6th October  2002, Volume 9, Issue 12

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INTERVIEWS

“Cohabitation with CBK impossible”

Commerce and Consumer Affairs Minister Ravi Karunanayake has introduced a new culture to his ministry. He has directed that daily official duties should commence with the national anthem. He feels this would evoke national feelings among the people and would possibly pave the way for people to be more patriotic towards their motherland. “I have seen this happening in many countries. Why not we too start this and see whether we could unite as Sri Lankans at least in the future,” he told The Sunday Leader in an interview. He further said that cohabitation with President Kumaratunga

is impossible, adding though it could be well worked out with the PA. “This is why we are trying our best to bring the 19th Amendment first and then go on with other changes to the constitution,” he said.

Following are excerpts;

By Wilson Gnanadass

Q: The UNF government has completed nearly nine months in office but no substantial changes have been introduced to bring down the cost of living. How come?

A: I don’t agree with you. We have tried our best to bring down the cost of living. Under my ministry, the prices of consumer goods have been brought down to a great extent and anybody will talk about it. Otherwise, if you look at every activity that contributes to the economy, then I would say the cost is high. For instance, take fuel or electricity. They do not come under my purview. As for rice, milk powder and vegetables, we have been able to bring down prices. It is not correct to say we have not brought the prices down. I think we have made a dramatic change. On the other hand, the CEB incurred a colossal loss under the last regime and the Petroleum Corporation also incurred losses. So, I would say that we may not have reduced the prices to the expectations of the masses, but we have certainly done our best.

When prices go up by one per cent people never forget it, but when prices go down by 25 per cent people will remember it for years, it is a common feature. So I want to make an appeal to the public to be more cooperative. We have already eliminated corruption. May be not fully but we are on the prowl. I ask everyone to appreciate what we have already done.

Q: Why can’t the government utilise the money that was used for war to subsidise the prices of fuel and electricity?

A: I think the word ‘subsidy’ is not an acceptable word in the commercial vocabulary. All countries in the world that have had subsidies have seen their economies crash. These countries have realised that if something is given free, it had to be paid at some point by somebody. But the modern way of thinking is to create competition, which is the key buzzword, and make market equilibrium coming though that competition. We have saved a lot from the war since the ceasefire. But don’t forget that we inherited an economy that had -1. 8 % growth. The total debt commitment is Rs. 384 billion while total revenue in the year 2002 is Rs. 324 billion. This is in addition to the economic mess that we inherited from the PA government.

Q: Some of the members of the UNF, allegedly continue to engage in corruption. But the party hierarchy does not seem to be taking any action against them. Is it due to the fear of losing votes that such errant ministers are not exposed?

A: Since you are not mentioning any names and going on a hypothetical assumption I am unable to answer this question.

Q: I am referring to Ministers Punchinilame, Rohitha Bogollagama and Dr. Jayalath Jayawardena?

A: We don’t want anybody to ruin the image of our party and the prime minister is very concerned about it. The prime minister’s office is certainly looking into the merits of these charges. Although charges are levelled against ministers, we have to go into the merits of these charges. There is no hide and seek business. We will not run with the hare and hunt with the hound.

Q: The government has finally introduced the 19th Amendment. How confident are you that the UNF could muster the support of the opposition to get the required two third majority to make the amendment a reality?

A: The very reason why the 19th Amendment has been introduced in parliament is not because the UNF wanted it. But, there is a collective need to make this amendment law so that we will not see another election in the country until they are due. People are not going to entertain another election in the country at this point.

They have already stomached seven years of hypocrisy. They saw war on one side and corruption on the other. People do not want to face another election because they are already suffering. On this basis, in collaboration with all responsible political parties we  decided that this amendment should be brought in and we are going ahead with it. Our intention is not to let one or two people decide on the future of this country.

Q: If the amendment fails to receive its required two third majority in parliament, what consequences would the UNF government have to face?

A: If the members of parliament vote against this bill, then obviously they are permitting one person to determine when elections should take place. On that particular basis, I think we have to go for polls. But mind you, the UNF says no to elections, not because it is not prepared—  if we have another election we would get more support than what we have already received, but we do not want to hold elections for the sake of the country. We are not scared to face elections, but we are only trying to respect the will of the masses.

On the other hand, I don’t see any reason why the PA members cannot vote for this amendment because President Chandrika Kumaratunga herself has said she is not going to hold elections. We are also asking for that. But we are unable to take the president’s word and keep quiet without doing anything about it. The fact is that we do not believe her and that is why we are bringing this amendment. The reason why we don’t believe her is that from the very beginning she has said one thing and done another thing. She goes to Polonnaruwa and ridicules some of our ministers and comes to Attanagalla and says she was only acting. So, how can we believe her. Even her own party members do not have faith in her.

Q: The PA also says that it would support the complete abolition of the executive presidency and not abolition on a piece meal basis. What harm will there be in abolishing it fully?

A: We have no qualms about abolishing it fully. But at the same time, we are requesting for the post of executive prime minister for the simple reason that he/she would be responsible to parliament and answerable to the people. This person will not enjoy every immunity the present executive is enjoying. The reason why we say no to a complete abolition is that we cannot do every thing before December 5. And also, we are considering the sentiments of the minorities. They say they are satisfied with an executive president or else they are asking for an executive prime minister.

Q: The Sri Lankan parliament, having its foundation on a Westminster system had a mixture of this system and the executive in the late ’70s under a UNP government. And once again, the UNP wants to elect an executive prime minister. Don’t you think it is confusing and contradictory to the Westminster system?

A: Well, in Israel we find a prime minister being elected. In my view this will come to effect with the kind of coalition governments that are formed in many countries. And ours is one such example.

Q: Why is the government planning to withdraw the fertiliser subsidy?

A: Even though the fertiliser subsidy was granted, it was not used by farmers in a proper manner. The subsidy has to a great extent been misused by not only the farmers but the middlemen as well. We are only doing this as a temporary measure and until this is modified to an extent where the real farmers would receive the total benefit out of this facility.

Q: The PA says only the president can dissolve parliament while the UNF government says if the 19th Amendment fails, it would move for dissolution. But, what if the president rejects the government’s move?

A: We will look at it from that point onwards. It is too premature to talk about it now. This is why I have been saying that cohabitation is impossible with a person who does not understand anything. Though the UNF could cohabit with the PA, I don’t think it could do so with the president. Now take for instance President D. B. Wijetunge. He cohabited with the PA very successfully. If cohabitation is implemented for the betterment of the country, then it is worth doing it. But, if cohabitation is agreed upon in order to conceal corruption, then it should be looked at from another point of view.

Q: You are one of the members who from the inception has been saying that cohabitation with President Kumaratunga would not work out. But some members wanted this and promoted the concept of cohabitation. Now do you feel that those members who promoted this concept realise that cohabitation with President Kumaratunga is impossible?

A: All I could say is that some people make things happen, some people see what happens and some people wonder what happens. It is just that the prime minister and we think a little ahead while some others do not. Also, even in the UNP it is only one or two who thought cohabitation would be ideal. They may have said this because they may have had personal interests and may be to get business favours. This is not called cohabitation. We have to cohabit for the sake of the country and not for personal interests. We will not let this happen.

Q: You seem to have  introduced a new culture in your ministry with the national anthem being played before commencing official duties. Do you expect other ministries and public corporations to follow suit?

A: Yes why not? This is to evoke national feelings among people who are Sri Lankans. We have to ensure a sense of nationalism is evoked. This itself would enable to eradicate the mistrust that is there. As a result of doing this, we are able to think as Sri Lankans. If you visit any other country, you find the flag of the country or the emblem of the country everywhere  and also even their anthems being played before the commencement of official duties. I thought why not we too do this, especially with the prime minister’s peace initiatives. Even in a private member’s motion from 1994, I have been saying that parliamentary sessions too should begin with the national anthem.

Q: The Upper Kotmale project has now become a hot issue with CWC Leader and Housing Minister Arumugam Thondaman threatening to continue his protest against it.  Would this lead to any major split within the party?

A: I think this problem could be amicably settled with Minister Thondaman. I for one know that Thondaman is very understanding and extremely cooperative. So I feel this could be ironed out shortly.

The importance of crisis management

"Crisis management is becoming more and more important for businesses around the globe. Primarily driven by a requirement to demonstrate duty of care to employees and members of the public, other drivers include legislation to safeguard shareholders and stakeholders, and guarantees that operational risks which could effect the business have been reviewed and understood," said British Crisis and Security Management Consultant, Mark Harris in an interview with Dinesh Weerakkody

Q: What are the consultancy services provided by Control Risks?

A: Control Risks Group is an international business risk consultancy whose aim is to enable clients to take risks with greater certainty and precision and to solve problems that fall outside the scope of mainstream management resources. Control Risks is active in four main areas:

The first is political risk consulting. Control Risks' political consultants work with corporate strategists and international business development teams to develop country and project risk scenarios and risk mitigation plans. Our in-house analysts produce detailed country reports and Control Risks' online service Country Risk Forecast. CRF provides daily analysis of political and security events worldwide.

The second is confidential investigations. Control Risks' business intelligence consultants will work with mergers and acquisitions teams to carry out detailed due diligence into the personalities, backgrounds and reputations of target companies. Our anti-fraud team will carry out fraud vulnerability studies, investigate fraud and trace and recover assets. Where the problem is intricate, multi-jurisdictional or just sensitive, Control Risks will draw a team of people with different skills and international expertise to help senior management solve it.

Control Risks now runs the largest private forensic laboratory in the UK and provides a range of supporting forensics services: audio/visual, computer, fingerprinting and handwriting. This department also has the extra resources of a specialised IT security and investigations team.

Finally, Control Risks Group's pre-employment screening division supports HR, security and compliance departments in a wide range of industries by confirming the honesty, integrity and financial soundness of prospective employees worldwide.

The third is crisis management and security consultancy. Our consultants develop crisis management structures within large corporations and train key players to respond efficiently to crises ranging from a political meltdown leading to an emergency evacuation, to an unmanaged reputation risk leading to a significant loss of shareholder confidence. At the practical end, Control Risks' security consultants will draft and implement evacuation plans, develop and implement corporate security policies.

Where the threat is acute, Control Risks will provide remote sites with dedicated security managers. CR24, a 24-hour operations centre, provides clients with worldwide security support and advice.

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Control Risks is an independent private company that is majority-owned by its employees. Its head office is in London and it has 16 offices worldwide.

Q: What are the countries you provide these services?

A: We will provide our services to our clients wherever they need them.

Q: Is business espionage and blackmail a big issue in Asia?

A: It is very difficult to quantify the size of the problem as statistics are either not available, or wrongly classified, or only reveal a part of the problem as people do not always report the crime for a number of reasons. However, it is fair to say a number of our clients have reported these two issues to be problems in Asia and two other major issues for companies is counterfeiting and theft of intellectual property.

Q: Have companies world wide become overly cautious about security after the September 11 attacks in the US?

A: There was a major increase in requests for Control Risks Group assistance immediately following September 11. The services requested ranged from information and analysis on possible reactions from the US and their allies, to evacuation planning, crisis management plan reviews, business continuity and disaster recovery planning and training, to close escort teams for visiting high ranking corporate executives.

The demand also varied depending on the overall nationality of a company. The requests for services stabilised within about four months.

Q: How important is crisis management for a business?

A: Crisis management is becoming more and more important for businesses around the globe. Primarily driven by a requirement to demonstrate duty of care to employees and members of the public, other drivers include legislation to safe guard shareholders and stakeholders, and guarantees that operational risks which could effect the business have been reviewed and understood.

Q: What aspects of crisis management do you specialise in?

A: Within the department we address a number of elements of crisis management such as business continuity, disaster recovery, management of acute crises such as kidnap, extortion and product related incidents, crisis communications, reputation and issues management.

Q: How do you ensure that your clients' employees in general become aware of the crisis plans their bosses develop at your workshops and also don't stay on shelves gathering dust?

A: Essentially, you hope to encourage people by showing them case studies applicable to their business and region of operations and ensuring employees are aware of the core values of the company and are aware of the threats to those core values.

In this manner, you should ensure they will notify managers of potential or actual incidents.

Q: Any plans to set up an operation in Sri Lanka?

A: Currently, we do not have plans to set up in Sri Lanka, although we do often send consultants there on tasks for our existing clients.

 

 

 

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