It was also revealed at the Committee on Public Enterprises (COPE) meeting held on Wednesday that the Magampura Port Management Services (Pvt) Ltd., a subsidiary of the Ports Authority which had ceased operations from November 2017 had obtained a loan of US$ 24 million from a local bank to purchase ship fuel in 2014 and the bank had filed a lawsuit against the company for failing to repay the loan.
It was also revealed that the purchased ship fuel worth US$ 24 million was stored for a long time without being used and was later sold for US$ 3.5 million. Accordingly, a loss of around US$ 20.5 million was incurred.
It was further revealed that when the port was leased to a Chinese company in 2017, all the oil tanks of the ‘Magampura Port Management Services Pvt. Ltd was also handed over, but the loan details were not disclosed.
Therefore, the COPE Committee instructed the Ministry Secretary to immediately take action to initiate legal action against the former board of directors and advisors.
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