Spotlight

Business as usual

Chandrika -- Giving Vimukthi  a helping hand	Udaya Nanayakkara -- Quick approval	Anura Bandaranaike -- All in the family
	By Frederica Jansz  What is it about President Chandrika Bandaranaike Kumaratunga that she finds it literally impossible to tell the truth? This month saw the President utter one more diabolical lie. This time she did so in writing, having ordered her office to deny a statement made by  UNF MP, Dr. Rajitha Senaratne that during his tenure as lands minister he allocated two acres of land at Mirissa in the Weligama area in Matara to her son, Vimukthi Kumaratunga.

In a media release on Saturday, August 10th, the President's office denied a news item which had appeared the day before in a Sinhala daily which quoted Dr. Rajitha Senaratne as saying that he has approved two acres of state lands to her son Vimukthi.

The transaction In a letter addressed to Dr. Rajitha Senaratne on August 9th, Secretary to the President, W. J. S. Karunaratne states the President has instructed him to inform Dr. Senaratne that "neither she nor her son has ever obtained state land or any other state property" while Senaratne was the lands minister (See box for contents of denial). True to form, Kumaratunga has warned Senaratne not to insult her son in order to save his skin insinuating that Senaratne is guilty of misdeeds during his tenure as lands minister. The Sunday Leader today places before its readers the documentary evidence which details clearly the transaction involving Vimukthi Kumaratunga and the allocation of two acres of state land at Mirissa so he can build a holiday resort comprising of 20 luxury villas. Not only is Vimukthi involved, but his mother too has attested a letter to the Director Investments, Board of Investments of Sri Lanka informing the BOI that the Kumaratungas have appointed an investment consultancy firm to handle this project on their behalf.

Vimukthi's financial credibility report by the Bank of Ceylon

On July 8, this year, President Chandrika Kumaratunga signing in her capacity as power of attorney for her son Vimukthi, informed the BOI that L. J. Foreign Investment Consultancy Services (Private) Limited has been empowered to act on Vimukthi's behalf to make the BOI application and to represent Vimukthi Kumaratunga in the project to establish a holiday resort having 20 luxury villas at Mirissa. This letter was sent on a letterhead which bore the address, "Presidents House - Janadhipathi Mawatha - Colombo 1." (See box for letter)

L. J. Foreign Investment Consultancy Services (Private) Limited is located on the Mezzanine Floor of the Galadari Hotel. It was incorporated on August 25, 1992. The directors of the company are Don Lalith Milroy Ganlath, Deanna Cynthia Arnolda and Ranjith Janadheera Deegoda.

At the same time, Kumaratunga informed the investment consultancy firm to handle Vimukthi's business deal and accordingly they wrote on July 15 seeking the preliminary approvals.

And within just two weeks, on July 29, 2004, Senior Manager (Investment) BOI, Ms. Y. G. Rajapakse wrote to D. C. Arnolda at L. J. Foreign Investment Services (Pvt) Ltd., giving approval in principle for the project. The letter bears reference number EC/4/7709/04.

The letter refers to the application dated July 15, 2004 submitted to the BOI by the company on behalf of Vimukthi Kumaratunga in respect of a project to set up a holiday resort at Mirissa. Rajapakse has informed the investment company that the Sri Lanka Tourist Board has in principle approved the above project. Rajapakse has asked that details pertaining to the financial credibility of their client Vimukthi Kumaratunga and a feasibility report be submitted. (See box for letter)

Bypassing procedures

It is pertinent at this juncture to raise the issue whether both the BOI and the Tourist Board have bypassed regular procedure and approved this project in principle even before a feasibility report was submitted. Given that the minister in charge of the BOI is none other than the President's brother Anura Bandaranaike and the head of the Sri Lanka Tourist Board is the President's ex brother-in-law and confidant, Udaya Nanayakkara, it also raises the question whether there is a conflict of interest. Afterall, while Senaratne as lands minister gave his approval for the release of the land in violation of the accepted procedure in September 2003, it is only after the UPFA government was elected to office that Kumaratunga set the ball rolling by writing to the BOI on July 8, 2004.

But if that is not bad enough what is worse is the President's outright denial of this "deal." And a "deal" it certainly is. How can she claim to have no knowledge of this transaction when she herself has attested a letter to the BOI on behalf of her son on July 8, this year informing them of a company representation who would handle the "project" on their behalf.

When we spoke with Dr. Rajitha Senaratne and asked why he had allocated two acres at Mirissa to the President's son despite Vimukthi Kumaratunga failing to submit as required a project and financial report, which is a necessity when such applications are made for state owned land he said, "Because it was the President's son I approved the request despite there being no project or financial report."

Prime land

Dr. Senaratne added that during his tenure as lands minister, neither the President nor her son, made any payment for the land.

This transaction began in August last year and The Sunday Leader carried some details of this "deal" early this year.

Writing to the Land Commissioner in August last year, Vimukthi Kumaratunga had the temerity to use the address of President's House in his letter requesting for two acres to be allocated to him with beach frontage for a holiday resort.

Using official stationary and equipment at President's House young Vimukthi had been doing a bit of business no doubt living up to his mother's boast that, "politics is the family business." Given the new evidence, it is indeed hard to believe, the President did not know about the land transaction. That instead, she is lying, and lying through her teeth, given the documentary proof, is a given.

The land, the President's son has set his eye on is crown land at Mirissa - Pem Uyana Estate in the Matara District.

In the letter written by Vimukthi Kumaratunga to the Land Commissioner on August 8, last year, Kumaratunga has stated that he has identified a land suitable for a holiday resort in the Matara District. He states in this letter, he would be "most grateful" if two acres of land is granted to him on a long term basis for a holiday resort.

The full extent of the land in question at Pem Uyana Estate is about 30 acres and partly occupied since 1992 by the allotees under the village expansion scheme. Kumaratunga maintains in his letter that an area of about five acres is still vacant on the allotted land, unoccupied by anyone at present and that he would like to be granted two acres for a holiday resort as a BOI project.

The allocation sought was approved by then Lands Minister, Dr. Rajitha Senaratne on September 23, 2003.

Requesting beach frontage, Vimukthi Kumaratunga has specifically identified that an extent of two acres  be allotted to him from block 'A' depicted in the preliminary plan No. MR 1171 dated April 8, 2001 of the Land Commissioner's Department.

No record

The land in question is prime land at Mirissa boasting one of the most scenic views of Sri Lanka's southern coastline.

Block 'A' according to the preliminary plan of the Land Commissioner's Department has been separated for environmental and other purposes. The plan states specifically that no human habitation must be allowed or buildings erected as it will interfere with the sea area as well as wind direction. But these stopgap measures to protect the environment hardly carry weight with this government - least of all with the President and her son.

On September 3, 2003, Secretary, Divisional Secretariat-Weligama, C. Mudalige wrote to the Chairman, Board of Investment (BOI),  Arjunna Mahendran requesting clarification if the BOI had received a project proposal from Vimukthi Kumaratunga for a holiday resort at Mirissa and if approval had been granted.

The BOI referred Mudalige's letter to its regional office in Galle which in turn requested Mudalige for a reference number since they could not trace any record of an application or proposal made by Vimukthi Kumaratunga.

Wheels in motion

The matter more or less came to a dead end there following the political upheaval in the country initiated by the President on November 4, 2003.

But the issue certainly did not die for young Kumaratunga and no sooner his mother had a firm hold on the administrative structure in the country again, both mother and son set the wheels of this project in motion once more.

Needless to say it was that much easier with uncle Anura in office as Investments Minister under whom the BOI is slotted as well as uncle Udaya under whose purview is the Sri Lanka Tourist Board.

And in making the application for BOI approval, it has been stated in writing the land for the project is private land and the plans submitted are as per Vimukthi's letter, namely Pem Uyana at Mirissa. How this land came to be private land is also a matter that calls for investigation. Unless of course the declaration made in the application that it is private land is false. That would make a bad case worse.

All this while the new United People's Freedom Alliance (UPFA) has been espousing righteous rhetoric with regard to land alienation.

It would do well for the new, Lands Minister, Anura Dissanayake, a self proclaimed patriot and Marxist, to examine this deal and find out if indeed it is in the best interest of Sri Lanka to hand out state lands to the President's son, a lad, who is not more than 23 years old.

Interestingly, according to the response received by the BOI to their request for financial details of the project investment  has been given as a sum of over Rs. 50 million. Now it would be pertinent to find out how Vimukthi Kumaratunga, as yet unemployed to the best of our knowledge, has access to 50 million smackers to invest in a project of this nature.

If on the other hand there are foreign investors both the BOI and the Sri Lanka Tourist Board need to find out who these investors are and how and why they have received a carte blanche blessing from the President no less?

Now given Senaratne's own admission, the use of the President's name carries clout because that is what prompted him to approve the allocation of this land to Vimukthi outside accepted procedure, and the President now has the gumption in writing to deny her son having got Senaratne's approval for the land in question.

Misuse of public property

There are other pertinent issues which also arise from this case apart from a simple case of trying to mislead the public with blanket denials and using the state media for that purpose, once again misuse of public property.

Vimukthi as we said earlier is not gainfully employed and the question arises how he has over Rs. 50 million to invest in this project. Does he have a tax file in Sri lanka or London, where he has accounted for income to invest such large sums of monies?

And mind you, the figure of Rs. 50 million given as the investment is also open for question. How afterall can you build 20 luxury villas for Rs. 50 million. Can you build a luxury villa for Rs. 2.5 million given today's building costs? Is there a conscious decision then to undervalue the investment for tax and accounting purposes?

On the other hand, if the President is giving her son a helping hand, can she account for such a large sum of money on the basis of her assets declaration? Afterall, we are in possession of letters written by Chandrika Kumaratunga in her own handwriting from London not long before her assuming public office claiming the serious financial constraints faced by her.

The President in those letters lament, Vijaya Kumaratunga who was murdered by her new partner in government, the JVP left her only with debts. Kumaratunga says however she prefers to wash someone's floor to earn a living rather than borrow from anyone.

And after assuming public office, Kumaratunga would have had to make do with only her official salary and may even have had to dispose of some personal assets to educate her two children in the UK, given the expenses involved.

Given these statements of the President which no doubt will be reflected in her assets declaration when she first assumed office as Western Province chief minister, the question that arises is how Vimukthi, who is still unemployed is going to raise over Rs. 50 million to fund this project given the BOI's call to establish his financial credibility.

Influence peddling

On the other hand if young Vimukthi having got the approval is to find some foreign investor to do the funding, then does it not tantamount to influence peddling at the highest level? Afterall, if Vimukthi is used only as a front by some foreign investors, then cannot it be said he will be lending his name to the project only because of the influence it carries to get the necessary approvals?

The fact that it is Vimukthi's financial status that is depended on to get approval for this project to build 20 luxury villas at a cost of well over Rs. 50 million is evident from the request made by the BOI for a report on his financial credibility.

And interestingly it is to another state institution the Kumaratungas turned to get that report of credibility for the BOI. That report on Kasun Vimukthi Kumaratunga came from none other than the Bank of Ceylon and the speed at which they were moving is also evident from the date therein - August 2, 2004. That is 72 hours after the BOI letter of approval in principle was received.

That letter of financial credibility for this luxury villa project costing over Rs. 50 million from the Bank of Ceylon (Personal Branch) was nothing earth shattering but simply said - "This is to certify that Mr. Kasun Vimukthi Kumaratunga has operated the above account for the past three years in a satisfactory manner." It was signed by a senior manager and was nothing more than a scrawl.

Select committee

It is pertinent in this context to draw the attention of our readers to the case of the Israeli Prime Minister Ariel Sharon recently for allegedly helping his son promote a similar resort project. He was subject to a thorough criminal investigation on all aspects of that project.

That of course is too much to expect in sunny Sri Lanka notwithstanding the exploits of ASP Srinath Vedisinghe, but would not at least a parliamentary select committee be in order to ascertain the facts of this case?

Given that the JVP has claimed ad nauseam that the UNP ran the economy to the ground and promoted robber barons to invest in the country, it would do well for the true red patriots to investigate how the President's son has access to 50 million rupees to invest in a business venture.

And if the President dares to point an accusing finger at this newspaper that we have dragged her son's name into print - well, too bad Madam! If you want your children's reputations to remain squeaky clean then don't encourage them to blot their copy books by using the state to push business deals through. Politics is the family business indeed!