KMC to re-take
disputed car park
In another twist to the already controversial
car park complex, the Kandy Municipal Council (KMC)
decided to retake control of the multi-storeyed complex
in the heart of the town within 14 days after the company
that was awarded the tender to run it breached the contract.
But the private company which had
taken over the management from the KMC accused the KMC
of violating the contract.
The decision to acquire the complex
was reached at a special KMC meeting attended by 24
government and opposition members, Mayor L.B. Aluvihare
|Mayor L.B. Aluvihare
He said the company had breached the
contract and failed to pay the Rs. 27 million to the
However, Property Finance Investment
Company Chairman Tusitha Wijesena told The Kandy Times
that the decision to take back the car park was a political
move and said that the company had suffered losses amounting
to over Rs. 35 million after leasing the park since
last December, as many in the town had failed to pay
for the parking.
“The monthly losses are around
Rs. 4 million,” Mr. Wijesena said.
He alleged that it was the KMC that
had breached the contract.
|Company Chairman Tusitha Wijesena
“We have lodged complaints with
the Police with regard to those who have failed to pay
the parking fees and the KMC is bound to get that money
and give it to us,” he said, adding that the amount
due to the KMC was Rs.16 million and not Rs. 27 million
as claimed by the Council.
The contract has provision for the
KMC to withdraw from the agreement if the Company failed
to pay the due amount for two successive months, Mr.
Aluvihare said but Mr. Wijesena said they too could
sue the Council for violation of the contract.
The Mayor admitted it was not wise
to clash with the business community that had not only
supported him, but all Council members and said certain
decisions about the car park could not be implemented
as a result.
The complex was constructed at a cost
of Rs. 770 million with 80 per recent of the funds from
an Asian Development Bank loan. Although the complex
was meant to solve the city traffic congestion, it remains
underutilised with many people still preferring to park
along the roadsides.
Asked whether the Mayor would re-consider
withdrawing from the contract, he said if the company
promptly settled the due amount, he would re-consider