Mud, yes mud, in House and outside

Fro The Blue Cornerm

By Paakshikaya

I was reading my friend Viruddha Paakshikaya's comments from the green corner last week while watching the debate on AirLanka on closed-circuit TV in Parliament and, well, well, didn't we see how Viruddha Paakshikaya's greenhorns conducted themselves, so self consciously in front of live TV coverage!

At the end of it all, I had just one question to ask myself: Is this the alternative government of this country? Are these the people that you like to call the "new" UNP?

And pathetically, this new UNP's front row was occupied by just two MPs - your "new" leader Ranil Wickremesinghe and - surprise, surprise - Mr. Wijepala Mendis whom your own party is inquiring into for alleged corrupt land deals when he was a minister.

I shall not say anything about your "new" leader's record on corruption for I do concede he is not tainted. But then, I'm not sure for how long he will remain a political virgin with the kind of advisors he has around him - those who are only counting the days to make the bucks they couldn't make by flirting with our government and coming a cropper miserably.

But it was a really pathetic sight to see Mr. Mendis in the front row and two other speakers from your side (you know who!) who also have fraud cases against them. Are these the only people you could find from your ranks to talk of corruption! You sure prefer the experts, don't you?

Why, Viruddha Paakshikaya, you should have had Bonnie Ronnie as a speaker. Only recently he was boasting (in that fight with Anura B) about his ancestral wealth. But I'm told he's in England. He always "lies" over the ocean, doesn't' he? How come?

Then, why didn't Anura B, the crown (clown?) Prince of the UNP, speak? He waged a pitched battle on the Galle Port deal (some wickedly say it was on behalf of an agent friend of his who lost out) and the Thawakkal deal. Why was he silent last week, just making some incoherent remarks when asked embarrassing questions about whether the Bandaranaikes are corrupt (as the UNPers were hinting) and about his buddy Harry Jayawardena, Chairman of AirLanka among other things.

And whatever happened to Abdul Cader Shahul Hameed? Who asked for the debate, wasn't it him? I'm told he was not billed to speak, but he was appointed the "Manager" of the debate. I think what happened to Cricket Manager Duleep Mendis could happen to your former Foreign Minister if he was absent from the debate, possibly watching it on TV from wherever he was while indulging in massaging his ego by still entertaining foreign envoys!

So much so for your shouting "wolf, wolf", Viruddha Paakshikaya, we saw it all. It was not a civilized debate but a mud slinging campaign, even trying to compare our leader with Benazir Bhutto, who was accused of shady deals with Swiss Bank accounts.

Benazir Bhutto, I'm sure would have been flattered. But Viruddha Paakshikaya, have you forgotten who came to Colombo to felicitate your Anura Bandaranaike's twenty glorious years in the Opposition (I mean 20 years in politics) - younger Benazir B herself! So my dear Anura B, now you see what kind of friends you have in the UNP! Do come back, friend: all will be forgiven.

Remember, Viruddha Paakshikaya, at least be generous enough to give credit where credit is due. Just compare the way the UNP purchased Lockheed Tristars (among the last to come out of its factories) and Airbuses. You might recall the infamous Lockheed scandal that brought down Japanese Prime Minister Tanaka and even involved European Royalty in a bribery scam. Well, your then government was no better.

Leaving alone permitting a live debate in Parliament, the UNP's attitude to AirLanka was 'don't you dare ask even a question about it, because it was a private company. Just pass the public money and ask no questions to be told no lies" - the airline had this unique position of being a private company that ran on public funds voted by Parliament but while being outside its scrutiny.

To tell you the truth, Viruddha Paakshikaya, when I get philosophical, (like you did last week) as I watched the debate I just thought to myself - look at these politicians from both sides of the House, throwing mud at each other purely for party politics but together being the ones who jointly and severally were unable to manage a commercial airline - our national carrier - as a viable business venture. In short, they 'screwed it up'.

They put their henchmen - even those who deal with flowers to the directorate as political favours and to repay IOU's and to have puppets to suit their whims and fancies while Emirates, an airline from the desert with no history of civil aviation was run as a commercial enterprise devoid of politics and showed results in so short a time to be able to be given the management rights of our national carrier.

Shame on our politicians. What would King Raavana - who gave the world the concept of aviation with his 'Dandumonaraya' - have said if he saw what his descendants have done to AirLanka which still draws inspiration from him for its logo!

Now, coming back to Viruddha Paakshikaya's comments of last week regarding corruption during the past four years under the PA he refers to unconscionable profits made by some people especially arms dealers during this period.

Let me assure you, Viruddha Paakshikaya, neither myself, the PA nor it's leadership condones this. It is not that they have made so called "unconscionable" profits, but that these profits are the result of over-invoicing or that senior military brass have been bribed in the process of arms procurements.

While I'm in no way justifying this you are surely mature enough to call these the "spoils of war." But I do agree with you that ill-gotten monies don't last long. Viruddha Paadshikaya, you yourself referred to some of the crooks during the UNP regime and asked where they were and where their money is today - except of course for some of the "Crooks" who got away to England for a lifetime of sleepless nights.

This week, as I sit in front of my PC keying this in, I hear our young Minister, Mangala having slammed arms dealers and those who have "Access" to them. Now, Viruddha Paakshikaya, you would be surprised at the number of people from the Green Corner who have "Access" to these arms dealers.

We have appointed a Commission of Inquiry into some helicopter deals. Please don't be reticent about these commissions. You cleverly call them inquiries into commissions. Well said. That's what they boil down to.

I don't know, Viruddha Paakshikaya, how we can rid this country of bribery and corruption. Throwing mud at each other will not help. It must be done at a bi-partisan level.

I do admit that our government has almost lost the fight to combat bribery and corruption with the non-functioning of the Bribery and Corruption Commission. It's a terrible shame that the learned Justice Minister has not been able to tackle this problem. He has left the Commission in a state of limbo and this is going to be counter productive to us in the PA because you in the UNP are going to make a song and dance about it in time to come.

But, Viruddha Paakshikaya, remember, you must also turn the searchlight inwards. But what has your leader done? He writes to our leader asking her to reactive the Bribery Commission and then, does sweet nothing about Wijepala Mendis.

Come, Come, Viruddha Paakshikaya. We must be above party politics on this issue, or else crony capitalism, (the PA and UNP are both now capitalist, right?) will bleed our country to inevitable disaster.

And, by the way, Viruddha Paakshikaya, tell your 'clean' leader that being bi-partisan in politics doesn't only mean smiling with our leader for the cameramen at Sanath Jayasuriya's wedding.

'Greatest betrayal after Kandyan convention' – Ranil

Speech made by Opposition and UNP leader Ranil Wickremesinghe

Hon. Deputy Chairman, this debate is not meant to overthrow the Government or bring it down. Certainly, I am not going to do it because the job is being done so well by the Government.

The backbenchers are disowning the Government, the Hon. Minister is disowning the President and Harry Jayawardena is suspended in mid air. At the end of it, all that we know is that the Government does not want Harry Jayawardena to be the Chairman of AirLanka. The reason we asked for the debate when the Minister made a statement was because there have not been sufficient time in the absolute deal.

As soon as A.C.S. Hameed asked for the debate, the minister agreed to it. So I must commend the minister on that. There has not been sufficient discussion in this country regarding this privatization.The privatization of our only airline and also the largest procurement in the history of independent Sri Lanka, the largest purchase by the Government in 50 years, ironically falls on the 50th anniversary of our Independence.

This is why we asked for this debate. There have been many points (which have been) brought up by the members of the opposition which have gone unanswered. I hope the Minister will be able to clarify the situation, otherwise the blame is going to come on the Government. We only want to raise these issues. If the previous Government has done wrong or the Government before it has done wrong this Government came into power promising not to repeat wrongs. The PA Goverment came to power promising this nation that they will have a transparent system of awarding Government contracts and of privatization. The issues that have been raised and have been unanswered will fall into three categories. First, the process of privatization. Second, the selection of the joint venture partner and third, the manner in which six airbuses were procured by the Government and the Government also agreeing to take an option on six other airbuses for AirLanka Limited.

The normal mode of privatization, the sale of shares of Government bodies is done by appointing a tender board. The Cabinet appoints a tender board consisting of senior officials and that tender board thereafter has to make a recommendation. It may be wrong, it may be right, but it has to make a recommendation and those public officers are answerable. The many privatizations which were mentioned by the previous speakers were all disposed of on that basis where there was a Committee of officials appointed by Cabinet. The Cabinet appointed the tender board which determined who should be given the shares and on what conditions. This is the procedure that has to be followed. Now this has not been followed in regard to AirLanka. In which case there are only two exceptions. First, the Government can decide to sell the shares on the Stock Exchange. It did not happen in this instance. The other is the sale of shares by the Public Enterprises Reform Commission under Act No. l of 1986.

Now only shares of certain categories of Companies can be sold by PERC. That is, Section 5 (e) :

"to make recommendations to the Government on the sale or disposal to the public, of shares in, or assets of, companies registered under the Conversion of Public Corporations and Government Owned Business Undertakings into Public Companies Act No. 28 of 1987;"

So only companies which have been converted, companies which were originally public corporations or were Government-

Deputy Chairman of Committees: Order, please! The Hon. Speaker will now take the Chair.

Whereupon Mr. Deputy Chairman of Committees left the Chair and Mr. Speaker took the Chair.

Dharmasiri Senanayake: Section (t) - Duties and powers.

Ranil Wickremesinghe: Only Government owned business undertakings or corporations which were made into companies have been brought under the PERC.

Others have been excluded. The Hon. Minister referred to Section 5 (t), which reads:

"(t) to act as the agent of the Government, in Sri Lanka or abroad, for the purposes of any matter or transaction, if so authorized;"

This is to act as the agent of the Government, in Sri Lanka or abroad. You cannot go there and say "we are willing to sell these." But in Sri Lanka you cannot do the selection, if to act as agent of the Government in Sri Lanka or abroad for the purpose of any matter or transaction if so authorized. What is the transaction that was authorized? By whom? When did the Cabinet authorize this transaction? The law is very clear. As far as I understand, it brought in only a certain category of transactions.

Dharmasiri Senanayake:

Others were delegated by the Government.

Ranil Wickremesinghe:

When did they delegate? Can you get me the Cabinet decision, Hon. Minister?Why? Instead of using this procedure of the Cabinet Appointed Tender Board I do not accept the fact that it had to be the PERC it had to be Cabinet Appointed Tender Board, because if they wanted all companies brought in, the legislation would have been wide enough to cover all companies. But this is not a phrase which enables the Government to sell shares of AirLanka. But if they are trying to find a reason, why is it that they gave up this procedure and why did they use PERC? That is the first question to be answered because PERC is the mother of all corruption. Every privatization that has been come into dispute, that has been questioned are ones which have been handled by PERC. Each time PERC says, "We have no experience and we will try and do better next time" and each time someone makes more money.

So this is the first question that arises - that has to be answered because the only obvious conclusion is that PERC was used for the purpose of manipulating the transaction, secondly the selection of the joint venture partner.

"The Hon. Deputy Minister of Finance mentioned that there were seven organizations that were shortlisted - Emirates, Air Asia, Malaysian Airlines, Thai Airways, GECAR, China Southern, Bonderman Group. Two of them, Malaysian Airlines and Thai Airways, then dropped out. Now there were five. You have not told us how this five became three because if you go by the minutes, the five became two and the two became three. How was this selection done? This is where the answer has not been given. (Interruption) Let me explain, Hon. Minister. Listen to what I have to say.

"If you are going on the basis of the offers, the Hon. Minister referred to Bonderman Group. Bonderman owns Texas Pacific Group. Which is the largest shareholder of Continental Airlines. Texas Pacific Group together with Continental Airlines was one of the companies that applied. They did not apply. SH&E wrote to this company and asked them to apply. They applied, they came here and they raised certain questions. Now what they asked from the Government was this.

They said that the exclusive use of bilateral rights to AirLanka, the limitation of five years must be removed. They said that the special pricing formula currently applicable on purchase of aviation fuel which was only for one year should be extended to five years or longer. They wanted the ground handling services at the BIA to be enhanced from five years to a longer period, a period of not less than ten years. The AirLanka Catering Services Limited should be given exclusive arrangements for a period of not less than ten years. This was the letter which Mr. Bonderman wrote to Chairman of PERC on the April 21, 1997.

These were conditions that were asked for by the Texas Pacific Group. Then Mr. Mano Tittawella replied on may 2, the date on which they were going to have a discussion.

It says under the heading Aviation Fuel, that the special price in formula will apply only for one year, ground handling services is only for five years, catering services for five years and please note that we are presently unable to change the bid terms on these items.

This is a fax sent by Mano Tittawella.

Then Mr. Bonderman wrote to Mr. Tittawella on June 6 1997. He said:

"..... As we have explicitly stated, in our view....''

In their last letter, they did not ask for a majority on the Board. They said:

"....... in our view this means either the government selling 51% immediately or committing in a legally enforceable way to sell the majority control within a short period of time, and in either case the government having no right to veto on any matters except where the private owners are in a conflict position....''

They said, if you give us the exclusive management rights, we are willing to consider it. They said further:

"Simply not willing to spend any further time on this project unless it is clear that the terms of the privatization will be consistent with what we believe we need. Since that is not presently the case, we are not interested in proceeding further at this point. Of course, should the government's position change along the lines we believe appropriate, we would be pleased to revisit the situation."

They said, this is what we asked for, you cannot give it to us. But, if you are willing to reconsider it, kindly let us know, we are willing to do it.

Now, only two companies had applied on the 14th of August. On 21st August, another company - Emirates Airlines came in and negotiations were held with Emirates Airlines. They have been given the aviation fuel subsidy for 10 years. They have been given the exclusive right of handling and catering for 10 years. They have also been given the exclusive management rights.

If you look at the Shareholders Agreement between the Government of Sri Lanka and Emirates International Airlines and AirLanka, Article 2, 2.2 states:

"2.2 Management Powers, Control and Responsibilities.

2.2.1 The Investor shall from the date of this Agreement until the Termination Date have, and is hereby vested with, management power, control and authority over, and responsibility for the business and affairs of the company in accordance with the terms of this Agreement for the purpose of implementation of the Business Plan.

In all matters over which the Investor exercises such power, control and authority, the GOSL and the company agree that the Investor shall not be required to refer such matters to or to seek the approval at a General Meeting of the Company or the Board of Directors."

This is what Mr. Bonderman was asking for. You extend the date from 14th August to 21st August. Then you select Emirates and you give Emirates what Mr. Bonderman has asked for. Did you go back and tell Mr. Bonderman and the Texas Pacific Group. (Interruption) I have read the last letter by Mr. Bonderman. Kindly speak to Mr. Tittawella and get the last letter which is dated 6th June 1997. It says:

"...... As we have explicitly stated, in our view this means either the government selling 51% immediately or committing in a legally enforceable way to sell the majority control within a short period of time, and in either case the government having no right to veto on any matters.....''

That is the letter. Kindly get that. So, you select Emirates and you have given them the terms that Mr. Bonderman wanted, without contacting Mr. Bonderman. If you had asked both parties to bid, at least you would have got better terms. After all, Continental Airlines is a major airline. What was Mr. Bonderman looking at? He is a major shareholder of one company which was based in Europe, in America which had the American circuit as well as flying routes to Europe, Japan and Hong Kong. Here, you are staking another company which was based in Asia with an Asian circuit and trying to connect it up to his stations in Europe, Japan and Hong Kong. I mean, this is another item you should have looked at. Maybe, in the end, Emirates would have given better terms. That, I do not know. But, you did not consider Mr. Bonderman.

You left him out and you went and signed the agreement only with Emirates. Now this is what you have to explain. This is what we want to know. Why did you not call up Mr. Bonderman who asked for this in the first place?

We have had no explanation. However there might be one reason that goes against Bonderman. Bonderman is a company which is registered in the United States of America and the Foreign Corrupt Practices Act applies to all of them. If they give as much as US dollars one outside what was legally required they would go to jail. Emirates has no such restrictions. So, why not select Bonderman? Because, Bonderman was no use to them. Bonderman could not give any commissions. Texas Pacific could not give any commissions. Continental Airways could not give any commissions under the law.

Dharmasiri Senanayake:

Bonderman wanted 50 per cent. On that ground the Technical Evaluation Committee rejected the application.

Ranil Wickremesinghe:

Hon. Minister, kindly get this letter and read it. I will send it to you. Mr. Azwer, photocopy this letter and give it to him. Hon. Minister, you have not been given the relevant letters. It is very unfair by you. I do not blame you. He does not know what their last letter was. (Interruption) Ask Mr. Tittawella.

That is why Bonderman had to go.

You have talked of the business plan. Whoever comes, Continental, Emirates or anyone we have to have a business plan and all business plans are printed well. But what does this business plan consist of? What are they saying in the business plan? Look at the first heading on page one of the business plan.

"The total number of aircraft does not increase from the nine in the AirLanka fleet today. The number of stations served falls from 28 today to 25. Yield and seed factor increase moderately, fully supported by the product improvements that will be put in place."

The most important thing of the business plan is not what they write, but the income and loss statement. The income and loss statement is the most important one. From 1998-1999 to 2007-2008, that is for eleven years, they have given an income and loss statement. The net operating revenue from all the flights after all these changes, like training our pilots in Dubai and many other places in the world, after all these new air planes, the net operating revenue for eleven years is going to be US dollars 4,404,000,000. ta lshkafka oY ,laIj,ska .;af;d;a' ñ,shkj,ska .;af;d;a 4,404 The operating cost is US dollars 4,217,000,000. ta lshkafka fvd,r® ñ,shk 4"217 hs' wjqre³ 11 lska ,nk ,dNh fudllao@ US dollars 187 million. wjqre³ 11 lska fvd,r® ñ,shk 187 hs. On a net operating cost of US dollars 4,404,000,000 we are getting a return of 4.26 per cent after eleven years. Hon. Speaker, will you put your money in such a deposit, which after eleven years will give you 4.26 per cent?

Mr. Speaker:

In the first instance I have no money.

Ranil Wickremesinghe:

Hon. Speaker, you are in the PA and I am in the UNP, but I must say this of you. You will not make money either.

Mr. Speaker:

Thank you.

Ranil Wickremesinghe:

That is why we have this respect and regard for you.

In eleven years what we are getting is 4.26 per cent. The rest of the profit we get are non-operative. US dollars 195 million in eleven years for ground handling. We are getting more for ground handling than for operating. US dollars 9 million from the duty free and US dollars 131 million from the catering services. At the end of it we are getting more from ground handling than from operating. That is exactly what we are making today. There is no difference. You do not need a Tim Clarke to do this. Any Chief Clerk can make this type of plan.

This is why we have been saying that Sri Lanka's strength lies in its locations, in its ground handling and in its catering. If we let this stand alone, if we separate this from the Airline, if we attach it to our airport and if we allow an open sky policy for Sri Lanka in this 11 years we will get more than a billion dollars just out of ground handling and catering. With your duty free scheme you will get more. At the end of the day this is what Emirates says of the grand business plan. They are talking of a 187 million US dollars in operating profit, 235 million US dollars in non-operating profits which we get already, we did not tie up with Emirates and if we kept this with the airport we would have got over a billion dollars.

Mr. Speaker:

Hon. Leader of the Opposition, 40 minutes were left for you and the Hon. Minister. Now you have taken about 22 minutes, why do you not give him at least the balance.

Ranil Wickremesinghe:

I am trying to finish Sir. Mr. Speaker, that is what we have come to. This is his business plan.

Next one is the question of procurement of the Airbuses. As Mr. Mahinda Samarasinghe demonstrated these Airbuses have a life span far more than some of our Tristars which can go on till 2003 after some of the air frame adjustment that have been done.

Even the King of Saudi Arabia uses Tristars too. He will not go in a plane that will come down. There are 205 Tristars flying in the world. What I say is that this balance sheet would have looked different if you had phased out the purchase of Airbuses and if you had bought second hand Airbuses and you had allowed the Tristars to run a bit longer. But what I am asking you is this, there is a system of procurement as far as AirLanka is concerned. The AirLanka Operating Manual has led down the procedure. The Financial Manual of AirLanka says - 'AirLanka has to follow the purchase procedure in the Financial Manual. It required them to subject any purchase over Rs. 750,000 to a Tender Board of their officials. When Airbuses were purchased last time even certain Secretaries sat on it. It is that Tender Board. Now AirLanka did not follow this procedure. As Ravi Karunanayake said in his speech, if you take the Airbus Plan for 1998, AirLanka placed these orders for the Airbus in January 1998. In January 1998 there was no privatization move, only the discussions were there. The privatization plans were approved by the Cabinet in March 1998. Then how was it that AirLanka was able to go and place an order for Airbuses on the 30th of January. I have the orders here. This is the Airbus Industries News Letter which gives Airbus Industries orders in 1998. AirLanka on 30th January 1998 – order for six Airbuses.

This is a serious breach, violation of all tender procedure and you have used this for the purpose of purchasing Airbuses by-passing tender procedure when the Government approved the plan and the contract only in March 1998. This is what the United National Party has been taking up in this House, this is what we have been taking up in the country. The Hon. Minister wanted to know what our position was in regard to this. I would like to tell the Hon. Minister and I give him a copy of the letter, what our position is. I have written on May 18, to Mr. James D. Wolfensohn, President, The World Bank, Washington D.C., U.S.A. What I have said in that paragraph is operative.

"In this context I am compelled to communicate to you, in your capacity as the President of MIGA that a government formed by the United National Party will not honour any commitment or agreements that are entered into as part of the AirLanka restructuring transaction which are tainted with corruption. As part of our own efforts to inquire into this scandal and bring to justice those who are culpable. We will be filing a complaint with the Bribery Commission of Sri Lanka."

This is our position and in regard to making that Bribery Commission operative, I have also sent a letter dated 19th May, 1998, that is today, to Her Excellency the President, Chandrika Bandaranaike Kumaratunga. It says, "Commission to Investigate Allegations of Bribery and Corruption". I am asking her to fill the remaining vacancy, which was created as a result of the death of Justice Siva Selliah, to appoint a Director General, and to give the supporting staff.

I do not want to take any more time, Sir, The Hon. Minister has ten minutes but I can give a few minutes more. I want to say this. This purchase is just symptomatic of the type of corruption that is taking place in the country and it is about time that all right-thinking people got up and said, "no" to it. This is the greatest betrayal of this country after the Kandyan Convention was signed. We have given away our airport to Dubai. We have given away our airline for a little bit of money. That is what we have done.

This is the best deal for a third world country – Dharmasiri

Speech made by the Minister of Aviation and Tourism Dharmasiri Senanayake

Speaker K. B. Ratnayake - Hon. Minister I feel sorry for you because you were billed for forty minutes, but now you are left with 13 minutes. So do your best. (Interruption)

Dharmasiri Senanayake: When I entered the Chamber, I expected to speak at least for forty minutes, but I am not sorry for losing my time. Not at all.

Speaker: Please do not disturb him for the remaining ten minutes please.

Dharmasiri Senanayake: The Opposition was in a hurry to get a date for this debate. When MP A.C.S. Hameed asked for a debate I promptly agreed. I even spoke to the President regarding the matter and she was in full agreement that a debate should be allowed. She and I both have to be responsible in our conduct with regard to the AirLanka agreement, and she whole heartedly agreed that the debate should be given maximum coverage.

This is why I say we are a transparent government. When Gamini Atukorale was speaking in the morning, I posed a query to the Opposition Leader. And I repeat the question here.

When you assume office on a future date, if you ever make it again, (interruptions) that is. I have a copy of that letter you sent, in which you claim that this agreement would be abrogated(interruptions).

Please explain to this House. Your reply on this matter is singularly important to us, so please reply. It is of extreme importance, for it has a direct bearing on business, investment. I urge the Opposition Leader to reply.

Ranil Wickremesinghe:

Hon. Minister, the letter is there. You can read it out.

Dharmasiri Senanayake:

Yes. But I am asking you a question across the floor of the House. You can say "Yes" or "no". (Interruption)

Ranil Wickremesinghe:

Yes. I will cancel all parts of the agreement which are tainted with corruption. We are going to do it. We are going to cancel all that is against national interest. I will not grant exclusivity to anyone in respect of the airport. (Interruption) I will not grant exclusivity to anyone. Therefore, Mr.Minister, anything that is there which gives the exclusive right-

Dharmasiri Senanayake:

Wait. I am asking you whether you are going to abrogate it. You know English well. You are a lawyer.

Ranil Wickremesinghe:

Let me finish. All the exclusivity that is granted will be abrogated by the United National Party. (Interruption) this corrupt agreement will also be set aside by the United National Party. (Interruption) Hon. Speaker, I have given the reply but I am taking it - (Interruption)

Hon. Speaker, We intended to keep the level of debating much higher. MP Mahinda Samarasinghe spoke, and several government and opposition members spoke today, and barring the Opposition Leader, many opposition speakers used this opportunity to sling mud at the President and the government. Therefore, I must categorically state that the debate has been motivated by a desire to sling mud at the government.

Hon. Speaker, I am not pointing an accusing finger at one person. Hon. Anura Bandaranaike, my friend, made a statement just a few minutes ago. As a senior politician I have always held his comments and speeches in high esteem. He has said that Bandaranaikes have never been corrupt, and that they have freely given away their properties to the public.

But just now you claimed that you have not given the Horagolla property to the UNP. According to the information I have, the 1,500 acres of land belonging to the Kurunegala Plantations Ltd has the opposition leader's mother and her brother as Directors of the Company.

We come here and debate and also make various comments. But if all of us act with a sense of responsibility, we should be able to be transparent in our dealings.

Ranil Wickremesinghe: Hon. Minister, there is one matter. Have you got confidence in Mr. Harry Jayawardene? Will you keep him as Chairman of Air- Lanka?

Dharmasiri Senanayake:I will remove him the day I lose confidence in him. It is in my hands. He is in my hands. I am just talking about my friend Mr. Anura Bandaranaike. (interruptions)

I do not press you on this matter.

Hon. Speaker, I need to clarify another matter. But unfortunately I only have five minutes. (interruptions) Yes. I have eight minutes.

I have written to Chairman of the PERC and the Opposition Leader on 8th April. PERC is empowered to decide on ventures to be privatized. Similarly, if such a decision is taken, all documents relating to that should be presented in Parliament. Responding to the Opposition Leader's request, I tabled the necessary documents before the period of three months were over.

We have not hidden them, and we are committed to the task of tabling them within the specified period. These decisions were taken with the president's consent.(interruptions) Why do you say it is unnecessary?

I was not aware that the Opposition asked for a debate with the intention of insulting and hurling abuse at the government. Where is Mr. A.C.S. Hameed who requested the debate, and where is Ronnie de Mel. Besides the Opposition Leader, none of the front benchers spoke today.

You did not allow us to maintain a balanced debate. For this, you must accept the blame. Eloquent speakers like Anura Bandaranaike and Tyronne Fernando were not billed to speak. If they spoke, we would have been able to maintain a certain level in this debate- have a more balanced presentation of views. Who spoke today? This is why I say that the purpose of this debate was to sling mud.

I was earlier speaking about the letter I wrote to you and the PERC. It was contention that members of parliament were seizing the opportunities to castigate and insult public servants and officials.

Ratnasiri Wickremenayake: Hon Speaker, with the consent of the Hon. Leader of the opposition, I move that the sittings be continued for another 15 minutes.

Speaker: Does the house agree?

House: Aye.

Will the, Hon. Members, with the consent of the Hon. Leader of the opposition, agree to continue the sitting for another 15 minutes?

Members

Aye!

Ranil Wickremesinghe

The Hon. Minister should be given a chance to reply. You said nothing. (Interruption)

Dharmasiri Senanayake:

What? What did you say?

Ranil Wickremesinghe

I said you have not given a reply to my question whether you have confidence in Mr. Jayawardena and whether you are keeping him as the Chairman of Air Lanka.

Dharmasiri Senanayake:

I have answered that question. (Interruption)

A few issues regarding AirLanka's partial privatization were raised in Parliament today. They all spoke about selling AirLanka to the Emirates. This is a misconception. Though 40% of equity shares were sold to the Emirates under the restructuring programme, this is still Air- Lanka.(interruptions)

We will never change the logo.(interruptions)

You have to act with more responsibility. The beautiful saree will not change, and would be improved upon. The peacock will remain, but would be designed better. AirLanka will be stationed where it is at present , and will not be shifted to Dubai.

Vasudeva Nanayakkara raised the issue of employees' future. Those who have served for more than six months will be confirmed. I have ordered this. I also have some power. (interruptions)

You laugh as if you are incapable of comprehending all this? I can tell you this. This an agreement that we as a nation will be proud of. Sir, this is completely in the national interest. When you come and tell this House that this is a complete sell out, I must say, that is a fabrication of the worst order.

Opposition: hear, hear!

Dharmasiri Senanayake:I challenge you, in any economics that you study from any side, this is the best deal that could be negotiated for a third world country like Sri Lanka.

I have been often quoted as having spoken about an inbuilt commission on many occasions. It is true that I have. This is how it all originated. When I became the Minister in charge of the subject, I was given a factual investigation by O.S. M. Seneviratne on the UNP's air bus deal. Having studied it for months, he wrote the following:

"The Board requested the Chairman that is the Chairman, Air Lanka then, Mr. Dunstan Jayawardene I believe to reiterate Air Lanka's request for Airbus for a substantial reduction on the A3 20 prices taking into account the fact that the price paid by Air Lanka was approximately US $4 million above the average power quoted in the Lloyds Register"

That was how things happened. It said that the price was raised by US $ 4 million above the market price. Then the price becomes over priced by 4 million. Is that not an inbuilt commission there. That is what I meant Sir.

I said that long before this report was presented. After five years, it has been proved that what I said then was 100% correct. Isn't your 1990 Airbus deal a bogus one? Was there a tender board? Where was the evaluation board?

A.H.M. Azwer: All those things were there!

Dharmasiri Senanayake:Indeed! In Chilaw. There was nothing. That was why, the moment we assumed office (interruption)

Dr. Rajitha Senaratne: Where are the commission reports?

Minister: Wait a minute. We also have reports.(interruptions) These MP s say that it must be the PRA report. I do not know about that. Therefore I do not wish to speak more on these reports.

The reason is that I have been instructed by the Attorney General that this is to be referred to a special presidential committee for further investigation. The new shall find out who is actually responsible for all that. Not PRA, Air Lanka. After the report is properly inquired into, we can take action against those responsible for the reprehensible acts.

Susil Moonesinghe:Let us know who have received commissions too!

Minister: I have been informed that the number one priority would be this. This not the end of the report, and we shall all who the culprits were.

Hon Speaker, I believe that Air Lanka required a refleeting excercise. Out of the nine aircraft in our possession, four of the Lockheed aircraft and the Tri Stars were purchased during your time. These are over 25 years old, and we need to repair them and replace some if them before next year.

Ranil Wickremesinghe:I need to refer to one matter, Mr. Minister. When you say that then cost of operating Lockheed is greater than the operating cost of Airbuses, yes it is so. But there is no repayment of the original capital either directly or through a wet-lease involved in Lockheed. In the case of a Lockheed, it is only the operating cost. In the case of an airbus, the operating cost is lower, when you pay Us $ 900,000 per year or month.

Minister: So what are you suggesting?

Do you suggest that we still continue with the American Lockheeds. They have to be sold now. Or else they will be cast aside.

While doing all these, unlike the previous regime, I have not taken a red cent from the state for the institution. I have not taken billions of rupees to oil Air Lanka.

What did Mr. Ronnie de Mel say some time back "Some Rs. 8 billion had to be pumped in like insulin into the ailing Air- Lanka to keep the aircraft flying in the air".

While I have not taken money for Air Lanka, I am proud to announce that this is an agreement between two countries. Emirates is 100% owned by the Emirs. It is not a company, and despite the lack of guarantee from the government of Sri Lanka, we have signed this as an effective commercial transaction.

It is true that these things would make you feel low. But this is a government able to use the existing routes, discover new routes, and fly all over the world.- to Australia, Johannesburg, daily flights to London, many locations in India like Trichi, Delhi, Bombay, Madras, Chennai, Trivandram etc.

Ranil Wickremesinghe: If this is abrogated, if this is set aside, they are asking someone to return the money, therefore.. (interruption)

Dharmasiri Senanayake: Though I was ready to speak for a long time, my time is restricted. I must inform the House that PERC officials have acted honourably. The President and the Ministry of Finance have acted with responsibility, and have ensured that public funds were not misused. I also hope there would be many more debates of this nature.

More News/Comments * The case against torture * Where was the debate? * He led us with exemplary zeal throughout

Return to News/Comment Contents