Crucial facts about the disastrous oil hedging deals of the Ceylon Petroleum Corporation (CPC) have been withheld from the Committee of Public Enterprises (COPE) which presented its latest report to Parliament last week, Sri Lanka’s top anti-corruption buster and public interest activist alleged this week. “(I observe that) the COPE Interim Report does not disclose [...]

The Sundaytimes Sri Lanka

COPE denied all facts in oil hedging cases, Nihal Ameresekere alleges

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Crucial facts about the disastrous oil hedging deals of the Ceylon Petroleum Corporation (CPC) have been withheld from the Committee of Public Enterprises (COPE) which presented its latest report to Parliament last week, Sri Lanka’s top anti-corruption buster and public interest activist alleged this week.

“(I observe that) the COPE Interim Report does not disclose the totality of the facts, whereby the reality of what had transpired had been suppressed from COPE, the Parliament and the public,” said Nihal Sri Ameresekere who vigorously challenged the deals in the Supreme Court.

The oil hedging deals were exclusively exposed by the Business Times leading to parliament debates, fundamental rights cases filed in the Supreme Court and the Executive disregarding a ruling by the court which resulted in the then Chief Justice Sarath N. Silva being compelled to dismiss the case.

Mr. Ameresekere, on Thursday wrote to COPE Chairman D.E.W. Gunasekera and Attorney General Palitha Fernando expressing shock and dismay that COPE has not been provided with all the facts.

He said “I was wrongly prevented on baseless grounds from having these oil hedging deals adjudicated upon in our country, resulting in the foregoing colossal losses of public monies, for which those responsible, necessarily ought be (have been) held accountable and responsible”.

In a detailed letter setting out the sequence of events in which he filed public interest petitions against the hedging deals, Mr. Ameresekere said he filed a petition when Standard Chartered Bank (SCB) violated provisions of the Exchange Control Act by remitting US$107.7 million to its Head Office in UK without the prior permission of the Central Bank.

When SCB, Citi Bank and Deutsche Bank filed action overseas seeking compensation and ‘due’ payments, Mr. Ameresekere filed further action in  seeking ‘anti-suit injunctions’ to ‘estop foreign legal proceedings’ as Sri Lanka was the proper forum.

He said in his fundamental rights cases the then Attorney General, Mohan Peiris appearing for the CPC and the Secretary to the Treasury having conceded that the oil hedging deals were illegal, however vehemently objected to his applications for Sri Lanka’s Supreme Courtto exercise jurisdiction.

Further relating the sequence of events, he said at one point “I put the then Hon. Attorney General, Mohan Peiris P.C., on notice of his foregoing unequivocal public assurance and guarantee, that no monies whatsoever of public funds would be paid to the aforesaid banks, and that he would recover total costs incurred in spending public funds”.

Referring to the London Commercial High award of $161 million against the CPC, he said he believe this settlement “had been a compromise, as a consequence of (an) penalty of $245 million imposed on the SCB by the Controller of Exchange, and ought to have been so fully disclosed”.

He urged the Attorney General, Palitha Fernando to take action, without fear or favour, regardless of the status of the persons concerned.

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