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luxury vehicle deal
My only jury is the people-CBK
President responds to a cabinet sub- committee report on the controversial
President Chandrika Kumaratunga this week presented to the cabinet her responses to the report submiteed by the Cabinet Sub Committee which probed allegations about the alleged luxury vehicle deal involving the President.

President Kumaratunga denied all allegations and said that her only jury would be the people of the country and added that attempts to tarnish her reputation would not succeed.

The President said that vehicles were always available for inspection and they were purchased under special security circumstances for financial provision was made through within the over-all budget and how it was provided should be known by the General Treasury.

Responding to the question regarding the background of R.R. Navigrareim company, the President said that it had now been established that it was a German Company, despite previous claims that it was a Hong Kong company.

She said that all vehicles imported were of German origin, made by the BMW company and supplied by the duly authorized agents, with due warranty.

The President said she was surprised that members of the Cabinet Sub Committee were demanding information from her regarding the shareholders and owners of companies from which purchases of vehicles had been made.

"Of course a Minister would engage in this exercise if he is interested in contacting the said shareholders or directors for reasons of a special sort.
But I wish to inform this cabinet that this President who is also the Head of State has not done, does not or will in any event engage in this type of dubious activities," she said.

President Kumaratunga setting out a sequence of events regarding the issue of the vehicles said initially there had been a discrepancy about the number of vehicles "only because the two Hon. Ministers who made these allegations gave varying numbers at various times".

"The simple and incontrovertible fact is that all the vehicles and motorcycles are in the custody of the Presidential Secretariat and are available for inspection. Likewise the five Daewoo Cars gifted to the Government are available for inspection.

"The other new allegation made is that for some dishonest reason I have not registered 08 numbers of the Benz cars with the Commissioner of Motor Vehicles and then Mr. Choksy goes to command me to explain "why this was not done".

Regarding the first allegation of 13 missing vehicles, the only manner in which to ascertain with any finality, whether these were robbed or not, was to have undertaken the exercise that I proposed to the Cabinet in my note of 10th july, i.e. to view/ inspect all the vehicles under discusssion and check on the engine numbers/ chassis numbers etc. that the Hon. Members of the Cabinet Sub-Committee had the indiscretion to demand from two government authorities, who were deemed to maintain these records in a confidential manner, due to the security risks that would ensue if this was public knowledge. (I have discussed this matter in detail in my cabinet memo of 10th July).

"Having agreed on many occasions and finally at Cabinet Meeting of 17th July, to send me a list of names of the "team of officials" as proposed by Mr. Choksy in his note to Cabinet of 17th July and also his letter to me of 12th July, the Cabinet Sub-Committee has steadfastly refused to carry out the Cabinet decision.

"The only reason I can adduce to this is that the Cabinet of Ministers are well aware that the malicious and calculatedly false allegations regarding 13 missing vehicles made against me would be laid bare as a complete untruth."
"The argument of the Cabinet Sub-Committee is that since the chassis numbers and engine numbers are available both with the local agents and several government departments there is no real threat to security.

"The existence of documentary material in the custody of different agencies with secrecy imposed by law and business practice is a customary safeguard.

"On the other hand, obtaining such information and collating the same and making them matters of public knowledge greatly accentuate the risk to security.

"This, the Cabinet Sub-Committee seems to have done already. Hence, my commitment that the Cabinet of Ministers 'has now very efficiently made it possible for the LTTE and any other terrorists to access this highly secret information.' Neither I nor my office will be party to the disclosure of such information."

The President cited a series of incidents in which her security was under threat and said "as for getting approval of the Cabinet, it was not considered necessary because I had decided by the reason of the situation of grave emergency to deviate from normal tender procedure.

"Regarding the financial provision made in the estimates of the President's Office for purchase of vehicles in the year 2000 (actually estimated in the previous year) was totally inadequate for the unexpected requirements following the events described above, I directed the General Treasury to find the extra funds, following appropriate procedures.

"This was in the hands of competent officials at the Treasury and I had every reason to believe that they would have done it in the correct way.

Some of these officers are still in the Treasury, occupying even more senior positions than in the year 2000. If the Cabinet Sub-Committee desires to obtain more details, the Minister of Finance should be able to procure the necessary information."

Regarding issue about R. R Navigareim Im & Exp. Germany the President said:

"The Cabinet Sub-Committee asks the question why this company had been named as the beneficiary in some of the applications for Letters of Credit made by the Presidential Secretariat. Particulars of the ownership of the company are also sought.

The simple answer is that this company was named as the beneficiary in all (not some) applications made for Letters of Credit in respect of the import of BMW and Land Rover vehicles because the local Agents (M/S. Prestige Automobile Pvt. Ltd) indicated the name of this company for this purpose. This company was not a party selected by the Government.

"We had no direct dealings with this company, except that its name was included in the documentation, as advised by the Agents, with whom we negotiated and from whom we bought these (BMW and Land Rover) vehicles.

Every purchase of a BMW vehicle through Prestige Automobile Pvt (Ltd) has to make payment by Letter of Credit in favour of the R.R Navigare Company.

"As for the ownership of this company, we are unable to furnish this information because it is not the practice to inquire about the owners when making purchases from a company. In this instance we dealt with the managements of the two local agents. I have not the slightest acquaintance.
"Anyone who wishes to know and speak the truth is aware that when a vehicle is ordered it is done through the official local agent. All procedures of payments, warranty, etc. are handled by the agent.

The Letters of Credit were opened in favour of M/s. R R Navigareim Im & Exp Germany on instructions of the local agent, as is always done when anyone orders any goods through any local agent.

"All I can request this Cabinet for the first and last time is to try to live upto the great expectations of the people of this country who decided that the two major political parties of the country, together with most of the parties representing minority communities should work together'.

"If anyone believes that the repetition ad-nauseum of all kinds of diabolical lies and disgustingly lowly statements designed to throw mud at my reputation for honesty and transparency will embarrass me; suffice it is to be said that their enterprise, fully supported by intimidated and subservient media, will not succeed.

My only jury shall be the people of this country, who have decided twice over, with one of the largest majority of votes, anywhere in the world, that they wish to have me as Head of State'.

"I have Chaired Cabinet meetings for the last eight years.

The lack of discipline, rudeness and calculated statements of untruths and the violation of all democratic Cabinet traditions since 5th December 2001, saddens me and also frightens me, not for myself but for the future of democracy and human decency, which would be seriously jeopardised by this type of attitude, mean strategy and behaviour, in the second most supreme executive body of the country."

On the issue about Ports of Shipment/Air Freighting the President had said; 'The Benz and BMW vehicles ordered are high security vehicles, normally built specially to meet the requirements of a customer; the specifications are agreed to in advance; the vehicles are manufactured in Germany and most of the units are shipped/air-freighted from European ports.

However, it would not appear that a few have been sent through Asian Ports. Out of the 18 BMWs, 15 were air freighted directly from Germany.

Three were air freighted from Hong Kong, Jakarta and Brisbane as the same were available ex-stock with BMW's operations in Hong Kong, Jakarta and Brisbane respectively.

"According to the documents available in the Presidential Secretariat, the original agreement, as given in the Letters of Credit, has been to send these vehicles from 'any European port'. But at some stage this has been amended to read 'any European or Asian port'.

Apparently, this has been done to procure the vehicles urgently, by diverting some vehicles ordered for others. It would normally take about 12 months to manufacture and deliver high security vehicle.

This kind of delay would have defeated the purpose for which the vehicles were being imported-to provide security for those under threat as a matter of urgency.

"Irrespective of the port of shipment or air freight the vehicles were brand new, manufactured in Germany and bearing the manufacturer's warranty. No mileage had been done and they were not registered in any of those Asian countries."

President prepared to exercise her powers
President Kumaratunga on Friday pledged that she would not hesitate for a moment to exercise the executive powers vested in her to prevent the dismemberment of the country and to avert any serious dangers that the country may be called upon to face.

"I wish to make another pledge to my people, who have twice elected me resoundingly to the supreme office of President. I shall not hesitate to adopt every necessary measure in terms of the powers entrusted to me under the constitution, in the event of any threat to the unity of our motherland or the security and safety of its citizens," the President said.
Addressing the nation over state television, President Kumaratunga also said she had no intention of dissolving Parliament at this point of time and accused the media of misleading the public.

"In the past eight months, state-owned and private electronic media have indulged in this exercise 2342 times, at the rate of several times a day. Cabinet Ministers, and media personnel directly connected to the UNP, are employed to hurl these abuses at me. Their statements are almost totally false.

"In addition the daily newspapers have published over 700 false news reports about me or my actions. For instance, a misleading report about me has been telecast or broadcast over 30 times, but the correction sent by my office has only been broadcast once or twice."

Referring to her recent mimicry of the Finance Minister at a party meeting in Polonnaruwa, the speech of which was repeatedly telecast by several television stations, President Kumaratunga said, "After I was insulted and abused thousands of times, a statement I made jokingly at a party's confidential discussion was telecast three or four times a day for the past 18 days."

However, the President pledging her support to the people said that "despite all the threats and intimidation, insult and abuse and mud-slinging hurled at me, I will not run away from the responsibilities entrusted to me by the people.

The people of this country know well that I cannot be subdued by threat and intimidation."

During the fifteen minute speech, the President spoke solemnly of the situation in the North warning the government of the threats posed by the LTTE even in times of peace.

Claiming she has reliable reports that while the ceasefire agreement was in force the LTTE was engaged in establishing its own law courts and legal systems, police stations, prisons, banks and various other institutions in the North and East, President Kumaratunga said , "They are also involved in arms smuggling and the conscription of children."

"I am also informed that the LTTE is harassing especially the Muslims, as well as the Sinhala people, living in the Eastern Province. I have drawn the attention of the Prime Minister, the Defence Minister and the Security Council and given advice with regard to these incidents."

Alleging that the freedom of the media was being suppressed to a large extent, the President said, "The politics of terror and intimidation that raised its ugly head for the first time between 1977 and 1994 has begun once again to be practised since December 2001. Since 1994 my first government put an end to the regime of state terror perpetrated against Tamil and Sinhala youth in the decade of the 1980s."

The President also voiced her anxiety regarding the negative effects moves made by the government would have on the cohabitation.

"Need I ask you whether cohabitation could be made to function unilaterally under the circumstances I have mentioned ? People ask me whether this is another red-herring to divert attention from the burning issues of the day."

"Despite all these difficulties I have for my part continued to cooperate for the sake of my country, and I am prepared to extend that support even in the future. But for cohabitation to be a success, the other party has to reciprocate," she said.

"Ad-hoc amendments to one or the other of the clauses of the Constitution, according to the whims and fancies of someone, could prove dangerous to democracy. As I have often stated the Constitution of Sri Lanka needs to be amended.

But it should be done in a comprehensive manner together with the abolition of the Executive Presidency, the reform of electoral systems and should contain solutions to the ethnic problem."


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