Searchlights shift to Hyatt Residencies; Harsha lodges complaint with Bribery Commission
Thursday, 29 January 2015 01:17
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The stalled construction of Celestial Towers, controversially known as Hyatt Residencies, came under the scrutiny of Deputy Minister of Policy Planning and Economic Affairs Dr. Harsha de Silva, who took the matter to the Bribery Commission yesterday.
Visiting the construction site in front of the Temple Trees, the Deputy Minister sought answers from the site supervisors who had little knowledge of the actual ownership and the questionable transfer of this prime property once owned by the now defunct Ceylinco Group.
However, the land was originally leased to the previous developer Ceylinco in 2003 for scheduled completion of the project in 2008 but the project has remained abandoned for over three years. Highlighting the need to develop tourism, the Government took over the project under the Revival of Underperforming Enterprises and Underutilised Assets Act, enacted in November 2011.
According to Dr. de Silva, all transactions from the point the particular property was taken away from Ceylinco were fraudulent and questionable.
“This was initially owned by Ceylinco Shriram. With the collapse of the Ceylinco Consolidated, a commission was appointed to consider the paying the depositors. At that time a bid was received for Rs. 7,500 million. If that bid was accepted, it could have been adequate to settle the depositors in full. However, the project was given to SINO Lanka for a much lower bid worth Rs. 358 million. Reasons for entertaining such a low bid are questionable. On the other hand, Sino Lanka is a venture with a capitalisation of Rs. 40. How can a company with a capitalisation of Rs. 40 afford to build a multi-storeyed building?” the Deputy Minister stated.
Dr. de Silva, exposing the ownership of Sino Lanka headed by the Chief of Staff of the former President, said: “Gamini Senarath is a Director of this company and the company is housed inside the LitroGas Building. We need to know the relationship between the LitroGas and Sino Lanka.”
On 19 July 2012, the project was launched to develop a 43-storey five-star luxury hotel complex, which was to be managed by the Hyatt International under the Hyatt Regency brand. Once completed, the proposed hotel, Hyatt Regency Colombo, was to have modern facilities with large banqueting and meeting spaces, food and beverage outlets, a fitness centre, entertainment and adequate parking for the visitors.
The hotel was to feature approximately 565 rooms with 475 guest rooms. The guest rooms were to include 54 suites, 265 King rooms, 150 Twin rooms and six rooms for the differently-abled. An infinity pool with a pool deck with seating for 76 was also to be constructed on the 11th floor.
Meanwhile, Bribery Commission officers have called for Government assistance to boost its cadre and to obtain 78 computers to continue investigations efficiently and fast.
