Financial Times -Control Regime returns? - Chamber leaders in silent mode!

The new draft bill to establish an authority called Reconstruction and Development Authority (RADA) with power to plan, implement, monitor and coordinate reconstruction and development of designated areas affected by manmade or natural disasters and accelerate recovery and economic development has not been seen by the blinkered private sector leaders as a way towards a control regime. This is despite section 16(n), dealing with the powers of the authority stating “to monitor and control the activities of any foreign or local non governmental organization or local private sector organization engaged in reconstruction or development activity within any designated area by issuing licences for carrying out the activities intended to be carried out by them, and such other regulatory measures as may be prescribed in that behalf”

The best advice tendered and now acted upon by Chamber Leaders are “do not dare to upset the leadership by challenging them, even when the fundamentals and values the Chambers stand for are violated”, “it is time to strengthen the new leadership and not challenge them”, “select carefully the issues raised ensuring the present isolation of Chambers is reversed”. The Chambers are now in a “silent mode” and thus they “see no evil, speak not of evil nor hear of issues of evil”.

The new draft bill to establish an authority called Reconstruction and Development Authority (RADA) with power to plan, implement, monitor and coordinate reconstruction and development of designated areas affected by manmade or natural disasters and accelerate recovery and economic development has not been seen by the blinkered private sector leaders as a way towards a control regime. This is despite section 16(n), dealing with the powers of the authority stating “to monitor and control the activities of any foreign or local non governmental organisation or local private sector organisation engaged in reconstruction or development activity within any designated area by issuing licences for carrying out the activities intended to be carried out by them, and such other regulatory measures as may be prescribed.”

The new Authority will be empowered in all areas designated by the President for rapid economic growth, (including extreme poverty stricken areas), conflict affected areas and tsunami and any other natural disaster areas.

The areas can be determined on a Divisional Secretary/Grama Niladhari division level. The Authority has power to take over land with persons aggrieved having no remedy, redress or relief in any court other than by way of compensation or damages nor even the right to a stay or restraining order against the acquisition of land or the implementation of any project or work of the Authority.

The Authority is further empowered to carry out other directional responsibilities in the designated areas. The concentrated power cuts across the devolution related delegated power structures, the authority of Government Agents and can even cover areas now recognized by the CFA to be outside the government control.

Will these powers entail the private sector having to seek new licences to carry out business activities in the designated areas, although already licensed or freely permitted under free market operations? Will for instance a Bank licensed by the Central Bank be required to seek a new licence from RADA and be subject to new regulations and monitoring, if they engage in banking activities classified as reconstruction and development in designated areas?

A private sector leader well endowed in the tender game and in getting approvals for projects by linking up with key persons on a profit sharing basis was overheard saying,

“Let no private sector man ever more complain. They know the previous rules of how much to reserve for sundry expenses, profit sharing and business entertainment in getting tenders and projects approved.

Even then the usual uncertainty and delays cannot be avoided, because too many players and interests, regulations and transparency requirements come in the way. The new rules are clear, add a further 15 percent to the previous level of project and tender costs and if at that level it makes commercial justification, treat the approval as automatic. Now there is assurance of no delays and objections, subject of course to the extra surcharge value addition.”

The business leaders accepting this new value system will not object nor allow objections from Chambers to a perfectly satisfactory operating environment.

A clown with energy wants the people in the name of energy savings to sleep at designated times and be endowed with the benefits of “early to bed and late to rise”. These are no laughing matters, but a way towards creating a control regime. The Chamber leaders do not see the violation of fundamental rights nor the control veil within this request.

A business leader recently highlighted the consistency of policy and action of the new regime. A loud roaring Ministering angle and the senior most public servant had echoed the same threats against the business leader when he failed to comply with an action request that was unreasonable and illegal.

Both had threatened “to have the warehouses used for distribution burnt down by goons, if the businesses fail to comply”.

These are surely signs of control mania creeping back into business structures. Chamber Leaders are yet in the silent mode and practicing monkey tricks covering their eyes, mouth and ears.