Wednesday, 3 November 2021

Govt. erupts over US energy deal, crisis threatens SLPP’s near 2/3 majority

 SPECIAL REPORT : Part 392

Published

  
Rebel SLPP lawmakers and Ven. Athureliye Rathana, MP of 'Ape Jana Bala Pakshaya' at last Friday's meet at Solis hall

By Shamindra Ferdinando

The top government leadership last Thursday night (28) made a last ditch attempt to thwart an influential section of ruling party lawmakers from going ahead with the planned public meeting at the Solis Hall, Pitakotte, against the controversial energy deal with the US-based New Fortress Energy.

The meeting, held at the main hall of Temple Trees, with the participation of President Gotabaya Rajapaksa, Prime Minister Mahinda Rajapaksa, Finance Minister Basil Rajapaksa and Chief Government Whip Dinesh Gunawardena, failed to convince the dissident members. In spite of the Prime Minister’s Office declaring that a consensus had been reached on how to address the issue at hand, the rebel group went ahead with their meeting.

Of the 145-member Sri Lanka Podujana Peramuna (SLPP) parliamentary group, the following members, Industries Minister Wimal Weerawansa (leader, National Freedom Front/Colombo district), Energy Minister Udaya Gammanpila (leader, Pivithuru Hela Urumaya/Colombo district), Water Supply Minister Vasudeva Nanayakkara (leader, Democratic Left Front/Ratnapura district), SLFP General Secretary and State Minister Dayasiri Jayasekera (Kurunegala district), LSSP General Secretary Prof. Tissa Vitharana (National List), National Congress leader A.L.M. Athaulla (Digamadulla district), United People’s Party leader Tiran Alles (National List) and Yuthukama civil society group leader Gevindu Cumaratunga (National List) participated at the launch of a public protest campaign. All of them had been present at last Thursday’s Temple Trees over three-hour long inconclusive discussion that actually appeared to have aggravated the situation.

In addition to them, Ven. Athureliye Rathana thera, MP, represented the Ape Jana Bala Pakshaya at Friday’s meet at Pitakotte. National List lawmaker Ven. Rathana, facing possible expulsion from parliament, over a dispute with his party, in spite of frequent participation at SLPP events, is not a member of the government parliamentary group. Interestingly, Ven. Galagodatte Gnanasara, recently named as the head of the Presidential Task Force (PTF), assigned to make recommendations in respect of the ‘One Country, One Law’ project, is widely believed to be a frontrunner for the Ape Jana Bala Pakshaya National List slot. The Ven thera’s new status has deeply disappointed the Muslim community, with Justice Minister Ali Sabry, PC, declaring his intention to quit the justice portfolio.

In the absence of the sole Communist Party member in Parliament, Weerasumana Weerasinghe, their General Secretary Geeganage Weerasinghe joined the head table. When the writer sought a clarification from lawmaker Weerasinghe as regards his absence at the vital meeting, he assured his commitment to the protest campaign. “I had to attend a previously organised event,” the Matara District lawmaker said, adding that he represented the party at Thursday’s meeting at Temple Trees.

At Friday’s meeting, the rebel group declared that it wouldn’t accept the US energy deal, under any circumstances. The group, in no uncertain terms, alleged the brazen manipulation of Cabinet procedures, in respect of the energy deal with the US Company. One-time JVP firebrand Weerawansa, on behalf of the group, emphasised that their effort was to save the government and not in any way promote the bankrupt Opposition. The dissident group alleged that the agreement would create, what Minister Gammanpila called, a permanent US monopoly in the supply of gas to Sri Lanka. The MPs vowed that they wouldn’t give up their opposition to the deal for perks and privileges.

While former President Maithripala Sirisena, who attended the meeting at Temple Trees, was represented by Dayasiri Jayasekera, Mahajana Eksath Peramuna (MEP) leader and Chief Government Whip Dinesh Gunawardena, and Ceylon Workers representative Jeevan Thondaman, MP, weren’t present, though they attended the Temple Trees meet.

SLPP remains in control

In spite of the latest crisis, triggered by the rebel group that included the SLFP, the second largest party in the ruling coalition (14 members), the dominant power SLPP retains the most powerful group in Parliament. The SLPP group, in the government parliamentary grouping, comprises 117 members and strongly remains committed to the incumbent government at least for now.

The only exception is Dr. Wijeyadasa Rajapakha, PC, who broke ranks with the SLPP over the Colombo Port City Economic Commission Bill, in May, 2021. However, the one-time Justice Minister refrained from voting against the Bill, though he appeared for the Chief Incumbent of the Narahenpita Abhayaramaya, the Ven. Muruththettuwe Ananda, in the fundamental rights case against the Bill. Minister Weerawansa’s NFF consists of six members and is the third largest group therein. Although Dr. Rajapaksha didn’t join Friday’s meet, he is very likely to support the cause. Ven. Muruththettuwe Ananda delivered anusasana at the commencement of the event.

Did the top SLPP leadership anticipate the SLFP, NFF, PHU, and several other political parties taking a common stand on the US energy deal? The crisis couldn’t have erupted at a worse time for the government, struggling on several fronts, ahead of the presentation of Budget 2022, on Nov 12. The government shouldn’t take the developing situation lightly. Over two dozen lawmakers, many of whom zealously rallied the nation behind Rajapaksas after they suffered the shock defeat at the January 2015 Presidential election, taking a contrary view to that of the SLPP, as regards the US energy deal, should be a matter of serious concern. In other words, the government’s near two-thirds majority is at risk. Unless the SLPP reaches some sort of consensus with its constituents as soon as possible, the overall government strategy can be undermined. It would be a grave blunder, on the government’s part, to go ahead with its plans, regardless of the growing opposition, within the parliamentary group.

Many an eyebrow was also raised over the presence of SLPP lawmaker Attorney-at-Law Premanath Dolawatte with the rebels, as he once called himself a lawyer for the Rajapaksas.

The public is quite likely to be concerned about the rebel group’s declaration that the US energy deal would betray the country’s future. Would this crisis undermine the much-touted government promise to enact a brand new Constitution? The SLPP’s predicament, due to a section taking a public stand on a contentious foreign and economic policy matter, should be examined against the backdrop of the Jathika Sanvidhana Ekamuthuwa (JSE) seeking Court of Appeal intervention as regards the US energy deal. Dr. Gunadasa Amarasekera, who threw his weight behind Gotabaya Rajapaksa, during a high profile campaign for the one-time Defence Secretary to secure the SLPP candidature, for the 2019 presidential election, spearheaded the JSE petition against the highly questionable energy deal.

Another one time major SLPP backer Ven. Elle Gunawansa, joining hands with Archbishop of Colombo Malcolm Cardinal Ranjith, to move the Supreme Court against the US deal, should be a matter for concern to the government.

Minister Weerawansa questions brazen manipulation of cabinet procedure in controversial New Fortress deal.

SLPP constituent taking neutral stand

However, the MEP refrained from taking a public stand either way on the New Fortress deal. The rebels gathered at the Solis Hall, whereas the Chief Government Whip Dinesh Gunawardena and his son, Yadamini, of the SLPP National List, took that time to pay courtesy calls on the Chief Prelates of the Asgiriya and Malwatte Chapters. MEP leader Gunawardena, who served as the first Foreign Minister under President Gotabaya Rajapaksa, in August this year, was made to switch portfolios with Foreign Minister Prof. G.L. Peiris, who is also the Chairman of the SLPP.

The MEP parliamentary group consists of Dinesh Gunawardena and Yadamini. The MEP has largely refrained from being part of the group that initially took up a public stand against the move to go ahead with the previous government’s plan to involve India and Japan in the East Container Terminal (ECT). Subsequently, the group defended member Gammanpila when the SLPP demanded his immediate resignation over the increase in fuel prices in the second week of June this year. As anticipated, political eruption over the US energy deal is likely to be far worse than previous disputes.

The SLPP onslaught, directed at Minister Weerawansa, over his call for President Gotabaya Rajapaksa to play an active role in the party, cannot be ignored. Weerawansa recently reiterated his call for President Rajapaksa’s direct involvement in the political decision-making process. Weerawansa’s stand has caused quite a serious issue in the SLPP and the latest developments are likely to cause further deterioration.

Obviously, whatever the consequences, both sides are not in a position to take a step backward. Outgoing US Ambassador Alaina B. Teplitz, who intervened on behalf of New Fortress Energy, and swiftly brought about the agreement, paid a courtesy call on President Gotabaya Rajapaksa, at the Presidential Secretariat, the day before the rebel onslaught. Can the agreement be rescinded? Is there a remedy for the political crisis, caused by the Cabinet decision that had been quite interestingly titled ‘Investments into the West Coast Power (Private) Limited (WCPL) to reduce the Cost of Electricity Generation?’ Who actually prepared that Cabinet memorandum, dated Sept.06, 2021, that had been adopted through fraudulent means? And, most importantly, what can the rebels do in case the government went ahead with the Project irrespective of consequences? Would Sri Lanka be compelled to honour the agreement, whatever the fallout? The answer might be in the hands of the highest courts in the land as several petitions challenging the deals are already pending before them.

The rebels’ claim that the Cabinet approval hadn’t been secured properly should be examined, taking into consideration the Cabinet memorandum that revealed Secretary to the Treasury S.R. Attygalle entered into the agreement on July 07, 2021, in line with Cabinet approval, granted on July 05, 2021. In terms of the framework agreement with New Fortress Energy, listed in the NASDAQ: (i), the US company will receive 40 percent of WCPL shares held by the Treasury for USD 250 mn (ii) execution of the terminal project (floating storage regasification unit, mooring system and the pipelines) and (iii) supply of liquefied natural gas.

At the centre of this developing drama no doubt is the Finance Minister Basil Rajapaksa, a dual Sri Lankan/US citizen being the its prime mover. The SLPP that made quite a uproar over Singaporean Arjuna Mahendran helping to stage broad daylight robberies of the central Bank twice during the previous yahapalana regime as the Governor of the Central Bank, has nothing to shield it if the courts uphold the challenges to the more or less secret deals.

Political, financial imbroglio

A catastrophic political dispute, over the energy deal, with the US, has placed the government in an extremely difficult position, at a time a spate of other issues continue to undermine the ruling coalition. The whole gamut of issues should be examined against the backdrop of the much-deteriorated financial situation. The government seems satisfied with the Central Bank’s response to Moody’s Investors Service (Moody’s) further downgrading Sri Lanka. Expressing ‘strong displeasure’ on the recent assessment, the Central Bank declared: “Once again, Moody’s irrational rating action with regard to Sri Lanka comes a few days before a key event, namely the announcement of the Government Budget for 2022, and this apparent hastiness and the view expressed during discussions with Moody’s analysts that the nature of the Budget is irrelevant to the financing plans of the Government clearly demonstrates the lack of understanding of such analysts.”

The US deal has dealt a severe blow at a time the government is struggling to cope up with growing farmers’ protests against the shortage of fertiliser and agro-chemicals, unprecedented dispute with China over the refusal to accept a consignment of alleged contaminated carbonic fertiliser and remit payment that led to the blacklisting of the People’s Bank, controversy over the mode of payment for liquid nano-nitrogen fertiliser, ordered from India, continuing protests against the inordinate delay in implementing the Presidential Commission of Inquiry (PCoI) recommendations, in respect of the 2019 Easter Sunday carnage, failure to reverse accountability process, initiated by the Geneva-based United Nations Human Rights Council, Indian push for the full implementation of the 13th Amendment, enacted in Nov 1987, in line with the Indo- Lanka Accord, of July 29,1987, Pandora Papers revelations pertaining to former PA and UPFA lawmaker Nirupala Rajapaksa and her husband Thirukumar Nadesan, shocking corruption charges in respect of the payment of over Rs 4 bn to a Chinese company given the Gin-Nilwala project during the previous Rajapaksa administration, dismissal of several high profile cases filed by the Attorney General and the Commission to Investigate Allegations of Bribery or Corruption (CIABOC), shortage of essential food items, including rice etc.

There is no point in denying the fact that the public stand taken by the SLPP rebel group, as regards the US energy deal, has severely undermined the government. In fact, the allegations, pertaining to the manipulation of the Cabinet process, should attract the attention of Parliament. Parliamentary watchdog committees, COPE (Committee on Public Enterprises), COPF (Committee on Public Finance) and COPA (Committee on Public Accounts) should pay attention to the rebel accusations.

Now that three Cabinet ministers have publicly challenged the Cabinet process, they owe the country an explanation as to how the group would proceed, whatever the outcome of the judicial response be to cases filed in the Supreme Court and the Court of Appeal. The cash-strapped government is experiencing a very fluid political situation.

Strategic political miscalculation

Perhaps, it would be pertinent to recall the political developments, in July 2014, that set the stage for the 2015 political change. The crisis began after lawmaker Wimal Weerawansa invited the convener of the Movement for Just Society, the late Ven. Maduluwawe Sobitha thera, to discuss far reaching constitutional reforms, including the abolition of the executive presidency.

At the conclusion of the talks, Ven. Sobitha, spearheading a high profile campaign against the executive presidency and Weerawansa, agreed to continue their discussion. The media gave wide coverage to the unexpected. Weerawansa flexed his muscles, ahead of the Uva Provincial Council poll. Weerawansa, the then Construction, Engineering Services, Housing and Common Amenities Minister, warned the then President Mahinda Rajapaksa’s government to meet his demands or face the consequences. Weerawansa threatened to throw his weight behind Ven. Sobitha’s campaign, unless the SLFP accepted his demands, meant to bring in far reaching constitutional reforms. Among Weerawansa’s other demands had been an immediate halt to, what was called, the South African initiative meant to help the post-war national reconciliation process and the cancellation of the foreign investigative mechanism to inquire into accountability issues. The SLFP simply ignored Weerawansa’s demands.

Having caused a debilitating setback, Weerawansa threatened to go it alone, at the last Uva Provincial Council poll, in September, 2014. At the eleventh hour, Weerawansa’s NFF contested Badulla district, on its own, while contesting the Moneragala district on the UPFA ticket.

Subsequently, Weerawansa distanced himself from Ven. Maduluwawe Sobitha, while the like-minded Jathika Hela Urumaya (JHU) teamed up with Ven. Maduluwawe Sobitha. Their alliance quickly gained ground, in spite of President Mahinda Rajapaksa’s efforts to reach an understanding with the influential monk, in the run-up to the January 8, 2015, presidential poll. Ven. Maduluwawe Sobitha and Ven. Athureliye Rathana thera, on behalf of the JHU, spearheaded a campaign that undermined the SLFP-led administration.

The Maithripala Sirisena seeing a chance to be king exploited Weerawansa’s attacks on the SLFP, and the Rajapaksa family, in the run-up to the 2015 presidential poll. Ven. Maduluwawe Sobitha played a critical role in the formation of an alliance that brought an end to President Rajapaksa’s rule. Weerawansa, as well as JHU stalwart Udaya Gammanpila, who switched his allegiance to the former President, accused those Buddhist monks, backing Maithripala Sirisena, of being involved in a foreign-led conspiracy to divide the country, on ethnic lines. Obviously, the Sinhala electorate didn’t take them seriously. The country overwhelmingly voted Maithripala Sirisena into power.

The then General Secretary of the Communist Party and senior minister, D.E.W. Gunasekera strongly opposed an early presidential poll. Having realised the President was hell-bent on securing a third term, two years before the scheduled date, Gunasekera, along with his colleagues, senior Minister Prof. Tissa Vitharana, and Minister Vasudeva Nanayakkara, urged Rajapaksa not to call an early poll.

Unfortunately, the former President had been convinced of a comfortable victory, regardless of poor showing at the Uva Provincial Council poll. The President’s astrologer, Sumanadasa Abeygunawardena, predicted an easy win for the twice President , while several other astrologers echoed Abeygunawardena, who held two lucrative posts as Director of Independent Television Network (ITN) and the National Savings Bank (NSB). The astrologers cheated the SLFP leadership in style. Both state-run and private television stations, as well as the print media, gave them time and space to hoodwink the masses. They did it in style.

DEW Gunasekera, Nanayakkara and Vitharana almost in unison briefed the former President regarding the danger in having an early election. Regrettably, their plea, made in early October, 2014, was ignored.

Constituents of the SLPP should initiate a genuine discussion among them without further delay or be prepared to face the consequences as in 2015.