|
|
 |
 |
| Sunday, 6 June 2004 |
 |
|
 |
News |  |
| News Business Features Editorial
|
Katunayake expressway sinks in fraud by Anura Maitipe The suspension of Colombo-Katunayake Expressway (CKE) project and recalling for bids by the UNF government points to a multi- billion rupee fraud, according to the report of a high powered Committee appointed by the UPFA government to inquire into this shady deal. The contract worth of 9.5 billion along with the local component of Rs 185.84 without GST had been awarded for Keangnam Consortium on a turnkey basis (design and build) in 2002. This contract was offered on an open bidding process in competitive terms of bidding. Two companies Keangnam Consortium and BEC company had received its bids for this construction project. However Keangnam had offered the lowest bid which was US 40 million less than that of the BEC and therefore the construction of the CKE project was offered to Keangnam in 2002. While 35 percent of construction work was in progress, the previous UNF government had appointed a consultancy firm in an arbitrarily manner without valid reasons to suspend the work of Keangnam and to reaward the construction of CKE to an interested party. In this process the consultancy firm has been used only as a tool to suspend the work of Keangnam, the report indicated. The report suggests that there had been informal links between the affluent politicians in the UNF government and the local agents of a certain company run by big kings' to grab this contract for double the amount of agreed cost," the report pointed out. While the cost of the project was estimated at Rs. 10 billion by the PA government in 2002, the UNF proposal, if implemented would cost Rs. 20.1 billion. Meanwhile the loss due to the suspension of the project has been estimated at Rs. 360 million with taxes. The committee appointed by the Minister of Highways who is also the Prime Minister has recommended a Cabinet appointed negotiation committee to negotiate with the Daewoo Keangnam Consortium to recommence the contract on terms acceptable to the government. |
|
News | Business | Features
| Editorial | Security Produced by Lake House |
