Hambantota Port project faces suspension
The Hambantota Port Development Project is
facing suspension by end of September as a
result of a serious cash flow crisis due to
the government's failure to pay the
contractor his dues.
The government owes the contractor, China
Harbour-Sinohydro Consortium US$ 117mn for
the work completed but is yet to make
payment despite repeated appeals, it is
learned.
On September 3, the China Harbour Consortium
wrote to Ports Minister Chamal Rajapakse
they will be compelled to suspend work on
the project by September 30 unless the US$
117 million (approx Rs. 12.5 billion) due is
paid.
The Consortium while thanking the Minister
for his support and assistance to the
project has said they will 'be compelled to
suspend work if the outstanding amount due
to
China Harbour
is not made available to us by 30th
September 2008.'
The letter was copied to the Ambassador to
China in Sri Lanka, Ambassador of Sri Lanka
in China, Finance Secretary P.B. Jayasundera,
Foreign Secretary Palitha Kohona, Ports
Secretary Thosapala Hewage and Vice
Chairman, Ports Authority, R.M.P.B.Wickrema.
The local agent for the Consortium is
businessman Prabath Nanayakkara who is also
the agent for the Colombo-Katunayake
expressway.
"Since His Excellency the President unveiled
the commencement plaque at the inauguration
ceremony last October, the construction
works have been proceeding according to the
planned schedule and we have achieved an
operational output of US$ 60 million..," the
letter states.
The Consortium has added they have completed
100% of the mobilisation and preliminary
works, 85% precast element construction, 85%
cofferdam construction,10% Breakwater
construction and 5% Harbour Basin Excavation
construction.
It has further stated that pursuant to the
contract the Contractor should be entitled
to a 25% of the contract sum as advance
payment which amounts to approximately US$
90 million to ensure the smooth
implementation of the project.
"However we regret to inform that upto now
we have only received US$33 million. The
balance accumulated payments due to China
Harbour from the Employer amounts to US
dollars 117 million. As a result the
Contractor is now experiencing a serious
cash flow deficit and will be reluctantly
compelled to suspend work if this problem is
not addressed as a matter of priority," the
Consortium has written.
The letter also said, "China Harbour have
made every effort to achieve the current
progress and have made considerable
investments in equipment and other resources
and are not in a position to shoulder this
burden of a cash flow deficit any longer.
Therefore we wish to inform that we will be
compelled to suspend work if the outstanding
amount due to China Harbour is not made
available to us by September 30 , 2008."

Rs 450 million assets case
Bribery Comm grills Nation Building Minister
The Bribery Commission yesterday grilled
Nations Building Minister
RohithaAbeygunawardene over an Assets
investigation involving nearly Rs
450million.
It is learned the Minister's statement was
recorded by Sub Inspector Ranatunge at the
Longden Place headquarters of the Bribery Commission.
The Minister faces allegations of amassing
assets valued at nearly Rs 450million which
are unaccounted for. It is alleged the
Minister who isnicknamed 'Raththaran' has
not submitted an assets declaration since
entering Parliament in the year 2001.
There was no information available whether
he pays income tax or has a tax file in the
Inland Revenue Department.
The Minister told The Sunday Leader last
month when questioned on an assets probe
against him that there was no such probe and
that he had never been summoned by the
Bribery Commission to make a statement.
The Sunday Leader reported at the time the
Minister had sought postponements on two
occasions when summoned by the Commission.
It was also reported that the Minister was
given a final date in September to come
before the Bribery commission to record a
statement.
The recording of the Minister's statement
also comes in the backdrop of
allegations by previous investigating
officers that there were attempts to stifle
the investigation by those in authority.

Govt. disowns Rajiva's
attack on UNSG
The government last week informed UN
Secretary General Ban Ki-Moon that comments
made against him by the Peace Secretariat
Chief and Secretary, Human Rights Ministry,
Rajiva Wijesinha did not reflect the views
of President Mahinda Rajapakse or that of
his administration.
The disassociation and an expression of
regret was communicated to the UN Secretary
General through the Head of the Sri Lankan
UN Mission in New York, H.M.S. Palihakkara
last week after Wijesinha launched a
scathing attack on Moon.
Wijesinha's attack came after the UN
Secretary General made a statement on the on
going fighting in the north and the need to
ensure the protection of civilians in the
conflict zone.
Wijesinha in his response while criticising
the UNSG for making wrong statements on the
conflict had said of Moon that 'perhaps with
knowledge will come wisdom.'
Informed sources said President was visibly
angry at Wijesinha's attack on the UNSG and
called for the statement, which was posted
on several Government websites to be
withdrawn.
The President also issued a directive for
Ministry Secretaries not to make public
statements without proper authorisation.

President stays
increase in retirement age
President Mahinda Rajapakse has decided not
to increase the retirement age of public
servants to 63, The Sunday Leader learns.
Informed sources said a proposal was mooted
by Public Administration Minister Karu
Jayasuriya to increase the retirement age of
public servants to 63 years in keeping with
worldwide trends but the President has
decided not to proceed with the
recommendation at this point of time.
It is learned the proposal was for the
President in his capacity as Finance
Minister and Jayasuriya as Public
Administration Minister to submit a joint
cabinet memorandum recommending the new
retirement age.
The President it is learned had taken the
view the implementation of such a proposal
will lead to protests from trade unions and
also stall the promotion prospects of other
public servants.
The sources also said the President took the
view such an amendment would need a two
third majority in Parliament and enabling
legislation to increase the retirement age
of judges and that this was not the
appropriate time to do so.
The retirement age of a High court judge at
present is 61 years while an Appeal Court
judge's retirement age is 63 and that of a
Supreme Court judge 65 years.
The sources said if the retirement age of a
High Court judge is to be 63 years,
adjustments would also have to be made for
Appeal Court and Supreme Court judges and
the Government was not in a position to go
through such a process at this time.

1229 'true cases' of
abductions in 2007