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SLIIT trying to cut links with Mahapola : Ex-board member
The Sri Lanka Institute of Information Technology (SLIIT) recently returned to the Mahapola Trust Fund Rs. 408 million which Mahapola had paid in the early 2000s towards the construction of the Institute’s main building in Malabe.
This week, a former SLIIT board member accused the Institute of trying to sever ties with Mahapola in disregard of the fact that the total money defrayed from Mahapola is an investment made by the Trust on the creation and establishment of SLIIT.
“The Ministry of Higher Education must get involved in this,” said Keseralal Gunasekara, who is also a former trustee of Mahapola.
L.L. Ratnayake, the Institute’s Chairman, told the Sunday Times that they had returned the money on a request made by Mahapola. He said Mahapola was concerned about its dwindling funds and had asked for the repayment in order to continue giving out scholarships.
The Institute still stands on land owned by Mahapola. In addition to returning the sum, the SLIIT has signed a fresh lease agreement for the property. Mr. Ratnayake said that, with the return of the money, SLITT had no obligations towards Mahapola other than the paying of the lease and the awarding of scholarships to students.
But Mr. Gunasekara said the value of the investment made by Mahapola on the creation of SLIIT was very much more. The SLIIT was set up through a joint Cabinet Paper put forward in 1998 by the Ministry of Trade and the Ministry of Higher Education. He pointed out that it was established on land owned by Mahapola and that the project was also funded by Mahapola up to a maximum of Rs. 500 million. There were requests for release of Mahapola funds at various stages.
The original board members of SLIIT were all ex-officio. It is not so now, another “shortcoming” identified by Mr. Gunasekara. “The situation is completely different now,” he said. “There are no ex-officio members. It is important that there are.”
“Technically speaking, the real value of the initial investment made is around Rs. 7 to 8 billion,” he continued. “Auditors can perform a valuation.” He also said it was incorrect to say Mahapola was running out of funds, adding that it had reserves in excess of Rs. 9 billion.
“The SLIIT administration for some time has been trying to sever connections from Mahapola,” he said, pointing out that board members from Mahapola had been removed. “My contention is simple. SLIIT cannot pay back Rs 408 million and sever connections with Mahapola. SLIIT is an investment of Mahapola.”
He accused the current board of violating the original Cabinet decision which did not foresee the Institute being run as a private entity. “The intention was for this to be a Government-owned company limited by guarantee and for its board members to be ex-officio and for the Institute to be turned over to the University of Moratuwa.”
“If the Government felt the University of Moratuwa should not run it, it is left for the Ministry to decide what its future course of action should be,” he explained.