Three Mahaweli Authority bankrupt companies face liquidation
Three limited liability companies affiliated to the Mahaweli Authority under President Maithripala Sirisena will be liquidated due to bankruptcy and liquidity problems.
They are the Sri Lanka Mahaweli Authority-affiliated Natural Resources Management Service (Pvt) Ltd, Mahaweli Venture Capital (Pvt) Ltd and Mahaweli Engineering Services (Pvt) Ltd which have been incorporated under section 13(18) of the Mahaweli Development Act.
The Cabinet of Ministers approved the proposal presented by Minister of Mahaweli Development and Environment and President Maithripala Sirisena to liquidate these three companies.
The main objectives of the Natural Resources Management Service (Pvt) Ltd, in terms of the incorporation order of the company are mapping environmental parameters such as soil, land structures, topography, and use of lands, flora and fauna, bio-diversity, the quality of water by land survey in Sri Lanka and outside the country.
It was also empowered to carry out aerial photography, satellite photography, geographical information system, analysing, estimating land resources, planning on the use of land, soil erosion and soil preservation, management of protectorates, plantation of herbs and consulting for sustainable plantation systems, preparing plans and training.
The company did not acquire an ability of certifying the accuracy of the reports of the company and not being acquired with a staff with technical knowledge.
Even though over 20 years had been lapsed since the establishment of the company, action plans had not been prepared to achieve the objectives of the company mentioned in the incorporation order of the company, Finance Ministry sources said.
The Board of Directors of the Mahaweli Authority of Sri Lanka had decided to voluntarily liquidate the Mahaweli Venture Capital (Pvt) Ltd.
According to the company notice on the maturity of Treasury Bills, the value of the Treasury Bills should be Rs. 9,797,800, but that value had been stated as Rs. 9,839,619 in the statement of financial position, thus the assets had been overstated by a sum of Rs. 41,819.
The Mahaweli Engineering Services (Pvt) Ltd had collapsed following the unsuccessful attempt to downsize staff and commercialise the company with assistance from the World Bank’s external consultants, sources revealed.