Rs 1.5 bn Lotus Tower, Customs Hq. land transactions yet to be finalised; COPE stresses need to streamline procedures

By Shamindra Ferdinando

The Committee on Public Enterprises (COPE) has told the Sri Lanka Ports Authority and Sri Lanka Customs to regularize two land transactions worth over Rs. 1.5bn. COPE Chairman Prof. Charitha Herath has advised SLPA Chairman Dr. Prasantha Jayamanna and Director General Customs Maj. Gen. G.V. Ravipriya (retired) to take immediate steps to validate the agreements in respect of the Nelum Tower and Sri Lanka Customs headquarters.

The COPE took up the issue when the SLPA top management appeared before the parliamentary watchdog committee, recently. DG Customs participated in the proceedings in his capacity as a member of the Board of Directors of the SLPA.

Prof. Herath has stressed the importance and the responsibility on the part of all state enterprises and institutions concerned to rectify the shortcomings pertaining to these high value transactions.

Auditor General W.P.C. Wickramaratne has been present on the occasion. The proceedings revealed that in spite of the completion of the Customs complex at a staggering cost of Rs 4 bn in May 2012 those in authority hadn’t bothered to finalize the payment for the land. The COPE has been told the Customs haven’t paid Rs 947.5 mn for 2 acre land belonging to the SLPA utilized for the construction.

Dr. Jayamanna said that at the time the SLPA land had been handed over to the Customs all concerned parties believed the SLPA could swap it with a block of land belonging to the Customs. But, later, that land, too, had been identified as SLPA property, Dr. Jayamanna said. The disclosure made Prof. Herath to ask DG, Customs to formalize the matter in consultation with relevant authorities.

Prof. Herath asked the SLPA to either obtain money for 2 acre land estimated to worth Rs 604.5 mn from the UDA that handled the Nelum Tower project or finalise the transaction in a suitable way. Asked whether the SLPA preferred money or shares of the company managing Nelum Tower, Dr. Jayamanna said that they have discussed with the UDA the possibility of swapping D.R. Wijewardena Mawatha land where Nelum Tower was built with UDA land also estimated at Rs 600 mn at the Bloemendhal Road. When the COPE was told the UDA hadn’t decided on the swap, Prof. Herath asked the SLPA to finalise the transaction by perhaps obtaining money for their land.

Dr. Jayamanne has pointed out that in case they go ahead with the swap of D.R. Wijewardene Mawatha land with that of UDA’s at Bloemendhal Road, the UDA would have to make a payment, too, in line with the valuation of the land.