Most powerful Board for Waters Edge

By S.S.Selvanayagam

The Attorney General has submitted a motion to the Supreme Court to have the new Board of the Waters Edge comprising the Chiefs of the three Armed Forces, Sri Lanka Port Authority Chairman, former as well as the incumbent Chairmen of Hilton and two others.

The Bench comprising Chief Justice Asoka de Silva, Justices Shirani Tilakawardane and P.A.Ratnayake yesterday (10) ordered that the motion should be submitted to the Chief Justice and Curricula Vitae of the Directors who are to be appointed should be submitted for the consideration of the Court.

The matter was listed to be mentioned on 12 January.

Attorney General Mohan Peiris appearing for the Board of Investment of Sri Lanka filed the motion on 6 January seeking the permission of the Court for the appointment of Air Chief Marshal Roshan Gunathilake, Lt. Gen. Jagath Jayasuriya, Vice Admiral Tissara Samarasinghe, Janaka Kurukulasuriya (former Chairman, Hilton), Thirukumaran Nadesan (incumbent Chairman, Hilton), Lakshman Hulugalle and Susantha Ratnayake to the Board of Waters Edge Ltd. to continue the facilities of the Waters Edge Complex.

Attorney General in his motion, among other things, stated whereas the Supreme Court by judgment dated 8 October 2010, declared invalid in law, and null and void the lease and all other instruments made in furtherance of transaction in relation to the land made available for the Waters Edge Project;

And whereas the Supreme Court by further order dated 16 September 2009, directed intervenient parties to submit a Report for the purpose of granting compensation and whereas by order of the same date, the Supreme Court permitted any purchases of allotments of land who had not preferred their claims to do so;

And whereas by order dated 17 December 2008, the Supreme Court made order that an Independent Management Committee be appointed to continue the existing facility of the Waters Edge Complex as a holding operation;

And whereas the Supreme Court have also by order dated 11 December 2009 given the liberty to the Intervenient Petitioners to file action in the District Court against the Asia Pacific Golf Course Ltd. to recover any loss incurred;

And whereas in the interim period, the 4th Respondent – Respondent the Asia Pacific Golf Course Ltd. has instituted arbitration proceedings against the 7th Respondent – the BOI in the ICC Arbitration No. 17334 CYK claiming a sum of Rs. 19,191,380,000 as damages for breach of contract between the BOI and the Asia Pacific Golf Course Ltd;

And whereas it has now become necessary in the context of the development activity undertaken by the government to restructure the management of the properties in consonance with the provision of the Companies Act so as to ensure optimum efficiency production and maximum utilisation of plant and machinery and proper accountability and whereas a new Company styled Waters Edge (Pvt) Ltd has been incorporated with a view to achieve the objectives set out above and to ensure that the plant and property will be preserved as a public utility for the greater good of the community at large;

And whereas the following persons have been appointed to the Board of Waters Edge (Pvt) Ltd to continue the facilities of the Waters Edge Complex:

(i)Air Chief Marshal Roshan Gunathilaka, (ii)  Lt. Gen. J.J.Jayasuriya, (iii) Vice Admiral T.S.G.Samarasinghe, (iv) Dr. P.B.Wickrema (Chairman, SLPA); (v) Janaka Karukulasuriya (former Chairman, Hotel Developers, owning company of Colombo Hilton); (vi) Thirukumaran Nadesan (Chairman, Hotel Developers, owning company of Colombo Hilton); (vii) Lakshman Hulugalle; and (viii) Susantha Rathnayake.

And whereas by further order dated 2 February 2009, the Supreme Court directed that the permission of the Court should be obtained before any change is made to the said Interim Management Committee;

And whereas in the above circumstances, I (Attorney General) respectfully move the Supreme Court be pleased to take cognisance of the restriction of the management for the reasons set out above and to have this matter mentioned before the Chief Justice to support this matter.