Government awards contracts to commission paying contractors in the North

"One of the major contracts awarded recently to N Ramathasan’s Euroville Engineers & Contractors (PVT) Ltd is the resurfacing the Karaignagar causeway worth over 700 million rupees. The sources associated with Ramathasan confirmed in anonymity that without paying commission to Minister of Economic Development and Chairman, Presidential Task Force for the Development, Resettlement and Security in the Northern Province, Basil Rajapakse and dolling out cash on demand by the senior military officials the deal would not have given to their company."

by Our Correspondent in Colombo

(September 29, Colombo, Sri Lanka Guardian) In the name of development of the north, post defeat of the LTTE, the government is awarding contracts to questionable contractors in return of commission payment to government ministers and army officials.

Euroville group of companies are the prime beneficiaries of the government awarding of contracts. The elder brother of former Vice President of the government backed Tamil paramilitary group PLOTE Late N Manickathasan is out beating all the other tenders by closely working with the government that includes passing on commissions on deals awarded.

PLOTE's military commander, Manickathasan, under whom that group became infamous for its brutality was killed by the LTTE in a bomb explosion in 2000. His older brother N Ramathasan who too is said to be a member of the PLOTE is outmaneuvering all the other contractors due to his underhand dealings with the government.

Euroville Engineers and Constructors (PVT) Ltd based at 45, Forest Office Lane, Jaffna, Sri Lanka is the main contracting company owned by N Ramathasan that had secured exclusive and high tender value contracts from the government. N Ramathasan is the Managing Director of the company. This company secured exclusive cabinet approved contracts following the Tsunami devastation in the north of Sri Lanka.

The profile of the company states: ‘Firm is established since 1988. Leading Construction company in the Northern Sri Lanka. Planning to expand the activities to Precast & Pre-stressed products. Looking for technical collaboration with India. Deals in concrete products, timber furniture etc’

‘Euroville Engineers & Constructors (Pvt.) Ltd, is the first company situated in the troubled northern province of Sri Lanka, to be certified to the Quality Management System standard. This is a milestone contract for us, says Mr. Nandakumar Shamanna, Zonal Chair (South Zone). He elaborates pointing out that, "Jaffna is situated in the northern belt of Sri Lanka and this area has been affected by civil war for two long decades’-the company publicity further states.

One of the main excuses the government gives for awarding contracts to Euroville is that:  ‘there are not many contractors currently operating in the Jaffna District’ (Cabinet decision briefing).

One of the major contracts awarded recently to N Ramathasan’s Euroville Engineers & Contractors (PVT) Ltd is the resurfacing the Karaignagar causeway worth over 700 million rupees. The sources associated with Ramathasan confirmed in anonymity that without paying commission to Minister of Economic Development and Chairman, Presidential Task Force for the Development, Resettlement and Security in the Northern Province, Basil Rajapakse and dolling out cash on demand by the senior military officials the deal would not have given to their company.

The source also said Euroville’s standard of work has come under heavy scrutiny and Ramathasan is seeking the help of Minister Basil Rajapakse to silence the government road works officials to maintain silence.

According to information Euroville is also facing legal action over poor quality of work on some of the contracts by rival competitors.

An engineering contractor told the Sri Lanka Guardian ‘it is very frustrating to see how Euroville’ managing director is out-beating the other contractors with the insider information and government backing that involves illegal commission payments’.

The source also confirmed that N Ramathasan is working hand in glove with the government Minister Douglas Devananda as well. According to him Minister Douglas Devananda is aligning with him for political expediency and to secure his share of the deal on the contracts awarded to Euroville.

Euroville has recruited Tamils from the diaspora with the help of Minister Doulas Devananda as engineering consultants to work on some of its projects.