ISSN: 1391 - 0531
Sunday, January 07, 2007
Vol. 41 - No 32
Financial Times  

COPE probes BOI agreement with Merbok

The Parliamentary Committee on Public Enterprises (COPE) is probing the agreement between the Board of Investment (BOI) and Merbok MDF Lanka Pvt Ltd which was the subject of much discussion last year.

The Sunday Times FT learns that several officials involved in the controversial investment deal which gave the Malaysian timber products factory amazing concessions have been summoned by a COPE sub committee. COPE’s involvement in the issue came as a result of a reference made in the Auditor General’s report on the BOI agreement.

The company based at Horana was given special concessions by the BOI. The problems began when the BOI refused to provide services as a result of the company’s non payment of Rs 54 million which they owe to the BOI on account of ground rent, water rent and bungalow rent arrears. The company obtained an enjoining order against the BOI’s decision to suspend all its services to the company.

The International Chamber of Commerce Arbitration Court has also been called in as an arbitrator. Written submissions in that case are due on January 27.

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