Archives

by Uditha Kumarasinghe and Rajmi Manatunga

Opposition Leader Mahinda Rajapakse yesterday called upon the government to cancel the divestiture of the cluster bus companies to Ibis and confiscate the bid bond submitted to the government by the investor.

Addressing a press conference organised by the CTB Joint Front of Trade Unions (JFTU), Rajapakse said the only option left for the government regarding the companies now was to call off the deal which he said was non-transparent and fraudulent.

"Nowhere in the world has there been a privatisation process which was carried out in such an irresponsible manner. We do not believe that privatisation is the solution for the crisis in the transport sector. If the government truly wants to uplift the state transport sector, it should collaborate with the employees and restructure the management of the CTB," he said.

The Opposition Leader said it was never the policy of the People's Alliance to privatise services carried out by the State such as transport and education.

"A government cannot make profits by providing services to people. In 1994 we took steps to revive the CTB by adding 6,000 buses to the fleet. The present regime has not taken any steps to improve on the progress but tried to sell it to the private sector instead," he said.

MP Dinesh Gunawardene said the government disclosed that Ibis has agreed to pay the money on February 13. However, the Ibis has again shirked paying this money. Again they have asked for time to pay this money.

He said the PA will force the government not to grant this loan from the Treasury. This clearly indicates that this company has no money to purchase these shares without government surety. But when the tenders are called, the Government has not given such an assurance to this company.

"This is an illegal act which is totally against the decision taken by the Cabinet. The government has never agreed to give a guarantee to Ibis. Therefore, the PERC or Treasury Secretary cannot violate this Cabinet decision," he said.

Gunawardene said if this was done, it would be the first time in Sri Lanka that government funds are given to a private company to purchase the shares of a State institution. This would turn the Government into a debtor.

He said the government should immediately cancel this bond and recover the five per cent bid bond deposited by the company. The government should recall tenders for this purpose. The Government should also cancel the tenders called to sell the shares of other bus companies, he added.

JFTU Chairman Somaweera Chandrasiri said they will take legal action against the government if it chooses to continue with the divestiture without allocating the employees their due shares.

"It is illegal to give the shares and management of the companies before the investor submits the total value. But the government is not acting according to these conditions," he said.

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