Friday, May 18, 2007

Clarification Regarding the Million-Dollar Homes of the Rajapaksa Clan

The purpose of listing this information was primarily for public declaration, as opposed to question how they may have acquired the money to purchase houses in California. This is Sri Lankan law that was circumvented by the Rajapaksa clan by simply introducing laws tailor-made to their needs.

Although eyebrows may be raised as to how such properties may have been purchased considering their combined lack of professional qualifications or educations and/or experience in business. Also, please keep in mind the $4.5M figure used is an AVERAGE for a house of similar size & bed-rooms, in very close proximity. Exact price of this house can vary up or down, although not significantly.

While mortgages are an obvious and most probable option, as a rule of thumb credit for such ventures are only given such that payment of debt is no more than 30% of disposable household income. Payment of debt includes payment for credit cards, automobile, child-support, student loans, etc, etc.

A simple reverse calculation for a $4.5 million dollar mortgage, on a 30 year loan at an interest rate of 4% will require a monthly payment of $21,000. If this represents 30% of disposable household income, then full monthly income is $70,000. This converts to $840,000 annual income.

Since the United States does not have a tax treaty with Sri Lanka, it would be interesting to know whether taxes for this income has been paid.

18 comments:

indi said...

good deduction and analysis.

Concerned Citizen said...

Dude arent they dual citizens ? Thats the most fucked up part. That if shit hits the fan the people responsible can run away as fast as fucking possible. I am 110% sure that Goat Rajapakse and the other toodles are dual citizens, but i am not as certain about the chief Toodle. If it so then i'm leaving this place.

N said...

Actually DTI (debt to income ratio) can go as high as 50%...I am however curious where you get evidence for a lack of professional qualifications/business experience...what exactly did the two do in the US?

Also your reasoning behind the $4.5million figure is wrong. You took one house, that's not an average. And the google value looks more like a typo than anything else.

I'm not trying to whitewash the Rajapakses. I expect them to be as crooked as any SL politicians, but those of us who try to expose them must maintain a sense of integrity and credibility...which you are in danger of losing.

LankaWhistleBlower said...

n,
The figures that I used were best-case scenario. A DTI of over 30% would only increase the lending risk, and thereby your interest rate way beyond the 4% that I used.

About the professional qualification, I am sure if there was anything significant it would be splashed across the media. Gotabhaya is the only one who has a proper profession as a soldier. And from what I know, soldiers in SL are would find it difficult to afford a good house in the suburbs of Colombo, let alone LA.

Rumor has it (I REPEAT: RUMOR) that one of them was a manager at a grocery store.

Nihal said...

$4.5 Million is equal to almost to $475 Million rupees, i don't any house is as valuable in Sri Lanka... What a disclosure.... God knows what more they have....

Anonymous said...

it's not rumour. I was in Arcadia in California for Christmas. Everyone there spoke of the security guy at the neighbourhood mart who had become the Defence Secretary when they heard I was Sri Lankan.

Anonymous said...

Would a petrol pump attendant be considered a manager of a grocery store?

This is the story that I have heard.

Think petrol stations pay the best wages for unskilled work, most Sri Lankans do this overseas.

Anonymous said...

Heard he was a pimp for a well known red light district in SF. Can somebody verify that?

L said...

concerned citizen:
Dont want to make you leave the country, but heard even the JVP leader has British citizenship and he was one of the jokers standing in front of the British Embassy recently and protesting against funding cuts.

L said...

Correction:

Against colonial interference.

Anonymous said...

From anon to anon,

it's very easy to verify whether he was what you heard he was, Just go to the SF red light district and ask the whores there whether they know the guy. Shoppers in Arcadia seemed to know the guy so it's fairly easy to verify this sort of rumour.

Digg said...

Again read...

People,

First you need to use a credible site to get prices of homes in the US. What google gives you is a site on internet, which could be or not be credible. A very known site for real estate is www.zillow.com.

Now the $4.5 million house you talking about was "recently" sold for $461,774, which is an average house price in fontana, ca - http://www.zillow.com/search/Search.htm?addrstrthood=6530+douglas+ave&citystatezip=fontana%2C+ca&GOButton=

Anonymous said...

Please check on your rumors and don't spread lies. I'm from California and according to my personal knowledge, Gotabaya was the IT Director for a law school in Los Angeles.

LankaWhistleBlower said...

Could you please provide the name/web-address of the school? School's generally tend to list this kind of positions in their directories.

I personally have not come across any previous employment history of him. What a commendable transition though, from Lt. Col to IT Director at a law school.

poojitha said...

I think you are bit biased towards Ranil....are you a UNP supporter?...please don't use blogs to political campaigns , ALL major political parties are full of crooks like this.

Anonymous said...

I disagree with you Poojitha. Everybody is entitled to their opinion. There should be blogs like this one. It is just one persons views. What we take out of it depends on us.

Anonymous said...

Heard that the house that was used by the Australian High Commission in Cambridge Place has been bought by Gota?

Can anyone confirm the story?

Anonymous said...

Guys, WHEN WERE THESE HOUSES BOUGHT? IF they were bought BEFORE MR became President, then it is a moot point. NO ONE says if they owned the houses after they migrated during the Premedasa regime. Gotabaya was a very good officer who was harassed and victimized and quit in frustration at the UNP. He fought in Jaffna and also did well to fight the JVP terrorists. So if they had the house from BEFORE Nov of 2005, then how do we know how he bought it ? Come on now, Are you helping the Eelam cause with this sort of allegation? Remember the assholes who claimed CBK HAD a house on the Nile ? and say they SAW IT?? Sheesh guys