JVP alleges bouncing rubber robbery

Thirteen rubber estates covering an area of 20,000 acres have been subleased to a private company by the regional plantation company, without the approval of the Treasury, The Sunday Times learns.

Bogawantalawa Tea Estates Ltd, the regional plantation company which manages Bogawantalawa Plantations has leased the 13 rubber estates of the plantation to a private company called Lalan Rubbers Private Ltd. The Sunday Times learns that the move has not been approved by the Government which is the golden share holder of Bogawantalawa Plantations. Further it is not clear whether it is a lease agreement or a management operating agreement.

The clauses of the lease agreements between the Regional Plantation Companies and the Government, prohibit the sub lease or hiring out of any land belonging to the plantations to a third party without the approval of the Government. According to JVP MP Lakshman Nipunaarachchi who raised the issue at Ministry of Plantations Consultative Committee meeting, the estates have been under Lalan Rubber Company since 2003 when world rubber prices had picked up.

Another JVP member Sunil Handunetti who questioned the lease agreement said the management of Bogawantalawa Ltd had falsely claimed the 13 estates were making losses and had recommended to the management they be leased to a private company.

“The directors who claimed that the estates were making losses and who recommended the move are now working as directors of the said private company” said Mr. Handunetti. Further it was learnt that the company had evaded taxes due to the Government and that the employee shareholders of the plantation do not receive their share of profits from the plantation.

According to Plantation Industries Ministry Additional Secretary Y.J.Wijeratne the matter has been investigated by the Public Enterprises Reforms Commission and a report has been forwarded to the Attorney Generals Department. “We are waiting for advice from the Attorney Generals Department to act in the matter,” he said.