Corruption saga continues

 SPECIAL REPORT : Part 433

Published

  2022/08/31

A jubilant Rankan Ramanayake leaving Welikada prison (pic by Jude Denzil Pathiraja)

By Shamindra Ferdinando

The Sri Lanka Institute of Directors (SLID) and Transparency International Sri Lanka (TISL) recently declared corruption as the root cause of Sri Lanka’s current political and economic crisis. The declaration was made in a statement titled, “SLID and TISL launch ‘Business Against Corruption’ Initiative” issued to the media after the two organisations finalised an agreement on a three-year plan to address the issues at hand.

The statement described the contract as strategic collaboration between the two NGOs. Veteran banker Faizal Salieh and Attorney-at-Law Nadishani Perera signed the agreement for SLID and TISL, respectively.

TISL was launched in late 2002 whereas SLID came into being in April 2000. The assertion that corruption bankrupted the country underscored the failure on the part of successive governments (parliaments), the Finance Ministry, Monetary Board, CIABOC, Attorney General’s Department and the Auditor General’s Department, as well as apparent well-meaning bodies, like SLID and TISL. The way the political party system hindered and diluted the National Audit Bill and the Parliament moved court against the releasing of MPs’ asset declarations indicate the challenges faced in reforming the system.

No less a person than the Governor of the Central Bank Dr. Nandalal Weerasinghe, in May this year, acknowledged Sri Lanka’s shameful status. Dr. Weerasinghe, who retired as Senior Deputy Governor, CBSL in January 2021, was requested to take over the CBSL in April this year in the wake of Ajith Nivard Cabraal’s resignation amidst an unprecedented deterioration of the country’s financial situation.

Nadishani Perera succeeded as TISL’s Executive Director from Asoka Obeysekera in January 2021. Salieh was unanimously elected as the Chairman, SLID for the year 2021/22 at a virtual AGM held on Aug. 11, 2021. It would be pertinent to mention that the then State Minister of Finance, Capital Markets and State Enterprise Reforms Cabraal was the Chief Guest at this meet held a month before Central Bank Governor Prof. W.D. Lakshman was unceremoniously asked to step down to pave the way for the State Minister to return to the Governor’s Office.

Cabraal previously served as the 12th Governor of CBSL from July 2006 to January 2015 and returned. His second stint as the 16th Governor, CBSL lasted just eight months. As the 16h Governor he was elevated to the Cabinet rank. As a result, the Governor’s rank in the Table of Precedence has gone up from 20th to fifth place. The Governor is now ranked below the President, Prime Minister, Speaker and the Chief Justice.

In joint fifth place, the Table of Precedence comprises the Leader of the Opposition, Cabinet of Ministers and the Field Marshal.

When Cabraal succeeded Prof. Lakshman the government was in serious difficulty. Having ignored the IMF’s advice in early 2020 to restructure the debt and drop plans to do away with a range of taxes, the then President Gotabaya Rajapaksa’s government caused immense damage to the national economy. But the economic fallout cannot be entirely blamed on corruption since the country had to fend off the worldwide pandemic and the 2019 Easter Sunday terror attacks by Islamic extremists, both of which crippled the country’s vibrant and vital tourism industry and worker remittances, coupled with the fallout from the war in Ukraine.

Nadishani Perera declared their primary objective was to eradicate corruption supported by the private sector. She said so in response to a query from us. They’ll be seeking required funding from the ADB, World Bank and other institutions such as the Centre for International Private Enterprise (CIPE).

A toxic combination of waste, corruption, irregularities, mismanagement and ill-advised decisions contributed to the worst-ever crisis post-independence Sri Lanka experienced. Both public and private sectors should accept responsibility for the crisis. Shocking disclosures made by the Auditor General and at proceedings of the Committee of Public Enterprises (COPE), Committee of Public Accounts (COPA) and Committee of Public Finance (COPF) over the years repeatedly proved culpability of Parliament for the financial crisis.

The SLID-TISL project is meant to enhance transparency, accountability and integrity by encouraging ethical business practices, fair market competition, fair pricing and credible leadership.

The joint statement quoted Salieh as having said: “We are mindful of the current state of affairs, the ground realities, and the challenges faced by companies in doing business. Therefore, our approach on this journey is pragmatic and practical and will enable businesses to proactively and progressively mitigate the corruption risk using preventive measures, checks and balances on a voluntary, ‘best efforts’ basis.”

Nadishani Perera was quoted as having said: “Businesses play a critical role in any nation’s efforts against corruption. At this unique and transformative moment in Sri Lanka’s history, as the citizens have risen against corruption, it is of utmost importance that the business community also commits to do its part towards this mission.”

Bond scams

 In spite of high-profile projects reportedly meant to restore public confidence in public and private sectors, the situation continues to deteriorate. That is the undeniable truth. In late Nov 2016, the USAID in partnership with Sri Lanka Parliament launched USD 13 mn (Rs 1.92 bn) project to strengthen accountability, transparency and good governance.

Parliament owed the public an explanation as regards the success or utter failure of the three-year project. Did it achieve its objectives? Perhaps, the then Speaker Karu Jayasuriya, in his new capacity as the Chairman of the National Movement for Social Justice (NMSJ) will care to explain the outcome of the USAID project. The USD 13 mn project should be examined against the backdrop of the Treasury bond scams perpetrated in Feb 2015 and March 2016 under then yahapalana (good governance) rule. Then Speaker Jayasuriya and the US obviously didn’t care that the yahapalana government delayed investigations into the Treasury bond scams and actually nothing really was done about it until then President Maithripala Sirisena appointed a presidential Commission of Inquiry (CoI) that included two sitting Supreme Court judges in late January 2017 to carry out a public probe.

Probably, Sirisena, now an SLPP MP (Polonnaruwa district) must have quite conveniently forgotten how he dissolved Parliament at midnight on June 26, 2015 to prevent the then COPE Chairman D.E.W. Gunasekera from tabling in Parliament his report on the first Treasury bond scam. At the behest of the UNP leadership, the then lawmaker Attorney-at-Law Sujeewa Senasinghe moved court to thwart the releasing of the COPE report. Senasinghe, an Attorney-at-Law even had the audacity to write a book denying the scam.

Regardless of Perpetual Treasuries Limited (PTL) being under the spotlight over the Treasury Bond scams, the Bar Association of Sri Lanka (BASL) had no qualms in receiving sponsorship amounting to Rs 2.5 mn in support from the tainted firm for its project, Law Asia 2016. The Colombo Port City and the USAID had been among the BASL’s sponsors for its other events.

 Eight years after the first Treasury Bond scam, what is the current status of the investigations and Sri Lanka’s efforts to convince Singapore to extradite Arjuna Mahendran, under whose watchful eyes as the Governor, CBSL the Treasury Bond scams took place? Can the Attorney General and the Justice Ministry explain measures taken by them since the change of government in July to have Mahendran extradited? Against the backdrop of assurances given by the Justice Minister Dr. Wijeyadasa Rajapakse, PC, that a Bill to combat fraud and corruption would be enacted soon, the public have a right to know how the new government intended to handle Treasury Bonds scams probe/prosecutions.

Singapore-based Mahendran challenged The Island editorial (‘Cops and Robbers’) of Friday August 19, 2022. Denying he fled the country, the Singaporean revealed that his Counsel Romesh de Silva, PC secured the permission of Supreme Court justice K.T. Chitrasiri for him to leave the country. Justice Chitrasiri headed the CoI. The issue at hand is whether Mahendran through his learned Counsel gave an assurance to Justice Chitrasiri that he would return to the country in case the Attorney General initiated legal action over the Treasury Bond scams. Perhaps, Mahendran’s Counsel should set the record straight.

The question is when President’s Counsel Romesh de Silva made the request on behalf of Mahendran and secured approval as the former CBSL Governor claimed, did he give an assurance to the CoI that he would return within a specific period or did the CoI sought such a pledge from him.

Vidanapathirana Associates, on behalf of Ranil Wickremesinghe, several weeks after the last presidential election in Nov 2019, responded to a spate of allegations pertaining to Treasury Bond scams et al directed at the former Premier by yahapalana regime President Maithripala Sirisena. Responding to specific allegation that Wickremesinghe helped Mahendran to escape Sri Lankan justice, Vidanapathirana Associates stated (verbatim): “Mr. Arjuna Mahendran gave evidence before the Presidential Commission and therefore obtained its permission to leave Sri Lanka. He has not returned since then.”

The Attorney General’s Department should inquire into the circumstances under which Mahendran left the country.

Controversy over privatization

 Restructuring/privatization of loss-making state enterprises has received attention as part of the overall economic recovery efforts. However, rebel SLPP lawmaker Dr. Nalaka Godahewa recently raised the possibility of the new government exploiting the current economic crisis to privatize profit-making ventures, such as Sri Lanka Insurance Corporation (SLIC) and Sri Lanka Telecom. The former Viyathmaga activist was responding to President Ranil Wickremesinghe’s recent declaration as regards privatization.

Declaring his whole hearted support for the proposed restructuring of loss-making enterprises, Dr. Godahewa however questioned the move to privatize the profitable ventures. Such privatizations will further weaken the public sector due to the Treasury being deprived of much needed cash. Dr. Godahewa assertion that the vast majority of 94 state enterprises privatized between 1990-2003 during the tenure of late President Ranasinghe Premadasa and ex-President Chandrika Bandaranaike Kumaratunga were profitable ventures reveals how the powers that be gradually deprived the Treasury of wherewithal.

The lawmaker while making reference to the controversial circumstances China secured the Hambantota port on a 99-year-lease for USD 1.2 bn in 2017, questioned the move to privatize SLIC and SLT.

Commenting on what he called Sri Lanka’s infamous privatization policy, Dr. Godahewa mentioned a few interesting facts regarding the privatized enterprises though he refrained from naming them. (1) The Supreme Court in 2009 reversed the sale of SLIC for Rs 6 bn during the tenure of Kumaratunga’s regime. At the time of the transaction, the SLIC had assets estimated to be worth over Rs 30 bn (2) The Supreme Court also in the same year reversed two more corrupt transactions, namely Waters Edge and Lanka Marine Services (3) A person who bought a plantation company earned a 100 percent profit within 24 hours after he sold the same property for double the amount he paid for (4) Those who acquired a company that dealt with food much more cash they paid for that particular state enterprise. That enterprise had more money in its bank accounts and the safes than what was received by the government from the buyer and (5) Some of those buyers earned massive profits by selling machinery and equipment.

So, no wonder she was dubbed Chaura Regina (bandit queen) by her one-time political soulmate Victor Ivan in a book he published and to this date ex-President Kumaratunga has not dared to challenge the accusations either in a court of law or by word.

The whole privatisation/restructuring programme appeared to have been carried out at the expense of the national economy while successive governments packed the public enterprises with their supporters. But the massive expansion of the public sector took place at the behest of Mahinda Rajapaksa, who served as the President from Nov 2005 to January 2015.

Public Administration Secretary Priyantha Mayadunne didn’t mince his words a few months ago when he declared how the public service had become an unbearable burden to the taxpayer. But why didn’t he speak up earlier? Mayadunne explained how the public service had been recklessly expanded to nearly 1.5 mn whereas the requirement was 500,000. One-time Justice Ministry Secretary Mayadunne emphasized the need to restructure the public service. Mayadunne’s warning to political parties represented in Parliament, state and private sector trade unions and the civil society that they will soon be categorized as traitors unless they agreed to far reaching economic reforms appeared to have fallen on deaf ears.

Regardless of consequences, the government and the Opposition seemed still struggling to score petty political points than reaching a consensus on workable solutions to address grave political, economic and social issues. Their failure to agree on urgently needed reforms agenda is evidence that the public cannot depend on political parties represented in parliament. Instead of addressing issues at hand, particularly the internationally supervised debt restructuring plan, those who are responsible for the economic fallout seemed determined to consolidate their positions while pursuing the same old strategies.

The government owed an explanation as regards accusations pertaining to the planned privatization of the SLIC and SLT.

TISL’s corruption index

 According to TISL’s most recent Corruption Perception Index (2021) Sri Lanka is ranked 102nd out of 180 countries and territories by their perceived levels of public sector corruption. This assessment is certainly questionable. If corruption allegations directed at decision-makers, both in and outside Parliament, are properly examined taking into consideration the responsibilities of the executive, members of the legislature as well as the judiciary, Sri Lanka must be among the worst lot. The proceedings of the parliamentary watchdog committees, periodic reports released by them as well as the Auditor General’s reports paint a bleak picture. The SLID and TISL should inquire into public enterprises as the former represents nearly 1,000 personnel at top management level at state and private sectors. Instead of taking tangible measures to tackle waste, corruption, irregularities and mismanagement, the anti-corruption project could become yet another lucrative trade.

 Former Samagi Jana Balavegaya lawmaker Ranjan Ramanayake declared as he left Welikada prison last Friday (26) that Justice Minister Dr. Wijeyadasa Rajapakse, PC, asked for a guarantee from him that he would continue his anti-corruption campaign. The declaration was made after Ramanayake serving a four-year term of RI for contempt of judiciary received a presidential pardon after he publicly acknowledged there was no basis for accusations, he directed at the judiciary on Aug 21, 2017 outside Temple Trees. The former MP apologized to the judiciary while promising not to say anything inimical to the judiciary ever again. Obviously, those who had gathered outside Welikada prison to welcome Ramanayake didn’t really comprehend the implications of the politician going back on his much-publicized declarations. During his tenure as a UNP MP, Ramanayake twice lashed out at the judiciary. In respect of the second case the Supreme Court sentenced him to two years RI suspended for five years.

There had never been a proper inquiry into Ramanayake’s audio tapes though they captured the attention of the public. The releasing of audio tapes of conversations among SSP Shani Abeysekara (he hadn’t been appointed Director CID then), the then Deputy Minister of Social Empowerment Ranjan Ramanayake, the then High Court judge Mrs. Padmini Ranawaka and President Maithripala Sirisena, in the wake of the 2019 Presidential Election, sent shock waves through political parties, the judiciary, the police and the civil society.

Controversy still surrounds the circumstances under which the police received the recordings, secretly made by Ramanayake. Selected tapes were released to both the print and electronic media. Attempts to hush up the shocking revelations, pertaining to the Himbutana killings (Bharatha Premachandra killing), and the subsequent judgment failed.

Those in authority conveniently refrained from conducting a proper investigation into the scandalous interventions made by Ramanayake, as well as the conduct of HC judge Mrs. Ranawaka, and Abeysekara, though the police recorded some statements, including that of Mrs. Ranawaka.

Parliament suppressed the matter. The then Speaker Karu Jayasuriya should explain what really happened. Jayasuriya was among those who called for presidential pardon for Ramanayake. The failure to examine Parliament’s pathetic response to the disturbing revelations and the suppression of CDs is a matter for concern.

Did Ramanayake speak to High Court Judge Mrs. Ranawaka to influence the murder conviction against Duminda Silva, sans permission from the party leadership? Did the then top UNP leadership tell him to approach judges in respect of various cases?

Ramanayake is also on record phoning High Court judge Gihan Pilapitiya and Magistrate Dhammika Hemapala. Following the disclosure of a fraction of the tapes, the police recorded statements from Mrs. Ranawaka (retired), Pilapitiya and Hemapala.

Let me focus on the conversations involving Mrs. Ranawaka, Ramanayake, Abeysekara and President Sirisena (now SLPP Polonnaruwa district MP. Sirisena also remains the SLFP leader).

Mrs. Ranawaka had no qualms in declaring that she had no confidence in President Sirisena though she subsequently directly pleaded with him to promote her to the Court of Appeal. Mrs. Ranawaka expressed doubts about President Sirisena when Ramanayake phoned her on July 14, 2016, in the wake of Abeysekara expressing serious concerns over the way the Duminda Silva matter, and related issues, were proceeding to their dislike. Nearly two dozen conversations, involving Ramanayake and Abeysekara, should have been examined without taking them in isolation. According to conversations now in public domain, Mrs. Ranawaka asked Ramanayake to intervene on her behalf when the latter pressed her on the pending judgment on the Himbutana killings. The judge also made reference to the then lawmaker and Attorney-at-Law Ajith P. Perera during her conversation, initiated by Ramanayake. The way the conversation continued, clearly indicated that the call taken by Ramanayake, on July 14, 2016, couldn’t have been the first and they knew each other very well. Mrs. Ranawaka, obviously exploited Ramanayake’s intervention to explore the possibility of moving up the ladder with unbridled political patronage.

Let there be a thorough inquiry into matters of concern. A genuine effort is needed.

Corruption: The House in a bind

 SPECIAL REPORT : Part 432

Published

  2022/08/24

Minister Dr. Wijeyadasa Rajapakse, PC, listening attentively to Sarath Jayamanne, PC, at a recent meeting, at the Justice Ministry, to discuss amendments to the proposed anti-corruption Bill. Jayamanne served as Director General CIABOC (Commission to Investigate Allegations of Bribery or Corruption) during the yahapalana rule. Lawmaker Rajapakse served the same government, as a minister, before the then President Maithripala Sirisena, acting on the behest of the UNP, abruptly removed him from the Cabinet-of-Ministers after he directed corruption allegations against the regime over the leasing of the Hambantota port on a 99-year lease. (From left) Attorney-at-law Ravindranath Dabare, Justice Secretary Wasantha Perera, Minister Wijeyadasa Rajapakse and Sarath Jayamanne (Pic courtesy Justice Ministry)

In the absence of a proper ‘mechanism’ to tackle the massive waste, corruption, irregularities and mismanagement, disclosed by the parliamentary watchdog committees, COPE, COPA and COPF, they are quietly suppressed. In spite of repeated assurances given by the Parliament, tangible measures hadn’t been taken, so far, to ensure legal measures against those responsible. Therefore, the Parliament cannot absolve itself of the responsibility for the current crisis caused by a toxic combination of reckless decision-making, waste, corruption, irregularities and mismanagement.

By Shamindra Ferdinando

Justice, Prisons Affairs and Constitutional Reforms Minister Dr. Wijeyadasa Rajapakse, PC, recently declared that the major allegation directed at lawmakers, was corruption, Minister Rajapakse recalled how he was removed from the post of Chairman of the Committee on Public Enterprises (COPE) during Mahinda Rajapaksa’s first term (2005-2010) as the President, after the outfit disclosed allegations, pertaining to misappropriation of as much as Rs 300 bn in public funds.

Minister Rajapakse said so at the OPA’s (Organisation of Professional Associations) 2022 awards ceremony held at the Cinnamon Lakeside on August 16. Addressing the gathering, after President Ranil Wickremesinghe and Speaker Mahinda Yapa Abeywadena, the one-time President of the Bar Association of Sri Lanka (BASL) said that the Cabinet-of-Ministers has approved a new Bill meant to tackle corruption and fraud. The project has received the support of retired Senior Additional Solicitor General Sarath Jayamanne, PC, lawmaker Rajapakse said, while disclosing the proposed law would deal with asset declarations of lawmakers. Let us hope that the new law, once enacted, will lead to examine among other things the scandalous refusal by Parliament to release the list of its members who have filed their declarations of assets and liabilities, from 2010-2018, in answer to an appeal filed by a journalist Chamara Sampath. The Parliament declined to release the required information in spite of the Right to Information Commission asserting that such information is not protected by parliamentary privilege.

PC Jayamanne, who retired in January last year, was also present on the occasion. Having received the appointment as Director General of the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) in Nov 2016, Jayamanne served in that post till late January 2020. Obviously, Jayamanne hadn’t been acceptable to the Gotabaya Rajapaksa administration. The Rajapaksa administration turned the CIABOC and the Attorney General’s Department upside down. The dismissal of so many cases, filed during Jayamanne’s tenure as the DG, CIABOC and incumbent Chief Justice Jayantha Jayasuriya, PC, in his capacity as the AG, since the last presidential election, is an issue that should be addressed by President Wickremesinghe’s government.

There were obvious shortcomings in those filings, like failure to obtain signatures of all bribery commissioners to sign up on those indictments.

The soft spoken senior AG’s Department officer replaced DG, CIABOC, Dilrukshi Dias Wickramasinghe after the then President Maithripala Sirisena publicly rapped her over the handling of bribery and corruption cases, particularly the high profile AGMS (Avant Garde Maritime Services) investigation.

Actually, the yahapalana government suffered irreparable damage, in late 2015, when its law and order Minister Tilak Marapana, PC, resigned after having defended the AGMS. Dr. Rajapakse, too, strongly defended the ex- Army Commando Officer Maj. Nissanka Senadhipathy’s enterprise.

Minister Rajapakse gave the assurance on a new law to tackle corruption and fraud in the wake, President Wickremesinghe addressing the contentious issue at the inauguration of the third session of the 9th Parliament.

The Presidential Media Division (PMD) in a statement issued in Sinhala, quoted Minister Rajapakse as having asserted that the ‘Aragalaya’, (public protest movement) had been caused by yahapalanaya sans transparency.

The moves to introduce a new Bill, against corruption and fraud, should be examined taking into consideration a controversial Cabinet proposal to pay compensation to 27 persons who held senior administrative posts and other positions during the Mahinda Rajapaksa presidency. They have been offered compensation to the tune of nearly Rs 120 mn whereas appeals made by 11 others were rejected.

The compensation has been awarded by a committee, headed by former Chief Justice Asoka de Silva. Other members of the committee, appointed by the then President Gotabaya Rajapaksa, are former Court of Appeal Judge Sunil Rajapaksa, President’s Counsel V.K. Choksy, former Auditor General S. Swarnajothi (resigned on November 11, 2021 and succeeded by Chartered Accountant K.S. Chandrapala de Silva), and retired Accountant H.D. Weerasiri.

The ruling SLPP (Sri Lanka Podujana Peramuna) wants Prime Minister Dinesh Gunawardena to submit the Cabinet paper, in this regard, to the Cabinet of Ministers, headed by President Wickremesinghe. The case of those who had been allegedly victimized by a disputable process initiated by the then yahapalana Premier Wickremesinghe is likely to be presented to the Cabinet of Ministers, headed by Wickremesinghe himself. What would be the Justice Minister’s stand?

Shocking case of a Solicitor General

After Sri Lanka’s triumph over separatist Tamil terrorism, the then President Mahinda Rajapaksa vowed to eradicate corruption. But, just over a decade later, waste, corruption, irregularities and mismanagement, at every level of administration, has resulted in the country being declared bankrupt. The need to carefully examine the responsibility as well as the accountability on the part of the executive, the legislature and the judiciary cannot be ignored. The legislature should accept the major blame as public finance and enactment of new laws are its responsibility.

Let us discuss Solicitor General Dilrukshi Wickramasinghe’s dilemma—a case that never received sufficient media attention. Having lost the post of DG, CIABOC under controversial circumstances, Wickramasinghe returned to the AG’s Department where she maintained a low profile. The then Attorney General Dappula de Livera, PC, interdicted her on Sept. 25, 2019, following a leaked telephone conversation she had with Avant Garde proprietor Senadhipathi in her capacity as the DG, CIABOC. The conversation was leaked to the media on Sept. 20, 2019, immediately after the recording of the discussion, without her knowledge.

The highly embarrassing recorded telephone conversation, whether edited or not, with Avant Garde Chairman Nissanka Senadhipathy, in which she virtually admits how she had to abuse her position in that litigation. That aspect was never investigated.

In spite of her being cleared by the Administrative Appeals Tribunal (AAT), she was not allowed to return to the AG’s Department regardless of specific instructions issued in that regard. The ruling was given in respect of a case filed by Wickramasinghe against the Public Service Commission (PSC).

Wickramasinghe retired on July 30, 2021 after reaching the compulsory retirement age. The unparalleled ruling was given by a three-member AAT consisting of Justice N.E. Dissanayake, A. Gnanathasan, PC and G.P. Abeykeerthi. Justice Dissanayake functioned as the Chairman of the highest tribunal empowered to inquire into such an appeal.

Wickramasinghe appealed to the AAD on Oct 5, 2020. The AAT inquired into disciplinary authority exercised by the PSC in respect of the Solicitor General.

The original ruling that had been given on July 14, 2021 was amended on July 22 subsequent to the PSC seeking clarification of some matters which the AAT considered important. The AAT acknowledged that the issues that had been raised by the PSC weren’t taken into consideration at the time of the issuance of the July 14 ruling.

Attorney-at-law Riad Ameen and Assistant Secretary PSC Srinath Rubasinghe appeared for Wickramasinghe and the PSC, respectively.

The leaked telephone conversation in question was over the controversial case of the Avant Garde floating armoury that divided the previous government, with two ministers with excellent legal backgrounds striking discordant notes.

Dappula de Livera’s successor, Sanjay Rajaratnam, PC, hadn’t, however, allowed SG Wickramasinghe to resume work in spite of the original order nor the amendment ruling given on July 14 and July 22, respectively. A copy of the original order was delivered to the AG’s Office on the evening of July 14.

The AAT ordered (1) Immediate cancellation of PSC directive dated April 06, 2021 that placed SG on compulsory leave pending the completion of a formal inquiry (2) Rescinding of the PSC directive dated October 19, 2020 that sent the SG on compulsory leave to pave the way for her to resume duties (3) Retiring her on July 30, 2021 on her reaching the compulsory retirement age and (4) finalising the much-delayed formal inquiry into the SG’s conduct in terms of Public Administration Circular 30/2019 dated September 30, 2019, expeditiously.

But, the above-mentioned directives were not carried out. Therefore, Wickramasinghe had to retire on reaching the retirement age.

Having acknowledged that Wickramasinghe had found fault with the PSC for the undue delay in finalising the preliminary inquiry and reinstate her, the AAT asserted that the PSC failed to ‘exercise its discretion in a justifiable, reasonable and an objective manner.

The AAT pointed out that Senadhipathy trapped Wickramasinghe with the help of the then UNP Minister Vajira Abeywardena, who gave his phone to the Solicitor General, declaring that Senadhipathy was on line. According to the proceedings, Abeywardena received the call at a Colombo hotel while he was having dinner with Wickramasinghe and her husband. Abeywadena succeeded Ranil Wickremesinghe in Parliament as the only UNP National List MP.

The AAT questioned the failure on the part of those who conducted the preliminary inquiry to record Abeywardena’s statement or examine his phone. The AAT also noted that Senadhipathy spoke to Wickramasinghe through Abeywardena’s phone after Wickramasinghe strongly opposed the Minister’s move to invite the Avant Garde Chairman to have dinner with them at Abeywardena’s residence at Queen’s Road, Colombo 07.

The AAT stated that it had the power to take remedial measures in respect of decisions ‘tainted with error in law and fact’ taken by the PSC.

The AAT also pointed out that Wickramasinghe hadn’t initiated the call and from the outset she insisted that the recording was ‘doctored, edited and distorted.’ Proceedings revealed that AG de Livera had first listened to a tape recording that was edited at 10 places and Senadhipathy himself admitted having edited the recording but he never submitted the original to the Preliminary Investigation Committee. The AAT pointed out that the AG de Livera at the time he made a statement at the preliminary investigations based his assessment on what the AAT called an edited, distorted and unauthentic version of the recording.

Moves against Prof. Herath

Prof. Chritha Herath, former Chairman of the parliamentary watchdog, the committee on Public Enterprises has been quite conveniently dropped from the COPE. Rebel SLPP lawmaker Dullas Alahapperuma recently took up this case with Prime Minister Dinesh Gunawardena. This issue has been taken up along with the discarding of those who voted for him at the presidential contest on July 03. All of them have been dropped from ‘operating committees.’

Sri Lanka Audit Service Association (SLASA) recently requested President Wickremesinghe to re-appoint both Prof. Herath and Chairman of the Committee on Public Accounts (COPA) Prof. Tissa Vitharana. This request has been made on the basis of the performance of the COPE and COPA under the much appreciated leadership given by the two Professors.

However, in the wake of the break-up of the SLPP over differences over economic and political strategy, lawmakers Herath and Vitharana have ended up among the rebels. Prof. Herath switched his allegiance to the group spearheaded by SLPP Chairman Prof. G.L. Peiris and Dullas Alahapperuma, whereas Prof. Vitharana joined the other rebel group also elected on the SLPP ticket.

The SLASA, in its letter to President Wickremesinghe pushed strongly for the re-appointment of the two lawmakers as the heads of the two parliamentary watchdog committees. The outfit warned of efforts to undermine the overall process of bringing the watchdog committees under utterly corrupt elements.

Speaker Abeywardena should look into the accusations made by SLASA without delay. In case, the Speaker felt the outfit made a deliberate attempt to mislead the President and the Parliament, it should be asked to explain.

Prof. Herath obviously angered the powers that be by courageously pursuing investigations with the support of his committee. It would be pertinent to mention that COPE investigations depend on the disclosures made by the Auditor General’s Department. AG W.P.C. Wickremaratne participated in COPE proceedings or was represented by a senior Department official. Lawmakers Patali Champika Ranawaka and Dr. Harsha de Silva, both members of the main Opposition Samagi Jana Balavegaya (SJB) played a significant role in the examinations undertaken by COPE.

Prof. Herath’s stand at the COPE where he quite clearly antagonized the top SLPP leadership can be compared with the challenge faced by lawmaker Wijeyadasa Rajapakse during Mahinda Rajapaksa’s first term. The reaction of the political party in power to investigations undertaken by watchdog committees over the years revealed the nexus between political power and corruption at every level of the government. There cannot be a better example than the high profile Litro case that exposed the government. Litro, owned by Sri Lanka Insurance Corporation (SLIC) in 2020 hired top law firms to prevent state audit of the enterprise. Over Rs 20 mn was spent on the project. Among those who had been engaged by Litro were Romesh de Silva, PC, tasked with drafting a new Constitution and Sanjiva Jayawardena, PC, member of the Monetary Board. Under Prof. Herath’s leadership COPE took a strong stand against Litro’s move. The SLPP National List member didn’t mince his words when he questioned the rationale in a government-owned enterprises objecting to state audits. Unfortunately, the COPE obviously didn’t receive the backing it required both inside and outside parliament to fight corruption.

COPE created history in May this year when it quite clearly established the circumstances leading to the unprecedented economic fallout. Governor of the Central Bank Dr. Nandalal Weerasinghe, Finance Secretary Mahinda Siriwardana and Monetary Board members, Sanjiva Jayawardena, PC and Dr. Ranee Jayamahaha confirmed how the then Governor of the Central Bank Prof. W.D. Lakshman, Finance Secretary S.R. Attygalle, Prime Minister Mahinda Rajapaksa, in his capacity as the Finance Minister, Cabinet-of-Ministers and Presidential Secretary Dr. P.B. Jayasundera pursued a dangerous economic line.

 It is a mystery why Jayamaha and Jayawardena continued to serve in the Monetary Board under successive CB Governors if they disagreed with policies pursued by them.

Against the backdrop of assurance given by President Wickremesinghe and Justice Minister Wijeyadasa Rajapakse that a new Bill would be enacted to fight corruption and fraud, it would be their responsibility as well as that of the Parliament to ensure proper functioning of watchdog committees.

In spite of the country being declared bankrupt and the vast majority of people unable to have two proper meals a day, corruption is on the march. Disclosures made by the Auditor General and parliamentary watchdog committees over the years point out that mega scale corruption takes place under the patronage of those responsible for ensuring transparency in public finance. That is the undeniable truth.

Deferred China ship visit takes place amidst diplomatic row

  SPECIAL REPORT : Part 431

Published

  2022/08/17

President Ranil Wickremesinghe salutes Air Marshal Sudarshana Pathirana at the Katunayake air base on Monday (15). Wickremesinghe visited the base where he received a Dornier Maritime Reconnaissance aircraft, gifted by India s (pics courtesy PMD)

” Sri Lanka cannot do without IMF’s support. Having declared its inability to service its foreign debt, Sri Lanka is struggling to reach a consensus with lenders and the IMF. Two of Sri Lanka’s major creditors, India and China, locked horns over a port visit by a Chinese ship. Sri Lanka should be wary of these developments as they tend to influence other lenders as well.”

By Shamindra Ferdinando

The Navy deployed SLNS Gajabahu (formerly USCG Sherman) to safely move then President Gotabaya Rajapaksa, from Colombo to Trincomalee, in the wake of the massive public protests, apparently financed and instigated by hidden hands that brought the curtain down on his presidency. The President abandoned Janadhipathi Mandiraya, before 12 noon, on July 09.

The first couple disembarked at the Trincomalee harbour, on the morning of July 10, having left the Colombo port, on the evening of the previous day. First lady Iyoma like late first lady, JRJ’s spouse Elena, is a fine woman, the whole country can be rightfully proud of, under whatever adversity.

Sri Lanka took delivery of SLNS Gajabahu, formerly of the United States Coast Guard, in June 2019, during the tail end of Maithripala Sirisena’s presidency, a time of political turmoil and uncertainty. The Vietnam War era vessel is one of the largest vessels, acquired by the Navy since Sri Lanka’s triumph over the Liberation Tigers of Tamil Eelam (LTTE), in May 2009. Sri Lanka paid for the upgrading of USCG Sherman, about 50 years old (the Vietnam war ended in 1975 with the last Americans fleeing Saigon, in helicopters, with their local dependents), along with the required spares and training for the Lankan crew.

Against the backdrop of controversy over the Chinese research and survey vessel Yuan Wang 5 docking at the Hambantota port, leased to China, it would be pertinent to discuss the transferring of vessels, and other equipment, as well as supply of fuel by the Quad grouping, comprising the US, India, Australia and Japan. In spite of China, and international shipping sites, recognizing the Yuan Wang 5 as a research and survey vessel, the Indian media referred to it as a dual-use spy ship.

The Chinese vessel, which was originally scheduled to reach Hambantota port, on August 11, and leave on August 17, finally docked therein on Tuesday (16). The Chinese Embassy invited former Public Security Minister and retired Rear Admiral Sarath Weerasekera to visit the vessel. The invitation was extended in the wake of lawmaker Weerasekera single handedly defending the right of the Chinese vessel to visit Sri Lanka, like vessels of other countries’ navies, at the government parliamentary group meeting, on August 08, to ensure the scheduled visit, while the other government MPs had kept mum.

Ambassador Julie Chung’s predecessor Alaina Teplitz, in a special message issued in 2019, to mark the 243rd Independence Day of the US, addressed several contentious issues, including the alleged setting up of an American base here, as well as transferring of the US vessel to Sri Lanka. Ambassador Teplitz is on record as having said: The sea lanes that pass beside Sri Lanka are important for many nations, which is why the United States is helping Sri Lanka’s capacity to protect its coast and waters. In June, I joined President Sirisena at the commissioning of SLNS Gajabahu, the Sri Lankan Navy’s largest vessel. A gift from the American people, the former US Coast Guard Cutter represents the United States’ commitment to strengthening Sri Lanka’s ability to protect its security and prosperity….Just like the gift of the USCG Cutter, our military cooperation is open and mutually beneficial. Every joint exercise, training in disaster response, is done at the invitation of our Sri Lankan hosts. The United States has no intention of building a base here. Instead, we are building relationships that help keep both our countries safe”.

In addition to the US vessel, Sri Lanka took delivery of two new advanced OPVs, namely SLNS Sayurala and SLNS Sindurala, built in India. Advanced OPVs were built at the Goa shipyard in terms of an agreement signed in Feb 2014. India built them at a cost of USD 66 mn and were commissioned in Aug 2017 and April 2018, respectively. Sri Lanka paid for them.

In late Oct 2021, Sri Lanka took delivery of another US Coast Guard Cutter Douglas Munro, the third such American vessel.

The first was USCG Courageous (SLNS Samudura P 621) acquired during President Chandrika Bandaranaike Kumaratunga’s presidency, in early 2005. SLNS Samudura took part in the hunt for LTTE arms smuggling vessels (floating arsenals) in the high seas.

In July 2019, Sri Lanka also took delivery of the ‘Jangwei’ class missile frigate, previously called the ‘Tongling’ in the People’s Liberation Army’s Navy (PLAN) and served until 2015.

Controversial H’tota port visit

The controversial decision to suddenly rescind permission, granted on July 12 for the Chinese ship visit, due to lobbying by India and the US, caused turmoil in China-Sri Lanka relations. China questioned the very basis of Sri Lanka’s decision, at the behest of New Delhi. China rightfully asserted that the development was quite unacceptable and a hindrance to bilateral relations. The government group meeting, held at the Presidential Secretariat on August 08 evening ,revealed the failure on the part of the new administration to address the issue at hand, properly. One-time Public Security Minister Rear Admiral Sarath Weerasekera didn’t mince his words when he strongly urged the government to go ahead with the already approved visit. The meeting, chaired by President Ranil Wickremesinghe, was attended by Prime Minister Dinesh Gunawardena and former President Mahinda Rajapaksa, MP.

The former Navy Chief of Staff challenged the very basis of cancelling the ship visit as a result of pressure exerted by India. Weerasekera didn’t receive any support from his colleagues. The Colombo district lawmaker was quite clear that Sri Lanka’s relations with the West and India shouldn’t be at the expense of all-weather friend China. Weerasekera reminded the gathering that Sri Lanka, over the years, conducted military exercises with the US, and India as well. However, the most pertinent question that had been raised by the naval veteran was the cancellation of approval given by the previous administration.

Sri Lankan ports, including Hambantota, receive warships from major powers. In spite of Hambantota port being leased to China, the port received warships, even from the US. Destroyer USS Spruance and large transport vessel USNS Millinocket had been at the Hambantota port at the time of the April 2019 Easter Sunday massacre. The 7th Fleet vessels were here for Cooperation Afloat and Readiness Training (CARAT) exercise. The attacks compelled the US to cancel the planned exercise. According to US Navy statement, issued ahead of the suicide blasts, during CARAT’s Sri Lanka phase, the Navy and Marine Corps planned to work with Sri Lankan armed forces at sea, to test communication, coordinate and respond to scenarios, at sea, to include maritime patrol operations, maneuvering exercises, surface gunnery drills, visit, board, search and seizure drills, vertical replenishments operations, flight operations and search and rescue swimmer exercises.

There had never been opposition to US and Indian warships’ visit to Sri Lanka. Sri Lanka even received Indian aircraft carrier INS Vikramaditya, at the Colombo port, during the yahapalana administration. The visit, undertaken in late January 2019, marked a higher status in Indo-Lanka relations. INS Vikramaditya, one of the two aircraft carriers operated by the Indian Navy, was accompanied by missile destroyer INS Mysore.

In August 2017, President Maithripala Sirisena renewed the ACSA (Acquisition and Cross Servicing Agreement) with the US that paved the way for unhindered access here to US forces. President Mahinda Rajapaksa’s administration first signed the ACSA, in March 2007, that facilitated specific US intelligence on LTTE arms smuggling ships on the high seas. The US-Sri Lanka relationship cannot be examined without taking into consideration the solid US-India partnership meant to counter China. Obviously, vis- a-vis Sri Lanka, Indian and the US stands appear to be the same. Both countries are deeply resentful of China securing the Hambantota port for commercial purposes, on a 99-year-lease, in 2017.

Contrary to concerns expressed by various interested parties, even commercial vessels cannot be berthed at the Hambantota port, without the approval of the Harbour Master of SLPA and the Sri Lanka Navy. In addition, a naval vessel cannot be berthed at the Hambantota port, without the approval of the Ministry of Defence (MOD), the Ministry of Foreign Affairs and the Sri Lanka Ports Authority (SLPA).

In fact, two Indian navy vessels visited the Hambantota port for replenishments, in March this year. Naval vessels from Japan, Indonesia, Russia and the USA have called at the port of Hambantota. But, the recent Chinese ship visit has caused such an uproar by the unfair intervention of India, egged on by the US to block it, that the public may tend to think that navies of other countries are not allowed to visit Hambantota.

Indo-Lanka relations

Speaking on the occasion, High Commissioner Gopal Baglay emphasized
that induction of the aircraft would help in creating a peaceful environment for progress and prosperity of the people of India and Sri
Lanka. Gifting of Dornier aircraft underscored the cooperation
between the two maritime neighbours in the defence and security
spheres, Baglay declared, adding such cooperation is envisaged to add further capability and capacity to Sri Lanka and is in line with the
vision of Security and Growth for All in the Region (SAGAR)

In keeping with India’s much-touted ‘Neighbourhood First Policy,’ New Delhi has provided critical financial and material support in the wake of the economic fallout. Although the Covid-19, and the war in Ukraine, contributed to the crisis, Sri Lanka must accept responsibility for her plight caused by years of financial mismanagement, waste, corruption and irregularities coupled with the failure of our intelligence to prevent outsiders from exacerbating matters here, like how the Galle Face protests were well financed from outside our shores and how it was allowed to be projected as a non-partisan and non-violent indigenous movement. All we can say is that all the masterminds there were very good paid actors.

Amidst controversy over the Chinese ship visit, President Ranil Wickremesinghe on Monday (15) accepted a maritime surveillance Dornier aircraft from India. Vice Chief of the Indian Navy, Vice Admiral S. N. Ghormade, handed over the aircraft. Interestingly, Sri Lanka received the Dornier from the inventory of the Indian Navy while the state-run Hindustan Aeronautics Limited (HAL) is in the process of building two Dornier aircraft for Sri Lanka. Once India delivered them, the aircraft Sri Lanka took delivery on Monday would be returned.

There had never been a previous instance of China and India publicly commenting on a situation involving their assets visiting Sri Lanka. India has rejected Chinese accusations that New Delhi pressured Colombo against the visit by Yuan Wang 5 to the Hambantota port. India declared that it would take decisions based on its security concerns.

External Affairs Ministry spokesperson Arindam Bagchi (former Indian Deputy High Commissioner) is on record as having said that Sri Lanka, as a sovereign country, made its own independent decisions and noted that India would make its judgment on its security concerns, based on the prevailing situation in the 1region.

Sri Lanka must be mindful of India’s security concerns but that shouldn’t be at the expense of her relations with China. Former General Secretary of the Communist Party D.E.W. Gunasekera told the writer that there had never been a similar interference by a third party in Sri Lanka’s bilateral relations with any country.

Wikileaks, in the past, disclosed a range of classified diplomatic cables pertaining to Sri Lanka. One quite interesting cable, that originated from the US mission, in New Delhi, dealt with India’s concerns over the planned Chinese building of an international port at Hambantota. The project got underway in January 2008 as the military was clearly gaining the upper hand as it battled the LTTE on the Vanni front.

Let me reproduce the relevant section of the US diplomatic cable that dealt with the April 26, 2007, meeting a New Delhi-based US diplomat had with the then Joint Secretary, at the External Affairs Ministry Mohan Kumar. Having functioned as the Desk Officer in charge of the Maldives, Bangladesh and Sri Lanka (1990-1992), Kumar received the appointment as Deputy High Commissioner, in Colombo, in late 2001. At the time Kumar had taken up the Hambantota port issue, with the US, as revealed in the Wikileaks cable, he had been head of the division that handled relations with Sri Lanka, the Maldives, Myanmar and Bangladesh.

Kumar has discussed the Indian Navy stepping up patrols in the waters, between India and Sri Lanka, while expressing concern over the Chinese role in the Hambantota port project. Kumar has also bitterly complained about Chinese taking advantage of the situation in Burma, at the expense of India, and warned that the US pressure on New Delhi to take up democracy and human rights issues with the Burmese military leadership facilitated the Chinese project there. The US diplomat quoted Kumar as having told him “We’re getting screwed on gas”.

“The situation in Sri Lanka is bad, really bad – beyond bleak” in Kumar’s judgment. Characterizing the government and the LTTE as two sets of people with scant regard for the international community,

Kumar was skeptical that political progress could be achieved anytime soon. He confirmed reports that the Indian Navy has stepped up patrols in the Palk Strait, and said that India and Sri Lanka are doing coordinated patrolling to prevent the smuggling of weapons from the Tamil Nadu coast. Kumar said it would be helpful to get the American assessment of the port being built in Hambantota, which he estimated China was willing to spend $500 million to help develop. He noted that China has increased its influence with President Rajapaksa, opinioning that Rajapaksa had a ‘soft spot’ for China, following his visit to Beijing on March 9″.

India worked overtime to thwart Chinese projects here. Former President Gotabaya Rajapaksa once alleged that Indian National Security Advisor Ajit Doval asked him to cancel the USD 1.4 bn Chinese flagship project, the Colombo Port City. Declaring that demand shouldn’t have been made, Gotabaya Rajapaksa also quoted Doval as having called for the taking over of the highly successful Colombo International Container Terminals Limited (CICT), a joint venture between China Merchants Port Holdings Company Limited (CMPH) and the Sri Lanka Ports Authority (SLPA). CMPH holds 85% of the partnership whilst the balance 15% is held by SLPA.

Rajapaksa further quoted Doval as having told him that India wanted all Chinese-funded infrastructure projects stopped and for Sri Lanka to have full control of the Hambantota port. Rajapaksa quoted Doval as having said: Sri Lanka is a small country; you don’t need such development projects.

The Quad has dealt with Sri Lanka in a systematic way. Australia donated two large patrol vessels years ago and recently has been providing fuel for both the Navy and the Air Force as part of the overall support to ensure ongoing operations meant to thwart would-be asylum seekers. In spite of a change of governments, Australia has maintained strong links with Sri Lanka to derail would-be asylum seekers’ plans to smuggle themselves there in multi-day fishing craft, despite so many such odysseys being thwarted.

The other Quad member Japan entered into a comprehensive partnership with Sri Lanka in Oct 2015. The then Premier Ranil Wickremesinghe signed the agreement on behalf of Sri Lanka whereas the late Shinzo Abe endorsed it for Japan. Japanese warships frequently visit Sri Lanka. Consequent to the signing of the comprehensive partnership agreement, the Japanese Defence Minister Itsunori Onodera even visited the Hambantota port.

Sri Lanka will have to deal carefully with Quad as well as China. The unprecedented economic crisis has weakened the country and exposed it to external interventions, in different forms. The failure on the part of those political parties, represented in Parliament, to reach a consensus on a far reaching political arrangement to restore public confidence as well as secure international backing for recovery efforts, might be all part of the overall plot by the West to destabilize us for being friendly with China.

As for New Delhi she must remind herself that going by history China never had any evil intentions against her unlike the West that plundered and enslaved much of the world, including India.