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The Sunday Leader wishes its readers a happy, peaceful and prosperous New Year

 

 

Opposition to call for SC on Sakvithi
and Golden Key scams

 

Lohan and Malik face off in Kandy

 

JVP takes to the streets in support of SC

 

Rescheduling of O/L maths paper to
cost govt. Rs. 5 mn

  Lalith to divest his Seylan shares
to pay depositors

 

Final decision on TMVP
reorganisation this week

 

Hoteliers to request  financial
assistance from government

 

TUs request meeting with Fowzie


Fowzie wants fuel prices reduced

Petroleum Minister A.H.M. Fowzie has urged President Mahinda Rajapakse to honour the Supreme Court order on the reduction of fuel prices and implement the pricing formula immediately.

The Minister told the President the Chairman of the Ceylon Petroleum Corporation wanted to resign for fear of being hauled up before the Supreme Court on contempt charges for the corporation’s failure to implement the December 15 Court Order to sell a litre of petrol at Rs. 122.

Minister Fowzie fought a lone battle in Cabinet on Tuesday, December 23 to get the Cabinet to approve the price reduction in terms of the Supreme Court order without further delay but his plea was rejected by President Mahinda Rajapakse.

The President who circulated a copy of the Supreme Court Order at the Cabinet meeting said the Ministers needed time to study it in detail and revert to Cabinet at the next meeting scheduled for either December 31 or January 7.

The President also told Minister Fowzie the CPC Chairman was free to resign if he feared action by the Supreme Court.

Minister Fowzie, it is learned told the President he will communicate the Cabinet’s view to the Chairman and ask him to take a decision he sees fit in the circumstances.

Informed sources said Minister Fowzie also told the President there was no need to grant Ministers further time to study the Court Order since it was straight forward and that the Court had come to a finding that there was arbitrary Executive action.

"What is there to study it further. Let us comply and complain," Fowzie had argued.

However Consumer Affairs Minister Bandula Gunawardene had told Cabinet in terms of the Constitution only Parliament can impose or reduce taxes and that such authority is not vested in the Supreme Court.

The Sunday Leader learns Minister Fowzie had told Minister Gunawardene not to attempt to teach the Supreme Court the law of the land.

Fowzie had said the Chief Justice knows what his powers are and the interpretation of the Constitution was within the jurisdiction of the Supreme Court and that they have clearly determined there was an arbitrary use of executive power in imposing levies on fuel.

 


Opposition to call for SC on Sakvithi and Golden Key scams

The Opposition is to call for a Parliamentary Select Committee to probe the role of the Central Bank and the Monetary Board with regard to the Sakvithi and Golden Key Credit Card scams when the House convenes in January.

The Opposition will in particular call to probe what steps if any the Central Bank and the Monetary Board have taken to supervise and regulate the organisations involved in the controversy and whether any investigations were carried out on these two scams.

Opposition Leader Ranil Wickremesinghe confirmed to The Sunday Leader a call to appoint a Select Committee will be made when Parliament meets in January.

It is learned the Sri Lanka Muslim Congress, United People’s Front of Mano Ganesan and the SLFP(M) convener Mangala Samaraweera will also be party to the call for a Select Committee probe.

Informed sources said the Opposition will also seek the support of the JVP and the TNA to support the motion for a Select Committee.

The Sunday Leader also learns the Opposition motion will call for a probe on any possible conflicts of interest or dealings members of the Monetary Board may have with any of the institutions embroiled in the controversy.

Chairman of the Ceylico Group Lalith Kotelawala last week addressed the depositors of the Golden Key Credit Card and assured all their monies will be returned.

Kotelawala in a full page newspaper advertisement last week said appropriate action will be taken against those involved in the credit card scam and the depositors monies returned.

The members of the Monetary Board are Central Bank Governor Ajith Nivard Cabraal, Treasury Secretary Sumith Abeysinghe, Tilak De Zoysa, Nimal Welgama and Manohari Ramanathan.

 


Lohan and Malik face off in Kandy

Two key figures in the Udathalawinna massacre are to contest from opposing sides at the Central Provincial Council election scheduled for February.

The Sunday Leader learns Lohan Ratwatte, the son of former SLFP strongman Anuruddha Ratwatte will contest on the UPFA ticket from the Kandy district while Malik, the key eye witness to the massacre will be on the UNP ticket.

The Udathalawinna massacre took place on December 5, 2001 soon after polling closed for the General Election in the Kandy District.

In the massacre several Muslim youth were given chase in a vehicle and gunned down in an election related incident where the primary accused were Ratwatte and two of his sons including Lohan. All three were acquitted after a High Court trial that gripped the nation.

The key eyewitness evidence at the trial was given by Malik, a Muslim youth who supported the candidature of SLMC Leader Rauf Hakeem.

It is learned President Mahinda Rajapakse had summoned Lohan Ratwatte to Temple Trees and insisted he contest the election on the UPFA ticket with an assurance of full security cover.

Informed sources said the decision of Lohan Ratwatte to contest was also communicated to the UNP with an assurance he will not engage in any violence. Ratwatte’s presence in the UPFA list is expected to be a key election issue with the sizeable Muslim voters in the Kandy district.

Meanwhile two of UNP National Organiser S.B. Dissanayake’s brothers will contest from the UPFA and UNP tickets respectively from the Nuwera Eliya district.

 


JVP takes to the streets in support of SC

By Mandana Ismail Abeywickrema

The JVP is to take to the streets this week to protest against the government’s failure to abide by the Supreme Court (SC) directive to reduce the price of a litre of petrol from Rs. 122 to Rs. 100.

According to the JVP, the protest is aimed at forcing the government to abide by the SC directive and provide relief to the people by reducing local fuel prices in line with the declining global fuel prices.

JVP sources told The Sunday Leader that the protest campaign would commence this week from Colombo with a protest march and rally calling for the reduction in fuel prices.

"It will be a people’s protest. The protest campaign would start from Colombo and would be taken to other parts in the island as well," the source said.

The JVP last week launched a poster campaign calling on the government to reduce the local fuel prices according to the SC directive.

JVP parliamentary group leader Anura Kumara Dissanayake also told the media last week that the government was conspiring to connect the SC ruling with the war and insult the judiciary as the latter has become an obstacle to its anti-democratic acts.

The government however has decided not to reduce the fuel prices in keeping with the SC order until the situation was studied further and the cabinet of ministers were asked by President Mahinda Rajapakse to study the order and submit their recommendations at the next cabinet meeting.

 


Rescheduling of O/L maths paper to cost govt. Rs. 5 mn

By Nirmala Kannangara

The Education Ministry’s failure to re-schedule the controversial Ordinary Level (O/L) Mathematics paper in the middle of the O/Level examination is to cost the government Rs.5 million, alleged the Ceylon Teachers’ Union (CTU).

President CTU, Joseph Stalin told The Sunday Leader that the if the Education Ministry paid attention to the request made by the students, parents and teachers to cancel the December 13 examination and to re-schedule the maths paper during the progress of the O/Level examinations, it would have cost the government only around Rs. 500,000.

“Although the trade unions demanded for the maths paper to be re-schedule immediately the commission that was appointed by the government claimed that lack of time to answer the questions was the only issue faced by the children. But the trade unions, students and parents insisted that the paper was based on the new revised syllabus which was not even taught in schools, consequent to which the cabinet decided to cancel the paper and to reschedule it for January 17,” claimed Stalin.

“Although the Education Minister is now claiming that considering the plight of the students the government decided to hold the exam once again, we as trade union representatives would like to ask as to who is going to foot the Rs. 5 million bill for the January 17 examination,” queried Stalin.

According to Stalin, it was the Education Minister and the Ministry officials together with the Director General of Examinations and his staff that is responsible for the mistake and it is these officials who have to bear the cost of holding the January 17 examination.

“The government can say that considering the plight of the students the cabinet decided to re-schedule the examinations. But what we would like to know is whether the cost of holding the examination would be borne by the officials who were responsible for the mistake or whether it is the general public who would have to pay for their sins,” Stalin said.

Meanwhile the CTU has requested President Mahinda Rajapakse to take necessary action to claim the Rs. 5 million  from the Education Ministry and Examinations Department officials who were responsible for the whole issue.

“If there was a minor error on the part of any government officer, the government would call for the explanation of that officer and all those who were connected with the matter.  There have been many instances where the employees have lost their jobs. But when it comes to the high officials including the Education Minister and Commissioner General of Examinations the government has so far failed to hold an inquiry which cannot be understood,” added Stalin.

He further added that if the Rajapakse administration fails to recover the cost from the officials concerned the education sector trade unions would resort to trade union action within the next two weeks.

Education Minister Susil Premjayanth was not available for comment.

 

Lalith to divest his Seylan shares to pay depositors

Chairman of the Ceylinco Group of companies Lalith Kotelawala and the Ceylinco Group have decided to divest their shares in Seylan Bank to pay the depositors of Golden Key, The Sunday Leader learns.

The decision to divest his shares and pay the depositors who were victims of the credit card scam carried out by top level employees of Golden Key was taken by Kotelawala last week.

Informed sources said Kotelawala took the decision to divest his shares and pay the depositors because most of the depositors had invested in Golden Key due to trust they had in him and he did not wish to let them down.

“Even though Kotelawala had no role to play in the scam and was himself misled on the workings of the credit card company, he wants to ensure the depositors the trust they placed in him was not misplaced,” the sources said.

It is learned almost 75% of the depositors could be paid with the divesting of Kotelawala’s shares in Seylan Bank with the balance to be raised through other investments.

Meanwhile, The Sunday Leader learns a senior woman employee of Golden Key closely associated with a top Management member of the company had run up a credit card bill of Rs. 179 million.

It is also learned Kotelawala has requested the CID to carry out a full investigation into the scam and charge those responsible.

The Sunday Leader also learns the CEO of the company Kavan Perera when questioned on the scam by Kotelawala before his lawyers had said he did not defraud any money but that he had been reckless.

Meanwhile, Seylan Bank yesterday issued a statement on the divestiture. Following is the full text of the statement:

“Following the Founder Chairman Deshamanya Dr. Lalith Kotelawala’s Press release of Saturday 27th December 2008, we would like to make the following clarifications to the General Public and our Valued customers of Seylan Bank, as we have received inquiries in this regard. 

“What has been stated in the press release is that our Founder Chairman and Ceylinco Group have decided to divest Seylan Bank shares owned by Ceylinco Group so as to raise funds to honour the dues to Golden Key credit card holders.  We emphasise that the intended sale is of the shares owned by Ceylinco Group to a potential reputed investor subject to the permission of the relevant regulatory authorities.

“This is merely a transaction between Ceylinco Group as share holders and a new acceptable investor. 

“It is further clarified that what is intended for sale are not the assets of the Seylan Bank, investments made by the bank or any shares owned by Seylan Bank.  Further we wish to inform that Seylan Bank will not use the depositors’ funds to meet the obligations to Golden Key Credit card holders. 

“By deciding to sell the shares owned by Ceylinco Group, the Chairman and Ceylinco Group have displayed the commitment of Ceylinco to meet their obligations.

“Seylan Bank is a licensed commercial bank which is regulated and supervised by the Central Bank of Sri Lanka.”

 


Final decision on TMVP reorganisation this week

A final decision will be taken this week with regard to the party structure and to put a end to conflicting reports of changes within the TMVP, party officials said.

TMVP spokesperson Azath Moulana, a supporter of Eastern Province Chief Minister Sivanesathurai Chandrakanthan told The Sunday Leader that the problems with regard to the party will be resolved at a party hierarchy meeting this week.

Moulana added that the meeting would include MP Vinayagamurthi Muralitharan as well.

“The party hierarchy, including Karuna Amman will meet this week to find a suitable solution to all the problems and confusions,” Moulana said.

However, Muralitharan’s spokesperson D. Kamalanathan told The Sunday Leader that he was not aware of such a meeting of the TMVP.

“I’m not aware of such a meeting,” he said.

There were reports last week that Muralitharan had formed a separate party named Tamil Makkal Viduthalai Koottani (TMVK). However, this was denied by his spokesperson who stated that no decision had not been reached with regard to the change in party name.

 


Hoteliers to request  financial assistance from government

By Nirmala Kannangara

The tourism industry, which was once the fourth largest foreign exchange earner to the country, is currently facing a severe crisis and is to ask for financial assistance from the government for its survival, the Tourist Hotel Association of Sri Lanka (THASL) told The Sunday Leader.

Since the industry has started to crumble following the present situation in the country followed by the global financial recession, Sri Lanka’s leisure industry has hit rock bottom and in the event the trend continues further, around 20-30 THASL member hotels would face the threat of closure, according to President THASL and the Chief Executive Officer/Director Serendib Leisure Hotel Managements, Srilal Miththapala.    

According to Miththapala, the request for  financial assistance will be made to the government at the earliest with hopes for favourable response in order to keep the leisure industry afloat.

“It was recently that we came to understand that the then government in 1987 has given financial assistance to the industry which was seriously affected during the height of JVP insurgency. This was made in order to prevent an impact on the dependents in the industry and helped to avoid staff lay off. Following this example we are positive that the THASL would receive the kind consideration of the present regime as well,” claimed Miththapala. 

According to Miththapala forward bookings have lessened over the past few weeks and Russian, German, UK and French market patronage has come down very badly.

“There is very little to talk about the German market as well as the other tourism generating markets as no tourists from these countries are travelling here due to the global recession. Although the present situation is mainly due to the global crisis we could still attract tourists even in small numbers if the Government could agree to yet another ceasefire to bring peace to the country and make the industry bounce back as it happened with the ceasefire agreement in 2002,” added Miththapala.

Meanwhile, President, City Hotels’ Association and Director Operations Holiday Inn Colombo, Shanthi Kumar told The Sunday Leader that the occupancy in city hotels has seen a drastic drop in December compared to the previous year.

“By mid January the situation would further decline and the hotels are already facing a drop in the sale of food and beverage.

“Although the global recession has badly affected the tourism industry, the city hotels are further suffering due to the sudden road closure for VVIP travels. The city hotels have so far not laid off staff, but if this situation  continues,  we will have to think of a reduction of staff  for our survival because we spend huge sums of money to maintain the standard of our hotels,” Shanthi Kumar added.

According to him the occupancy as well as take-away sales have dropped by 25% respectively, which is a huge loss.

However, Managing Director, Amaya Leisure PLC, Lalin Samarawickrema told The Sunday Leader that the group has incurred a Rs.36 million loss for the first 11 months of 2008.

He further stated that Amaya Leisure has postponed its decision to add two more luxury properties to the industry indefinitely, due to the current situation faced by the industry.

“Until the situation improves we need to keep the funds intact to run the three hotels,” Samarawickrema said.

President Sri Lanka Association of Inbound Tour Operators (SLAITO) and Chairman Connaissance Travels, Chandra Wickremesinghe told The Sunday Leader that the travel sector too was undergoing severe losses due to the present global recession.

“According to official statistics the drop in arrivals in 2008 is between 10% - 20% but there has been a drop of Rs.30% in leisure travellers  compared to the previous year,” Wickremesinghe said.

Wickremesinghe further stated that the recent cancellation of five to six Russian charter flights too was a major blow to the travel industry.

“Around 300 Russians travel in a charter flight and this is a segment that spends long vacations in the country and when they don’t arrive it is a huge loss to the industry. With the present situation the future of the industry is bleak. However we hope things would change and the industry could bounce back within a few months,” Wickremesinghe said.

 


TUs request meeting with Fowzie

By Mandana Ismail Abeywickrema

The JVP’s trade union wing, the All Ceylon Trade Union Federation (ACTUF) has requested an appointment from Petroleum and Petroleum Resources Minister A.H.M. Fowzie for a discussion on issues related to the country’s petroleum sector.

According to trade union sources, the present crisis in the fuel sector is  also to be taken up for discussion at the meeting.

ACTUF Chairman and parliamentarian K.D. Lalkantha in a letter to Fowzie sent on Friday (26) has sought an appointment to discuss the divesting of the one third share of the CPSTL (Ceylon Petroleum Storage Terminals Limited) and 107 petrol sheds that are currently being held by the Treasury, to the Ceylon Petroleum Corporation (CPC), the commencing of several production facilities from petroleum by-products under the CPC and several demands of the CPC workers.

According to Lalkantha he is to accompany the delegation of members from the JVP affiliated Ceylon Petroleum Common Service Union (CPCSU), which has also requested a meeting with the Minister.

The CPCSU in its letter to Fowzie has reminded him that a cabinet memorandum was presented on July 14, 2006 to divest the one third share and the 107 filling stations of the CPSTL that is currently being held by the Treasury back to the CPC and to absorb the CPSTL staff to the CPC.

According to CPCSU, following the approval of the cabinet memorandum, the government in March 2008 received the Attorney General’s advice on the matter and the AG had said that the legal barriers to move on with the divesting of CPSTL shares to the CPC would be removed by December 31, 2008.

“Therefore, the workers have doubts about the government’s move to appoint a separate chairman to CPSTL in this backdrop,” CPCSU has said.

The union has also said it needed to discuss the salary increment of the CPC workers in 2009, the payment of arrears of allowances, commencing of gas distribution by the CPC, repairs to the Sapugaskanda refinery to increase its capacity and the plan to commence other distribution divisions of the CPC that are currently closed down.

 


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