The petitioners, who successfully moved the Supreme Court to annul three privatization deals, are to urge the Government to appoint a special commission to probe other questionable sale of public property to the private sector.
Petitioner and public rights activist Vasudeva Nanayakkara, who on Thursday won his case in the Supreme Court against the sale of the Sri Lanka Insurance Corporation (SLIC) and earlier the fundamental rights petition on Lanka Marine Services (LMS), said he has several privatizations lined up for challenge unless the Government goes into these matters through the appointment of a commission.
Earlier the privatization of the Waters Edge golf and leisure complex, challenged by two other public spirited citizens, was also overturned by the court.
The Court on Thursday decreed that the SLIC should forthwith revert back to the State from the 90% stake purchased by businessman Harry Jayawardene’s consortium of companies. Soon after the judgment, the Treasury ordered the dissolution of the board of directors as per Court order and directed that the SLIC CEO and his staff will work under their direction. (See FT for comprehensive report.)
However questions are being raised as to how these former State institutions would be run when, in the first place, the very purpose of selling them to the private sector was because of mismanagement, corruption and political interference.
Former PERC Chairman and chartered accountant Nihal Sri Ameresekere, the 13th respondent who the Court noted made lengthy oral and written submissions to support the petition, said the Government should get some expertise to run SLIC.
He said there are international insurance companies the Government can seek to come in as strategic partners or even to come into an arrangement of management.
Mr. Ameresekere said he is not a proponent of privatization as these types of action have resulted in eroding public confidence. He noted that the fact that SLIC employees were celebrating after the judgment shows there was something wrong with how the company was run.
Former Committee on Public Enterprises (COPE) Chairman Wijedasa Rajapakse told The Sunday Times FT that the SLIC judgment completely endorses the findings of the COPE report. It was stated in Court during the reading of the judgment that the petitioner was prompted into filing a fundamental rights petition after details emerged in the COPE report.
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