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Agreements between RALL and Avant-Garde are unlawful : COPE

The Committee On Public Enterprises (COPE) reveals, the agreements which have been signed between the Rakna Arakshaka Lanka Limited (RALL) and Avant-Garde Security Services Private Limited are illegal.

The COPE committee recommends that the Defence Secretary provide a report in this regard to them, after consulting with the AG.

The investigative report compiled by COPE into nineteen state enterprises was released recently.

The investigation conducted into RALL has revealed several special details.

According to the COPE report, six project agreements have been signed and entered itnto by the RALL and Avant-Garde were not approved by the Treasury, the Ministry of Defence, or its Boards of Directors.

Though these six agreements had been combined to form a single agreement, and was signed again with Avant-Garde Security Services Private Limited on January 27, 2014. It cannot be accepted as legal too, COPE report reveals.

It further reveals that while such an environment existed, on October 20, 2015, the current government decided to slash Rs.255 million owed by Avant-Garde Security Services to RALL.

The amount owed by Avant-Garde and RALL by the end of yer2014 has been reported as Rs.843 Million.

The report further states that the distribution of profits between RALL and Avant-Garde was carried out based on unfair conditions.

Even though RALL was contracted to receive 12 percent of the total income in 2012, by 2014, that percentage had reduced to 7.5 percent.

As a result, over 75 percent of the profits of the Joint Venture was absorbed by Avant-Garde Security Services Private Limited .

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