Magampura Port Company must settle outstanding loan before winding up: COPE

By Yohan Perera and Ajith Siriwardana   

Committee on Public Enterprises (COPE) has instructed the  officials of Magampura Port Management Company to settle the loan  (Corporate Guarantee) which it has obtained from a private Bank way back  in 2014 before it is wound up.   
As per a statement issued by the Parliament communication unit  said the company had obtained this guarantee of $ 24 million from a  private bank in 2014, but had settled around $ 6 million as of December  2023. Accordingly, the outstanding amount is said to be $ 18.82 million  as of December 2023.   
The officials of the company have informed COPE that a  process to wind up the company was initiated in June 2022 and is being  continued. “Making a decision to wind up the company is hardly  sufficient as the settlement of the loan is of paramount importance,”  COPE had informed the officials.   
It was also revealed that the bank concerned had filed  legal action against both the Sri Lanka Port Authority (SLPA) and against  Port Management Company in 2019. Also, it has been informed that an  investigation is being carried out by the Bribery Commission.   
However, COPE has been of the opinion that the progress that  has been made with regard to settlement of the loan is far from being  satisfactory. Accordingly, the committee has recommended an internal  audit on repayment of the loan so that a proper assessment of it could  be made. COPE, therefore, called for a report on the issue.   
COPE further looked into future plans of SLPA during the meeting.   
MPs Dayasiri Jayasekera, D. V. Chanaka, M. K. M. Aslam,  Nilanthi Kottahachchi, Dilith Jayaweera, Prageeth Madhuranga, Thilina  Samarakoon, Samanmali Gunasinghe, Sunil Rajapaksa, Chandima and  Hettiarachchi, participated in the meeting.