Some members of the Chamber of Commerce (CCC)’s Advisory Council are calling for an urgent meeting this week to discuss a report on the ramifications of the recent LMS judgment on the continuation of a key member in the chamber.
John Keells Holdings (JKH) is the owning company of LMS where the privatization of this oil bunkering firm was thrown out by the Supreme Court in July on the grounds that it was improperly done. The court also said JKH Chairman Susantha Ratnayake had ‘acted in collusion’ with Treasury Secretary Dr P.B. Jayasundera in this transaction.
Muhsin’s role
Questions are being raised over retired World Bank Vice President M. Muhsin’s role as a director at JKH vis-à-vis a massive loan the company received from the Bank. However Mr Muhsin has denied any ‘impropriety’ saying the loan was negotiated independently by the company and he had no involvement. |
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While Dr Jayasundera was ordered to resign by the Supreme Court and not serve in any government position in future, Mr Ratnayake, who has offered to resign from the JKH board and also from the CCC where he is its deputy chairman, continues on the persuason of board members and the CCC hierarchy, informed sources said.
The sources said that at the CCC committee meeting on Thursday November 27, its chairman J.D. Bandaranayake – also under fire over ‘friendly’ and corporate links with Mr Ratnayake – said the report by an Eminent Panel of Experts was ready but that some clarification on issues relating to the judgment have been sought from JKH before the report is made known to the committee.
Committee members have been irked by the refusal of the CCC chairman to divulge the names of the panel and its terms of reference. The latter has said that members of the panel have strong legal backgrounds but requested that their identities be kept a secret.
The sources said that while the inquiry should be to ascertain whether JKH’s indictment in the Supreme Court is a violation of the CCC Code of Ethics for member-firms and could result in cancellation of its membership, it has been clearly stated at several meetings of the committee that since there are ‘some issues’ over the judgment the panel will be looking at this aspect too. The next meeting of the Advisory Council is scheduled for mid-January but some members are urging that it brought forward to adjudicate on this issue accusing the chamber hierarchy of wavering on an issue that affects not only the credibility of the chamber in the eyes of its large membership but also in public.
With news of the meetings of the committee leaking out to the media, its members at a recent meeting were requested to refrain from circulating ‘the minutes’ even to associations they represent and only to quote relevant extracts (pertaining to association activity) where necessary.
“Ironically for a chamber that has been steadfastly pushing for others including the government to be transparent and accountable, there is absolute silence when it comes to a probe relating to its own member,” a public interest activist told The Sunday Times FT.
At the October 30 meeting when the LMS judgment and actions of JKH came up for discussion, members present said JKH Chairman Susantha Ratnayake and JKH board director Ronnie Peiris, who is also a committee member, withdrew from the proceeding.
Referring to newspaper reports of a personal friendship he shared with the Deputy Vice Chairman and that both of them served on the same Boards, etc, Mr Bandaranayake said that ‘it was no different to the friendship he shared with many of the members of the committee around this table and with whom he served with on various boards.’
Mr Bandaranayake said he will not play a role in the final decision when the views of the panel are made known and said the chamber Vice Chairman (Dr Anura Ekanayake) and Immediate Past Chairman (Mahen Dayananda) would recommend the next steps.
The panel was appointed on September 10 and was due to finalise its report by November 15. In a discussion that followed, a member, Dr. Parakrama Dissanayake asked whether the names of the eminent panel could be given and also said that he (Dr Dissanayake – then chairman of the Ports Authority) was amongst one of the four public service officers who signed the LMS agreement and was thereby declaring his interest in this issue. Committee member Charitha Ratwattte, Treasury Secretary at the time of the LMS privatization, also then declared his interest as a signatory to the LMS agreement.
Dr Dissanayake said the court ruling indicates that apart from John Keells, Mr. S Ratnayake was also asked to pay costs. He stated that whilst the panel looks at John Keells’ involvement, it was also important to examine whether Mr Ratnayake is a fit and proper person to hold the office of Deputy Vice Chairman and to lead the Chamber in four years time. He said the court has found Mr Ratnayake to have indulged in an illegal activity and noted, “Are we going to allow such an organisation or an individual to be a part of this Chamber?” He said the Chamber by permitting this would imply that the Code of Ethics of the Chamber permits people to indulge in an activity bringing an illegal advantage which is adverse to the public interest.
Another member Michael de Zoysa said Mr Ratnayake should have stepped down whilst the inquiry was pending, and to be reinstated if the action taken by him is justified.
Mr Bandaranayake said the Deputy Vice Chairman had offered to resign on many occasions, initially on the day of the AGM of the Chamber which coincided with the Supreme Court Judgment. But a CCC Committee had advised Mr Ratnayake not to do so as they had not studied this judgment. He had renewed this offer thereafter but had been advised that there was an ongoing process.
The meeting also noted that there is a great deal of concern amongst the legal profession that there are some possible inherent limitations in the procedure followed in human rights/fundamental rights applications. It was also stated that public servants are also concerned that decisions they take maybe reviewed through this procedure with inherent limitations.
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