Lanka Whistle-Blower

Protest Leaders Address the Public

2007-07-26T23:17:00.000Z

Included are clips of Ranil Wickramasinghe, Ravi Karunanayake, SB Dissanayake, Mangala Samaraweera, Mano Ganeshan and Ranjan Ramanayake.

Video Footage of the Protest Rally

2007-07-26T23:12:00.000Z

Video footage of the protest rally organized by the UNP, SLFP(M), and other affiliated parties/organizations.

The Jaded Glory of Thoppigala

2007-07-16T20:57:00.000Z

Thoppigala has now been successfully captured and the entire east is now, according to the Government of Sri Lanka, under their control. Albeit the apparent lack of government control in Colombo, where abductions & murders are the order of the day, this is a significant accomplishment if not for anything else, but because the government says so.

The purpose of this post is not so much to discuss issues regarding the operation itself. Rather, its purpose is to examine the aftermath of the "victory," and the elaborate celebrations that are underway to serve the personal interests of certain individuals.

Primary celebrations are to take place at Independence Square, where the President is arrive ceremoniously, escorted by the fleet of BMW motorbikes as well as the mounted guards. This is to be followed by a military parade, 21 gun-salute, a fly-over by the air force, and a handing over of a sannasa by the Commander of the Army, to the President -- declaring the East is now in fact, under government control.

Parallel to this celebration, a number of parallel celebrations are also to be held in government schools and departments island wide. Principals, and other leaders are instructed to talk about the importance of this accomplishment of capturing the east.

In the backdrop all these celebrations, a few questions that I think are worth pondering, do come to mind.

First, the "national event" that is being planned is almost like Independence Day celebrations, including the pivotal venue, and the ceremonial activities. Does this imply that the Republic was liberated from an occupying foreign force? While the LTTE are obvious terrorists, and obviously maintained a presence in the East, comparing them to an occupying foreign force (such as the Brits, one might add) might just end up being a compliment to the LTTE.

Second, everybody keeps saying that the capture of the East is "important." However, apart from the obvious face-value of it, no one has so far pointed out the strategic importance of the East. Hence, what is the real, strategic importance of permanently occupying the East? No large stockpiles of weapons have been captured, and no significant casualties inflicted on the LTTE. If they have, it would've surely been broadcast all over.

Third, since the East is now completely under government control, will the government accept responsibility for any killings and/or recruitment of child soldiers? Will camps of the Karuna faction, with whom the government claims they have no connections, be shut down?

Finally, who are the real heroes of this battle? Although the authorities have been rather slow in releasing casualty figures, I am sure there were soldiers who either died or got injured in the battlefield. Why is the government wasting all this money in these elaborate celebrations without recognizing the true heroes? Wouldn't it have been a more sincere, more patriotic and a more appreciative act to recognize those men & women who fought? If not any other, just sharing the money spent on these event among those veterans would perhaps have given them a significant bonus.

Instead, what we have is a pompous pageantry symbolic of a monarch, carried out in a sorry bid to boost the popularity of the very man who has been accused of providing money to the LTTE.

Victor "AFNS" Perera & Baila -- Music Video

2007-07-15T19:56:00.000Z

How Mahinda Rajapaksa Channeled Money to the LTTE

2007-07-11T20:36:00.000Z

Originally published in the Sunday Leader (subscription required). Reproduced on LWB for free in the public interest.

President's Tiger Deal Exposed

By Sonali Samarasinghe

Damning evidence of the government's secret deal with the LTTE has now surfaced, revealing President Mahinda Rajapakse granted unsolicited multi million rupee bogus housing projects to the Tigers to allegedly facilitate the transfer of money under the deal.

The bogus projects were being given to the Wanni even as a water crisis depriving some 15,000 farmers of water raged on in Mawilaru, a humanitarian crisis was brewing in Muttur resulting in thousands of Muslims being displaced from their homes, and hundreds of soldiers had been killed in fierce fighting ordered by Rajapakse no less.

The projects were whitewashed through a cabinet paper submitted on August 2, 2006 by Rajapakse himself well after the decision had already been taken and after a large sum of money had already been transferred to the said company.

Two Part Deal
In fact it was part of the deal agreed upon before the presidential election with the LTTE in exchange for the Tigers enforcing a boycott of the poll in the north and east.

The deal with the Tigers our investigation reveals was two fold. The first part was the payment of a large sum of money by Basil Rajapakse to the LTTE front man Emil Kanthan. Some of the money was in dollar notes, the numbers of which the LTTE had noted before putting it to good use to further their goal for a separate state.

The second part of the deal was to come into effect in the event of Mahinda Rajapakse's victory and was to include inter alia a housing project for the LTTE, disarming the Karuna group, appointing LTTE nominees to various political offices and resumption of talks in Thailand.

The cabinet note forwarded by the President on August 2, 2006 sought approval to grant the first housing project in the north and east in terms of the post election part of the deal. It was for forms sake to be under the Rebuilding the Nation Jayalanka Housing Programme and given to B & K Holdings (Pvt) Ltd. of No. 437A, 3rd Lane, Hirunavukulam, Thandikulum, Vavuniya. The deal was for the construction of 400 housing units at Trincomalee; and another 400 units in Batticaloa was awarded to Everest Civil Engineering services of 113/1, Mill Road, Kulangkulam, Vavuniya.

The note also states ambiguously that 400 other housing units will be implemented in other districts but do not even name the districts, merely stating the entire cost estimate for the 'required' 1200 housing units would be Rs. 757,166,000 (inclusive of consultancy fees).

Key Player
The key player in the entire drama was of course Emil Kanthan, the man the Attorney General's Department and the Terrorism Investigations Division have identified as a key LTTE intelligence officer in records filed in court.

In fact, former Airport and Aviation Chief Tiran Alles was arrested for allegedly providing funds to Kanthan, a matter he has hotly denied but an investigation by The Sunday Leader reveals it was none other than President Mahinda Rajapakse who provided funds to a front company of Kanthan under the guise of a housing project.

The consultant named in the cabinet note is GS Builders & Consultants of Vavuniya, who top sources said was also connected to Emil Kanthan.

Sources also said that while the cabinet note attempted to allude to some sort of procedural propriety by stating that approval was granted for invited and solicited offers no such thing had actually occurred and the reality was that President Rajapakse engineered the entire post secret deal operation.

It was in fact President Rajapakse who had directed the Reconstruction and Development Agency to put up a board paper and approve the project to be granted to the Emil Kanthan front.

Therefore there had been no cabinet approved tender board, no cabinet procurement committee approval as is mandatory in such development projects and certainly no pre qualification of contractors as per the government rules under ICTAD's Grade M1 certification.

Shadow Offensive
Ironically even though a shadow military offensive was continuing in the north and east and the armed forces were engaging in combat with the terrorists, Rajapakse did not force a full blown military confrontation until after the Mawilaru incident and well after his cabinet paper was tabled.

President Rajapakse meanwhile maintained publicly he was a patient man who did not rush to war and was observing the Ceasefire Agreement even though there was to be a marked increase in civilian and military deaths in the north east, while privately seeking to allegedly honour promises made to the LTTE.

To top the diabolical deception the Rajapakse administration while making good its promises on the secret deal with the LTTE on the one hand was facetiously calling on the international community to convict the Tigers of war crimes over the Mawilaru anicut.

Our investigation shows that the trumped up projects were handed over to Barkavi Shanthikumar, the common law wife of whom the government identifies as a LTTE intelligence wing member and go-between Emil Kanthan and her two brothers Shanthikumar Kishokumar and Shanthikumar Gajankumar,. The projects were handed over through a construction company - B & K Holdings (Pvt) Ltd. of No.437A, 3rd Lane, Hirunuvakulam, Thandikulam, incorporated just one month after Mahinda Rajapakse took office as the President.

Diabolical Deed
President Rajapakse himself signed the cabinet note on August 2, seeking approval to grant the over Rs. 700 million project to the bogus company whose stated Vavuniya address in the cabinet note is anything but an office.

A Sunday Leader search revealed the company was incorporated on December 23, 2005 in Colombo and not in Vavuniya as stated in the Cabinet Memo giving as its address No.45/4, Church Road, Wattala. However our investigations found the address to be as mysterious as the one given in Vavuniya. There was certainly no office with that number on Church Road, Wattala.

The subscriber shareholders of the company - the common law relatives of the infamous Emil Kanthan -- have given their address as No. 48A, Albert Place, Dehiwala. Though this address exists our investigations found only a deserted residence which had been padlocked from the outside.

What is also potentially treacherous is that the bogus company to which the President and Commander in Chief of the Armed Forces was now handing over construction projects had as its primary objects not only the business of construction building but also building, owning, managing and operating plants for the generation of electricity using hydro power, thermal power, wind power, fuel or oil and bio gas or other resources not to mention the business of telecommunications.

Credentials
The very fact the government had not checked the credentials of the companies to which the President was seeking to hand over a project running into over Rs. 700 million was evident from the above details alone and it was so because what was in play was part of the secret deal and the only credential required was that of the man who delivered Rajapakse the Presidency, Emil Kanthan. After all which other company incorporated just six months earlier with no credentials would be given a project worth over Rs.700 million? And just to cover their tracks a bank guarantee was sought.

Be that as it may, the authorised share capital of B & K Holdings Private Ltd. is stated as Rs. 10,000,000. The Secretaries are LM Management Services (Private) Limited of No 291/32A, Havelock Gardens, Havelock Road, Colombo 5.

Funnily enough President Rajapakse would have us believe that the cabinet was satisfied that this recently incorporated bogus company was sufficiently able to undertake a Rs.700 million project to construct homes in the north east when even the Vavuniya addresses given in the cabinet paper of both the consultant firm and B&K holdings were false to say the least.
A Sunday Leader investigation revealed there were no offices at these addresses. No. 113/1, Mill Road in Vavuniya was a residence where one P. Nandakumar and one Rajeswari Nandakumar lived.

No. 437A, 3rd Lane in Vavuniya was also a residence occupied by one Wannisingham Subramanium.

Of Little Concern
Certainly these did not look like the offices or the employees of two companies able to construct, maintain, manage and operate electricity generators, leave alone construct 700 million rupees worth of houses in the difficult north and east area.

For Rajapakse who is willing to waive the government's right to first refusal and transfer 25% of NTT shares in Sri Lanka Telecom to a company hastily incorporated in the Netherland Antilles like Global Telecommunications Holdings such a matter may be trivial.

Certainly even the cabinet note seeking approval seems to be mere chicanery and only an attempt to launder the money transfer under the alleged deal.

Pre-Election Promises
Both Sooriyaarachchi and Alles who were President Rajapakse's closest allies at the time revealed it was Basil who had been the main negotiator for the President. Sooriyaarachchi also alleged Basil had paid millions in furtherance of the deal.

More importantly Alles had stated in his statement to the TID that Rajapakse had asked him to secure a connection to the LTTE during the presidential campaign and he had informed the then prime minister he could only give him a business contact - Emil Kanthan.

Once the contact was introduced however it was Lalith Weeratunga, P.B. Jayasundera and Basil Rajapakse who decided on the nitty gritties and allegedly clinched the deal.

Keeping Promises Post Win
While President Rajapakse is not known as a man inclined to honour legal agreements or Memoranda of Understanding the promises to the LTTE which secured his victory and fulfilled his lifelong dream, he was determined to keep.

Once Emil Kanthan had made a request to hand over the moneys under the alleged deal through some project, President Rajapakse shortly after he took oaths as Chief Executive, was made aware of this. He immediately informed Treasury Secretary P.B Jayasundera to do the needful.

To this end President Rajapakse also requested that housing projects be handed over to persons nominated by LTTE's Emil Kanthan.

By a happy coincidence it was Tiran Alles then still close to Mahinda Rajapakse who headed RADA, the agency now in charge of reconstruction. However Alles had wanted tenders called and evaluations done before handing over such large housing construction projects but Rajapakse, sources alleged, had insisted that both the construction company and the consultant should be nominated by the LTTE link.

Approved Without Question
Rajapakse had also insisted a board paper on the subject be put up for approval to the RADA board and as it was a request by the President himself the RADA board -- as is the habit in Sri Lanka and other underdeveloped, simple-minded third world countries -- had approved it without question.

President Rajapakse was to then call P.B. Jayasundera and tell him to release the money to RADA in order to facilitate the unsolicited projects.

RADA sources told The Sunday Leader there were many other bona fide projects discussed relating to the north and east. It is obvious the bogus projects were to be embedded within the bona fide projects to camouflage the government's subterfuge.

Cabinet Paper
It was to this end that President's Secretary Lalith Weeratunga, ever the bureaucrat and expert in cover-up documentation, who at a meeting at the Presidential Secretariat which included RADA officials, suddenly realised that the project which had been already granted to Emil Kanthan should be 'covered' by a cabinet paper.

By this time some Rs. 150 million had already been paid to the bogus company of Emil Kanthan.
Furthermore once the Chief Operating Officer (COO) of RADA Saliya Wickramasuriya was appointed to the Ports Authority as its chairman it was Shanthi Fernando, wife of Sunimal Fernando, special advisor to President Rajapakse who took over as the COO of RADA.
The cabinet paper was therefore prepared by Lalith Weeratunga and the information had also been communicated to Shanthi Fernando.

The cabinet not surprisingly had approved the project which was indicated as the first housing project for the north and east under Rebuilding the Nation Jayalanka Housing Project. (See box for full text of cabinet paper)

Deal Struck
While speculation was rife during the 2005 elections the Rajapakses had struck a deal with the Tigers to disenfranchise over 600,000 voters in the north east in a bid to ensure a Mahinda Rajapakse win, details of the diabolical deed only came to light when ousted Minister Sripathi Sooriyaarachchi publicly announced he was privy to certain aspects of the secret deal with the Tigers and alleged a large sum of money had changed hands.

It was at about this time that former Rajapakse confidant and Airport & Aviation Chief Tiran Alles was also becoming increasingly distanced from the President. But it was not always so.
It was Alles, who was earlier widely rumoured to be the link man between the government and the LTTE, that Mahinda Rajapakse appointed as head of the lucrative Reconstruction and Development Agency (RADA) even though it was first speculated RADA would come under the purview of UNP cross-over Mahinda Samarasinghe's Disaster Management Ministry - an agency Samarasinghe had eyed when making his decision to jump. Though promised to Samarasinghe, we know now why RADA was kept within presidential control.

RADA was established in November 2005 under a Presidential directive, as successor to the Task Force for Rebuilding the Nation (TAFREN).

End of Silence
Meanwhile Alles who was credited with securing the deal with the LTTE for Rajapakse prior to the presidential election had maintained silence throughout the controversy over the secret deal which led to the Tiger enforced boycott of the election but finally broke his silence May 30.
In a statement to the Terrorism Investigations Division (TID) Alles revealed details of the pre-presidential election deal with the LTTE and informed the TID he was requested by Mahinda Rajapakse as prime minister to establish a link with the LTTE to coordinate the presidential election strategy for the north-east.

So happy was Percival Mahinda Rajapakse with the results at the time that Alles was one of the first persons he rushed up to and delightedly hugged at his Presidential inauguration ceremony in November.

Be that as it may, Alles was arrested shortly after making the damning statement indicting the Rajapakses, for allegedly funding a LTTE intelligence wing member identified as Emil Kanthan.

Startling Revelations
However Alles in his statement while maintaining he at no stage was informed by Sri Lankan Intelligence that Emil Kanthan was a LTTE member, made some startling revelations including that Presidential Advisor Basil Rajapakse, President's Secretary Lalith Weeratunga and Treasury Secretary P.B. Jayasundera had also in his presence had discussions with Emil Kanthan on matters agreed upon prior to the presidential election.

He further said it was Basil Rajapakse who had several rounds of discussions with Emil Kanthan, a fact reiterated by former Minister Sooriyaarachchi on several occasions in public fora.

He also told the TID a full affidavit revealing the entire sequence of events was sworn by him on February 12 and that he would furnish it to the TID for further investigations. Indeed, Alles has revealed that it was Basil Rajapakse who gave money before the presidential election to the LTTE, details of which no doubt will also surface through the affidavit when it sees the light of day.

Answer to Public
President Percival Rajapakse not only as the country's first citizen but as the Commander in Chief has to now answer the people why he was to continue to deal with Emil Kanthan as the Head of State while the LTTE had only weeks before taken control of the Mawilaru anicut cutting off the water supply to 15,000 innocent civilians in the Seruwila area and resulting in the destruction of some 30,000 acres of paddy lands.

The LTTE when closing the sluice gates on July 20, 2006 claimed that under an ADB scheme meant for uncleared territory as well had been taken out of the implementation programme. According to TNA Parliamentary Group Leader R. Sampanthan the LTTE claimed this was the work of the new governor for the north east and the new government agent for Trincomalee.
It was even as the SLMM was sitting and talking to the LTTE and to local villagers to resolve this problem that the air force dropped a bomb in the vicinity and the meeting was thwarted.

Attempts to resolve this conflict continued with even Norwegian Special Envoy Jon Hanssen-Bauer arriving in Sri Lanka and visiting Kilinochchi.

Agreement
An agreement was reached but when the SLMM Chief, the Political Head of the LTTE and some people from that area went to release the water on Sunday, August 6 more military attacks were to follow.

Following this it was reported in the media the SLMM was holding the government totally responsible for the breakdown in the settlement to the Mawilaru water crisis after the security forces allegedly launched a fresh shell attack on LTTE cadres near the anicut just before the LTTE was to open the sluice gates.

Other Agendas
It was reported the "SLMM Spokesman Thorfinnur Omarsson had in fact charged it was clear the government had other agendas in mind but stressed that it was not the end of the road as negotiations for a settlement were still continuing."

While the water war was raging on the one hand with the government only intent on a prestige battle rather than supplying water to the starving villagers, simultaneously the LTTE moved in to Muttur and heavy clashes between the Tigers and the military ensued resulting in the displacement of over 53,000 Muslims.

The army meanwhile vowing to recapture the anicut was to commence military operations from Kallaru army camp on July 28 risking the lives of soldiers even as troops attempted to move towards the anicut through heavily mined fields and amidst LTTE artillery attacks. By July 30 a fierce battle had commenced some 400 metres from the anicut which left several military personnel dead.

The incident was getting to such proportions the UNP also warned that an armed conflict between the LTTE and the government would result in the destruction of the Mawilaru tank, calling on both parties to adhere to the Cease-Fire Agreement (CFA).

Government Stance
On July 24, the Government Peace Secretariat released a report which stated the LTTE action was a war crime under International Law and the Roman Statute of the International Criminal Court, also saying; "The LTTE has forcibly closed the water supply from the Mawilaru Anicut (irrigation channel) to the Seruwila, Muttur and Ichalampattu areas in the Trincomalee District, preventing the flow of water that sustains approximately 15,000 families and feeds approximately 30,000 acres of paddy land. The LTTE has prevented the Irrigation Department from opening the sluice gates. In addition, the LTTE has prevented the SLMM from having access to the location and blocked efforts by the SLMM to facilitate restoration of the water supply."

Two days later the Government Peace Secretariat, now desperate over Mawilaru stated, "The Government of Sri Lanka, at the highest levels, has repeatedly called upon the LTTE, through the Norwegian facilitators and the SLMM, to restore the water supply to over 15,000 families in the Trincomalee District who have been deprived of water since the LTTE forcibly closed the Mawilaru Anicut on Thursday, 20 July, 2006."

The report went on to add, "The Government of Sri Lanka has also raised the matter with the diplomatic community and international organisations. There is agreement that the denial of water to civilians by the LTTE is a blatant contravention of all norms of civilised behaviour and the rules of international law.'

In what was to become a cruel joke and in their haste for prestige both the LTTE and the government claimed they had opened the sluice gates. However the SLMM confirmed the sluice gates had been opened by the LTTE.

Determined
It is during this horrendous ordeal that the Commander in Chief of the Armed Forces was continuing to deal with the LTTE. It was during this period of starvation and suffering that the Chief Executive of this country who neither honoured his pre election commitments to the Marxists or to the Buddhist monks was to be hell bent on honouring his agreement with the terrorists.

Meanwhile it is ironically Tiran Alles who is arrested by the TID for keeping company with the LTTE point man to whom it is in fact the President of this country Mahinda Percival Rajapakse who granted projects signed under his very hand.

It is now Tiran Alles and funnily enough UNP Minister Jayalath Jayawardena who are being questioned by the TID on their knowledge of Emil Kanthan.

President Percival should know this. Knowing a man is one thing. Doing deals with him in order to disenfranchise hundreds of thousands of people in order to perpetrate election fraud is quite another.

Mahinda's Note to Cabinet

Rebuilding the Nation under Jayalanka Housing ProgrammeFirst Housing Programme for North and East

The Reconstruction and Development Agency (RADA) has been directed by me to commence projects for equitable assistance to all needy communities, irrespective of whether they were affected by conflict or Tsunami, in the fields of housing, livelihoods, social and physical infrastructure.

One of the first projects identified for immediate and speedy implementation is the construction of housing units for conflict-affected communities in Kilinochchi, Mullaitivu, Trincomalee, Batticoloa, Ampara, Vavuniya and Mannar districts. Housing requirements obtained from 42 GN divisions in these districts amounted to 1200 housing units. The Board of Management of RADA granted approval to invite offers from consultants and contractors in the area to implement this project. Funds for the project are to be obtained from the Consolidated Fund.

Accordingly, offers were solicited from prospective consultants and parties willing to undertake housing construction in the stipulated areas. GS Builders & Consultants of Vavuniva was selected as the Consultant for the project.

B&K Holdings (Pvt) Ltd of No. 437A, 3rd Lane, Hirunavukulam, Thandikulam, Vavuniya, which offered the lowest quote for a 500 sq. ft housing unit at Rs 624,725/(exclusive of VAT) was selected as the Contractor for the construction of 400 housing units at Trincomalee. Another 400 units in Batticaloa was awarded to Everest Civil Engineering Services of 113/1, Mill Road, Ukulangkulam, Vavuniya, at the same rate of Rs 624,725.00 (exclusive of VAT).

Housing projects in Trincomalee and Batticaloa are in progress, and the total cost estimate for both projects is Rs 499,780,560/-. With the addition of 400 housing units to be implemented in other districts shortly, the entire cost estimate for the required 1200 housing units is Rs 757,166,000/- (inclusive of consultancy fees).I seek the approval of the Cabinet of Ministers to proceed with the construction of the 1200 housing units as envisaged above.

August 2, 2006
Sgd
Mahinda Rajapakse President

P. B. Jayasundera Sheds Light

When The Sunday Leader spoke to P.B Jayasundera regarding the secret deal significantly he did not deny meeting Emil Kanthan but referred instead to a meeting at ousted Minister Mangala Samaraweera's house and stated he had met people but did not know who they were.
Q: Your name has transpired as having been present at meetings..
A: I can only say I have not participated in any discusions with the LTTE

Q: With Emil Kanthan?
A:I haven't participated with anybody because I attend various discussions with various people. I don't know the peole who come to those meetings and from which group.
Officially Minister Mangala Samaraweera invited us for a meeting so we have gone, so there must have been people but we went as officials. But our dealings are as officials. So I don't know why Tiran Alles made that statement because my dealings with him was only as chairman RADA, not beyond that.

Humiliation of a Wounded Soldier

2007-07-10T05:33:00.000Z

Charity is always a good thing. When done, it makes the giver feel good, while completely altruistic charity is almost never found. However, people in a rush to do charity often fail to empathize with the receiver, and fail to understand that the receiver is not some sort of a "circus" for the rest to observe. This was very sadly and more widely observed in the aftermath of the tsunami, where some people were donating used clothes while some others flocked to see how little kids ran after vehicles for sweets. Those people were never beggars. They were ordinary people who were displaced by a natural disaster. They were helpless.

The July 9th issue of the Daily Mirror splashed a picture of a beaming "President’s eldest son Namal Rajapaksa handing over a gift to a wounded soldier" apparently released by the President's office. This of course is no surprise. The fact that Rajapaksa's place a great deal of importance in photographs is not evident anywhere else than at MahindaRajapaksa.com. A quick visit to the site will prove that it lacks anything of any substance except a collection of airbrushed pictures of Mahinda Rajapaksa and a bunch of press releases. Nothing, in terms of results are there to be found.

Getting back to the "charity visit" it is obvious that this soldier who was probably injured during battle had no option but the accept with both hands the gift that was given by "the President's son." And no, it's not the one who got shipped away to England to train in Her Majesty's Navy.

A closer examination of the "gift' makes me wonder how much it cost anyways. It probably cost more to bring this kiddo there to begin with -- security, vehicles and backup vehicles, photographer, road closures (wasted time of others), etc combined. And to top it off, the gift was probably paid for by the State anyways.

What is sadder to note however, is the Commander of the Sri Lankan Army, General Sarath Fonseka smiling away and standing behind. It is indeed unfortunate that a person of his caliber, a professional solider, is put to play second-fiddle to the presidential kiddo. In what capacity is this podi hamu making these visits, accompanying the Commander in tours of inspection? Is this something open to everyone? Where can I sign up for inspection tours?

After everything's said and done, the picture taken, splashed across the newspapers and brownie points scored, does anyone stop to think about how humiliated the soldier might be feeling? There he was once, fighting bravely for his country. In the next instance he's being powdered-up for a charity event of podi hamu. A crying shame indeed.

Giving is always a good thing. When done properly and thoughtfully it is a blessed event for both parties. However, the greatest giving we can possibly make, is what all of us need most -- our dignity.

PERC Pays the Price for Being Vigilant

2007-07-01T20:55:00.000Z

Source: The Sunday Leader (paid subscription required)

Hot on the heels of The Sunday Leader revelations exposing the invidious Rajapakse hand in several controversial privatisation deals, which have also been severely criticised by the Public Enterprise Reform Commission (PERC), the government last week announced it would take immediate steps to scrap the commission.

Speculation is rife that PERC may have earned the wrath of the Rajapakse quartet as many of the deals it had criticised as detrimental to the country, have been spearheaded by none other than Presidential Advisor Basil Rajapakse, with the blessings of his elder brother President Mahinda Rajapakse.

PERC Considered Redundant
Last week on Wednesday, calling the work of the commission redundant, Media Minister Lakshman Yapa Abeywardena waived the PERC Act, stating the concept of privatisation embodied in the act was against the Mahinda Chinthana policies.

Twenty four hours later, Chief Government Whip Jeyaraj Fernandopulle also said PERC was to be shut down as it was against the Mahinda Chinthana policies. However a top PERC official dismissed Abeywardena's assertions stating PERC would in fact be the appropriate institution to implement the Mahinda Chinthana.

In fact the very spirit of the commission was to augment government revenues through better financial administration and reform contracts, and is a carefully established institution for any type of public enterprise reform, the official said.

Officials Counter Government Claim
PERC officials speaking on the grounds of anonymity told The Sunday Leader that nowhere in the act is the word 'privatisation' used. These sources also confirmed that no official communication had been made to PERC with regard to its imminent closure stating that since the commission was instituted by an act, the legislation would have to be repealed, and a resolution passed in parliament after cabinet approval.

PERC has been fiercely critical about recent controversial deals including the transfer of NTT shares in Telecom and the transfer of 49 percent shares of Hingurana Sugar Industries to a consortium, at absolutely no benefit or revenue to the government.

Contradictory Actions
The transfer of NTT shares in SLT is already before court, with Chief Justice Sarath Silva having issued a stay order against the transfer.

Ironically, while the government continues to hold that it is against privatisation as per the Mahinda Chinthana, it continues to set up private companies like Mihin Lanka Pvt. Ltd., Lanka Logistics and Technologies Ltd., and now even Weerawila International Airport Ltd. (see page 8) in order to siphon off government money into private companies, tightly controlled by the Rajapakse family and its henchmen.

PERC Brings in High Revenue
Far from dismantling PERC, the commission had earned over Rs.2000 million for the government on litigation and arbitration just last year, sources at PERC told The Sunday Leader. While there are 17 post privatisation litigation and arbitration matters currently being handled by PERC, the Pussellawa Plantation case and Lanka Marine Services Ltd. arbitration were won by PERC on behalf of the state in 2006, yielding over Rs. 2000 million.

In fact the Mahinda Chinthana waxes eloquent about the government acting as a custodian in the management of institutions and resources in order to protect the people's ownership and national assets. It also states that the management of national assets and public institutions will be done in a more professional and independent manner.

Mahinda Percival in his Chinthana also promises to manage public expenditure and subject government expenditure to constant review. However, it is constant review by the PERC of controversial share transfers instigated by his family that he now seems to dislike so much.

The Privatisation Saga
There have been 98 privatisations of government institutions of which some 45 have been privatised after the setting up of PERC in 1996. Before the formation of the Reform Commission it was the Commercialisation Unit of the Ministry of Finance that handled the subject.

At that time the Commercialisation Unit was headed by one Tissa Jayasinghe, and each privatisation was handled by the relevant ministry concerned in coordination with the commercialisation division of the Ministry of Finance. The secretary of the relevant ministry would be appointed chairman of the tender board and the head of the commercialisation unit would be a member along with others appointed by the cabinet.

In order to institutionalise and regularise these privatisations, PERC was mooted in 1994, and had the support of the World Bank and USAID as well. The Reform Commission was to be a window of communication with the government, and was to oversee under rigid supervision, the reform of state institutions.

The Objectives of PERC
The function of the commission was, according to the Public Enterprise Reform Commission of Sri Lanka Act No. 1 of 1996, to advise and assist the government on the reform of public enterprises.

The objects included fostering and accelerating economic development, improving efficiency and competitiveness of the economy, upgrading production and services with access to international markets, developing and broadbasing the capital market, motivating the private sector and augmenting the revenues of government so as to enable it to better address the social agenda.
While these objectives are enumerated in imperative and mandatory language the act also states that PERC "may make recommendations to the government on the continuation and efficiency of public enterprises which are profit making and are of national importance."

The act also states that PERC may make recommendations to the government on the selection of public enterprises for conversion into public companies under the Conversion of Public Corporations or Government Owned Business Undertakings into Public Companies Act No. 23 of 1987.

A perusal of the act will demonstrate that PERC was not set up in order to promote and implement privatisation but rather to act as an advisor and rigid supervisor to economic reforms envisaged by the government.

If Rajapakse and his two ministers had only read the Mahinda Chinthana and the PERC Act they would well know that there are no jarring provisions that do not complement each other. Rajapakse, if he bothered to read his own Chinthanaya, would find that he too advocates a national economic policy that integrates a free market economy with domestic aspirations where domestic enterprise can be supported while encouraging foreign investment.

It is to this end and working well within the ambit of its powers and functions which included augmenting government revenues that PERC roundly condemned the controversial transfer of both SLT and Hingurana Sugar Industries shares.

Orchestrated by the Rajapakses
Mind you, these two controversial deals were personally orchestrated by the Rajapakse brothers and were deals which would bring absolutely no revenue to the state despite enjoying the blessings of the Chief Executive. The transfer of 25.3 percent of NTT shares in SLT to Global Telecommunications Holdings incorporated in the Netherlands, specifically for the purpose, was to be of no benefit to Sri Lanka.

Neither was the transfer of 49 percent shares for free of Hingurana Sugar Industries with a Rs. 200 million worth distilleries licence to boot, to Lanka Orix Leasing and Brown & Company, both controlled by Ishara Nanayakkara.

That President Percival's government does not regard the rule of law is now obvious. PERC, to the Rajapakses, being determined to carry out a system of privatisation that would ensure they control through private companies, over 70 percent of state funds, has perhaps become of nuisance value. An irritable thorn in the flesh that needs to be rooted out and discarded.

What PERC said about Sri Lanka Telecom

GTH is an unlisted company incorporated recently in the Netherlands Antilles with the purpose to acquire NTT shares in SLT.
GTH shall not have any employees or CEO until the proposed transaction is completed.
GTH is an indirect wholly-owned subsidiary of Usaha Tegas Sdn Bhd (UTSB).
Question arises why GTH is incorporated recently in the Netherlands and not in Malaysia when UTSB undertook to fund GTH.
Two of the requirements for the 1997 bids were that the age of the company should be more than 25 years and should be in telecom operations for more than 15 years.
GTH is a recently incorporated company with no business operations and not even a website address is available.
That the proposed parent company UTSB posted total revenues of US$186 million and US$19 million for the fiscal year 2006 whereas the unqualified bidders in 1997 posted such revenues as high as US$4,525 million and US$ 2,118 million.
Neither is a website available for the parent company UTSB.
Though it is stated by NTT that GTH has a solid track record as a telecommunications operator with a leading position in Malaysia given that it was recently incorporated and has no employees or a CEO it is questionable to what extent NTT's assessment and recommendations are reliable.
Even though the SLT deals in fixed lines, the fixed line operation of Maxies (a part of the UTSB) is very marginal and it is strong only on mobile services.
PERC itself states in its report that even though NTT says UTSB has control equity positions in entities operating in various sectors, they have not stated whether Maxis is a direct subsidiary of UTSB.
According to NTT, the GTH claim to fame is its link to Maxis. PERC states even if this were so, Maxis itself is more a mobile operator and not a fixed line operator and therefore unsuitable to the needs of SLT.

Hingurana Sugar Industries

The government granted a 49 percent stake of Hingurana Sugar Industries Ltd. (HSIL), full management control and a distilleries licence currently worth over Rs. 200 million, to a consortium based on an unsolicited proposal that would bring absolutely no revenue to the state.
The government put forward and approved a memorandum in this regard completely disregarding earlier cabinet decisions. PERC at the time in writing stated:
They were of the opinion a fresh cabinet memorandum should be submitted as approval had been obtained for a solicited proposal pursuant to a "transparent tender procedure in this case 'on all or nothing window' of the Colombo Stock Exchange."
The concept adopted in the said cabinet memorandum is different to what is to be implemented now, which is divesting 49 percent shares of the new company to an unsolicited proposal.
Under the circumstances, a fresh Cabinet Memorandum should be submitted by you for the new restructure process.
The cabinet memo should specifically request approval to supercede the earlier cabinet decisions since there are several decisions obtained by PERC in relation to restructure of HSIL which are not yet cancelled, hence, still operative.
PERC also states it is not in a position to submit a cabinet memorandum for an unsolicited proposal.
Warns that submitting a Cabinet Memorandum for an unsolicited proposal as initiated by PERC will open up the government to litigation at a future date.

Chief Prelate Denies Comments Attributed to Him by GOSL

2007-06-25T19:17:00.000Z

According to a report in the Daily News (report), the Chief Prelates in Kandy has found fault with Mangala Samaraweera and Sripati Sooriarachchi for breaking away from government. This report also further states that the Chief Prelate of the Malwatta Chapter, he was unhappy with them and said it was "too late for them to meet him."

In this video clip, the Chief Prelate somehow seems to be welecoming the duo, and also mentioning about the pressure exerted on him to say that the actions of the President were correct. However, the Prelate says that he did not give into such requests although he was quoted as saying so in "some" newspapers.

From 7-Eleven to Defense Secretary - The Legacy of Rajapaksa Nepotism (economist.com)

2007-06-24T19:42:00.000Z

A few weeks back, I think I noted somwehre about Gatabhaya Rajapaksa's occupation in the United States, stating that rumor was he was a security manager at a grocery store. Not quite so. Turns out he was just a "manager" of a 7-Eleven store, as mentioned in the Economist magazine. The following paragraph is what the magainze had to say about Rajapaksa nepotism, while highlighting the war in Sri Lanka.

"Wary of political allies, Mr Rajapakse has appointed his three brothers to run important ministries. He has nabbed the ministries of finance, defence and public works for himself. Together, the brothers Rajapakse control over 70% of Sri Lanka's budget. The defence budget, which was increased by 40% this year, is being overseen by the unelected Gotabhaya Rajapakse. A former fire-eating army officer who spent 17 years in America, at one time managing a 7-Eleven store, Mr Rajapakse has proved as bellicose as Mr Prabhakaran and General Fonseka combined."
Full story

(video clip) Mangala Samaraweera Press Conference

2007-06-22T22:19:00.000Z

The newly formed political entity, the SLFP Mahajana Wing hosts their first press conference. Some clips as broadcast on Sirasa news.

Mr. President -- Your Slip is Showing

2007-06-22T20:34:00.000Z

True to the norm of Sri Lankan politics, we are always bombarded with empty rhetoric and presumptuous posturing by an ignorant bunch of jokers.

In this news report that I came across, SLFP senior Vice President and Minister Nimal Siripala de Silva, who can only be described as a chubby little ali-patiya, puts some of the recent developments in perspective. Reproduced below is the news report, and some reactions from LWB -- made in italics/color.

Door open for Mangala, Sripathi, says SLFP (Daily Mirror)

A day after ousted Minister Mangala Samaraweera threatened to topple the government, the Sri Lanka Freedom Party yesterday said the ‘door was open’ for the two defectors to return to the fold.
This is quite in contract to what his collegue Jeyaraj Fernandopulle said a couple of days ago. Jeyaraj said the party was "happy" that these unwanted elements who have been having secret meetings with Ranil Wickramasinghe have officially moved over to the opposition. Jeyaraj who is the Chief Government Whip, recently contradicted the Prime Minister when
he apologized for the eviction of some Tamils from Colombo.

Addressing a news conference in Colombo, SLFP senior Vice President and Minister Nimal Siripala de Silva said the SLFP was a resilient party that could take any amount of beating.

Is this why the door is still open for Mangala & Sripati?

“It commands a vast supporter-base and Mangala Samaraweera and Sripathi Sooriyarachchi are only a small part of it. They alone do not represent the party. We are quite used to this type of challenges. This is only a damp squib,” he said. He also said the ousted ministers had acted as a bull in a china shop.

I ask again, why is the party still leaving the door open for these guys if this is in fact the case? If all this is true, kick these fellows out and move on. The UNP wasn't asking or publicly saying that the door is open for Karu Jayasuriya & gang to return? In fact, it will be recalled that Karu
Jayasuriya had no option BUT leave the UNP after he was not given the Deputy Leadership position because of his unacceptable behavior.

“When you are a member of a political party you have to observe norms of discipline. You have to show political maturity by exercising restraint in word and deed,” the minister said adding that the party was capable of defeating such moves.

Exactly. This was clearly demonstrated recently when the Prime Minister first apologized for the eviction of some Tamils from Colombo, and Jeyaraj Fernandopulle later blasted the PM for doing so. In another shining example, we had the instance of a public official Gotabhaya Rajapaksa dictating the foreign policy of the government, and also finding fault with the PM publicly.

However, Party General Secretary Maithripala Sirisena warned the duo that if they continued to accuse the Mahinda Rajapaksa administration, their secrets would also be revealed. “As a political party and close friends of ours, we are not going to reveal anything about the two former ministers, but if they continue attacking the government and its officials, we would be compelled to come out with certain facts they may not find palatable,” Minister Sirisena said.

So is this an admission by the government that they are "protecting" their "friends" even if they have criminal allegations against them? I thought this government was as cleanest one ever. I'm no lawyer, and call it a wishful thinking of a retard, but this sure sounds like obstruction of justice to me.

He said he was quite confident that no government member would join the Mangala-Sripathi group which was planning to tie up with the UNP.

Sure. This is why President Rajapaksa has warned senior party members that he would be forced to dissolve Parliament if more members crossed over. Full story here. This would be another example of political leaders acting in a mature manner and speaking with one voice.

Commenting on Mr. Samaraweera’s reported apology to the country for his role in electing Mr. Rajapaksa as the President, Minister Sirisena asked whether it meant he wanted to elect UNP leader Ranil Wickremesinghe as the President of the country.

Probably, in the present context, yes. Maybe Managala's apology meant that he shouldn't have been involved in the election at all. Who knows? It's all speculation of the past.

Minister de Silva also said both Mr. Samaraweera and Mr. Sooriyarachchi were going to commit ‘political suicide.’

Aney pavu... Minister de Silva seems to be so concerned about the political future of these two blokes -- who according to him has acted like fools and have crossed over. But the question is, if the political future of these guys are over, why is Minister de Silva so worried about them, leaving the "door open" for them to return and all that. And what about that other thing Percy said about dissolving Parliament? Maybe it's the political future of these ministers that would be over if another election were to be held...

Responding to an allegation made by Mr. Samaraweera that the 18 UNP MPs who defected were blackmailed into joining the government by holding up files containing bribery charges against them, Minister Sirisena said: “This is a ridiculous allegation. What really happened was that the list of the prospective defectors was introduced at a meeting held at the residence of Mr. Samaraweera by a prominent office-holder of the UNP, who coordinated the entire exercise. This prominent UNP Parliamentarian who is singing a different tune now was among the original 19 UNPers who were to cross over to the government.”

But this is not that obvious given that Minister Sirisena earlier mentioned that they would be protecting their "friends." It can therefore be inferred that this protection would not be extended to non-friends, and if protection was needed, non-friends had to become "friends." Is it a coincidence that the names of these guys are mentioned in the COPE report, with serious
questions being raised about their activities?

Another Failed Goal: SL Stuck at 25 in Failed States 2007 List

2007-06-21T04:57:00.000Z

Sri Lanka recently ranked a dismal 25th place in the "Failed States 2007" rankings, as ranked by the Foreign Policy magazine.

Advanced economies such as Sudan, Iraq, Somalia & Zimbabwe took high honors at the top of the rankings, with Sudan leading the prestigious rankings as the most Failed State. Sri Lanka was given good competition by Yemen and the Republic of Congo who ranked 24th and 26th respectively.

Reacting to the rankings, President Mahinda Rajapaksa said that this ranking shows that the country is clearly headed towards the development goals set in the Mahinda Chinthana. "If not for the treasonic actions of a few disgruntled elements who are sympathizing with the LTTE, we would have been able to be number one" Rajapaksa is reported to have said.

When questioned about the "Asian" friends in the list, Gotabhaya Rajapaksa said that he was happy to see Pakistan in the list, and acknowledged that Sri Lanka would strive to achieve the high standards set by that country. However, he also expressed disappointment that India, China and Japan -- all considered close friends of Sri Lanka, have not made a serious effort to be in this list. "As Asian countries, it is important that we recognize the unity of our brotherhood and strive for the greater goals together. Otherwise, the terrorists win -- and that's not fair" added Gotabhaya.

Full article & rankings:

http://www.foreignpolicy.com/story/cms.php?story_id=3865&page=7

Kekille Justice, Delivered Medamulane Style

2007-06-16T21:01:00.000Z

Extracted from a speech made by Ranil Wickremesinghe at Kegalle on June 11, as published on The Sunday Leader

A Tale from Fantasy Land: The :atest Judgment of King Kekille

One day a citizen telephoned King Kekille (Kekille Rajjuruwo) and made a serious complaint. "After he came to power the cost of living has sky-rocketed and poor people like me cannot survive. Even during the Sinhala New Year, your government promised so many concessions to people which were never delivered.The prices of essential items like fuel, milk powder, bread, rice, etc., are going up every day and I cannot bear this any longer.

"The only option left is to write a suicide note and kill myself as I cannot look after my family anymore under your government." King Kekille felt very bad and pleaded with the citizen not to die. "I will find out who is responsible for all these problems and give him an appropriate punishment. Who do you think is causing this high cost of living?" the King asked. "I think this is the fault of Trade Minister," answered the citizen. So King Kekille immediately ordered the Trade Minister to come and reprimanded him. "Because of you the cost of living has gone up and poor people cannot live.

"I am going to severely punish you for this." "But sir, it is not my fault," said the Trade Minister. "This is all due to inflation and inflation is managed by the Secretary to the Treasury. It is he who should be punished." King Kekille immediately summoned the Secretary to the Treasury and gave him an earful. "It is all your fault that the inflation is high and the cost of living is going up. Poor people cannot live under these circumstances. You need to be punished." "Let me explain" said the Secretary to the Treasury."Inflation is high because I have to print money every time the Army Commander asks for more weapons."

"All this has happened because of the war he is leading." Having realised the issue, King Kekille called the Army Commander. "You are the cause for all these problems in the country.Because of this war we have to print more money and inflation is going up. Because of that the cost of living is so high, poor people cannot live.I am going to teach you a good lesson." "Wait a minute," said the Army Commander. "All these happened because your government promised to go to war with LTTE if you win. If LTTE didn't support you, you wouldn't have won."

"So this is actually the fault of LTTE." So King Kekille contacted the Norwegians and Japanese peace makers and through them summoned the LTTE. "Because you supported me to win the election now we are at war.Because of that we need to print money to buy weapons and the inflation is going up.Because of the high cost of living, poor people cannot live. I have no option left now, but to arrest all of you," he informed the LTTE leaders.

LTTE got really panicked and explained to the King:"But sir, we wouldn't have supported you, if we were not given Rs. 150 million by your brother Basil. So if you want to punish somebody you will have to really arrest Basil, who started all this."

King Kekille wanted true justice for his countrymen.So, he immediately called the police and asked them to arrest Basil, who was brought in front of the king."It is all because you gave Rs. 150 million to the LTTE, they blocked the Tamil votes in the north and allowed me to win.

"As a result we are now at war, and everything is messed up. Inflation is high and the cost of living is rising. Poor people cannot live. I have no option, but to arrest the culprit and send him to jail." "But have you forgotten I am your brother," said Basil."No one should arrest his own brother. Why don't you arrest Tiran Alles?" So King Kekille arrested Tiran Alles.

Orders to Kill... a Witness, was it?

2007-06-15T05:33:00.000Z

Defense Secretary Gotabhaya Rajapaksa, in an interview with The New York Times' New Delhi-based South Asia Correspondent Somini Sengupta has for the first time admitted that the military has been given orders to locate and kill Prabhakaran.

Meanwhile, MP Jeyaraj Fernandopulle has called for Prabhakaran to be a witness in the allegations of the Mahinda Rajapakse election campaign having financial deals with the LTTE.

Are the orders of the Defense Secretary to kill a witness or a terrorist? Perhaps this is another case of the administration suffering from Foot-in-the-Mouth.

(pic) Mahida & Tiran -- During Happier, Simpler Times

2007-06-14T22:08:00.001Z

Related Posts

Waiting for the Word of a Terrorist: Jeyaraj, Where Lies Thy Faith?

2007-06-14T21:49:00.000Z

MP Jeyaraj Fernandopulle, Chief Government Whip making a statement in Parliament has said that appointing a parliamentary Select Committee to investigate claims of monetary transactions between the Rajapaksa camp and the LTTE will depend on the statement LTTE leader Prabhakaran says regarding this.

If, Prabhakaran also makes this allegation then the government would be willing to appoint a Select Committee, according to Fernandopulle.

This is quite an interesting development on many spheres. Firstly, we have a Sri Lankan lawmaker disregarding statements from a fellow lawmaker in the same assembly, and also his party for added punch. He would rather take the word of Prabhakaran, it seems.

Great, now we can all put our feet up and wait until Prabhakaran comes strolling down to the 4th floor of the CID to make a statement. While we're at it, let's discuss this other business of Eelam over a cup of tea and a Marie biscuit, shall we?

I wonder, in keeping with this line of thinking, whether Prabhakaran has made any statement about Tiran Alles' involvement for him to be arrested. What about the media personnel who were arrested with allegations of LTTE connections? The infamous ali-koti givisuma then?

New Committee to Study IIGEP Observations

2007-06-13T22:27:00.000Z

Responding to the report of the International Independent Group of Eminent Persons (IIGEP) headed by Justice P.N. Bhagwati, President Rajapaksa is to soon appoint another commission to study the report.
The IIGEP was first appointed as a Presidential Commission of Inquiry to investigate the various allegations of human rights violations in Sri Lanka, including the abductions, murders and unlawful detention of people under trumped up charges. The IIGEP was cited by President Rajapaksa as an unbiased investigation by "prominent people" from "various countries" at various international fora, highlighting the commitment of his government towards law and order.

The recent report of the IIGEP among other things noted that the IIGEP is not "a substitute for robust, effective measures including national and international human rights monitoring" while also criticizing the involvement of the attorney general's department citing obvious conflicts of interest. (public statement from IIGEP)

Responding to this latest report, President Rajapaksa is to appoint a newer committee to observe the findings of the International Independent Group of Eminent Persons, and to investigate whether the IIGEP in fact acted in a professionally and independently as its mandate required.

The new committee, known as the Universal Autonomous Assembly of Prominent Personalities is to be appointed soon and nominations are currently being considered. Local and world leaders have reportedly been contacted by the Presidential Secretariat inviting them to nominate individuals. Some of the leaders contacted include Hugo Chavez, Fidel Castro, Pervez Musharraf, Mervyn Silva, Dick Chaney and of course, Robert Mugabe.

International Independent Group of Eminent Persons - Public Statement

2007-06-13T21:31:00.000Z

Below is the text of the public statement made by the IIGEP. The full statement including the responses will be published on LWB soon.

International Independent Group of Eminent Persons
Public Statement

On 1 June 2007, we, the International Independent Group of Eminent Persons (IIGEP), submitted our first Interim Report to the President of Sri Lanka. The report contains our observations and concerns about the President’s Commission of Inquiry to Investigate and Inquire into Alleged Serious Violations of Human Rights (the Commission).

We reported to the President that the Commission has so far made hardly any noticeable progress in investigations and inquiries since its inception in November 2006. Moreover, since our formation in February 2007, we have identified and raised a number of concerns with the Commission and the Government of Sri Lanka. We remain concerned that current measures taken by the Government of Sri Lanka and the Commission to address issues such as the independence of the Commission, timeliness and witness protection are not adequate and do not satisfy international norms and standards.

Independence: We are concerned about the role of the Attorney General’s Department as legal counsel to the Commission. The Attorney General’s Department is the Chief Legal Adviser to the Government of Sri Lanka. Members of the Attorney General’s Department have been involved in the original investigations into those cases subject to further investigation by the Commission itself. As such, members of the Attorney General’s Department may find that they are investigating themselves. Furthermore, it is possible that they be called as material witnesses before the Commission. We consider these to be serious conflicts of interest, which lack transparency and compromise national and international standards of independence and impartiality that are central to the credibility and public confidence of the Commission.

We are concerned that the Commission’s finances are managed by the Presidential Secretariat. The Commission does not have financial independence enabling it to exercise control of its human resources and operations. In particular, the Commission should be allocated sufficient funds to secure the permanent confidentiality, safety and integrity of its victim and witness protection scheme.

Timeliness: We are concerned that the Commission did not commence even preliminary investigations and inquiries until May 2007, despite being constituted six months earlier in November 2006. To date, internal processes have not been transparent; no detailed work plan has been announced; essential staff have not yet been fully recruited; investigative and witness protection units are not functioning; and significantly, evidence already known to be in the possession of Governmental bodies relating to the cases has not been gathered and transmitted to us. Such unnecessary delays undermine public confidence in the ability of the
Commission to carry out its mandate in a timely manner.

Witness protection: We are concerned that there are no adequate victim and witness protection provisions under Sri Lankan law. We are of the view that witness protection is absolutely essential in order to investigate serious violations of human rights that are within the Commission’s mandate. Appropriate legislation that accords with international norms and standards should be enacted and implemented as soon as possible to protect victims and witnesses.

We regret that the Commission still has no functioning victim and witness protection mechanism. In the absence of appropriate legislation, an effective scheme or functioning protection unit, we fail to understand how the Commission could have invited the public, as it did as recently as 14 May 2007, to come forward and give evidence. As the Commission is operating without witness protection legislation, it is unable to guarantee the safety and security of witnesses. Summoning and examining potential victims and witnesses may create fear in their minds about safety and security, deterring them from coming forward to give
evidence.

Mandates: The Presidential Warrant limits the scope of the Commission to a retrospective and fact finding role. The core work of the Commission is to obtain information, investigate and inquire into alleged serious violations of human rights arising since 1 August 2005, including 16 specific cases; and to examine prior investigations into these cases. The Commission is required to make findings and report to the President on the facts and circumstances pertaining to each case; the descriptions, nature and backgrounds of the victims; the circumstances that may have led to, or resulted in, those persons suffering such deaths, injury or physical harm; the identities, descriptions and backgrounds of the persons and groups responsible for the commission of deaths and other acts; measures of reparation to be provided to the victims; and ecommendations in order to prevent the occurrence of incidents in the nature of those investigated and any other recommendations considered as relevant.

The IIGEP, comprising of 11 Members, has been invited by the President to observe the investigations and inquiries of the Commission, in order to ensure transparency and observance of international norms and standards. The IIGEP does not have a mandate to conduct independent investigations and inquiries; nevertheless, we are open to all persons who wish to provide information and evidence on the cases under review by the Commission.

Although we are obliged by the Presidential Invitation to transmit third party information to the Commission, it would not be right for us to disclose any information without the consent of the third party, or which may impair the safety or security of such third parties until we are satisfied that effective, functioning and credible witness protection measures are in place. We regret that public statements from State officials are creating the misleading impression that the Commission and IIGEP have wide mandates and powers and the resources to address ongoing alleged human rights violations in Sri Lanka. This is not the case. In the current context, in particular, the apparent renewed systematic practice of enforced disappearance and the killings of Red Cross workers, it is critical that the Commission and IIGEP not be portrayed as a substitute for robust, effective measures including national and international human rights monitoring.

P N Bhagwati
Chairman, IIGEP

Foot-in-the-Mouth Disease: Hallmark of the Rajapaksa Administration

2007-06-13T04:47:00.001Z

If not the grandstanding and the often mutually exclusive rhetoric thrown about prior to the Presidential elections didn't make you giggle, I am pretty sure that the recent developments in the Rajapaksa-administration sure does. If it has not, maybe you need some giggle-juice courtesy Wimal Weerawansa.

Let's take a look at the recent "eviction" saga and everything else that followed.

People were rounded up and sent packing to the north, resulting a huge outcry from various groups.
When questioned in Parliament, defense spokesman Keheliya Rambukwella says that the people left "voluntarily," and that there was no "eviction."
Supreme Court inter intervenes and stops the whole exercise.
As criticism mounts, President Rajapaksa no less says that the action was wrong, ordering an investigation into finding out who was responsible for initiating such a plan.
Next, Prime Minister Ratnasiri Wickramanayake expresses deep regret and said it should not have ever happened in the first place. Also finds fault with the police for not checking with the people involved whether they in fact wanted to go or not.
The Sunday Leader exposes that the whole exercise was the idea of defense secretary Gotabhaya Rajapaksa, publishing the official memo of the police.
Gotabhaya defends the whole exercise saying that "anything is fair" when fighting the LTTE. In the same interview with BBC & Reuters, the defense secretary says -- "Without understanding the problem, they are trying to bully us, and we won't be isolated. We have all the SAARC countries, the Asian countries," he added. "Britain or Western countries, EU countries, they can do whatever. We don't depend on them."
Jeyaraj Fernandopulle, the chief government whip then makes a statement opposing the statement of the Prime Minister, saying it was uncalled for and that it affects the moral of the security forces.

That's where things stand at the time of drafting this post. The question that of course pleads an answer in such circumstances is what is the government actually saying? Here we have a situation where four top officials saying essentially four different things.

would like to know what Asian countries are specifically "with us -- no questions asked." It might do a world of good for the good secretary to realize that India was thoroughly annoyed with this eviction issue, with the PM of India even saying that he "hopes better sense will prevail" (story) in Colombo. Surely, he has also not forgotten the concerns expressed by India regarding the ongoing military operations and the need for "meaningful devolution of power." Also, wasn't there some Indian chap saying something about how Sri Lanka should not be shopping for arms in Pakistan and China?

What about Japan then? They are not so gung-ho about everything in Sri Lanka either, with the continuous aid only because of the long-standing friendship and goodwill between the two countries (thanks, JR!). However, even Japan in giving aid reasoned that they do not want the people to pay for the bungling of government.

Hypocrisy of the West or not, I don't think the defense secretary telling them off and banking a 100% on Asian-support is a good path to tread. For if not anything else, he's got to go back "home" to California, right? And I'm sure he wouldn't want to be evicted out of his home in California just because the Sheriff in town thinks he's got "no business" being there.

In conclusion, I think what we are left with at the end of the day is a government that lost at sea with no wind on its sails. While the empty rhetoric and grandstanding might attract a whistle or two from the gallery, the lack of strategy and a holistic view and appreciation of international relations has sunk Sri Lanka to the lowest ebb since the riots of the 80's, undoing in the process the hard work of people such as Lakshman Kadirgamar.

Victor "AFNS" Perera Eats Humble Pie as Political Masters Distance Themselves

2007-06-10T20:42:00.000Z

In the latest developments of the whole "eviction" saga, the Prime Minister has indeed expressed regret and accepted responsibility for the unfortunate event, while saying that such incidents should not be repeated in the future. Kudos for this admission -- fingers crossed about the "investigation on who is behind the directive" though.

Proving true the claim onLWB that Victor "All Fart No Shit" Perera is capable of swallowing any punnaku soup the political masters have distanced themselves from his words, according to this piece appearing the Daily Mirror:

While rejecting Police Chief Victor Perera’s claim that the Tamil dwellers had left the lodges on their own accord, the Premier said, “Police had asked from them whether they want to go or not only after they were taken to Vavuniya and not while they were in Colombo.” [full story]

Why oh why we're wasting our tax money and heavy debt on these jackasses, I have no idea!

Financial Times: Why is Business Silent (About Corruption) ?

2007-06-10T17:26:00.000Z

Source: Financial Times

Why is Business Silent?

Every Monday morning, most Sri Lankans wonder what’s in store for them. Rather than look at the week ahead with a lot of vigour, vitality, drive and passion, we have become a nation of what one would call the “what next or so what” mentality.

Never a day passes without distressing news on the warfront of combatants dying on either side of the fence. But that doesn’t worry too many people. “Why bother” is the commonly accepted expression.

The biggest news to hit us and trigger the “why bother” response was the alleged involvement of Treasury Secretary Dr P.B. Jayasundera in the alleged financial deal that President Mahinda Rajapaksa had with the LTTE prior to the election. If this is true – and the Treasury Secretary hasn’t denied the report – it is the first time that a high powered official from an important ministry has been implicated in such a transaction.

Civil society was appalled by this development and in any other developed society the accused would have quit and defended his innocence, if that was the case, outside. But in the Sri Lankan case, the Treasury Secretary appears to have chosen to ignore the report. However, shouldn’t he clear his name?

On the other hand the politicisation of ‘permanent’ secretaries is not new. It happened during President J.R. Jayewardene’s time, followed by Ranasinghe Premadasa, Chandrika Kumaratunga and now Mahinda Rajapaksa. So in this sense, it’s a follow the leader kind of exercise. But shouldn’t this kind of behaviour stop and parliament be called to review the role of the permanent secretary?

The high priests of the business community are also a pathetic lot – choosing to ignore or only raise concerns of the state of Sri Lanka in private. The Chamber of Commerce (CCC) statement this week was a weak attempt to draw attention to the growing crisis in Sri Lanka.

There were two massive business conferences – the CCC’s economic summit and the CIMA Business Summit. But these chose to sidestep or ignore the crises with probably some passing reference if it came to economic stability. The business community came with all guns firing in 2001 when its bottom-line was hit after a series of LTTE attacks (Colombo airport and oil refinery) and a crisis in US markets for garments.

With profits sharply down, some groups within the CCC came together to launch the Sri Lanka First initiative with a massive ‘hold hands for peace’ involving close to a million people across Sri Lanka being the focus of attention. It was the biggest display of private sector involvement in a non-business but political issue.

What has happened to that initiative – at a time when business desperately needs some leadership and direction to ensure that the fighting ends and peace talks resume? US Ambassador Robert Blake was among those who this week said there was an urgent need for a negotiated settlement to the war and noted how much had been lost in terms of investment due to the conflict. His audience – top business leaders; any discussion on this issue? As far as we know, NO. At the same time as these conferences were taking place, hundreds of Tamils were being bussed out of the city against their will!

While the crises and uncertainty increase, lopsided government policies are not helping even those who choose to invest. For example local companies that have invested in mini-hydro and dendro power projects are coming up against a wall of bureaucratic processes that would deter any foreign investor.

The approvals are so numerous that companies have spent months in going from desk to desk at some government office trying to get the project off the ground.

These are national projects intended to ease the acute power crisis plaguing this country. While this ‘harassment’ goes on, Power Minister W.J.M. Seneviratne in a statement this week spoke of a major power crisis and warned of power cuts in the future!

Aney Manda Sarath!!

2007-06-09T01:02:00.000Z

Percy : Aney manda Sarath, what do you think you’re doing?
Sarath : errr… what now?
Percy : What do you think you’re doing, stopping the Tamils from being evicted?
Sarath : My job, perhaps?
Percy : Righttt… so you are doing your “job” now, all of a sudden.. You’re making life difficult for me
Sarath : ea kiwwe?
Percy : This is not the first time you’ve ruled against my government. First you went and gave that Brigadier a promotion. Then you said brother Gota doesn’t have the authority to close down Tiran’s business… and now this… What the…
Sarath : Watch your language Percy… I’ll hold you in contempt…
Percy : Aney mey… umbei magei contempt!!
Sarath : Percy, listen now. You can’t be acting like a bull in the china-shop just because you’ve got the brains and the balls to match. You’ve got to get about these things in rather diplomatic way…
Percy : bull in the mokak?
Sarath : Son – look, I helped you double cross the lady and eventually land in this job. And now that WE are here, it’s important to stay here. What these idiots was doing was about to create a major international condemnation against us…
Percy : Condemn karanna accident ekak uney naa ne… Ceylinco VIP eken gevai
Sarath : Gono…
Percy : Yes?
Sarath : Mung karapu booru wade nisaa api thava podden nombara eke parippuvak kanava. Umbata mathaka nedda Indiyaaven baapu parippu packet?
Percy : Appata hudu – aththa thamai… Mata danui therune… Machang, umba nang deiyyek Sarath. Honda velaavata navaththuve!
Sarath : Yes. I have set the stage for you… Now all you have to do is blame some idiots and wash your hands off the whole incident
Percy : Righttt… Mata innava nombara ekey porak – ekata ona punnakku soup ekak powanna puluwan.
Sarath : Kawda pora?
Percy : Victor Pada-Show Perera… Mama oota poddak benala, inquiry ekak daanang… ethakota okkoma hari!
Sarath : Hmmm… sounds ok
Percy : Ehenang mang gehin ennang… Bohoma isthoothi machang support ekata!
Sarath : Shape shape… api passe balaagamuko…

My Apologies to the Tamil Community

2007-06-07T23:08:00.000Z

As ashamed as I feel right now, I would like to extend my sincerest apologies to the entire Tamil community who are suffering from the irresponsible, unconscionable and blatantly racist behavior of the Sri Lankan government.

The rounding-up of Tamil-speaking people, who, being Sri Lankan citizens apart, "had no good reason to be in Colombo" and herding them off to northern areas of the country is not only a violation of basic human rights, morality and a dereliction of duty of a responsible government, but an ample demonstration of apartheid-policies of an increasingly racist Sinhalese government.

While I understand that security concerns are real and present, there are appropriate ways and means to fight those -- including the dreaded emergency regulations that have been used with good effect over the last twenty-odd years. What is the point of fighting to "protect the constitution" and the "sovereign state" when a government cannot guarantee its citizens the most basic, the most fundamental, and the most needful of rights? In my opinion, everything else in such a situation takes a secondary role.

However, rounding up of people like this based on the sole criteria of race marks a new low in this conflict that has marred post-independent Sri Lanka. This incident goes beyond the riots (they were done by mobs), and the massacres at Sri Maha Bodhi and the bombing at Dalada Maligawa (they were done by "terrorists").

This time around however, the most shameful of actions are done by none other than the official government, the officers of the law, and the defenders of the citizenry in collusion.

Today, I stand ashamed than ever before for the actions of our government. Today, I extend my heartfelt sympathies to the Tamil community the world over for the shameful actions of our government. And today I stand convinced than ever before that the struggle for Tamil Eelam is thus justified even to the most ignorant observer -- our Sinhalese governments just don't understand.

Beating a Dead Horse: Names Named as State Sponsored Abductions Continue Unabated

2007-06-07T05:35:00.001Z

This probably is truly beating a dead horse, but beating it must be done (lest the horse does not drink the water it was lead to). It started with abductions of Tamil businessmen, and extended to the Muslim community, and has now made the transition to the Sinhalese as well.

What is all the more shocking -- no wait, I take that back. What is all the more interesting is the little or no effort done by the authorities to stem these recent developments. The little or no effort, however, can be attributed to the growing perception that the government and the security forces are indeed behind these activities.

Accusations are made directly at top government personalities by none other than coalition partner JVP and the main opposition party, the UNP. Such accusations, were made formally during the emergency debate in Parliament by JVP MP Ramalingam Chandrasekaran and UNP MP Laxman Seneviratne.

One instance that seems to directly implicate highly connected officials include a recent abduction in Kandy, where a businessman was lured in with an apparent meeting with a prospective client. The folks who called in the ransom has assured the "delivery-person" safe passage all the way to Kandy from Colombo, without questions being asked at security check-points.

Among the accused for direct involvement of abductions, demands for ransom and murders are government spokesman Keheliya Rambukwella, Mervyn Silva, Colombo DIG Rohan Abeywardane, former Air Force squadron leader Nishantha Gajanayake, and defence secratary Gotabhaya Rajapaksa.

Mr. Victor "All-Fart-No-Shit" Perera, in the meantime continues his tough-talking to the media while the public in general lives on with nothing but a sense of fear to look forward to.

Reproduced on LWB is a clip of AFNS Victor Perera talking to the media, around the 20th of May.

Hora-Police Investigations -- The Lifeblood of Sri Lankan Justice

2007-06-06T04:53:00.001Z

Scotland Yard is apparently descend once again to Sri Lanka, for the umpteenth time, to investigate yet another murder. This time, the two workers of who worked for the Red Cross.

Percy Mahinda has given the Police seven days to come up with "vital clues." However, considering all the murders, abductions, violations of human rights, arrests, and unlawful detentions that have come to define Sri Lankan life over the last two decades, I think there would be some questions we should do well to ponder. When I say "we" I mean anyone who fancies a conclusive investigation in to all this, including the ICRC & UN.

How many murders have occurred in Sri Lanka over the past 20 years outside the "operational areas"?
How many Presidential, Ministerial and Judicial instructions have been issued in those instances to conduct "independent, impartial investigations notwithstanding the status, reputation or influence of the suspects concerned" ?
How many of those investigations have been concluded?
How many convictions has there been?
How many convicts have gone to jail?
How many times has the Sri Lankan government invited "foreign experts" to help investigations? Were these invitations extended officially, and were they allowed to come and do their work?

It would be good to remind ourselves that the brutal murders of President Premadasa, and people like Gamini Dissanayake, Lalith Athulathmudali, Lakshman Kadirgamar to name a few high-profile cases are still not concluded. While the LTTE is suspected, they have never been brought to court. However, the LTTE leaders have been convicted in India for the murder of Rajiv Gandhi.

Some other cases off the top of my mind include the assault / shooting at Lasantha Wickramatunge, Sirasa TV, Rookantha, and the recent murder of Ven. Handungamuwe Nandarathana Thero.

So, Percy Mahinda and Victor "All-Fart-No-Shit" Perera can do all the posturing they want, but I certainly wouldn't, and would recommend others too, to not hold their breath in anticipation.

Justice Prevails in the Arrest of Tiran Alles

2007-06-04T04:26:00.000Z

"Accursed be he who plays with the devil."

A fair bit has been said and written about the arrest of Tiran Alles, the apparent mastermind of the Rajapaksa coup-de-tat against the Republic of Sri Lanka, vis-a-vis the Presidential election of 2005. The assumption of this post is that the reader is well aware of the basic facts behind the story, as published by the popular media in Sri Lanka.

Although the circumstances under which Tiran Alles has been questioned and arrested is indeed questionable, I am of the view that it is indeed justified. Furthermore, I see this as a rare occassion where the Rajapaksa administration, has delivered justice.

Tiran Alles has by his own admission stated that he indeed held discussions, and dealings with the Liberation Tigers of Tamil Eelam to ensure a "favorable outcome" during the election. This was done apparently under the instructions of them Prime Minister and Presidential candidate Mahinda Rajapaksa. The thought to ponder is, why-oh-why did Tiran Alles chose to engage in such blatantly illegal, unethical behaviors.

Such behavior, apart from being illegal and unethical, is in my opinion treason committed agasint the state -- where one engaged in activities to circumvent the will of the people. The fact that he was under the instructions f Mahinda Rajapakse or a close associate of Mangala Samaraweera is no excuse. While the fact that they, too, should be tried for the same crimes is an obvious fact, the point is for whatever reason they are not.

I can't really understand why Tiran Alles is playing the victim here, or how anyone can with a straight face say that he is. The only thing Tiran & Mangala can complain is that Mahinda Rajapaksa is not willing to turn a blind eye on the dirty work they have done. If he so chose to prostitute his ethics and morality, contrary to the strict discipline his father instilled in his students, then it is indeed upto him to face the consequences.

So, stress or no-stress Tiran Alles had better be prepared to pay for the crimes he committed. If he is about to take the other associates down along with him, so be it -- more the merrier. I hope the United National Party will not go out on a limb to save this traitor, but would rather focus its efforts to expose the true nature of the entire deal and expose everyone involved in this shameful affair.

"Accursed be he who plays with the devil."

Dancing with the Devil: Alles Misses a Step

2007-06-03T20:36:00.000Z

Two days before the arrest of Tiran Alles a letter was sent to IGP Victor Perera by Attorney at Law Neville Abeyratne which outlines the motives behind the TID investigations. This letter, which was published in the Sunday Leader is reproduced here for those who are interested.

I write on the instruction of my client Mr. Tiran Alles of No 345/33, Kuruppu Lane, Colombo 8, who is presently receiving treatment at Nawaloka Hospital, Colombo.

I have been instructed by my client to state that you will recall that during the last three months, my client has at all times presented himself when required to make statements. My client has made statements on several occasions to you voluntarily and readily.

I have been instructed by my client to state that my client voluntarily made a visit to the TID for a meeting with SSP Wakishta on the 19th of April 2007.

I have been further instructed by my client to state that at no time between 30th March 2007 and 20th May 2007 was my client asked to make any statement.

I have been instructed by my client to state that my client may point out that it was in this period that high level negotiations were proceeding in order to induce Hon. Mangala Samaraweera to join the cabinet.

I have been instructed by my client to state that on 16th May 2007, Hon Mangala Samaraweera refused to join the cabinet.

I have been further instructed by my client to state the very next day (17th May 2007) a team of officials from the TID visited my client's office in order to carry out investigations. They spent almost six hours in my client's office.

I have been instructed by my client to state that on the following day (18th May 2007) my client's accountant was called to the TID for questioning. That same evening my client was contacted by IP Abeysinghe and was requested to be present at the TID on the following day to give a statement.

I have instructed by my client to state that my client informed the TID that both his children were sitting important examinations (the son was doing Advanced Level and the daughter was doing Ordinary Level) and that the son was having high fever and was very worried about my client being summoned again. My client therefore, requested that he be allowed to make a statement on 21st Monday. This request however was not accepted and he was asked to make a statement on 20th May 2007 (Sunday). He was at the TID on this day for over four hours.

I have been instructed by my client to state that my client has always been a close associate of Hon Mangala Samaraweera.

I have been further instructed by my client to state that my client is being harassed due to a political fall out.

I have also been instructed by my client to state that my client is presently hospitalised at Nawaloka Hospital, Colombo. On 24th of May 2007, SSP Wakishta, CI Prasanna Alwis and two others had visited my client at the hospital. On 27th May 2007, SSP Wakishta and SSP Kapila Jayasekara had visited my client at the hospital. I am made to understand that my client had been receiving telephone calls practically everyday from the investigating offers inquiring as to whether he is still receiving treatment.

I have been instructed by my client to state that at all times it was indicated to you that my client was willing to make statements from hospital when he was well enough to do so. My client is ready and willing to make any statements from hospital at a time when he is well enough to do so.

I have been instructed by my client to state that you will appropriate that my client cannot be discharged from hospital without the consent of his medical advisors. My client is diagnosed to be having Angiooedema which is stress related where an attack can be fatal.

In these circumstances I have been instructed by my client to reiterate that my client is willing to make statements at my time to assist your so called investigation though my client does not accept your bona fides.

I have been instructed by my client to state that my client cannot, however leave the hospital as he is medically advised not to do so.

Copies to
1. Deputy Inspector General,
Criminal Investigations Department, (CID)
4th floor, New Secretarial Building,
Colombo 1.

2. Deputy Inspector General,
Terrorist Investigation Department (TID)
Chaitiya Road, Colombo 1

3. Deputy Inspector General - Legal,
Police Headquarters, Colombo 1

4. SSP Wakishta,
Criminal Investigations Department, (CID)
4th floor, New Secretarial Building,
Colombo 1.

Royal Jester Mervyn Silva Does Kelaniya

2007-05-29T01:42:00.000Z

Enough said, ne? Fools tend to speak for themselves.

Inside Story of the Telecom Deal

2007-05-26T22:52:00.001Z

The expose done by Sonali Samarasinghe is rerproduced here, in the interest of readers who do not have access to either print or electronic publications of The Sunday Leader... A related report was also published in The Sunday Times

Inside Story of the Telecom Deal - by Sonali Samarasinghe

Controversy surrounds the sale of Sri Lanka Telecom (SLT) shares purportedly to a Malaysian company, orchestrated by none other than President Mahinda Rajapakse himself, with allegations highly placed individuals stand to gain from the pointless private transfer that would bring no revenue to the state.

With even top government officials and politicos surprised and silenced by the audacity of the Rajapakse clan, allegations also abound President Rajapakse forced NTT to sell out a large number of its shares to a company of his choice.

In fact when NTT Communications Chief Suzuki, former CEO Shuhei Anan and CEO Shoji Takahashi were to pay a courtesy call on President Rajapakse last year during a visit to Sri Lanka, they were in for a rude shock.

Unimpeachable sources told The Sunday Leader Rajapakse had inquired of the NTT team if they had plans to sell the shares. On receiving a negative answer Rajapakse allegedly strongly advised them they should sell their shares and followed this advice by triggering off a series of unfortunate events that eventually forced the hand of NTT.

Forced to Sell
Following Rajapakse's advice to sell and leave, NTT were allegedly subjected to harassment that included arbitrary decisions on hiring and firing SLT personnel by the government, and decisions on certain issues taken over the head of the NTT appointed CEO in violation of the management agreement. SLT CEO Takahashi was out of the island and couldn't be contacted.

With a disgusted NTT now willing to sell its shares in SLT, all President Rajapakse had to do was table a cabinet memorandum and gain cabinet approval. This he easily did by his curious style of 'one a minute' without even consulting the minister in charge of the subject, Rauf Hakeem.

Even a blue chip company like John Keells that showed an interest in getting into the business could not get a look in for reasons that will not be gone into here because of the fears entertained by its top management.

The controversial deal between GTH and GOSL is expected to be closed this Thursday, May 31 according to documentation in our possession.

GTH a Green Horn
The sale is to be made by NTT to Global Telecommunications Holdings (GTH), a company recently incorporated in Netherlands solely for the purpose of buying out a large chunk of NTT shares in Sri Lanka Telecom. It is to be done contravening sale conditions including that a company doing so must have been established for a minimum 25 years and have at least 15 years experience in telecommunications. GTH is hardly a few months in existence without a single employee in its pay roll.

That the Public Enterprises Reform Commission (PERC) no less has raised eyebrows at this deal in written comments speaks volumes for the behind the scenes goings on.

The present shareholding structure has the government with 49.5 % shares, NTT with 35.2 percent and the public representing some 28,000 shareholders with 15.3 percent.

The present deal is for NTT to divest 25.3 percent holdings to GTH leaving a minority stake of 9.9 with them.

Allocation of Directors
The question naturally arises why NTT will sell only 25.3% and hold on to 9.9%. The answer is simple. In terms of the termination clause in the current shareholders agreement signed in November 2002 between NTT and the government, the agreement lapses if the shareholding of either party drops below 10 per cent and therefore to give GTH full management control, NTT's stake must drop below the magical 10%.

Furthermore for every 10% of shares held a shareholder is entitled under the current Shareholder Agreement to one director and if there is a part thereof over 5% again the shareholder is entitled to one director.

Technically however if NTT holds less than 10% they are not even entitled to a director on the board. However GTH with 25.3 % shares will be entitled to four directors in terms of the deal struck with the President, and the government with 49.5 % will be entitled to five directors.

However nowhere in this agreement did it state that if NTT wanted to sell its shares it had to get prior approval from the Government of Sri Lanka.

Coming Events Casts their Shadows
There is of course another consideration. If perchance at a later date GTH is able to buy the remaining NTT shares (possible under the new Draft Shareholder Agreement in terms of the exit clause) bringing their share of this high profile public quoted company upto 30% then they would trigger the mandatory provisions of the Takeovers and Mergers Code and will have to make a mandatory offer to the rest of the shareholders. GTH can therefore easily increase its share in this national asset.

However the government in reality holds well over 50 % of the shares with the Treasury owning 49.5 % and small percentages held by EPF 1.98%, Bank of Ceylon 0.27% etcetera from the 15.3 percent. Therefore with the annulment of the existing Shareholder Agreement and management contract with NTT which would come into effect upon the share transfer, the government has the opportunity to take back full control of Sri Lanka Telecom - especially as many of the SLT officials themselves had gained enough managerial and skills experience during the NTT period of control.

But that is not to be and therein lies the multi million dollar question.

Instead Rajapakse has opted to have NTT transfer 25.3 percent to a company that compared extremely poorly with NTT in terms of management skills and commercial performance and grant full management rights.

Ironically it is Mahinda Rajapakse, who came to power on a bhoomiputra anti privatisation platform in keeping with the policies of the Marxist socialists that now single handedly closes the deal with GTH and paves the way for it to take full management control. Mind you the new company is entitled to a TV channel - a privilege not afforded to NTT - all for just a 25% stake.

Maxis of Malaysia, the name bandied about in the media as being the company buying into SLT is in fact far removed from GTH in the company family tree, though closely connected if not in terms of assets in terms of key personnel.

UNP Vows Action
The UNP has already vowed to take action to get the government to come clean with UNP Parliamentarian Lakshman Seneviratne calling it the country's biggest fraudulent deal. Seneviratne last week told The Sunday Leader Basil Rajapakse is allegedly involved in the deal and 'everybody knows what that means.' He also said the UNP was investigating allegations that the LTTE had links to GTH and Maxis Telecom.

Meanwhile last Tuesday Rajapakse ally and JVP Parliamentary Group Leader Wimal Weerawansa accused a 'powerful person in government' of accepting a US $ 10 million commission to facilitate the sale of SLT shares to a Tamil businessman from Malaysia.

Hundred Million Smackers
The talk in the market is that the broker of the deal will make more than US$ 100 million.
Connected to GTH is one Augustus Ralph Marshall, a Malaysian of Sri Lankan Tamil descent from Jaffna, who interestingly was in Japan recently at about the same time Basil was on an official visit to Japan.

Maxis of Malaysia is controlled by a wealthy Malaysian tycoon, Ananda Krishnan Tatparanandam who is also of Sri Lankan Tamil descent, hailing from Jaffna. He is said to have an indirect holding of 47.05 % of Maxis. The reclusive Krishnan whose net worth is estimated at some US$ 4.3 billion has interests in oil, power, entertainment, property and gaming.

The website www.boi.lk/famous/ananda.asp states the 68 year old made his fortune from property, gaming and oil trading and was looking to position himself as South Asia's communications baron.

Gaming
Though Krishnan's first entrepreneurial venture was in oil trading he quickly moved on to gambling in Malaysia and a quarter of his wealth comes from the gambling business, lottery, horse racing and wagering.

Be that as it may, the cabinet paper to approve the share sale was signed by President Rajapakse and presented in March while Minister of Ports and Telecommunications Rauf Hakeem had earlier claimed he was not even aware of the contents.

Although on Tuesday Weerawansa called on Treasury Secretary P.B. Jayasundera to take responsibility for the deal, on Wednesday, Jayasundera washed his hands off the deal stating it was a private sale between NTT and Global Telecommunications Holdings and the Treasury would get involved only with regard to the management contract. The facts below will prove otherwise.

Furthermore economic experts told The Sunday Leader Sri Lanka Telecom is a high profile public quoted entity that is also regulated and therefore it is unusual the sale of shares was not informed to the large number of public shareholders.

One cannot merely decide to sell off a large number of shares bypassing the market place and at a price one wants, as the share is already public. Sources at the Colombo Stock Exchange said such shares will have to be traded on the floor of the exchange.

Tiger Talk
Meanwhile posters accusing the government of selling Sri Lanka's premier stock to Tiger operatives have blistered the walls of Colombo even as former presidential confidant and cabinet minister Sripathi Sooriyaarachchi earlier accused President Rajapakse of having struck a deal with the Wanni terrorist group during his election campaign. It is in this backdrop that the deal to sell the high profile SLT shares have to be viewed.

And it is in this backdrop The Sunday Leader now investigates this deal. Here are the details.
Let's start at the beginning for sake of clarity.

Cabinet approval was granted on July 31, 1997 to divest 35% of shares in Sri Lanka Telecom at the value of US$225 million together with the management of SLT to Nippon Telegraph & Telephone Corp. (Japan). (NTT)

The selection of the strategic investor was conducted through a competitive bidding process and the Technical Evaluations Committee at the time evaluated the bids on a set of strict criteria including

a minimum 25 years of establishment of the company,
minimum 15 years in telecom operations,
more than 7000 employees to be engaged in telecom marketing in a single market,
More than one million main telephone lines in operation in any single market
10 per 100 teledensity in any single market,
more than 20,000 public phones including those operated by a subsidiary company

Accordingly NTT was selected and 35 % shares divested under a set of divestiture conditions that included that GOSL shall retain 51% of the shares and the investor shall retain at least 20% of the shares during the first five years, the rationale being that minimum ownership requirements will safeguard the GOSL and public as well as management interest.

It was also a condition that after five years the GOSL and the investor may sell their shares, with first option offered to either party; the rationale being that the shares held by the investor is not transferred to a party not approved by the GOSL.

On November 13, 2002 a new shareholder agreement was signed between the Government and NTT under the UNP administration giving certain rights to both parties with no clause calling for the NTT to obtain approval for a transfer of its shares to another party.

However the proposed draft shareholder agreement to be finalised end May between GTH and GOSL is alarming in that it is extremely wide in scope and confers a great deal of power to GTH.

But More on that Anon
Now let us focus on recent events that led the Rajapakse family down this particularly dangerous path.

In 2006 President Rajapakse forces the hand of NTT Japan and a series of events related to the management of SLT compels NTT in disgust to take the path of least resistance and agree mildly to sell out a large number of its shares.

Meanwhile interestingly enough Basil Rajapakse visited Japan in the third week of February to brief the Japanese government on the current political situation in Sri Lanka, bypassing Foreign Minister Rohitha Bogollagama. Curiously in Japan at about the same time is one Ralph Marshall, the key player in Global Telecommunications Holdings.

NTT Letter
With Rajapakse forcing NTT to bend to his bidding, on March 14, 2007 Vice President of Corporate Planning, NTT Communications Corporation, Jun Sawada wrote to Treasury Secretary P.B. Jayasundera providing him with a profile of Global Telecommunications Holdings NV (GTH) along with their assessment and recommendation.

The letter states, "GTH is a special purpose investment vehicle incorporated in the Netherlands Antilles and is an indirect wholly owned subsidiary of Usaha Tegas Sdn Berhad (UTSB). Given that GTH is an unlisted special purpose vehicle set up to acquire our NTT Communications Corporation (NTTCom) stake in Sri Lanka Telecom (SLT), it shall not have any employees or a CEO until the proposed transaction is completed. UTSB shall fund GTH to meet its obligations under the terms of the proposed transaction. Currently Mr. Ralph Marshall (director of UTSB) and other UTSB group executives are managing GTH."

What is UTSB
This letter copied to Ralph Marshall is vital in that it gives details of GTH and its parent company UTSB. The letter informs that UTSB incorporated in Malaysia is an investment holding company with control equity positions in entities involved in telecommunications, broadcast and media, energy, commercial property development and leisure, and entertainment.

In the 2006 fiscal year UTSB both as a group and parent company posted a total revenue of US$186 million and US$ 19 million respectively and a net profit of US$161 million and US$ 16 million respectively. Total assets in the year ended 2006 as a group and parent were US$2.7 billion and US$1.2 billion and total shareholders' equity as a group and parent was US$1.9 billion and US$1.1 billion respectively.

There are four publicly listed companies namely, Maxis Communications Bhd (Maxis), Astro All Asia Networks plc, Tanjong plc and MEASAT Global Bhd.

NOTE: PERC itself states in its report that even though NTT says UTSB has control equity positions in entities operating in various sectors, they have not stated whether Maxis is a direct subsidiary of UTSB.

In fact a look at the corporate structure (see elsewhere on page) clearly shows it is not.
PERC also points out the following with regard to the revenue of the companies as stated in the letter:

With regard to UTSB as a group and a parent company posting US$186 million and US$ 19 million respectively for 2006, PERC points out that the revenues of the unqualified bidders in phase 1 of the 1997 bids posted far higher revenues as far back as 1996 and 1995 with Hutchison Telecom posting US$ 4,525 million and Malaysia Telecom posting US$2,118 million.

Even with regard to UTSB assets PERC points out that the total assets of the losing bidders in 1997 was far higher, some as much as US$ 16.3 billion

What is Maxis
Maxis claims in its website to be Malaysia's leading telecommunications company with more than 13 million subscribers that offers a portfolio of voice and data services across wireless, fixed line and internet platforms. According to the NTT letter, Maxis revenues in 2006 before tax, depreciation and amortisation was US$2.2 billion and Maxis has acquired a 51 % stake in PT Natrindo Telepon Selular (NTS) Indonesia and a 74% stake in Aircel India.

However the only connection GTH has with Maxis is that it is a totally separate company in a large corporate structure (see box). The relationship is so far removed Maxis will almost certainly have no dealings whatsoever with GTH.

Nevertheless, the NTT Vice President in his letter to the Treasury Secretary states, "Having had extensive discussions with GTH, we feel confident that GTH could enhance the existing partnership between GOSL and NTTCom. GTH has a good understanding of NTTCom's role in the development of SLT and is supportive of our objectives in Sri Lanka. Further GTH has assured us that they will be able to meet the expectations of GOSL."

Sawada also states "We believe that GTH by having Maxis as one of its group companies, has a solid track record as a telecommunications operator with a leading position in Malaysia and strong mobile operations in India and Indonesia." (See elsewhere for copy of letter.)

PERC Piqued
PERC dismisses the NTT assertions on the suitability of GTH with one fell sweep. Commenting on the NTT letter PERC points out that the same letter in only its second paragraph has stated that GTH was incorporated recently in the Netherlands Antilles and GTH has no employees and CEO.

"It is questionable," says PERC, "as to what extent NTT's assessment and recommendations are reliable.

Therefore it is clear that GTH is an unlisted company incorporated hurriedly and recently for the sole purpose of acquiring NTT shares in SLT, will not have any employees or a CEO until the transaction is complete and is an indirect wholly owned subsidiary of UTSB. According to the NTT letter GTH will also be funded by UTSB to meet its obligations under the terms of the proposed transaction.

So pray why was President Rajapakse's personal choice, GTH, incorporated in Netherlands Antilles and not in Malaysia since the parent company UTSB that has undertaken to fund GTH is a Malaysian company?

It must be noted that GTH also has no business operations nor a CEO and does not have any employees or an address in the Netherlands. Its letterhead gives a c/o Menara Maxis address in Malaysia.

Nevertheless on March 21, 2007 cabinet approved President Rajapakse's Draft Memorandum on 'Sale of Shares of Sri Lanka Telecom Limited belonging to NTT Communications Corporation to Global Telecommunications Holdings NV' and the decision was communicated to the Treasury Secretary.

On March 27, 2007 President Rajapakse tabled a cabinet memorandum as Minister of Finance.
Which stated inter alia that;

1) NTT has sought consent from the Government of Sri Lanka (GOSL) to a partial divestiture of its stake in SLT to Global Telecommunications Holding NV (Malaysia)
Note : However GTH is not even incorporated in Malaysia
The memorandum also states,
2) That SLT is currently a public listed company managed by NTT in terms of the Shareholders Agreement between NTT of Japan and GOSL. The CEO is appointed from among NTT directors as provided in the agreement.
3) That NTT has sought consent of the GOSL to divest 25.3% of the holdings to GTH leaving them with a minority stake of 9.9% with a right for NTT to nominate one of the GTH directors to be appointed to SLT board to represent NTT.
4) That the Shareholders Agreement should be renegotiated
5) That the Shareholders Agreement including provisions relating to the appointment of Chief Executive Officer and other management aspects and ownership issues will have to be renegotiated with the recommended party acceptable to GOSL.
6) That a committee be appointed comprising secretaries to the Ministries of Finance, Post and Telecommunications, Defence, Chairman Public Enterprises Reform Commission (PERC), Chairman Board of Investment (BOI) and the Director General, Securities and Exchange Commission (SEC).
7) The committee will go into the acceptability of GTH and negotiate a new Shareholders Agreement and approve the transfer of 25.3 percent of NTT shares.
8) PERC would facilitate this exercise and prepare the agreement subject to the approval of the Attorney General. (See elsewhere on this page for copy of Cabinet Memorandum.)

In the meantime on March 30, 2007 Ralph Marshall, the man who was in Japan at about the time Basil was, had an extensive discussion with President Mahinda Rajapakse at Temple Trees where he fully briefed the President on the progress of the negotiations between GTH and NTT. So much for the deal being between two private parties with no government involvement.

Marshall quickly follows up the meeting with a letter dated April 3 in which he confirms four specific undertakings given by Rajapakse to him. The letter on a GTV letterhead bears no designation for Marshall. Throw you mind back to the letter sent on March 14 by NTT to Treasury Secretary Jayasundera where they state that until the transaction is complete it shall not have any employees or a CEO but that Marshall, a director of the UTSB group and other executives of UTSB will manage GTH. Hence the absence of a title.

The President according to Marshall agrees inter alia to NTT retaining a 9.9% interest in SLT, which is subject to exit provisions exercisable by both parties at the end of the second year following the initial divestiture by NTT and that the combined 35.2 interest of GTH and NTTC be entitled to four directorships on the board of SLT as a consequence of the exit provisions referred to in (1) above. (See box for full letter.)

Therefore, it is proved beyond doubt that the President was intimately involved in negotiating this deal and not a mere silent partner coming into play only at the time of finalising the management contract after the private share transaction between NTT and GTH is concluded as made out by the government.

A Cabinet Appointed Committee meeting is subsequently held as per cabinet decision on 17.04.2007.

The minutes of the first meeting were circulated by Director PERC, E. Arumugam with another meeting scheduled for 26.04.2007.

Matters vital to the SLT in particular and to the national interest in general surfaced at this meeting according to its minutes. They are inter alia as follows:

(1) The original agreement in 1997 between NTT and GOSL was signed as part of a divestiture where the country received a major investment and where ownership and management had to be given in order to obtain the required skills and management expertise.
(2) With the GTH there is no investment or benefit to the country in monetary terms. Therefore giving the CEO position to GTH must be based on a benefit to GOSL alone.

GTH to Get More Powers and Benefits than NTT
Mind you even though the GTH deal will not benefit the state at all and is merely a private transaction albeit orchestrated by Rajapakse, it is proposed that they will get more benefits such as appointment of key management staff like Chief Financial Officer and Chief Operations Officer and choice of Chief Executive Officer as well.

(3) In fact Chairman, SLT, Asoka de Silva pointed out according to the minutes that SLT had already received a draft Shareholders' Agreement (SHA) from the Malaysian party with more powers than those included in the present Shareholders Agreement such as the appointment of Chief Financial Officer (CFO) and Chief Operations Officer (COO) in addition to the CEO of SLT and its subsidiaries which they opposed. Subsequently SLT had received an amended SHA which was studied by them as well as by two external lawyers and forwarded to the Attorney General's Department.

PERC Shocked by Proposed Deal
A copy of a report prepared by PERC was also tabled at this first meeting where PERC had in writing submitted a number of reservations over the deal and pointed out why such a deal not only contravened well established conditions of sale in the public interest but also why the deal would be detrimental to Sri Lanka Telecom (see box for extracts of PERC observations).

PERC also observed that Maxis itself whether linked to GTH or otherwise is not suitable as a stakeholder in SLT. The company commenced commercial operations only 11 years and nine months ago and its fixed line operations are marginal. In fact a comparison of revenues in US dollars of SLT, NTT and Maxis in the table below as per the PERC report, will only prove that Maxis has no value to bring to Sri Lanka Telecom.

In millions of US$
SLT NTT Maxis
Fixed line 273 33,440 53
Mobile 34 30,057 1,606
Total 306 63,497 1,659

New Shareholder Agreement
Meanwhile the proposed Draft Shareholder Agreement (SHA) between GTH, NTT and GOSL is to be signed at the time 25.3 % of NTT shares are transferred to GTH with management rights.

(1) Clause 'D' of the new agreement states that "NTTC and GTH have agreed to the partial sale of NTTC's equity holding in SLT to GTH in order to maximise the synergies and expertise offered by both companies (particularly in light of the fast growing mobile telecommunications market in Sri Lanka) for the substantial benefit of SLT's shareholders and the people of Sri Lanka."

However one will see by its own letter signed by Marshall sent to President Rajapakse on April 3, that the reason for GTH's primary entry to SLT is to provide their own expertise in the growing mobile market.

SLT however is essentially a fixed line operator and Mobitel is only a very small part of its business. Perhaps say business experts, if GTH is coming in specially for mobile phone industry experience, then SLT should have considered divesting part of Mobitel to GTH rather than Sri Lanka Telecom itself and instead grant them a management contract to resuscitate Mobitel.

(2) The Draft clause 'F' states that NTT's retained shares are subject to certain exit provisions exercisable by either of NTT and GTH towards the expiration of the second year following the share sale and purchase transaction under the share sale agreement.

Exit Clause
This is alarming given that the exit clause grants the right to GTH to purchase the balance of NTT shares though there is no provision for GOSL to exercise its right of first refusal which in fact was embodied in the original SHA of 1997. This clause will in effect permanently bar GOSL from taking control of SLT.

The management of SLT as proposed is also detrimental to SLT and to GOSL, its largest shareholder.

With regard to the Chief Executive Officer, Chief Financial Officer and Chief Operating Officer the Draft at clause '9' states that the GOSL and GTH must exercise their voting rights to appoint a GTH director nominated by GTH as the CEO of SLT.

Extensive Powers to CEO
The appointment of CEOs to any of SLT's key operating subsidiaries and associate companies and the appointment of the CFO and COO of both the SLT and its operating subsidiaries and associate companies shall come under restricted matters and will thus require the consent of both the GOSL and the GTH.

Furthermore the SLT CEO has been conferred with extensive powers and full control over the appointment or removal of all employees of SLT unless it is the removal or appointment of a senior executive coming under restricted matters.

The CEO could also incur any expenditure or enter into any commitment on behalf of SLT on matters not included in the business plan up to an aggregate of US$500,000.

Sweeping Clause
And in one sweeping clause in Schedule 3(4) it states that notwithstanding anything to the contrary in the agreement including in the restricted matters, the CEO is authorised to incur any expenditure and enter into any commitment without limit or cost provided the details of the commitment have been disclosed in the relevant approved annual business plan.

Note: By making the appointment of CEO, CFO and COO a restricted matter GTH has acquired the right of veto over key management positions although they own even less than NTT did, that is only 25.3 percent of the shares.

The position of the CEO was offered to NTT in 1997 as there was a huge investment into the country. In this case it is merely a private transaction between two foreign entities and the money will be generated outside Sri Lanka and will also remain outside of Sri Lanka.

GTH is not compelled to make any contribution or investment to Sri Lanka or SLT. There will be zilch foreign exchange inflow into the country.

However this draft SHA hands over unlimited management control to GTH with no fall back option or even a limitation clause. Therefore even if the majority shareholders including the GOSL desire to change management they will be held in a binding clasp by a minority foreign body unable to move. Mind you these sweeping powers which are much more than those enjoyed by NTT with a 35 per cent stake are to be given to GTH which will have only a 25 per cent stake. Pray why?

Rajapakse must answer why GTH is given unlimited powers when even NTT which is obviously the superior commercial enterprise did not get it. Is GTH bringing in some unusual expertise? Why hand over everything on a platter to GTH if it is a private transaction between two outside parties when the government could have taken full control of the management with the lapsing of the existing SHA? Intriguing eh!

Furthermore handing over complete management control to a minority shareholder who will not be bringing a cent into the SLT coffers will invariably lead to abuse of power with all procurement decisions to be decided by the GTH appointed CEO as well.

Subterfuge
Experts in the field livid over the government's subterfuge point out that handing over management control of state owned entities to private companies is privatisation and totally against the Mahinda Chinthana policy.

Clause 9.2 (b) refers to Schedule 3 which lists out the CEO's powers. Again the powers are limitless, giving a minority shareholder unlimited powers for an unlimited time.

Clause 9.3 of the Draft titled Management Agreement states the GOSL and GTH agree to enter into good faith discussions with a view to entering into a separate management agreement (together with SLT) within (3) months of the date of this agreement that details the roles of GTH and the establishment of board sub committees (if appropriate) in relation to the operation, management and governance of SLT and similar processes such as limits of authority, procurement and investment committees and technology strategy.

Pray what is the purpose of this clause other than perhaps to extract a separate management fee from Sri Lanka Telecom for no value addition at all.

Clause 11(a) deals with universal service obligation and states that during the terms of this agreement GOSL represents and warrants that there shall be no universal service obligation imposed on SLT and the procurement and tender procedure for SLT will be determined by the board of directors of SLT.

Therefore by this the Government of Sri Lanka loses all rights to direct SLT to play a role in national development for instance with regard to rural infrastructure. And mind you it has over a 50% stake. Mind boggling, what!

The question is why President Rajapakse is relinquishing the right of the state to harness its own resources towards national development. Why is it that a foreign body is being given limitless powers over a state even though there is absolutely no benefit to the state since it is essentially a private transaction of NTT wanting to sell its shares.

That readers is perhaps the hundred million dollar question.

Questions PERC has Raised
(1) Why is GTH incorporated in Netherlands Antilles and not in Malaysia, particularly when UTSB has undertaken to fund GTH.

(1) GTH is recently incorporated and thus violated two of the requirements for the 1997 bids namely that the age of the bidding company should be more than 25 years and that the company should have been in telecom operations for more than 15 years.

(2) The proposed investor UTSB is stated as having revenue and assets far below the revenue and assets of all three unqualified bidders in the 1997 bid. GTH does not even have a website for themselves.

(3) Question on the suitability of GTH by comparing contravening paragraphs in its own letter to Treasury Secretary and calls NTT's assessment questionable.

(4) According to NTT, the GTH claim to fame is its link to Maxis. PERC states even if this were so Maxis itself is more a mobile operator and not a fixed line operator and therefore unsuitable to the needs of SLT

Government Artillery Takes Aim at The Sunday Leader

2007-05-26T21:41:00.000Z

President Mahinda Rajapakse's Co-Ordinating Secretary Sajin Vass Gunawardene has revealed plans to freeze The Sunday Leader accounts and force it out of business. Gunawardene has told confidants the Government was planning to get court orders on the pretext of investigating the accounts of Leader Publications and force it to shut down.

The Government earlier adopted a similar strategy to force the closure of the Maubima and Sunday Standard newspapers by freezing its bank accounts.

Gunawardene whose corrupt dealings were earlier exposed by The Sunday Leader has also said that he was spearheading the campaign to force The Sunday Leader out of business to put a lid on criticism of the Government.

Source: The Sunday Leader (subsription required)

Highflying Presidential Joyrides -- Is it a Violation of Tender Procedures?

2007-05-25T05:44:00.000Z

The creation of Mihin Air, the "budget airline" of Sri Lanka was shrouded in secrecy, with none other than the Minister of Aviation himself unaware of the true story behind it. While there are many alarming questions sans answers regarding the need, financial and operational viability of the whole exercise, the concentration of this post is not necessarily Mihin Air. Rather, it is the recently formed habit of President Rajapaksa to charter airplanes at his fancy to glob-trot -- apparently at the advice of his astrologers.

The first point of concern is this business of chartering aircraft. President Rajapaksa is the first president to do this on a consistent basis. President Premadasa did this a couple of times (to India & back) during his impeachment motion. I would assume President Kumaratunga did so as well, although I don't remember anything specifically.

As everybody knows, all government purchases are done through tender. Tenders are placed, service providers bid, the tender evaluated, and finally awarded based on the evaluation. The question I have is whether there was any sort of tender published for "providing aircraft charter services to the president?"

Of course, it is understandable that this cannot be done for every single trip he undertakes (especially at the current frequency of travel). However, it would be practical to call for such a tender and grant services, say for example, for five years. The charges then could be based on miles flown, or hours hired, and/or combination of such factors.

From all information I have been able to gather, this does not seem to be the case. The cost of chartering seems to be a private agreement between the Rajapaksa administration (i.e. presidential secretariat) and Mihin Air. A private deal, in other words. Considering the people behind Mihin Air, and the personal interest shown by President Rajapaksa no less, this is indeed not surprising.

The ownership of Mihin Air and who its investors are not very clear. What is clear is that Mihin Air is not a government enterprise. This makes the President brushing off SriLankan Airlines (partially owned by the government) for a totally private enterprise without calling tender even more bizzare.

That said, it was President Rajapaksa who submitted the papers to the Cabinet to get Mihin Air approved. That too after it was exposed that Mihin Air was about to fly without Cabinet approval. That story will be highlighted on LWB next week, which was originally exposed in the Sunday Leader (who else?).

For now, the thought to ponder is -- does the President have the right to call for and purchase services bypassing available state services, without calling for tenders?

Tough-Talking Sri Lanka IGP Victor Perera -- All Fart, No Shit

2007-05-22T23:30:00.000Z

For a country that is currently witnessing a rising wave of crime and lawlessness, the tough-talking current Inspector General of Police, Victor Perera definitely comes across as "all fart, no shit."

In spite of all the high-profile abductions, killings, and threats that are prevalent, the Police has not been able to bring a single culprit to court -- let alone convict. It seems, the Police force is only interested in being the hound-dogs of their political masters . Further, their only competence seems to be arresting opposing businessmen and journalists on cooked-up charges of terrorism and money laundering -- the popular choice these days.

It would do us all good to remember that the current wave of abductions and demands for ransom is not a first-time occurrence. Some time ago, a similar thing started to happen where kids were involved. However, that wave was halted with some crack investigations of the Police force and their counterpart, the CID.

This time around, the will seems to have been blunted. Some reports suggest that there are some wanna-be powerful, ministers claiming to be blue-blooded descendents from Sri Lankan royalty are behind these. Some reports also the involvement of Karuna. Either way, the bottom line is that these things continue to happen with impunity.

Having said that, I would like to acknowledge the few dedicated officers of the Police who continue their work in spite of the greatest difficulties. The CID officers who refused to pass the buck to junior officers, and arrest Lasantha Wickramatunga is a fine example (consequently, they were transferred out).

Sri Lanka IGP Victor Perera -- All Fart, No Shit

Related Links
Asian Human Rights Commission: "SRI LANKA: An epidemic of lawlessness"
Related video clip of recent demands for ransom

JVP Makes US$ 10M Commission Charge on Telecom Deal

2007-05-22T22:45:00.000Z

JVP parliamentary group leader Wimal Weerawansa yesterday accused a powerful person in government of accepting a US$ 10 million commission to facilitate the sale of SLT shares to a Tamil businessman from Malaysia.

Weerawansa made this allegation in parliament yesterday amidst growing controversy over the sale of SLT shares held by NTT of Japan to Maxis of Malaysia. The JVP member also charged that the President as Finance Minister and Treasury Secretary P. B. Jayasundera must take responsibility for this state of affairs.

Following Weerawansa’s statement, UNP Gampaha District parliamentarian John Amaratunga called on the member to name the powerful personality who had accepted the US$ 10 million commission.

Leader of the House and Health Minister Nimal Siripala de Silva also called upon the JVP parliamentarian to name the person who had accepted the commission without making baseless allegations. Weerawansa responded to de Silva stating that he was trying to get him to name the person because the government wanted to know the name.

The JVP parliamentarian also charged that it was wrong of the cabinet of ministers to agree to sell SLT shares held by NTT to a Malaysian company simply because a powerful person was to benefit to the tune of US$ 10 million.

Speaker W. J. M. Lokubandara then questioned Weerawansa if he was ready to take the full responsibility of the allegation made by him.

Weerawansa responded by saying that he would not make such a statement if he was not ready to accept responsibility. He also requested the Speaker to make allocations for a full day debate to be held on the deal in parliament.

Also speaking on the issue, UNP Kurunegala District MP Dayasiri Jayasekera said that government ministers remained silent on the issue, as they did not approve of the deal. He also said that although Minister Rauf Hakeem was in-charge of the relevant portfolio, he did not present the cabinet paper for cabinet approval and he was not aware of it either.

Responding to the statement, Post and Telecommunication Minister Rauf Hakeem said the cabinet paper was presented by the Finance Ministry as the Treasury too had shares of SLT. He also said a cabinet sub committee was currently looking into the matter.

UNP Colombo District parliamentarian Ravi Karunanayake questioned as to why the government was now privatizing state assets after presenting a policy of non privatsiation through the Mahinda Chinthana. The UNP called for the appointment of a parliamentary select committee to probe the matter.

Source: The Morning Leader
Previous post on LWB regarding the sale of SLT shares

Over US$4 Million to Fund Mahinda Rajapaksa's Foreign Visits

2007-05-21T22:44:00.000Z

A small fact finding effort and calculation by LWB has revealed that Sri Lankan President has spent over $4 million dollars over the last two years to fund as much as twelve visits. While such travel is expected from a head-of-state, what makes this figure significant is that Rajapaksa's combined delegations adds up to over 640 during this same period.

In calculating this figure, various news reports and official press-releases were used to obtain information on the number of days the visit lasts, and the number of members in the delegation. A fully-loaded cost of US$1,200/day/member was estimated considering the daily allowance of US$500 given to travelling members and other costs such as hotel, food, telephone, drinks and incidentals (shopping?).

Airfare and charter-costs are not included in this figure. However, I would guess that each charter-flight would cost a few-hundred thousand dollars at least.

At a time when Sri Lanka is increasingly receiving negative reactions from the international community, and President Rajapaksa himself declaring he doesn't really care what other countries have to say, what benefits these visits have accrued to the country would be an interesting question. Trade? Investment? Aid?

Kawda Mewata Waga Kiyanne?

Back to The Future: Abductions, Assassinations & Burnt Bodies

2007-05-21T01:54:00.000Z

A collection of a recent wave of murders in Sri Lanka. Significant to note is that these do not seem to be murders done for personal issues, and that they are not in the so-called "operational areas."

Mahaoyawatte – 3 decapitated bodies (27-Apr, 2006)
Avissavella – 2 decapitated bodies
Panadura – 1 dead body in a van (10-Jun, 2006)
Colombo – 1 person assassinated in a mosque (30-Jun, 2006)
Ambalangoda -- 2 people assassinated (30-Jun, 2006)
Negombo – Abductee found dead, shot in the head (8-Oct, 2006)
Hanvella – 1 decapitated body (26-Nov, 2006)
Wennappuwa – 1 dead body (14-Jan, 2007)
Bandaragama – 1 dead body, bound & burnt (15-May, 2007)

Heard It Through the Grapevine

2007-05-19T23:00:00.000Z

Foreign Affairs - Bungling Bogollagama
Rumor has it that the ministry of Foreign Affairs is about to go up in flames, this time about a pretty lady Bogollagama brought over from the Board of Investment. She is apparently now heading the "Economic" section of the Ministry. According to the grapevine, sparks are all set to fly this week. Hmm.... Wolfowitz, seems like you've got company.

Me Tarzan. Tarzan Like Girl.
Wimal Weerawansa's tryst with a girl from the villages, whom he brought to Colombo and got employed at Lake House has taken yet another turn. This time, it was the Mrs who had gone and made a complaint against this girl with the Police. Rumor is that Weerawansa approached someone at Temple Trees, trying to put a lid on the investigation. Let's see whether Tarzan starts howling once trying to deflect the issue.

Sinister Moves Behind the Investigation of Morawewa Thero's Murder

2007-05-19T22:46:00.000Z

Investigations are not compltete yet. However, Mahinda Rajapaksa "confirms" it was the LTTE.
East is "completely liberated" LTTE threat reduced by 95%. Yet, monks are being assassinated.

News Report:
A Buddhist monk in Morawewa has alleged the involvement of several state officials in the assassination of chief monk of the Pabbatharama Viharaya, Morawewa, Ven. Handungamuwe Nandarathana Thero last Sunday.

Chief incumbent of Morawewa Sri Gajaba Gallen Rajamaha Viharaya, Ven. Kalutara Somarathana Thero observed that although investigations have revealed the real assassins of Ven. Nandarathana Thero, the probe was currently at a standstill due to pressure from higher authorities.

The Thero told The Sunday Leader that the LTTE was not involved in the assassination and that it was carried out by people known well by Ven. Nandarathana Thero.

"How can the government say the LTTE killed the Thero when LTTE activities in this area has been reduced by 95%. It is unfair to make such a statement. Also, the assassins were known to the Thero," he said.

"How can the government or anyone claim it was the LTTE when investigations were in the initial stages?" the Thero questioned.

According to the Thero, informed sources have revealed to him that the investigation could no longer proceed as the President had declared the LTTE to be the assassins. "So now even if the investigations have proven otherwise, they say they cannot proceed with it. It is unfair as the real assassins are free. The officers investigating have not been given the order to proceed with the investigation," the Thero said.

Ven. Somarathana Thero explained that on the day of the assassination, Ven. Nandarathana Thero was on his bike getting ready to visit the Thaulwewa army camp when two motorcycles approached him at the temple.

"Ven. Nandarathana Thero had looked at those who were on the bikes and said, 'Ah, good that you came.' Do these words not say that the Thero knew his assailants," he asked.

According to Ven. Somarathana Thero, the assassinated monk had earlier written a letter on the threats to his life by several people including another monk and several laymen, but there was no mention of any threat from the LTTE.

"Ven. Nandarathana Thero was criticised by some for his actions. He always tried to bridge the gap between races. He also took the initial step of ordaining a Tamil youth, many criticised this. Many accused him of being an LTTE sympathiser," Ven. Somarathana Thero said.

He also observed that some internet pages have carried stories accusing Ven. Nandarathana Thero of being an LTTE sympathiser and had accused him of attending a Pongu Thamil festival as well. "The LTTE has not claimed responsibility for the assassination and has said the monk worked for the betterment of the people irrespective of class or creed," Ven. Somarathana Thero said.

Ven. Somarathana Thero also said that he was in possession of the letter written by Ven. Nandarathana Thero on the threat to his life and that he would present it to the police for investigation.

"Ven. Nandarathana Thero always fought for what was right and was always with the people trying to bridge the gap between the races," Ven. Somarathana Thero said.

Ali-Koti Givisuma & Ranil Lokka

2007-05-19T06:59:00.000Z

Lakshman Seneviratne speaks about the so-called Ali-Koti Givisuma, and the folks who should have and may have benefited from it.

Clarification Regarding the Million-Dollar Homes of the Rajapaksa Clan

2007-05-18T17:26:00.000Z

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.

$4.5-Million Dollar Home for Basil in California -- Look it up Yourself

2007-05-18T03:34:00.000Z

There is a law in Sri Lanka that requires public officials from declaring their assets to the government. This is also a requirement of those holding political office, including MP's. However, recently a law was sneaked in that exempted a very narrowly cut selection from requiring to do so.

According to new regulations, public officials who have dual citizenship and have property / assets overseas are not required to declare their assets. One can only imagine, who exactly benefits from this tailor-made regulation introduced during the Rajapaksa administration.

LankaWhistleBlower did some freelance investigations using publicly available information to uncover some information. Based on the information that we came up, the average market value of the primary residencies of Basil & Gotabaya Rajapakse are as follows:

Basil Rajapaksa
- Primary residence listed in Fontana, California
- 3 bedroom house
- Average market price - $4.5-million

Gotabaya Rajapakse
- Primary residence listed in San Dimas, California
- House is in the name of his wife, Ioma Rajapakse
- Average market price - $995,000 for an old house

Want to confirm the information yourself? Here's how. Read on.

Visit Yahoo!People search -- http://people.yahoo.com
Enter "First Name" Basil and "Last Name" Rajapaksa (spell correctly)
Use the "Phone & Address Search"
Copy the address to Google Maps or Google Earth to see the location
To find the prices of houses in the surrounding area, type the ZIP code and "homes" into Google Search (note: NOT in Google Maps). This would be, "92336 homes" for Basil, for example.
Click on the first link that Google returns "Find results for 92336 homes in Housing search"

Confirm Ioma Rajapaksa is indeed Gotabaya's wife by typing her name into Google
Then look her up on Yahoo People Search

Screenshots

Basil Rajapaksa - Address , Closeup , Market Value
Gotabaya Rajapksa - Address , Closeup , Market Value

All information disclosed here is obtained through publicly available information, free of charge. Anyone aware of the tools can do this. The only thing I've done is just compiled it.

After all, as the public we not only have to obey laws but understand the purpose of law. When things are done to circumvent not only law, but its purpose, then information such as this at least in my opinion, becomes worthwhile publishing.

Sonali Samarasinghe Gets it all Wrong

2007-05-16T23:53:00.000Z

According to news reports, CID officials are said to have visited the office of Leader Publications to question investigative journalist Sonali Samarasinghe. Sonali writes revealing investigative pieces that appear in the The Sunday Leader, The Morning Leader and Irudina newspapers.

During interrogations that lasted from 9am to 2pm, She has been questioned about the sources, methods and procedures of her investigations. Of course, when she refused to divulge her sources the CID had threatened to take her to courts.

Sonali thinks that this is an attack on the free media of the country. Damn wrong!

See, the CID wanted to learn something from her. Having failed to successfully conduct a single investigation whether it be Tiran Alles' links to the LTTE, Helping Hambantota funds, GoldQuest, or Johnston Fernando stealing cutlery, so on and so forth, the CID has finally realized that they are nothing but a bunch of pansies who are incapable carrying out proper investigations.

Thus, the only thing they wanted was to have Ms. Samarasinghe give them a nice lesson on investigative tactics and ethics. Pavu ne, to accuse them of trying to harass the media?!?

Vandinna giya devale oluve kadan vatuna!!

Lanka Can Do Without Foreign Aid, But Can the Rajapaksa Clan?

2007-05-16T20:12:00.000Z

President Rajapaksa is reported to have said that Sri Lanka "can do" (what, I might add) without foreign aid.

But the million dollar question floating around is, whether the Rajapaksa clan of Mahinda-Gotabaya-Basil can follow suit and do without the foreign aid. Of course, while tapping into local resources is still a feasible option, the lack of foreign aid to fund the 10% donation to Rajapakse Private Limited is a worrying prospect.

Mr. 10-percent didn't come around for nothing, no?

Sale of SLT to GTH of Malaysia Proceeds in Secrecy as Questions of Corruption Looms

2007-05-15T20:43:00.000Z

Questions are being asked as to why the portion of Sri Lanka Telecom (SLT) held by NTT of Japan is being sold to Global Telecom Holdings (GTH) of Malaysia with utmost secrecy and urgency.

The legality of the whole exercise is further questioned as SLT is a public company, listed in the Colombo Stock Exchange. A little over 15% (15.3%) of the enterprise is held by the public, who flocked to purchase its shares during the IPO making it one of the most successful public offerings in Sri Lankan history.

Extract from News Reports:
"Given that 15.3% of the company is owned by the public, the fact that none of its 28,000 shareholders were informed of the deal is both illegal and unethical," UNP MP Dayasiri Jayasekera said at a press conference yesterday.

Jayasekera further said that tenders had not been called and normal procedure had been flouted in the process of drawing up the deal.

"Why would President Mahinda Rajapakse single handedly close the deal with a Malaysian company without looking at any other offers, unless he had some personal interest or a lot to gain monetarily, even at the cost of the country, from this deal?" Jayasekera questioned.

Jayasekera said the UNP had evidence to show the owners of the Malaysian company Global Telecom Holdings, which had purchased NTT’s shares, were close associates of President Mahinda Rajapakse, and moreover had helped him financially during his last presidential campaign.

"Not only have valuable national assets been sold to this company, but the deal also entitles Global Telecom Holdings to a TV Channel. Why these privileges?" Jayasekera further asked. He also inquired if Post and Telecommunications Minister Rauf Hakeem, under whose ministry telecommunications currently was, even knew about this deal.

"Sri Lanka Telecom is one of our profit making ventures, and the Mahinda Rajapakse regime before coming to power promised they would disallow privatization and deal with profit making institutions appropriately."

"Instead they’re blatantly selling public property," Jayasekera said.

Sripati Exposes Multi-Million Dollar Rajapakse-LTTE Deal in Parliament

2007-05-15T17:10:00.000Z

Sripati Sooriyarachchi recently made shocking admissions in the Parliament of Sri Lanka regarding a monetary exchange between Gotabaya Rajapakse and the LTTE, with the approval of then presidential candidate Mahinda Rajapakse.

The deal, according to the revelations made was to "assure" the support of the LTTE for the Rajapakse-campaign vis-a-vis blocking the northern-Tamil populace from voting at the election. This proved to be a crucial turnaround in the election, which Rajapakse went on win with a razor-thin majority.

The following video clips (broken down due to size/time restrictions by YouTube) shows MP Sripati Sooriyarachchi making these revelations and allegations against the self-proclaimed war-hero Gotabaya Rajapakse. Gotabaya Rajapakse served in the Sri Lanka Army for a brief period before deserting the ranks and fleeing to the United States, where he has assumed permanent residency as a preliminary step towards citizenship.

Clip 1 - Prelude -- MP Range Bandara Sets the Pace

Clip 2 - Sripati Makes Exposure, Acknowledges, and Offers Evidence

Clip 3 - Conclusion