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28th December 1997

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War or peace we are there to serve : Air Force recruits are found to be loading chairs soon after the passing out parade at Diyatalawa recently.

Contents

Ranil: Govt. failed in bipartisan pact

By our Political Correspondent

Is the bipartisan approach to deal with the LTTE over, Opposition and UNP leader Ranil Wickremesinghe asked the Government through an interview with The Sunday Times.

Mr. Wickremesinghe said it was the Government that initiated the exchange of letters of understanding in March this year, but accused it of failing to implement the provisions therein.

He told The Sunday Times that his last meeting with President Chandrika Kumaratunga was in June at the residence of Foreign Minister Lakshman Kadirgamar, but that there had been a breakdown in the dialogue since.

He slammed the President for working out modalities for a joint, bipartisan approach first in March through the letters and then in June through talks but attacking him personally and the UNP in August saying she could not trust us.

Mr. Wickremesinghe said that he had been in touch with the Foreign Minister but he did not know the President's position, specially on whether the Government intended to talk with the LTTE.

He said that in June the President had indicated her willingness to talk with the LTTE but his understanding now is that the Government intends to present a devolution package whether the LTTE accepted it or not.

The UNP leader said his own party is inclined to make its own recommendations on devolution to the Parliamentary Select Committee but was uncertain if the ruling party would be in a mood to consider them. He said senior members of his party were in consultation with other party leaders on the subject.

The letters state, inter-alia, "the incumbent head of government will brief and seek the opinion of the leader of the United National Party on significant developments relating to the ethnic conflict, both in the strictest confidence; if in government, the leader of the United National Party will reciprocate."

The letters also say that the Opposition will not undermine any discussions or decisions between the government and any party, including the LTTE, aimed at resolving the ethnic conflict if they have been taken with the concurrence of the Opposition.

Immediately after the two leaders signed this agreement in March, Foreign Minister Kadirgamar said the understanding between the two leaders is an important and valuable step with much potential to help us resolve a vital national issue.

War or peace we are there to serve: Air Force recruits are found to be loading chairs soon after the passing out parade at Diyatalawa recently. Pic by Sanjeewa Niroshana


PC polls off: referendum to be held

Government to initiate devolution dialogue with UNP again

By Arshad M.Hadjirin

Plans to postpone provincial council elections and give priority to the non-binding referendum on the devolution package are being considered by the govt.

PA General Secretary D.M. Jayaratna said the cost factor in holding two elections within six months was one of the reasons why the PC polls was being put off in favour of the referendum possibly in March.

The Sunday Times learns that emergency regulations might be used to postpone the PC elections and all parties in the Alliance, except the NDUNLF have agreed to it.

Elections to the seven provincial councils, five of which are controlled by the UNP and two by the PA, are due before the middle of this year

"In the event the new constitution is approved at the referendum the PC election will not be held. If the new constitution is introduced with regional councils, there will be no need for PCs," Mr. Jayaratne pointed out.

In a related development, the govt. is again planning to hold the main opposition party, the UNP, in a bid to reach a bipartisan agreement on devolution.

Constitutional Affairs Minister G.L. Peiris is acting as mediator for discussions between President Kumaratunga and UNP leader Ranil Wickremesinghe, Mr. Jayaratne said.

A UNP spokesman said the party would submit its alternative proposals to the Govt.'s draft constitution before mid February.

However the PA members also have been told that the government is determined to go ahead with the referendum even if the UNP does not extend its support for the new constitution in Parliament.

Several PA top rungers including ministers have told district organisers to get ready for the referendum, with a house to house campaign.

Earlier Minister Jayaratna said the government was thinking of introducing new provisions to enable MPs to cross over. This came amidst reports that some opposition MPs in favour of devolution might be ready to cross over and support the govt. in getting a two thirds majority.

"Tamil parties will get a taste of democracy at next months northern polls and we believe they will support us at the referendum,: Mr. Jayaratne said.


High-level talks for polls security

By Chris Kamalendran

In the wake of complaints by Tamil parties that they are being threatened by the LTTE, Polls Chief Dayananda Dissanayake is meeting the heads of the police and the armed services tomorrow to discuss security measures for the January 29 elections in Jaffna and Kilinochchi districts.

EPRLF leader Suresh Premachandran said they had met the elctions commissioner to seek more security for the 1171 candidates contesting for the 17 councils. He said they would be meeting the commissioner again on Tuesday after he worked out the new measures with the security chiefs.

Despite the security concern, hectic campaigning has begun by four parties and two independent groups with posters coming up in main towns.

Meanwhile political killings are being reported from Batticaloa though they are not directly related to the polls.


Corruption probe on private sec.

An inquiry into allegedly corrupt activities of a private secretary to an influential Minister is being conducted by the Bribery and Corruption Commission.

The Sunday Times learns the inquiry revolves around allegations that he is drawing salaries and allowances totalling Rs 50,000 from two ministries, while claiming unauthorised perks and privileges, including vehicles, foreign trips and telephone facilities.

The commission is reported to be investigating this Private Secretary under amendments to the Bribery Act passed by Parliament in 1994, which expanded the existing law to find public officers guilty of corruption.

Meanwhile, Director General of the Bribery and Corruption Commission Nelum Gamage will abide by the Presidential directive transferring her to the Justice Ministry, in spite of queries being raised as to whether the transferral was proper due to Cabinet approval not being given.

"I have been told that the directive transferring me has been made according to law, and I will act in obedience to it," she said

This followed a debate among legal analysts as to whether the Presidential directive asking Commissioners T.A.D.S. Wijesundera and Rudra Rajasingham to resign and transferring the DG to the Justice Ministry was proper.

The Presidential directive had been made following a four-month crisis in the Commission due to conflict between the D G and the Commissioners.

Some legal sources claimed that both actions were illegal, and that the President had no power to transfer the DG, nor to sack the Commissioners. The Commissioners have continued to refuse to resign their posts on the basis that it is only Parliament which can remove them.

Their refusal comes in the backdrop of a no-confidence motion being brought against the Government by the UNP based on the controversy surrounding the Commission among other issues of bribery and corruption.


Deal after phosphate deal

By Imran Vittachi

The US Company that just secured a $ 425mn joint venture contract with the government has officially handed its slice of equity to another multinational, news reports confirmed last week.

Louisiana-based Freeport-McMoran Inc. (FTX) and Illiniois-based IMC Global (IGL), a giant among phosphate fertiliser producers, on Monday announced a corporate merger, wire agencies reported from the United States.

According to a spokesman for FTX, IGL would now command a majority of 65 percent equity in the Eppawala/Trincomalee phosphate mining and fertiliser production deal, through IMC Agrico, a joint venture between IGL and Freeport-McMoran Resource Partners Ltd. (FRP) an affiliate of FTX.

"Assuming this merger is approved by shareholders of both companies at a special meeting of stockholders on December 22, 1997, IGL will have the sole U.S interest in the proposed Sri Lanka Phosphate project," Thomas J. Egan, Senior Vice President of Freeport-McMoran Copper and Gold, told The Sunday Times.

But reports conflicted over whether this week's announcement signalled a straightforward merger of two companies, or whether IGL had, in fact, bought FTX in a friendly takeover.

One report said that the merger would retain IGL's name and be headquarterd at its worldwide base in Northbrook, Illinois, while another said IGL was actually buying FTX.

About 40 percent of IGL's sales, whose combined 1996 revenues and assets topped $6b, are said to take place in highly-populated markets outside the US, China being its biggest customer.

See also Special Assignment on Page 7 for related story.


Midnight brawl leaves Matale town deserted

By Siri Abayasiri

A police curfew was imposed in the Matale city from noon yesterday after two minority groups clashed leaving two people dead, eight injured and more than 20 shops damaged.

The clash began around midnight when the two groups were returning after a late night movie in a city theatre and went on till about 3 a.m. during which some elements attacked jewellery shops, eating houses and other business premises on Chetty Street, Gongawela, and Godapola Road.

Police moved in and restored order by 3 a.m. but the Matale city was deserted yesterday and the situation tense, residents said. One victim was identified as M. M. Faleel, 45, and his funeral yesterday provoked further clashes.

Police reinforcments were rushed in from other areas of the Kandy division after a gang yesterday evening attacked a village where members of the other community lived. Four people were injured in the second attack. By nightfall, the situation in Matale town was under control but tension was still running high.


Rape: Army spy in net

An army intelligence officer has been arrested for allegedly raping a 17-year-old girl in Vavuniya, police said. The soldier had allegedly stopped the girl and her sister at Market road Vavuniya and taken them to a guest house on the pretext of questioning them.

One of the girls had escaped and reported the case to the PLOTE office. A group of PLOTE cadres along with the STF had rushed to the place and arrested the suspect. He is to be produced in court tomorrow.


Ad firm hit by swindle

A leading advertising firm has been forced to close down after an accountant, allegedly swindled it of over Rs. 15 million.

She has been arrested by the CID and remanded until tomorrow. CID sources said following a complaint made by a senior officer of the company, the accountant was arrested and some documents were siezed from her home. It is alleged the accountant also allegedly has altered cheques.

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