KMC to re-take disputed car park

In another twist to the already controversial car park complex, the Kandy Municipal Council (KMC) decided to retake control of the multi-storeyed complex in the heart of the town within 14 days after the company that was awarded the tender to run it breached the contract.

But the private company which had taken over the management from the KMC accused the KMC of violating the contract.

The decision to acquire the complex was reached at a special KMC meeting attended by 24 government and opposition members, Mayor L.B. Aluvihare said.

He said the company had breached the contract and failed to pay the Rs. 27 million to the KMC.

However, Property Finance Investment Company Chairman Tusitha Wijesena told The Kandy Times that the decision to take back the car park was a political move and said that the company had suffered losses amounting to over Rs. 35 million after leasing the park since last December, as many in the town had failed to pay for the parking.

“The monthly losses are around Rs. 4 million,” Mr. Wijesena said.

He alleged that it was the KMC that had breached the contract.

“We have lodged complaints with the Police with regard to those who have failed to pay the parking fees and the KMC is bound to get that money and give it to us,” he said, adding that the amount due to the KMC was Rs.16 million and not Rs. 27 million as claimed by the Council.

The contract has provision for the KMC to withdraw from the agreement if the Company failed to pay the due amount for two successive months, Mr. Aluvihare said but Mr. Wijesena said they too could sue the Council for violation of the contract.

The Mayor admitted it was not wise to clash with the business community that had not only supported him, but all Council members and said certain decisions about the car park could not be implemented as a result.

The complex was constructed at a cost of Rs. 770 million with 80 per recent of the funds from an Asian Development Bank loan. Although the complex was meant to solve the city traffic congestion, it remains underutilised with many people still preferring to park along the roadsides.

Asked whether the Mayor would re-consider withdrawing from the contract, he said if the company promptly settled the due amount, he would re-consider his decision.