Saturday, 11 June 2016 18:13

SOBE top officials to get hiring cars

The government has extended the operating leasing scheme for procurement of vehicles to top officials of State owned Business Enterprises (SOBEs) and its subsidiaries similar to the system applicable senior high grade public officials.

Hiring will be permitted for vehicles with a mileage of less than 1,000 km through operational leasing method (use and return option) for a 5-year period on a fixed monthly rental basis ranging from Rs.119, 500 to Rs. 158,000, the Public Enterprise Circular No.PED4/2016 issued by the Treasury has revealed.
This circular was issued in subsequent to the national budget circular No:1/2016 issued by the Treasury last month, permitting the hiring of vehicles for high grade public officials through operational leasing method (use and return option) for a 5-year period .
This decision has been taken by the Finance Ministry as a cost cutting measure. The Treasury will call for bids from service providers to hire vehicles. A standard procedure would be followed for this purpose following the identification of the required number of vehicles for all state agencies including ministries and government departments.
Chairman /Competent Authority could obtain cars with a monthly rental of Rs. 119,500, and Managing Director, Executive Director, Director General, Chief Executive Officer, Chief Operation Officer, Chief Finance Officer, any other officer who has entitlement to use official vehicle the rental would be Rs. 98,700. The rental of Double Cabs as pool vehicles would be Rs. 158.000 and Passenger Vans Rs.139, 100.
The Treasury has imposed the ceiling allocation on monthly hiring charges as well as types of vehicles permitted be hired, a senior official said adding that this would reduce millions of rupees being paid as installments and interest for the procurement of vehicles under the earlier leasing arrangement with the Bank of Ceylon (BoC) and the People’s Leasing Company, a subsidiary leasing company of People’s Bank.
Earlier payment for vehicles either purchased or leased for Ministries, Departments, Provincial Councils and Government agencies came from the Consolidated Fund.
The practice of buying vehicles for government agencies once in every three years by the Treasury is unbearable for a country like Sri Lanka, an economist pointedout. He said that a brand new vehicle could be used in good condition for at least five years even it depreciates 10 per cent per annum

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