More than one month after the government take-over of Pelwatte and Sevanagala sugar companies, under the newly enacted Underperforming Enterprises and Underutilized Assets bill, work at the two factories has slowed down amidst chaos among employees due to the delay in the change of management, factory officials said. Workers at Pelwatte Sugar are reporting for duty but there is no proper directive for them to work, officials of the two companies told Business Times. They added that the two factories are not operating at present because of the Maha season sugar cultivation replanting process.
The Economic Development Ministry has appointed Keerthi Kotagama, the head of the CIC Agri Business Division, in an advisory capacity to oversee the agricultural aspects of Sevanagala Sugar with effect from Wednesday December 7. Mr. Kotagama told the Business Times that there is no involvement of CIC in this process and that he is serving the Sevanagala plant on a part-time basis. He said that he convened a meeting with officials at the factory and issued necessary instructions. Sugar production will resume in April with the receiving of the Maha harvest, he revealed. Stocks of fertilizer and agro chemicals have been supplied to 32,000 outgrowers to carry out replanting of sugarcane in 4,200 hectares. Plant nurseries are being looked after by workers attached to the company, he said. The annual production of the factory is around 24,000 MT.
When contacted by the Business Times, Competent Authority (CA) of Sevanagala Sugar, A.Pathinathan, District Secretary Monaragala said that salaries of employees have already been paid using Treasury allocations. The stock verifications are now underway at the factory office, he added. He expressed the belief the sugar production process will be normalized with in the next few months.
Businessman Daya Gamage who previously owned Sevanagala Sugar, said that his company will instigate international arbitration against the government’s action to take over his business. He said that he moved out from Sevanagala on November 11 and two days later he met Dr. P.B Jayasundera discuss compensation and other issues. He alleged that the government has unofficially handed over Sevanagala Sugar to CIC. The CA has taken over the administrative functions of the factory and salaries of employees were paid using money allocated by the Treasury, he revealed. At least Rs. 80 million is needed to meet the salary bill of employees he disclosed. Workers are not interested in work as they are now aware that the government will pay their wages. But a senior official of the company said that this situation cannot be continued by pumping money from the Treasury as there is no income generation from the sugar factory.
Ariyaseela Wickremanayake, former chairman of Pelwatte, said Pelwatte Sugar Industries has not received a reply from the Treasury Secretary requesting the plantation be handed back to the firm as any delay could damage the business, especially in replantng cane for the next season.
He pointed out that the company’s diary project is continuing as it cannot be considered part of the sugar industry. This diary farm and milk food factory were set up under the government’s “gamata karmantha “ industries for village programme According to Mr. Wickremanayake, the 6,300 hectares comprises settler estate whilst the company has 4,300 hectares as nucleus estate. Over 3,000 private outgrowers cultivate sugar cane for the company. |
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