SC orders SLT to call for ‘transparent’ bids

The Supreme Court ruled on Thursday that Nippon Telegraph and Telephone Corporation (NTT) must call for transparent bids to sell off 25.3% of its total 35.2% stake in Sri Lanka Telecom (SLT). After months of controversy surrounding NTT's proposed sale of SLT shares to Global Telecom Holdings (GTH), a Malaysian company, the Supreme Court had issued an interim order in June 2007 suspending the deal from going through following a fundamental rights petition filed by former minister Sripathi Sooriyarachchi alleging massive corruption in the proposed sale.

Mr. Sooriyarachchi told The Sunday Times on Friday that he was pleased with the injunction order.“It is in the interest of the general public. GTH is a totally unknown and unheard of party which wants to purchase the SLT shares without any experience and without any financial capacity,” he said.

Mr. Sooriyarachchi said he believed the ulterior motive of the transaction was to ruin SLT. He said the Supreme Court's decision recognizes and is aiming to prevent the misuse of authority by politicians and public officials. Mr. Sooriyarachchi's legal counsel, Nilanthi Peiris also told The Sunday Times that by inviting transparent bids, the Supreme Court has recognized this as a public issue and not simply a matter for the petitioner.

“Though NTT said the sale was between two private parties - that is NTT and the Malaysian company GTH - the Court held that there is a shareholder's agreement with the Government,” she said. The Government of Sri Lanka still retains the majority 49.5% of SLT shares with the remainder being held by the public. The next hearing is on February 22.