SPOTLIGHT

The Tiger re-emerges  in his lair By Amantha perera in Jaffna   While passengers  line up for security checks in the hall at Sinhala Vidyalaya in Jaffna, on the wall in front a small makeshift stall opens up. The window is barricaded by a wooden panel till the checking commences. Once the rows start moving, the panel is removed and two neat rows of one litre soft drink bottles and other refreshments  make their entry. By the looks of it an enterprising Jaffna soul is cashing in on the increased number of travelers and the relaxed security network.

But such business knack is not visible all over the peninsula. It is as if the populace is enduring yet another discrimination, this time in the name of peace.

The LTTE has been one of the main benefactors of peace. Since it opened up its office in Jaffna after a six year lapse this April, gradually, the LTTE has moved to re-establish its iron claws on the populace.

Prices still remain exorbitant by Colombo standards due to LTTE taxing. Four months back, no one would admit that they were being taxed.

Last week, business enterprises were quite frank about LTTE taxes. Some even gave us details of the tax structure. They know that the LTTE is there for good.

On paper, the LTTE can only undertake its political activities. In reality, Velupillai Prabhakaran is on his way to becoming Jaffna's puppet master, all over again.

"The LTTE has regained whatever power it lost during the war in Jaffna and even more," an air force officer based in Palaly observed.

Whatever investments that have come in to the war ravaged town are once that dive into its existing money flow without adding to it or creating desperately needed employment opportunities.

Most of the Colombo based firms, marketing everything from electrical items to life insurance policies have followed a common path. All have appointed an agent to look after their products and deal with other vagaries that crop up in the market.

Marketing gimmicks

Soon after Janshakthi sponsored cricket star Muttiah Muralitharan's recent visit, products promoted by the  cricketer started appearing on Jaffna shop shelves and on wall posters. Beyond such marketing  gimmicks very little has been done to uplift the economy of the peninsula both by the government and the private sector.

"No one has brought in any new investment  of significance since the guns fell silent," observed Dr. D. Ambalavanar,  a surgeon at the Jaffna Teaching Hospital.

The one major difference from then and now though are the visitors from the south, mostly Sinhalese who come to Jaffna to see what has been barred for almost 20 years. Their presence results in good business at the Jaffna bazaar where prices of goods such  as grapes  and prawns have gone up.

The government for  its part has paid very little attention to building up the economy. "Ministers also join in on the visits and that's about it," according to Dr. Ambalavanar. To make matters worse some ministries have come up with cockeyed policies.

The Ministry of Tourism in collaboration with the Ministry of Reconstruction and Rehabilitation set up a hotel school in Jaffna as part of the 100 day programme. The first batch of 25 students fell to 15 when the first semester ended.

Of the 15 only two have so far secured internship opportunities. The remaining 12 are now languishing at home with the school unable to secure them even an internship. In the meantime  the second batch was enrolled recently.

According to the   principal of the school, A. Kadiragamalingam,  he is the only proper lecturer at the school and if students are to continue with  the second, third and the fourth parts of the course new lecturers would have to  be found. So much so for the fanfare that accompanied the setting up of the school.

If the government attitude is lethargic towards rebuilding of  the economy, other factors have made the situation far worse.

The LTTE's tax system  is  driving prices up of almost everything. The LTTE taxes everything, diesel at Rs. 4 per litre, petrol Rs 5, other goods at 10% and luxury and electrical goods at 15%. Only a few items like baby milk powder and exercise books are exempt.

An owner who brought a Rs. 900,000 bus to Jaffna paid Rs. 200,000 to the LTTE. A company that was planing to set up an electrical appliance shop with an investment  of Rs. 2,000,000 had to add another Rs. 300,000 as taxes.

LTTE taxes

Van operators that take passengers  to Colombo from Jaffna pay Rs. 350 per head of a total price of Rs. 1000.

"We pay the tax and pass on the charge to the buyers," observed P. Parames, the manger at one of Jaffna's  largest wholesalers,  Ambige Kalanchiyam. 

A Muslim pavement hawker related an interesting tale to The Sunday Leader. The first time he brought goods to Jaffna, he under-quoted to the LTTE. He made a thumping profit.

However the  next time he brought stuff, the LTTE was wise to the ploy. LTTE members at Omanthai knew the exact prices and the trader had to leave the goods and a friend at the checkpoint, return to Vavuniya and come back with the Rs. 60,000 tax.

"This time I am finished," he lamented.

The LTTE's tax arm  is reaching into almost every facet of life.  Last week a front organisation sent out letters to premises which rent out rooms requesting owners to attend a meeting. Every one who got the letter knew what to expect at the meeting - more taxes. In the near future the LTTE is likely to begin taxing Jaffna's thriving tuition industry.

Such moves have driven potential investors from Colombo further away. "We have to wait and see how they operate out in the open," said two representatives from an electrical fittings firm, in Jaffna last week to check out the market.

Their fears are not totally unfounded. It is the LTTE that is running the show in Jaffna. The Sunday Leader met  S. M. Zamudeen, a Muslim trader chased  out of Jaffna in 1991 at the LTTE office in Jaffna. He was there to sort out the ownership of his store. In his absence another had taken over the premises and Zamudeen was at the office to get his property back.

"They (the LTTE) said they would settle the issue," he  said waiting in line to meet LTTE's  point man in Jaffna, Ilambalrandi.

It is not only the LTTE factor that is driving business out of Jaffna. The army still has a significant  presence  in the peninsula and has at times been uncompromising. Like when it refused to leave the 60 room Subash Hotel which it has been occupying for quite some time.

The owner got in touch with the army to see if  he could get the family property back, but the answer was a flat no. If the Subash and Gnanam, the  other hotel occupied by the army can be converted back to their old business, they might make a good starting point to the revival of the economy.

Sadly both are within the army's largest camp in Jaffna.

The banks, some of which have been taking the high horse about the presence in Jaffna too do not seem to be fostering homegrown investments. When the president of a Jaffna trade chamber approached a private bank to secure a Rs. 5 million loan, he was asked to put forth security worth Rs. 10 million. With that suggestion died the  investment proposal.

"Who would have such collateral in this city," questioned Dr. Ambalavanar.

And the closure  of the A9 on Sunday results in prices going up on Sundays and coming down on Mondays of such goods like potatoes.

It is not that the peace process has not created any benefits to the people of Jaffna, it has. Just walk into  the bazaar and examples are all over the place.

"I am now making Rs. 250 per day," said A. Koneswaran, who was selling trinkets. Earlier  he survived by doing odd jobs. Around him the bazaar was full of Muslim traders. They have come back after the MoU and are living at the mosque and doing business at the bazaar. Mohamend Reyaz left Colombo and has been in Jaffna for more than three weeks. Even with the LTTE taxes  he is making good money selling toys.

A hand-held game he sells at Rs. 200.  Since he bought it in Colombo at Rs. 125, even with the tax he still makes a profit. " I have made about Rs. 5000 so far," he said.

Likewise there have  been changes for the better in ordinary lives as well. According to  Dr. Ambalavanar, before the MoU, the hospital had to get Defence Ministry clearance to get down even aspirin and had to put up with ad hoc restrictions imposed by authorities who knew next to nothing about medicine.

"There were restrictions on injections used during child birth," he said. Such restrictions are no longer in place. The hospital also had to wait till the ship chartered by the ICRC arrived to get its requirements. With the opening of the A9 drugs are now transported over land.

Rainbow stories

But such rainbow stories are too rare and quite disproportionately low compared to the media hype on the opening up of Jaffna. Some of the money-makers were anyway making money, MoU or otherwise.

Take for instance the Mahalaxmi Group that is managed by Hindu Affairs Minister, T. Maheswaran. How he was making a buck out of the embargo had been documented in The Sunday Leader in the past. Despite not being up to his old tricks, Maheswaran is still a big time player.

He is the main agent for some the airlines that are plying between Colombo and Jaffna and makes a good commission. Mahalaxmi secured the agency for LionAir, the newest operator to start flying, regardless of the fact that it was selling tickets for LionAir's competitor Expo as well.

It is the gap between the lives of the likes of Maheswaran and the ordinary Jaffna man that is slowly making the ground for  swelling frustration. "It will not be so bad that people would take up arms, but there is that feeling that the Jaffnaman is once again being discriminated," noted Dr.  Ambalavanar.

It is the very same frustration that has made some await the establishment of an LTTE dominated interim administration, with hopes that something would get done.

But such an establishment would also scare off investors for a generation.

Jaffna is in a catch 22 situation. Peace has not even begun to deliver the goodies to the victims.

Classic car owners taken for a ride

By Frederica Jansz

Promising to restore vintage cars, a self-proclaimed ‘restorer’ of classic cars, has instead reduced these timless beauties to an empty shell — forcing the proud owners of these cars to tow the vehicles away minus some of their vital body parts and in a sorry condition — fit only to be dumped as scrap metal.

Self-appointed Managing Director, Heritage Cars (Pvt) Ltd., Ravin de Alwis is being accused by numerous members of the Classic Car Owners’ Club of swindling finances and stealing vital parts from vintage cars they own which were given to him for restoration.

General Manager, Mahaweli Reach Hotel Kandy, Mohan Panabokke said he handed over a Mercedes Benz 190 vintage special to de Alwis for restoration.  He says he paid de Alwis an advance of Rs. 100,000 to restore the vehicle and was promised the job would be complete in six months. Two years later, Panabokke said he was forced to tow the car away minus some of its vital body parts and in a decrepit condition from what it was when handed over to de Alwis.

This was after Panabokke asserts he tried over a period of 24 months, on numerous occasions to speak with de Alwis and sort out the issue.  He says de Alwis promised faithfully to complete the job assuring him the project “is on track” but never honoured his commitment by word or deed.

“I not only lost Rs. 100,000 but the car as well — the vehicle, by this time was a shell of its former self,” Panabokke said, adding that when he had to tow the car away, there was no point in him taking it back to Kandy.  “Someone offered me Rs. 30,000 for the vehicle and I was so disgusted by that time with the whole episode I just gave it away for that price,” Panabokke said.

Bitter experiences

Panabokke is not alone in his bitter experience. Bandula Senanayake also suffered a similar fate. Senanayake had handed over a vintage 1947 model Austin Princess to de Alwis for restoration. Paying de Alwis an initial sum of Rs. 25,000 to begin work on the car, Senanayake says de Alwis promised the car would be restored to its original glamour.  It was however not to be.

The car in question belonged to Senanayake’s father, former Speaker and Mayor of Kandy, E. L. Senanayake. It had been gifted to the latter by his father (Bandula Senanayake’s grandfather) in 1954.  Bandula Senanayake asserted the sentimental value alone of the car is priceless.

Having signed a contract with de Alwis to restore the vehicle on a turn-key basis, after a period of two years, Senanayake says he was forced to tow the car away minus its starter motor, two buffers, seats and door panelling among other vital parts that had been removed by de Alwis.

An ex-banker and swimming coach at the Suisse Hotel, Kandy, Ian Weragama is another victim Ravin de Alwis picked.  Weragama went to de Alwis with his vintage Jaguar Mark 7 to be restored.  Weragama paid an advance of Rs. 70,500 to de Alwis, but after three years was forced to remove his car in pieces from de Alwis’ garage at Homagama.

Pushpa Weragama is still furiously angry over the entire incident.  She said they had initially paid de Alwis an advance of Rs. 50,000 to begin work on the car.  They paid another Rs. 20,500 later for tinkering which, “Ravin said needed to be done — however, it was useless as the car was always left outside in sun and rain and was left to ruin,” Mrs. Weragama said. 

After keeping the car for three years, promising over and over again to restore it to its original beauty, Mrs. Weragama said they were compelled to remove the vehicle in pieces minus its starter motor, lights, engine, wiper motor, clutch master pump, two interior lights, petrol tank and clip, outer door handles, wood fittings, cubby door and all the nuts and bolts.

“Ravin had even removed the Jaguar badge from the car,” Mrs. Weragama said, adding, “though he promised in writing to return the badge he never did so to-date.” 

“People like this should be brought to the notice of the authorities and severely dealt with,” Mrs. Weragama maintained, her voice shaking with anger at having been “played out” by de Alwis.

She too claimed that de Alwis had promised to restore the car in six months from the day when it was given, but kept it instead for three years. She said the vehicle was originally handed over to him only to paint the interior and restore the upholstery for a sum of Rs. 150,000 which de Alwis had said was sufficient money to complete the project.

“He kept on smooth talking us in this manner until finally three years later we realised the man is an absolute fraud,” Mrs. Weragama said.

The Jaguar Mark 7 still lies in a pathetic condition in the garage of the Weragama’s at Kandy, unused and unrestored.  “I am so disgusted and disheartened with the entire incident we cannot bring ourselves to give the vehicle to another restorer after this experience,” she said.

Lasantha Sethunge, also a banker, handed over a family heirloom — a 1948 Morris Minor together with Rs. 50,000 to de Alwis to restore the vehicle. Three years down the line the Morris Minor, according to Sethunge has been reduced to a shell of its former self minus the seats and engine. The car to date, is still lying in de Alwis’ garage at Homagama, Sethunge said, adding that de Alwis is promising fervently to complete the project.

No option 

“My mother is furious with him, but we have no option but to wait until he completes the job as the car cannot be removed in the state that it is in,” Sethunge said.

Dr. Vickum Senanayake is de Alwis’s most recent victim.  Dr. Senanayake on April 11, this year, handed over his 1958 model MG ZB Magnette (2 Sri 7701) for restoration.  Unaware at the time that a string of other vintage car lovers had been duped by de Alwis, Dr. Senanayake on April 16, handed over a cash cheque to de Alwis for a sum of Rs. 200,000 as an advance payment for the restoration of the above car.

De Alwis had quoted a total of Rs. 320,000 for the restoration of this car which included attention on the complete body of the car, paint work including comprehensive rust proofing and bare metal re-spray, restoration of all seats, door panels, dash panel covering in wood and to fit the full interior with carpeting as well as new boot floor carpets and all mechanical work.

Three months later the car according to Dr. Senanayake had been reduced to a wreck and on July 31, he finally removed it from de Alwis’ garage at Homagama in pieces. Dr. Senanayake is still fighting to get a balance of Rs. 113,700 back from de Alwis.

On September 4, de Alwis had hand written a letter to Dr. Senanayake promising to return the monies due to him in full by September 30.  However, to date Rs. 113,700 is outstanding, Dr. Senanayake said.

Furious with de Alwis, Dr. Senanayake said he is convinced that de Alwis is a confidence trickster and a fraud. “It is only now that I realise after this incident that the costing Ravin gave me to restore this car was heavily understated which only proves his lack of credibility and apparent deliberate attempts to de-fraud,” Senanayake said.

Senanayake is so demoralised and disillusioned by the entire episode — that the MG ZB Magnette is now lying in a worse condition than when he bought it unused and un-restored at his garage, he said.

He added the restoration of a classic car of vintage value is a life-long project and cannot be compared with  a regular garage and mechanics. He pointed out that monthly accounts must be maintained and produced to the owner to prove how the funds are being disbursed to restore the vehicle in question.

Lured by low price

Dr. Senanayake said de Alwis plays his calling card by quoting rock bottom prices for the restoration of these vintage vehicles and lures prospective clients in this manner.

The HQI, Homagama police, Athula Weerasinghe said the police have received a petition against de Alwis alleging his misdeeds with vintage car owners. “I have heard many complaints against this man from other quarters as well,” Weerasinghe said.

Meanwhile, Proprietor, Heritage Motors (Pvt) Ltd., Michael Mutthumani is an expert in the field of restoring vintage cars.  He said that restoring classic cars is a project similar to building a house “or worse” and it is of paramount importance to be able to work amicably with one’s client.

He also reiterated that it is impossible to work to a fixed budget on such vehicles and if one attempts it, “you will not be able to deliver,” he said. 

“I will not accept any vehicle if a prospective client is to insist on a fixed budget,” he said, explaining that this is due to the nature of such projects.