Tea sector
jolted again
It happened after all. Some months
back, in this column while criticising the decision
to victimise former Tea Research Institute Director
Dr Ziyad Mohamed, we alerted the tea industry to another
disaster in the making – the ‘harassment’
of H. D. Hemaratne, Director-General of the Sri Lanka
Tea Board.
We said that he was another officer
working under tremendous pressure and was likely to
be given the same treatment that Dr Mohamed received.
True to our words, Hemaratne was on
Tuesday unceremoniously sent on compulsory leave by
Tea Board chairman H.A.C Abeywardene on some flimsy
charges.
It was an unfortunate end to an officer
who according to all accounts from the tea industry
and even sections of the government is an honest officer
and was above board. The industry has expressed shock
at the move while private sector representatives on
the board were awaiting a clearer picture of the situation.
What led to this situation? When Dr
Mohamed was put through the trauma of being sent to
a detention cell, ordered to go on compulsory leave
and fraud charges brought against him in April, we learnt
about the ‘victimization’ of Hemaratne too.
According to industry sources, the Tea Board Director
General has been questioning a lot of issues dealing
with transactions by the chairman, the working director,
the chief internal auditor and the tea commissioner.
He has nipped in the bud scams relating to rubbishy
teas being exported by what is called the “Gampaha
(tea trade) mafia”, among other issues.
The industry says his integrity is
unquestionable but – as in the case of Dr Mohamed
– fraud charges are about to be framed against
him.
There are a lot of discrepancies in
what the Tea Board chairman who owns a TV station, has
told this newspaper. For example he says the board doesn’t
come under the Plantations Ministry. That’s incorrect.
The Board comes under the Ministry and its Secretary
is the chief accounting officer of all institutions,
boards and agencies that come under the Ministry. There
is also some doubt as to whether he followed proper
procedure, as our story explains, in sending an officer
on compulsory leave without a proper inquiry.
Hemaratne has worked at the board
for the past 30 years without any blemish to his career
and to be given this treatment without proper procedure
is the unkindest cut of all.
Another issue that needs to be addressed
is the role of the private sector directors on the Tea
Board. Even though a sizable segment of the funding
of the Board activities comes from the cess paid by
the industry, these directors – appointed by virtue
of positions they hold in the industry associations
– are like “toothless tigers”.
They don’t have any power and
the chairman of the board as the practice has been has
full authority over the affairs of the board, in appointments
and dismissals. It must be said that the appointment
of private sector representatives on the board is a
practice adopted more than 10 years ago by the then
minister as it was felt that private sector input would
be useful to efficiently run this organization. However
the question begs to asked, shouldn’t such directors
take some responsibility for the affairs of the board
and at least ask about Hemaratne’s situation?
In the private sector, the keyword is governance, transparency
and accountability. Directors of listed companies are
under tremendous pressure from the Securities and Exchange
Commission for more transparency in the affairs of a
company. Recent changes to ensure this includes the
compulsory appointment of independent directors to companies.
Governance and transparency is also
being called for in state institutions and in this case
where private sector representatives are appointed directors,
they need to be given more authority to ensure that
the institution is run well. As one veteran tea industry
official said many are shocked by the turn of events
at the Tea Board. The authorities must, in line with
the rules, serve a charge sheet on Hemaratne and complete
the inquiry as fast as possible instead of delaying
the process. |