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An internationally reputed audit firm has made a damning indictment of Mihin Lanka, touted as Sri Lanka’s regional carrier, after examining its accounts for 2010 – 2011.

PricewaterhouseCoopers has said in the report to be tabled in Parliament that “The company had incurred a net loss of Rs. 940.49 million for the year and the company’s current liabilities exceeded its current assets by Rs. 1,083.92 million reflecting a Negative Networth of Rs. 3,814.45 million. This indicates the existence of a material uncertainty which may cast significant doubt about the ability of the company to continue as a going concern.”

This was whilst President Mahinda Rajapaksa announced in Parliament during his Budget speech that he had allocated US$ 50 million (more than Rs. 6,500 million) for next year for the fledgling carrier. Thrice that amount was also given to SriLankan Airlines which is also running at a massive loss.

Interesting enough, according to the annual report, the Chairman and the Chief Executive Officer (CEO) of Mihin Lanka have come up with their own response to the observation by the auditors. They both claim that the loss and Negative Net worth have been reduced compared to 2009. The loss in that year was Rs. 1,221 million and the Negative Net Worth was Rs 5,628 million.

Some highlights of Mihin Lanka’s performance in the accounting year 2010 – 2011: ” Mihin Lanka introduced the second aircraft to its fleet during the Financial Year, and opened services to three new destinations – Dhaka, Male and Jakarta.
” The revenue of the company was Rs. 3,142 million compared to Rs 1,700 million in 2009 – 2010.

” The operating expenditure for the year was Rs. 3,597 million, compared to previous year’s Rs 2,487 million, an increase of 45 per cent. Thus, it has become clear that Mihin Lanka is being heavily subsidised by the Government that is pumping a colossal amount of money. This is whilst continuing to give life support to SriLankan Airlines.

To overcome this state of affairs, Civil Aviation Minister Priyankara Jayaratne has directed that the airline update and implement the existing Business Plan, improve marketing and operational procedures and financial strategies. He wants the airline to reduce the losses so it could “run as a going concern.”

Ministers eye summit Benzes, but businessman offers ready cash for four

The super luxury Mercedes Benz vehicles imported duty free into Sri Lanka for the Commonwealth Heads of Government Meeting (CHOGM) have become the cynosure of some ministers.  On the grounds that the official vehicles they are travelling in are now old, they are staking their claims for the new – class Benz vehicles. Fifty four were imported but four of them are off the road due to accidents.

One minister was making inquiries whether it was a front company of a bureaucrat with business interests that imported these vehicles. If indeed that was the case, they say, he would be in for a large windfall. That is even if he pays the duty.

In another instance a senior Treasury official received a telephone call from a businessman. He asked whether the vehicles were for sale and the official said it was likely. Asked how much each would cost, the official had said it was likely to be around Rs. 35 million.

The businessman said he wanted to buy four vehicles. He had said that he would come up with Rs. 140 million in ready cash.
Asked by the official why he was going for these vehicles, the businessman said he would like to choose the ones used by VIPs like Australian Prime Minister Tony Abbot and Brunei’s Sultan Hassan al Bolkiah.

MR wishes his sharpest critic

Janatha Vimukthi Peramuna (JVP) Parliamentarian Anura Kumara Dissanayake, who turned 45 last Sunday, received an unexpected call on his mobile phone. It was from President Mahinda Rajapaksa. He conveyed his best wishes to Mr. Dissanayake. The latter thanked him and was to seize the opportunity to query the President.

Dissanayake, one of the sharpest critics of the Government, asked which election President is planning to hold first.”Eka parata chanda deka thunak thibboth ogollanta karadarai neyda? Eya nisa mey para basnahira thiyala ithuru ewa passe thiyenawa. (It is difficult for you if I hold two to three elections together, isn’t it? So, I will first hold the Western Province election and others later).”

President Rajapaksa appears to have taken his public relations drive to new heights.

Minister threatens to shoot colleague and himself

The non-inclusion of the prodigal son in the national team angered one ministerial sort so much that he complained to the big boss.  ”Sir, I will shoot him and shoot myself,” he said in rage of anger over the conduct of his colleague who is in charge of the game of flannelled fools. It was all because his progeny has been not included in the national team that was to play the Black Cats from Down Under.

Big boss reacted with a broad smile. Before he could cool the man who is officially tasked with all mass media drives, a Sonna boy who had hung his gloves and taken to politricks intervened. ”Ova gana kalabala venne one naa. Ova sulu deval. Mama innavane. Mama oka harigassannan. (Don’t lose your cool over such small matters. I am there. I will sort it out for you,” he declared.

And he did just that. Now the first Sonna boy, known for his high altitude sickness, was promptly included in the national team by the second Sonna boy. It was as simple. And the VIP was full of praise for the interlocutor. “I am so grateful for what you did,” he said. “Oka mokadda,” or what is that, was the answer.

Another brothers’ company in Cabinet

There was political history in the making this week. For the first time, a Cabinet minister was sworn in outside Colombo by President Mahinda Rajapaksa.  Anuradhapura District UPFA Parliamentarian S.M. Chandrasena, a protégé of late Bertie Premlal Dissanayake, a one-time Chief Minister of the North Central Province, assumed office as Minister for Special Projects.

This was a portfolio once assigned to Mahinda Wijesekera who was badly wounded in a Tiger guerrilla suicide bomb attack when he was taking part in a mosque ceremony in Akuressa.  ”Mamai Basilui cabinet eke inna nisa Rajapaksa samagama kiuwa. Den oyai malli nisa aluth samagamak athi una Chndarasena sahodara samagama kiyala. (As Basil and I are in the cabinet, we were called ‘Rajapaksa and Company.’ Now because of you and your brother are in now, a new ‘Chandrasena and Company’ has been formed),” the President joked.

Mr. Chandrasena’s brother, S.M. Ranjith is the chief minister of the North Central Province and chief ministers are regularly invited to attend Cabinet meetings. Mr. Chandrasena had before the NCP elections resigned from the Cabinet, so that his brother could be appointed as the chief minister.

Resolutions of praise for CHOGM Chief

The Cabinet of Ministers on November 21 adopted a unanimous resolution congratulating President Mahinda Rajapaksa for becoming the Chair-in-Office of the Commonwealth. The resolution also praised him for the “highly successful” Commonwealth Heads of Government Meeting (CHOGM) held in Colombo two weeks ago.

UPFA sources said yesterday that UPFA-controlled local councils would also adopt similar resolutions to “express their gratitude to President Rajapaksa for bringing credit to the country.”

Buddhadasa refuses to take Wimal on board

Kaduwela Mayor G.H. Buddhadasa snubbed Housing and Construction Minister Wimal Weerawansa, this week.
Mr. Buddhadasa had been directed by UPFA leaders to invite the Minister for the ceremonial opening of the newly constructed bus station. It was declared open by President Mahinda Rajapaksa.

Mr. Buddhadasa ignored the directive and kept out his political arch-rival. Minister Weerawansa, a Colombo district Parliamentarian, has been at loggerheads with Buddhadasa over dispute arising from local polls in the area.

After the opening ceremony, President Rajapaksa visited a relative who lives in the area. Some UPFA politicians including ministers followed him.

A discussion about elephants ensued with the relative. They said that an elephant donated by Minister Weerawansa to the Sankapitti temple in Kaduwela ran amok trampling vegetation in a land belonging to the temple.

Minister Susil Premajayantha quipped that Mr. Buddhadasa might have unchained the elephant after learning the donation had been made by Mr. Weerawansa.