Old rich, new rich and incoming rich
View(s):How does one acquire wealth? German-born sociologist and economist Franz Oppenheimer (1864-1943) says there are two ways of acquiring wealth – ‘political means’ through coercion, and ‘economic means’ through peaceful trade.
He says these are two fundamentally opposed ways “where man, requiring sustenance, is impelled to obtain the necessary means for satisfying his desires. These are work and robbery; one’s own labour and the forcible appropriation of the labour of others.”
Sri Lankan society today is governed by three categories: the old rich (many who acquired wealth through inheritance though questions are bound to be raised as to how those families acquired wealth), the new rich (a current breed of businessmen who rise to fame based on wheeling and dealing, powerful contacts and no hard labour) and the incoming rich (siblings of the new rich).
The acquisition of wealth through ‘robbery’ as described by Oppenheimer is largely what is happening today in the Sri Lankan state. It’s wealth acquisition through unbridled corruption.
Every deal, every contract, every negotiation comes at a price. For that matter, Colombo’s deal makers can teach a thing or two for the rest of the region on how to conclude a corrupt deal without getting caught. How? Involve the families of politicians in the pay-offs and one can be sure that whatever an investigation, all culprits go scot free.
In today’s deal-making, there is a middle-man or go-between and several others on the take for helping put a contract together. While in the private sector, it is often called ‘sales commission’ or simply a commission, in the public sector it’s simply a bribe or corruption because public money is involved.
Mega developer Krrish has figured in recent weeks in the deal-making environment with allegations that a highly placed public official who also serves on the boards of some private sector firms was given a pay-off. This week the ‘perpetrator’ (official) became the victim with the opposition United National Party (UNP) saying the unnamed official was under threat because he was the go-between for some powerful personalities including a ruling party politician and a businessman mired in debt in margin trading in the stock market.
In most cases, corrupt businessmen are drawn to dubious deals like magnets to make up for other financial losses.
Krrish has strenuously denied accusations of pay-offs, in a statement it sent to the Business Times last week and again, on Thursday in a statement in response to the UNP claim.
While investigations are continuing in the alleged 400 million-rupee pay-off scandal, there is strong indication of a cover-up and the official, whose name has been withheld being exonerated and furthermore continuing to remain in his current positions.
This is not a new scenario in Sri Lanka where many officials have got away during previous regimes too. The long arm of the law ignores these racketeers and white collar criminals. The opposition UNP is equally culpable in the past of whitewashing officials and politicians involved in white collar crime.
The scale of bribery and corruption is not in the region of a few millions (Rs 1 or 2 million). It is several millions and sometimes runs into a billion rupees. The law is applied only when it is convenient for Governments. A classic recent example is the case of former National Savings Bank (NSB) chairman Pradeepa Kariyawasam. Once a ruling party favourite and moving to the top NSB position after alleged irregularities at Sri Lanka Insurance which he headed, his fortunes changed after his wife, former Chief Justice Shirani Bandaranaike took on the President and the Government. A corruption case against Kariyawasam over a dubious stockmarket deal involving the NSB and The Finance Co (TFC) was initially hushed up but later resurrected after the chief justice got on the wrong side of the authorities.
In a letter published this week, a Sri Lankan Fred Rodrigo Sathianathen – now resident in Australia -, raises the plight of the depositors of the bankrupt HPT finance company. He says those guilty of swindling funds of depositors should forfeit their properties and wealth to the state.
“Justice delayed is Justice denied. We must leave this world a better place than it was found, as we are mere passengers in transit in this planet and leave all our wealth behind,” he writes.
All the wealth in the world will not save Sri Lanka’s white collar criminals as civil society keeps seriously engaging in these issues and demanding accountability from the Government. That time will come when true justice will prevail and the country’s resources protected instead of being squandered away in the name of development.
Follow @timesonlinelk
comments powered by Disqus