Colombo Port City: Who can be entrusted with safeguarding Sri Lanka’s interests?

 SPECIAL REPORT : Part 365

Published

  2021/04/28

By Shamindra Ferdinando

 

SLPP National List lawmaker Gevindu Cumaratunga, on Sunday (25) raised three issues in respect of the controversial Bill, titled ‘Colombo Port City Economic Commission’, that had been challenged in the Supreme Court.

Addressing the media at the Sri Sambuddhajayanthi Mandiraya, lawmaker Cumaratunga expressed concerns over (I) the composition of the proposed Economic Commission (EC) with the focus on the President being the sole authority in deciding its members, (ii) authority over the newly reclaimed land, adjacent to the Galle Face Green, and finally (iii) automatic approval granted to those making applications for projects through the EC.

Cumaratunga called the briefing in the wake of Friday’s (23) conclusion of hearing of petitions filed by those opposed to the project on the basis the Bill, as whole, is inconsistent with many provisions of the Constitution. There were also several intervenient petitions defending the Bill. These petitions were heard before a five-judge-bench comprising Chief Justice Jayantha Jayasuriya, PC, Justice Buwaneka Aluwihare, Justice Priyantha Jayawardena, Justice Murdhu Fernando, and Justice Janak de Silva.

 Cumaratunga, in addition to being an SLPP lawmaker, also expressed views on the Bill in his capacity as the Chairman of the nationalist civil society pressure group Yuthukama. Yuthukama is represented in the current Parliament by two lawmakers – Cumaratunga and Anupa Pium Pasqual who entered Parliament from the Kalutara district.

At the commencement of the briefing, the MP appealed to the media to ensure priority to the Port City issue though they could raise any other matter pertaining to simmering controversy over the Easter Sunday carnage, the Covid-19 rampage, and the developments since the Presidential Political Victimisation Commission handed over its report to President Gotabaya Rajapaksa on Dec 8, 2020. 

Having compared the proposed Bill, with two concept papers submitted during the previous UNP-led administration, and the current, on Sept 09, 2019 and June 16, 2020, respectively, lawmaker Cumaratunga questioned the failure on the part of those who prepared the Bill, at issue, to take into consideration the salient points therein.

The arch nationalist emphasized the responsibility on the part of the SLPP government to take remedial measures on its own, in respect of the Bill, regardless of the position taken by the Supreme Court. With the country crossroads, in the wake of implementation of the mega project, the government couldn’t, under any circumstances, shirk its responsibility to introduce the required changes, he argued.

The Supreme Court is scheduled to convey its ruling to President Gotabaya Rajapaksa and Speaker Mahinda Yapa Abeywardena.

Out of the 145-member SLPP parliamentary group, lawmaker Cumaratunga is the second to express concerns over the Bill. Having fired a broadside at the Bill, Colombo District SLPP lawmaker Dr. Wijeyadasa Rajapakse, PC, represented Ven. Muruththettuwe Ananda Nayaka Thera, Chief Incumbent of the Sri Abhayarama Purana Viharaya and President of the Public Service United Nurses’ Union, Sri Abhayarama, Narahenpita, and Nagashenage Dasun Yasas Sri Nagashena, of 90/12, Gramasanwardana Road, Polwatta, Pannipitiya.

Former President of the Bar Association of Sri Lanka, Dr. Rajapakse’s written submissions in respect of the case filed against the Secretary General of Parliament, Dhammika Disanayake, and Attorney General Dappula de Livera, PC, depicted a far more serious picture than lawmaker Cumaratunga’s criticism.

Having found fault with the incumbent administration for placing the responsibility of naming the EC on the President, MP Cumaratunga stressed that the appointing process should be subjected to parliamentary supervision. The lawmaker pointed out the concept papers presented by the previous government and the present, under the leadership of Prime Minister Mahinda Rajapaksa, underscored the need for the EC to consist of Sri Lankans. Referring to the concept paper presented on June 16, 2020, Cumaratunga said that it proposed the appointment of 10 members, including the Chairman of the EC. The Yuthukama Chief asserted that the issue at hand could be resolved by ensuring the majority of appointments to the EC, depending on the number, be placed under parliamentary supervision whereas the President/the minister in charge of the Port City, too, could make appointments. However, all should be Sri Lankans whereas required foreign experts could be hired for suitable positions, including that of the Director General.

MP Cumaratunga questioned the rationale in giving the sole authority, as regards appointments, to the President, or the minister in charge, in case the government brought the Port City under a particular Ministry.

Cumaratunga pointed out that the Office of the President shouldn’t be the sole decision-making authority, as elections were held every five years. Referring to statements as regards the Greater Colombo Economic Commission (GCEC) law, introduced by late President J.R. Jayewardene, in 1978, lawmaker Cumaratunga said that over the years there were many amendments to the Constitution. The government member expressed the view that the Bill, at issue, couldn’t be discussed taking into consideration JRJ’s law. The Constitution, the lawmaker emphasized, had undergone far reaching changes with the enactment of the 17th (Oct. 2, 2001) 18th (Sept. 10, 2010) 19th (April 28, 2015) and 20th Amendments (Oct 22, 2020) Amendments. Therefore, the incumbent government couldn’t go back on those Amendments, the MP said, pointing out that the two concept papers submitted in terms of the 19th and 20th Amendments envisaged the EC being subjected to the supervision of the Constitutional Council and the Parliamentary Council, respectively.

The 20th Amendment did away with the 10-member CC thereby passing the responsibility to the five-member Parliamentary Council. MP Cumaratunga explained that in terms of those concept papers mentioned, the officials who should be appointed to the EC. They included Governor, Central Bank, Secretary to the Treasury et al.

 

Parliament shirks its responsibilities

 Before discussing concerns in respect of the Bill, at issue, raised by nearly 20 petitioners, including lawmaker Rajapakse, it would be pertinent to take up the failure on the part of those responsible to ensure financial stability. The country is experiencing severe difficulties for want of financial discipline, at every level, with the Parliament yet to take tangible remedial measures. The revelations made by House parliamentary watchdog committees, the Committee on Public Enterprises (COPE) and the Committee on Public Accounts (COPA), as well as the Public Finance Committee (PFC), since the last general election, painted a bleak picture. The situation is so bad, a guarantee that the EC would comprise only Sri Lankan nationals holding responsible positions does not promise a clean administration. It would be pertinent to mention that Sri Lankans, being at the helm of the EC wouldn’t necessarily guarantee safety, security, political stability and uppermost the country’s interest without oversight.

JVP leader Anura Kumara Dissanayake’s hard hitting speech in Parliament, last Friday (23), painted a grim picture of the national economy. The JVPer didn’t mince his words when he named those allegedly responsible for massive waste, corruption and irregularities during successive governments.

Dissanayake pointed out how wrongdoers continued to enjoy political power, regardless of their public exposure. Lawmaker Dissanayake’s fiery speech highlighted Sri Lanka’s overall failure to tackle corruption, now, possibly, even threatening the very survival of the country. The JVP leader cited the Treasury bond scams, perpetrated in Feb 2015 and March 2016, as well as the massive sugar tax scam executed by the present lot. Reference was also made to the payment of a staggering USD 6.5 mn in 2014 to US national Imaad Shah Zuberi, 50, of Indian and Pakistani origins, to lobby the US Government to save Sri Lanka from human rights scrutiny by Washington. The then Rajapaksa government wired a total of USD 6.5 mn to a venture capitalist and political fundraiser who was sentenced recently to 12 years in a federal prison in the US on charges of embezzlement.

According to the US Department of Justice, Sri Lanka hired Zuberi of Arcadia, California, in 2014, to improve the country’s image in the United States, in the wake of investigations undertaken by the Geneva-based United Nations Human Rights Council. Of course, in this instance the then government would have turned to a questionable lobbyist out of sheer desperation, like a drowning man clutching at a straw, as the powerful West piqued by the ignominious defeat of the LTTE at the hands of our security forces, which they had always claimed were incapable of defeating it, was and still is out to punish us for defying their mantra. 

Zuberi had promised to make substantial expenditures on lobbying efforts, legal expenses, and media buys, which prompted Sri Lanka to agree to pay Zuberi a total of USD 8.5 million over the course of six months, in 2014. But actual payments amounted to USD 6.5 mn.

Examination of recent statements, issued by the Communication Department of the Parliament, pertaining to proceedings at the COPE, COPA and PFC, chaired by Prof. Charitha Ratwatte, Prof. Tissa Vitharana and Anura Priyadarshana Yapa, respectively, revealed the absence of proper scrutiny at any level in all sectors. Let me briefly discuss the shocking disclosure of the happenings at the Football Federation of Sri Lanka at the recently concluded COPE proceedings. The watchdog committee questioned a range of irregularities during the tenure of Attorney-at-Law Manilal Fernando as its President. And, finally, he was forced to quit because of those controversial dealings. The COPE queried how a sum of Euro 40,400 (approximately Rs 6 mn) received from the Italian Football Players’ Association to construct a football ground in his home town, Kalutara, ended up in Fernando’s private account. Prof. Herath’s committee also questioned the misappropriation of a sum of USD 60,000 (nearly Rs 6 million) provided by the Asian Football Federation to conduct competitions, a sum of Rs.10 mn given by a private company to construct 20 houses for tsunami victims and a sum of USD 200,000 donated by the Asian Football Federation.

 It also transpired, during the COPE proceedings, that the current President of the Federation, Anura de Silva, has submitted an affidavit to the court claiming that financial irregularities hadn’t taken place in spite of the Financial Crimes Investigation Division (FCID) moving the courts. The committee pointed out the seriousness in submitting such an affidavit.

 In addition, it is reported that Anura de Silva now wants to quit from the post of President of the Sri Lanka Football Federation to make way for Manilal’s son to climb to that post!

 Prof. Herath directed both Manilal Fernando and Anura de Silva to appear before COPE on May 06. COPE also dealt with controversial circumstances under which elections to the Football Federation of Sri Lanka was conducted with the Chairman of the Elections Committee as well as two other members given Rs 750,000 and Rs 600,000 each, respectively. The crisis at the Football Federation of Sri Lanka should be examined against the backdrop of the disgraceful conduct of the Sri Lanka Cricket (SLC) administrations.

Over the past couple of decades, under the watch of successive governments, the financial discipline has deteriorated to such an extent that the national economy is in deepening turmoil. Therefore, the Port City undertaking is a vast challenge that requires the highest consideration and, under any circumstances, the public shouldn’t be duped by the promise that Sri Lankan nationals, holding responsible positions at the helm of the EC, would ensure the best interests of the country.

 

Wijeyadasa isolated

 Contrary to lawmaker Wijeyadasa Rajapakse’s high profile stand as regards the Port City project, the SLPP constituents endorsed it. The National Freedom Front (NFF) parliamentary group threw its weight behind the Port City project. Pivithuru Hela Urumaya (PHU), too, defended the project while those appointed on the SLPP National List, except Yuthukama leader Cumaratunga, refrained from causing any friction. However, Wijeyadasa Rajapakse, who had represented both the SLFP and the UNP cabinets since his entry into parliamentary politics, pursued his agenda.

 Let me verbatim the section headlined ‘Threat to the National Security’ in Dr. Rajapakse’s written submissions to the SC: “The zone has been exempted from the Customs Ordinance. The Customs is debarred from exercising its powers within the Zone and the people in the Zone. There may be importation of prohibited substances, such as drugs, weapons, etc. The South jetty of the Colombo Port is situated, adjoining the said Zone, and it is controlled by the company belonging to the Chinese government.

As the proposed Commission is formed, in the event of any violation or disregard of International Charters and Treaties including, UN Charter, UN Charter for Human Rights, International Covenant on Civil and Political Rights, War Crimes, Crimes against Humanity within the said zone, the Sri Lankan State is responsible, not the purported commission.

There is a turmoil situation prevailing in the region, as well as in the World, due to the power struggle between China on one side and India, the USA, Europe, Japan on the other side. This kind of unprecedented facilitation to China would undoubtedly expose the whole country and the whole nation to danger. When presenting Bills of this nature, it is necessary to take geo-political factors into consideration.

In the course of argument, it was submitted that the government of Sri Lanka could not be able either to resist and control the import of any prohibited substance, including weapons of mass destruction, such as nuclear, atomic, multi-barrel, etc., as the operation of the Customs Ordinance is excluded. On 21st April, a ship loaded with Uranium, meant to be used for nuclear, which belongs to China, docked at the Hambantota Port by misleading the Authorities. The Government was able to direct it to leave the Port because that power of the government was preserved in the Agreement. But the present Bill does not contain any such safeguard.

One must not forget that the Colombo South Jetty is adjoining the zone. Therefore, it cannot be ruled out that the Chinese government will not resort to such devastation, compelling the other super powers to destroy the economy of the country and to expose national security to danger.

The total consideration of the Bill, as a whole is inconsistent to the rudimental principles of our Constitution and it shall be ruled out ab initio.”

 Former Ports and Shipping Minister Arjuna Ranatunga, in a recent interview with the writer over the phone, pointed out how Sri Lanka lost the strategic Hambantota port, to China, in 2017, and was now about to suffer a similar fate as regards the Port City project. Ranatunga recalled how the Sirisena-Wickremesinghe administration went ahead with the Hambantota project in spite of him giving up the Ports and Shipping portfolio. The country would one day pay a very heavy price for irresponsible actions of politicians and officials, the outspoken defeated UNP candidate, at the 2020 August general election, told the writer.

House watchdog committees paint a bleak picture as SLPP seeks passage of Colombo Port City Bill

 

SPECIAL REPORT : Part 364

Published

  2021/04/21

by Shamindra Ferdinando

Justice Minister M.U.M. Ali Sabry, PC, on Sunday (18) declared that the commissioning of the Colombo Port City was an occasion to celebrate. Declaring that the high-profile project is turning point for post-war Sri Lanka, Minister Sabry explained how the mega project could transform the country.

Sabry, who had served as the Treasurer and as the Deputy President of the Bar Association (BASL) on many occasions, assured there was absolutely nothing to worry about the project.

 Former President of the BASL U.R. de Silva, PC, Chief Advisor to the Justice Ministry, too, defended the project. Among those who defended the project were lawmakers Prof. G.L. Peiris, Keheliya Rambukwella, Ajith Nivard Cabraal, Shehan Semasinghe and Namal Rajapaksa.  

 The government responded following an unexpected attack from former President of the BASL Dr Wijeyadasa Rajapakse, PC. If the former Justice Minister, while being a member of the current administration’s parliamentary group, had not mounted such a frontal attack out of the blues, the government wouldn’t have had to mount such a strong defence of the Colombo Port City project. Wijeyadasa Rajapakse, attack was followed by the BASL declaration that it would move the Supreme Court against the establishment of an Economic Commission (EC) to manage the Colombo Port City. Saliya Pieris, PC, in his capacity as the President of the BASL, moved the SC against the government move. In nearly 20 petitions filed against the proposed Bill, the defendant is Attorney General Dappula de Livera, PC.

One-time internationally recognised top law academic Prof. Peiris emphasised that the proposed Bill was in line with the Constitution and received the sanction of the AG before being presented to the Cabinet of ministers.

It would be pertinent to mention that the CHEC Port City Colombo (Pvt) Limited had been the main sponsor of the National Law Conference 2020 on Feb 14, 2020 at Jetwing Blue, Negombo, during the tenure of Kalinga Indatissa, PC, as the President of the BASL. The CHEC Port City Colombo (Pvt) Limited had been among nearly 40 sponsors. USAID had been among the group. On the following day, Dr. Harsha Cabral, PC, and Dr. Asanga Gunawansa addressed the members on ‘Port City-Development of the law, local and international arbitration’. There were several related sessions which dealt with offshore financing, banking investment and FDI and its legal regime. Saliya Pieris and Manohara de Silva addressed the gathering on fundamental rights, labour laws and conflict of laws.

At the end of the inauguration of the event, on Feb 14, CHEC Port City Colombo (Pvt) Limited distributed a 51-page report titled ‘Economic Impact Assessment of the Port City Colombo’ prepared by leading multinational audit firm PricewaterhouseCoopers (Pvt) Limited. The distribution of the report followed the briefing given by the CHEC Port City Colombo (Pvt) Limited. In spite of the PricewaterhouseCoopers (Pvt) Limited declaring the report was meant for general guidance as regards matters of interest only and should be taken as investment advice, it presented an attractive picture of the project.

The Presence of President Gotabaya Rajapaksa, Chief Justice Jayantha Jayasuriya, PC, Attorney General Dappula de Livera PC and Justice Minister Sabry PC underscored the importance of the event. The writer was present on the occasion.

 

Clash over China project

 All political parties should bear in mind that the current pathetic state of the economy cannot be blamed on China or any other country. If Parliament fulfilled its primary obligations as regards ensuring financial discipline and enactment of laws, the country wouldn’t have been in an extremely dicey situation, financially. Politicians now opposing the China led project, as well as those backing it, should keep in mind how the political parties, they represented ruined the national economy through their profligacy and downright mismanagement.

During the yahapalana administration, BASL received quite a bit of negative media coverage following revelation it received Rs 2.5 mn sponsorship from the disgraced Perpetual Treasuries Limited (PTL) for the three-day Law Asia 2016 Golden Jubilee Conference in August, 2016 during President’s Counsel Geoffrey Alagaratnam’s tenure as its President. The sponsorship was accepted over a year after the first Treasury bond scam perpetrated in late Feb 2015 caused a national stir.

A section of the Opposition, some members of the civil society, and SLPP Colombo District MP Dr. Wijeyadasa Rajapakse, PC, are up in arms over the proposed establishment of an Economic Commission (EC) to manage the Colombo Port City. Some trade unions, affiliated to political parties, too, are opposed to the move. As to how sincere their loud outcry is yet to be determined by the highest court in the land.

 JVP leader Anura Kumara Dissanayake, MP, compared what he called a future Chinese administration of the Colombo Port City with that of China-administered Hong Kong. The same JVP turned a blind eye when the yahapalana government with which they were then openly cavorting with, gave away the Hambantota Port on a platter to Beijing on a 99-year lease.

Those opposed to the proposed EC asserted that as the Colombo Port City would be outside the purview of Parliament, it wouldn’t be subjected to domestic laws. The Cabinet of ministers, recently sanctioned legislation that once gazetted and passed in Parliament it would enable the setting up of an EC.

Samagi Jana Balavegaya lawmaker Attorney-at-Law Lakshman Kiriella warned of the Colombo Port City becoming a federal structure beyond the financial control of the Central Bank, Monetary Board and the Finance Ministry. Among those who moved the Supreme Court against the proposed Bill are the BASL, Purawesi balaya, Centre for Policy Alternatives (CPA), the JVP and the UNP. Three civil society activists, Oshala Herath, Dr. Ajantha Perera and Jegan Jegatheeswaran, too, filed cases.

 Rebel lawmaker Wijeyadasa Rajapakse last Thursday (15) flayed the entire political system with the focus on the incumbent government over the move. MP Rajapakse basically repeated what JVP leader Anura Kumara Dissanayake said several days ago. What is really interesting is where the former Justice Minister addressed the media. Many an eyebrow was raised when the MP lambasted the government at Abayaramaya, Narahenpita, with Ven Muruththettuwe Ananda by his side. 

Some monks are sullying the robe by getting involved in virtually every other brouhaha raised in the political arena, when they should essentially be guiding the adherents of Buddha’s teachings on that path.

 On the following day, the former minister claimed that President Gotabaya Rajapaksa blasted him over the statement made on the previous day. Lawmaker Rajapakse acknowledged that he wouldn’t hesitate to take a decision regarding his political future with the SLPP government. The government parliamentary group is likely to be undermined by this development. It would be pertinent to mention that the government overcame opposition to the 20th Amendment to the Constitution from its ranks. The 20th Amendment required two-thirds majority.

President Gotabaya Rajapaksa presented the Colombo Port City EC Bill to the Cabinet of ministers. The 76-page Bill provides for the establishment of an EC authorised to grant registrations, licences, authorisations, and other approvals to carry on businesses and other activities in the Special Economic Zone (SEZ) to be established within the Colombo Port City.

The proposed EC will consist of not less than five members and not more than seven members, including its Chairman and they will be appointed by the President, under whose purview the Colombo Port City functions.

The Bill, titled the ‘Colombo Port City Economic Commission Act’, is expected to be presented to Parliament within the next few weeks.

Lawmaker Dissanayake declared that Parliament should defeat the move. However, with the ruling party enjoying a two-thirds majority in Parliament with its group numbering 145 members, the dilapidated Opposition is not in a position to thwart the government’s mega project.

 

A US warning

Against the backdrop of continuing US-China rivalry, Sri Lanka should be extremely cautious in finalizing the Colombo Port City Economic Commission Act. Unsolicited and clearly interfering, the US advice into the country’s internal affairs in this regard shouldn’t be ignored. 

The media recently quoted the US Ambassador to Sri Lanka and the Maldives Alaina Teplitz as having said: “Any legislation relating to the Port City has to be considered very carefully for its economic impact. And of course, among those un-intended consequences could be creating a haven for money launderers and other sorts of nefarious actors to take advantage of what was perceived as a permissive business environment for activities that would actually be illegal.” Teplitz was further quoted as having said: “I do recognize that the government of Sri Lanka wants to take advantage of the investment that has already been made in creating the Port City foundation, but the legislation really needs to be reflected to address these challenges and to be careful of what it might be to open doors to bad practice and unfair competition for the rest of the country.”

The country’s tax revenues have plunged in 2020, raising concerns over debt and the fiscal path, credit downgrades and Sri Lanka’s ability to sustain vital public services to the people, while managing loss-making state enterprises.

Let me examine shocking revelations in Parliament, pertaining to waste, corruption and irregularities as the fiscal environment continued to deteriorate. Evaluation of reports released by the Communication Department of Parliament as regards inquiries conducted by the Committee on Public Enterprises (COPE), the Committee on Public Accounts (COPA) and the Committee on Parliamentary Finance (COPF) chaired by Prof. Charitha Herath, Prof. Tissa Vitharana and Anura Priyadarshana Yapa, respectively, would enable the public to grasp the gravity of things that had been perpetrated and the resultant situation.

The country celebrated Sinhala and Tamil New Year in an utterly bad financial environment, undoubtedly exacerbated by the pandemic as has happened world over. Televised celebrations also involving lawmakers representing the SLPP and the SJB highlighted the absurdity of a deteriorating situation. Lawmakers joined celebrations amidst continuing controversy over unprecedented slashing of duty on sugar imports, importation of contaminated coconut oil, destruction of forests and unbridled corruption.

 

Horrifying picture

Statements issued by the Communications Department revealed a horrifying picture. A pathetic situation caused by those who enjoyed political power since the introduction of the JRJ Constitution in 1978. Interestingly the two major political parties primarily responsible for the current predicament are no longer in power. The last general election, in August 2020 reduced the UNP to just one National List MP. The SLFP parliamentary group consists of 14 members with only one of them elected on the SLFP ticket. The rest entered Parliament through the SLPP. Political parties essentially engineered, encouraged and conveniently turned a blind eye to corruption. The examination of the House Communication Department statements revealed how the political set up, public sector and the private sector perpetrated corruption.

Parliament faces challenges

 COPE Chairman Prof. Herath explained the growing financial indiscipline among those enterprises coming under his purview when he presented their first report to Parliament on March 10, 2021. SLPP National List lawmaker alleged that the power of Parliament to supervise public sector enterprises had been challenged. Prof. Herath cited the Auditor General’s report on the Lakvijaya coal-fired power complex at Norochcholai, Puttalam, as an example to highlight the financial lawlessness. One-time Media Secretary questioned how some public sector enterprises were excluded from the AG’s scrutiny.

Another SLPP lawmaker Shantha Bandara pointed out how various public sector institutions blatantly ignored instructions issued by parliamentary watchdog committees.

Speaker Mahinda Yapa Abeywardena, himself under fire for accommodating the members of his family and relatives on his staff assured that ways and means to address those issues would be addressed through the proposed new Constitution. Abeywardena insisted that the current situation could be addressed only through the enactment of a new Constitution.

Can Speaker Abeywardena’s assurance be accepted under an extremely volatile fiscal situation? How can tangible measures required to address the crisis be further delayed on the assurance that such issues would be dealt with through the proposed new Constitution. Unless Parliament accepted its responsibilities namely (a) enactment of new laws and (b) financial discipline, the country faces an extraordinary crisis.

The statement issued on April 12 by the Chinese Embassy in Colombo, ahead of the Sinhala and Tamil New Year, is a grim reminder of Sri Lanka’s predicament. Sri Lanka’s Ambassador in Beijing Dr. Palitha Kohona signed the loan agreement with the China Development Bank at the Sri Lankan Embassy in Beijing. The latest loan is the balance of USD 1 billion, out of which USD 500 million was received last year.

Before examination of COPE, COPA and COPF reports, let me remind what Secretary to the Finance Ministry S.R. Attygalle told Parliament on Dec 07, 2020 in response to a query pertaining to discrepancy in pensions. The Communications Department of Parliament quoted Attygalle as having said that the annual salary, pension and gratuity payments cost the Treasury a staggering Rs 1.1 trillion. In addition to that amount, the absorbing of 50,000 graduates to the public sector in terms of a 2021 budget proposal as well as 100,000 employment opportunities to the poorest of poor families, too, would cost a hefty sum.

When the writer sought a clarification from Attygalle on April 15th morning, the official explained the salaries amounted to a staggering Rs 800 bn annually and the rest for pension and gratuity.

Public finances are in turmoil. COPE, COPA, COPF as well as Parliamentary Consultative Committees essentially highlight waste, corruption and irregularities. The following are some samples of revelations.

The COPA on March 26, 2021, revealed the failure on the part of the Inland Revenue Department to collect taxes. The Communications Department reported how the Inland Revenue Department received 6,878 dishonoured checks worth Rs. 240 million as at 31 Dec, 2020. It was also revealed at the COPA meeting that Court cases had been filed by Inland Revenue Department in the Colombo Magistrate’s Court to recover Rs. 2670 million in tax arrears from casinos.

The Communications Department of Parliament on March 24, 2021, on the basis of Consultative Committee of the Ports and Shipping Ministry, reported a highly contentious matter involving Sri Lanka Customs. The Consultative Committee was told how due to failure on the part of the Sri Lanka Ports Authority (SLPA) to pay due taxes to the Customs for the importation of gantry cranes, the latter was now entitled to 50 per cent of the fine imposed on the SLPA. The Consultative Committee, while asserting such a payment to the Customs was a major problem recommended talks with relevant officials, including the Secretary to the Treasury to recover the money as a payment to the government. The Communications Department quoted Ports and Shipping Minister Rohitha Abeygunawardena as having said that the issue at hand should be also discussed with the COPA.

The Communication Department of Parliament on March 2, 2021 reported the shocking revelation of how Lanka Mineral Sands Limited caused substantial revenue loss at a time the country was facing an extremely serious financial crisis. The report dealt with the COPE meeting held in Parliament on the same day. COPE Chairman Prof. Charitha Herath instructed the Secretary to the Ministry of Industries, Anusha Palpita, to immediately investigate and submit a report on the tender awarded by Lanka Mineral Sands Limited for the sale of 85,000 metric tonnes of ilmenite at USD 147 per tonne to the third-place bidder instead of the prospective winning bidder, who had offered the highest price of USD 165 per tonne of ilmenite. Lanka Mineral Sands claimed that their decision was based on a recommendation made by a tender subcommittee appointed by the Cabinet of Ministers and that the transaction received Cabinet approval. Questioning the rationale in awarding the tender to the third-placed bidder, COPE discussed the possibility of the Lanka Mineral Sands Limited deceiving the Cabinet of Ministers. The inquiry revealed that the current price of a metric tonne of ilmenite is close to USD 240. Many an eyebrow was raised when it was revealed that substantial part of the sold stock to a buyer in October 2020 was still stored in the Pulmudai at the expense of the Lanka Mineral Sands. The buyer hadn’t paid the full payment, the COPE was told.

The Island received the entire set of statements issued by watchdog committees. A communiqué issued on March 15, 2021 by the Communications Department of Parliament revealed the failure on the part of the Finance Ministry, Inland Revenue and the Justice Ministry to take remedial measures in respect of laws delay. Their failure seriously affected the revenue collecting process.

The Commissioner General of Inland Revenue H. M.C. Bandara has told COPA that his department had not been able to recover billions of rupees in tax arrears due to lengthy judicial process and the attendant delays. The COPA assured that the Ministry of Justice, the Ministry of Finance and the Inland Revenue Department would be summoned for a discussion. That promised meeting is yet to take place. During the COPA meeting held on March 10, 2021, it was also pointed out the deficiencies in a list that contained names of tax defaulters. The COPA also pointed out the shortcomings in Legacy and Ramis computer systems that controlled tax files and the revelation of Rs 107 bn in tax arrears according to Legacy system, out of which only Rs 224 mn have been recovered exposed the chaotic situation.

The government needs to address shortcomings in the revenue collection process without further delay. In an utterly corrupt system, delays, failures and shortcomings seem to be deliberate and well calculated. With the country on the brink of financial disaster, it would be the responsibility of parliament to take remedial measures. Perhaps, the Presidential Commission inquiring into the Customs should summon parliamentary watchdog committees at the onset of public sittings to obtain a clear picture of the ground situation before it proceeds.

 Readers should not think we are merely scare mongering, but the truth remains that we must be responsible for our future instead of ever being ready to beg for handouts or rescue packages from outside. True that unlike most powerful Western nations and their lending arms China has not been behaving like the proverbial Shylock. But we have an inherent duty not to live beyond our means.

leaves out Gash dispatches, Swiss embassy abduction drama and India’s accountability

 

SPECIAL REPORT : Part 363

Published

  2021/04/7

by Shamindra Ferdinando

Veteran journalist Tim Sebastian interviewed Foreign Secretary, retired Admiral Prof. Jayanath Colombage, in the immediate aftermath of the Geneva-based United Nations Human Rights Council (UNHRC) adopting accountability resolution in respect of Sri Lanka.

Twenty-two countries voted for the resolution, 11 against, whereas 14 abstained. The vote on Sri Lanka took place on March 23. Among those who abstained was India whose intervention here in the 80s caused a war that was brought to a successful conclusion in May 2009. But Sebastian was only interested in accountability on Sri Lanka’s part. He wasn’t concerned about Adele, who played a significant role in building a female fighting cadre for the LTTE, either.

“In the last few days, the UN Human Rights Council passed a landmark resolution highlighting your government’s failure to ensure accountability for human rights violations and mandating UN investigators to collect and preserve data that can be used in the future judicial proceedings. They did that Mr. Secretary because your abject failure to do it yourself and because of the worsening human rights climate in your country. Aren’t you ashamed of that?”

It was internationally acclaimed Sebastian’s opening question to Foreign Secretary Colombage in ‘CONFLICTZONE’ interview titled: Is Sri Lanka on the brink.

Admiral Colombage responded: “Well, Tim let me say the World War ended 78 years later… earlier and we still see the residual effects on the environment on the physical things and the Good Friday agreement was in 1998 and there are 116 walls which is called peace walls. Still…”

Sebastian interrupted Colombage. “We are not talking about Northern Ireland; Mr. Secretary We are talking about Sri Lanka and your failure to ensure accountability for human rights violations… which you have denied in other interviews.”

One-time Navy Commander, and the Additional Secretary to President Gotabaya Rajapaksa on Foreign Relations, Prof. Colombage received appointment as the Secretary to the Foreign Ministry following the last general election.

Admiral Colombage, who had served the SLN for 36 years, was its 18th Commander. He received the command in 2012, three years after the end of the war. Following his retirement, Colombage served as the Director of the Centre for India-Sri Lanka Initiatives and Law of the Sea Centre at the Pathfinder Foundation. At the time of his appointment, as Foreign Secretary, Colombage was the Additional Secretary to the President on Foreign Relations and the Director General of the Institute of National Security Studies Sri Lanka (INSSSL).

 

Relying on a backbencher’s speech

Let me examine the latest Geneva resolution against the backdrop of the ‘CONFLICTZONE’ interview and the Daily Mirror interview, titled ‘Govt. committed two mistakes’, with one-time Permanent Secretary to the Justice Ministry Dr. Nihal Jayawickrama published on March 27, 2021.

Responding to a query, Dr. Jayawickrama asserted: The mistake that the government appears to have made was to think that it was all about “40,000 deaths”, and to rely on a backbencher’s speech made in the House of Lords. It was never about that. Another mistake that the government appears to have made was to convince itself that the Resolution was initiated by “Diaspora Tamils” when it was not.”

Tamil Diaspora, based in the UK, Australia, and Canada, vigorously circulated the article in the wake of accusations the government compelled the newspaper to ‘kill’ it. The paper denied the accusations. The Global Tamil Forum (GTF) spokesperson Suren Surendiran tweeted: “Remarkably honest replies from Dr. Jayawickrama to some pertinent questions from the “Daily Mirror” Surendiran posted the entire text alleging government-imposed censorship.

Dr. Jayawickrama referred to Lord Naseby as a backbencher whereas Sebastian never referred to the Conservative Party politician’s disclosure in the House of Lords on Oct 12, 2017 or Admiral Colombage cared at least to mention it. If the government relied on Lord Naseby’s revelations, as Dr. Jayawickrama asserted, the former could have exploited the disclosure. The incumbent government conveniently refrained from taking advantage of Lord Naseby’s ‘work’ much to the dismay of the former Royal Air Force pilot who exposed the British duplicity.

 

A fresh Geneva initiative

Sebastian’s reference to fresh authorisation for UN investigators to collect and preserve data that can be used in the future judicial proceedings should have prompted Admiral Colombage to remind British television journalist and novelist how the UK government suppressed wartime dispatches from its High Commission in Colombo (January-May 2009). The proposed inquiry is scheduled to take place over a period of 12 months, commencing Sept 2021. In fact, during the entire interview, Sebastian conveniently never referred to how the UK suppressed dispatches from Colombo. Lord Naseby obtained some sections of the dispatches after nearly a three-year struggle. He had to seek the intervention of the UK Information Commission to lay his hands on those dispatches.

Leader of Sri Lanka Core Group in addition to being UNHRC member, the UK still refuses to release dispatches despite Geneva authorising a new Inquiry Team, led by a Senior Legal Advisor, to collect all available evidence pertaining to the war and post-war events. Those desperate to prevent the full disclosure of British dispatches from Colombo, obviously advantageous to Sri Lanka, call it a political statement. It was certainly not. Former Chief Justice Sarath Nanda Silva, in an interview with ‘Get Real’ anchor Johnney Mahieash, and subsequent queries from the writer, asked why the UK wanted to suppress dispatches from its own man in wartime Colombo Lt. Col. Anthony Gash who served as the British Defense Attaché throughout the Vanni war. The former CJ was of the view that Geneva should seek access not only to the UK dispatches but from other major countries, particularly the US, India, Germany and Canada. He pointed out that the wartime US Defense Advisor Lt. Col. Lawrence Smith contradicted war crimes accusations in 2011, six years before Lord Naseby revealed the existence of British wartime dispatches.

 

NPC and GTF back thorough inquiry

The Island sought National Peace Council (NPC) Executive Director Dr. Jehan Perera’s views on the following query: “Geneva set up a new inquiry mechanism at a cost of USD 2.8 mn to gather and examine evidence and information pertaining to the whole gamut of war crimes allegations and current developments. What is your stand on SLPP Chairman Prof. G.L. Peiris public call to the UK to submit Gash reports against the backdrop of the Samagi Jana Balavegaya MP Dr. Harsha de Silva, who once led the government delegation to the UPR (Universal Periodic Review) of Sri Lanka’s human rights record at Geneva backing the government call? Dr. de Silva’s all available info should be made available to the new Geneva inquiry team.”

Dr. Perera responded: “All evidence should be placed before the UN investigation unit and this includes the dispatches of Lt Col Anthony Gash as revealed by Lord Naseby.  The UN unit needs to seek that information itself to get a rounded perspective on the problem.

 “On the other hand, if the government formally makes a request for the Gash reports it will be accepting the legitimacy of the UN unit which is not its current position. Instead I would wish that the government resolves the issues laid out in the various UN reports through internal mechanisms that have the support of the political parties, including the minorities, within the country. 

“It is only if the country is internally united that we can go on the path of development that the government intends and respond successfully to international pressures. Otherwise it looks like our country is locked in a vicious cycle.”

Dr. Perera represented the country at the Geneva sessions during the yahapalana administration. 

The writer posed the same question to GTF’s Surendiran, who, too, backed examination of all evidence and information available. Surendiran said: “Of course all available evidence should be made available to the investigative team that will collect and analyse this evidence. No one should hinder that process of collection of evidence, be it the UK Government or the Government of Sri Lanka. In that regard, Sri Lanka if it has nothing to fear about should allow the investigators free access so that the collection process can be comprehensive and complete.”

 In fact, Wikileaks revelations pertaining to Sri Lanka, too, should be examined along with submissions received by the UNSG’s Panel of Experts’ (PoE/Darusman Report) that paved the way for the 2015 co-sponsorship of an accountability resolution. Would the new Geneva re-visit previously collected information, particularly by the PoE, covered by UN a 20-year confidentiality clause (2011-2031)?

 

UK bending backwards to protect

relations with Lanka

The FCO (Foreign and Commonwealth Office), in its objections filed with the Information Commission, following Lord Naseby’s bid to gain dispatches from Colombo, stated; “Lt. Col. Gash was the FCO’s defense attaché at the British Commission in Colombo during the closing stages of Sri Lanka’s civil war. Many of his dispatches contain information provided directly to him by his contacts in the Sri Lankan government, the Sri Lankan Army or other military sources. His reports indicate, he had access to reports on troop movements, Sri Lankan military strategic thinking, the movements of the LTTE and assessments of casualty figures. The effective conduct of international relations depends upon the free, frank and confidential exchange of information such as this. If the UK does not respect these confidences, then its ability to protect and promote UK interests through international relations will be hampered which will not be in the public interest.

Subsequently, the FCO asserted that it was of the view that releasing the information redacted on the basis of section 27(l) (a) would be likely to prejudice the UK’s relationship with Sri Lanka and would negatively impact on the information that they would be willing to exchange with the UK in the future. It further stated, the disclosure of the withheld information, in this case, was not in the public interest as it would be likely to damage the bilateral relationship between the UK and Sri Lanka. This would have the effect of reducing the UK government’s ability to protect and promote UK interests through its relations with Sri Lanka.”

 The Information Commissioner, on June 26, 2016, dismissed Naseby’s appeal for full disclosure of the Gash dispatches.

So, according to the FCO, disclosure of Gash dispatches would harm the UK’s relations with Sri Lanka. In the absence of proper examination of British role in promoting terrorism in Sri Lanka, successive UK governments allowed the LTTE a free hand. Wikileaks exposure of a secret meeting between the Norwegians (handling disastrous peace process) and LTTE theoretician Anton Balasingham in the immediate aftermath of Foreign Minister Lakshman Kadirgamar’s assassination in August 2005 underscored the privileged status enjoyed by the LTTE. Balasingham, one-time British High Commission employee who received British citizenship for services rendered to Her Majesty’s government lived freely there until his death due to natural causes in Dec 2006.

Over the years, the UK provided the wherewithal required by the LTTE to wage war in Sri Lanka. The British. contribution grew over the years in the wake of former Indian Prime Minister Rajiv Gandhi’s assassination in May 1991. It must be noted that the UK only removed the LTTE International Secretariat, established in London for many years, only after it assassinated Rajiv Gandhi for the obvious reason that its presence there was becoming too embarrassing even to the British. In fact when a visiting journalist from The Island, accompanied by a group of media persons from several countries, raised the issue of the LTTE having a big presence in the British capital during a visit to BBC Headquarters at Bush House in Central London around the time of the Rajiv assassination that year, he was given the lame excuse that the Tigers had not violated any UK laws. Despite the much-publicised British proscription of the LTTE, the latter operated a major fund-raising project that funded their war until the very end.

Perhaps, Foreign Secretary Colombage, during the interview with Sebastian, should have referred to the Wikileaks revelation of the then British Foreign Secretary David Miliband and his French counterpart Bernard Kouchner making a desperate bid to halt the military offensive on the Vanni east front. Towards the end of the ‘CONFLICTZONE’ interview, Sebastian queried about Inspector Nishantha Silva fleeing the country in the immediate aftermath of the 2019 presidential election.

 

Focus on Shani, Nishantha

Referring to the arresting of SSP Shani Abeysekera, Director, Criminal Investigation Division (CID) who inquired into several key human rights cases, Sebastian said: “…and another Nishantha Silva from the same Division had to leave Sri Lanka because of threats immediately after the last presidential election and you tell me that is the way a democracy which you claimed to have pursues justice does not look like it? Does it? Questioning how Nishantha Silva left the country suddenly, Prof. Colombage alleged it was all part of a conspiracy while strongly denying Sebastian’s accusation the officer was threatened. “All these things were planned. They were probably given lots of money to do these things…” Sebastian insisted: “You do not know that Mr. Secretary…”

It would have been better if Prof. Colombage pointed out that the Swiss Embassy involvement in the Nishantha Silva affair against the backdrop of one of its employees Garnier Francis (former Siriyalatha Perera) falsely accusing government agents of abducting her outside the mission and sexually abusing her. Sebastian conveniently refrained from referring to Garnier who had been Silva’s contact at the Swiss mission. The Swiss went to the extent of trying to evacuate Garnier and her family in a special air ambulance after their project meant to smear President Gotabaya Rajapaksa went awry. President Gotabaya Rajapaksa opposed the move to evacuate them. If not Garnier, too, would have ended up in Switzerland and a key campaign issue against Sri Lanka.

At one-point Sebastian chided Prof. Colombage whether he was proud of living in a country where child killers get presidential pardon? Sebastian was referring to President Gotabaya Rajapaksa releasing a soldier convicted of killing several persons, including children in the Jaffna peninsula. Colombage responded well, pointing out how post-war, Sri Lanka rehabilitated 12,000 terrorists, including children. Colombage posed a pertinent question whether presidential pardon is available only in Sri Lanka. Sebastian insisted he focused on Sri Lanka and not the rest of the world. Perhaps, Prof. Colombage should have reminded Sebastian how funds made available by those living in the UK prolonged the war in Sri Lanka. None of those shedding crocodile tears today bothered to protest when the LTTE used children as cannon fodder. The fact that children were used in suicide attacks, too, cannot be forgotten. Didn’t Rajiv Gandhi perish in a suicide attack carried out by a female Tiger cadre? A proper inquiry is required to ascertain and identify those members of Sri Lankan terrorist groups living in the UK and the rest of the world. The proposed new Geneva probe can facilitate Sri Lanka’s efforts to track down those living overseas, under assumed names, while they continued to be categorized as war disappeared.

Sebastian also raised the issue of disappearances and missing. In fact, former Prime Minister Ranil Wickremesinghe explained the cases of missing and disappearances during the yahapalana administration. Wickremesinghe pointed out how the so-called disappeared either died in combat or were now living overseas.

Prof. Colombage responded: “…most of the human rights defenders are receiving money from the West. We know their bank accounts. We know how much they have received.” The Foreign Secretary alleged they were not bona fide human rights defenders. Sebastian hit back: “You just smeared the whole lot of them in one sentence…”

Now that Prof. Colombage has quite rightly raised funding received by NGOs/civil society groups, let there be a public disclosure of the funding secured over the years. A Norwegian examination of its involvement in Sri Lanka released in 2011 revealed substantial funding made available to various civil society groups. The Norwegian report revealed how generous Oslo had been to those who facilitated its Sri Lanka project. As Geneva stepped up pressure on the country, the government should approach the issues at hand sensibly. Geneva should be priority No 1. The government cannot forget that no less than Commander of the Army Gen. Shavendra Silva, earlier the General Officer Commanding (GoC) of the celebrated 58 Division/formerly Task Force I was blacklisted by the US. Sebastian warned Prof. Colombage of dire threats posed by targeted sanctions imposed by individual countries. Member states might start applying targeted sanctions, asset freezers and travel bans against your state officials and others…. Are you ready for that?

Prof. Colombage responded: “If individual countries have a separate agenda not necessarily human rights but using human rights as a weapon there is very little we can do. Let us wait and see.” However, the former Navy Commander missed a golden opportunity to ask Sebastian what he thought of the Tamil community overwhelmingly voting for war-winning Army Chief the then General Sarath Fonseka at the 2010 presidential poll. Fonseka won all predominately Tamil speaking electoral districts in the northern and eastern districts, including Jaffna. In fact, bogus human rights campaign should have ended the day, Tamils declared their support to tough talking Fonseka, who survived a suicide attack in April 2006 to finish off the LTTE. If the LTTE succeeded in eliminating Fonseka and the then Defence Secretary Gotabaya Rajapaksa in 2006, terrorism would have triumphed. But fortunately for Sri Lanka both survived two separate LTTE suicide attacks targeting them in Colombo itself. That is the undeniable truth.