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State Minister of Urban Development, Coast Conservation, Waste Disposal and Community Cleanliness Dr. Nalaka Godahewa
State Minister of Urban Development, Coast Conservation, Waste Disposal and Community Cleanliness Dr. Nalaka Godahewa dismissed allegations levelled by JVP MP Anura Kumara Dissanayake in Parliament yesterday regarding the UDA leasing the Arcade Independent Square commercial complex to a private company.
Dr. Godahewa said that during 2010-2014, the then Government renovated and face-lifted several dilapidated buildings and made it available for the public’s benefits under the leadership of then Defence Secretary, and current President, Gotabaya Rajapaksa.
The Arcade Independence Square was one such success story – a complex with 42 shops. Initially, the management of the shopping complex was also carried out by Urban Development Authority (UDA). It generated around Rs. 10 million monthly, but according to Dr. Godahewa, after the ‘Yahapalanaya’ Government came to power, the monthly income dropped below Rs. 8.9 million.
“When we returned to power in 2019, the outstanding rental collection was over Rs. 100 million and 11 shops out of 42 had been closed down. Under these appalling circumstances, the board of Directors of UDA took a decision to lease the complex to the private sector and turn the business around to increase the Government income from the venture. A Cabinet appointed procurement committee was in place to complete this process. Trilingual newspaper advertisements were published,” he noted.
The Procurement Committee members were as follows
1. Ministry of Highways Secretary
2. Ministry of Urban Development and Housing Secretary
3. Ministry of Land Secretary
4. UDA Director General
5. Department of Public Enterprise, Ministry of Finance Director General
Technical Evaluation Committee (TEC) consists of the following officials
1. UDA Deputy Director General as the TEC Chairman
2. UDA Director – Asset Management and Collections
3. UDA Finance Director
4. Ministry of Finance Director – Comptroller General Department
5. State Ministry of Urban Development and Housing Assistant Director
The Government valuer had estimated Rs. 120 million as the annual rental for the complex.
Three parties had collected tender documents after due payment. Four weeks were allocated for investors to submit their bids. The procurement method used was the two-envelop method in which technical proposals and financials bids are submitted separately.
TEC recommended Odel PLC’s proposal based on their compliance. The said recommendation was also unanimously approved by the procurement committee.
Odel came to an agreement to get the premises on rent for Rs. 10 million a month, or Rs. 120 Million a year plus tax.
Accordingly, the investing company paid Rs. 120 million at the time of signing the agreement and an additional Rs. 240 million as a security deposit. They also agreed to increase the Rs. 120 million a year rent after five years, based on Government valuation.
“We have pledged in our policy statement ‘Vistas of Prosperity and Splendour’ to turnaround public enterprises and maintain them as profitable ventures,” said Dr. Godahewa.
“Intelligent people of this country vehemently reject the false allegations levelled by Honourable Anura Kumara Dissanayake misusing the Parliamentary privileges.
“We always act in a very transparent manner and according to the Government procurement guidelines. I would like to remind the Honourable MP Anura Kumara Dissanayake that we don›t have the habit of doing transactions in hotel rooms or toilets, and also emphasise the fact that we are committed to developing and safeguarding public properties, but not to set them on fire.
“I should also remind the Parliament that the unlawful Anti-Corruption Committee of which Honourable Anura Kumara Dissanayake was a member, has misused public funds to the tune of Rs. 33 million.”
