CML Walkers subsidiary owes nearly Rs. 3.5mn to the Government

COLOMBO (News 1st) - Over the past few weeks, News1st has on multiple occasions reported on how a Rs. 10bn loan was granted by the People's bank, to a private company in a backdrop where it's Executive Deputy Chairman also served on the Board of directors of People's bank. Addressing a media briefing today UPFA Parliamentarian Kanchana Wijesekara claimed that the Modara fisheries harbour was leased out to Walkers Colombo Shipyard Pvt. Ltd, a subsidiary of CML Walkers. Wijeyasekara noted that a letter had been sent by the General Manager of the Ceylon Fishery Harbours Corporation to its financial manager stating that Walkers Colombo Shipyard Pvt. Ltd had not paid the lease rental for the period from November 2017 to June 2018. The total amount due to the Ceylon Fishery Harbours Corporation is nearly Rs 3.5bn. The MP noted that as the joint opposition that they would be lodging a complaint with the Bribery Commission in this regard and noted that they would take relevant legal actions. The Governor of the Central Bank had reportedly said there was no problem for a director of a state bank to obtain a loan from the same bank. However, the creditworthiness of a person or company has to be looked into when granting loans. This particular company in question has to make payments of nearly Rs 3.5 million rupees to the government and has incidentally not even paid their utility bills since leasing the harbour in 2015. Was the credit worthiness of this company looked into before granting the company, a 10 Billion rupee loan?