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Politics, Justice, and the Rule of Law: Presidential & General Elections 2010
Politics, Justice, and the Rule of Law: Presidential & General Elections 2010
Politics, Justice, and the Rule of Law: Presidential & General Elections 2010
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Politics, Justice, and the Rule of Law: Presidential & General Elections 2010

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This is the most controversial Book, containing complex shocking revelations, in the series of Books by the Author, wherein most difficult topics are excellently and diligently dealt with, exposing realities in politics, and non-dispensation of justice, with judiciary acting sans jurisdiction, ultra-vires the Constitution, denying natural justice, making a mockery of the `rule of law', paying scant regard to United Nations Conventions on Human Rights. The range of cases and topics dealt with is indeed amazing making exhorbing reading. Commencing with his own exposure to politics, paying high tribute to minority Tamils in Sri Lanka, the Author brings out stunning prevalent reality. Makes startling disclosures on Sri Lanka's most controversial Presidential Election of 2010, and incarceration, as a villain, a Presidential Candidate, a trusted Army General, once hailed, as the `best Army General in Asia', having led the country's armed forces to crush one of the most feared terrorists organizations, internationally banned, Liberation Tigers of Tamil Elam. The most difficult and delicate subject of `judicial bias and disqualification' at highest levels of the judiciary is dealt with, including the controversy which reverberated on the endeavour by the Legislature to impeach a Chief Justice, whose husband, having held high profile political office, was impleaded in a dubious share scandal, involving the country's leading Savings Bank. Author incisively delves into an important case of abduction of a Tamil businessman, and the horrendous anonymous allegations of trading in human body parts, during the war against the terrorists, allegedly with Indian and Israeli connections. Author analyses real case studies, involving foreign investments, demonstrating classic instances of dubious judicial processes, including subversion of action, vis--vis, fabricated forged documents of public officers tendered to Court, involving questionable professional conduct, and indifference by law enforcement authorities, including Attorney General, Chief Law Officer of the State.
LanguageEnglish
Release dateJan 29, 2013
ISBN9781481781770
Politics, Justice, and the Rule of Law: Presidential & General Elections 2010
Author

Nihal Sri Ameresekere

Nihal Sri Ameresekere, F.C.A. (Sri Lanka), F.C.M.A. (United Kingdom), C.M.A. (Australia), C.F.E. (United States), is a Member, International Consortium on Governmental Financial Management and a Member, International Association of Anti-Corruption Authorities. Former Advisor, Ministry of Finance and Chairman, Public Enterprise Reforms Commission Sri Lanka. Has functioned as Senior Consultant on World Bank and USAID funded public sector economic reform projects. A multi-disciplinary professional, exposed to private and public sectors, and a public interest activist, with wide international exposure. Not a legal professional, yet has appeared in person before the Supreme Court, successfully advocating public interest litigations. He is a forensic accounting investigative specialist. Has dispassionately spoken out on matters of national and public interest. Ardently upholds the sacred precept, that public property is solely of the people, and managed in fiduciary trust by governments; transgression of which he has committedly combated. Has published exposés into transactions carried out, under the aegis of IMF, World Bank and ADB privatization agenda, incisively analyzing real case studies, exposing the shockingly dubious manner, in which privatizations have been perpetrated by the highest levels, disclosing the alarming indifference of international developmental agencies, completely eroding public confidence, crucial for meaningful privatization, to foster a free economy, characteristic with transparency. He emphasizes that `economic terrorism' germinates `armed terrorism', resulting in violation of human rights. `Concerns of humanity, transcends interests of nationality', he propounds; and that poverty alleviation schemes merely replace, at the cost of the poor, their own resources pillaged and plundered by socio-politically influential. Politicians vigorously campaign on election platforms, vociferously decrying fraud and corruption, vowing stringent action thereon. However, upon assuming office of government, get bogged down in the very quagmire of fraud and corruption, invariably peddled by powerful multinationals - as lucidly demonstrated through a series of other publications on his real life experiences thereon.

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    Politics, Justice, and the Rule of Law - Nihal Sri Ameresekere

    Contents

    Chapter 1 POLITICAL APPOINTMENTS

    Chapter 2 EXPERIENCES WITH POLITICAL LEADERS

    Chapter 3 MOCKERY OF THE ‘RULE OF LAW’

    Chapter 4 EVENTS PRECEDING THE PRESIDENTIAL ELECTION 2010

    Chapter 5 PRESIDENTIAL & PARLIAMENTARY ELECTIONS 2010 & INCARCERATION OF PRESIDENTIAL CANDIDATE

    Chapter 6 UNCONSTITUTIONAL DETERMINATION & PERCEIVED JUDICIAL BIAS ?

    Chapter 7 IMPEACHMENT OF A CHIEF JUSTICE

    Chapter 8 ABDUCTION OF A TAMIL BUSINESSMAN & INTRIGUING COINCIDENCE ?

    Chapter 9 ATTEMPT TO DEFRAUD SINGAPORE COMMODITY TRADER

    Chapter 10 DEFRAUDING OF AN UK HIGH COURT TRUSTEE IN BANKRUPTCY ?

    Chapter 11 COMPLAINTS TO POLICE & CHIEF JUSTICE OF NO AVAIL!

    Chapter 12 DEFRAUD OF A GERMAN INVESTOR ?

    Appendices

    I Presidential & Parliamentary General Election Results 2010

    II‘Expropriation Bill’ presented to Parliament on 8th November 2011

    III Supreme Court Determination of 24th October 2011 on ‘Expropriation Bill’

    IVStatement of Affairs of Bankrupt filed in UK High Court

    V Supreme Court (Conduct of and Etiquette for Attorneys-at-Law) Rules

    VI-A Letter to Hon. Attorney General

    VI-B Parliamentary Select Committee Report to impeach Chief Justice

    VI-C Letter to Hon. Speaker of Parliament of Sri Lanka

    VI-D Constitutional Interpretations & Irregularly constituted Supreme Court

    VI-E Letters to the UN Office for Human Rights, et al

    VI-F COPE Reports to Parliament of Sri Lanka

    VI-G English Medio Exposes

    VII My deep gratitude to

    Chapter 1

    POLITICAL APPOINTMENTS

    Initial Political Instincts

    I received my education at S. Thomas College, Mount Lavinia. I was not only an orator, leading Debating Teams in English and Sinhala languages, but I also contested elections to be elected to the Offices of President of the English and Sinhala Literary Societies of my alma-mater, dabbling, as a school boy, with the art of campaigning and canvassing for votes. This was my first experience and exposure to such a crafty art.

    Later in 1969, whilst apprenticing at Turquand, Youngs &Co., Chartered Accountants, now Ernst & Young, I was elected as the President of the Chartered Accountants Students’ Society of the Institute of Chartered Accountants of Sri Lanka, winning a hard fought close election, defeating a more senior Accountancy Student, agraduate, from Ford, Rhodes, Thornton & Co., Chartered Accountants.

    During my tenure as President of the Chartered Accountants Students’ Society, I, together with my Committee, agitated to win just and equitable rights for the Accountancy Students, successfully achieving the abolition of the premium of Rs. 2000/-charged by Chartered Accountancy Firms at that time to enter into Apprenticeship Agreements; and the fixing of uniform working hours, with the payment of uniform Allowances to Accountancy Students by the Chartered Accountancy Firms, who were neither adhering to uniform working hours, nor paying any Allowances at that time; and achieving the grant of uniform periods of Study Leave for Accountancy Students pursuing studies for professional accountancy examinations, during such periods of apprenticeship with Chartered Accountancy Firms, which was not granted at that time.

    The President of Institute of Chartered Accountants of Sri Lanka at that time was then Auditor General, B.L.W. Fernando, who gave me the following testimonial:

    Image3057.JPG

    Initial Association with Politicians

    In early 1970s, then Leader of the United National Party, Dudley Senanayake, who had been elected, as the Prime Minister of Sri Lanka on four different occasions, and was the son of D.S. Senanayake, the first Prime Minister of Sri Lanka, appointed me to a Committee headed by Gamini Dissanayake, who succumbed to a terrorist bomb attack during his Presidential Election bid in 1994, and which Committee included Ranil Wickremesinghe, later a Prime Minister of Sri Lanka, and now Leader of the Opposition, Daya Pelpola, a Lawyer, a Senior Member of the United National Party Working Committee, and one other.

    We, then as youth, were required by the Leader of the United National Party, Dudley Senanayake to review the then 5-Year Plan of the Government of Prime Minister Sirima Dias Bandaranaike, the first woman Prime Minister in the world, and also to review the Organization Structure and the Constitution of the United National Party.

    We met on several occasions at the residence of Gamini Dissanayake at Gregory’s Avenue for deliberations, and thereafter periodically met Dudley Senanayake, Leader of the United National Party, at the upstairs of his private residence ‘Woodlands’, to discuss our views and suggestions. Whilst such discussions were going on, Dudley Senanayake met with an untimely death on 13th April 1973. His funeral was attended by a mammoth crowd of masses from all parts of the country, demonstrating their love, affection and veneration for him; particularly moreso as he had given effect to a national policy of distributing weekly a quota of free rice to each person, which also was an impetus to the rice growing farming community.

    Thereafter, the Leader of the Opposition and the Leader of the United National Party, J.R. Jayawardene commenced re-building the United National Party, which had suffered a severe electoral defeat at the General Elections of 1970 to Prime Minister Sirima Dias Bandaranaike. J.R. Jayawardeneplanned, schemed and strategized to galvanize and build the United National Party to defeat the Government of Prime Minister Sirima Dias Bandaranaike, which, in fact, he consequently successfully did in 1977, with a resounding victory, gaining a 5/6th majority in the Parliament of Sri Lanka.

    In his such endeavours to re-build the United National Party, J.R. Jayawardene was looking for talented youth to be enlisted by the United National Party. I was taken to meet him in 1974 by Ranjan Wijeratne, a cousin of Dudley Senanayake. Ranjan Wijeratne later became the State Minister for Defence in Sri Lanka and succumbed to a terrorist bomb in March 1991. At such meeting J.R. Jayawardene endeavoured to persuade me to enter politics and to become the organizer of and contest the Mirigama electorate, which was my father’s ancestral hometown, asserting that he knew my father very well, and that he too, had an Estate in the Mirigama electorate. The following is a testimonial J.R. Jayawardene had given me in 1970:

    Image3065.JPG

    My father Sirisena Ameresekere’s ancestory is traced to Attanayika Manthri, a Minister to Rajasingha II, who ruled Sri Lanka in the 1640s, and my father’s family had inherited paddy lands in Mirigama, which had been granted by the King. Attanayika Manthri’s grandson, Ameresekere was the Basnayake Nilame in 1660 of the historic Kelaniya Temple, in the outskirts of the City of Colombo. I believe that it is a very strange destiny that I offer alms to all the poor Buddhist devotees, who meditate and observe ‘Sil’ at this historic Kalaniya Temple on the full moon Poya Days in the Months of July and September, respectively, the birth months of my father and mother.

    Nevertheless, I successfully resisted J.R. Jayawardene’s such endeavours to encourage me into entering politics, by pleading that I wished to pursue with a professional career, but assured him that I shall most certainly render services in national affairs, if and when called upon to do so.

    Almost at the very same time, a very powerful and influential Minister of the Government of Prime Minister Sirima Dias Bandaranaike, portrayed as her ‘right hand man’, then Justice Minister Felix Dias Bandaranaike visited me, with his brother-in-law, my good friend and client, Chartered & Management Accountant, Gamini Wickramanayake. Minister Felix Dias Bandaranaike too, invited me tojoin the Sri Lanka Freedom Party and to engage in politics, which such overtures too, I similarly successfully resisted.

    Had I said ‘yes’ to President J.R. Jayawardene in 1974, I would have easily become a Member of Parliament in the landside General Election victory in 1977, and perhaps also become a Minister, and even may have met with the same fate, as Ranjan Wijeratne, Gamini Dissanayake and Lalith Athulathmudali, who all succumbed to premature deaths, due to terrorism which engulfed Sri Lanka.

    Commencement of Professional Practice, but with ‘Political’ Instincts

    Just after completing during the first half of 1974 my examinations of the Chartered Institute of Management Accountants UK, and of the Institute of Chartered Accountants of Sri Lanka, from August 1974, I commenced practising on my own, as a Management Consultant and Chartered Accountant, even though Turquand, Youngs & Co. Chartered Accountants, now Ernst & Young, had indicated to me that I had very good prospects of becoming a Partner, had I joined them. This was also whilst there were several other employment offers I received. In fact, Turquand, Youngs & Co., Chartered Accountants during my period of apprenticeship with them had sent me for specialized training and exposure to Bombay, India.

    One of my very first Clients was K. Gunaratnam, a leading businessman and industrialist at that time hailing from Jaffna. He also owned a circuit of cinemas in the island and was the leading Sinhala Film Producer, and who created icons in the film industry. He was my Client from 1974 to 1989, when he too succumbed to his death at the hands of Southern insurgents who shot him. I was the last person he spoke with on his business matters, not even one hour prior to meeting with his tragic death.

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    After the commencement in August 1974 of my own professional practice, in December 1974, I married Lilamani, daughter of Dharmasena Senanayake, a son of D.C. Senanayake, the eldest brother of D.S. Senanayake, the first Prime Minister of Sri Lanka, and a niece of former Prime Minister Dudley Senanayake. Having thus been from a political family exposed to the vileness of politics, it was she who staunchly prevented me from getting involved in active politics. Hence, my career development, as a professional, and not as a politician !

    Sometime during 1975, there was Public Seminar at the Institute of Chartered Accountants of Sri Lanka, to which Trade & Commerce Minister T.B. Illangaratne, another powerful Minister of the Government of Prime Minister Sirima Dias Bandaranaike, had been invited, as the Chief Guest. Since I did not agree with and loathed the unfolding proceedings of the hollow rhetoric critical of western standards and values, as aristocratic and imperialistic, I went up to the podium from the audience, and taking over the microphone, I openly decried the fallacy of such rhetoric.

    In my extempore speech, I held the attention of the audience spellbound, and I chided the duplicity and hypocrisy of the proceedings of the Seminar, which was full of rhetoric of anti-imperialism and western norms and standards. I pointed out the irony, that the entire educational curricula of the Institute of Chartered Accountants of Sri Lanka was identical to that of the Institute of Chartered Accountants of UK, with the use of the same course material and texts, including the adherence to the norms and standards for professional conduct and ethics of Chartered Accountants prevalent in the United Kingdom !

    I emphasized that being educated in a western environment does not necessarily transform a person from one’s own indigenous identity. I cited the classic example of the husband of Prime Minister Sirima Dias Bandaranaike, late Prime Minister S.W.R.D. Bandaranaike, who though was educated at the Oxford University, UK, returned to the country and formed the Sri Lanka Freedom Party, and successfully espoused the cause of the upliftment of the rights and the quality of life of the common man and the peasants. Tragically, just after 2 Vz years in Office, he was assassinated by a Buddhist Monk, through a conspiracy hatched.

    Late Gunapala Malalasekera, a renowned educationalist, who was on the podium, openly endorsed my extempore and fiery speech, resulting in Minister, T.B. Illangaratne congratulating me, and the proceedings of the Seminar being abruptly terminated by the organizers ! Upon conclusion of my brief, but fearless speech, Minister T.B. Illangaratne came up to me in the audience and complimented me, saying that the way I spoke was exactly the way one should fearlessly speak in public, and he invited me to join him for refreshments !

    ‘Political’ Activity & Political Appointments

    Towards the end of1975, the Elections to the Council of the Institute of Chartered Accountants of Sri Lanka were held. Gamini Wickramanayake, who had previously contested for election, as a Council Member and as Vice President and had lost badly on both occasions, was mooted by me and some others, to contest the post of President of the Institute of Chartered Accountants of Sri Lanka.

    In fact, it was then Chairman of the United National Party, N.G.P. Panditharatne, a Senior Chartered Accountant, who was also the Precedent Partner of Ford, Rhodes, Thornton & Co., Chartered Accountants, who had urged me to get Gamini Wickramanayake elected, as the President of the Institute of Chartered Accountants of Sri Lanka. Hence it was at his behest and with his full endorsement, that I successfully carried out a vigorous election campaign, whereby Gamini Wickramanayake emerged victorious with an overwhelming majority, defeating the person, who was the Chartered Accountant handling the personal affairs of the United National Party Leader, J.R. Jayawardene.

    At the ensuing re-constitution of the Council of the Institute of Chartered Accountants of Sri Lanka, I was nominated to be a Council Member by Trade & Commerce Minister T.B. Illangaratne, under the purview of whose Ministry, the Institute of Chartered Accountants functioned. I believe that this was in recognition of my extempore speech made on his visit to the Institute of Chartered Accountants of Sri Lanka, as referred to above.

    At the 1977 General Elections, J.R. Jayawardene, Leader of the United National Party, led his party to an unprecedented resounding electoral victory, gaining a 5/6th majority of seats in the House of Parliament, winning 140 of the 168 seats. This was due to two reasons-one, J.R. Jayawardene with sound leadership qualities and acumen, had built-up a formidable team, and-two, the Government of Prime Minister Sirima Dias Bandaranaike had brought the economy of the country to a virtual standstill, with closed and controlled socialist economic policies, which had flopped, resulting in rationing, quotas and queues, even to procure food, including a basic item, such as bread, severely burdening the masses !

    Since I had been appointed to be a Member of the Council of the Institute of Chartered Accountants of Sri Lanka by the outgoing Trade & Commerce Minister T.B. Illangaratne of the previous regime, as a matter of principle, I tendered my prompt resignation from such Office, much to the consternation of others, who decried my such act, and did not resign themselves.

    Upon assuming Office of Government, Prime Minister J.R. Jayawardene by an amendment passed in October 1977 to the Constitution, assumed the Office of an all powerful Executive President, and later in 1978 enacted a new Constitution, abandoning the Westminster model, and adopting the Executive model of Government, with Members of Parliament elected on a proportionate basis of the Districtwise votes cast, and which Constitution today is generally condemned all round. Though subsequent Presidents swept to power, vowing to abolish such Executive Presidency, ironically they have dishonered such vow, relishing the wielding of such vast highly centralized power.

    The masterminded President J.R. Jayawardene concurrently also strategically appointed a Special Presidential Commission to carry out inquiries and investigations into the conduct and actions of former Prime Minister Sirima Dias Bandaranaike and certain other confidantes of hers. She was found guilty by the Special Presidential Commission, and according to law, President J.R. Jayawardene caused the findings of the Special Presidential Commission to be Gazetted, whereby former Prime Minister Sirima Dias Bandaranaike lost her civic rights for a period of 7 years, precluding her from being a Member of Parliament of Sri Lanka, and also contesting President J.R. Jayawardene at the ensuing Presidential Election in 1982.

    Consequently, shortly thereafter United National Party Chairman, N.G.P Panditharatne recommended me to be appointed in 1977, as a Director of the monopolistic I State Pharmaceutical Corporation, to which Dr. (Mrs.) Gladys Jayawardene, wife of the brother of President J.R. Jayawardene, was appointed as Chairperson. In addition to others, Dr. Gamini Wijesekere, who later became a General Secretary of the United National Party, was also appointed as a Director thereof.

    Image3080.JPG

    Dr. Gamini Wijesekere too succumbed to a terrorist bomb at a Presidential Election rally in 1994 of the United National Party Presidential candidate, Gamini Dissanayake, the charming Minister, who was in charge of the gigantic and complex Mahaweli River Development Scheme.

    Ranil Wickremesinghe’s ‘futile’ attempt !

    Upon my appointment in 1977, as a Director of the State Pharmaceutical Corporation, Ranil Wickremesinghe, who was then a Deputy Minister and a nephew of President J.R. Jayawardene, had instilled certain doubts, vis-à-vis, my bona-fides in the mind of Dr. (Mrs.) Gladys Jayawardene, Chairperson of the State Pharmaceutical Corporation, in the context of I having spearheaded the campaign to get Gamini Wickrananayake of the Sri Lanka Freedom Party elected, as the President of the Institute of Chartered Accountants of Sri Lanka, defeating a Chartered Accountant, who handled the personal affairs ofPresident J.R. Jayawardene.

    Dr. (Mrs.) Gladys Jayawardene having made inquiries concerning this matter, had been severely reprimanded by the Chairman of the United National Party N.G.P. Panditharatne, at whose behest I had championed the election of Gamini Wickramanayake to be the President of the Institute of Chartered Accountants of Sri Lanka. Consequently, Dr. (Mrs.) Gladys Jayawardene hosted me and my wife at her residence for Dinner, and she was very apologetic for having been misled by young Ranil Wickremesinghe, condemning his such surreptitious endeavour.

    In the context of such despicable incident, having known Ranil Wickremesinghe quite well for some time, I distanced myself from him. Ironically, whenever she went abroad, Dr. (Mrs.) Gladys Jayawardene called upon me to function, as the Chairman of the State Pharmaceutical Corporation.

    This knowledgeable energetic lady was ruthlessly killed in broad daylight during the Southern insurrection of1989.

    My role at the Sri Lanka Central Transport Board

    Just over two years after my appointment, as a Director of State Pharmaceutical Corporation, I was appointed in 1980 by President J.R. Jayawardene, to be the Director in charge of Finance of the all-island Sri Lanka Central Transport Board. President J.R. Jayawardene, having through executive action suspended the Regional Transport Boards, vested the management and control of the entire all-island Bus Transport operation, in a 5-Member Executive Board of the Sri Lanka Central Transport Board, with Dr. Gamini Wijesekere, as Chairman, who also when overseas required me to function, as Chairman.

    My contribution to the Sri Lanka Central Transport Board, managing the all island bus transport service was recognized by the then Minister of Transport, M.H. Mohamed, who paid the following tribute in Parliament to Chairman, Dr. Gamini Wijesekere and me, as recorded in the Hansard of Parliamentary Debates of 19th December 1981,at Column 4311:

    "I must congratulate my Secretary and Chairman Dr. Gamini Wijesekere-and the Finance Director Mr. Nihal Ameresekere-he is a Chartered Accountant and a very efficient accounting officer. By his advice the Chairman was able to achieve this.

    We have also decided to pay Rs. 300 as bonus to all our workers. It is not necessary to make big profits. We have been paying in the past Rs. 217. I brought this matter up before the Cabinet, and the Board has decided to pay the workers a sum of Rs. 300 as bonus from this year.

    Now the accounting system has been changed, and they have brought about lot of restrictions and controls. As pointed out by the Hon. Deputy Minister for Trade, and on their advice, we have been able to make certain strict controls. By doing this we have been able to bring down the losses.

    Some of the things they have introduced are, the improved method of cost controls, the improved method of inventory controls, reduction of stocks, voluntary retirement schemes, improved method of security and prevention of frauds. I am happy about it, and I must congratulate my Secretary and the Chairman and the Board for doing a wonderful job."

    My professional work at the Sri Lanka Central Transport Board, also received commendations from missions of international agencies, who visited the country to examine, review and evaluate the work in the State sector in Sri Lanka at that time. Such commendations are borne out in the following communication, which was addressed to me on 8th June 1983 by S. Somasundram, Director, Public Enterprises Division, General Treasury, Sri Lanka, to which communication however, I refrained from responding. I also won the ‘Top Ten Young Persons Award for Business Management’ 1983/84.

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    As a Director overlooking the finances of the State Pharmaceutical Corporation and the Sri Lanka Central Transport Board, I had occasion to go before President J.R. Jayawardene, together with the respective Ministers and Secretaries of the Health and Transport Ministries and the Chairman of the respective two State Corporations, to participate in budgetary allocation discussions, with the Minister ofFinance, Ronnie de Mel and his Officials, presided by President J.R. Jayawardene.

    President J.R. Jayawardene permitted democratic discussion between the Line Ministry on its allocation requirements, and the Finance Ministry’s limitation of providing funds, and intervened very little, that too only when necessary, to bring about mutual consensus and agreement. I operated the Sri Lanka Central Transport Board applying stringentfinancial controls, without obtaining any funds from the Treasury to subsidize the operational costs of the Sri Lanka Central Transport Board.

    The subsequent Presidential Election of October 1982, was successfully contested by President J.R. Jayawardene against another candidate from the Sri Lanka Freedom Party, since the former Prime Minister wà formidable candidate Sirima Dias Bandaranaike was precluded as aforesaid from contesting. Thus President J.R. Jayawardene was re-elected for a second term, as President of Sri Lanka.

    Visits to Jaffna-Mayor Alfred Duraiappah’s killing by Velupillai Prabakaran

    The shrewd and cunning President J.R. Jayawardene wanting to maintain the status quo of the formidable 576th majority in the Parliament of Sri Lanka, conducted a dubious Referendum on 22nd December 1982 to extend the tenure of the same Parliament of Members for another term of Office. The said controversial Referendum was subsequently very adversely reported on by the Commissioner of Elections.

    During the two months preceding the Presidential Election of October 1982, I was appointed, as Chairman, Northern Regional Transport Board, encompassing Jaffna, Kilinochchi, Mullaitivu, Vauniya and Mannar Districts. I was to ensure that the Bus Transport service was functioning smoothly, without any disruption during such pre-election period. I resided in Jaffna at the very large residence of a Client of mine, late A. Sangaran, an Indian businessman, who was the owner of the Subash Hotel, the only large and very popular Hotel in Jaffna at that time-his large residence was adjacent to the Hotel.

    Whilst stationed in Jaffna, I travelled extensively across all the above Districts. I organized and addressed several meetings in support of the candidature of President J.R. Jayawardene. Together with the then Chief Organizer of the United National Party, K. Ganeshalingam, I organized seven main Election rallies in the Jaffna Peninsula, which were attended and addressed by President J.R. Jayawardene.

    In view of terrorist activities, which were prevalent even before that time, with the historic Jaffna Library with a vast collection of valuable rare Books and Manuscripts having been fully burnt in a barbaric act previously on 31st May 1981, causing grave pain of mind to the Tamil community, who had a passion for learning, I was afforded personal security, which however was abandoned on the advice of my Client, A. Sangaran, owner of Subash Hotel Jaffna, who asserted that he will personally ensure my safety, in disbanding my personal security. As a matter of fact, I felt no fear, even though I had 3 small kids at that time.

    I travelled in the Jaffna Peninsula and in the above Districts quitefeely. When United National Party Chairman N.G. P. Panditharatne sent Attorneys-at-Law, Daya Pelpola and Henry Jayamaha to visit Jaffna to meet and brief the respective Polling Agents, I took them around to various locations in Jaffna Peninsula, disbanding the Police escort, which had been pre-arranged for them. In fact, one night I took them to the Jaffna esplanade to listen to G.G. Ponnambalam Jr., who was a candidate contesting President J.R. Jayawardene at the Presidential Election, whilst he was addressing one of his large political rallies.

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    My professional practice necessitated me to visit Jaffna very regularly during the 1970s and early 1980s. I always stayed at Subash Hotel or at the large residence adjacent to Subash Hotel, of my Client, A. Sangaran, who after I resolved his long outstanding vexing tax problems, became very closely associated with me. Once he confided in me a very shocking cause, which led Velupillai Prabhakaran, who later became the leader of an internationally banned terrorist organization into killing in July 1975, Alfred Duraiappah the then Mayor of Jaffna and a Member of the Sri Lanka Freedom Party, led by former Prime Minister Sirima Dias Bandaranaike.

    According to A. Sangaran, a young politician of the Sri Lanka Freedom Party had been used to staying at Subash Hotel during his visits to Jaffna, and had been in the habit of drinking heavily and being entertained by women late into the nights. Such conduct to A. Sangaran, a self-made dedicated religious businessman, had been shameful and despicable. However, given the status of the young politician A. Sangaran had been helpless.

    According to A. Sangaran, the Mayor of Jaffna, Alfred Duraiappah, used to visit the young politician to curry favour and had been only encouraging such shameless conduct. One such night, one of the women who had been compromised to so entertain the young politician, had been a cousin of Velupillai Prabhakaran. It had been this incident, according to A. Sangaran, which apparently had led to Velupillai Prabhakaran committing his first murder in shooting the Mayor of Jaffna, Alfred Duraiappah, who was on his way to a Hindu Temple for prayers. This major incident in July 1975 gave impetus to the growth of the terrorist movement led by Velupillai Prabhakaran.

    Having known A. Sangaran, I do not think that he concocted such story-of all persons to me, who had won his respect. Later in life, having come to know the concerned young politician of the Sri Lanka Freedom Party, I realized that this indeed was a real possibility.

    During my recent visit in July 2012 to Jaffna for my Book presentations to the Libraries of Jaffna, I visited his sons, who were re-developing the Subash Hotel, which had been occupied by the Armed Forces during the civil war, and which as a result had been completely ruined. They attended my Book Presentation Ceremony at the Auditorium of the Public Library Jaffna. Scanned below is the Letter I received from one son, which bears out the relationship, I had with his father, A. Sangaran.

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    Upali Wijewardene was to be the Minister of Finance !

    During early 1980s Philip Upali Wijewardene, a leading successful entrepreneur, and a cousin of President J.R. Jayawardene, who had been appointed, as the first Chairman of the Board of Investment of Sri Lanka, then known as the Greater Colombo Economic Commission, endeavoured to engage in politics, nursing a southern electorate of Sri Lanka.

    It is indeed poignant, that only I, and a very few other persons, were aware that Philip Upali Wijewardene was flying back in his own Learjet Aircraft on 13th February 1983 from Kuala Lumpur, Malaysia to Sri Lanka, to assume political Office, as the Minister of Finance of Sri Lanka. (Overseas Corporate Structures, Which hide ‘Real Owners’-Foreign Business Empire of a Sri Lankan Entrepreneur ?-by same Author)

    As to how President J.R. Jayawardene had strategised the maneuver to effect this, I did not know. However, the then Chairman of the United National Party, N.G.P. Panditharatne, Precedent Partner, Ford, Rhodes, Thornton & Co. Chartered Accountants, who was also the Chairman of the Mahaweli Authority, confidentially disclosed such fact to me.

    A few days before 13th February 1983, N.G.P. Panditharatne, Chairman of the United National Party, summoned me to the United National Party Headquarters, and persuaded me, much against my personal wishes, to agree to accept Office, as Chairman People’s Bank, a major State Bank, with island-wide operations. N.G.P. Panditharatne was not a person, who would take ‘no ‘for an answer.

    It is during such discussion, that N.G.P. Panditharatne took out a piece of note paper from his shirt pocket and scribbled my name, as Chairman, People’s Bank, among other names of persons, which had been jotted down on the said note paper, to be appointed to other institutions, which came under the Ministry of Finance.

    Image3128.JPG

    It was on this occasion that N.G.P. Panditharatne confided in me, that Philip Upali Wijewardene was returning from overseas on 13th February 1983 to be appointed, as the Minister of Finance, and that the Heads of all institutions coming under the purview of the Ministry of Finance were to be changed, except the then Chairman of the Bank of Ceylon, Nissanka Wijewardane.

    However, Philip Upali Wijewardene tragically did not arrive in Sri Lanka on 13th February 1983, with his Lear Jet Aircraft, which had taken off from Kuala Lumpur Airport, Malaysia, having crashed shortly after take-off, resulting in a major, but fruitless, search for the wreckage and the bodies, having been initiated by President J.R. Jayawardene, with the assistance of several foreign countries.

    (Overseas Corporate Structures, Which hide’Real Owners’-Foreign Business Empire of a Sri Lankan Entrepreneur ?-by same Author)

    Subsequently in May 1983, I was involved in organizing the by election campaign of Dr. Gamini Wijesekere, who contested the Maharagama electorate. He, being an honourable gentleman, staunchly resisted in resorting to malpractices, which were prevalent at elections at that time, and as a consequence, he lost, in endeavouring to keep his election campaign clean. However, he continued to hold the Office, as the General Secretary of the United National Party.

    ‘Barbaric’ Ethnic Riots of June 1982 and the Birth of the Hilton Hotel

    After the re-election of President J.R. Jayawardene in October 1982, as the President of Sri Lanka, in July 1983 mysteriously and unexpectedly, the then prevalent ethnic conflict suddenly exploded into barbaric riots, particularly in the City of Colombo, where houses and business premises of the Tamil community were set ablaze. This appeared to have been unleashed by organized gangs of goons. For about a week President J.R. Jayawardene was seemingly out of control. This despicable ethnic riots of July 1983 very badly blemished and tarnished the international image of Sri Lanka.

    Since the early 1980s, C.L. Perera, Chairman, Cornel & Co. Ltd., a Client of mine w as endeavouring to moot the promotion and development of a Hilton Hotel in Colombo, for which the Cabinet of Ministers of President J.R. Jayawardene had allocated a 7 acre block of Land in the heart of the City of Colombo. By March 1983, preliminary agreements and schematic plans had been finalized, with the main promoters having been Cornel & Co. Ltd., Mitsui & Co. Ltd., Taisei Corporation, both of Japan and Delmege Forsyth & Co. Ltd. A separate new

    Image3135.JPG

    Company, Hotel Developers (Lanka) Ltd., (HDL) then known as Lanka Japan Hotels Ltd., was incorporated to implement his Hilton Hotel Project.

    The key persons involved in the promotion and formulation of the Colombo Hilton Hotel were C.L. Perera, F.G.N. Mendis, M. Radhakrishnan and me. Kanko Kikaku Sekkeisha Yozo Shibata & Associates of Japan prepared the Schematic Plans, and later the Architectural Plans, with technical assistance from Hilton International, US, who also formulated a 10-year profitability forecast. By March 1983 only thefinancialpackage waspending to be tied-up.

    After the barbaric ethnic riots of July 1983, to repair the tarnished image of Sri Lanka, President J.R. Jayawardene showed great keenness to have the Colombo Hilton Hotel project implemented at the very earliest, to demonstrate to the world, that two leading Japanese Companies, namely Mitsui & Co. Ltd., and Taisei Corporation, and the renowned Hilton Hotel chain of the US had confidence in establishing a 5-star luxury City Hotel in Colombo, Sri Lanka.

    In this connection, I personally, together with C.L. Perera and M. Radhakrishnan, Attorney-at-Law, attended several meetings of the Cabinet of Ministers, presided by President J.R. Jayawardene, to apprise of the progress being made, and the obstacles faced in fast tracking the Colombo Hilton Hotel project forward towards implementation.

    It is in the foregoing circumstances, that the Government of Sri Lanka readily became a party to an Investment Agreement, and agreed to issue State Guarantees in order raise the funding required, to implement the Colombo Hilton Hotel project, which had already been formulated. Hence with great speed, the Colombo Hilton Hotel Project went into implementation within 8 months after the barbaric ethics riots of July 1983, with construction commencing in March 1984.

    The Colombo Hilton Hotel opened for soft operations in July 1987. The Ceremonial Opening of the Colombo Hilton Hotel in September 1987 was graced by President J.R. Jayawardene and Prime Minister R. Premadasa and several leading personalities from Japan and from the Hilton Hotel chain.

    (Colombo Hilton Hotel Construction-Fraud on Sri Lanka Government—Vol. 1—Sri Lanka’s First Derivative Action in Law—by same Author)-(Colombo Hilton Hotel Construction-Fraud on Sri Lanka Government-Vol. 2-Criminality Exposed, but Perversely Covered-up-by same Author)-Colombo Hilton Hotel Construction-Fraud on Sri Lanka Government Vol. 3-Settlement of a Fraud—by same Author)-(Socio-Political Realities-Hilton Hotel Fiasco & Ad hominem Legislation-Expropriation Law—by same Author)

    In the context of my Business & Management Consultancy practice having developed, and with my work for the public sector in an honorary capacity, I did not have adequate time to supervise my professional audit practice, as a Chartered Accountant. Hence in 1982 I sold and transferred my audit practice to Ford, Rhodes, Thornton & Co. Chartered Accountants of which N.G.P. Panditharatne was the Precedent Partner.

    The modus operandi was to admit on 1st January 1982 the Partners of Ford, Rhodes, Thornton & Co. Chartered Accountants to

    Image3143.JPG

    my professional audit practice, under the name Nihal Sri Ameresekere & Co., Chartered Accountants, and for me to resign there from, as a Partner from 1st July 1982, and continue to be a Consultant for a further period of two years, to ensure that the Clients were smoothly serviced-viz:

    Image3150.JPG

    Subsequently in 1985 the University Grants Commission of Sri Lanka appointed me, as a Member of the Council of the University of Sri Jayewardenepura, Sri Lanka, which afforded me an opportunity of interacting with academicians and intellectuals, comprising the University fraternity. This was quite a different experience from interacting with the professionals, business community, bureaucrats and politicians !

    Political Involvements & Southern Insurgency of 1989

    As had been requested by the Chairman of the United National Party, N.G. P. Panditharatne, one of my Companies, since early 1980s had appointed Harsha Abeywardene, as a Director thereof, and had paid a monthly allowance to him. Harsha Abeywardene at first was the General Secretary of the United National Party, and after N.G.P. Panditharatne stepped down, Harsha Abeywardene was appointed Chairman of the United National Party. Such monthly allowance was paid, since the United National Party could not pay him a satisfactory allowance for full time work, first as the General Secretary, and later, as the Chairman of the United National Party.

    Though having had such very close connections with the hierarchy of the United National Party, I am proud that I am able to say, that never ever had I requested and/or received any political favour or undue advantage, whatsoever, from any of the Governments of the United National Party, notwithstanding I having rendered invaluable services to the best of my ability, incurring my own costs.

    Whilst holding the Office of Chairman, United National Party, on 23rd December 1987, Harsha Abeywardene was shot dead by a Southern insurgent, whilst he was been driven in the morning from his residence to the Headquarters of the United National Party. I met him that very morning at the Galle Face Green walk, a popular sea side walk way in the City of Colombo. He also spoke to me on the telephonejust before leaving his residence that morning to his Office at the Headquarters of the United National Party.

    At the time Harsha Abeywardene was shot dead, I was at the Treasury discussing matters pertaining to the Colombo Hilton Hotel, which had commenced operations in July 1987, with Director, Economic Affairs, Dr. A.C. Randeni and M.T.L. Fernando, Precedent Partner, Ernst & Young, Chartered Accountants, who had been appointed a Director of HDL by the Government, concerning certain apprehensions I had entertained on the correctness of the construction of the Colombo Hilton Hotel-

    (Colombo Hilton Hotel Construction-Fraud on Sri Lanka Government—Vol. I to IV—by same Author). My wife Lilamani, who

    had got very uneasy and concerned upon hearing of the assassination of Harsha Abeywardene, with whom I used to move about very closely, telephoned and urged me to come back home promptly.

    I, together with certain others attended to the difficult task of getting Harsha Abeywardene’s corpse released from General Hospital Colombo, after the postmortem examination, since being 23rd December, eve of Christmas, the relevant medical personnel were not readily available. We had Harsha Abeywardene’s corpse removed to a funeral parlour, and dressed up and placed in a coffin. The very same night we took Harsha Abeywardene’s coffin to his residence, which was a very traumatic experience, in facing his father and his wife, with Harsha Abeywardene having three teeny weeny kids.

    Prime Minister R. Premadasa was personally present during the night at the funeral parlour. President J.R. Jayawardene sat by Harsh Abeywardene’s coffin the next day, with a stony expressionless face. It is true that fear psychosis did prevail, but I was amazed that only one or two Ministers of the Government of the United National Party came to the General Hospital to assist, revealing the reality in politics. Whilst he was Chairman, United National Party there were people regularly at his residence, like bees in a hive. However, after his death there was hardly anyone to assist the young family. The school, S. Thomas College, Mount Lavinia provided a scholarship for one son, whilst I provided a scholarship for the other son to complete his education.

    In 1989 the Southern insurgency of 1971, raised its ugly head again, massacring several persons, including politicians, journalists, academicians et al; and instilling a fear psychosis in society. Even the transport sector stopped and townships closed, on the mere distribution of warning letters by these Southern insurgents.

    Two of the people personally known to me, who were assassinated during this time were the Chairperson of the State Pharmaceuticals Corporation, Dr. (Mrs.) Gladys Jayawardene, with whom I had been a Member on its Board of Directors. She was shot dead whilst travelling from the Office to her residence for lunch. She was the wife of the brother ofPresident J.R. Jayawardene.

    The other person, who was shot dead, also in broad daylight, was my Client, K. Gunaratnam. He too, was going from his Office to his residence for lunch. Prior to leaving the Office for lunch, he telephoned me, as the Management Consultant to his Group of Companies, to discuss some business matters. I was travelling to the United Kingdom that evening, but I cancelled my trip, and again got involved in getting the release of his corpse from the General Hospital, Colombo.

    K. Gunaratnam was one of the worst economically affected persons previously during the despicable ethnic riots of July 1983, having to traumatically flee from his residence in the middle of the night of 22nd July 1983, to escape marauding mobs, and seek refuge at the then Holiday Inn Hotel in the City of Colombo, of which he was a Director.

    His factory complex at Hendala, in the outskirts of the Colombo City, which had a Corrugated Carton Factory, Plastics Factory and a Film Studio were fully scorched. Due to the large stocks of paper and plastics the fire lasted for almost

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    two weeks, and in the process 96 brand new Picanol weaving looms, which had been imported from Belgium a few days previously and stored at this Hendala Factory Complex for his state of the art textile factory, and were awaiting installation by the Belgium Engineers, who were to arrive shortly, were completely destroyed. Another film studio in the City of Colombo, together with the collection of Sinhala films produced by him was totally destroyed, whereby the Sinhala film industry lost all copies of some invaluable films, which had been produced by him.

    The fear psychosis resulted in the funeral arrangements being handled by a Committee, who met at my Office, assisted by Gamini Fonseka, the doyen Film Actor of the Sinhala Film industry. He and I openly organized the funeral arrangements, and walked with the children of K. Gunaratnam in the funeral possession, regardless of cautioning by several persons, and undeterred in the face of the fear psychosis created by the Southern insurgents.

    World Bank Assignment

    At that time during 1989, the transport system of the country came to a virtual standstill, also due to the fear psychosis created by the Southern insurgents, resulting in the killing of about 135 bus crew, who endeavoured to defy warnings by the Southern insurgents, not to operate the transport system.

    This situation led to the decision by the then United National Party Government of President R. Premadasa to break up the Sri Lanka Transport Boards, which was a complex giant, and to privatize the truncated depots and workshops. London Transport International (from East London Bus & Coach Co. Ltd.) funded by the World Bank had already tendered a report on the initial policy recommendations for such purpose.

    It was at that very time, during a visit in October 1989 to the World Bank Headquarters in Washington DC, USA, for a discussion in relation to a certain development project in the Railway transport sector in Sri Lanka, which I was working on, that the Officers of the World Bank, having recollected my previous work in the early 1980s at the Sri Lanka Central Transport Board, which had been commended upon, invited me to undertake a major re-structuring assignment of the island-wide Bus Transport Sector in Sri Lanka, on a project funded by the World Bank.

    Consequently, I headed, as the Senior Consultant, a Team of Consultants, who I was permitted to enlist at my sole discretion, to re-structure the Bus Transport Sector in Sri Lanka, interacting with the Ministry ofFinance & Planning and the Ministry of Transport. This restructuring project did not reach the envisaged conclusion, as had been planned, due to the General Elections of 1994, which brought the downfall of the United National Party Government, and the People’s Alliance Party coming to power to form a new Government. This resulted in the second stage of such restructuring process having to be abruptly abandoned.

    I was deeply committed to developing and streamlining the island-wide bus transport service, which catered to the larger strata of ordinary people in the country, spread out island-wide. Their only mode of transport at that time was the bus, replacing the traditional bullock cart. The State bus service sector, which onetime was a monopoly, had a well scheduled bus service, operating round the clock, with a bus fleet of around 9000 buses.

    The price for the import of a fully built bus was around SL Rs. 950,000/-at that time, equivalent then to US $ 18,500/-. If the entire bus fleet catering to the vast majority of poor people was replaced, with import of new buses, for which a 35% discount could have been easily obtainable from the Suppliers, for such a large fleet supply, essentially from the Indian companies, Ashok Leyland and TATA, it would have cost in total around SL Rs. 5,265 million, then equivalent to US $ 127 million.

    Nevertheless, it was indeed appalling to witness the Government in power prioritizing investment to cater essentially to the upper echelons of society, giving rise to the intriguing question, as to what drove the investment for the purchase of five Air Bus aircrafts, reportedly at the published price of US $ 96 million for an aircraft ? The price of one aircraft alone, which catered to a minute segment of the upper echelons of society would have been adequate to replace almost 88% of the all island bus fleet, catering to millions of poverty stricken people.

    The World Bank in its Public Expenditure Review published in December 1993, inter-alia, stated as follows in this regard:

    76. In air travel, the major public investment issue is Air Lanka’s planned purchase of Airbuses. Air Lanka’s financial standing will be damaged, with attendant consequences on the government budget and the country’s balance of payments, by the recent contract with Airbus Industry for the purchase of five A340 aircraft. These aircraft are part of the fleet renewal to meet the strong market growth it projects. Its operating fleet now comprises the A320 recently put into service in replacement of a leased Boeing 737-20, four owned Lockheed Tristar L 1011s and three leased L 1011 s. The fleet is overstretched operationally, with insufficient turn-around times between flights and too many stops on European routes while punctuality and reliability are poor. The A320s appears reasonably suited to the airline’s medium-haul rout system and economically competitive with other options. In contrast, the A340s are designed for long routes and are inappropriate for an airline with Air Lanka characteristics. The purchase of the A340s, valued at around $us 600 million, will substantially erode Air Lanka’s net worth, invariably require government support in the form ofguarantees and debt service, and impact considerably on the country’s balance of payments.

    77.   The Government is in the process of renegotiating the contract with Airbus Industry and examining all option options. These include reconfiguration of the existing fleet, and leasing of planes suitable for Air Lanka’s route structure. In parallel, the Government is considering privatizing the airline. International experience indicates that undertaking large new investment before privatization is practically always unwise, which reinforces the above arguments against the A340s.

    78.   The major public investment issue in bus transport is the purchase of the bus kits. The Government arranged for the import and assembly of kits for some 4,650 buses at a cost of Rs. 7.7 billion on the grounds that the privatized bus sector is financially unable to buy buses to meet a perceived shortfall. The assembly program is to last two years, but appears to be conceived as the first phase of a longer-term program. Assembly was justified in preference to the importation of finished buses on employment grounds, particularly bearing in mind the future of the 1,500 or so workers at the workshops of the former Ceylon Transportation Board (CTB). As these operations are not economically viable, they should be discontinued once present contracts have expired. Moreover, the Costs of these operations should be borne directly by the budget, rather than by the state-owned banks. This would place the investment in the context of a transparent and hard budget constraint, and would keep potentially risky loans off the balance sheet of the state-own banks. Finally, the quality of investment could be best assured by fully privatizing the bus companies.

    The foregoing demonstrates, not only the prioritization of investment on aircraft, as opposed to buses, but also the import of assembly kits for buses; which were steel body kits from the United Kingdom, in ready to assemble form, with chassis imported. Until then only chassis were imported, and bus bodies were built with imported aluminium sheets / formwork, at two major State owned aluminum bus body building industrial complexes. Aluminium being lighter was fuel efficient. In addition 60% of the road networks at that time in Sri Lanka were in coastal areas, with steel bus bodies being more susceptible to corrosion, than aluminum bodies. The result was that the well-established aluminium bus body building industry was compelled to be shut down !

    Then Deputy Secretary to the Treasury, K. Shanmugalingam, addressed an explosive missive in June 1993 to then President D.B. Wijetunga, inter-alia, raising the cogent question, as to how Air Lanka purchased such aircraft at US $ 96 million each, when he had been informed by an international banking syndicate, that Vietnam at that very time, had purchased similar aircraft for only US $ 66 million. He also queried, as to how Air Lanka had entered into a financing agreement in this connection at an interest rate of 8.9% per annum, when the then prevalent interest rate was around 6.0% to 6.5% per annum.

    In his Memo to President D.B. Wijetunga, Deputy Secretary to the Treasury, K. Shanmugalingam,

    inter-alia, stated-"Public Funds are not one’s patrimony. They had to be accountable to Parliament and ultimately to the people of the country for what they are doing with Public Funds" President D.B. Wijetunga, was a Member of the United National Party, who had succeeded in Office, as the President of Sri Lanka, under and in terms of the Constitution of Sri Lanka, consequent to the brutal assassination by a terrorist bomb on 1st May 1993 of President R. Premadasa, however took no action, whatsoever !

    USAID Assignment

    My work on the World Bank funded Bus Transport Sector Project was also commended by the powerful confidante of President R. Premadasa, namely, Secretary, Ministry of Finance & Policy Planning, R. Paskaralingam, who issued a Letter dated 26th October 1992 to USAID, endorsing the appointment of my Company, as then known, (now known as Consultants 21 Ltd.), as the Sub-contractor to a Washington based Consultancy Company, to promote the development of Economic Infrastructure Projects in Sri Lanka, on the basis of public-private partnerships-viz:

    Image3165.JPG

    I, together with the principal Consultants from Washington had previously carried out the initial ground work to moot the concept of public-private partnerships to develop economic infrastructure projects in Sri Lanka.

    The policy of adventing into developing economic and social infrastructure projects, on the basis of public-private partnerships was formally accepted by President R. Premadasa, who on 4th July 1992 submitted a Cabinet Memorandum, which was approved by the Cabinet of Ministers on 15th July 1992 for the private sector participation in infrastructure development, on public-private partnership basis-viz:

    " CABINET MEMORANDUM

    MINISTRY OF POLICY PLANNING & IMPLEMENTATION

    PRIVATE SECTOR PARTICIPATION IN INFRASTRUCTURE DEVELOPMENT

    Since it is the declared policy of the Government to encourage private sector investment in economic development as a means of generating employment, raising the income levels of the people and alleviating poverty, the improvement of the infra-structure facilities such as the transport network, telecommunications, power generation, water supply and waste disposal systems to generally accepted international standards has become a matter of urgency. A well developed physical infrastructure is a vital component which the investors look for as a pre-condition for investment.

    The ability of the Government to finance infrastructure development is limited by the constraints on its local financial resources and the increasing world-wide competition for limited foreign donor assistance. Also, there are the competing demands on Government resources arising from the need to maintain a minimum of social welfare. Hence the development of the infrastructure facilities through other means would relieve the Government of its responsibility to some degree and prepare the ground for higher levels of private sector investment in other sectors.

    A strategy with considerable potential which the Government can adopt for this purpose is to invite private sector investment, both local-and foreign to build infra-structure facilities and operate them as commercial ventures for an agreed period subject to performance conditions laid down by the Government. During this period the investor is expected to recoup his capital and repay the project debts. At the end of this period, during which the investor would have the benefit of some incentives and concessions, the facility may either be transferred to the Government free of charge or the investor may be allowed to operate it for a further period on mutually agreed terms.

    There are many variants of this strategy which the Government may adopt, but the commonly adopted forms are to :

    i.   Build, Own and Operate the facility (BOO)

    ii.   Build and Operate the facility for some time and transfer it to the Government (BOT)

    iii. Modernize a facility, Operate it and Transfer it to the Government (MOT)

    The overall strategy is generally referred to as the BOO/BOT Program.

    The following are some of the advantages of the Program:

    i.   Enables the establishment of facilities which, if not for the program, would not materialise

    ii.   No financial and debt burdens and risks to be borne by the Government

    iii.   Transfer of technology and know-how and upgrading of standards of cost and operational efficiency in the country

    iv.   Multiplier effect on employment generation etc. Apart from the direct benefits under the infrastructure projects, the development of these projects would pave the way for new investments with the attendant benefits.

    Some infrastructure facilities developed in other countries using the BOO/BOT principle and for which the potential may ,exist in this country are power generation (to sell power to the national grid) I water supply, drainage and waste disposal schemes (to sell the product/ service to users), toll roads/airports/harbours/car parks (to charge fees from the users) and telecommunications preferably in partnership with Sri Lanka Telecom.

    The implementation of the BOO/BOT Program would be a complex process which would include the evaluation of the proposals against the approved guidelines and criteria, securing the necessary approvals and overseeing their implementation. This would require the settng up of a focal point with necessary expertise and skills which will work with the line Ministries and co-ordinate, oversee and monitor the entire program. It has been proposed, with the concurrence of the Ministry of Industries, Science and Technology that this unit which will be called the Secretariat on Infrastructure Development and Investment (SIDI) be established within the Ministry of Policy Planning and Implementation. The work of SIDI will be directed and overseen by a Sub-committee of the Industrialization Commission.

    A set of draft Programme Guidelines for BOO/BOT Projects developed with assistance from the USAID and approved bythe Industrialization Commission will be circulated shortly.

    Once the policy of adopting the BOO/BOT strategy for the development of the infrastructure is accepted the policy and guidelines will be made known to the Ministries, Govt. Departments and Corporations and prospective investors so that suitable projects may be identified and developed.

    The approval of the Cabinet is sought for:

    i.   the policy of securing private sector participation in the development of the economic infrastructure on the lines of the BOO/BOT principle;

    ii.   to issue draft Program Guidelines;

    iii.   the establishment of the Secretariat for Infrastructure Development and Investment (SIDI) within the Ministry of Policy Planning & Implementation to co-ordinate and oversee the BOO/BOT programme; and

    iv.   initiating action to identify and develop sui table projects, in consultation with the relevant line Ministry/Agency.

    (Sg.)

    R. PREMADASA,

    MINISTER OF POLICY PLANNING &

    IMPLEMENTATION.

    Sethsiripaya,

    Battaramulla.

    July 4,1992. "

    About 9 months thereafter, President R. Premadasapre-maturely succumbed to a heinous terrorist bomb attack on 1st May 1993. The above strategic proposal he approved, with the sanction of the Cabinet of Ministers in July 1992, proceeded with, and by 1993 a Secretariat was successfully established and operational, supported by my Office, to promote and develop, on public-private partnership basis, several infrastructure projects in different sectors, such as highways, power generation, railways, ports, telecommunications, potable water, waste disposal, et al, on a project funded by USAID.

    A comprehensive Brochure identifying the infrastructure projects in the several sectors and Guidelines for establishing public-private partnership projects were developed. This Brochure and the Guidelines were publicly formally launched by then Prime Minister, Ranil Wickremesinghe, who assumed such Office, after Prime Minister D.B. Wijetunga, constitutionally assuming Office, as the President of Sri Lanka, consequent to the brutal assassination of PresidentR. Premadasaon 1st May 1993.

    Litigation on the Hilton Fraud, with Political Implications

    In the meanwhile in September 1990, I had instituted, as a Shareholder of the owning Company of the Colombo Hilton Hotel, namely HDL, a derivative action in law, concerning a fraud in the construction of Colombo Hilton Hotel, which had been funded on State Guarantees issued by the Government of Sri Lanka. The District Court having previously issued enjoining orders in September 1990, issued interim injunctions in October 1991, restraining any payments, whatsoever, being made to the Japanese Consortium, namely Mitsui & Co. Ltd., and Taisei Corporation, who constructed and developed the Colombo Hilton Hotel, on a fixed price turn-key basis.

    The Supreme Court of Sri Lanka in December 1992 upheld my above derivative action in law, as a serious case of prima-facie fraud, holding that in the given circumstances, the Government of Sri Lanka could not be indifferent, and endorsed that the interim injunctions had been issued ‘ to prevent the devious syphoning of a large scale of foreign exchange from the country’. I had instituted this legal action, with the full knowledge and concurrence of the then State Minister of Defence and General Secretary of the United National Party, Ranjan Wijeratne. (Colombo Hilton Hotel Construction-Fraud

    on Sri Lanka Government—Vol. 1—Sri Lanka’s First Derivative Action in Law—by same Author)-(Colombo Hilton Hotel Construction-Fraud on Sri Lanka Government-Vol. 2-Criminality Exposed, but Perversely Covered-up-by same Author) (Colombo Hilton Hotel Construction-Fraud on Sri Lanka Government Vol. 3-Settlement of a Fraud—by same Author)-(Socio-Political Realities-Hilton Hotel Fiasco & Ad hominem Legislation-Expropriation Law—by same Author)—viz:

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    I obtained such concurrence of the General Secretary of the United National Party, Ranjan Wijeratne since one of the Defendants named in my legal action, as a wrong-doer Director of the Hilton Hotel owning Company, HDL, was an influential Member of the United National Party and a Member of Parliament K.N. Choksy, President’s Counsel, who at that time was appearing, as the Senior Counsel, in the Supreme Court of Sri Lanka for President R. Premadasa in the Presidential Election Petition Case filed by former Prime Minister Sirima Dias Bandaranaike, she having lost to President R. Premadasathe Presidential Election of 1989.

    Immediately after having filed on 13th September 1990 my derivative action in law, District Court of Colombo Case No. 3155/Spl., and the issuance on 17th September 1990 of enjoining orders restraining any payments, whatsoever, being made to Mitsui & Co. Ltd., and Taisei Corporation by HDL or by the Government of Sri Lanka, under State Guarantees issued, in view of certain personal security concerns, I proceeded to the United Kingdom, to stay away for a short while.

    On my return from the United Kingdom end October 1990, Air Lanka (former Sri Lankan Airlines) upgraded me to First Class, since it was cheaper to do so, than from me to have paid for my excess baggage, which comprised Books for my children, who had been transferred to international schools in the Colombo City at that time in 1989, amidst the insurgent activities by the Southern insurgents.

    Thus, I proceeded to the First Class Transit Lounge at the London Gatwick Airport. As I was walking in, I saw R. Paskaralingam, Secretary, Ministry of Finance & Secretary to the Treasury, seated together with Prime Minister & Finance Minister, D.B. Wijetunga and Sri Lanka’s High Commissioner

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