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22nd March 1998

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A SDA shake up puts 42 professionals....


In the firing line

Last month a presidential communique to the newly appointed chairman SDA, Mr. Somapala Gunadheera, authorised him to fire 42 of SDA's 53 top professionals from its cadre, leaving the organisation nearly naked.

By Ruvini Jayasinghe

It's a sad story ...... For those in the firing line it'sa dream turned into a nightmare.

The most ambitious development project ever proposed for the South, headed by top architect turned technocrat - Mr. Navin Guneratne, got off to a reasonable start, even though media hype on the project earned it its dubious nickname, The Song and Dance Authority.

Barely a year after its launch the Southern Development Authority's (SDA) chairman resigned. He would only steer Ruhunupura his pet project, he informed President Kumaratunge.

Appointed by the president herself, Mr. Guneratne's exit was the first indication to the public that all was not well with the high powered southern development engine, running at high costs.

Although obviously unsettled by the resignation of their captain, with whom the SDA team had reportedly enjoyed an excellent working relationship, nothing prepared them for the bombshell of being unceremoniously kicked out a few months later.

Last month a presidential communique to the newly appointed chairman SDA, Mr. Somapala Gunadheera, authorised him to fire 42 of SDA's 53 top professionals from its cadre, leaving the organisation nearly naked.

The SDA, ripped off its flesh and blood is now a mere skeleton awaiting a new outfit, which is to be appointed soon.

In her letter to the SDA chairman, Mr. Somapala Gunadheera, the president cites mismanagement, low productivity and high recurrent expenditure as the main reasons for precipitating an SDA shake up.

Among allegations leveled at the SDA was that it was dragging its feet on the projects it had undertaken.

Mr. Guneratne, now consultant to the Finance Ministry has however gone on record saying that," We have covered the development aspect of SDA, but we may have neglected the political dimension."

A breakdown of ongoing SDA projects is published on this page.

A new structure was deemed necessary to re-ignite the choking southern engine into top gear. The drastic measures including head chopping and reduction of salaries by half is said to have been in a report presented to the president by the present chairman.

In an interview with the Sunday Times on the restructuring, Mr. Gunadheera said, "We have not taken a single person from outside. Wherever possible professional vacancies will be filled with those who worked for SDA under the old structure."

Restructuring was necessary to cut down costs, overheads and make the authority more productive, he said.

"We are going to concentrate on the ground situation in the Southern Province itself. We will identify projects and activities for immediate attention in order to increase productivity and employment," he said.

The restructuring is designed to direct our human resources to meet these objectives, he added.

"Some areas identified as crying out for development are: inland fisheries, tea small holders, Nilvalaganga area, salt bed based industries, sugar cane, agro based industry, infrastructure based industry."

"We will direct available human resources to urgent relevant areas," he said.

In an earlier interview with the Business Section of this paper, Mr. Gunadheera told this writer that the mass scale scaling down of staff was a "cost cutting exercise." There was nothing personal in their dismissals, he assured.

On the face of it, this seems so. Top executives whose salaries were Rs. 60,000 a month have been cut down by half to Rs. 30,000 a month.

But inside sources say that a seemingly favoured few have not got pay cuts at all. In fact some have even got promoted, they added.

Some of the employees whose salaries have been cut by half are on contact. These contracts could be unofficial and that is how these employees can be reappointed at lower salaries, inside sources said.

But just how much the SDA is going to save by this cost cutting exercise has not been pre estimated Mr. Gunadheera said.

He added that it is not merely a question of cutting costs but also an exercise to ensure cost effectiveness and higher productivity.

After restructuring we will concentrate on the grass roots, while Mr. Guneratne will handle the mega projects, he said.

Although the new structure has not yet apparently been finalised, insiders say that each of the 30 electorates in the south, Moneragala, Embilipitiya and Kolonna will have three clerks, four typists, two project officers and perhaps a peon, bringing the cadre to 300 people on that basis. How will the sacking of 42 employees in a total cadre of less than 200(however senior and well paid) to be replaced by a cadre of 300, be a cost cutting exercise, employees query.

In her letter to SDA Chairman, President Kumaratunge has also stipulated the number of general administrative cadre. However the air of secrecy about the strength of the new cadre and the possible elimination of certain posts like environmental and archeological sectors managers hangs thick.

Answering such questions is not easy for the incumbent chairman. At the outset he told this writer that he may not be able to answer all questions put to him for obvious reasons.

The 42 professionals all graduates who have been fired as of March 31, have been issued letters asking them to reapply for consideration to SDA posts under the new structure.

Why, they ask did the authorities have to fire us before we were considered for reappointment under the new structure? Was it not possible and far more considerate to first evaluate/assess our work and then dismiss us if necessary under the new structure?

One of the 42 "victims" who preferred to remain anonymous for obvious reasons told the Sunday Times, "A notice signed by the Chairman was handed out requesting our CVs to be handed over to the Deputy Director Administration and Finance to be evaluated for the vacancies in the new cadre, where we will be given priority if suitable."

Is the Deputy Director Administration and Finance, who has an accounts/financial background alone capable of evaluating professionals in such diverse fields like industry, geology, chemistry, archaeology, environment, fisheries, minerals, agriculture etc?"

So what's all this fuss about? If you get sacked you simply get another job, some are wont to say.

The personal testimony of a "victim" is published on this page to demonstrate the agony of a death sentence dished out seemingly callously, without fair trial. The loss of job, loss of face, mental trauma and the final psychological damage done to a young professional sacked from a top job and being labeled for life, is shattering. "I have all these studies, appraisals and research I have done. A cabinet full of files, which are hard found, valuable information. I don't even know whom to hand over the files to, let alone whether my work will be carried on".

This was a cry from the heart of a young professional who had given up weekends in Colombo away from family, relaxation and entertainment to trudge the dry zone in search of a dream.

Another person was on maternity leave when her letter of dismissal came. Others are the sole breadwinners of their families.

Yet others left cushy jobs in the private sector and came back to their roots because they believed and wanted to be a part of the southern development dream.

The termination of the contracts is legal but what about the moral and ethical aspects of their dismissal?


Track record

Southern Area of Development's ongoing projects

From inception to date

*Within its first year the SDA has commissioned 91 projects with a total investment of Rs. 60 million.

*295 more projects totaling Rs. 850 million are in the pipeline.

*Projects are wide ranging from agriculture, farming to mining and industry.

*Altogether 700 micro projects, 300 in Galle District and 400 in Matara District are identified. Of these 58 have already got underway in Galle District.

*So far, Rs. 2.2. Billion worth of foreign investment is under implementation.

*Large scale infrastructure projects for Rhunupura exceeding Rs. 100 billion like the Hambantota port, airport, electric rail etc are in the final stage of negotiations

*The most important component of development, Rhunupura was conceived, conceptualized, pre-feasibility completed, EOIs called, possible sources of funding attracted, evaluated by a cabinet appointed negotiating committee and approval obtained for the Rs. 100 billion investment, all within 12 months.

*A parliamentary consultative committee including opposition members like ex finance minister Mr. Ronnie de Mel studied the project critically and applauded it.

*446 graduates of the region have been trained as entreprenuers.115 of them have obtained funding for their projects.

*An SDA venture capital company has invested over Rs.40 million in regional projects.

*215 rural infrastructure development projects costing over Rs. 21 million are completed.


Testimony of a victim

I applied to the Southern Development Authority of Sri Lanka (SDA) after seeing the paper advertisement.

I was called for an interview toward the end of 1996, was selected and duly reported for work.

I was appointed and paid a salary for another category, until my particular cadre was approved.

I joined SDA knowing that I had a renewable contract with SDA for the duration of the project.

I believed that this was a good opportunity at the start of my career and if I prove myself as competent in my chosen field, I would have no problem in getting another job once the SDA development programs are implemented and our services would no longer be required.

After the SDA cadre was approved by the president and cabinet in January 1997, I was appointed the sector manager with a two-year renewable contract which was seen as an opportunity for permanent employment.

During the course of my work for SDA I have obtained information, advice etc from various Institutions and individuals that I knew prior to joining SDA, on the strength of my personal contacts.

I have used whatever credibility I had enjoyed in my chosen field for the SDA, which has now been affected by my termination.


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