Chinese firm refuses credit and commissions  By Bandula Sirimanna  The government has shelved a plan to import 3,000 buses from China for the Sri Lanka Transport Board (SLTB) bowing to strong objections raised by private bus owners, Transport Minister Kumar Welgama said. However motor traders say the reason for calling off the deal was because [...]

The Sundaytimes Sri Lanka

Govt. shelves plan to import 3,000 buses from China

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Chinese firm refuses credit and commissions

 By Bandula Sirimanna 

The government has shelved a plan to import 3,000 buses from China for the Sri Lanka Transport Board (SLTB) bowing to strong objections raised by private bus owners, Transport Minister Kumar Welgama said.

However motor traders say the reason for calling off the deal was because the Chinese company had refused to extend credit facilities to the Government and offer ‘commissions’ to ‘certain parties’.

On the other hand the government also has no money to buy buses as the Treasury coffers have been exhausted, they added.
According to the Minister, negotiations to bring down these buses were stopped midway and the Ministry is now seeking an alternate solution to tackle the need to increase the bus fleet of the SLTB.

President of the Private Bus Owners Association Gemunu Wijeyratne earlier threatened to launch a strike if the government went ahead with the deal, saying it will have an impact on private bus operations in the country.

Mr Wijeyratne alleged that the move to purchase new buses is an attempt by the government to gain control over passenger bus operations in the country.

Private bus operators have a virtual monopoly over passenger bus operations in the country as there are more private buses than state- owned passenger buses. According to the Minister out of the 7,662 SLTB buses, 2,916 are not roadworthy.

The majority of the buses are over 15 years old and used to the maximum with the SLTB spending Rs. 510 million rupees each month on all its operations.

“The SLTB fleet has only 2,500 buses that are seven years old. All the others have been in operation for the past 15, 20 or 30 years,” he revealed.

Minister Welgama said that it is difficult for the SLTB to maintain and repair these old busses.

The Sri Lankan Government depends heavily on Chinese economic assistance; almost to the point of overdependence.
Such assistance also gives the Government confidence to ask the West to ‘go to hell’. It can even use this clout to bargain on the leverage India keeps using – sometimes as if Sri Lanka is a Union Territory of its own, an economic expert said.

Meanwhile another bus deal is drawing allegations of irregularities in the tender bid.

The Sri Lanka unit of India’s Ashok Leyland won a bid to supply 200 buses to the SLTB under a Rs. 700 million contract.
The cabinet of ministers had approved the Minister’s proposal to buy 33-seater buses at a price of Rs.3.52 million each under an Indian credit line.

Motor traders said that Diesel and Motor Engineering Company, Sathosa Motors, and Associated Motors had submitted bids along with Lanka Ashok Leyland and the latter was selected.

However they allege that technical specifications laid down were designed by the Ministry to suit Ashok Leyland and thus the other bidders were unable to match these requirements.




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