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| Sunday, 6 April 2003 |
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Howls of protest against IBIS deal by Deepal Warnakulasuriya The IBIS deal, signed sealed and all but delivered has brought howls of protest from the PA and trade unions, who claim the deal is illegal. Last week Finance Ministry Secretary Charitha Ratwatte and IBIS Managing Director Ian Barrette signed the agreement that effectively gives IBIS, 39 per cent shares of the six cluster bus companies owned by the CTB. A spokesman for the IBIS told the Sunday Observer that the ding dong battle was finally over and the company had taken over the management of the Colombo Metropolitan, Kalutara, Kandy, Gampaha, Rajarata and Sabaragamuwa bus companies. He also said that they would introduce new strategies and plans to upgrade the service. But, PA spokesman Dr. Sarath Amunugama, dismissed IBIS takeover saying they won't be able to use even a pen owned by the cluster companies, as there is a stay order on the handing over of the management of the six companies to IBIS, effective till May 12. The Leader of the Opposition, Mahinda Rajapaksa at a media briefing last Wednesday also said the transaction was illegal. Former Transport Minister Dinesh Gunawardena also dubbed the transaction a mere fraud and claimed it had not brought any foreign investment to the country. Chairman of the Joint Front of CTB Trade Unions, Somaweera Chandrasiri said that they had already written to President Chandrika Kumaratunga to intervene. He also threatened to go on series of trade union actions, that would force the government to cancel the agreement. The Agreement was signed after a five month long transaction process. The company before the divesture, forwarded a bid bond to the value of Rs. 70 million, equivalent to five per cent of the minimum bid price. It was also required to pay 60 per cent of the entire bid value of Rs. 1,419 million as equity to take up the management of the companies. |
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