | Features | Editorial | Security
Politics | World | Letters | Sports | Obituaries |

Produced by Lake House
Copyright 2001 The Associated Newspapers of Ceylon Ltd.
Comments and suggestions to :Web Manager