Financial Times

Political influence frees Mundo gas barge
A barge and tug used by Mundo Gas, which were detained by Galle port authorities for non-payment of port dues, was allowed out last week to bring in another shipment of LPG after "political pressure" was exerted on the Sri Lanka Ports Authority.

This was done despite the SLPA giving an assurance to the Appeal Court that the LPG operation would not be allowed to continue until all safety and certification measures had been taken.

The assurance was given in the case filed by environmentalists and Galle residents who alleged the LPG refilling operation in Galle harbour was a threat to public safety. The case was taken up on Thursday. SLPA officials said that Mundo Gas, owned by Ariyaseela Wickremanayake, had failed to settle port dues amounting to over Rs 6 million from May and not provided insurance and safety guarantees despite being asked to do so months ago.

The SLPA had informed Wickremanayake that the barge Formentera and tug Veritas would not be allowed to leave Galle until the outstanding dues were settled, although the vessels were not officially detained.

Wickremanayake, who is also head of salvage and ship repair firm Master Divers, has denied the allegations against him, saying he had paid up all outstanding port dues and provided the necessary insurance and safety guarantees.

He said he is being harassed because of the competition Mundo Gas gives multinational Shell Gas Lanka whose monopoly of the LPG market he helped break.
The deadline given by Ports and Shipping Minister Rauf Hakeem for Mundo Gas to pay up ended on October 31.

Mundo Gas was given an extension till November 10 and an ultimatum that failure to settle outstanding dues will force the SLPA to suspend its operations. SLPA officials said Mundo Gas has not yet provided insurance and safety guarantees required for Formentera, which the SLPA allowed in as a one-off deal on the assurance that the insurance cover, class certificate and other documents would be supplied as required.

This was done because of pressure from the government that is trying to reduce the price of LPG in order to bring down the cost of living. SLPA officials said the barge was over 30 years old and insurers were likely to charge a very high premium in order to provide cover.

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