The government has shot down President Chandrika Kumaratunga’s bid to include her Secretary Kusumsiri Balapatabendi or his representative in a special committee to inquire into the controversial allocation of prime Kotte land for two BOI projects including a golf course, political sources said.

President Kumaratunga wants both Balapatabendi and Attorney General K. C. Kamalasabeyson or their representatives in the committee.

However, the government decided to appoint the committee to probe the land deals and Finance Minister K. N. Choksy is expected to name its members.

President Kumaratunga last Wednesday (10) presented a cabinet memorandum calling for the committee but did not attend the meeting herself.

The Sunday Island in a lead story headlined "CBK-Ravi row over prime land gathers steam, appearing in the July 7 issue revealed the fight over Commerce and Consumer Affairs Minister Ravi Karunanayake’s decision to withdraw his cabinet memorandum presented on June 19 calling for the immediate cancellation of the lease agreements covering the land which he said had been under-valued.

A senior minister and a veteran trade unionist has pointed out that the proposed inquiry on the Kotte land deals should be extended to cover several other mega deals including P & O (leasing of Elizabeth Quay), Serendib Flour Mills project and Samudra Cement Company for which land has been allocated in the port of Colombo.

The minister has stressed that President Kumaratunga has violated so-called guidelines established by herself when allocating prime land for investors.

The minister also stressed the need to inquire into all controversial deals which were made during the previous administration. It was not clear whether the proposal would be accepted amidst speculation that a section of the government does not want the probe to go ahead. The sources said that there was opposition within the party and the government to investigate the Serendib Flour Mills project.

The sources said that they must go ahead with the probe. "President Kumaratunga’s conduct must be probed," the sources said.

The UNP’s Jathika Sevaka Sangamaya challenged the project in the Court of Appeal. The sources said that the section which opposes the proposed probe wants to see and end to the case. They have said that there was no need to go ahead with the case and it should be withdrawn without further delay.

Earlier the union withdrew a case it field against Samudra Cement Company.

Prime Minister Ranil Wickremesinghe has been informed of the situation, the sources said, adding that they are confident the premier will press on with the proposed probe on land deals the same way he handles President Kumaratunga’s security vehicle deal in which serious irregularities had taken place.

The government insists that it will not accept President Kumaratunga’s stance that she cannot divulge further details with regard to the vehicle deal without endangering her security - (SF)