Financial Times

Tourist Board under scrutiny
Has the cookie crumbled? Is Tourist Board chairman Udaya Nanayakkara finally on the mat?
There was drama in the industry this week when more than a dozen officials of the Bribery & Corruption Commission walked into the Tourist Board office on Thursday and took away files and documents pertaining to various transactions including those by the chairman.

On the same day, Treasury Secretary Dr P. B. Jayasundera took control of the Tourism Cess fund saying it should be managed and administered by the Treasury, taking the cash cow away from the board amidst growing allegations of misuse.

Industry organisations have repeatedly complained of the funds being used by some board officials for trips overseas, unlimited spending, etc. It is well known the industry has repeatedly expressed concern over spending and has asked but not provided a chance to discuss these financial issues with the board. Even getting an appointment to see Tourism Minister Anura Bandaranaike is like an elusive dream. Deputy Minister Arjuna Ranatunga had promised a meeting between the Minister and the industry only to be told the minister – who is visiting the US for yet another tourism conference this week – prefers to meet after the special committee reviewing new tourist laws to ascertain whether it is in line with the Mahinda Chintana policy framework, has finalised its report.

For the past several months the industry has watched with concern as the board went on a spending spree, refurbishing its offices, travelling abroad, high entertainment-related costs, etc – using money from the tourism development fund in which most of the collections came from the industry and the public. For example the airport tax that you and I pay when we go abroad, goes into this kitty to be utilised for the development of tourism. But are these monies spent on development or what? Transparency has been lacking in some controversial board spending and the hierachy of the board remained immune to the concerns. Take for example President Mahinda Rajapaksa’s recommendation that former parliamentarian Bennet Cooray be appointed chairman of the board. That was neatly sidestepped by the minister and the present incumbent re-appointed.

This brazenness had to end somewhere and this week’s events came as a bolt from the blue to the board. Apart from the bribery probe and removing the authority of the board to manage the cess funds, the chairman was also for the first time ‘confronted’ at a board meeting which also happened on Thursday.

On the agenda was a proposal to award a tender to his company, for furnishing a section of the board office under the controversial refurbishing deal. Bennet Cooray, who was later appointed a member of the board, was absent at the meeting but sent a letter objecting to the award, triggering discussion on the issue. The result: the contract was not awarded.
There are other accusations against the chairman on the handling of PR firm, Singapore-based Batey and the early ending of that contract, as our stories today show.

The tourist board chairman should never have been appointed to this post in the first place if the rules are strictly enforced. Tourism laws, before the new legislation was approved by parliament but yet to be implemented, bars the minister from appointing any person who has a business interest in the industry. The tourist board chairman cannot escape this clause even if he claims his businesses (Sunleisure Ltd), are run by others (or handed over to others). For, how could he then serve on the board of directors of the Universal Federation of Travel Agents Association whose members are all privately involved in the industry?

The President, watching on the sidelines for many months while the Tourist Board went its own way sans accountability, is finally getting tough.
While commending him for the action taken so far, it is hoped the President will ensure the bribery investigation continues and just like the VAT investigation and the Sports Ministry scam, make sure politicians don’t interfere in this process.

Now is the time, Mr President, to act; all evidence of wrongdoing is there.

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