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Systematic corruption remains unaddressed

Systematic corruption remains unaddressed

09 May 2023 | BY Dr. Jehan Perera

The demand of the protest movement that swept away former President Gotabaya Rajapaksa and his Government from the seats of power in the middle of last year (2022) was for a system change. This was a political and moral position that was concretised in the slogans that demanded that Rajapaksa and the 225 Parliamentarians go home. “Go home Gota” was a slogan that spanned the length and breadth of the country even if many people did not know what was being meant by a “system change.” It was an implied call for fresh Elections that would give rise to a new Government with new Members with a people’s mandate. Other top slogans of that time was the bid to get corruption outlawed in view of the damage that it had done.

 

Unfortunately, none of the constructive demands of the protest movement for elections and for accountability have come to pass. There have neither been Local Government Elections to give any idea of the present mandate of the people, nor has there been the slightest practice of accountability or restraint in the practice of corruption. The issue of corruption has come into the open again on the issue of the nitric acid carrying container Ship, the MV X-Press Pearl, which caught fire in the Sri Lankan seas causing immense destruction to the environment and the livelihood of the fishing community.

 

As reported in the media, Justice Minister, President’s Counsel Dr. Wijeyadasa Rajapakshe has already made a disturbing revelation regarding the transfer of United States Dollars ($) 250 million to the foreign account of a Sri Lankan as a bribe to obstruct the legal process related to the MV X-Press Pearl disaster, and has directed the Police to initiate investigations into it. The Minister has named the Sri Lankan involved and will await further details from the probe. The indications are that the $ 7 billion compensation would be only a mirage. No one would be charged for negligence as in many cases.

  

Accountability absent 

 The continuing tragedy of the present time, which was articulated by the now suppressed protest movement, is that there is no accountability for those in positions of power. The imposing of discipline on those lower in the rungs is to be seen in the manner in which the Government is dealing with the economic crisis. The Government’s agreement with the International Monetary Fund (IMF) has been at the cost of high taxes and job cuts imposed on the masses. The costs of this economic restructuring are falling heavily, if not disproportionately, on those who are middle class and below. Fixed income earners are particularly affected as they bear a double burden in being taxed at higher levels at a time when the cost of living has soared. It is these tax monies that will go to repay the enormous debts incurred by white elephant projects such as the National Airline (SriLankan Airlines) and Mattala, the Airport in the area of a wildlife sanctuary.

 

The Government’s clarion call for the restructuring and sale of State owned enterprises is being projected as evidence of the statesmanship and vision of the political leaders. The public service is vastly overstaffed and Government managed businesses are making gigantic losses. But, it is unfair and immoral to place the blame on the workers who were employed there in large numbers to satisfy the patronage related needs of political leaders. The political debate has been turned on its head. It is not about holding those political leaders accountable for the economic crimes of mismanagement that they have perpetrated, but about the workers that they hired, who voted for them in gratitude, that there are too many of them now and that they are overpaid in relation to the work that they do.

 

The other missing dimension in the current debate about restructuring the economy and getting it out of the rut is the absence of any effort to ensure accountability for past economic mismanagement and corruption, indeed for the looting that took place in the economy. The Government has not held those political leaders accountable. Instead, it has shown solicitude for the sufferings and pain of mind suffered when their houses were attacked and burned during the height of the protests. Such solicitude can be appreciated, but it needs to be consistent across the board. The different treatment given to politicians as compared to ordinary citizens would rankle within those large numbers of citizens who lost their properties too, during the war, terrorism and riots of the past, but only received meagre compensation if at all from successive Governments.

 

Unrealisable dream 

 The Government’s unwillingness, perhaps inability, to deal with the issues of corruption goes back to its roots. The Government, and the President (Minister of Finance, Economic Stabilisation and National Policies Ranil Wickremesinghe), continue to be beholden to the majority in the Parliament for their continuation. The tragedy is that this Governmental approach will doom Sri Lanka to the shallows, where it has been languishing for at least four decades. The Government needs to form a coalition with the Opposition MPs in the Parliament, in order to ensure accountability and reform, if it is genuine about it. Some Government Members have started to talk about forming a National Government. If this is to be done, it should be based on clear objectives, including pursuing corruption related cases, and should be an effort at genuine power sharing. The desire to stay on in power must not take precedence over dealing with corruption and holding those guilty of crimes accountable. 

 

The economic mismanagement, looting and Ponzi schemes whereby successive Governments borrow to repay old loans need to change if Sri Lanka is to take off into the rapid economic growth that its’ people yearn for. It is not the people who should be blamed but the leaders who are dishonest and corrupt, and who continue to be so. A leading think tank, Verite Research has highlighted that the Government has failed to fulfill its commitments to accountability and transparency. 'The IMF Tracker', a new online tool launched by Verité Research, has shown that Sri Lanka had met 25% of the trackable programme related commitments of the IMF programme as at the end of March, 2023, but that it had failed on one.  

 

Verite Research said: “The failed commitment is the establishment of an online based transparency platform. This platform is expected to publish, on a semi-annual basis, information related to (i) all significant public procurement contracts, (ii) a list of all firms receiving tax exemptions through the Board of Investment, and (iii) a list of individuals and firms receiving tax exemptions on luxury vehicle imports. It was due by 1 March, 2023, but had not been met even by the end of that month.” It noted that timely progress on the IMF programme has two benefits. First, there are the material benefits that can result from many of the actions. Second, it can improve confidence in Sri Lanka’s governance, which then helps negotiations to restructure the burden of past debt and to speed up the path to future economic recovery.  The missing ingredients so far are honesty, transparency and the desire to take everyone on this journey.


(The writer is the Executive Director of the National Peace Council.)


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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