Ports Chairman misleads the Cabinet

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Created On Friday, 02 August 2013 07:52

Category: Exclusive

Minister in-charge of Port, President Mahinda Rajapaksa has on May 21st this year submitted to the Cabinet a Cabinet memorandum prepared by the Sri Lanka Ports Authority (SLPA) Chairman, Priyath Bandu Wickrema seeking approval for a project to develop the east terminal under the Colombo Port expansion programme.

Sources from the Ports and Highways Ministry say that the relevant Cabinet paper has resulted in a US$ 10 million fraud. The SLPA has sought Cabinet approval to utilize Authority funds to develop a 400 meter long anchoring point in the east terminal and to develop the terminal until a loan is taken under the variation order between the SLPA and Korea’s Hyundai engineering and Construction Company to develop the infrastructure of the Colombo Port expansion project.

It has been proposed to take the loan from Bank of Ceylon. The Cabinet had approved the memorandum since it was presented by the President with great urgency.

A letter sent by Hyundai Engineering and Construction Company to the SLPA board of directors on June 11, 2011 states that the project approved by the Cabinet would cost around US$ 60 million.

However, a letter sent by the SLPA Chairman to the Director General of the external Resources Department on August 16, 2012 states the project would cost US$ 70 million.

Nevertheless, the Cabinet paper submitted by the President on May 21, 2013 had sought approval for SLPA to take a loan of US$ 80 million from the Bank of Ceylon.

The senior official of the Ports and Highways Ministry who spoke to us said that the sudden increase of the project cost by US$ 20 million had taken place following a discussion that had taken place in January this year between SLPA Chairman Priyath Bandu Wickrema’s ‘collector’ Janaka Kurukulasuriya and officials of Hyundai Engineering and Construction.

When inquired about the increase in the project cots, the Korean company officials have said that Kurukulasuriya had asked them to give a new estimate by adding the extra monies to MP Namal Rajapaksa’s Tharunyata Hetak movement.

Kurukulasuriya functioned as the SLPA Chairman’s representative during the construction of the Hambantota Port and Defence Secretary Gotabhaya Rajapaksa later assigned him to the Urban Development Authority.

However, the Bank of Ceylon has still not released the loan of US$ 80 million to the SLPA and the Authority is carrying out the project with its funds until the loan is received, which has been approved by the Cabinet.

Officials from the Korean Company are to arrive in Sri Lanka on August 4th to discuss the future of the project and they are to meet with the President and MP Namal Rajapaksa as well.