Blame game: Govt., UNP throwing flour at each other

By Chathuri Dissanayake

Both the UNP and the PA governments are now blaming each other for including a controversial clause in the Consumer Affairs Act giving the Prima Company a monopoly over wheat imports. UNP parliamentarian Ravi Karunanayake accused all successive governments for having blood on their hands on the monopoly enjoyed by Prima Company over the consumers.

Mr. Karunanayake not only blamed Rauff Hakeem who initially presented the bill to parliament in 2001 but also former president Chandrika Kumaratunga Treasury Secretary P. B Jayasundara for signing the agreement with the Prima Company.“According to the primary contract with Prima signed in 1978 Sri Lanka had the buy back option for one rupee, however the Kumaratunga government sold the plant for 6.7 billion rupees instead of selling it for the estimated value of Rs. 25 billon even without calling for tenders.

“The Chandrika-Kumaratunga government carried out this deal because the then government was bankrupt” Mr. Karunanayake said adding that the JVP also remained silent on this issue at the time. Mr. Karunanayake also blamed the Prima agreement, for taking away the wholesale distribution rights of the CWE and ultimately leading to its collapse. According to him the CWE had lost an annual income of Rs. 4000 million because of this faulty agreement with the Prima Company.

He said clause 77 which is now being much quoted is applicable to other agreements as well such as the one with Shell Gas.“The agreement with the Serendib Flour Milling Company during the Kumaratunga administration provided the same exemption and protection from the Consumer Affairs Authority. As such why am I being blamed for working in favour of Prima. All these agreements were signed during President Kumaratunga administration. They cannot now accuse me for any of those things,” Mr. Karunanayake said.

However Minister Rauff Hakeem said successive governments had become virtual slaves of the Prima Company. He said he tried to take some corrective action by submitting the Bill to a Standing Committee but it came under heavy criticism when it was presented to the parliament.“I saw justification in the criticism by the opposition and even though the government had the option of passing the bill when we had the majority,” Mr. Hakeem said.

He blamed Mr. Karunanayake for not removing the clause when it was presented later during the UNP regime.“Even though the bill was referred to the Standing Committee by me the Bill was presented to parliament by Mr. Karunanayake without any amendment to the clause” Mr. Hakeem said.

Prima of course remains silent not wanting to get involved in this political battle of pointing fingers.“It has nothing to do with us so we prefer to stay out of the dispute” a company official said. Mr. Hakeem said Prima had exploited the market for more than 30 years free of any competition.