The Situation Report

27th September 1998

Staggering 30% hike in Defence Budget goes un-noticed

By Iqbal Athas

Soaring Defence Costs

Staggering 30% hike in Defence Budget goes un-noticed

Soaring Defence Costs

Parliament last Wednes day approved a Supplementary Estimate for Rs 12.2 billion for the 1998 defence budget.

Originally budgeted defence expenditure for the current year was Rs 45 billion. With the additional amount, the total for this fiscal year is Rs 57.2 billion.

Here is a break-down of the amounts:

SRI LANKA ARMY-Recurrent Expenditure – Rs 5.803 billion to meet pay, allowance, essential military supplies, services (such as explosives, additions, improvements, repairs to plant, machinery and compensation).

Capital Expenditure – Rs 1.388 billion to write off the outstanding liability of the Acquisition of Land, Building belonging to the State Fertilizer Manufacturing Corporation at Batalanda, other essential Military items such as Vehicles, Military Equipment, Acquisition of land and Buildings which are needed urgently for the ongoing Operations in the North and East.

SRI LANKA NAVY-Recurrent Expenditure – A sum of Rs 971 million to meet additional expenditure for salaries and allowances, repairs maintenance and other logistic support for the Ships, Craft and Establishments in the Sri Lanka Navy.

Capital Expenditure – A sum of Rs. 315 million is required to meet the payments for the Arms, Machinery in order to enhance offensive defensive capability, to meet the threat posed by terrorists effectively against ships/craft Establishment of Navy.

SRI LANKA AIR FORCE Recurrent Expenditure – A sum of Rs. 572 million is required in order to meet the additional expenditure of the Sri Lanka Air Force on the incurring of personal emoluments Capital Expenditure – A sum of Rs. 609 million to meet the additional expenditure of the Sri Lanka Air Force on the purchase of "X Ray Machines", the settlement of Deferred payments for the purchase of C-l30 Aircraft and Combat Helicopters during the year 1998.

SRI LANKA POLICE Recurrent Expenditure – A sum of Rs. 2.26 billion for salaries, wages, travelling, other supplies (Cigarettes Allowance) .

Capital Expenditure – A sum of Rs. 200 million for Implements, Tools, Instruments and apparatus for settlement of 1997 Arms Purchases under the China – Sri Lanka (NORINCO) Agreement, furniture office and household equipment, Rs. 45 million are required under vehicles, communication equipment for SAARC Summit Expenditure and additional funds in a sum of l2 million for Rehabilitation, Improvement and Major Repairs of Buildings.

MINISTRY OF DEFENCE-Recurrent Expenditure – A sum of Rs. 40 million for payment of Salaries and Allowances to staff of Ministry of Defence, National Intelligence Bureau (Directorate of Internal Intelligence) Home Guard Scheme and National Cadet Corps are inadequate.

Capital Expenditure – A sum of Rs. 50 million to purchase arms to be issued to Home Guards who are serving in the threatened areas.

Staggering 30% hike in Defence Budget goes un-noticed

Most Sri Lankans weary about the 17 year long separatist war may not have realised the week which ends today marks a historic one.

Another major first has been added to the long list of important records in the country's military history. This time it is approval by Parliament last Wednesday of Supplementary Estimates amounting to Rs 12.2 billion for the war effort for the current year.

This is over and above the Rs 45 billion allocated in the Budget for the current year. The grand total of Rs 57.2 billion (i.e. the Rs 12.2 billion plus Rs 45 billion) constitutes a near 30 per cent increase in defence expenditure for 1998. That too with only three months to go before the year ends.

The fact that the cost of war is staggering with another large chunk of the national revenue being siphoned off for its conduct went unnoticed with little media attention. That too in the backdrop of a number of other unprecedented records in military history that have emerged this year.

Main among them is the ongoing "Operation Jayasikurui" (or Victory Assured), now on its 17th month – the longest ever military offensive not only in Sri Lanka but in contemporary military history throughout the world. I dare say more, about lives and military hardware lost. If I did so, readers are sure to see more white space on this page with the word "CENSORED." In the past weeks, the Army Censors have prevented me from giving you what I know are the correct figures. They were from unimpeachable sources. But the Army Censors added their own and insisted they were the correct ones.

Now, senior Government officials and some of their political bosses are becoming very touchy about the references I make to "Operation Jaya Sikurui." One high ranking and influential official who invited me to visit any part of the operational area in the north at a time convenient to me bemoaned that when I made references to the ongoing operation, I had said it was virtually stalled.

I did say that in these columns on September 13, in the course of exposing a highly controversial military procurement from China. I said that the ongoing operation has been "virtually stalled this year with the remote likelihood of it regaining momentum before the monsoons set in, a month away from now." There was no reference at all on the exposure itself. Not a word was said. What hurt them was the word "virtually stalled." It was only yesterday that some of the international news agencies referred the ongoing operation resulting in a "stalemate."

More on that particular episode, where even Her Majesty the Queen has been dragged into the drama, in these columns in the coming weeks.

Another first that is being achieved with billions being poured in to the war effort is the rapid modernisation of the military machine, both in terms of men and material.

As I have said repeatedly in these columns, the separatist guerrilla war against the democratically elected government began on October 15, 1981. This was when guerrillas fired the first shot to challenge state power by direct confrontation. Two Army soldiers, Lance Corporal Hewawasam and Private Tissera, were shot dead at Kankesanthurai Road on that day. Since then, there have been sporadic incidents involving the killings of civilians, state officials and policemen. Thus the war has been going on for the past 17 years. At that time, the Sri Lanka Army had a combined strength (both regulars and volunteers) of just over 12,000 men and some 650 officers. The war intensified after the unfortunate events in July, 1983.

Today, we have an Army of well over 100,000 not to mention the Navy, Air Force, Police and other auxiliary forces. Billions of rupees have gone to modernise their war machines and we have seen the defence budgets increasing every year. All too frequently they have been followed by Supplementary Estimates, a grim reminder that the moneys voted had been inadequate.

An Army, which did not have large artillery guns, battle tanks and other modern equipment now have them.

An Air Force, which did not have helicopter gunships, fixed wing bombers, unmanned aerial vehicles and other modern equipment now have them.

A Navy which did not have fast attack craft, sonar detection devices, landing craft and other modern equipment now have them.

For obvious reasons one cannot detail out the catalogue of modern equipment and machinery acquired. Suffice to say officers of the three forces receive specialised military training in military academies in many countries. They are also being trained in Sri Lanka by highly qualified military personnel, both local and foreign.

Their enemy, the LTTE guerrillas, do not have tanks and artillery, except for those captured from the security forces. They do not have helicopter gun ships or fixed wing bombers. They do not have fast attack craft or sonar equipment. Their cadres have not attended conventional military academies.

Yet, they have over the past 17 years continued to oppose the security forces and the battles go on. And the latest sum of Rs 12.2 billion is being voted to continue the fight to defeat them. Details of how this allocation has been voted appear in the box story on this page.

In raising these issues, the intention is not to question the commitment, the bravery and the valour of the security forces and the Police. There is no question about it. However, there are other questions that arises.

The sum of Rs 57.2 billion which is defence expenditure for 1998 is an all time high. The sum is equivalent to the cost of the Mahaweli Development Programme or could have sustained some important social welfare measures for the poorer sections of the society for a few years.

The fact that the latest financial allocations come in the backdrop of widespread corruption and highly irregular military procurements is no secret.

There has been shocking exposures, like for example, the deal for mortars and military hardware from Zimbabwe and the recent multi billion rupee acquisition of defence equipment from China's People's Liberation Army. These were exposed in these columns.

When the Zimbabwe deal came to be exposed, Deputy Defence Minister, General Anuruddha Ratwatte, declared that all what was ordered from (the state owned Zimbabwe Defence Industries) had arrived. But five months later, the Government ordered the CID to conduct investigations.

When details of how a US $ 80 million procurement deal with the People's Liberation Army's trading arm, Bomtec and Sri Lanka were exposed, there was deafening silence. This deal was despite the existence of a government to government agreement between two sovereign nations, Sri Lanka and China. News came from Beijing this week that Bomtec was now shutting down its network of overseas offices and discontinuing the services of their agents. This was after China's President, Jiang Zemin banned the military from indulging in business after reports of widespread corruption. Ban or no ban, at least in the case of Sri Lanka, Bomtec was able to secure a multi-billion rupee windfall before going out of business, not to mention their cronies in Sri Lanka – a clear case of what power and influence can have even over government to government deals.

Compounding this situation is an appeal sent out by the Ministry of Defence to Secretaries of Ministries, Heads of Departments and Chairman of State Corporations and statutory boards. It calls upon them to collect funds, at least a week's pay, for the war effort. Needless to say the appeal very clearly underscores the fact that the Government is urgently in need of funds to continue the war.

That too at a time when, as General Anuruddha Ratwatte, has told the nation that 98 per cent of the war is over and the very small portion of the remaining part is at a "decisive phase." He also declared last year that the LTTE strength was only a mere 2500, that too mostly young persons.

Another record this year is the continuing censorship, both on the local and foreign media.

This is in an era where communications technology has revolutionised the world. Barring the few conducted tours to the battle areas, media is denied access.

Bot the local and foreign media have to depend on the sketchy news releases put out by the Operational Headquarters of the Ministry of Defence.

In marked contrast, LTTE news releases reach the local media and Colombo-based foreign correspondents regularly. The Internet, the most influential development in the second half of this century, has revolutionised how governments, interest groups and people in general think and act about matters.

Policy and decision makers, unlike some politicians who have their own personal agenda, should try to comprehend how access to modern information technologies impinges on rules and regulations they have formulated to constrain reportage of the ongoing separatist war, particularly on the LTTE.

Emergency Regulations which proscribed the LTTE make it an offence for the Sri Lankan media to communicate any "order, declaration or exhortation" made by the LTTE. This is to some extent foolish. Even if a Sri Lankan cannot see any news relating to the ongoing war on satellite TV channels which are distributed locally since they are wiped out due to the censorship, they still can read LTTE news. One has to only access the LTTE web sites on the Internet. It is no secret that visitors to their web sites had increased after the censorship. Internet system providers are increasing rapidly in Sri Lanka. Those who still do not own a computer, can still have access by paying a few rupees at a Cyber Café in Colombo.

Some PA leaders, particularly Justice and Constitutional Affairs Minister, Prof. G.L. Peiris and Foreign Minister, Lakshman Kadirgamar, have acknowledged the short sighted decision of promulgating a law which cannot be effectively enforced. They told a news conference that such provisions will be amended to enable the media to present both sides of the situation. But, this has still to be done.

All what a small but powerful section of the PA has been able to say to justify the ongoing censorship is that the media provided sensitive military information to the enemy.

If the claim is an honest one and is true, there is no gainsaying that the media responsible should be taken to task. The answer does not lie in making sweeping general statements against the media or branding journalists who do not sing hosannas for them as LTTE acolytes, brothel owners or procurers of women to top brass in return for information. The answer is not a censorship and a total ban to all battle areas by the media. Ironically, the war has become the political and personal stock in trade for a few individuals and any comment, leave alone criticism or exposure, hurt their ego. Hence the dissemination of "all news" and photo opportunities on the war, even the conducted tours to the battle areas, are tailor made to deliver their personal message and personify their own image. And that with billions of public money being poured into the war effort. Little or nothing is said about the soldiers, the real heroes of the war – how they are facing all the odds in the battle lines and the sacrifices they make. One is reminded of the words of the Gulf War hero, General Norman Schwarzkopf.

He said "It doesn't take a hero to order men into battle. It takes a hero to be one of those men who goes into battle."

The Supplementary Estimates for Rs 12.2 billion says that the funds are urgently needed for the ongoing operations in the north and east.

The largest allocation has gone for the Sri Lanka Army (see box story) followed by the Police, the Navy, Air Force, and the Ministry of Defence.

Whilst provision has been made for the Army to acquire armoured vehicles, some of Navy's requirements have been categorised only as "implements, tools, instruments and apparatus."

In the case of the Air Force, provision has been made for the purchase of an unspecified number of "new C 130" Hercules transport planes (Rs 285 million).

An allocation of Rs 50 million has been made under the Ministry of Defence to purchase arms to be issued to the Home Guards.

Needles to say they will not receive them until next year, the year before Parliamentary elections.

Whilst this fiscal year has seen the highest expenditure in the 17 year war, the military effort in comparison has been inverse in proportion with operations stalemated or virtually stalled on all fronts. In the circumstances, the public have every right to question the justification for the heavy defence expenditure for no visible gain.

Public suspicion is more aroused as a result of being in the dark with regard to the war situation, which is the only obstacle in the way of unbridled LTTE ambition.

The media censorship has further heightened public feeling that there is something sinister in the manner in which the war is being conducted. The resulting lack of transparency and the many stories circulating of unprecedented corruption in regard to military procurement has created an air of public despondency, which is inimical to mustering support for the foremost question of national importance – the ethnic issue and the separatist war.

Examining the present situation, it is clear that a smaller segment has led the PA to paint themselves into a corner in so far as the military and political situation is concerned. They cannot by default isolate themselves from the public as well by not taking the public into confidence.

Against that background, the demand for Rs 12.5 billion, more than thirty per cent of the budgeted expenditure, demands clarification.

In the final analysis, it will do well for the Government to remember that public support is essential for the successful conduct of the war.

No war has been won without that support. It is also well to remember that it is the public that finally measures the political fallout of this situation.

In considering the total political-military situation, the Government needs to re-assess not only its military strategy but also its overall strategy in the context of political and public support. In doing so, transparency, at least on a need to know basis, is vital.

The Fifth Column

Editorial/Opinion Contents