Car Park Dispute To Go Into Arbitration

The Kandy District Judge has ordered that the dispute between the KMC and the private operator of the municipal car park, Property Finance and Investment (Kandy) Private Ltd., over payment of the lease money and the collection of parking fees must go into arbitration. The proprietor of the leasing company is the property developer Thusitha Wijesena who is responsible for the massive (incomplete) shopping complex next to the Food City in Dalada Veediya. The judge made the order in the case that the company has filed against the KMC's attempt to take back the management of the car park on the grounds that the private operator had not paid the lease money that it owes to the KMC.

The lease agreement between the two parties allows the KMC to void the lease if any of the clauses in the agreement are violated by the company. The KMC's main complaint is that the contractor has not paid in full the monthly lease money of Rs 2.8m. KMC sources say that the contractor has paid to date only Rs 2.8m, a mere one month's lease money. The KMC apparently has confiscated a security deposit of Rs 8.5m to recover a part of the accumulated arrears that now totals Rs 60m.

The contracting company in the court case that it filed accused the KMC of violating the terms of the contract. The company claimed that the KMC had failed to help the company to collect the parking fees from those who use street parking. Under the terms of the agreement the company was given the right to charge fees for street parking in designated areas.

The KMC is paying Rs 13.5m per year from its general revenue to the Asian Development Bank to service the loan that it received to build the car park.

Heritage Committee to Submit Report to President Rajapaksa

The Kandy World City Heritage Committee has decided to prepare a report of its work, resource requirements and related issues and submit it to President Mahinda Rajapaksa. Mayor L B Aluvihare has announced that a committee comprising of Professor J M Gunadasa, Dr Roland Silva, Dr A S M Naufal, former mayor Chandra Ranaraja, Deputy Municipal Commissioner R M N Ratnayake, Chief Works Engineer S K I Wijewardena and Heritage Committee Officer-in-Charge Romani Perera will prepare the report.

The report will also include a review of the work that the Committee has done in the past fifteen years highlighting both its successes as well as failures and the steps that need to be taken to improve performance.

Full text from home page

President Rajapakse Intervenes to Bring Back One-way Traffic System

KMC Leader of the Opposition Thilina Tennakoon making a statement at the last meeting of the Council stated that a decision had been taken to bring back the one-way traffic system that was briefly implemented earlier this year. According to Mr. Tennakoon this decision had been taken at a meeting that President Mahinda Rajapakse had recently with the Kandy Mayor L B Aluvihare, Leader of the Opposition (Mr. Tennakoon), Kandy Municipal Commissioner W V R Wimalasiri and the property developer Thusitha Wijesena who has the contract to manage the KMC car park. Municipal sources say that Mr. Tennakoon who is a member of President Rajapakse's People's Alliance arranged the meeting.

Mr. Tennakoon declared that President Rajapakse advised the Kandy delegation to work in harmony for the welfare of Kandy setting aside party political differences. He says that Mr. Wijesena had agreed to withdraw the court case that he had filed against the KMC over the car park contract and promised to pay the arrears in lease dues that he owes the Council. The Council for its part is expected to fully cooperate with Mr. Wijesena to make the Kandy parking system centered on the public car park work successfully. Mr. Wijesena is the property developer behind the massive shopping cum office complex under construction known as the Kandy City Centre.

Mr. Tennakoon also claimed that Mr. Wijesena's property development company has agreed to invest to construct the Cultural Centre that is expected to be built above the public car park.

The Opposition Leader concluded his speech by declaring that the opposition would assist the KMC administration in all its efforts designed to improve the welfare of the Kandy community. But he said that the PA group would oppose, as any good opposition should, action that is detrimental to the people.

Responding to Mr. Tennakoon's statement, Deputy Mayor Suminda Wickremasinghe pointed out that no matter with whom such discussions are held, KMC should act to protect its independence and the rights of governance bestowed on it by law. We should take independent decisions in accordance with the law, he noted. He also asserted that the one-way traffic system was inconvenient to a large section of the public who protested against it. The business community in particular suffered significant losses after the new traffic flow was introduced. If businesses suffer the KMC revenue too will suffer, he warned.

The Deputy Mayor also cautioned the Council to beware of “political conspiracies” that he claimed existed to undermine the municipal administration.

The Kandy News Chief Correspondent Sarath Doolwela contributed to this report.