A high-level extortion racket running to millions of rupees has been exposed at the Economic Trade Centre in Dambulla.
The Sunday Times reliably learns that traders operating in the centre have been asked to come up with sums of up to Rs. 20 million if they wanted their tenancy contracts renewed. It is alleged that the money has been requested by regional politicians.
According to sources, each trader has been asked to provide Rs. 150,000 as an initial payment to have their tenancy contracts renewed for another 10 years.
A total of 144 market spaces were given out on a ten-year contract in 1999. The contracts expired on April 1 this year.
The standard procedure when a tenancy contract expires is to call for fresh applications from potential tenants.
Applicants must attend an interview, where the bona fides are thoroughly checked, sources said.
It is understood that the present tenants of the Dambulla Economic Trade Centre enjoy a high degree of political patronage at regional and other levels, and are refusing to budge.
The matter is now being investigated by senior officials at the Ministry of Trade and Commerce, sources said.
Some of the current tenants are said to operate as a closely-knit syndicate, and have been associated with various irregularities, such as price fixing and hoarding.
The trade centre was set up largely to give small-time traders in the Dambulla district area a chance to do good business, while giving farmers fair prices for their produce.
Minister for Trade and Commerce Bandula Gunawardene told The Sunday Times that he had given the go-ahead for extending the tenancy contracts for another 10 years. He said the present traders had a good understanding of doing business at the Dambulla centre.
“There is no question of bringing in outsiders at the moment. If the present traders are paying their rents, then the matter is closed,” the minister said.
He dismissed allegations that the traders had been asked to pay bribes to have their tenancies extended.
“Certain individuals with vested interests are spreading such stories,” Mr. Gunawardene said.
Meanwhile, Trade Ministry secretary Lalith R. de Silva said several persons have made representations for and against the business community based at the Dambulla Economic Centre.
“The matter is now before the President,” Mr. de Silva said. |
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