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SJB and JVP must come clean on private sector’s role in political corruption 

27 Jan 2022

BY Amrit Muttukumaru  This article is written in the context of the Samagi Jana Balawegaya (SJB) and the Janatha Vimukthi Peramuna (JVP) being considered as credible alternatives to the failed politics and unprincipled conduct of the national political Parties – the United National Party (UNP), the Sri Lanka Freedom Party (SLFP) and the incumbent Rajapaksa family dominated Sri Lanka Podujana Peramuna (SLPP) Government. Surprisingly, even some “elite” circles are rattled by what is now going on, considering the JVP as an alternative. The SJB has some traction despite being widely considered a clone of the electorally marginalised UNP. By the same token, the SJB’s association with the UNP is a huge advantage to the JVP. This fortuitous circumstance for the Opposition is mainly the result of the incumbent SLPP Government under President Gotabaya Rajapaksa, Prime Minister Mahinda Rajapaksa and heir apparent Minister Namal Rajapaksa bringing the country and its people to their knees as never before due to a series of blunders in governance, mainly economic, affecting the everyday lives of the people. The ground reality of whether the SJB and the JVP could on their own form a Government even with the support of smaller parties will not engage the attention of this article. Similarly, the realpolitik enabling collaboration between the SJB and the JVP in forming a Government let alone its stability will also not engage the attention of this article. What is apparent is that the country is in for a long period of instability and some degree of turmoil. Should not the SJB and the JVP before proceeding any further with their fairy tales, reveal why they are silent on campaign finance which is the mother of political corruption? Why are the SJB and the JVP also silent on the country retaining a mere 15% stake in the West Container Terminal in the Colombo Port (India’s Adani Group 51% and John Keells Holdings [JKH] 34%) while raising a rumpus and even filing Court cases on the Yugadanavi power project (the US-based New Fortress Energy Inc.) where the country retains a 60% stake? The monopoly allegedly being given to “New Fortress” for the supply of liquefied natural gas (LNG) for five years is a separate matter which must be opposed.  Corruption: The root cause  It is amazing that commentators placing the root cause for the country’s ills on widespread corruption under successive administrations are not linking politicians to enabling the big business sector. If two hands are needed to clap, how is it that political corruption can occur on its own? There seems to be a mental block in not recognising the role of the corporate sector which also includes the businessmen controlled mainstream media which have also reaped the benefits of the nexus with the political establishment. Is it not a fact that certain print and television media empires would never have reached their current status if not for State patronage?  Is it also not a fact that most of the “captains” of industry and commerce in this country are largely the creation of State patronage? Examples include the privatisation of certain lucrative Government assets under questionable circumstances at giveaway prices. Are not some of them a major source of profitability for these corporates? These include virtual “cash cows” – such as the South Asia Gateway Terminal (SAGT).     In the midst of the present power crisis, why are political parties not uttering a word on the contribution of the private sector to the crisis on their way to making a financial “killing” over the years by holding the country to ransom on the sale of power at unconscionable prices to the national grid?  Added to this heady mix of enablers of political corruption are sections of the country’s professional community of which the most glaring are chartered accountants and auditors who are the first and last line of defence against large scale corruption. For example, could the scandalous privatisation of the Sri Lanka Insurance Corporation (SLIC) in favour of corporate interests have taken place without the role of leading audit firms? Were not some key auditors enabling the SLIC scandal after retirement invited by some leading business houses to their director boards?  The SJB and the JVP waxing eloquent that widespread corruption is the major driver of most of the ills of this country are completely ignoring sections of the business community and professionals who are the enablers of political corruption. Lest we forget, the mismanagement of the SriLankan Airlines continued under the watch of the board of directors appointed by the Yahapalana (good governance) Government drawn from the “cream” of the corporate sector. Conflict of interest “Conflict of interest” which is a major cause of corruption is not even on the radar of this country!  Current examples include  the senior partner of an audit firm being allowed to be the chairman of a major State bank and an individual whose family is a major player in tourism being allowed to be the chairman of the country’s tourism regulatory authority.  Other glaring examples include former Chief Justice K. Sripavan being appointed as a board director of a bank by the Yahapalana Government in April 2017 no sooner he ceased being the CJ in March 2017. Subsequently he was appointed the chairman. This is despite SJB leaders holding key Ministerial office and the JVP politically supporting the Yahapalana Government. Prior to this, former Central Bank of Sri Lanka (CBSL) Deputy Governor D. Dheerasinghe was appointed under the Mahinda Rajapaksa Presidency as a board director of the same bank in December 2011 soon after his retirement in December 2011. The CBSL being the supervisor of the banks was of no concern to anybody. Subsequently, he too was appointed chairman. Where else in the world would such occurrences be allowed?  SJB/JVP Hypocrisy Is it not laughable that those projected as the economic experts of the SJB said to be commanding a collective expertise of over 100 years held key Ministerial office in the Yahapalana Government, are noted for encouraging money laundering, the egregious bond scam and proposing dubious foreign direct investment projects such as the “$ 3.85 billion oil refinery in Hambantota” and the 2017 Volkswagen vehicle assembly plant in Kuliyapitiya which turned out to be a hoax? There was even a “ground-breaking ceremony”  for the Volkswagen plant!  It is noteworthy that the JVP now projecting itself as a viable alternative to govern the country continued to politically support the Yahapalana Government despite all this and even the April 2019 Easter Sunday carnage. The incumbent SLPP Government pussyfooting on the accountability for these outrages is proof that “the more things change, the more they stay the same”! Money laundering The hypocrisy of the SJB and to some extent the JVP is stark in the petitions they filed in the Supreme Court through SJB Parliamentarian Eran Wickramaratne and the JVP Political Bureau Member Sunil Handunnetti alleging that the SLPP proposed Finance Bill encourages money laundering. Did not the Yahapalana Government in which SJB leaders figured prominently and the JVP supported, in effect facilitated money laundering when it repealed the Exchange Control Act, No. 24 of 1953 and brought into law the new Foreign Exchange Act, No. 12 of 2017?  The new law certified on 28 July 2017 became effective from 20 November 2017. SJB’s Eran Wickramaratne who is now very concerned about money laundering was the State Minister of Finance from May 2017! A precursor to the dangerous Yahapalana-inspired Foreign Exchange Act was the “invitation” issued by the then Finance Minister Ravi Karunanayake to “Sri Lankans and Indians who had to take back their deposits from banks in Switzerland to place their funds in Sri Lanka”.  He had further assured that “no questions would be asked”!  Bond scam Apologists for the Yahapalana Government denying the enormity of the bond scam which apart from the sum involved is noted for its terrible “conflict of interest”. The scam was unleashed on the country under the watch of not only the then Prime Minister and incumbent UNP Leader Ranil Wickremesinghe who was Minister of Policy Planning and Economics Affairs but also a host of SJB stalwarts including economist Dr. Harsha de Silva who was the Deputy Minister of Policy Planning and Economics Affairs under Wickremesinghe.  Readers can gauge Dr. de Silva’s obvious embarrassment when responding to a question from a journalist on his controversial “footnotes”. Should not Dr. de Silva, possibly the Finance Minister in the event of a future SJB-dominated Government, clarify matters in this regard? To date, there has been no accountability for the scam.  I ask those who are downplaying the bond scam or even denying it (i) to reveal the rationale for the “footnotes” if the scam was trivial or did not even take place? (ii) did not the then CBSL Governor Dr. Indrajit Coomaraswamy reportedly seek the approval of the Attorney General to place in the public domain its forensic audit “as it could influence the upcoming Presidential election” and (iii) was not the Parliament dissolved on the eve of the 2015 General Election to prevent the D.E.W. Gunasekera-led Committee on Public Enterprises (COPE) report on the bond scam being presented to the Parliament? SJB/JVP and minorities Although a major issue keeping this country down is the absence of social peace largely due to the minorities being debilitated since Independence, the 2015 Yahapalana Government supported by the JVP even with the Tamil National Alliance (TNA) on board merely paid lip service to minority issues.  Take for example the creation of the “Office on Missing Persons (OMP)” touted as a major achievement of the Yahapalana on minority affairs – particularly for Tamils. This is what a certain website has to say about the OMP: “It was meant to reduce tensions and to buy time to allow a slow process of undermining the demand for compliance with the State obligations to investigate and prosecute those responsible for these violations.”  It is amusing to witness leaders of Opposition parties visiting the North and the East making vague promises, giving token gifts and uttering a smattering of Tamil words. Token gifts include shoes to some school children!  Duplicity The duplicity of both the SJB and the JVP is amply demonstrated in the following: 1) Making a hue and cry and even filing Court cases on the 40% equity given to the US-based New Fortress Energy Inc. in the Yugadanavi Power Station while “going easy” on the 51% stake in the West Container Terminal in the Colombo Port being given to India’s Adani Group. One wonders whether this has anything to do with the leading conglomerate JKH being given a 34% stake to partner Adani? However, the monopoly allegedly given to “New Fortress” for the supply of LNG for five years is a separate issue which has to be opposed. 2) Making a hue and cry about the postponement by the SLPP of the Local Government and Provincial Councils Elections. Did not the Yahapalana Government in which most SJB leaders held Ministerial office and the JVP supported, do precisely the same? 3) Making a hue and cry about the SLPP proroguing the Parliament when the Parliament was dissolved under the Yahapalana Government on the eve of the 2015 General Election to prevent the D.E.W. Gunasekera led COPE report on the bond scam being presented to the Parliament. 4) There is no end to the duplicity of the SJB. On the need for accountability for the January 2009 brutal killing of prominent journalist Lasantha Wickrematunge, the news item on Eran Wickramaratne questioning the Yahapalana Government on justice for Lasantha says it all. Let us be clear, what was the JVP doing while supporting the Yahapalana Government? 5) There is no better example of broken Yahapalana promises than the outrage of Dr. Harsha de Silva and Eran Wickramaratne at a press conference in the run up to the 2015 Presidential Election on casino, drug and ethanol mafias. They are projected as the economic “brains trust” of the SJB. Easter Sunday carnage  Let alone the Colombo Archbishop, Malcolm Cardinal Ranjith, not even the SJB and the JVP are seeking accountability from Ruwan Wijewardene for his share of responsibility for the Easter Sunday carnage when he was the State Minister of Defense during the entire period of the Yahapalana Government. Even if he was kept away from some meetings of the National Security Council (NSC), are we expected to believe that he did not have knowledge of the attack even to the extent of MP Harin Fernando’s hospitalised father? Apart from this, is it not reasonable to surmise that investigative journalists would have tipped him off? Why are only the then Secretary of the Defense Ministry, Hemasiri Fernando and some others in the Defense establishment being held accountable while the State Minister of Defense is mollycoddled? Conclusion  1) Not a word has been uttered by the SJB and the JVP on the subject of campaign finance, which is the mother of political corruption.  2) Any visitor to Sri Lanka will be amazed that despite the country being on the verge of bankruptcy, (i) the performance of the stock market is at a “record high” (ii) luxury vehicles hard to find even in some affluent countries being a common feature (iii) the affluent lifestyle of the “elites” whose companies have received Covid-19-related fiscal and monetary stimulus and (iv) international awards received by Sri Lankan banks with even unaddressed allegations of wrongdoing. What has the SJB and the JVP to say to all this?  3) What is the concrete plan the SJB and JVP have for ensuring genuine social peace in relation to the concerns of the minorities? 4) Should not the SJB and the JVP (i) reveal their plan for a genuinely independent “Constitutional Council (CC)” well beyond what prevailed under the 17th Amendment to the Constitution? (ii) reveal the public institutions falling under the CC? and (iii) reveal whether the regulation of the media will fall under the ambit of the CC – if not why? 5) Will the SJB and the JVP have constitutional provisions with ample time given for the judicial review of legislation? 6) What concrete action will the SJB and the JVP take on the revelations in the “Panama” and “Pandora” papers? The bottom line: Ground reality and realpolitik suggests that the country is in for a long period of instability with varying degrees of turmoil even after a General Election. Postscript SJB Leader Sajith Premadasa has not only electorally cooked his own goose but also that of his party by reportedly postulating that “an elected dictatorship with democratic structures is needed”.   This is all the more reason why the regulation of the media should fall under the ambit of a genuinely independent CC. (The writer is a public interest activist) …………………………………….. The views and opinions expressed in this article are those of the author, and do not necessarily reflect those of this publication.


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