COPE cautions Government on Airbus deal

• Says Govt. should kick-start negotiations with German and French counterparts before eight A350 aircraft go into production 
• Insists production will start end of the month 
• Warns that cancellation afterwards would cost large amounts of public money

By Ashwin Hemmathagama, Our Lobby Correspondent

Parliamentary Committee on Public Enterprises (COPE) Chairman Sunil Handunnetti yesterday cautioned the Government to avoid incurring a considerable loss by terminating the agreement the with Airbus after commencement of the manufacturing process of the four Airbus A350 aircrafts before the end of this month.

With the sanction of the COPE, JVP MP Handunnetti proposed the Government to discuss the issue with both French and German Governments and to put a stop to a decision the Rajapaksa regime took by placing the controversial order for eight Airbus A350 aircraft. 

“We need to decide if we want the remaining four aircraft. As per the agreement, Airbus will commence manufacturing those four this September. We may have to pay millions of rupees if we cancel the order after they start the manufacturing process. The COPE wanted me to inform the House that it is necessary to hold discussions between the Governments to suspend the manufacturing until a firm decision is reached. The Sri Lankan Government should talk to these two Governments,” said MP Handunnetti.

Brining memories of arbitrary decisions the Rajapaksa regime took at the public expense, MP Handunnetti said: “Earlier this week we summoned SriLankan Airlines before the COPE. The matter related to lease on Airbus A350 has been in discussion for some time. In 2013, eight Airbus A350s were purchased and we are conducting a separate inquiry on the approval to purchase and the procedure followed to purchase. We paid US$ 115 billion as demurrage for terminating the purchase of four aircrafts obtained under this agreement. A separate investigation is also on that as well.”

Minister of Higher Education and Highways and Leader of the House of Parliament Lakshman Kiriella was on his feet charging MP Handunnetti reminding him of the limitations of the authority of COPE in instructing the Government. 

“A few days ago, we had a discussion. The COPE Chairman could question only at COPE in case if the Auditor General has made some remarks. The COPE Chairman cannot question Government policy in Parliament. What you are doing here is a media show. COPE cannot instruct Parliament. The Government will respond to this matter, but not in the Parliament,” said Minister Kiriella.

However, Minister of Health, Nutrition and Indigenous Medicine Rajitha Senaratne who welcomed COPE Chairman’s cautioning said: “As far as I can see, COPE Chairman Handunnetti is cautioning the Government. What he is trying to say is that the manufacturing will commence soon. If the manufacturing starts, we may have to pay them more to cancel. So, prior to starting the manufacturing he wants the Government to take a decision.”