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COPE began its investigations on Friday June 5th, and we met every day the following week, except on the Friday – again my fault, for I had arranged another trip, our High Commission in Delhi having succeeded in getting visas for Azerbaijan. During the weekend I read the reports the Bank had prepared on the whole business, and found the situation even worse than I had thought. Because of Mahendran’s actions, the interest the country had to pay on bonds had shot up, so that not only had Perpetual Treasuries, the company associated with Mahendran’s son-in-law, made a massive profit, but also the interest payments Sri Lanka had to make on loans after February 2015 reached ridiculous heights.
Our questioning of bank officials revealed an even more sordid side to Mahendran’s machinations. The first Deputy Governor we interviewed seemed to me a very shady character, and not very bright. I actually asked Nivard Cabraal why he had promoted him, to which the answer was that he was good at some things, and had seniority on his side. But he knew nothing of debt, so it was suspicious that Mahendran had put him in charge of that area.
The Director in charge of that area also knew nothing of the subject, but my sister told me that she was known for her honesty. She had called my sister when she was transferred to that position, expressing worries about her capacity to handle the job, but my sister told her that integrity was vital and that was perhaps the reason for the move. Certainly she exuded decency, to the point of practically breaking down when we reprimanded her for not having told the Governor that it was wrong to take 10 billion worth of bonds when the advertised amount had been 1 billion, and the few bids for large amounts were at high rates of interest. She declared that they had told him this repeatedly and, though they stopped him from insisting on 20 billion being taken, he had been adamant about 10.
Her Deputy was a very smart young man, and it was clear that he had made the position clear to Mahendran, but they had been over-ruled. It transpired too that Mahendran had come down to the bidding floor twice that morning, and had interfered egregiously in the process. It was absurd therefore that the UNP lawyers had claimed that he had no direct responsibility for what occurred.
Other suspicious details included the fact that Perpetual Treasuries had obtained a loan from the Bank of Ceylon for its bid, and that this had been approved straight away with no proper assessment of the request. It was unprecedented that the Bank, which was also a primary dealer, should not have bid to any substantial degree for bonds, but had instead underwritten the bid of a private company. Read the rest of this entry »
There has been much exultation in some quarters in Sri Lanka about the conviction of Jayalalitha, but I was glad to see that at least some articles also noted the need for stringent measures in Sri Lanka too, to combat corruption. One article however missed the point, in citing as an example of what needed to be dealt with firmly the Ceylinco case.
The failure to deal with that swiftly, and provide compensation to the victims of the scam, is indeed appalling. But that failure has to do with the delays, not necessarily arising from corruption, of our judicial system. Certainly we also need measures to make our courts move and it is sad that those have been forgotten. Though it is featured in the Human Rights Action Plan, as far as I can see no one has bothered about that plan following my resignation as Convenor of the Task Force to implement its recommendations.
But that is a different issue, and what we are talking about in Jayalalitha’s case is the corruption of politicians. Now this is nothing new, and it also happens all over the world. I remember the scandals in Local Government in Britain when I was a student, more recently we had the horrors of the Bush administration dishing out contracts in Iraq to agencies in which senior officials had interests.
Nearer home however aggrandizement seems to be excessive. The Jayalalitha case is about disproportionate assets, and in Sri Lanka too it is the inordinate greed of those who are plundering the state which has skewered development plans whilst also contributing to the increasing unpopularity of the government. And sadly government seems to be conniving at this corruption, given the mechanisms it has set up this year, with no transparency, to spend public money. Read the rest of this entry »
An opposition member noted that recently there had been much speculation in the corridors of Parliament about the manner in which funds were being allocated for development. I had realized something unusual was going on, because during Reconciliation meetings in the North I had been told about massive amounts being made available to individual Members of Parliament.
I had not received anything myself, and indeed had to ask for the Rs 5 million that has been given each year to all Members of Parliament. I was particularly keen to have this available, because it was only recently that I realized that no one else spent even a modicum of what I did in the less populated Divisions in the North. I had decided that this year then I would spend the bulk of my funds, not split between North and South as previously, but largely in the East, because I realized there were also Divisions there which received little. But I am not sure whether I might not be forgotten, given the rush to spend the much larger sums that have been given selectively.
What the rationale for selection is I am not clear about, though I know that DEW Gunasekara has not received any, and it seemed Rauff Hakeem had received nothing either. I was told though that, when he complained about this to the President, it transpired that the latter was not aware of this and urged him to write in and ask. I have followed suit, but as yet have received no reply.
At a recent Consultative Committee meeting however, since the Minutes referred to the allocations, we were able to ask, and received a very clear picture of the manner in which the development budget allocated to the Ministry of Economic Development is being spent. It seems that large amounts have been allocated to government Members of Parliament who chair particular Divisional Development Committees, and they are asked to decide on Projects. This is of course not meant to be spent arbitrarily, but is supposed to be after due consultation of the people.
Military intelligence understands well that the diaspora is not a monolith. Indeed my interlocutor noted that only about 7% of the diaspora were supporters of the LTTE. But this made it all the more culpable that government has done nothing about working with the rest, the more than 90% who have wanted only for their kinsmen who remained in Sri Lanka to enjoy equal benefits with the rest of the population. The LLRC recommendation in this regard, about developing a policy to work together with the diaspora, has been completely ignored. Instead those who did well in this regard, such as Dayan when he was in Paris, were the subject of intelligence reports that drew attention critically to their work with Tamils. The fact that in theory this was government policy meant nothing, since very few others were doing anything about this, and there was no coordination of such efforts in Colombo.
Excessive zeal on the part of military intelligence seems to have caused other disasters. We had an excellent High Commissioner in Chennai, but he was summarily removed because, it was reported, the security establishment had criticized him. Similar reports were in circulation about the withdrawal of our High Commissioner in Malaysia, though he himself thought the Minister of External Affairs was the real villain of the piece.
In Chennai, no efforts had been made to engage in the dialogue that the High Commissioner, who was Tamil, tried to initiate. When I spent a few days there a couple of years ago, with my ticket paid for, not by government, but by an agency that had wanted me in Nepal but was willing to fund a journey through Chennai, I was told that I was the first senior representative of government who had gone there for such discussions. The academics and journalists who attended the meetings were willing to listen, but soon afterwards the High Commissioner was exchanged for a Sinhalese, and the initiative stopped. It was only a couple of years later that government finally got round to inviting the senior newspaperman Cho Ramaswamy to send some journalists to report on the situation, which High Commissioner Krishnaswamy had advocated much earlier. What they published made it clear that we had erred gravely in ignoring his advice for so long. The obvious benefits of having a Tamil in station in Chennai, which without him even doing anything made it clear that allegations of systemic discrimination against Tamils were misplaced, never occurred to a Ministry of External Affairs which seems more keen to assuage possible ruffled feelings within Sri Lanka than develop and implement a foreign policy that would take the country forward.
I have been wondering for some time about whether this column should also deal with the problems of university students. Last week, having found myself by far the oldest among the Sri Lankan delegates to a Conference on Indo-Sri Lankan relations held at Osmania University, and older too than most of the Indian participants, I realized I had to accept I was clearly of an age to think of university students, and indeed many lecturers, as children in need of care.
This feeling was exacerbated by the excellence of the presentations by the younger participants at the Conference. Whilst some older lecturers seemed to content themselves with jargon, the session I chaired had two very bright girls from Jawaharlal Nehru University who produced excellent and very practical papers on the Sri Lankan diaspora. They however were postgraduates, and from a place I have long known as a centre of excellence, admission to which is highly competitive. To my surprise they were equaled by two undergraduates from Patna University, who did a precise and well argued presentation on Indo-Sri Lankan trade relations.
I cannot imagine many Sri Lankan students doing as well. This is not because they are not equally capable. The problem is that we hardly stretch them, with many lecturers in many departments thinking that reading out notes to be copied constitutes teaching.
I make no apologies for returning yet again to the question of language rights. As I noted after my last visit to the North, for a series of Divisional Secretariat Reconciliation meetings, this remains one of the principal bones of contention in the Jaffna District. But it need not be, because the principles we should all be acting on are now clear, following the inclusion of Tamil as an official language in the constitutional reforms of 1987, and the fleshing out of those principles in the last couple of decades.
First, under President Kumaratunga, there were more inclusive language learning policies in schools in the nineties and then, most importantly, under this government, Minister D E W Gunasekara introduced language norms for public servants. I was not sure how well this was working so, at the previous meeting of the Parliamentary Consultative Committee on National Languages, I asked for a report on pass rates. We got this at the February meeting – or rather I did, and I had to point out that questions I raised were asked for the general benefit, not my own, so information should be shared with all my colleagues on the Committee.
I can see this might seem a waste of paper, since almost never do more than a quarter of the 31 members meant to be on the Committee attend, and many of those who do are concerned only with individual problems; but the principle was affirmed, and the Minister will now ensure that information is shared with at least all those who do attend. This is important, for this is something we should all be concerned with, as legislators and contributors to national policy.
After some depression about not achieving very much with regard to either Reconciliation, or the Human Rights Action Plan, I was heartened by several factors last week. In the four Divisional Secretariat meetings I attended in the Wanni, it was clear that things were improving all the time. Several problems were brought to my attention, but these were largely practical problems, similar to those prevalent in other parts of the country. The impact of inclement weather on agriculture, the need for better roads for rural connectivity, and for better electricity connections, shortages of teachers for essential subjects, are national problems, not consequences of the conflict.
Of course much more needs to be done for the people of the Wanni, given what they suffered, and for the first time I felt sad that I cannot contribute more to education, since the Ministry as it now stands is incapable of increasing teacher supply or ensuring better distribution. But, with regard to the other matters, there is much appreciation of progress with regard to roads and electricity, and also understanding that government paved the way through its support for agriculture for abundant harvests in the last few years, even though this year floods have caused problems.
I should note here the appreciation amongst officials and community organizations of the Japanese Peace Project, which has done much for small scale irrigation works in the last few years. A meeting at the Japanese Embassy later in the week confirmed my view of the intelligence and sympathy of their approach. Equally the Indian Housing Project has generated much confidence that things are getting better, though government must do more to publicize both that and the other large scale housing support provided by the military and other agencies, in particular the Swiss, who also work relatively quietly.