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MCC puts Yahapalana actions under spotlight

28 Jun 2020

The past week was a case of a political potpourri with preparations for the 2020 general election continuing while several other political issues also took centre stage in the latter half of the week. One of the main focal points of the week was the handing over of the final report of the Committee appointed to review the US Millennium Challenge Corporation (MCC) Compact agreement with Sri Lanka to President Gotabaya Rajapaksa on Thursday (25) and Prime Minister Mahinda Rajapaksa on Wednesday (24). The controversial MCC Compact for Sri Lanka is an agreement for a grant of $ 480 million to implement land reforms and develop the transport system. However, the Committee, while handing over the final report, dropped a bombshell that the previous Government had signed the agreement in two phases in 2017 and 2018. Chair of the Committee Prof. Lalithasiri Gunaruwan has informed President Gotabaya Rajapaksa, while handing over the report, that after signing the agreement in two phases, grants amounting to $ 7.4 million and $ 2.6 million had been given to Sri Lanka. Prof. Gunaruwan noted that the accounts of the said funds are unaccounted for and that the Commissioner of Lands had noted the agreement cannot be implemented in a legal manner. “After the agreement is passed in Parliament as an act, moving a counter-proposal is in violation of the agreement,” said Prof. Gunaruwan. The Gunaruwan Committee has also pointed out that the proposed agreement even violated the mandate of Parliament since any condition in the agreement can be changed through letters exchanged among two representatives. According to the Committee, the agreement had created an environment where the Attorney General (AG) would be unable to represent the Government of Sri Lanka in a court of law. The President was also given a briefing on other countries that have implemented the MCC agreement. The Committee drew attention to the fact that the situation in those countries had turned worse after signing the agreement. The Committee to review the MCC agreement was appointed following a Cabinet decision on 18 December 2019 and was appointed with effect from 1 January 2020. Prof. Gunaruwan of the University of Colombo was appointed as the Chairman of the Committee while former Secretary to the Ministry of Transport Dr. D.S. Jayaweera, President’s Counsel Justice Nihal Jayawardena, and architect Nalaka Jayaweera are the other members. Meanwhile, the US Embassy in Colombo tweeted last week that no MCC grant money had been transferred and that even funds for preparatory activities had been cancelled. “No MCC grant monies were ever transferred to or spent by the Government under the current $ 480 million grant. Funds for preparatory activities have been cancelled or indefinitely postponed, pending the Government’s decision whether to proceed with the grant,” the tweet read. However, despite a recent statement by the Government to the effect that it would not sign the MCC Compact, the US Government believes it was still under review by their Sri Lankan counterpart. US Embassy Spokeswoman Nancy VanHorn has said that they “understood” it was under review. “We understand the Government of Sri Lanka is reviewing the $ 480 million grant. We refer you to the Government for comment on its position,” she had said. However, Co-Cabinet Spokesperson Minister Dr. Ramesh Pathirana said the Government had already decided not to sign the US MCC Compact agreement. He had said the decision was based on the recommendations of the Committee appointed by the Cabinet of Ministers to review the MCC grant. Earlier in the month, US Ambassador to Sri Lanka Alaina Teplitz, speaking at a special media roundtable conference, said the US Government understood there is a transition of government and were waiting “for some of that transition to compete with parliamentary elections”. Growing suspicion Meanwhile, attention is now being paid by all quarters to the claim by Prof. Gunaruwan that the MCC had been signed in two parts for two separate amounts. It is at this juncture that one would recall a project that was launched by the Government early this year. On 19 February, there was an introduction of an electronic system for the registration of lands that took place in Colombo. The event took place under the patronage of State Minister of Public Administration and Home Affairs Mahinda Samarasinghe. The project was implemented by the Land Registry Office and the Information and Communication Technology Agency of Sri Lanka and according to the project, the ownership of any land across the country can be confirmed through this system. However, there was not much clarity to the origins of the project and funding since the full presentation was not shown to the media with officials saying a CD with the presentation would be handed over to them. In March this year, Janatha Vimukthi Peramuna (JVP) Leader Anura Kumara Dissanayake claimed there lacked clarity on Sri Lanka’s stance with regard to the MCC agreement with the US. “What did they say before the election? Did they say anything about the discussions? The Government should announce that they will remove the two deals. If not, Ranil should say that they haven’t signed a deal of such sort. Not only have they signed the agreement, but they have also taken $ 10 million for it,” Dissanayake has been quoted saying on 28 February at a public meeting this year. Meanwhile, investigating into this issue, The Black Box came across an online post dating 22 March 2018, where Crown Agents USA was seeking to employ a Procurement Agent Manager and Specialist for Sri Lanka. The post can be viewed on https://www.devex.com/jobs/procurement-agent-manager-and-specialists-sri-lanka-542347. Under the job description, it was stated, “Crown Agents USA, Inc. (CA-USA) is seeking a Procurement Agent Manager and Procurement Specialists for an anticipated Procurement Agent Services contract in Sri Lanka supporting the Millennium Challenge Compact (MCC) for the Millennium Challenge Account (MCA) assistance to increase economic growth by investing in transport projects to reduce traffic congestion in the capital region and improve the mobility of people and goods between regions and to strengthen property rights and stimulate investment in state-owned lands. All positions subject to successful project award.” Also, the role and responsibilities of the Procurement Agent Manager included : serving as chief liaison with MCA-Sri Lanka and other stakeholders regarding activities to be undertaken under the assignment; co-ordinating activities and information/feedback with MCA-Sri Lanka to diligently oversee, discharge, and perform all services necessary to achieve the optimum value for the monies expended by MCA-Sri Lanka while ensuring that all procurement transactions are conducted in compliance with the principles, rules, and procedures set out as in the funding agreements; co-ordinating general day-to-day activities of the Procurement Agent Team; monitoring and overseeing the procurement activities undertaken by the Procurement Agent Team; and utilising the management information system for procurement-related functions. According to the organisation description, “Crown Agents is an international development company employing over 600 personnel worldwide with a presence in more than 40 countries, subsidiaries in 11 countries, and permanent staff working on the ground in 22 corporate offices in Africa, Asia, Latin America, Japan, the UK, and the US. Crown Agents provides direct assistance, management consulting, and human and institutional development for public and private sector clients in procurement, logistics, health systems strengthening, customs and trade facilitation, and public financial management. “Crown Agents USA (CA-USA), the US incorporated subsidiary of Crown Agents, provides direct technical assistance, capacity development, and procurement services to stimulate economic growth, establish good governance, and improve health outcomes across the developing world. Since its incorporation in the US in 1998, CA-USA has provided technical assistance services and support to US Government agencies and international organisations such as the US Agency for International Development (USAID), the Millennium Challenge Corporation (MCC), the US Trade and Development Agency (USTDA), Department of State (DOS), and the Gates Foundation,” the organisation description further states. The US MCC Compact has been a sour point in Sri Lanka-US relations for the past few years. Former President Maithripala Sirisena, after heeding the objections raised against the agreement, blocked it from receiving Cabinet approval, leaving the issue in the balance. Sirisena’s successor, President Rajapaksa, has to now take on the matter and make a clear statement on whether the country would go ahead with the agreement or reject it. Strengthening ties While Sri Lanka’s ties with the US continue to be tested with the controversial MCC Compact, Sri Lanka’s ties with its neighbouring countries in the region are on a positive note. Pakistan’s Prime Minister Imran Khan on Thursday (25) telephoned President Rajapaksa to discuss pressing bilateral and regional issues. The two leaders had discussed the economic impact of Covid-19, the regional situation, and a broad range of other issues. Premier Khan had also commended the efforts made by Sri Lanka to fight the Covid-19 pandemic. He briefed the Sri Lankan President about the latest situation in Pakistan and the steps taken by the Government to contain Covid-19 and efforts to save lives, secure livelihoods, and sustain the economy. The Prime Minister had apprised the President about his “Global Initiative on Debt Relief” for developing countries to mitigate the severe socioeconomic impacts of the pandemic. The Pakistan Premier underscored that developing countries were particularly vulnerable. The Pakistani Premier had also shared his perspective on the grave situation in Indian-occupied Jammu and Kashmir and underscored the imperative of peaceful resolution of the Jammu and Kashmir dispute. In the context of the regional situation, the Prime Minister had underlined that rather than confrontation, co-operation must be the key dynamic to help realise the true potential of more than 1.5 billion people in South Asia. He had underlined that the goals of sustainable development and prosperity should be advanced through regional co-operation, including the platform of South Asian Association for Regional Co-operation (SAARC). The Prime Minister had reiterated the invitation to President Rajapaksa to visit Pakistan once the Covid-19 situation improves. The two leaders had agreed to remain in close contact to co-ordinate the regional response that is Covid-19 related and other challenges, and to realise opportunities. Gearing for polls Meanwhile, in the local political arena, the Election Commission (EC) on Thursday (25) met to discuss and decide several important matters related to the 2020 general election. Key among the matters discussed was the extension of the time allocated for voting at the 5 August election and the counting of votes on 6 August. While the time period allocated to vote on Election Day is usually between 7 a.m. to 4 p.m., the EC has been in discussion over the possibility of a rising need to extend the polling time on the day due to the additional measures that have to be placed in line with the health guidelines. However, the EC has not yet made any final decision on the polling times and the matter is still open for discussion. On the other hand, the EC is also mindful of the cost factor. The Commission is looking at maintaining the cost component that has risen from the initially anticipated Rs. 7 billion, below Rs. 10 billion. Several social media reports had also noted that given the current estimates, the EC was likely to spend Rs. 44 million to elect one member of Parliament, while nearly Rs. 614 will be spent per voter to elect 225 members to the new Parliament. Focus on 19A The governing Sri Lanka Podujana Peramuna (SLPP) last week commenced its election campaign work with Party Leader Prime Minister Rajapaksa declaring open the SLPP District Office in Kurunegala last Sunday (21). After noting the need to elect a strong government at the forthcoming general election, Rajapaksa had emphasised that the SLPP aims to form a Government with a two-thirds majority to address what he termed as shortcomings in the Constitution, especially the 19th Amendment. He had said the SLPP would be able to make “healthy” amendments to the 19th Amendment in order to expedite the country’s development. The Prime Minister’s sentiments are also shared by the President, who on numerous occasions has pointed out the shortcomings of the 19th Amendment in relation to matters of governance. As Rajapaksa commented on amending the 19th Amendment, which is considered a crowning glory of the former Yahapalana Government, UNP Leader Wickremesinghe, speaking at a meeting of the National Lawyers Association held at Sirikotha last weekend, while urging them to work for the victory of the UNP, had also noted the importance of the 19th Amendment. Wickremesinghe had explained that it was during the UNP’s tenure in government from 2015 that the judiciary and public sector experienced large strides forward in securing their independence from political interference. He had further noted that the 19th Amendment, which was passed by the UNP in 2015, had introduced independent commissions and ensured the public sector including the Police as well as the judiciary, would be free from interference. Drawing attention to the President’s tongue lashing at the Central Bank officials, Wickremesinghe had explained that the freedoms achieved through the 19th Amendment were being eroded. He had further added that the present Government was attempting to use the military to control the actions of the public servants. While appreciating the services of the armed forces during the war, the UNP Leader had gone on to add that they had been trained to carry out those duties. Similarly, the public servants have also been trained in their respective fields and should be given the space to operate. According to Wickremesinghe, in order to ensure that Sri Lanka’s public service was looked after, the 19th Amendment must be protected, adding that only the UNP was capable of doing so. CC meets As the debate on the 19th Amendment continues, the Constitutional Council (CC), which is a key component of the respective piece of legislation, met on Wednesday (24). The main task carried out by the CC was to approve President Rajapaksa’s two nominees to the Monetary Board of the Central Bank. Accordingly, the nominations of former Central Bank Deputy Governor Ranee Jayamaha and Nature’s Beauty Creations Ltd. and Multichemi International Ltd. Chairman Samantha Kumarasinghe have been approved by the CC. The CC had met at around 6 p.m. and deliberated the nominees for the Monetary Board as well as other matters on the agenda, including the letter sent by Ahimsa Wickrematunge – daughter of slain journalist Lasantha Wickrematunge – till around 7.15 p.m. Thereafter, the Council had engaged in informal discussions for roughly about an hour before adjourning the meeting. The CC had also discussed the letter sent by Ahimsa Wickrematunge and decided to give a maximum of three days to the National Police Commission (NPC) to submit their observations on the allegations made, CC sources disclosed. Wickrematunge, in a letter to the Acting IGP, had pointed out that SSP A.R. Pranna De Alwis – who the CID uncovered had hidden evidence regarding the shooting of Lasantha Wickrematunge while being the Chief of the CID in 2010 – had not been arrested as ordered and instead had been made the Officer-in-Charge of the CID once again in 2019. The CC had called on the NPC to submit their observations on the matter – which in turn had requested the views of Acting IGP C.D. Wickremeratne. However, the Acting IGP had requested more time for the NPC to respond. Consequently, the CC had decided not to delay the matter any further and is to order the Police Commission to handover it’s observation within three days. In addition, it had also been the general notion of the CC that a permanent IGP was needed during the upcoming election. “The desirability of having a permanent IGP during the election particularly – the general feeling was that it is advisable to have someone permanent,” a CC member had told The Morning. CC members present at the meeting were Prime Minister Mahinda Rajapaksa, Javed Yusuf, Nagananthan Selvakumaran, former UNP MP Thalatha Athukorale, and former JVP MP Bimal Rathnayake, with former Speaker of Parliament Karu Jayasuriya chairing the meeting. Absentees were former Opposition Leader Sajith Premadasa, former MP Mahinda Samarasinghe, and Tamil National Alliance (TNA) Leader and former MP R. Sampanthan. No relief for SJB On the electoral front, the Samagi Jana Balawegaya (SJB) headed by former UNP Deputy Leader Sajith Premadasa is still ambling to ensure its legitimacy. It is in this backdrop that the Colombo District Court last Monday (22) refused to issue an injunction order on the decision of the UNP to suspend the memberships of 99 party members. The order was delivered by Colombo District Court Judge Amali Ranaweera after considering the petition filed by former parliamentarian Ranjith Madduma Bandara. General Secretary of the SJB Ranjith Madduma Bandara had filed the petition seeking an injunction preventing the UNP from suspending the party membership of 99 members based on contesting the next general election under the SJB. However, the UNP members currently in hot water for siding with the SJB could either push for a collective appeal before court or send their official explanations and seek redress from the UNP leadership. The UNP however, is now gearing to crack the whip against the party’s local government members who have aligned themselves with the SJB. The UNP will proceed with disciplinary action against local government members who have not supported the party during the ongoing elections in the coming week. According to senior party sources, the leadership had decided to wait till the district case filed by the SJB was addressed before proceeding with action against the other errant members. The sources further stated that the party would continue to pursue disciplinary action against the 102 members already suspended. “They have been given time to respond to their charges, once that time period has elapsed, the disciplinary hearings will begin,” the source stated. UNP kicks off campaign The UNP meanwhile is to launch its campaign for the general election today (28) from Colombo. Moving away from the conventional launch ceremonies, the party is looking at using modern technology and holding Zoom meetings to launch its election campaign. Also, the election meetings will be posted on social media and the meetings are expected to begin from 4 July. The UNP leadership has directed the party members to ensure that all election-related meetings will be held, maintaining health guidelines. Party Leader Wickremesinghe is expected to participate in religious observances as well as places of worship belonging to all religions. Karuna in hot water The SLPP-led alliance is however facing some criticism over comments made by former Minister Vinayagamoorthy Muralitharan alias “Karuna Amman”, that he is more dangerous than Covid-19. Karuna is contesting the forthcoming general election under the SLPP. “Chairman of the Karthivu local government body has said that I am more dangerous than the coronavirus. That is true. When I was a member of the LTTE, I killed some 2,000 to 3,000 Sri Lankan Army personnel in one night at Elephant Pass. I have killed more in Kilinochchi. That is certainly higher than the number of lives the coronavirus has claimed in Sri Lanka,” Karuna had said, addressing a gathering in Navadinveli, Ampara on 19 June. He had said that Prime Minister Rajapaksa had extended an invitation to him to join Parliament from the National List, but he had declined it as he wanted to be elected to Parliament with a people’s mandate. Soon after the comments were made public in the media, Karuna as well as the SLPP gathered much criticism from all corners of the country. Demands for a probe on Karuna over his comments, which were seen as glorifying the killing of Sri Lanka military personnel, started to grow through last week. Finally, Acting IGP ordered the Criminal Investigation Department (CID) to immediately launch an investigation into the statement made by Karuna. Referring to Karuna’s statement, SLPP General Secretary Sagara Kariyawasam said that the party vehemently condemn the statement. “We are not in a position to take the responsibility of the statement he made as he is neither a member of the SLPP nor a member of our affiliated group,” he told a news briefing last week. “He is contesting the upcoming general elections against our party from another newly-formed party," he had added. He had said there was a tendency for Karuna to make such statements when he is dealing with Ranil Wickremesinghe and Sajith Premadasa. “However, we would like to categorically mention that Karuna Amman is not maintaining any links with our party for the upcoming general election and reiterate that we highly condemn the statement,” Kariyawasam had added. When the CID commenced a probe and summoned Karuna to record a statement, he informed the CID on Wednesday (24) through his lawyers that he was unable to record a statement with the investigators since he was unwell and that he would arrive at the CID as soon as he was fit to do so. The CID had meanwhile, deployed sleuths to visit the Eastern Province to record a statement from Karuna. However, Karuna Amman finally arrived at the CID on Thursday (25) morning to give a statement over his remarks. Karuna left the CID compound after giving a seven-hour statement to the CID. Speaking to reporters on his way out of the CID, Karuna had said he had no intention of insulting the Sri Lankan Army or the Government through his comments which were made during election campaigning and that he did not intend it that way. UN weighs in Meanwhile, the United Nations Human Rights Council (UNHRC) had called for an investigation into child soldier recruitment by Karuna Amman. The office of the UN High Commissioner for Human Rights Michelle Bachelet tweeted saying it took note that former LTTE Commander and Government Minister Amman is being questioned for alleged past crimes. “We note that #Karuna, former LTTE commander & Government Minister, is being questioned for alleged past crimes. He should also be investigated for wholesale recruitment of child soldiers, a crime under int'l law. Accountability should apply to everyone in Sri Lanka,” the UNHRC had tweeted. AG clashes with CoI Apart from the chaos in the political arena, last week also saw the AG lock horns with the Presidential Commission of Inquiry (PCoI) on political victimisation by the former Government. AG General Dappula De Livera on Monday (22) objected to summons and notice being issued on Senior State Counsel Janaka Bandara to appear before the PCoI. The AG raised objections in terms of Section 16 of the Commissions of Inquiry Act and in connection with the Avant Garde arms trafficking case. In a letter to the PCoI, the AG said that the mandate granted to the Commission does not extend the scope of the inquiry of the PCoI to involve the AG or his officers. The AG said that the PCoI had been appointed to look into alleged political victimisation of public officers, employees of state corporations, members of armed forces and the Police. He added that therefore, Chairman of Avant-Garde Nissanka Senadhipathi, who is a complainant, has no legal standing in the light of the above. The letter also mentioned that in terms of Article 4 (c) read with Article 105 of the Constitution the Commission of Inquiry was not empowered to review any decision of the AG and could be exercised by only a Court of Appeal law established according to above laws in the Constitution. Accordingly, the AG reiterated that summons and notice served on Senior State Counsel Janaka Bandara to appear at the PCoI were contrary to law and were invalid. The following day, Tuesday (23), the PCoI declared that the AG’s office couldn’t send counsel to represent a respondent. PCoI Chairman former Supreme Court Judge Upali Abeyratne said that he would not allow a second team from the AG’s Department to make submissions on behalf of a respondent. “There is already a team from the AG’s office present to assist the Commission with our proceedings. The AG’s office can only assist with the proceedings particularly on the subject of clarifications once evidence is submitted. So, a second team of AG office counsels cannot represent one of the respondents,” he said. The Commission made these assertions when a senior official of the AG’s Department attempted to make submissions pertaining to one respondent – Senior State Counsel Janaka Bandara Tennakoon. “Additional Solicitor General Rohantha Abeysuriya is heading the team sent by the AG’s office to assist this Commission. If the AG doesn’t have confidence in him, then he can send another team to assist the Commission, but he cannot send officials to represent a respondent; that is both unethical and beyond the constants of the law,” PCol Chair Justice Abeyratne said. The PCoI thereby decreed that it had decided that the complaint of the Avant Garde Group Chairman came within its mandate, despite the latter not being a public official. Justice Abeyratne asserted that the Commission had already decided that it indeed has the jurisdiction to investigate the complaint lodged by Senadhipathi before commencing hearings. “The Commission deliberated on the matter at the beginning and we decided that the complaint by the Avant Garde Chairman came within the ambit of the Commission. Only thereafter did we begin hearing the case,” Abeyratne said, adding that if anyone had concerns regarding this matter, they could take it up at a higher court of law such as the Supreme Court (SC). The Commission made this declaration in response to arguments raised by the various counsels present to represent former Ministers Dr. Rajitha Senaratne, Arjuna Ranatunga, and Janatha Vimukthi Peramuna (JVP) Leader Anura Kumara Dissanayake, who were present before the Commission as respondents. Upul Jayasuriya PC and Senior State Counsel Janaka Bandara Tennakoon were also present as respondents. Counsels for the respondents argued that according to the gazette notification which was published to establish the PCoI, its scope only stipulated the hearing of complaints lodged by public officials or members of the tri-forces who had been politically victimised, and that the Avant Garde Chairman, being a private individual, could not be considered a public official, and his complaint didn’t come under the mandate of the PCoI. Senior State Counsel Bandara Tennakoon, at this point, requested the bench to either accept or reject the claim of the counsels that the Commission had gone beyond its scope so that the respondents could seek further legal recourse at a Court of Appeal. However, the Chair refused to do so. “I have very clearly stated our position and that we had taken a decision on the matter before beginning proceedings. Now, we are at the end of the hearings,” Justice Abeyratne said.


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