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Large-scale public investment projects
Rs. 200m. minimum capital on local agents

Large-scale public investment projects
Rs. 200m. minimum capital on local agents
By Lishanthi Siriwardene

The government has decided that local agents of foreign bidders for future multi million rupee public investment projects should be confined to those with a market capitalisation of over Rs. 200 million in the Colombo Stock Exchange.

Mr. Dixon Nilaweera in a public finance circular sent to all secretaries and heads of departments last month has said that any foreign investor or contractor bidding for such government projects should enter into a valid agency agreement with a local company listed on the Colombo Stock Exchange where the market capitalisation of the listed company should not be less than Rs. 200 million.

Local entrepreneurs point out that this would limit the local agents qualified to bid for the said projects to a very limited ‘club’ because only the big companies listed in the stock exchange could qualify. There were many local agents to reputed international companies who would be shut out by this regulation, sources said.

This decision was approved by the cabinet last month, infromed sources said.

The circular titled ‘New procedures applicable to international companies bidding for large scale government tenders and BOO/BOT projects’, says that unless a valid agency agreement with a listed company is submitted for scrutiny by the relevant CANC or Cabinet Appointed Tender Board (CATB) for the evaluation of a bid relating to a BOO/BOT project or a public investment contract, an international company would not qualify for participating in the bidding process.If necessary, the CANC or CATB would have the right to obtain the opinion of the Attorney General with regard to the veracity of the agency agreement.

As far as tenders and BOO/BOT projects floated by the Port Development, Rehabilitation and Reconstruction Ministry for the port sector, the Transport and Highways Ministry for the road sector and the Irrigation and Power Ministry for the power sector are concerned, the above stipulation shall apply with immediate effect for all projects and tenders where the value is in excess of Rs. 250 million, the circular added.

With regard to tenders and contracts floated by other Ministries such as Defence and Transport (excluding roads), the requirement that international companies enter into valid agency agreements with listed companies when bidding for contracts/tenders in excess of Rs. 250 million shall take effect from October 1, 1998, the circular further stated.

A government memorandum in this regard signed by President Kumaratunga in her capacity as Finance and Planning Minister says that over the next 2 years the government intends to undertake several large public investment projects in infrastructure as well as projects with private investment on a BOO/BOT basis. Some of these projects include the Colombo/Katunayake expressway, Southern expressway and the Galle harbour development project to be carried out as public investment programmes and power projects with both public and private investment. In view of the large expenditure involved and the fact that very often extremely complex negotiations are involved in the structuring of these projects financially and otherwise, it’s important that the local agents of companies bidding for such projects do not unduly influence public officials or resort to corrupt practices in concluding deals, which at times are unfavourable to the government, the memorandum added.

The Public Finance circular explains that the justification for public listed companies representing reputed international suppliers, contractors and investors is that they are compelled to operate more transparently than an unlisted private or public company and with greater degree of accountability towards shareholders.

Public listed companies are required to comply with the continuing listing requirements of the Securities and Exchange Commission including regular financial disclosures.

Moreover the benefits of such alliances would accrue to a large number of domestic shareholders as shares of listed companies are more widely held than unlisted companies.

These provisions will be applicable to tenders already called but not closed in port, road and power sectors. Therefore, with regard to tenders falling into these categories immediate action should be taken to issue an addendum embodying this requirement and if necessary closing date of tenders may be extended to fall in line with tender requirements.

These proposals are intended to benefit the national economy by obtaining the best possible terms from the bidders and benefits to local companies and their shareholders, the circular added.


No confidence motion on Minister Samaraweera today
by Prasad Gunewardene

When parliament meets this morning, UNP National List MP, Dr. Rajitha Senaratne will move the motion of No-Confidence on the Minister of Post, Telecommunications and Media Mangala Samaraweera on the credit card issue.

Parliament sources said that Dr. Senaratne will open the debate for the Opposition while Minister Samaraweera would wind up on the motion brought against him.

The motion is signed by UNP MPs, Dr. Senaratne, Kabir Hushain, Mervyn Silva, Tyronne Fernando, Joseph Micheal Perera and W. J. M. Lokubandara.

The motion against minister Samaraweera is as follows:

"No Confidence in Hon. Mangala Samaraweera, Minister of Posts, Telecommunications and Media, — that whereas the Hon. Mangala Samaraweera, Minister of Posts, Telecommunications and Media, has under the pretext of needing a Credit Card to defray his official expenses while abroad, obtained a Credit Card through Sri Lanka Telecom Ltd. an institution under the purview of his Ministry in contravention of the Government's Financial Regulations and Finance Ministry Directives;

And whereas the Hon. Minister has utilized the said Credit Card for the purchase of personal items of clothing and to pay for the purchase of Duty Free Liquor and Tobacco and Hotel and Restaurant bills, all incurred locally and not official expenses while abroad, as apparent from the monthly statement of the said Credit Card;

And whereas the said Credit Card has also been used to pay for the viewing of obscene material on the Internet;

And whereas the Hon. Minister has deceived the public by first stating that the said monthly Statement was incorrect and then stating that his Credit Card has been utilized by some person without his knowledge;

And whereas a sum of over Rs. 270,000 incurred on account of the said Credit Card has been paid for through the personal funds of the Chief Executive Officer of Sri Lanka Telecom Ltd;

And whereas the aforesaid conduct of the Hon. Minister is an abuse of power and results in gross subordination by the Hon. Minister of his official status and functions and duties to an institution under the purview of his Ministry;

And whereas the Hon. Minister has acted contrary to all norms of decency and propriety, especially for one holding the high office of a Cabinet Minister of the Government;

And whereas the Hon. Minister is thereby guilty of immoral and improper conduct and behaviour in his official capacity;

It is resolved that this House has lost confidence in the ability of Hon. Mangala Samaraweera to continue as a Minister of the Government of Sri Lanka".


37 Tigers, 15 soldiers killed in fierce fighting in Mankulam

At least 37 terrorists and 15 soldiers were killed in fierce fighting near Mankulam in the early hours of yesterday. Operational headquarters of the Defence Ministry in a communique issued yesterday evening stated that terrorists launched a heavy attack on the western forward defence line of Mankulam Sunday (2).

According to the statement troops have repulsed the attack killing 37 terrorists. Sixteen bodies of Tigers have been recovered along with 18 T-56 assault rifles, three light machine guns and two GPMG weapons.

Fifteen soldiers have been killed and 16 seriously wounded.

The government on June 5 re-introduced censorship after troops of Operation Jayasikuru resumed their assault on Mankulam.


Efforts to resolve 'go slow' at Air Lanka catering services
Kalinga K. A. Weerakkody

Air Lanka Management and the trade union of the airline's catering service were yesterday conferring to resolve the on-going 'go slow,' a senior Air Lanka official said.

Catering service employees launched the 'go slow' last Saturday following a dispute over the interdiction of the Secretary of its trade union some months ago. The union is demanding that he be reinstated, if not charge sheeted.

According to a union official the management had finally agreed to hold a meeting with the union leaders regarding their demand yesterday.

Meanwhile Air Lanka in a statement said that the work-to-rule by Air Lanka Catering Services (ALCS) employees caused one to three hour delays of Air Lanka flights yesterday. In a statement Air Lanka said ALSC employees are carrying on an unofficial work-to-rule which is affecting catering uplift of flights operating out of Bandaranaike International Airport, Katunayake.

The management of ALCS attempted to contact ALCS union officials over the weekend to resolve the issue, but these officials would not make themselves available.

Air Lanka has advised other airlines operating out of Katunayake to make alternate arrangements for catering, until the matter is resolved.

Attempts by ALCS to meet union officials continue and the airline is hopeful that the matter would be resolved soon, the statement added.


Speaker turns down Bribery Commission members' application

The Speaker of Parliament last week turned down an application submitted to him by the two members of the Permanent Commission to Investigate Bribery and Corruption, "The Island" learns.

The application called for the withdrawal of Professor G. L. Peiris and Minister Jeyaraj Fernandopulle from membership of the Select Committee, appointed to inquire into certain allegations made by some government group Members of Parliament, against the said two commissioners.

During the second quarter of this year, around eighty government group MPs submitted a motion to the Speaker, K. B. Ratnayake, calling for the removal of the two commissioners. The Parliamentary Select Committee was appointed in response to that motion.

Last Monday the two commissioners submitted their answer to the Speaker K. B. Ratnayake, who had on Thursday, noticed the commissioners to come before the Select Committee, on August 12, in the afternoon.

The Select Committee comprises nine parliamentarians -- five from the government group and four from the opposition group. Minister Dharmasiri Senanayake is the chairman. The other members are C. V. Gooneratne, M. H. M. Ashraff, G. L. Peiris, Jeyaraj Fernandopulle, Ronnie de Mel , John Amaratunga, Tyronne Fernando and Sam-bandan.

The lawyers, watching the interests of the commissioners are President’s Counsel Tilak Marapana, President’s Counsel Shibly Aziz, Dulinda Weera-sooriya, Nalin Ladu-wahetty, Jayantha Fernando, Anuja Premaratne and Dham-mika Jayanetti, instructed by Dhammika D. Yapa.

The respondent commissioners are, chairman, T. A. de S. Wijesundera, retired Supreme Court Judge and member Rudra Rajasingham, retired IGP.

The Bribery and Corruption Act provides that the commissioners could be removed by majority vote in Parliament, for proven misconduct and/or proven incapacity.


Ten Tiger suspects held for Negombo blasts
by Wimal Keerthi

NEGOMBO - Ten terrorist suspects have been arrested for their alleged involvement in four bomb attacks in the Negombo police area.

Arrests were made this week on information provided by terrorist suspects, Jeevan (18) and Thambiraja Kamalanathan (21) of Batticaloa involved in a series of attacks on CEB and Telecom facilities in the Gampaha police division. They were arrested near the Kadawatha Mobitel Tower with three kilos of high explosives on July 27.

Police said that they revealed the involvement of persons arrested in Negombo.

Suspects arrested at Negombo have been employed at jewellery shops.

All of them are from Batticaloa. Police said that the suspects were allegedly involved in bomb attacks on Railway Department property and the June 8 destruction of a CEB transformer at Daluwa-kotuwa.

Their attack on fuel depot on June 9 failed. Police said they were also involved in the attempt to blast a transformer at Wellaveediya.

There was evidence to suggest that bombs used in the attacks have been assembled in the jewellery shops where they were employed at.


Four cops injured in LTTE shooting

KATTANKUDY One policeman was seriously injured while three other PCs escaped with minor injuries when LTTE cadres fired at them along Kovil Road in the 2nd division in Kalmunai last week, police said.

The four armed policemen had been on cycle patrol one morning and confronted the occupants of three wheeler that came from the opposite direction.

Both policemen and three LTTE cadres who were occupants of the three wheeler opened fire on each other resulting injuries to both sides.

The seriously injured policemen identified as one Abdul Thai of the Kalmunai police was taken to the Ampara base hospital where he was warded.

The three wheeler which was abandoned by the LTTEers was taken into custody and identified as one belonging to Yogarajah Periathamby bearing registration number 17-1309.


14 TELO members to be sworn-in to Jaffna local bodies
By Franklin R. Satyapalan

The Tamil Eelam Liberation Organisation (TELO) swears-in 14 of 18 members elected to local bodies in Jaffna peninsula almost six months after the polls were concluded on January 29th 1998, TELO sources said.

TELO leader M. K. Sivalingam assumes chairmanship of the only council — Valvettithurai UC — that TELO could muster a majority in the polls to 17 local bodies in the North, TELO sources said.

On July 29th 1998 almost six months after the polls TELO leader M. K. Sivalingam was sworn-in as chairman, while TELO’s S. Santhirasegaram as Vice Chairman and R. Kumarasingham, J. A. Peter and S. Gunasekeran as councillors of Valvettithurai Town Council.

On July 29 their names were sent to Elections Returning Officer in Jaffna district for gazetting and the council was to meet before August 10.

The following TELO members were sworn in Rasadhorai Jeyarajah and Arulananthan Anton Yogarajah to Valikamam South West PS which is controlled by the EPDP.

S. Shanthakumar and V. Vasanthan TELO members were sworn in to Valikamam East Pradesiya Sabha also under the controlled EPDP.

K. Pathmasirithar and K. Rasalingam of TELO were sworn in to Vadamarachchi South West PS (Karaveddy). A. Suresh of TELO to Nallur PS and N. Ganeshwaran to Chavakachcheri PS.


Tiger leader sent on hill country survey mission in police net
By T. Chandrasekera

A well trained Tiger leader who had arrived in the hill country to carry out surveys in order to plan attacks had been captured in a joint operation by Badulla and Lunugala police.

The Tiger leader taken into custody had revealed that another 10 Tiger cadres had come along with him and that they were said to be engaged in carrying out surveys in the hill country and Colombo with intent to plan attacks.

But the Tiger suspect had informed the police that he would not be able to identify anyone of them as their identities were not known to him.

Police had also recovered two faked identity cards as well as a faked certificate of birth found in possession of the Tiger suspect.

He had also admitted to the police that his organisation had given him instructions to purchase a trade stall in the Kandy area for which the organisation would provide rupees one million so that such a place could be utilised as headquarters in the hill country for LTTE operations.

Further investigations are being carried out by Badulla and Hunugala police.


Another case of cholera
by Indira Perera

Another positive case of cholera has been detected from the Colombo city. According to the Dr. S. Kariyawasam, Assistant Chief Medical Officer of the Colombo Municipality. This case has been detected from the Henemulla camp area in Mattakkuliya. The victim was first admitted to the Colombo National hospital and later transferred to the Infectious Diseases Hospital (IDH) at Angoda when tested positive, Dr. Kariyawasam told 'The Island'.

Scores of cholera positive cases have been recorded since January this year from several parts of the country. Dr. Kari-yawasam said that the house and the surrounding area has been disinfected in addition to the precautions normally taken by the CMC.


Malpractices Probe
I was unaware that the site was a JH one till I saw it
- GMR
By Indika Wickramaratne

The witness under cross examination W. K. B. Weragama, present General Manager Railways (GMR) said he was unaware that the project in Kuala Lumpur was a John Holland site, until he was taken to see it.

He said so while giving evidence before the Special Presidential Commission of Inquiry appointed to inquire into alleged malpractices in public bodies.

The Commission comprises Justice Priyantha Perera, Judge of the Supreme Court as Chairman and Justices Hector Yapa and Ninian Jayasuriya, Judges of the Court of Appeal.

Former GMR P. W. A. K. Silva is the party noticed in the inquiry. Mr. Silva who served as GMR from 1991-1994 was accused of misuse of power during his term of office. He has been required to show cause as to why he should not be found guilty of misuse of power for certain acts in respect to transactions related to the establishment and functioning of a concrete sleeper manufacturing plant by John Holland International Ltd. of Australia.

Ranjith Abeysooriya PC with Ms. Priyadarshani Dias instructed by N. Sambandan appeared for the party noticed.

Additional Solicitor General Saleem Marsoof PC with W. Mallalgoda, Senior State Counsel assisted the commission.

S. K. P. Bambarande is the secretary to the commission.

The Commission resumed proceedings at the Superior Courts last Friday (31).

Witness was shown fax, dated 24 August ’89 sent by Mahinda Seneviratna to John Holland (JH) requesting JH transmit by telegraphic transfer the cost of two tickets (Mr. and Mrs. Weragama) to Brisbane, Australia to attend the conference. The money was required to be sent to Gabo Travels. A copy of the itinerary was annexed.

Counsel: Is it your position that the request made in this document is false and that you were completely unaware of this request made to JH ?

Witness: Yes. As far as I know, I was offered a place to go for this seminar by the Australian High Commission. It was conveyed to me through the GMR. Subsequently I filled up a registration form and later I was informed by the Australian High Commission to collect the tickets from Gabo Travels.

Chairman: Did you know who was financing it ? -- No.

Q: Throughout the course of your evidence it has been the position of the party noticed that your trip to Brisbane was actually financed by JH. It was also suggested that it was at your request that your wife’s ticket was arranged by JH ? -- That was the allegation made.

Q: Have you made any effort to find out who actually financed your trip ? -- I did try to find out, but there was no success.

Chairman: It was the High Commission that handled the arrangements, but you did not know who financed it ? -- Yes

Chairman: Was there a reason for you to investigate into the financing of the trip ? -- No, because the High Commission had already had some correspondence with the Railway with regard to the concrete sleeper project.

Justice Jayasuriya: When you went to Australia did you meet JH representatives ? -- Not during that visit. I met them in Malaysia.

Justice Jayasuriya: What did they tell you ? -- I was taken to a track renewal site in Kuala Lumpur, which happened to be a JH site. Subsequently when I came back, they had sent a letter saying that they are prepared to help us in the planning and implementation of the concrete sleeper project. The letter was sent to me for my comments.

Justice Jayasuriya: In your observations you made a strong recommendation against that ? -- Yes

Chairman: In Malaysia when you were taken to the site and you found out that it was a JH project, did you have any suspicions ? -- To some extent. It was the Australian High Commission that financed my trip and they said there was an air strike in Australia and since there were no direct flights I had to go through Malaysia. They said on my way I can drop in at Kuala Lumpur and visit the track renewal site. At that time I did not know it was a JH site.

Chairman: Did you at any stage think that there was an ulterior motive in you being taken there ? -- That was the reason that when I came back and this letter was submitted to me, I recommended against it.

Justice Jayasuriya: You don’t know how JH reacted to the recommendation ? -- No

Q: Ordinarily to go to Brisbane it is not necessary to go through Malaysia ? -- Yes. I was told that because of the air strike there were no direct flights.

Q: You were told by whom ? -- The Australian High Commission.

Q: Your position is that until you were taken to the site in Malaysia, you did not realise it was JH laying the track ? -- Yes.

Q: I am suggesting to you that before you left Colombo, you were informed that you were being taken to Kuala Lumpur, specifically to see the JH site ? -- I refute that.

Witness was referred to letter dated 26 July, ’89, sent by the Marketing Officer of Aus Trade to the Secretary, Ministry of Transport. The letter indicates an interest in expanding the scope of JH work in Sri Lanka. An annexure was included as a ‘gesture of goodwill’.

Q: Doesn’t the preparation of the annexure indicate that at that stage JH was interested in the future of track development in Sri Lanka ? -- Yes

Q: That is why they wanted you to see the site in Malaysia.

Justice Jayasuriya: Did JH ever say that ? -- No, it was the Australian High Commission that wanted me to see the site.

When questioned as to whether he had any knowledge of the contents of the communication sent by JH which was submitted to the commission by Romesh De Silva, PC, the witness said he had no knowledge of its contents.

When questioned by the Commission, counsel for the party noticed stated that he wished to mark the document, submitted by Romesh De Silva, unconditionally and not on the basis of subject to proof.

The commission stated that before it admits the document, irrespective of the technical rules of evidence, the authenticity and genuineness of the document and the accuracy of its contents must be ascertained. The Commission further stated that although according to Section 7, sub section D of the SPC of Inquiry Act, the Commission can admit documents which are not in strict compliance with the provisions of the Evidence Ordinance, a distinction must be drawn between the technical rules of evidence and the basic concepts and principles which pertain in the field of law of evidence.

The Commission stated here that they were concerned with one of the basic principles of the law of evidence. The question was, can an outside party by retaining counsel from the unofficial Bar tender documents to court, not through a witness, but by counsel documents and also move that those documents be adopted as part of the evidence of the Commission. The Commission stated that if the application to mark the document unconditionally is allowed, they will be unable to ascertain the authenticity and genuineness of the documents and would not be able to assess the accuracy of its contents

Therefore the application of the counsel for the party noticed to mark the JH communication, submitted by Romesh De Silva, PC, unconditionally was overruled and rejected.

The Commission is proceeding.


Unremovable sticker to identify vehicles from East
by Franklin R. Satyapalan

All vehicles leaving the East for other parts of country will have a special sticker pasted on the windscreen for identification for security checks.

This sticker is specially made so that it cannot be removed once pasted. It will be pasted by the army at all exit points from the East, security sources said.

As the LTTE is planning to infiltrate the city and suburbs with bomb laden vehicles and investigations had revealed that most of these deadly vehicles had earlier emerged from the East, security forces are to adopt this measure to identify all vehicles coming from East, the sources said.


Forgery seals seized
by Norman Palihawadane

Pettah police raided a house in Gunasinghepura, yesterday and seized a large stock of spurious documents used to issue forged national identity cards, birth and death certificates. Two suspects were also taken into custody in this connection, police said.

Among the items seized by the police were two fake rubber stamps bearing the name and designation of Assistant Government Agent, Kilinochchi and Police Headquarters.

Police believe that this mini Kachcheri had been in operation for a considerable time.


B'caloa MC Commissioner's mother-in-law’s thalikodi snatched
By Franklin R. Satyapalan

An unidentified armed youth who went in search of Commissioner of Batticaloa Municipal Council on Sunday evening got away after snatching the thalikodi of his mother-in-law, police sources said.

The Commissioner S. Navaneethan lives along Barathi Road in Batticaloa town and an unidentified armed youth alleged to be brandishing a pistol had gone to the residence of the commissioner and called out for him and when his mother-in-law came out to answer his call as the commissioner was out, the caller had asked whether commissioner's wife was at home and when her mother replied in the negative the youth had snatched her thalikodi and fled the scene of incident.

Further investigations are being conducted by HQI Batticaloa Chief Inspector Rohan Upasena, police said.


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