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Challenging 2016 for Govt – popularity test at local polls
View(s):Though PM wants elections before April, President says they will be held in the latter half of the year
Ministers take seasonal holidays; only 20 of 45 Cabinet members present at last meeting
Ravi submits memo to give Rs. 300 m to Hilton promoter, but Kabeer Hashim objects
It seems a strange but humorous co-incidence. Birds and politicians, who are poles apart, have developed something common. It is now migratory season for both. For ages, birds of different species have been flying to Sri Lanka to avoid the bitter winter in their habitat in faraway lands. Bird lovers and ornithologists take delight in identifying them, learning their migratory patterns and endurance. The migratory season of sorts for politicians seems to be in the reverse, going for holidays abroad. Gone are the days when they would crowd the salubrious hills, the balmy beaches and wildlife reserves in their own country.
How governance is affected by their absence was reflected at last Wednesday morning’s weekly ministerial meeting. Of some 45 Cabinet members, only 20, less than half, were present. Among the 25 who were absent, most were abroad. At least two were in hospital. Among the heavyweights absent were Prime Minister Ranil Wickremesinghe, Finance Minister Ravi Karunanayake and Foreign Minister Mangala Samaraweera. It would be unfair to say they do not deserve a good holiday after a month of sitting in their seats in Parliament to pass the first proper budget of the UFGG Government, one that generated controversy and lit the flames of trade union unrest all round. On the other hand, there were concerns at the highest levels about the disturbing political climate and a lack of direction.
That such flames would continue to flicker in the New Year which dawns on Friday was of primary concern to President Maithripala Sirisena. He appealed to the ministers present to spend time engaging members of the state administrative service and others to address their needs. Not surprisingly when there were intelligence warnings that some trade unions were girding their loins for strike action in the New Year. The reports even suggested that there were strong political overtones behind the threats. A new political party is to be formed by supporters of former President Mahinda Rajapaksa. It will join a broad opposition alliance in a move coinciding with trade union protests. That such acts could reach a crescendo during the upcoming local council elections heightened concerns.
That was not the only issue to dominate a depleted session of the Cabinet of Ministers on Wednesday. An issue that took considerable time to discuss was a memorandum submitted by Finance Minister Ravi Karunanayake. It recommended that the Government pay Nihal Sri Amerasekere, described as “a professional consultant,” Rs. 300 million “plus interest to date.”
Earlier, Asoka Ranwala, a Janatha Vimukthi Peramuna (JVP) provincial councillor, petitioned both the Commission to Investigate Bribery or Corruption (CIABOC) and the Financial Crimes Investigation Division (FCID) that Amerasekere had received a Rs. 100 million overdraft from the Bank of Ceylon for thirty days. A source in the financial sector confirmed that the money that had been paid to him without any collateral has not yet been fully settled. The request for the Rs. 100 million overdraft had been made on December 9, 2014, co-incidentally the time Amerasekere supported the previous Government’s moves to impeach former Chief Justice Shirani Bandaranaike. He also came on national television to support the move.
The FCID, the Sunday Times learns, was seeking legal advice from the Attorney General’s Department on whether Ranawala’s complaint came within the ambit of its responsibilities. It is highly unlikely the FCID would undertake an investigation since, it felt, there was no criminal action involved, said a Police source. It was a matter for the bank to pursue. CIABOC officials declined comment on the matter. However, sources familiar with their investigations said they were still deliberating on whether to proceed with the inquiry, or drop it.
The Cabinet Memorandum, seen by the Sunday Times, notes that Amerasekere “has been the main promoter, Director and Subscriber of Hotel Developers (Lanka) PLC (HDL), which had promoted and developed the Hilton Hotel, immediately after the ethnic riots of July 1983.” Some highlights of the three-page memorandum:
“Upon having discovered a fraud in the construction of the Hilton Hotel, Mr. Amerasekere, as a shareholder of HDL, had filed in 1990 a derivative action in law, in the right and on behalf of HDL, D.C. Colombo case No. 3155/Spl, preventing any payments being made to the Japanese Consortium, Mitsui & Taisei, who constructed and developed the Hilton Hotel, as and by way of Loans to the HDL, which had been guaranteed by the Government.
“Subsequently, in the context of Japan at that time having been the major aid provider to Sri Lanka, the Secretary to the Treasury and the Hon. Attorney General had intervened with Mr. Amerasekere urging that his cases be amicably settled.
“Accordingly, draft Settlement Agreements had been formulated by the Hon. Attorney General, in concurrence with the Treasury, and which had been forwarded to Mr. Amerasekere in June 1993. These Settlement Agreements.
on the insistence of Mr. Amerasekere, had provided for defaulted interest for 9 years on these Japanese Loans and 30% of Loan Capital to be written-off, with the balance unwritten of Loans to be re-scheduled over period of 13 years at 6 % p.a.
“For such benefit gained by the Government, as the Guarantor of the Loans, the (previous) Government had agreed to adequately compensate Mr. Amerasekere for his professional time and efforts, and to afford him representation on the Board of Directors of HDL, as per the Clauses in the draft Settlement Agreements….”
“In view of the immense benefit gained by the Government, as had been contained in the draft Settlement Agreements of June 1993, the Government had agreed to compensate Mr. Amerasekere for his professional time and efforts, and to afford him representation on the Board of Directors of the HDL, as per the Clauses in the signed Settlement Agreements of June 1985….. Apart from the financial claims, Mr. Amerasekere has requested three board members to be nominated by him to the HDL board. To settle that matter he has agreed to one seat to be nominated by him in the HDL board…..”
“…….In this background, the Treasury by a letter dated 15.12.2014, has communicated to the General Manager of the Bank of Ceylon with a copy to Secretary to the President and the Competent Authority that the Treasury has no objection in granting an advance of Rs. 100 million to Mr. Amerasekere in view of the proposed final settlement in lieu of all claims with respect to HDL, which may be finalised in consultation with the Competent Authority appointed under the Revival of Underperforming Enterprises or Underutilised Assets Act No 43 of 2011 and that the final claim amount will be remitted to him upon the finalisation of the claims. This without hesitation would certainly have had the concurrent approval of then President, Finance Minister, Mahinda Rajapaksa….”
Separately, in a letter dated March 25, Amerasekere had told Finance Minister Karunanayake; “We have cited instances, where the Government had paid much higher professional compensation to others, on transactions, which have caused colossal losses to the State, and even on borrowing; whereas the write-off obtained by us, with strenuous endeavours and litigations, had immensely benefited the Government.”
During discussions at Wednesday’s ministerial meeting, it was Public Enterprise Development Minister Kabeer Hashim who raised issue. He said he strongly objected to the memorandum on two grounds. One was the fact that Hotel Developers Limited, the owning company of Colombo Hilton, came under his Ministry’s purview. He was the Minister in charge of the subject now. (Hilton was under Karunanayake earlier). Secondly, he said, this was a controversial issue involving millions of rupees and should not be simply approved. The view was endorsed by Justice Minister Wijeyadasa Rajapakshe. It may be recalled that both Premier Wickremesinghe and Minister Hashim made an appeal to HDL directors to resign so a new board could be named. The earlier board, appointed after the Presidential election in January by Finance Minister Karunanayake declined the request and continues to remain in the office.
Discussions at the ministerial meeting saw a proposal from Minister Sarath Amunugama. He moved that no minister should forward any Cabinet Memoranda on subjects that came under others without first consulting them. The proposal was unanimously accepted. It was decided to discuss the matter further when Premier Wickremesinghe and Finance Minister Karunanayake, whose budget proposals were further changed this week, were present at the ministerial meeting.
President Sirisena this week directed that the import tax on hybrid vehicles be lowered to five per cent from the previous 50 per cent announced in the budget. For the first time, Sirisena admitted in an interview with our sister paper Irida Lankadeepa that there were ‘some mistakes made’ in the budget but added that as a whole it was a very good one. Edited excerpts of the interview appear in a box story on this page. Sirisena tacitly indicated that he could be the Prime Ministerial candidate of his party when elections are held at the end of his current term. That is with the Executive Presidency being abolished and the Prime Ministerial system restored. He avoided being pointed by saying he could not forecast what is to come but insisted he had only declared that he would not contest another term as President. He pointed out that he was referring to the presidency and not about his political future. “I will continue with my political philosophy,” he added.
Some of the answers Sirisena gave made clear there was a clash of ideas among the duo running the country — President Sirisena and Premier Wickremesinghe. Since they were representing two different and the largest political parties in the country, such differences are to be expected. Wickremesinghe had declared that local council polls would be held by April next year. He said that his Government should know by early January how it would be conducted since it would take the UNP a month to select its candidates. Sirisena declared that elections would be held only in the second half of next year and added that it would be after the electoral reforms are introduced. Such reforms, he said, would be finalised by the Constitutional Assembly well ahead of the drafting of a new Constitution.
Sirisena said delimitation of wards of local bodies had been carried out but there were objections. Thereafter, another Committee was named and it sought public proposals. Now, there were more than 2,000 different responses. They have to be studied. It would take three to four months. It is only thereafter that polls would be held. “I believe that would take at least six months, he said and asserted that it would be after April next year.
He was asked how the Sri Lanka Freedom Party (SLFP) would field candidates, particularly after he had assured that he would lead the campaign. “We will contest under the UPFA banner,” Sirisena replied. There are eight different political parties we have now included in the alliance. He said in the future the UPFA would sign agreements with them. We will go to the polls as UPFA with the backing of these parties, he pointed out.
Sirisena declared, “A question many ask is how Premier Wickremesinghe and I will conduct the upcoming polls. That is the unique feature of a democratic country. We have to learn the good traditions of democracies like the United States, Britain, Japan, and Germany. Both Premier Wickremesinghe and I will conduct our campaigns on the policies of our party and will not indulge in personal criticism. We will seek the mandate of the people on the basis of the manifesto we will place before them.”
On a possible rapprochement with former President Rajapaksa, Sirisena said he had no issue about personalities. My appeal is to unite all for the benefit of our party. “I am not concerned whether the person is black or white,” he added. He said MPs who voted against the budget would not be punished on disciplinary grounds.
A New Year – 2016 – dawns with some key promises on the Government’s agenda. They include a new electoral system, a new Constitution, a salary increase for state sector workers and the introduction of a Right to Information Act among others. On the minus side, trade unions are flexing their muscles, the rupee’s value to the dollar is taking a downward plunge, and unemployment is on the rise — concerns are voiced from the International Monetary Fund (IMF) over the country’s economy. Allegations of corruption and abductions by influential politicians continue. All in all, it will be a challenging 2016 with a popularity test at the local polls.
 President Maithripala Sirisena After presidency, Sirisena says he will remain in politics When we speak of the Executive Presidency, we are aware that in 1978 the late J.R. Jayewardene created a powerful office. The 1978 Constitution conferred on the holder of the office unprecedented powers not wielded by any other leader in the world. It created the character of a monarchy. When one speaks of democracy and independence after the 18th Amendment, I view it as a catastrophe. With technology, people now live in a free society. The common people cannot be bound by fences, chains or walls. If the appointment of members to the Judicial Service Commission and appointment of state officers are exercised by one individual, see the consequences the country faces. Here, the issue is not about the individual. The abuse of personal power in taking arbitrary and incorrect decisions without consulting the intelligentsia, relevant experts and prominent personalities causes serious problems for the country. I cannot discuss the subject in detail now. We obtained the passage of the 19th Amendment with the support of the United National Party, which helped me to come to power, together with other political forces and the Sri Lanka Freedom Party. At that time, there were only 47 UNP MPs. The UPFA including the SLFP had more than 140 MPs. The support of the UNP as well as other political forces, with the intention of giving effect to national common objectives, we passed 19A by a two thirds vote. That historic honour goes to all 215 MPs who cast their votes. Now look at the establishment of independent commissions. We have talked for more than 40 years about an independent Elections Commission. We spoke in Parliament. There was media discussion. However, no one was able to introduce it. Just a month ago, we were able to set up the Independent Elections Commission. We have been speaking for a long time about a free and fair election process. We can therefore be happy. With the establishment of the Police Commission, the Public Service Commission, the Human Rights Commission and the Judicial Services Commission also, there is great satisfaction in the country. Look at the judiciary. If we look at different phases of time, how much of pressures they were subjected to? With the 1978 Constitution, the late J.R. Jayewardene’s time, the houses of judges were stoned. There were protests outside their houses. When there was a decision to summon the Chief Justice before Parliament, he resigned. In the recent past, a lady Chief Justice, after a 48 hour inquiry, was removed from office. The JSC (Secretary) was assaulted. We saw how much the executive powers were used to stifle the judiciary. When one looks at the past one year, how effectively has the judiciary been functioning? When we examine all these aspects, we can see how impartially the judiciary is working. When we take all these spheres, we can be content. But, in day-to-day issues, including the cost of living, there may be an unsatisfactory situation. I accept that. Yet, more than what hurts the stomach, people’s freedom, democracy, the free environment to live, human rights within the country’s Constitution are all being consolidated as we move on. There are no white vans today. There are no (political) murders. There are no abductions. If such things occur, the law will deal with any person. We can talk at length over these matters. Bearing in mind this situation, I say with responsibility that we are taking measures to uplift the living standards of the people. I am happy with the phase at which things are moving. Q: On the one hand you are releasing LTTE suspects. On the other, you are jailing military officers. That is one of the allegations against the Government. What is your response? Then take the case of Pillayan (Sivanesathurai Chandrakanthan), who was the then Eastern Province Chief Minister. It is all too well known what he was doing earlier. I am not saying they are wrong. See how much of wealth Kumaran Pathmanathan alias KP enjoyed. Supplying weapons, operating ships, procuring explosives were all carried out by him. How did the previous Government treat him? The kind of freedom that was given to him to move around. See his position today. Why Karuna Amman was made a Minister and Pillayan a Chief Minister? They wanted to move towards reconciliation casting aside old grudges. Such dangerous people who were there when the war was under way are now not there. There are no Karuna Ammans now. If there were any persons against whom there were serious allegations, we will not be in a position to release them. We are releasing only those who need not be detained any longer. Some of them have been released on bail. They have not been given full freedom. Hence, if we take these factors into consideration, what is being envisaged is to remove the bitterness and old grudges. This is to put an end to enmity. Both sides will have to be committed in order to achieve this. That is the basis for the release of LTTE suspects. Cries are being raised only because a thirty or forty are being released. There was outcry for a probe. Even before we came to power, during the elections campaigns requests were made from us that investigations into these matters were necessary. We were told that cooperation for the formation of a new Government would be extended if only such investigations were carried out. Now, the Ekneligoda issue. Then the murder of Lasantha Wickremetunga, the murder of MP Nadarajah Raviraj. Many of these issues were subjects of public debate both locally and internationally. Our country will have to be devoid of such things. The only way is to ascertain the truth. If someone has not done any wrong, whoever is involved will be freed at the end. However, if someone had committed an offence, he has to face punishment and that happens all over. We have to think of these issues impartially. Communal passions cannot be roused or ‘patriotic’ feelings roused to resolve these issues. That may be the easy thing to do. Q: There are accusations against the Financial Crimes Investigations Division (FCID). Some in the opposition are saying that political vendetta is being carried out by them. Some officials in the FCID, it is alleged, are also settling personal scores. On the allegations against FCID, I propose to conduct an inquiry. I will discuss with the Inspector General of Police and other different stakeholders the issues and take appropriate action. The problem lies in the personality who becomes President. There have been six presidents since the late J.R. Jayewardene until I assumed office. Anyone can discern how these six have run the presidency. Such an office need not be on the personality of a person. Therefore I am saying that the position should be abolished and the role of Parliament strengthened. Q: You are saying that before a new Constitution, you will introduce a new electoral system. Q: After the abolition of the Executive Presidency, will you be contesting the elections? A: Even when I was to be named common candidate for the Presidency, I was unaware until 24 hours before. That decision was made then. Therefore, I cannot foretell what I would be doing by then. In my 49 years in politics, I do what I have to do today. Only when it comes to tomorrow, I will decide what has to be done. Q: Some budget proposals came in for severe criticism. The opposition has said that no previous budget had so many amendments in Sri Lanka’s history. What have you to say? A: Some believe we had to move those amendments because we had to kneel before trade unions. A good side of the budget is the fact that there are many good proposals. A section that was enjoying privileges were hurt. For example, the duty free vehicle permits of state sector officials. There were protests. The permits for MPs were cancelled. They protested. A third of national income is being spent on payment of pensions. This is a huge problem. When we said there would be no pensions (only contributory pensions) for those who will join next year there were protests. When we offered to pay cash instead of the fertilizer subsidy, the farmers objected. When we introduce a voucher system for school uniforms to curb corruption, there were protests. On another side, there were certain sections on whom there were pressures. Hence, there is a good side too. There was also the issue of a pay rise. It is not an easy thing to withdraw benefits that are already granted. Our Finance Minister tried to take them all at once. We have made a small mistake there. That is where we have gone wrong. That is what we had to rectify. There is nothing to hide. That is what happened. Q: You also had to intervene? | |
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