BRIBERY SCANDALS ROCK SLFP PORT UNION

By Ravi Ladduwahetty -2016-06-08

Three rival trade unions of the Colombo Port will soon file a series of complaints with the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) this week against the SLFP Trade Union of the Colombo Port for malpractices committed which border on bribery and corruption.

This follows Audit Superintendent of the Auditor General's Department R.G. Hettiarachchi submitting a detailed report to the Chairman of the Sri Lanka Ports Authority, alleging that the SLFP Trade Union in the Colombo Port - the Sri Lanka Nidahas Sevaka Waraya ( Pvt) Ltd ( which has been registered by the Registrar of Companies under the Registration Number 63912) has signed a Memorandum of Understanding with a leading beverage company, awarding a contract to the company, providing the company a monopoly of supplying soft drinks to the Galle Face Green and all the SLPA canteens
The report also said that the company has paid a gratification of Rs 3 million per annum for five years to the SLFP Union for the monopoly of supplying this brand of beverage for Galle Face Green and Rs 2.5 million per annum for the monopoly supply of this beverage to all the SLPA canteens.

The Memorandum of Understanding which has been signed between the SLFP Port Union - the Nidahas Sevaka Waraya (Pvt) Ltd (which is in possession of this newspaper) also says... ( interalia) that the five year contract will begin from 21 June 2010 and where the second year of the contract will begin on 21 June, 2011 and that the trade union will provide the company with the exclusive rights for branding the 39 or more outlets depicting monuments within the Galle Face Green and also ensuing that NSW undertakes to prevent either directly or indirectly any other product that competes with the company being sold or promoted or exhibited within the Galle Face Green during the entire period of the Agreement.

The report also said on page 5 under Clause 6, under obligations, the company shall pay to NSW, by way of cheque drawn in favour of NIDAHAS SEVAKA WARAYA (PRIVATE) LTD (NSW), put up suitable kiosks for all outlets by ensuring the safety and supervise regularly performance of the outlets and operations.

On the same page, under confidential information, Clause 8.1 says "NSW undertakes to keep confidential information in strict secrecy during the currency of the agreement....
There is also evidence in the report that the company has paid a sum of Rs 3 million to NSW by Cheque No. 969217 on 18 July, 2011 and further Rs 2.5 million by the same bank and same branch via cheque No. 114722 on 16 March, 2011.
The report of the Auditor General's Department also alleged that NSW has also procured illegal contracts to the tune of Rs 30 million for the demolishing of buildings which were even outside the Port premises!

It was also alleged that NSW had been the beneficiary of the revenues which had been earned through the operation of a yacht service within the premises of the Trincomalee Port, for the benefit of tourists, when the real beneficiary should have been the Sri Lanka Ports Authority (SLPA).

The report also said there has been a further income of Rs 11.6 million (Rs 11,652,851) which has been earned from the lease of the Galle Face Green, incomes which have been made from the sale of parking tickets and also from the trade stalls and tourist vehicles and others, while there had also been an expenditure of Rs 17, 744, 275. There has not been any evidence of these revenues and expenditures. It has also been pointed out in the report that it was illegal for a privately registered company to draw incomes which should have been accrued to the government.

The report of the Auditor General's Department says that this union, while pruning down the welfare benefits of the employees had also engaged in these illegal practices as well. This agreement with the company has been signed by the union without the prior approval of the SLPA Management and the Board of Directors whereby the monopoly has also been illegally given to the company.
The report also points out that these employees have no right to enter into such agreements without the prior approval of the management while being permanent employees of the SLPA. The report also says that no State institution signs monopoly agreements with any private organization which will restrict the consumers' rights.

SLPA Chairman's reply
Former SLPA Chairman Dr. Priyath Bandu Wickrama, in his reply to this letter from Audit Superintendent R. G. Hettiarachchi of the Auditor General's Department says that he has sought advice from the Attorney General's Department and has requested him to inform the SLPA Chief Legal Officer on the due process of recovering these monies.
The former SLPA Chief, in his reply has also said that he has directed the Chief Legal Officer to determine whether legal action could be taken for the recovery of revenues which have been earned from the Seruwila 2 yacht.

NSW Chairman, Working Director charge-sheeted
The Chairman of the NSW, Prasanna Kalutharage, who was also the SLPA Working Director at that time, has been charge sheeted by the SLPA Chief Manager (Administration) R.A.M.S. Ratnayake, asking him to show cause as to why disciplinary action should not be taken against him in accordance with the charges levelled against him with the charge sheet dated 5 November, 2013 which this newspaper is in possession of.