Ranil inquires about agreement with KRRISH Group
7 November 2012 02:51 am
Opposition Leader Ranil Wickremesinghe yesterday questioned the 20% lease payment of Rs. 1 billion remitted to the account of the Sri Lanka Government as per lease agreement of 4 acre land in Fort with KRRISH Group
Mr. Wickremesinghe who made a statement in Parliament said the investor KRRISH Group had agreed to pay 20% of the lease premium of Rs. 5 billion in accordance with the Cabinet decision, i.e. Rs 1 billion within 7 days of setting up the Sri Lankan Company.
He asked whether the 80% (i.e. Rs. 4 billion) balance payment would be remitted as per the agreement. He said the company was bound to make this payment on signing the agreement.
He also noted that the proposed project would cost US$ 450 — 500 million in addition to the lease rental of Rs. 5 billion.
He asked how KRRISH Group was selected and what the criteria were for awarding the project
He further noted that there were public complaints that prime property in Colombo was given on 99 year leases without advertising through the media. “It appears that publicity has been confined only to a website advertisement. The Cabinet Paper does not refer to the process of inviting proposals and makes no mention of media publicity,” he said.
He said Fort was primarily a commercial and administrative zone with only a few houses such as the President’s House. He said that KRRISH Group venture appeared to be primarily residential and asked whether it had been approved by changing the classification of the zone.
He wanted to know who the owners of KRRISH Group were and, their line of business and relevant experience to undertake the project.
He inquired about the capital structure of the parent company and the subsidiary and wanted to know the names of the directors and details of the agreements between the UDA, BO1 and the KRRISH Group and its subsidiaries. He wanted these tabled in the House. More questions were asked about the involvement of the Central Bank and the legal provisions regarding it.
He also wanted the names, designations and places of work of the persons or officers who evaluated and negotiated this project.