Financial Times

Treasury moves against Udaya
Controversial Tourist Board chairman Udaya Nanayakkara came under intense scrutiny last week when anti-bribery and corruption officials seized files and documents from his office; access to a tourism development fund was frozen by the Treasury and board members rejected a proposal to award a furnishing contract.

Official sources said Mr Nanayakkara was absent when some 20 officials from the Bribery and Corruption Commission walked into the office on Thursday and after a search left with files and documents pertaining to contracts and tenders.

They said pressure on the Tourist Board chairman who has refused to quit over allegations of excessive spending continued throughout the day as Treasury Secretary Dr P.B Jayasundera ordered the management of the tourism cess fund, the only cess fund outside the control of the Treasury unlike tea, rubber and coconut, to come under the Treasury with immediate effect.

Though not making direct accusations, the Treasury circular said that certain expenditure made out of cess funds “are not related to the specific development activities and thrust envisaged in the relevant statutes.”
He said the cess would be managed by a committee comprising the Treasury Secretary, Tourism Secretary and Tourist Board chairman in a professional manner. Funds would be allocated by this committee to the relevant organisation on a monthly basis.

The Tourist Board chairman was not available for comment. Adding to his woes however was rejection by the directors – on the same day at a board meeting – of a contract to Nanayakkara’s Ceylon Carriers group to provide furniture to a section of the Tourism Board office under a controversial refurbishment deal. This came after Bennet Cooray, earlier nominated by President Mahinda Rajapaksa to take over as chairman but later relegated to being a board member, didn’t come for the meeting but sent a letter of protest opposing the selection.

When a discussion broke out over the issue, Mr Nanayakkara walked out of the meeting, the sources said.

Board officials at the same meeting also objected to a proposal to sanction an overseas ‘study trip’ for the H.M.S Samaranayake-led committee that’s studying the new Tourism Development Authority to see whether it is in line with the Mahinda Chintana policies. They said it was wrong to present a proposal on an overseas visit that had earlier been rejected by President Rajapaksa.

The sources said that they believed last week’s developments came after a meeting of a committee of officials monitoring the affairs of the board where representatives including trade unions had raised many concerns over the spending spree of the board and lack of transparency in the transactions.

This committee is part of a strategy by the President to appoint committees in all government departments and agencies to monitor the affairs of that organisation to ensure good governance, transparency and accountability. Representatives come from all sections of these organisations.

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