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Akila, JSS in Buhari Hotel clash over cooking-the-accounts charge
View(s):The United National Party (UNP) trade union Jathika Sevaka Sangamaya (JSS) is on a collision course with its president Akila Viraj Kariyawasam, after he raised queries about the manner in which the union runs Hotel de Buhari in Maradana and proposed that it be handed over to a new management.
Hotel de Buhari, a decades-old restaurant famous for its biriyani and generous leg of chicken, has been run by the JSS since the early 90s. It was acquired by the State in the 1970s. But the manner in which the hotel has been managed has been questioned in recent years. There are claims that no annual general meetings are held and that its accounts are not audited.
Education Minister Kariyawasam, who is also the general secretary of the UNP, said he ordered an audit of the company and the report was presented around three months ago. The audit carried out by a retired officer of the Auditor General’s Department allegedly identified many irregularities.
“The company earns an average of Rs 700,000 a day but shows a monthly profit of just Rs 1 to 1.3mn,” the Minister told the Sunday Times. “There are established private operators willing to pay leases of between Rs 5 and 4 mn a month to run this business.”
“I told the JSS Working Committee to avail themselves of these offers and pump the money back into the union for the benefit of its vast membership, including those who have suffered political victimisation,” he said. “What is the use of just the JSS members serving on the board benefiting. They are millionaires now.”
But JSS members who are part of the Buhari management vehemently opposed the proposal. “Anyone can audit,” said General Secretary Srinal de Mel who plays a key role. “It’s good if we can give it on high rent but then our members who are employed at Buhari will suffer without bonus, or salaries being paid on time and without EPF and ETF dues being deposited.”
Mr de Mel could not say on what basis he assumed that such problems would arise when nobody has even been identified for the proposed change in management. He also said Buhari paid vast amounts of tax to the Government and denied any malpractices.
The audit report, which delved into the company’s 2017 accounts, identified issues with procurement. The restaurant buys around 60,000 eggs and 1,600kg of chicken a month without calling for quotations. Some money earned from the business was spent on allowances and bonuses to people not connected with the company, it is alleged.
There were also steep monthly management allowances. Money has been spent on May Day rallies and Sinhala New Year payments to the management. A sum of Rs 230,000 was allocated as petty cash for daily purchasing but, again, there were no quotations called.
Mr de Mel said they would oppose any effort to change the existing arrangement.