A protest by the staff of the Sri Lanka Transport Board (SLTB) Head Office against the government’s move to take over the Private Provident Fund (PPF) of the SLTB ended with an assurance by Road Passenger Transport Minister Lasantha Alagiyawanna that the status quo would remain.

However, the JVP-led All Ceylon Transport Workers’ Union (ACTWU) has threatened to launch an islandwide strike, unless the government withdraws the Cabinet memorandum to that effect.

The Sri Lanka Nidahas Pravahana Sevaka Sangamaya affiliated to the ruling party and UNP-led Jathika Pravahana Sevaka Sangamaya are also on the warpath against the government’s move.

Transport Minister Dullas Alahapperuma submitted a paper at the last Cabinet meeting for the takeover of the fund by the Treasury.

Media Minister Lakshman Yapa Abeywardene confirmed at the post Cabinet press briefing on Thursday (16) that the Cabinet of Ministers had endorsed the Transport Minister’s proposal. They said that the government had to intervene due to mismanagement. Minister Alahapperuma earlier asserted that there had been an eight billion rupee fraud in the PPF of the SLTB and it was second only to the mega VAT scam.

General Secretary of the ACTWU, Sepala Liyanage told The Island that there was no truth in the government’s claim. Minister Alahapperuma in January assured the trade unions that he would not permit the take over of the fund by the Treasury. "But, after nine months, the Minister has broken his promise. The fund has 6 billion rupees and this is an attempt to grab it," Liyanage said.

"The SLTB’s provident fund is the only fund in the world operating two separate accounts. The SLTB Head Office workers’ account obtains a 31 per cent interest and others get 11 per cent," Liyanage.

Although Minister Alahapperuma had said the two accounts could not be merged due to legal reasons, such a merger was possible, Liyanage said. "Workers went before the Supreme Court and the Court made it clear that there was no legal barrier against such a merger. It could be done through a policy decision of the SLTB management. According to the SC order we requested the Minister to merge both accounts but, he and the SLTB management have disregarded our request," he said.