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CBK in controversial lease deal

Evidence has emerged that President Chandrika Kumaratunga has taken on rent a five-story building at Janadhipathi Mawatha without following any formal tender procedure or seeking a valuation from the government Valuation Department on the going rates in the area. It is learnt that President Kumaratunga personally inspected the Hatton National Bank (HNB) building soon after the general election of April 2, and immediately ordered that it be leased out to house the Public Security, Law and Order Ministry.

An advance of nearly Rs. 16 million was paid to the bank which had for several months been trying to dispose of the property without much success due to the tight security in the area.

The building is owned by HNB. The bank had been looking for a tenant after having shifted a section of its head office and international division out of this building one year ago to Darley Road. Numerous corporations had been approached in writing by the bank who had stated the building was on offer for rent or lease.

The building stands on Janadhipathi Mawatha directly opposite the President's House and is attached to the Standard Chartered Bank. It is a relatively new building fully equipped with air conditioning and all other amenities.

A senior bank official confirmed that Kumaratunga had indeed personally viewed the property and approved that it be leased for a period of one year for a rental exceeding Rs. 1 million per month. A sum of nearly Rs. 16 million has already been paid as one year's rent in advance to HNB by the Ministry.

 Bank officials maintained that Public Security, Law and Order Ministry Secretary, Tilak Ranaviraja handled the entire transaction with the bank. Ranaviraja however refused to come to the phone when contacted while the chief accountant at the Ministry, S. R. Rajapakse said he knew nothing of the transaction. Rajapakse instead asked us to clarify the matter with Senior Assistant Secretary Administration, Marina Mohamed. Mohamed however rudely hung-up when spoken to, saying, "I have been told not to say anything about this. you ask the Secretary."

The government last week accused former Commerce and Consumer Affairs Minister, Ravi Karunanayake of taking on lease a building owned by an UNP MP Abdul Cader at a value higher than that estimated by the government valuer without calling for tenders and sought to move for his arrest. However, it is revealed that the Commerce Ministry had at the time called for tenders and the offer of Cader was the lowest of the five received and that the Minister had in writing requested the Ministry Secretary, Harsha Wickremasinghe to negotiate a price even lower from the lowest bidder.

UNP MP Rajitha Senaratne charged yesterday that in contrast, the President had neither called for tenders or a valuation before taking on lease the building at a rental of nearly Rs.16 million per year in an area the prices are depressed due to security considerations.

He also pointed out that it is well known that her senior adviser on foreign investment, Harry Jayawardena is a key player of HNB. "We intend lodging a complaint on this transaction and hope police officers will move as speedily to charge the President," he said.

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