The Political Column

What's Perumal's role in package?

That Cabinet Memorandum

What's Perumal's role in package?

By our Political Correspondent

With all the prominence and propaganda, Wayamba has assumed significance beyond its confines and both major parties are taking it as a test of strength on national basis and as a launch pad for bigger elections. The UNP ended the campaign, accusing the PA of unleashing violence. If so, observers say it was a taste of one's own medicine, given the UNP's record of corruption and intimidation of voters and rigging of polls d during its 17 years of office.

Both the UNP and the PA are fighting each other because they say they want to serve the people of Wayamba. This is a joke for most people of Wayamba.

"Why should they fight so much to serve the people of Wayamba?. If they want to serve us, they can serve at any time", one concerned voter told this column.

Others vowed to spoil their votes, saying they had lost faith in both these parties.

By Friday, there were more than 600 complaints of election violence. The Commissioner of Elections was notified of all the election-related offences so that he could act on them. 

UNP statisticians have prepared a data on the elections in Wayamba and quite predictably they say it will be a win for the party. 

The statisticians feel that about 700,000 of the 986,000 voters in Kurunegala District will vote tomorrow. In the 1994 General Elections, the PA polled about 350,000 votes and the UNP 320,000 approximately. The UNP analysts believe the JVP could take upto 25,000 votes in the Kurunegala District - mostly from the PA. Thus the UNP stands to gain.

Hence they say a ten percent swing would help the UNP to win.

In Puttalam District also the UNP thinks it could scrape through.

However, there were reports of clashes between party leader Ranil Wickremesinghe and chief Ministerial candidate Gamini Jayawickrema Perera. Mr. Wickremesinghe had, it is understood, been concerned about Mr. Jayawickrema Perera overplaying his role by taking on President Kumaratunga, a role reserved usually for the party header.

Mr. Jayawickrema Perera, had on several occasions challenged Mrs. Kumaratunga directly, even saying that this fight was not with the PA'a main candidate Sarath Nawinna, but with Mrs. Kumaratunga. This has caused some ripples in the UNP.

At a recent public rally, the UNP leader had expressed concern to his close associates that Mr.Jayawickerema Perera had tended to stray into areas, better left to others to handle.

By Thursday it appeared that the government was trying to bring in pressure on the UNP's strongholds in the Kurunegala District such as Kuliyapitiya, Hiriyala, Yapahuwa, Polgahawela and Kurunegala itself. The UNP was planning counter-strategies.

The UNP is also drawing a list of incidents of political violence to be given to foreign missions.

In one of these incidents, PA supporters are accused of stripping a woman at Gankiriyaya in the Kurunegala District. This allegedly took place when a UNP member Justin Galappathy, was going on a house- to-house campaign along with other supporters, including the victim. A gang armed with T- 56 weapons led by a PA Pradeshiya Sabha member allegedly attacked them after firing shots in the air. They first orderd the UNPers to stand in a row at gun point, allegedly stripped them and robbed their money and jewellery. Thereafter, they were ordered to run without clothes while shots were fired in the air. A complaint was made at the Katupotha police station but the culprits have not been taken in, the UNP said.

In another incident PA supporters are alleged to have attacked the Pannala meeting of the JVP. One analyst said such attacks would only drive the JVP back into the political wilderness from which two bloody insurrections were launched earlier. It is also pointed out that the JVP is full of youth, including those who have links with army deserters and cornering them could have dangerous repercussions.

After the Pannala attack on Tuesday the JVP brought its full strength to Pannala on Thursday, apparently for a showdown. But the PA was careful not to take it head on. The history of election violence goes back to 1973 when ruling party supporters allegedly went on rampage during the Dedigama by-election.

This was the home base of UNP leader Dudley Senanayake and after his death, the then United Left Front went all out to beat the elephant in its own terrain. This produced events that made the by- election the most violent in local election history. At that time it was the then Deputy Minister of Defence Lakshman Jayakody who led the ruling party's campaign. Finally the UNP candidate Rukman Senanayake won by a smashing 5,000 votes. Similarly, during the late 80s, the UNP lost another violent election in Ratnapura under the J. R. Jayewardene regime. The only election that the UNP could win after unleashing violence was the Mahara by-election where the late husband of the President, Vijaya Kumaratunga contested. Mr. Kumaratunga lost the election by less than 50 votes. It was clear that malpractices deprived him of victory.

Referring to the election violence in Wayamba today many are asking whether the NWP polls would turn out to be another Mahara or Dedigama.

Amidst all this confusion in the NWP, foreign diplomats handling information desks, toured the Kurunegala and Puttalam Districts to get first hand information on the election-related incidents. They met both the PA and the UNP leaders. A UNP delegation headed by Chairman Karu Jayasuriya, Dr. A. Wilson, Daya Pelpola, Milinda Moragoda and Rohitha Bogollagama had an hour long discussion with the diplomats.

Replying to charges against the UNP Mr. Bogollagama said the PA was unable to pinpoint as to which UNPer was involved in any incident. He said the UNP had made many complaints of PA violence but the police had not arrested anyone.

He gave them a dossier of allegedly state-orchestrated violence, citing cases. He mentioned a few names and said that Sarath Amunugama's office was attacked, and D. M. Bandaranayake, A.M.S. Adikari and candidate Anura Gopallawa also suffered at the hands of gangs allegedly linked to the PA.

The death of T. Sivakumaran of Wariyapola a treasurer of the UNP youth organisation, also figured prominently during the run-up to the elections. However, the Lake House paper "Dinamina" alleged that Siva is not a member of the UNP and carried a lead story last week that the UNP had promised a house and Rs. 100,000 if the party is allowed to make use of his death. Whatever it may be many UNPers including party leader Wickremesinghe and Chairman Jayasuriya attended the funeral of Siva who has been described as a Tamil militant turned towards mainstream politics. 

There were banners acccusing the PA of responsibility for the death of Siva. One banner named two ministers. When the police tried to cut down the banner UNP supporters made a complaint to Mr. Jayasuriya who was there. The police told Mr. Jayasuriya that they wanted to remove the banners since it was defamatory of the ministers.

The President later at a meeting in Wariyapola said she had ordered a full probe on the incident and said whoever was found responsible would be dealt with severely. But the President also questioned whether the death was caused by PA supporters or by others.

Meanwhile, the Catholic Church led by Chilaw's Bishop Frank Marcus Fernando, and Kurunegala, Bishop Raymond Peiris along with prominent Buddhist Prelates, the Ven. Rakawa Jinaratana, Ven. Thambulle Seelaratana, Ven. Buthiyagama Chandraratana have initiated steps to monitor the election. The Commissioner of Elections has recognized two NGOs as election observers and the Prelates would function under the NGOs. Godfrey Goonatilleke Chairman of the Marga Institute also met Justice Minister G.L. Peiris to discuss polls monitoring.

Away from the polls front, the ministers at their last meeting discussed many matters including the Attanagalla Trust Fund whch has been formed to help poor students. It is similar to the Maha Pola scheme, Education Minister Richard Pathirana told the Cabinet which met in the absence of President Kumaratunga. Some ministers opposed the move.

Jeyaraj Fernandopulle said if the benefits of the fund were limited only to students of Attanagalla, it would be unfair. He said the Maha Pola applied to the whole country and a special one for Attanagalla would be both unfair and confusing.

After the President walked in and took the chair, she asked whether the proposal was good.

Minister Pathirana said he ran into criticism from some ministers. The ministers referred to one clause where it had said that the money raised by selling timber in school gardens would be utilised by this trust fund. The President also agreed and decided that the trust fund bill should be reviewed.

Thereafter the ministers raised matters relating to the transport of passengers to Jaffna. 

Minister Fernandopulle asked about the arrest of a person named multi-million businessman Rajan who also operates ships to the north. He was arrested under the Prevention of Terrorism Act on charges of having links with the LTTE.

Mr. Fernandopulle claimed the charge was fake and that it was part of a conspiracy by two anti-government officials in the Defence Ministry and the Presidential Secretariat. He said a high official's son who was also in the shipping business had provoked the arrest of Rajan for reasons of business rivalry.

President Kumaratunga disclosed the wife of a Deputy Minister Janaka Tennakoon was a director of this shipping company and she felt that was the reason that the ministers were protesting against the arrest. In any case, she said she had ordered an independent inquiry so that he could clear himself.

While the ministers were discussing this Deputy Minister Janaka Tennakoon made contact with several ministers, apparently urging them to raise this issue. However, Mr. Fernandopulle stopped at this obviously not wanting to get into a big argument with the President.

The President also referred to the Deputy Minister Lakshman Kiriella whose photograph appeared with Rajan showing the businessman donating something to him. Some ministers said Mr. Kiriella might not have known who Rajan was. Minister Mahinda Rajapakse said such things could happen and referred to a similar matter he faced in Dubai. He said that many Sri Lankans posed in a photograph with him and among them was "Mora Sunil" a gangster.

The President completed the story, saying the picture had already appeared in the papers. Mr. Rajapakse was surprised but not the President who insisted she had seen something to that effect. 

Mr. Rajapakse said then it could be a picture of Mora Sunil with someone else but not him. He said he had made a statement to the Special Presidential Commission probing the Lalith Athulathmudali assassination, describing the Mora Sunil picture as an accident.

The ministers were also given a document relating to the claim made by Evans International from the Government of Sri Lanka. Evans International was involved with a company called the Centrepoint floated by the UDA and the Ceylinco Group to develop the financial district of Colombo which was devastated by the terrorist bomb in January, 1996. 

The memorandum dated 5th January, 1999 and signed by Foreign Minister Lakshman Kadirgamar explains the whole matter in detail where the company had claimed compensation from the government for failing to award the contract. The government subsequently appointed a committee headed by Dr. Rohan Perera of the Foreign Ministry to go into the matter.

The committee has suggested an amicable settlement which was endorsed by the Attorney-General. See box for Cabinet memo randum

Meanwhile, the mysterious return of former North-East Chief Minister Varatharaja Perumal has caused a stir in political circles. Some observers believe the government will make use of Mr. Perumal who claims he has a substantial political base in the North.

Mr. Perumal after his arrival met government ministers, including Dharmasiri Senanayake and G.L. Peiris. Mr. Perumal earlier had alternative proposals for a political solution to the ethnic crisis. But after talks with the ministers, he has agreed to consider the goverment's devolution package with some amendments.

With Mr. Perumal now back, the government is now planning a vigorous campaign among the Tamil people to get a better approval rating for the devolution package.

That Cabinet Memorandum

Mr. H.L. de Silva states his conclusions as follows:

(1) There was no valid contract between the GOSL and Evans International which obligated the government to guarantee the loan which the ExIm Bank was willing to grant Centrepoint. Nor was there any valid contract between GOSL and Evans which obligated the government to employ Evans for the construction work envisaged in the Construction Contract of August 6, 1996.

(2) Centrepoint was not the agent of GOSL when it purported to enter into the Construction Contract of August 6, 1996, which required a comprehensive study to be made in the first instance on the basis of which the exact scope of the construction work and the contract price was to be determined.

(3) There is no actionable breach of contract on which Evans could claim damages from GOSL in respect of the transactions.

(4) The conduct of negotiations and the correspondence entered into in connection therewith and the aide memoire of February 13, 1998, do not constitute admission of liability on the part of GOSL which would prejudice its position in the event of a reference to arbitration. 

Mr. H.L. de Silva cites a number of instances where in the correspondence between the Rohan Perera Committee and Evans International, and in the said aide memoire itself, it is expressly stated that any offers made of ex gratia payment are made in the interest of "amicable relations between the United States and Sri Lanka" and "without any admission of liability on the part of the Government of Sri Lanka or without prejudice to the Government of Sri Lanka".

Mr. H.L. de Silva concludes: "While we are reasonably confident that these contentions would ordinarily prevail in a court or tribunal in Sri Lanka we are however not so optimistic that such arguments would receive the same degree of acceptance in a foreign court or arbitral tribunal when viewed from the standpoint of realist jurisprudence, especially in the light of the opaque features of the case to which we have adverted".

His final words are: "We have to observe that the resolution of this problem may not necessarily depend on strictly legalistic considerations but, for reasons stated earlier, on political considerations as well," on which he refrains from expressing any definitive opinion.

In the view of the Attorney-General the acts of the UDA and Secretary/Treasury do attribute liability to the Government of Sri Lanka although there is no direct contract to which the government is party. 

Mr. H.L. de Silva's opinion is different on this point. 

The Attorney-General's opinion also makes the same basic point regarding the hazards of international arbitration under the Investment Protection Treaty signed by the United States and Sri Lanka. 

He points out that if Evans International succeeds before an international tribunal GOSL may be ordered to pay the expected profits and interest as well. Such an award would be several times more than what has been recommended by the Rohan Perera Committee. 

The Attorney-General concludes that "in the circumstances it would be advisable and be in the best interest of the government to settle the dispute amicably as recommended by the Committee".

Minister Kadirgamar concludes:

"I remain clearly of the opinion that the best that the government can do in these rather tangled circumstances is to settle the Evans claim at the figure agreed between the Rohan Perera Committee and Evans International.

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