The Committee on Public Enterprises (COPE) disclosed that a 6-acre land, belonging to the Urban Development Authority, located at James Peiris Mawatha, Colombo 02, was leased for Rs 12 billion for 99 years in 2019, without the approval of the Board of Directors.
When drafting the lease agreement for this land, it was revealed that conditions not approved by the Board of Directors were included in addition to the approved lease conditions.
Furthermore, it was disclosed at the COPE that disciplinary investigations are underway against the Legal Director regarding the drafting of the relevant agreements and the development of the land has been halted thus far.
Details of the matter were disclosed when the COPE met in Parliament last week.
Additionally, it was revealed that the Authority had to bear a loss of Rs 330 million due to the leasing of a 2-acre 2 roods and 21.4 perches land bordering D. R. Wijewardene Mawatha in Fort, owned by the Urban Development Authority, without formal approval from the Board of Directors.
Accordingly, the Chair instructed officials to send a formal report on these incidents to the Committee within two weeks.
Presenting facts, the officials of the National Audit Department pointed out that they have identified problematic situations in the accounting system of the Urban Development Authority.
They highlighted that the assessment of project land values owned by the Authority is also questionable.
The audit department officials noted that the ownership of the land on which the Parliament complex stands is still held by the Urban Development Authority and gave instructions to transfer the land’s ownership to the Parliament.
Addressing the Committee, the Chair instructed to send a complete report containing all details of all investment lands owned by the UDA to the Committee within two weeks.
The UDA has completed 13,602 houses in 22 housing projects using Rs 48,156 million government funds under the Urban Revitalisation Programme for ghetto dwellers living around Colombo.
However, the audit office officials pointed out that 66 houses in such apartment complexes still remain vacant.
Officials of the UDA stated that measures will be taken to settle the owners of the vacant houses as soon as possible.
However, the audit office officials pointed out that the condominium management certificate has been obtained for only one housing project out of the completed housing projects.
As a result, it was disclosed that the Urban Development Authority has borne a sum of Rs 667.6 million for the maintenance of houses in 2023 and up until May 2024.
The officials noted that after transferring the ownership of the houses to the relevant personnel, the responsibility for maintaining the houses will be removed from the Urban Development Authority.
Furthermore, the Committee’s attention was drawn to the lack of attention given to providing parking facilities for people who come to Colombo daily.
The Committee pointed out that the work on the two parking garages proposed by the authority was stopped in mid-2021, with Rs 230 million spent so far.
Accordingly, the Urban Development Officers informed the committee that construction work has begun to complete the garages so that they can be used in their current condition.
State Minister Indika Anuruddha Herath, MPs Dayasiri Jayasekara, Madhura Withanage, Sanjeeva Edirimanna, Major Sudarshana Denipitiya, Upul Mahendra Rajapaksha and Premnath C. Dolawatte, along with government officials, were present at this Committee meeting.
(Ceylontoday.lk)
