672 vehicles imported by the previous regime lie idle at importers’ yards
Six hundred and seventy two vehicles imported by the Treasury on the directions of former Secretary Dr. P.B. Jayasundera under the previous regime are now lying idle at the yards of several local motor traders as the new government has so far not cleared these vehicles for the use of ministries and affiliated institutions, motor traders said.
The previous government had imported 1665 vehicles including double cabs, motor vehicles, ambulances, vans under the leasing plan by the Treasury for g overnment institutions, a few months before the presidential elections. (This was exclusively reported in Business Times on 12th October 2014 titled “Treasury turns AR and FR upside down to import 1000 pickups for government agencies”).
The Treasury declared that the transaction with respect to the importation of vehicles has been made in full, in accordance with the financial regulations and other administrative provisions.
As per the approval of the Cabinet of Ministers, vehicles for all the state entities are purchased by the Treasury under a leasing plan of paying off the amount within a period of five years through the Bank of Ceylon.
This fulfils the long felt vehicle requirements of state institutions while minimising the burden on the expenditure votes of the Budget due to the paying off plan within the 5-year period.
However, the Finance Ministry has made delivery orders for 993 vehicles and cleared those vehicles from the yards of importers to fulfill the requirements of these entities, but it had yet to take delivery of 672 vehicles, Chairman of Ceylon Motor Traders Association Gihan Pilapitiya told the Business Times.
He noted that these vehicles could get corroded by keeping it at the yards without using. The importers of these vehicles are urging the government to take prompt action to clear the vehicles soon.
“These vehicles cannot be sold to anyone else, because they were imported in favour of the Ministry of Finance for Government requirements with duty waivers,” he pointed out.
The procurement of vehicles for Ministries, Departments, Provincial Councils and Government agencies will be made by making payments from the Consolidated Fund.
The Department of National Budget (NBD) has negotiated with the Bank of Ceylon (BoC) and the People’s Leasing Company, a subsidiary leasing company of People’s Bank (PLC) on the terms and conditions of the leasing arrangement relating to purchase of vehicles in accordance with guidelines on procurement of vehicles, he disclosed.