Wednesday 2 June 2021

An assurance on China-backed Port City project, as Indian assets fought fire on X-Press Pearl

 SPECIAL REPORT : Part 370

Published

  

Prof. Peiris, flanked by Justice Minister Ali Sabry, PC (left) and State Minister Ajith Nivard Cabraal addresses the media at the Information department on May 29 (pic courtesy Education Ministry)

Worst ever ecological disaster a month after ship carrying radioactive uranium entered H’tota harbour

 

By Shamindra Ferdinando

 

Sri Lanka Podujana Peramuna (SLPP) Chairman Prof. G. L. Peiris, MP, on May 29 reiterated the importance of the Colombo Port City project. National List MP Prof. Peiris, who is also the Education Minister, was responding to major concerns raised by those who moved the Supreme Court against the Colombo Port City Economic Commission Bill. Prof. Peiris was flanked by National List MPs, Justice Minister Ali Sabri, PC, and State Minister of Money & Capital Market and State Enterprise Reforms Ajith Nivard Cabraal.

The briefing took place at the Information Department, amidst Sri Lanka’s worst ever ecological disaster that threatened the seas around the Colombo Port City and the welfare of thousands who eke out a living off the sea. Indian vessels and tugs, operated by Sri Lanka Shipping Company, and Salvos, fought a raging fire on the container carrier X-Press Pearl.

Controversy surrounds the delay on Sri Lanka’s part to call for Indian help for five days. Indian vessels and aircraft arrived in Sri Lanka on May 25th – five days after Sri Lanka was informed of the fire. The X-Press Pearl fire erupted exactly a month after Sri Lanka expelled a China-bound Antigua-registered vessel that entered the Hambantota port without revealing it carried radioactive uranium.

It would be pertinent to mention that the Information Department received a new head on April 09. Mohan Samaranayake, who previously held the post of Director General, Presidential Media, assumed duties on April 19. Samaranayake succeeded Nalaka Kaluwewa. With Samaranayake’s arrival at the Information Department, the government’s under-used media outlet has sort of enhanced its role.

After assuming new responsibility, veteran journalist and political commentator Samaranayake declared: “Every effort will be made to ensure the expected role of the Department of Government Information by properly publicizing accurate information.”

Samaranayake’s departure paved the way for former Swarnavahini presenter Sudeva Hettiarachchi who had been previously with Hiru, to be the new DG Presidential Media. The Presidential Secretariat also created a new post, namely the Presidential Spokesperson for Sirasa presenter Kingsley Ratnayake, who had done a regular wide-ranging interview with former minister and Sri Lanka’s High Commissioner to India Milinda Moragoda. Interestingly, the late Bandula Jayasekera, one-time The Islander, having served as President Mahinda Rajapaksa’s spokesperson, joined Sirasa after the 2015 presidential election.

The country is in such a crisis and in a far worse situation than during the 30-year war, daunting challenges cannot be overcome by media strategies alone.

Let me get back to the May 29 briefing, at the Information Department. Prof. Peiris was quite convincing in his explanation as regards the passage of the Bill on laws governing the China-backed Colombo Port city project. The one-time top law academic addressed, what he called, misconceptions and apprehensions pertaining to the contents and implications of the Bill, approved by Parliament on May 20th.

The ministerial briefing took place in the wake of Speaker Mahinda Yapa Abeywardena ratifying the new Act. Shan Wijetunga, Director, Department of Communication, Parliament, issued the following statement on the afternoon of May 27. It was headlined: “Hon. Speaker signs blueprint of the Colombo Port City Economic Commission Bill”. The following is the text of the Speaker’s brief statement: “Speaker Hon. Mahinda Yapa Abeywardena has put his signature today (27) validating the Colombo Port City Economic Commission Bill which was passed in Parliament on the 20th May 2021.

The Speaker signed the blueprint of the act at around 11.30 am this morning.

Thereby the Colombo Port City Economic Commission act will be implemented, in full, from today (27).”

The statement made no reference to the Speaker’s decision to launch two inquiries into the failure on the part of Parliament to accurately count the number of votes received, in support of the Bill, at the May 20th vote.

The inquiries were initiated following complaints received from Minister Sabry and SLPP General Secretary Attorney-at-Law Sagara Kariyawasam, PC. The Speaker called for a report from Jayantha de Silva, Secretary, Technology Ministry, pertaining to the failure of the electronic counting system and a comprehensive report in respect of the overall situation from former Secretary General Parliament Dhammika Kitulgoda.

The Communication Department statement also didn’t make any reference to the number of votes received for and against the Bill. However, the first post-war External Affairs Minister Prof. Peiris (2010-2015) didn’t mince his words when he declared at the Information Department that the Bill had received an overwhelming two-thirds majority. Prof. Peiris said that there had been an error in the counting process and the truth was established following an inquiry.

Interestingly, the Speaker’s own Media Division, headed by Indunil Abeywardena, too, hadn’t issued a statement regarding the revelation made by the SLPP Chairman, at the time of the Information Department meeting.

There cannot be any justifiable excuse for the pathetic failure on the part of Parliament to ensure an unquestionable counting process. Can there be any issue whatsoever in the electronic counting process? Parliament actually should be ashamed of its failure – the latest in a long list of let downs over a period of time.

 

Prof. Peiris responds to Opp concerns

The statement made by Prof. Peiris should be examined against the backdrop of the Opposition’s plea to the Supreme Court to order a Referendum, in addition to a two-thirds parliamentary approval for the Bill. The SLPP avoided the Referendum by agreeing for the amendments proposed by the Opposition whereas the SC declared the adequacy of a simple majority.

Prof. Peiris dealt with several contentious issues, including what he described as the perception of exclusivity. Appreciating China spearheading the mega project meant to ‘creating and adding to Sri Lanka’s territory’, Prof. Peiris declared that doors were open for all countries to invest therein. Prof Peiris emphasized that there is absolutely no basis for the assumptions as regards the new territory being Chinese and investments would be restricted.

Having dealt with the contentious issue over the alleged exclusivity, Prof. Peiris strongly countered accusations that the adoption of the Act would pave the way for creation of a mechanism (Colombo Port City Economic Commission) that would undermine basic democratic structures, therefore a threat to Parliament.

Prof. Peiris also explained how Parliament functioned in its supreme capacity and was responsible for the operation of the Colombo Port City project. The distinguished academic stressed that whatever tax concessions and other privileges afforded to investors would be strictly subjected to the parliamentary approval by way of powers exercised by the Auditor General. Minister Peiris asserted that there couldn’t be any controversy over the China-backed project as it would be subjected to regulatory authorities – the Central Bank of Sri Lanka, Public Utilities Commission of Sri Lanka, Inland Revenue Department, Attorney General, Customs et al.

Prof. Peiris dealt with accusations that the Colombo Port City would be utilised for money laundering operations. The Education Minister explained how the laws applicable to the new territory didn’t in any way undermine the systems in place to deter money laundering. The US publicly in April alleged that the Colombo Port City would be exploited by ‘nefarious actors’.

Finally, the SLPP Chairman scotched speculation regarding the police and the military not having access to the new territory. Perhaps, most interesting was the examination of the Colombo Port City Economic Commission Bill with that of the Greater Colombo Economic Commission (GCEC) Law, introduced by President JRJ, and an amendment enacted by the late President Ranasinghe Premadasa in 1992. Referring to Premadasa’s amendment that transformed the GCEC to the Board of Investment (BoI), Prof. Peiris said that the then President deprived the Courts of authority to intervene in BOI matters.

Prof. Peiris ridiculed those who had moved the Supreme Court against the Colombo Port City Economic Commission Bill, for having backed the GCEC Law and the 1992 amendment. Prof. Peiris said that President JRJ had been in such a hurry for the GCEC Law he got the National State Assembly to approve it before the promulgation of the 1978 Constitution.

Having explained the fundamental change in investments, Prof. Peiris called for what he called a ‘coherent statutory regime’ as part of overall efforts to attract foreign investments. Prof. Peiris quite vigorously emphasized the role played by the previous government in the China-led project.

Prof. Peiris recalled how the then Minister of Internal and Home Affairs and Provincial Councils and Local Government Vajira Abeywardena (Current UNP Chairman) issued a gazette pertaining to the Colombo Port City territory.

At the onset of the briefing, Prof. Peiris declared that apprehensions and misconceptions pertaining to the project could be easily resolved by a fuller discussion than we have seen in the recent days. Such discussions should have taken place in the run-up to the passage of the Bill. The government shouldn’t expect a consensus on the project having bulldozed its way through in Parliament.

 

UNP’s dilemma

Parliament, on July 23, 2019, passed a resolution that paved the way for the amalgamation of the reclaimed land of the Colombo Port City with the area coming under the purview of the Colombo Divisional Secretariat division.

The Resolution under the Administrative Districts Act was presented by Vajira Abeywardena, MP.

According to the Resolution, the land of the Colombo Port City in extent of 446 hectares will be annexed to the Colombo Divisional Secretariat’s Division of the Administrative District of Colombo. As per the plan prepared by the Surveyor General, the Colombo Port and Chaithya Road East will be a connecting point to the boundary of the Colombo Divisional Secretariat’s Division.

The newly reclaimed land’s connection point would be the western boundary of the Colombo Divisional Secretariat’s Division and its east coordinate would be 396913.476 from the northern connection point and 397077.037 from the southern connection point while its north coordinate would be 492847.74 from the northern connection point and 492290.222 from the southern connection point according to the Sri Lanka Grid 1999 reference coordinate system, according to the schedule of the resolution.

Having suspended the Colombo Port City project soon after the 2015 presidential election, the yahapalana government caused irreparable damage to long standing bilateral relations. The then Government spokesman Rajitha Senaratne said the China Communications Construction Co Ltd (CCCC) project had been launched without relevant approvals from concerned institutions. The Minister alleged that the agreement had been finalized without following proper procedures and did not meet environmental standards. The yahapalana government, in August, 2016, however, despite earlier bitter criticism of it, paved the way for the resumption of the project after China twisted the then Sri Lankan leadership’s arm. China warned Sri Lanka of dire consequences unless it paid compensation for the losses caused by the abrupt suspension of the project. The CCCC estimated it was losing more than $380,000 a day as a result.

Sri Lanka’s foolish decision to suspend the Chinese project should be examined against the backdrop of the US role in the 2015 change of government. No less a person than the then Secretary of State John Kerry revealed the US made funding available for the political project to topple the Mahinda Rajapaksa government, in addition to backing the regime change in Myanmar and Nigeria.

At one point, China lashed out at the then Finance Minister Ravi Karunanayake (Karunanayaka, who contested the Colombo district along with UNP leader Ranil Wickremesinghe, lost his bid to re-enter Parliament at the last parliamentary election, in August 2020. Wickremesinghe, too, lost. The once all-powerful UNP won just a National List slot and it too remains vacant still).

The then Chinese Ambassador Yi Xianliang hit back hard at Karunanayake after he called Chinese funding as ‘expensive loans.’ The Chinese demanded to know why Karunanayaka sought more loans if he felt the Chinese were not being fair. The Chinese Ambassador reacted angrily to Karunanayake in Oct/Nov 2016. By then, both Karunanayake and the then government had been embroiled in Treasury bond scams, perpetrated in Feb 2015 and March 2016.

Having defended the flagship Chinese project to the hilt, the status of Prof. Peiris’ role in the overall government strategy cannot be ignored under any circumstances.

SLPP lawmaker Dr. Wijeyadasa Rajapakse, PC, in his written submissions submitted to the Supreme Court, in respect of the Colombo Port City Economic Commission, challenged the legitimacy of the Bill. Perhaps, the bone of contention is that the Bill, presented to Parliament by the SLPP, hadn’t been consonant with the bilateral agreement between Sri Lanka and China, finalized in 2014, or the re-negotiated tripartite agreement (Sri Lanka, China and Urban Development Authority) following the change of government in 2015.

Lawmaker Rajapakse questioned the failure on the part of those who had access to those agreements but conveniently refrained from submitting them to the Supreme Court.

In his submissions, MP Rajapakse, who had represented both the UNP and the SLFP in the cabinet, alleged Prof. Peiris, along with Dr. P.B. Jayasundera, Secretary to the President, S.R. Attygalle, Secretary to the Treasury and Secretary to the Cabinet being silent on the previous agreements. The four had intervened in the case in support of the Bill.

Having appeared in the Supreme Court on behalf of Ven. Muruthettuwe Ananda Nayaka thera and Nagashenage Dasun Yasas Sri Nagasena, MP Rajapaksa skipped the vote on the Bill on May 20.

 

A big question mark over the role of Parliament

Prof. Peiris, as well as other government spokespersons, have repeatedly assured the public that the Colombo Port City project would be governed by Parliament. They guaranteed the project would be subjected to proper scrutiny therefore the public should be at ease. However, Parliament, having pathetically failed to fulfill its primary responsibilities namely (i) ensuring financial discipline and (ii) enactment of new laws expected to manage the Port City project. Parliament has, however, over and over again revealed its incompetence as waste, corruption and irregularities continued unabated. It would be a horrendous mistake on the part of the public to believe for a moment the Port City project would be within Sri Lanka’s purview simply on the basis of it being subject to parliamentary supervision.

Such claims should be discussed taking into consideration statements issued by the Communication Department of Parliament pertaining to the COPE (Committee on Public Enterprises), COPA (Committee on Public Finance) and COPF (Committee on Public Finance) proceedings. Parliament’s response to the Treasury bond scams, during the previous administration, as well as the massive sugar tax scam, perpetrated by the incumbent SLPP government, bared an unpalatable truth. Examination of COPE, COPA and COPF reports since the last general election revealed massive embezzlement at public sector enterprises as well as other institutions, such as Sri Lanka Cricket and Football Federation of Sri Lanka. In fact, waste, corruption and irregularities seemed almost acceptable to governments, whoever was at the helm, with Parliament struggling to cope up with corruption. Therefore, believing in parliamentary supervision of the Port City project can be quite a blunder.