Athletics: Rs. 702 million spent for aborted Commonwealth dream

Private companies, many of them listed on the stock exchange and accountable to shareholders, dished out millions of rupees towards the previous administration’s failed bid to host the 2018 Commonwealth Games in Hambantota, it was disclosed to Parliament this week. 

Some of these payments--deposited into a Bank of Ceylon current account belonging to CWG Hambantota 2018 Pvt Ltd--were made in 2012-13, well after Sri Lanka’s bid was rejected in favour of Gold Coast, Australia.

Together, the companies contributed Rs 519 million while the State sector, led by the Ministry of Sports (Rs 110mn) funneled in Rs 190mn. 

The details were revealed by Public Enterprise Development Minister Kabir Hashim in response to a question raised by JVP Parliamentarian Nalinda Jayatissa. 

CWG Hambantota, a private entity, was floated in 2010 to handle the costly campaign. 

It was liquidated only in May 2015, after the new Government assumed the power. 

The bid was rejected in November 2011. 

Among the financial supporters of the campaign was Perpetual Asset Management, which was chaired by Arjun Aloysius. In March 2011, the company donated Rs 15mn to CWG Hambantota. 

However, Environmental Resources Investments PLC, which is a public listed company, was the most generous benefactor with a contribution of Rs 75 million in three installments between April 2011 and May 2012. 

The company attracted bad press in September 2011 when stock market regulator Securities Exchange Commission of Sri Lanka fined it Rs 10.4mn for non-disclosure and dissemination of misleading information, particularly in respect of certain related party transactions and cross-border investments. 

Anilana, which runs hotels, resorts and retreats around the country, made the second largest contribution of Rs 50mn in May 2011. It, too, is a listed company. 

The company’s Managing Director Asanga Seneviratne, who founded Anilana Hotels and Properties Ltd, was a President of the Sri Lanka Rugby Union and a close ally of the Rajapaksa administration. 

Lanka Orix Leasing Company (LOLC) paid Rs 22mn in three installments. 

Two of these were in April 2011 while a third was in January 2013. 

Dialog Axiata, Access Engineering, Browns & Co PLC, Softlogic Holdings Plc and Laugfs Holdings contributed Rs 10mn each. All are listed on the stock exchange. 

Senok Trade Combine gave Rs 5mn in August 2011 while Senok Automobiles gave another Rs5mn that month. 

Trillium Residencies paid Rs 7mn in November 2011, the month the bid was rejected. 

A host of others coughed up sums of four million, five million, three million and one million. 

The date of the last payment is specified in documents submitted to Parliament as February 2013 when a company named ESNA deposited Rs 1.5mn. 

In this way, the account collected Rs 63mn from the private sector in May 2011; Rs 55n in April and Rs 31mn in August. 

Separately, an individual named Mahinda Fernando deposited Rs 17 million in November 2012; and another named M C P K Samarakoon shoveled in Rs 20mn in October that year. 

Despite eventful last-minute lobbying—and a close contest—Hambantota received just 27 votes while games-ready Gold Coast was endorsed by 43 CGF members. 

The Commonwealth Games Federation described Sri Lanka’s bid as “largely virtual” and offered medium to high risk. Sri Lanka took a huge delegation of 160 to the Caribbean well ahead of the scheduled vote on November 11, 2011. 

Aboard the chartered plane were politicians, businessmen, cricketers, athletes, actresses, dances and chefs. In contrast Australian delegation was 20 members. 

The bid to host the games in deeply rural Hambantota was only ever based on an elaborate dream. 

The proposal was conjured out of thin air by Namal Rajapaksa, the president’s sporty oldest son who was being groomed for leadership at that time. 

The Organising Committee was co-chaired by Mahindananda Aluthgamage, then Minister of Sports and Ajith Nivard Cabraal, then Governor of the Central Bank. 

They spent millions of rupees on pmplegacy—a leading sporting events consultancy firm, consisting of specialists in transport, venue design, accommodation, security, brand and communication and cost consultancy, to help develop the Games bid.