No decision on IMF package

By Amantha Perera

The status of the IMF-funded Stand-by-Facility remains undecided despite extensive talks between the government and an IMF delegation led by Deputy Director Anup Singh.

'We have had discussions with the government and it has shown willingness to continue with the package, Singh said last week but stopped short of elaborating. If the facility that has remained suspended since last August recommences, the government will have to enforce far-reaching reforms agreed by the PA government.

However, high-ranking government sources who took part in the discussions with the delegation told The Sunday Leader   they were not going to enforce all the reforms recommended by the IMF. It is a bitter pill, they observed, adding that labour reforms and amalgamating the National Security  Levy with the Goods and Services Tax was high on the budget proposals being worked out.

They indicated that the IMF was likely to decide once the budget is presented in mid-March and were hopeful that some sort of funding would be made available.

However, the IMF prescriptions, according to Singh, include, doing away with government ownership of the state banks, reforming the bloated public sector, reforming the financial sector and making the Central Bank an independent body. Singh also advocated that Sri Lanka should look at opening up the capital account as well.

'It will be very difficult to turn around (the economy) without the fundamental reforms, Singh told the members of the Ceylon Chamber of Commerce on Wednesday. Singh and IMF Resident Representative Nadeem Ul Haque had met with Prime Minister Ranil Wickremesinghe, Power and Energy Minister Karu Jayasuriya, Trade and Commerce Minister Ravi Karunanayake and Economic Reforms Minister Milinda Moragoda on Tuesday, February 12 .

However government sources revealed that even though it was looking at reforming the state banks, the methodology would be different from the prescription. 'It is a formidable agenda,' Singh admitted, arguing the longer the government holds back on the reforms, higher the cost.

The facility was suspended when the then Peoples Alliance (PA) government informed an IMF monitoring team in Colombo last August that it was unable to commit itself to a forward-looking reforms programme. The message was conveyed while the PA was negotiating with the JVP for support to stay in power.

The facility totalling SDR 200 million was due in four tranches, but only the first tranche of SDR 100 million was released. The monies were allocated once the government committed itself to far reaching reforms. The facility will expire by end June this year.

Last October, IMF officials at the headquarters in Washington admitted to The Sunday Leader  that it was the facility that saved the day for the PA and avoided a major financial catastrophe. 'We bailed out the situation,' they said.

No oaths without PM present

The six subject ministers who are to be sworn-in tomorrow as cabinet ministers,  last week refused to take oaths before President Chandrika Kumaratunga in the absence of Prime Minister Ranil Wickremesinghe.

It was announced that the ministers would be elevated to the status of cabinet ministers last week, but they could not take their oaths as scheduled, on Wednesday as President Chandrika Kumaratunga was indisposed.

However, when the ministers were summoned by Prime Minister Ranil Wickremesinghe on Wednesday evening, and were told he was planning to take up an overseas tour to Singapore and that the swearing-in ceremony will be held the following day, the ministers immediately refused to take oaths without his presence.

Commerce and Consumer Affairs Minister Ravi Karunanayake told the premier they will not take oaths before the president in his absence and they would do so after his return to the country tomorrow. Lands Minister Dr. Rajitha Senaratne too observed that they should not be taking their oaths before the president in the absence of the premier.

The six ministers who will be elevated to the status of cabinet ministers are Ravi Karunanayake, Dr. Rajitha Senaratne, Dr. Karunasena Kodituwakku, Imthiyaz Bakeer Markar, Milinda Moragoda and Mahinda Samarasinghe.

Meanwhile The Sunday Leader   learns that the Samurdhi Ministry is to be handed over to Minister S.B.Dissanayake this week.

Corruption complaint lodged against BCCSL

By Frederica Jansz

A corruption complaint against the Interim Committee at the Board of Control for Cricket in Sri Lanka has been lodged at the Commission to Investigate Allegations of Bribery or Corruption.

The Nugegoda Sports and Welfare Club on February 14, 2002 lodged a complaint with the bribery commission raising serious concerns against the conduct of members of the Interim Committee, BCCSL, namely, Vijaya Malalasekera, Micheal Tissera, Asantha de Mel and Sidath Wettimuny.

The complaint has been copied to Prime Minister Ranil Wickremesinghe and  Minister of  Sports and Youth Affairs Johnston Fernando.

The complaint asserts that the above named members of the Interim Committee are suspected to have misused or mishandled funds of the member clubs and associations of the BCCSL by signing an agreement for television rights with Taj Television Ltd.

The issue at stake is a three year sponsorship contract with WSG Nimbus for television rights covering Sri LankaÕs international cricket tours which was abruptly cancelled by the Interim Committee last year.

Malalasekera has said that they were forced to take such a decision as WSG Nimbus defaulted continuously on making scheduled payments to the BCCSL.

The Nugegoda Sports and Welfare Club however asserts that the subsequent sponsorship signed with Taj TV has caused a loss of US $ 6, 160, 000 (SL Rs. 579, 040, 000) to the BCCSL and its member clubs. The Memorandum of Understanding with Taj TV in respect of 10 cricket tours has provided for a monetary consideration of only US $ 10, 740,000 as against the agreement with WSG Nimbus for US $ 16.9 million for the same number of tours.   

Furthermore, WSG Nimbus had agreed to invest US $ 255,000 for the development of cricket in Sri Lanka, of which US $ 80,000 has already been paid.

In addition to the above monetary considerations, the WSG Nimbus agreement had several beneficial commitments for the development of Sri Lanka Cricket and had excluded the sale of Internet and Webcasting Rights, whereas Taj Television has been granted the Internet and Webcasting rights causing a further loss of approximately US $ 500,000.

The complaint to the bribery commission adds that there is also no additional payment above the contracted commitment. Also, satellite access feed fees of approximately US $ 6000 to US $ 7000per match day has not been included to be paid by Taj Television.

The complaint asserts that Taj Television was not a party who had been pre-qualified and the Interim Committee had entered into the Memorandum of Understanding with Taj Television hastily and surreptitiously. 

The complaint adds that the extent of worldwide television coverage to the international cricket loving public is not specified or committed in the Taj Television Memorandum of Understanding.

The cricket club has reiterated in its complaint that a full professional inquiry should be immediately initiated and those responsible held accountable, regardless of the personalities concerned.

Access routes to Wanni opened

History was made on Friday when the Sri Lanka government and the LTTE effected the opening of two access routes into the Wanni, both to ease pressure on transport into the Wanni and as a confidence building measure preceding talks that are expected to begin later this year.

The two routes opened were the A9 route from Kandy to Jaffna, which had been punctuated at Vavuniya that was opened up to Kilinochchi and the route connecting Madhu from the Vavuniya-Mannar road through the Uyilankulam junction. 

A government party led by Economic Reforms Minister Milinda Moragoda, Samurdhi Minister R. A. D. Sirisena and Deputy Minister of Wanni Rehabilitation Noordeen Mashoor opened the A9 route after a simple ceremony at Vilakkuvaithakulam, north of Vavuniya around 9.30 Friday morning.

Thangan, alias Suddha represented the LTTE at the opening. State controlled Access SLBC reported Thangan saying that the LTTE awaited the government's response to co-ordinate moves on the re-opening of the road north of Kilinochchi up to Jaffna.

The Uyilankulam road was opened around noon. The party from Colombo comprised Moragoda and Mashoor as well as Army Commander Lionel Balagalle. Before the ceremony, a group of around 60 to 70 civilians had gathered at the Uyilankulam junction. One of them ceremonially declared open the road.

Speaking on the occasion, Moragoda said, The path to peace is a rocky one, but the prime minister and the government are determined to see that it succeeds.

Sources said that civilians crossing from the south into the Wanni at Uyilankulam were not body-checked, nor were their parcels examined. However their identity papers were scrutinised.

Under the new regulations, the two roads will be kept open for traffic from 8 a.m. to 5 p.m., Monday to Friday.

The two routes were opened after the route from Piramanalankulam into the Wanni was sealed earlier last week. The Piramanalankulam route from the 'uncleared' areas was used after A9 was closed in 1997 after operation Jaya Sikurui began with the objective of wresting the Wanni from the LTTE.

The A9 however is open at present only up to Kilinochchi. The government has said the opening of the road to Jaffna would integrate the communities of the two areas, promote internal tourism and facilitate trade.  

State vehicles misused

An exchange of vehicles between the Ministry of Information and Media and the Telecommunication Regulatory Commission (TRC) has raised eyebrows, with one of the 'exchanged' vehicles involved in an accident where one person died.

The second vehicle remains a white elephant and is permanently garaged.

The vehicle that belonged to the media ministry, a BMW, (18-7900) was exchanged with another vehicle, a Pajero (65-0602) belonging to the TRC. The exchange took place in August 2000.

Private secretary to former Minister Anura Priyadharshana Yapa, Narada Sumanaratne, initiated the exchange. Sumanaratne, wrote under Yapa's official letterhead to Director General Telecommunication (DGT) R. D. Somasiri, "Exchange of 18-7900 BMW car with 65-0602 Pajero," stating that the exchange between the ministry and the TRC had been made with effect from August 1, 2000. The letter written by Sumanaratne has been dated December 19, 2000.

However, the Pajero that was used by Yapa, met with an accident on December 19, 2001 at Oliyamulla junction Wattala. H. B. A. Bandara who was driving the vehicle died on the spot while others in the vehicle namely Daya Hemachandra, Anura Pushpakumara, R. W. J. Wijeyatileka and Ranjith Premathileka received severe injuries.

The Pajero collided with a Negombo bound lorry that was coming towards Colombo. According to the Wattala police, Yapa, had visited the police station but had not made a statement.

The Pajero is now beyond repair and neither the Ministry of Information and Media nor the TRC are claiming it.

Meanwhile, the BMW that was exchanged with the Pajero remains a white elephant. The car is not in use because of its low performance on fuel. It is at present garaged at the Prestige Automobiles, the agents for BMW, at Battaramulla.

During the period commencing from August 16, 2000 to November 2001, the TRC though not owning the vehicle, has spent more than Rs. 500,000 on its repair and maintenance. (Please see box).

The Sunday Leader reliably learns that the TRC has not made any attempt to have the Pajero released from the Wattala police station as its exchange was not done in a proper manner. It therefore continues to remain garaged, though maintained by the TRC.

Meanwhile, the Auditor General in his report under the title Vehicle Utilisation has said, "The vehicle No. 65-0602 belonging to the commission had been exchanged with another car No. 18-7900 belonging to the ministry of information and media."

UNFers using undue influence

Henchmen of UNF ministers and MPs have commenced approaching business establishments for favours despite pledges by the UNF high command to run a clean government.

The factories in the Free Trade Zone (FTZ) in Katunayake have been receiving 'requests' from the officers of Power and Energy Minister Karu Jayasuriya, Interior Minister John Amaratunga, Rehabilitation and Resettlement Minister Dr. Jayalath Jayawardena , parliamentarian Olitha Premathiratne and even one time UNP government minister, Wijepala Mendis.

The Sunday Leader is in possession of letters written by Ranjan Bandara, coordinating secretary to the UNF's Deputy Leader Karu Jayasuriya to factories in the FTZ requesting them to sell cut pieces to Indika Jayawardene and K H Amarasuriya who, he says, are party supporters. Though the letters have been written on the letterhead of the deputy leader it has been signed by Bandara.

Jayasuriya has informed his supporters who inquired about the letters that he was not issuing such recommendations.

Both Jayawardena and Amaratunga have forwarded these requests to factories, while Premathiratne has also instructed supporters to get in touch with factories to obtain the cut pieces. One such factory was contacted and requested to sell the stock to the new buyers. "Earlier it was Jeyaraj Fernandopulle's people who were getting all of it, now they can't do that," the factory manager was informed.

While the factory went about selling the stock to its usual buyers, several of Premathiratne supporters had arrived at the factory looking for the officer handling cut pieces and by last week the managers were fearing more visits.

The cut pieces are used to manufacture garments for local consumption and are 24 inches in width.

One of Mendis' supporters named Suda had allegedly approached buyers who have been contemplating buying stocks from the closed Atlas Gloves company after demanding money. One buyer left the premises realising that the cost would be too high with such payments.

Meanwhile, the UNF has so far not taken any action on reports of alleged post-election violence by party members in Negombo. Some party high ups have even remarked that the allegations were a bunch of lies.

Nevertheless, the UNF nomination list for the Seduwa-Katunayake UC was rejected and the PA list for Katana was also rejected prompting rumours of a hand in glove arrangement between the two parties.

DWC to go it alone in LG polls

The Democratic Workers Congress (DWC) general secretary, Mano Ganashan who contested the December 5 parliamentary election under the UNF symbol has decided to go it alone at the forthcoming local government elections.

Charging that the Ceylon Workers Congress (CWC), a member of the UNF government, has constantly attempted to marginalise the DWC, Ganashan, in a letter to Prime Minister Ranil Wickremesinghe has said he is compelled by circumstances to contest alone.

During the last general election Ganashan polled nearly 20,000 votes in the Colombo district, more than what all the CWC members polled together.

Ganashan was elected to the Western provincial council in 1999. He was then invited to sit in the opposition benches by the then Western Provincial Council Leader of the Opposition Karu Jayasuriya. Ganashan has said in his letter to Prime Minister that he has been supporting the UNP since that time.

 Felicitation night

The Old Trinitians Sports Club (OTSC) has organised "Night of Excellence" to felicitate all old Trinitians who have made a significant contribution to sports in Sri Lanka at the highest level in 2001.

The following are to be felicitated this year. Cricket: Kumar Sangakkara and Kaushalya Weeraratne.

Rugby: Haris Omar, Pradeep Bandaranayke, Neranjan Ranasinghe, D. Selvam, Sean Wijesinghe, N. P. Wellalge, of Kandy Sports Club, Kavinda Jayasena, Rajiv Ganapathy, Thisal Jayawardene and Dilshan Ousman of Havelocks Sports Club, Duminda de Silva of CR&FC and Rangika Ranasinghe of Kandy Youth.

Athletics: Mohamed Riyaz. Swimming: Thilanka Samaradivakara.

The event will take place on February 23. The guest of honour will be Muttiah Muralidaran while the chief guest will be chairman of the East West group of companies and chairman of the CWE Nahil Wijesuriya. Wijesuriya is also due to launch the new OTSC logo.

State vehicles run sans emblems

A number of  government vehicles that had gone missing, following the December 5 parliamentary elections are reported to be in use in the hill country with their official emblems erased, The Sunday Leader learns.

People's Alliance (PA) parliamentarians were accused of removing state vehicles for electioneering. It was also brought to the notice of the media that most of the vehicles that were removed had not been returned.

A committee appointed by Prime Minister Ranil Wickremesinhge last week has found that some of these vehicles have been spotted in the Badulla district with their official emblems removed.  The committee headed by Justice Minister W.J.M.Lokubandara comprises Interior Minister John Amaratunga and Parliamentary Affairs Minister A.H.M.Azwer.

The committee has already directed the police to crack down on such vehicles. The committee has also recommended to the police to arrest the drivers first in order to obtain information regarding on the vehicles.

The Sunday Leader was informed that former health minister Nimal Siripala de Silva's supporters had been seen using vehicles belonging to the health ministry during the elections.

Meanwhile, Azwer said that after cracking down on the drivers, secretaries of the respective ministries would be questioned.

He said the vehicles could not have been removed without the knowledge of the ministry secretaries adding it is they who should shoulder the responsibility for the missing vehicles.

The Sunday Leader learns that most of the damaged vehicles that are considered "road unworthy" have been dumped in the premises of the Mahaweli Ministry.

Sources close to the ministry said though the information regarding the missing vehicles are in possession of the ministry secretaries, they were not willing to cooperate with the United National Front (UNF) government that has now planned to crack down on all the former ministers who have misused public resources..

Bishop appeals for land route to Jaffna

Jaffna Bishop Rt. Rev. Dr. Thomas Savundaranayagam has appealed to Defence Minister Tilak Marapane to open the land route to the Jaffna Peninsula, which he says is vital for the peace process.

In a letter addressed to the defence minister the Jaffna bishop has also congratulated the new UNF government for taking positive steps to bring relief to the people of Jaffna.

He has said that the people of the Jaffna Peninsula have been cut off from the mainstream of life in the rest of the island for about 12 years for lack of a land route.

He has also attached copies of his letter to Prime Minister Ranil Wickremesinghe, Minister of Rehabilitation Dr. Jayalath Jayawardene, Lt. Gen. L. Balagalla, Head of delegation ICRC and the Apostolic Nuncio, Colombo.

In his letter the bishop has said that he had been earlier appealing to all the leaders of the government, the military, ICRC, UNHCR and  other NGOs as well  and  the leadership of the LTTE to open up a path and alleviate the sufferings of the people living in the Jaffna Peninsula, but to no avail.

"I have been pressing for this demand by my repeated appeals to the leaders of the former government," he said.

"Now the newly elected government has come forward to initiate a cease-fire and peace negotiations. And we are pleased with many decisions that are being taken to normalise the situation.

"At this moment, it is imperative that a land route for the people living in the Jaffna Peninsula must be opened. As a result of the many appeals made to the LTTE leadership by the people of Jaffna., the LTTE has announced their readiness to open a land route to Jaffna either through A9 road, or, Pooneryn.

"It is now for the government to take firm decision to open a land route to Jaffna. During the recent Jaffna visit Minister of Rehabilitation Dr. Jayalath Jayawardene was made to understand the urgency of opening a land route to the Peninsula. When you are now trying to open the passage to Mankulam and Kilinochchi through the Kandy road, it is also vital to open the land route to the Peninsula.

"It will be the best remedy to the many ills of the civilian population. The military will not be averse to this proposal and they will welcome it. Hence, with the help of the ICRC or UNHCR please respond as early as possible for the timely permission the LTTE leadership has given to open this route for the civilian use.

"The A9 road from Paranthan to Iyakatchchi (Elephant pass) is motorable and the LTTE has cleared all landmines on the road. It will not be difficult to do so also from Mirisuvil to Palai. The rest of the road from Mirisuvil to Jaffna is being already used by the army and the civilian transport buses," the bishop's letter has stated.

Counter, handed over the counter to an insider

A former Director of the Airport and Aviation department has been handed over a counter built at the Katunayake airport, violating all norms and regulations, airport sources have disclosed.

The counter according to the sources has been handed over to Air Wing Travels, of which the owner is Mervyn Fernandopulle who was a director of the aviation department during the former Peoples' Alliance regime.

They pointed out that the counter was built overnight, and was handed over to Fernandopulle without calling for proper tenders and bypassing all normal procedures.

This counter has been given for self drive and rent-a- car services, but sources said that other counters that are already in existence at the airport already provide similar services.

Previously it was said that permits for new counters would not be issued without proper tender procedures.  But questions are raised as to how Fernandopulle managed to obtain a permit to operate a counter.

Sources attached to the airport said when a new counter is built others holding similar counters are summoned for a meeting to get their consent. But this time no such meeting has taken place and the counter had been built without the consent of other counter holders, contravening the normal practice.