Columns

• Startling disclosures in exclusive interview with the Sunday Times; Avant Garde case becomes hilarious no case, no progress on MiG case also
• Sirisena says FCID, CID and CIABOC and other agencies must expedite investigations on mega cases instead of ‘carrom board’ cases
• Constitutional changes next year

By Our Political Editor

President Maithripala Sirisena who chaired last Tuesday’s weekly ministerial meeting at the Presidential Secretariat heard some bitter criticism from his ministers over the painfully slow pace of the Government’s drive against bribery and corruption.

President Maithripala Sirisena

For nearly an hour, the issue came to the fore in the aftermath of the parliamentary oversight Committee on Public Enterprises (COPE) findings on the February 27, 2015 bond issue by the Central Bank of Sri Lanka (CBSL). Its report, now public, reveals there was reasonable doubt that former CBSL Governor Arjuna Mahendran “made an intervention or used pressure” in the issue of the bonds. The report also said that Perpetual Treasuries Limited, once linked to Mahendran’s son-in-law Arjun Aloysius “obtained large financial profits in the sale of bonds.”

One of the critics of the Government’s slow pace on this score was Minister Patali Champika Ranawaka. He said ministers should not be lulled into the belief that matters arising from the bond issue have blown over. The ‘Joint Opposition’ may bring a vote of no-confidence on the Prime Minister Ranil Wickremesinghe, he said. “We will have to defeat such a political move intended to embarrass the Government,” he declared. However, he cautioned that ministers should not forget that the people would not have confidence in the Government if it did not uphold its main pledges during presidential and parliamentary elections to punish those responsible for bribery and corruption. In 2017, when elections are held to Provincial Councils in the East, Sabaragamuwa and North Central, voters may turn against the Government, he argued.

He said there was no purpose in state investigative agencies going after minor cases whilst those more serious ones were in limbo – a position which President Maithripala Sirisena underscored barely two hours later in an exclusive interview Tuesday with the Sunday Times. Ranawaka raised eye brows when he sounded a warning. He said he would have to decide on his political future if the Government did not bring to book the culprits involved in mega deals.

Another Minister who was equally critical was Rajitha Senaratne. He complained that there were several instances where large scale corruption during the previous Mahinda Rajapaksa administration was yet to be carried out or completed. Senaratne, who himself has to keep an appointment with the Bribery and Corruption Commission, cited the Greek Bond issue where the CBSL made placements as well as the oil hedging deal at the Ceylon Petroleum Corporation (CPC) where the losses amounted to millions of dollars or billions of rupees. He endorsed Ranawaka’s view that only less serious cases were being followed by the investigative agencies whilst progress on more serious cases was tardy. Senaratne later told a media briefing on Wednesday that the Government was looking forward to the motion of No-Confidence against the Premier. The ‘Joint Opposition’ was reportedly preparing for this. All MPs, both from the UNP and the SLFP, he said, would stand together to defeat it. He charged that the motion would boomerang on the sponsors “for every finger pointed at the Government, 25 would be pointed at them.”

The ‘Joint Opposition’ Leader Dinesh Gunawardena told the Sunday Times, “We are yet to take a decision on a no-confidence motion against the Premier. We will discuss this at the party leaders’ meeting on Tuesday (November and decide thereafter at a parliamentary group meeting.”
Whether the MPs backing Mahinda Rajapaksa will support the move also remains a question. Rajapaksa has taken up the position that the Government and not the Prime Minister alone should be blamed for the BCSL bond scam.

Minister and UNP General Secretary Kabir Hashim told the ministerial meeting that concrete action should be taken against wrongdoers including those behind the bond scam. Minister Dayasiri Jayasekera said that as a member of the COPE, he has sat through proceedings. Those responsible for the bond scam, he said, should be punished. Minister Mangala Samaraweera noted that some investigations involved time since they had to be carried out in different countries since a paper trail had been left behind by those responsible. He said personally he believed that monies of members of the Rajapaksa family were stacked abroad.

Premier Wickremesinghe pointed out that the COPE report had been sent to the Attorney General for follow-up action. President Sirisena who responded to the issues raised by ministers acknowledged that an independent probe into the bond issue would be necessary.
After the Cabinet meeting, President Sirisena sat down at his suite at the Presidential Secretariat for an exclusive interview with the Sunday Times. I asked him for his views on the CBSL bond issue and what he proposed to do. His reply:

“The COPE has a history. Most governments have not acted on COPE reports. According to information available, there have been issues about the Bond transactions since 2007/2008 period. Nobody spoke of them. Now we have received the COPE report concerning the issue with Arjuna Mahendran.

“It is the politicians who are debating on the issue according to their party positions on whether it is right or wrong. It (the findings) is not a decision given based on views of political parties. Since the report is out now, it should be submitted to an independent, impartial body which does not have politicians. That is my opinion. If somebody has done wrong, he should be brought before courts. Not only this incident, but investigations should also be done on Central Bank bond issues as well as other frauds in the past 10 years.

“Therefore, I expect an investigation covering a 10-year period regarding the bond issues of the CBSL. It will begin with investigations into the current case followed by other cases through an independent body. I believe that a judicial procedure will be advisable.

Q You mean it will not be a Special Presidential Commission of Inquiry?
A: I need to get legal advice to decide whether it should be a Commission or a one person judicial process and as to how it should be handled. However, politicians should stay away and it should be handed over to the judiciary to carry out an independent investigation. That is my expectation.

On Thursday, President Sirisena went public with plans to go for an “independent and impartial judicial process” at a meeting in Maharagama. A news release from his Media Secretariat said: “The investigation into the Central Bank bond issue should be free from political interference, President Maithripala Sirisena said, adding that the investigation regarding this issue will be directed for an independent and impartial judicial process. He made these remarks addressing the Inauguration Ceremony of SLFP membership promotion programme held in Maharagama, today (03).

“The President further emphasised that he stepped down from the previous government and established a new government with the support of all, not to allow one section in the society to do the erroneous things and to only punish some persons who did wrong things.
“Even though the COPE fulfilled their duties, respecting the laws of the Parliament and the Constitution, various opinions have been brought in this regard. Nevertheless a precise response on this issue can be brought to the public through a proper judicial process,” the President said…… “

Like his revelations to the Sunday Times and his public declaration, President Sirisena is quite focused on the February 27, 2015 controversial CBSL bond issue. He has clinically dissected the issues to be addressed – who is responsible and should face punishment when the legal process he initiates completes the task. In doing so, he has made it abundantly clear that he will not be influenced by viewpoints or positions taken up by different personalities, political parties or groups. A source close to the President said yesterday President Sirisena would make a final decision on the matter in the coming week. The source said one of his concerns is not to allow a probe that would be time consuming. Thus, the source explained, that his choice may narrow down to a serving senior judge conducting the probe as against a Commission of Inquiry which consumes a long period of time. The other modalities would be worked out, the source said.

President Sirisena is still livid about “the manner in which the media” reported his speech to war heroes who received documents for houses and lands from him at a function at the Sri Lanka Foundation Institute (SLFI) on October 12. “The media reported that matter in such a way that it would create some controversy. Some important parts were not published in the state media. The English language media in particular tried to give a wrong interpretation and thereby create a wrong impression among the public. My speech was for 45 minutes. They suggested I had asked investigations to be stopped.”

Q What type of wrong interpretation was this?
A: Things like saying that I am against ongoing investigations. That is why they said that my SLFI speech was contrary to the pledges given during the elections. The English language media, in particular said that I had made a statement against the mandate given at the elections. That is the wrong impression created. If my full speech was taken in context, the view which I was trying to make is clear. People can easily criticise, but when you are running a Government you face various challenges, and those who criticise do not have the experiences of these challenges.

They may be able to easily make statements. It is the person who carries out the duties who knows the difficulties. In 2015, the 19th Amendment was passed with a two thirds majority with the help of those SLFP members who were not in the Government. I don’t think anywhere in the world a two thirds majority has been obtained for Constitutional changes. Only, I know about the effort taken for this. It is, as a result of it, the Independent Commissions came into existence. I created these Commissions through the 19th Amendment. What I said was that the Commissions should function impartially and independently without a political agenda.

“The investigations on large scale frauds have stopped. Only minor investigations such as the misuse of a vehicle, purchasing flag posts, and distribution of carom boards are being carried out and action filed in courts. But the expectations of the people were higher. They wanted serious frauds and corruption investigated.

“The FCID was created to investigate and take action on large scale corruption and fraud. The FCID was given a limit. But, now it has taken over all investigations. I assume it has some 400 cases. The FCID was not set up to investigate private disputes, management issues of companies, issues of board of directors, financial disputes in companies etc. That was not the purpose. Especially we wanted priority given to cases of misuse of state funds and state property and to give priority to cases of corruption, misappropriation and fraud. This is what the officials there should be doing.

“But”, the President said, “the objectives are not achieved when they concentrate on other things. Even the other institutions are same. Take the Commission to Investigate Bribery or Corruption (CIABOC). The Commissioners are good. They are all performing their duties honestly. The other staff should understand this. They should work honestly and impartially. That was my criticism. It was about working impartially and independently. I have been speaking of these issues within the Government for the past one year. It was how the officials at the lower ranks should act upon. That was not about telling the Commission to stop investigations or bring pressure on the investigators. I was talking about a broader issue. But, the media interpreted it in a wrong manner.

“As a result a wrong impression was created among the public. Even today what I say is that the investigations and cases of large scale corruption should be expedited.”

Q Could you give an example of such cases?
A: “One of them is the investigations about the deposit of moneys in a bank in Dubai. That investigation has stopped. The Avant Garde Maritime Services Limited ship is with us for the past one year. The Government Analyst’s report on this is hilarious. I hear the report says that the weapons in the ship had rubbed against each other and the numbers had got erased. Now the situation is that there is no case and we are taking care of the ship for the past year. The Thajudeen murder case (being probed by the Criminal Investigation Department – CID) is being suppressed. There is the case about the procurement of MiG-27 fighter jets. I can cite more examples. The people want to know about them.
“I need to speak out so that the truth is revealed. Otherwise the public will assume that I am not taking care of this. It is not our duty to intervene in the work of the investigative agencies. We have created them and expect them to act independently. If some of the officials, at the lower ranks do not perform their duties, the objectives are not achieved. That is the reason to make such a statement.

“I made a statement about the arrest of former Commanders. The media distorted and reported it. As the Minister of Defence, and as the Commander-in-Chief of the Armed Forces, I should be made aware if a serving or retired Commander is arrested and taken to courts. Like those serving, even those retired have links in the armed forces. The public perception should be understood when action is taken. We should not act against the will of the people. We should act in a manner where the wish of the public is fulfilled.

Q How do you do that?
A: “The officials should know how to do that. I do not select the cases. It is the responsibility of those officials in the respective institutions to investigate cases regarding what people expect action to be taken”.

Q By this, do you mean that action should not be taken over some cases?
A: “I have not said that. What I say is that action should be expedited and done efficiently”.

Q You mean in a manner that the public appreciates it?
A: “Yes”.

Q Are you satisfied with the functions of the Bribery Commission, FCID and the CID?
A: “Actually, the officers are taking a great effort. I am aware of that. But they need to expedite cases and they should be more efficient because it is beyond the expected time period of the public. The people expected speedy investigations and results. It is already 20 months. The investigations should be expedited as it is nearly two years. The delay is the question”.

Q How do you hope to expedite them? Is it through higher officials or through the Ministers?
A: “The Ministers are not relevant to the investigations. It is not the duty of the politicians. It is the duty of the officials who are carrying out the investigations. Earlier the politicians used to intervene. We have stopped that. Earlier telephone calls were given before judgments were delivered in courts. Investigations were stopped. It happened in that manner earlier. However, now there is no such intervention and we expect investigations to be done in the right manner. That remains the question”.

Q Some say that former ministers are loyal to the Government as there are investigations against them. Your comments?
A: “That is not the reason they have joined the Government. We invited them. They did not come by force. Our manifesto said that we will form a consensual Government or a National Government. I too said this. Besides, according to the Parliamentary election results no party could have formed a government on its own. The UNP had 106 members and the SLFP (UPFA) had 95. Since no party could form a Governmen on its own it was essential to get together to form a consensual Government. Nobody came by force, but we invited them. If they did not come in we could not have formed a Government. We could not have had a Government with 106 members”.

Q There is belief that the aid and assistance expected from the US and other western countries were not what you expected. You also reportedly mentioned this. Can you comment?
A: “The Asian countries generously support us. India, China, Pakistan, Japan and Korea support us. Singapore, Malaysia, Thailand are other countries also support us. Western countries too help us, particularly some of the assistance that was stopped during the Rajapaksa government’s era is now being received. For instance, specialised training provided to the armed forces from the United States and Britain has been resumed. Economic assistance from countries like the US and European countries is being received. There is investment coming from Western countries from the private sector which is strong in those countries. The ban on fish exports to European Union was lifted with the support of Western countries. We are confident that the GSP + facilities will also be restored. Therefore, the US and European countries are providing assistance. But most of the help is coming from India, Japan, China and other Asian countries.”

Q It was said during the previous regime that the development of the North was given to India and the South to China. What is your Government’s approach?
A: “We do not distribute districts or areas to countries. They are false reports. But, when investments come in, we decide on them. Foreign investments are one aspect. There are local investments as well. We also should look into how we could improve local industries. As an agricultural country how do we give prominence for agriculture? How do we develop local industries? For this purpose how do we get modern technology from Western and other countries? If a country needs to develop, it is more than economic assistance, we should depend on modern knowledge and technology.

“With this our intellectuals can develop the country. What we need to concentrate on bringing in is modern technology and knowledge. We need to improve the country on our own. The tourism industry is taking a leap. The fisheries industry is another. As an island nation the fisheries resources are important. We have not exploited the fisheries resources properly. Not even five per cent of it has been used. Within the country we have mineral resources which need to be given consideration. As a country, to develop, we need local and foreign investments as well as private sector to improve the Agricultural sector, self-employment, rural development and local industries”.

Q Your comments on the recent incidents in the North.
A: “The incident in the north where two student deaths were reported is tragic. There is an investigation going on. There is a judicial process. We are sorry about the incident. Such incidents should not take place. The incident is a grave mistake. We have decided to pay compensation to the families of the two students.

“I think if these incidents involved students in the south, it would have been much worse. Therefore, we should not consider this as something which happened in the north. Wherever the incident took place, there will be unrest among the public in that area. There will be protests. Therefore we condemn such incidents and they should not take place”.

Q Do you think that there were any outside elements linked to it?
A: “No. Going by the current investigations what has happened is clear. Four to five policemen are in remand custody and the Judiciary will decide on the case.

Q Will the new Constitution be ready  by the end of the year.
A: “It cannot be done this year. Our expectation is that it will be done next year”.

Q Will the Executive Presidential system also be abolished?
A: “That is mentioned in the manifesto. All things mentioned in the manifesto should be implemented”.

Q You mentioned that you will serve only one term. Do you still maintain that position?
A: “What I have said will not be changed”.

Q What is your policy on selling of  state institutions?
A: “I do not agree with the word ‘Selling’. The media also use the word ‘selling’. Our policy is that profit making institutions should remain with the Government. They should be further developed. For the loss making institutions, we should have a scheme to develop them with the help of the private sector. This does not mean a total sale. We should enter into joint-ventures with the private sector. If there are unbearable losses there is no harm in disposing them. I will not allow institutions like Litro Gas, Lanka Hospitals (former Apollo Hospitals) and Ilmenite to be sold.”

Q Sections of the media have reported about speculation over a cabinet reshuffle. Any comments?
A: “We have not discussed such a thing so far”.
Like some of his ministers, President Sirisena is quite conscious about the public discontent over delays or even stalling of some high profile investigations. Other than diverse political necessities that have more often brought about this situation, understandable though an undesirable feature of the UNP-SLFP alliance, there are a number of other issues too.

It is no secret that in some instances the investigators have been left to complain that there has been pressure from political leaders. On the other hand, at least a section of the ministers close to President Sirisena and are monitoring developments argue investigators are trotting out this reason for delays in most cases.

In essence what these ministers are underscoring is a need to probe the probers. That no doubt will be as time consuming as the 20 month delay already encountered. The irony here appears to be the lack of a proper Government mechanism to keep tabs on progress or otherwise of the investigations. It is still not too late to identify the real reasons and expedite the process. This, however, will have to be carried out without interference in the investigations. Of course, it is fraught with the same danger that has slowed down at least some of the mega probes.