It has been revealed that the Magampura Port Management Company (Pvt) Ltd. had failed to repay USD 18.82 million (Rs.6,836 million) of a USD 24 million loan from a private bank.
The Magampura Port Management Company is one of the 33 State-owned enterprises the Government last week said it had cleared for liquidation.
The loan had been obtained in 2014 under a Corporate Guarantee provided by the Sri Lanka Ports Authority (SLPA).
The bank had filed 02 court cases in 2019 against the company and the SLPA to recover the outstanding funds.
The issue was discussed when COPE, chaired by MP – Dr. Nishantha Samaraweera, reviewed the Auditor General’s reports on the SLPA for 2022 and 2023, along with the Authority’s current performance.
Officials who appeared before COPE stated that complaints relating to the matter had also been lodged with the Commission to Investigate Allegations of Bribery or Corruption (CIABOC), and investigations are ongoing.
They further noted that since June 2022, a liquidator has been appointed, and liquidation proceedings of the company are in progress.
Dr. Samaraweera emphasized that the SLPA had failed in its oversight responsibilities and warned that mere liquidation of the company would not be sufficient.
The committee recommended expediting the repayment process, conducting an internal inquiry, initiating disciplinary action where necessary, and strengthening oversight by the internal audit division. A comprehensive report on these measures was requested to be submitted to the committee.
