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Govt. owes millions to contractors, suppliers but coffers empty
View(s):The Government owes millions to contractors and suppliers, but is unable to do so due to “insufficient funds”, affected parties said this week.
Among them are machinery suppliers and contractors who worked for the Sri Lanka Land Reclamation and Development Corporation (SLRDC) as well as members of the Ceylon Motor Traders’ Association. Payments effectively came to a halt after the election in January, they said.
“We are all suppliers and contractors registered with the SLRDC,” said H.D.R. Jayaratne, whose company, Jayaratne Construction, supplies machinery for land reclamation projects. “Some of us even supply grass sods for planting on reclaimed lands. Others are lorry drivers who transport earth.”
“Up to end-November, the SLRDC settled all their dues on time,” he continued, on behalf of the affected parties. “There was no favouritism and they had a professional system of payments. This was one State institution with which we had no problem working.”
“The payments slowed down in December, in view of the forthcoming election. Then, from January, they stopped. When we asked the SLRDC management, they said the money had not been released money and so on. But that is not our problem.” Jayaratne’s personal dues were Rs 6 milllion. He was recently paid Rs 500,000 as a settlement of some old dues. “There’s still Rs 5.5 million to be paid,” he said. “I recently met some tipper drivers who said between Rs 50,000 and Rs 60,000 were owed them.”
Another contractor who filled a plot of land in Bolawalana, Kochchikade, said she was owed Rs 10 million. “The Pope inaugurated a Catholic university on that property when he came here,” she said. “That event took place under this regime. I haven’t got a cent in payment for that project.”
Mr Jayaratne said he will file legal action in the near future. “The reason we apply for Government work is because there is some security attached to it,” he pointed out, adding that an estimated 30 suppliers and contractors were affected.
“The Government also owes more than Rs 300 million to motor traders for repairs of State-owned vehicles,” said Ceylon Motor Traders’ Association Chairman, Gihan Pilapitiya. He, too, said payments had stopped after the January 8 election. Many leading motor companies are affected.
Another issue was that the Government had yet to take delivery of more than 500 vehicles purchased through a Bank of Ceylon Leasing scheme under the previous regime. “The importers are stuck with them in their yards,” Mr Pilapitiya said. They include vans, double cabs and cars.
“These vehicles cannot be sold to anyone else, because they were imported in favour of the Ministry of Finance for Government requirements with duty waivers,” he explained.
The Sunday Times learns that a large number of other private sector businesses, particularly in the construction industry, are owed money by the State. These include builders of Mahindodaya colleges islandwide.