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| Sunday, 3 April 2005 |
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Paving the way for resurrection of CTB by a Special Correspondent CTB's birth, its struggle for survival has a long history. Before 1958, public transport in the country was in the hands of a few. The service provided by them was found wanting. The private bus companies decided the fate of passenger transport in those years.
These companies had their own whims and fancies in running the services and shared routes among themselves. It was therefore, difficult for the commuters to travel to distant places without breaking journey at one or two destinations. There were no time schedules and night time service was nil. In 1958, the Mahajana Eksath Peramuna government led by Prime Minister S. W. R. D. Bandaranaike initiated the nationalisation of bus services. The main objective of Bandaranaike was to provide a better service to the people. He nationalised bus transport and established the Ceylon Transport Board. Maithripala Senanayake was the Transport Minister. He tirelessly worked for its success. The CTB reaped good profits and won the confidence and satisfaction of the masses. However, in 1965, the UNP regime increased the number of employees of the CTB and made it a loss making institution. In 1970, the United Front Government of Mrs. Sirimavo Bandaranaike, reformed and restructured the CTB. It became a profitable concern again. They imported new buses and services began even to the remote villages. The credit for these successes should go to the then Transport Minister Leslie Goonewardene and CTB Chairman Anil Moonasinghe. However, in 1977, the UNP government led by J.R. Jayawardene, broke up the CTB, forming cluster companies. These cluster bus companies were neglected and private passenger transport owners were encouraged. In 1993, the Werahera Depot was sold to a private individual, and the name was changed as Wesco. This company was given the contract to build bodies to 4,500 buses. However, it was able to build only a few buses. In December that year Wesco retrenched 1,400 workers and the Directors fled the country. In 1994, when the People's Alliance government assumed power, workers filed cases against the Wesco management. In 1995, Supreme Court appointed a Competent Authority. However, in connivance with some trade union leaders the Wesco management signed an agreement to pay EPF, ETF and compensation to the workers and the Court case was withdrawn. But the management did not keep to its promises and three months later all the machinery and equipment were sold. Now only the land is left. The cluster bus services currently provide around 35 per cent of the transport operations including uneconomic routes. They employ around 40,000 staff and have a fleet of 9,000 buses. This operation is done through 11 cluster companies, the Northern Region Transport Board and the Vavuniya Peoplised Transport Services Ltd. These companies meet only around two-third of the operational requirements. It is estimated that the revenue is around 25-30 per cent. These companies are dependent on the government to fill the recurring expenditure of around Rupees 1.7 billion. Stating thus, the UNF government of Ranil Wickremasinghe submitted Cabinet Memorandums on April 30,2002 and May 15,2002 to form Public/Private Partnership Agreements for the bus companies. Accordingly, Expression of Interest (EoI) were requested from private sector by the Public Enterprises Reform Commission (PERC) by way of advertisement in the media, commencing from June 12,2002. On September 23, 2002, when the investors were required to submit bid bonds to qualify for bidding on the stock exchange, no valid bids were received by PERC. In view of the settlement reached in Courts, the transaction was re-advertised commencing October 1, 2002, offering 39 per cent of the equity of these companies out of the shares held by Secretary to the Treasury together with Management Rights. Two consortiums of investors submitted proposals by October 24,2002 in response to the advertisement. A consortium of investors bidding for 9 companies, IBIS Transport Consultant Ltd, and a second consortium bidding for three of the companies submitted documents through Shorsec International Private Ltd. The address of the former consortium was 945, Sri Jayawardenepura Road, Kotte. However, the Chief Justice Sarath N. Silva noted that there was cause for suspicion since there were not a single bus or part of the bus at the given address. President Kumaratunge rejected the Cabinet Memorandum submitted by the former Transport Minister Tilak Marapona to grant 39 per cent of these shares to the companies. In a note to the Cabinet on January 08,2003, she reiterated her opposition to these transactions. She said the principal character involved in these three so-called investors companies having the same address is an inept business partner. She said: "Among other things, he was instrumental in obtaining the ownership of valuable government assets by way of workshops belonging to the CTB, under the previous UNP government, mismanaging the enterprise totally, leaving the workforce unpaid for many years and fleeing the country. The succeeding PA government had to take on the burden of paying salaries of the employees which cost the Treasury enormous sums of money. He returned subsequently and was successful, through Court action, to get back these workshops. He mismanaged the enterprise for the second time, placing the government in the same predicament. It is to enterprises of which this person is the king-pin, to whom six State run bus companies are now to be entrusted. Apart from other frailities of this transaction, I shudder to think what the position of the bus transport in the country and the plight of the bus travellers would be, when these companies commence operations. In view of the above, I not only reiterate my earlier objection to this transaction, but also refuse totally to associate myself with the decision that the rest of the Members of the Cabinet have taken." However,the UNF regime submitted many Cabinet papers and memorandums continuosuly. They were submitted not only by Transport Minister but also by the former Economic Reform Minister Milinda Moragoda. President Kumaratunge's continuous opposition to the privatisation of these companies and the victory of the UPFA government a year ago, paved the way for the resurrection of the CTB. |
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