A petition has been filed in the commercial high court seeking an order to liquidate Maga Neguma in an attempt to recover the payments outstanding for its constructors.
The petitioner alleges discrepancies in the payments, where only the state institution’s cronies receive the payments.
Maga Neguma has rapidly declined from a profit-earning entity to a den of corruption and discrimination, the petitioner charges.
Maga Neguma affiliates to be disbanded
Meanwhile, the government has decided to disband Maga Neguma Road Construction Equipment Company and four of its affiliates, said cabinet spokesman Bandula Gunawardena.
The decision was taken due to a lack of funds to maintain them, he has told the media.
These establishments would be dissolved under state enterprise reforms, he added.
