With such payments, we can build another Hilton
Local businessman Cornel Perera, who promoted the Colombo Hilton project years ago, has made a claim of US$ 25 million (more than Rs 3.8 billion or Rs 3,800 million) for his role, the Cabinet Committee on Economic Management ( CCEM) has been told.
The March 22 minutes of the CCEM meeting, chaired by Prime Minister Ranil Wickremesinghe, note, “Mr Perera has been claiming about $ 25 million for all the expenditure he has made, all the losses he has incurred and all the efforts he made as a promoter.”
However, the minutes observe that Mr Perera had paid the Urban Development Authority ( UDA) Rs. 27 million only. “There is no other evidence of any major expenditure by him,” the minutes add.
The minutes conclude by saying “Finally, Ms Bimba Tillekeratne, PC was instructed to obtain the Hon. AG’s (Attorney General) advice on the legality of the claim and as to how this matter should be proceeded by the Government.”
It was only at the last weekly ministerial meeting ( April 4), President Maithripala Sirisena asked Premier Wickremesinghe to appoint a Committee to probe a claim made by Nihal Sri Amerasekera, a consultant. This was after Finance Minister Ravi Karunanayake presented a cabinet memorandum seeking approval to pay a further Rs 300 million to him for Colombo Hilton.
Mr Karunanayake said in this memorandum that “…..considering the fact that Mr Amerasekera’s claims are on account of services rendered with regard to Hilton Hotel this matter was deliberated by me and Secretary to the Treasury with officials. Until a final decision was made to honour the undertaking of Rs 300 million given to Mr Amerasekera, an overdraft facility from Bank of Ceylon was made availa- ble amounting to Rs 100 million which was fully drawn by him and this facility was increased by a further Rs 125 million in June 2015. However, Mr Amerasekera has also borne the interest cost of Rs 52.5 million, on the amounts drawn by him, and this facility was increased by a further Rs 125 million, on the amounts drawn by him via the overdraft at Bank of Ceylon, which has to be re- imbursed by the Government…..”
A minister who is a member of the CCEM commented rather wryly; “without prejudice to the parties involved, the funds claimed could all easily add up to the cost to build another Hilton.”