Issues

British intelligence forced LTTE to release Jeyadevan

By D. B. S. Jeyaraj

The Castro - Shanthan - Seevaratnam axis with backing from Anton Balasingham began a campaign - both overt and covert in......

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British intelligence forced LTTE to release Jeyadevan 

Velupillai Pirapharan and Anton balasingham

By D. B. S. Jeyaraj

The Castro - Shanthan - Seevaratnam axis with backing from Anton Balasingham began a campaign - both overt and covert in nature - aimed at bringing several Tamil administered British institutions under direct LTTE control.

Seevaratnam was to be the 'front person' under whommost of these were 'legally' acquired. Given the fact that the LTTE is banned as a terrorist organisation under British law, the Tigers were bold indeed in embarking on such a course. This brazen cocksureness is due to an impression that there won't be a crackdown on them in Britain as long as the peace process continues.

The mixed and confusing signals emitted by Britain has strengthened this confidence. Britain has refused to admit people like S. P. Tamilselvan or K. V. Balakumaran of the LTTE into the country so far. Attempts by the Tigers to stage their "constitution-making" exercises in Britain have been unsuccessful so far. Yet British officials and diplomats have often visited the Wanni and met Tiger leaders in Kilinochchi. Whatever the motive for this conduct the end result is that the LTTE feels confident that it can go on as usual without fear of repercussions.

Seevaratnam began his "nationalisation" project in London mainly through the Tooting based Sivayogam Trust. The Muthumar- iamman temple is directly under this trust. Authorised by Castro and backed by Shanthan,Seevaratnam began intimidating other Tamil managed projects into accepting his authority. Among these was the well established Tamil school run by Dr. Nithianandan in Wembley. Seevar- atnam's priority target however was the Alperton Siva temple for monetary and personal reasons.

Finding Jeyadevan a tough opponent his enemies changed course. Jeyadevan's enemies succeeded when he left London where he was strong and went into the Wanni where he was weak. The bait was a prospective "Dharshan" with the divine leader and a possible opportunity of being restored to his former position in London Tiger circles. This is how Jeyadevanseems to have got bamboozled!

The sequence of events as related in these columns last week had some discrepancies that need to be corrected. Apparently Jeyadevan and Vivekanandan, the secretary of the temple board had gone to Kilinochchi initially on January 3. They were unable to meet Castro or Tiger Supremo, Pirapaharan on that occasion. The high rankers they met then were LTTE office administrator and Spokesperson, Daya Master and Lawrence Christie (Thilagar) of the TRO. The money taken by them to be given for the Navam Arivukkoodam and tsunami relief projects were handed over formally in two ceremonies while there.

Be present in Wanni

They returned to Colombo on January 5 as prospects of meeting Pirapaharan or Castro seemed remote despite staying in Kilinochchi for two days. On January 6, Perinbam of the LTTE Secretariat in Kilinochchi rang Jeyadevan in Colombo and invited him to come to the Wanni as soon as possible. Meetings with the LTTE hierarchy had been arranged he promised. So Jeyadevan and Vivekanandan changed their plans again and went to Kilinochchi on January 8.

They were housed by the LTTE at the Tiger run guest house 'Pandithar' first. On January 10 they were transferred to another Tiger owned guest house 'Niranjan.' Both had been asked not to go out anywhere as they could be summoned at very short notice to meet the LTTE leaders. Three days passed and still no sign of that much anticipated rendezvous. Finally on January 11 morning, Jeyadevan and Vivekanandan got out of the guest house to walk to the LTTE run communication centre nearby and make some overseas calls to London.

An agitated guest house manager inquired frantically from both "Where are you going? You have been asked not to go out." Jeyadevan said they were going to make telephone calls and will return soon. As they went out they saw the 'manager' calling somebody on the walkie-talkie. As they walked to the communication centre and were about to enter it, two Tigers on a motorcycle came rapidly towards them.Introducing themselves as 'intelligence' they inquired angrily where and why they were going out instead of remaining indoors as instructed. When Jeyadevan explained, they spoke to someone on their walkie-talkie and gave Jeyadevan the go ahead to proceed.

Mysterious reason

The 'intelligence' guys lingered outside while the two London Tamils tried to make their calls. Due to some mysterious reason their calls did not get through. The communication centre people were not bothered. It looked as if their calls had been deliberately blocked. After several unsuccessful attempts they returned to the guest house under Tiger 'intelligence' escort. It was only now that both realised something was amiss and that they were possibly caught in a trap.

Jeyadevan then informed the guest house manager that his return flight to London was booked for January 13 and that they had to return to Colombo without meeting the LTTE high command because time had run out. The manager spoke to someone on the walkie-talkie and assured them, "You will get to see both Castro Anna and the Thesiyathalaiver this evening." In the afternoon a van with tinted glass windows and without number plates called over at Niranjan. Jeyadevan and Vivekanandan got in. The van made its way to an old bungalow in the Puthukudiyiruppu area in Mullaithivu District.

First class accommodation

Nilavan, the LTTE operative who took them to this place informed them pleasantly that Tiger intelligence wanted to screen them before the meeting and asked them to stay in that place. Nilavan also told them cheerfully that they had been given first class accommodation. When intelligence wanted to question people at some length of time they are placed in bunkers or detention camps. "But in your case you all are given first class accommodation."

Four LTTE guards were placed at the house. The house had an old, musty, deserted look. There was no electricity and the house was fully dark at nightfall. Even during daytime the interior was dark. There were no books, radio or newspapers. They had to sleep on mats on the ground. Water had to be drawn from a well. The house was full of insects, ants, spiders, termites, mice, rats and even scorpions. An old woman came three times daily with meals for the detainees and guards.

Jeyadevan and Vivekanandan realised that they were now 'prisoners' but decided to cooperate as much as possible and secure an early release. They were not keen on meeting any Tiger leader now. All they wanted was freedom and a return to jolly old England! The guards spoke to them cordially but firmly. They were not to step outside the compound. If that happened they would be manacled and handcuffed they warned. They also told both that they were very fortunate to be treated like this because they were from London. "Others would have been put in bunkers. At least you can see the sun."

'Inquiry over'

Thamilkumaran from the intelligence came to interrogate them after three days on the 14th. They were told that they could go after they cleared up a few routine matters. Thamilkumaran came daily till up to the 18th. Armed with a tape recorder he would ask pointed questions about life in England and about activities of the Tamils. After the cassette was over in 90 minutes he would depart. On the 18th Thamilkumaran informed them that intelligence headed by Pottu Amman was quite satisfied and that their inquiry was over.

The ordeal was not over. Now Castro's overseas branches department took over. An operative named Nediyavan came with a tape recorder and ask them "Sollungo; Sollungo" (Tell, tell). The prisoners did not know what to say. "Summa sollungo"(Just talk) he would say.This charade went on for two or three days. Thereafter a five page petition signed by former temple trustee board chairman, Sivarajahwas shown to them. They were asked to explain.

Both pointed out during the staggered interrogation that these were false allegations and demanded that Sivarajah be brought down to the Wanni so that they coulddefend themselves. This led to a lull in the interrogation. After some days they were told that Sivarajah was not in a position to travel down to Sri Lanka at that juncture. So both demanded that they be released. There was no response. Even the so called interrogation was sporadic. At best it amounted to about 90 minutes every three days.

Castro's minion Nediyavan also emphasised with regularity that since there was dissatisfactionover Jeyadevan's management of the temple it should be handed over to Seevaratnam's trust. Jeyadevan bristled at this and refused point blank. Vivekanandan however gave in at some point and said he was willing to transfer temple control to Seevaratnam. Much of Sivarajah's petition alleged temple mismanagement and siphoning of funds by Jeyadevan.

One of the allegations was that Jeyadevan had used temple funds to buy a house for his sister in law in Colombo. This was the widow of Jeyadevan's brother killed by the Indian army at Navatkuli in 1987. Jeyadevan explained with documentary proof that this house had been bought by himself and other family members abroad from their private funds.

On February 19, Vivekanandan's wife who had come down from England was brought to see her husband. She also brought a letter from Jeyadevan's wife to her husband. The letter was quite sad reiterating how the children and she were missing him and pleadingwith him to do whatever possible to return home as soon as possible. She stated in the letter that the family wanted his safe return and that money or property was of no consequence in comparison. She also pointed out that Jeyadevan's health was in a fragile state and urged him to return.

No medical treatment

Jeyadevan was suffering from a number of health related problems and had had two surgeries in the past four years. He was also under daily medication. Furthermore regular neuro-analysis was required to aid monitoring of his health. Jeyadevan's daily medication was exhausted after a few weeks of imprisonment. When he gave the LTTE his prescription he was told that the required medicine was not available.

Jeyadevan then wrote a two page report about his medical condition and asked the LTTE para medics who visited him to give it to a proper qualified doctor. This was done and one day Jeyadevan was taken to Dr. Ponnambalam's clinic at Puthukudiyiruppu. He was examined there and given some substitute drugs. It was at this stage that Mrs. Vivekanandan arrived in Puthukudiyiruppu.

She had brought along with her a legal document drafted by a Tamil solicitor's firm in London. This document provided for the transfer of Eelap Patheeswarar temple to Seevaratnam's Sivayogam Trust. Now Castro's sidekick Nediyavan wanted Jeyadevan to affix his signature to the document. One of Vivekanandan's nephews was working in the LTTE medical unit. He too was brought into the scene now. This nephew was to stand guarantee for the uncle's release.

Vivekanandan was asked to take the document back to London and explain matters to the other trustees and importantdevotees of the temple. He was to secure their consent and transfer the temple to Seevaratnam's control. Once that was done Jeyadevan would be released and allowed to return to British "civilization."

After a heated argument with the Tigers, both Vivekanandan and Jeyadevan conferred between them and decided they had no choice in the matter. Reading his wife's pathetic letter had somewhat unnerved Jeyadevan. He to wanted to call it quits and get back to his family. So Jeyadevan affixed his signature and Vivekanandan left the Wanni on February 20.

After Vivekanandan's departure a terrible sense of loneliness and frustration besieged Jeyadevan. In his own way he began defying the LTTE and protesting his illegal imprisonment. Jeyadevan began a protest fast in stages skipping first one meal then two and finally all three. He also stoppedtaking his medication. It appeared that the mental torture had taken its toll and Jeyadevan now had a death wish. He requested his guards to send his body to London for last rites with the well founded doubt that even his last wish would not be honoured.

The Tiger guards did not realise the seriousness of Jeyadevan's protest fast first. When he skipped his meals they simply joked about it and started sharing among themselves the extra meal. None of the LTTE seniors were informed and no one took notice of this defiant protest. Gradually Jeyadevan's health deteriorated and the guards got alarmed. They informed their superiors and finally a Tiger doctor came on March 5 to examine him. On his instructions Jeyadevan was taken to Ponnambalam's clinic on March 6 where two or three "accredited" medicos examined him. They were thoroughly perturbed and told the LTTE men that Jeyadevan should be taken immediately to Colombo. Still nothing happened.

Promises

Meanwhile Vivekanandan left for England. Prior to leaving the Wanni he was told by Castro personally that the temple should be transferred to Seevaratnam. As soon as that was done Jeyadevan would be released. No one should talk about this matter or complain to authorities. If that was done Jeyadevan will not be released. Vivek returned to London with the signed documents.

He met other trustees like Koneswaran and Sounthararajan and informed them of the position.He also consulted important temple well-wishers. Reluctant at first the trustees agreed to give up the temple so that Jeyadevan could return safely to Britain. Almost all the temple trustees were pro-LTTE too. What shocked them was that the Tigers could behave so cruelly to Jeyadevan, a man who devoted himself to the Tamil cause. What rankled further was the demand that the temple be handed over to Seevaratnam, whose track record in financial integrity left much to be desired.

What many people dont realise is that contrary to its projected image of being free of corruption, the LTTE is today riddled with corruption and is quite comfortable in working together with crooks and charlatans. This is most pronounced in the overseas branches. Vivekalso talked to Jeyadevan's wife Manchuladevi on the telephone and told her of the position but assured her that Jeyadevan would be released once the temple was transferred to Seeva. Deeply worried she sent an urgent personal letter to Velupillai Pirapaharan pleading with him to release her husband.

So Seevaratnam was asked to come over. He promptly did so on March 1 with aTamil solicitor accompanying him and walked in with a swagger to the Alperton temple. The trustees placed their signatures and formally handed the temple over. Seevaratnam left with the sneering remark that he would be back tomorrow to take possession. When asked about Jeyadevan he replied non-committally: I dont know. You all inform Castro that you have transferred temple ownership to me and see what happens." Seevaratnam took possession formally on March 2.

'Do not bother us'

Vivekanandan who was also the trustee board secretary telephoned Castro and informed him of the transfer. But Castro shocked him into silence by saying that the inquiry into Jeyadevan's conductwas not over yet. "We have to see whether he is guilty or not. There are so many allegations of financial impropriety and ethical misconduct. If he is found guilty then he will undergo punishment here. Do not bother us with Jeyadevan's matter hereafter, we will take care of it."

The LTTE once again was at its duplicitous worst. Promising Jeyadevan's release, the temple had been taken over but now Castro was reneging on his pledge. Too dazed by this Tiger treachery to even speak the spiritual Vivekanandan put down the telephone.

Another tragedy struck the Jeyadevan family. Worried about the situation Manchuladevi's aged father Ponniah Markandu had gone over to meet Vivekanandan and inquire about the reason for his son-in-law's non-return. Unable to lie or cover up Vivekanandan came out with the whole truth about Jeyadevan's situation. A shocked Markandu broke the news to his daughter. Deeply troubled by the plight of his son-in-law the old man suffered a massive heart attack a few hours later and passed away on March 3.

The LTTE 'Nanthavanam' office in Kilinochchi was informed and entreated to release Jeyadevan to attend the funeral. The Tigers refused to do so. Furthermore the LTTE did not even inform Jeyadevan. It was only after Jeyadevan was released and left the Wanni that he learnt of his father-in-law's death.

British Police

It was at this stage that housewife Manchuladevi plucked up enough courage or worked up ample anger to go to the British Police. Hard as it may be to believe, neither family membersnor friends had gone to the police earlier. This was due to many reasons. Chief among them was the fear of provoking the Tigers into harming Jeyadevan. Besides they had been devout Tiger supporters throughout and one does not complain about ones "gods" to others easily.

Until Vivekanandan returned the actual situation about Jeyadevan was not clearly known. All that the family knew was that he had beengoing to meet the LTTE Leader. The family through several contacts had asked the Wanni Tigers for more information. They were told that he was safe and that he would return soon safely.

With her husband incarcerated and her father dead, Manchuladevi formally lodged a complaint with the British Police on March 4. Jeyadevan and Manchuladevi though living in England for two decades were only permanent residents. They had very recently applied for citizenship. But their three children aged 18 and 14 (twins) were British subjects. So the worried children too formally complained. The police told her to give them five days time.

Members of the family had been disappointed with the British High Commission (BHC) in Colombo. The BHC had been very indifferent to Jeyadevan's plight allegedly taking up the position that he was carrying a Sri Lankan passport. The relatives felt that British diplomats in Colombo who are often visiting the Wanni and trying to curry favour with the LTTE may have been hesitant to ruffle Tiger feelings by raising the Jeyadevan issue with Kilinochchi. When this column contacted the British High Commission in Colombo for further information about Jeyadevan all queries went unanswered. It is learnt however that after his release the High Commission in Colombo had interacted with Jeyadevan.

Pressure group

Jeyadevan's elder brother, Dr. Narendran now in the Middle-East also got into the act and used his considerable influence to get the sibling released. A brother-in-law from North America, Thevathasan also went to Colombo and worked from that end. Through the help of concerned third parties, several Tiger leaders like Tamilselvan, Soosai, Balakumar, Nadesan etc. were contacted. They promised to look into the matter but nothing happened. Castro became inaccessible. Shanthan, Balasingham, Seevaratnam etc. washed their hands off saying it was a matter for Castro to decide.

The bulk of Tamil media in London too refused to publicise the issue. Even the supposedly independent Theepam TV remained silent. Only the Tamil Broadcasting Corporation run by ENDLF stalwart Ramarajan highlighted the issue through several broadcasts. This created a stir among London Tamils.

The family and friends also sought Brent North MP Barry Gardiners help. Gardiner proved a true friend.Gardiner used all his clout to get the authorities working. Gardiner was immensely helpful to Jeyadevan once to get the Balasinghams into Britain. Now he was involved in getting Jeyadevan released from LTTE clutches. Around 15 Labour Party MPs now set up an adhoc support group to secure Jeyadevan's release. The bloc made quiet representations to the Foreign and Home Office. They also conveyed a message to the LTTE in London through an "unofficial channel" that if Jeyadevan was not released, the British MPs will conduct a press conference in parliament and inform the national and international media about the Rajasingham Jeyadevan affair.

Warning

A public petition to the Foreign Office was drafted by a Tamil lawyer on a humanitarian basis and sent with signatures of well-wishers and representatives of human rights organisations. The Norwegian Embassy in London too was pressurised. Ironically many of the Tamils coming to Jeyadevan's aid were those dubbed earlier as traitors by Jeyadevan himself. All the pseudo patriotic Tamils in London were shamefully silent.But it was well known that they were deeply troubled. 'If this could happen to Jeyadevan what chance have we?' was their worry.

With the ruling Labour Party moving in quietly but effectively things began to hum. The Alperton temple itself was housed in a building that was formerly a Labour Party Office. Jeyadevan had personally leased it. Seevaratnam had lost no time in establishing his writ and had repainted the old sign with Sivayogam trust. He had also summarily fired five employees including the Brahmin priests. Now the landlord egged on by some powerful forces went to the 'new' temple owners and warned them that their possession was illegal as the temple could not be sub-leased and that they were trespassing. The sacked employees began resorting to legal action.

Vivekanandan was grilled by a special unit at Scotland Yard for four hours. With a definite case being establishedabout Jeyadevan's imprisonment 'other' British authorities got into the act. On March 8, British intelligence officials invitedBalasingham for a 'tea and biscuits' meeting. It was then suggested to him 'unofficially' that it would be in the best interests of the LTTE and Balasingham himself to ensure the immediate release of Jeyadevan. It was hinted that British 'weather' could turn 'nasty' if Jeyadevan did not return safely.

Bala Annai took the hint. It is presumed that he was on the phone with his beloved 'Thamby' Velupillai Pirapaharan informing him of the situation. Each LTTE sectional or divisional leader is 'god' in the area under purview. But the supreme leader is the all-powerful God. So the LTTE Supremo pulled rank with Castro and ordered him to release Jeyadevan. After 59 days of incarceration Jeyadevan was brought to the 'Nandavanam' office on March 9 and released officially at 2.30 p.m. Nilavan who took him into custody supervised the release. A friend, "Kishore" had come from Colombo to take Jeyadevan home.

Hypocrisy at its worst

The LTTE told Jeyadevan that he was being released because of an appeal made by his wife Manchuladevi to the leader. In an exhibition of crass hypocrisy the Tigers bade a 'tearful' farewell publicly and in voices choked with 'emotion' asked Jeyadevan to visit again with his family. He left the Wanni without meeting Praba or Castro. Jeyadevan returned to Colombo and stayed at an undisclosed location for two days before boarding a plane for Britain on 11th evening. The family was quite nervous as they feared a Tiger squad in Colombo might just 'abduct' him to prevent his talking. He also sought medical treatment and was advised that his situation was quite critical.

When Jeyadevan arrived in London on March 12, there was a crowd of more than 75 people at the airport to welcome him. He is now taking medical treatment and quietly contemplating his future course of action.

This then is the tragic tale of Jeyadevan. He was luckier than most in getting released. Many others are in the realm of the missing still. The Jeyadevan affair has exposed the duplicitous nature of the LTTE in several dimensions. It also throws light on what many Tamil expatriates are undergoing at the hands of the LTTE. Already there is talk in London of another Tiger stalwart in London, Ramachandran alias Ramsar alias Anton Rajah being "held" in the Wanni.

The Jeyadevan affair also illustrates the 'intermestic' state of the LTTE and the relationship between the Wanni and the diaspora. Above all it shows that the so called liberation movement is now akin to the Mafia making 'offers hard to refuse.' This Mafia like control is all the more frightening when one recalls that Mafia origins were in the Sicilian freedom movement.

With the safe release and return of Rajasingham Jeyadevan, a tremendous burden is placed upon him. He has been exposed to the real nature of the LTTE. If he is genuinely concerned about the future of the Tamil people then it is his duty to expose the Tiger terror to the best of his ability.Personally I have heard that he is a courageous, honourable person with a great deal of integrity. Lonely and difficult as it may be, there is only one path to be followed for such persons. I am hopeful that Rajasingham Jeyadevan will - in the words of Spike Lee - do the right thing!

Tsunami housing - mere castles in the air

Tsunami hit houses

By Dilrukshi Handunnetti 

Three months after the tsunami emerges the real devastation - this nation's collective failure to address the multitude of issues that sprang with the catastrophe. Chief among them is the abysmal failure of the government to provide housing for those rendered homeless, this despite ambitious deadlines.

Following the wave attack on December 26, the government undertook the country's largest resettlement initiative coupled with a housing programme to match. Approximately some 400,000 members of the fishing community were scheduled for relocation within six months. And that means, providing them with houses, both temporary and permanent.

Reconstruction

Three months later, the country's post tsunami reconstruction and rehabilitation efforts are in disarray, the unit specially created to streamline relief operations disbanded with feeble excuses being offered for the non-accomplishment of the ambitious target to build 60,000 houses in three months. The housing programme is yet to take off ground with only the private and non-governmental sector work in progress. Instead, the government is still involved in a land identification programme with reconstruction and construction work yet to commence.

The housing concerns of the tsunami affected weave one big sorry tale. Having lost their families, homes and livelihoods, it is the coastal dwelling fishing community that took the worst battering who are identified by the government to become the biggest beneficiaries of the housing initiative.

So far, nothing has really happened. People live either in camps or partially damaged houses. Their fishing gear has been destroyed by the ferocious waves and most of them still have no livelihood. Poorer than before, they cannot afford to attempt rebuilding their devastated homes on their own. And even if they could, authorities stand in the way due to the new 100-meter buffer zone.

Rushika Fernando (33), a fisherman from Koralawella, Moratuwa summing up their collective plight said that "the government does not build and does not allow to build or rebuild."

Eager to return to their homes, after three long months in refugee camps or having occupied damaged buildings, they are no longer willing to wait in hope.

"There is no hope. Our houses will never be built," says Fernando, at the end of his tether. For months, they have waited for their partially damaged homes to be rebuilt and to receive some fishing gear to restart life.

Instead, their houses have been marked for removal to create a 100-meter coastal buffer zone around the island. They have been receiving Rs. 5,000 as a "living allowance" since the tsunami which will not be paid after April. However, none of the fisher folk is willing to rebuild their homes.

"We are to be removed. If we rebuild, we will not receive the Rs. 5,000 which is paid to those living in camps or damaged premises. We cannot effect any reconstruction work because of that," says Tharanga Madhushanka (20), the unemployed son of a fisherman in Beruwala. It is a common story among the thousands of displaced. The fear of being disqualified for the dole and being scheduled for relocation make them not rebuild their own homes, even when they can.

Land selection

Compounding matters, the lands identified in the immediate aftermath of the tsunami have been declared unsuitable and impracticable by the authorities, further delaying the reconstruction programme. A second round of land selection has been just completed, but fisher folk are having massive housing problems as their hope of returning to temporary shelter as soon as possible has been dashed by the lethargic attitude of the authorities.

The massive housing initiative was initially confined to the National Housing Development Authority (NHDA) but with the private sector also offering help, the government recently decided to provide land free for such construction programmes.

Following the permanent displacement of some 250,000 people, sadly it is only the private rebuilding initiatives that are visible.

The houses are not being built for other reasons as well. The red tape is affecting those who are willing to build. Most non governmental organisations, private sector companies and donors have specific building plans. But authorities don't accept them.

Authorities discourage those with independent plans that do not conform to their specifications. "It is necessary to adhere to government specifications spelt out by the NHDA under the UDA instructions. We are concerned about the aspect of town planning, relocation and maintaining the buffer. So they should follow the guidelines," explained Urban Development and Water Supply Minister, Dinesh Gunawardena.

The government also prefers funds to be directed to its own housing programme which donors are not very happy about. All in all, the houses do not get built despite the tsunami homeless being forced to continue living inside uncomfortable tents.

According to government rebuilding plans, some 110,000 houses are to be constructed for the fisher folk including 60,000 walk in flats and 50,000 housing units in cluster settlements.

Compensation

Grappling with the issue of clearing land and building over 100,000 houses, the government is yet to consider those who would voluntarily relocate. What is recommended in such situations is the special long-term loan scheme for rebuilding purposes. Most banks are coming up with their own special loan scheme to help tsunami victims.

The quantum of compensation for the construction of a fully damaged house is Rs.400,000 with no such specific decision being made regarding partially destroyed houses - a category that could be resettled faster.

Despite the devastation suffered, the intended houses however would not have structural designs to weather natural disasters - an aspect some of the foreign donors are worried about, as they prefer to invest in a plan that contains a scientific approach.

It is learned that some 4,000 acres coming under the Land Commission as well as 300 acres coming under the Land Reforms Commission will be alienated for the government housing initiative. If found insufficient, uncultivated land would be acquired by the state to avoid acquisition of private land.

According to Chairman, National Housing Development Authority (NHDA), M. N. Junaid, lands have been already identified in Hambantota, Kalutara and Galle. Land identification is about to conclude in Ampara, Batticaloa and Trincomalee.

According to the government specification, the donors are expected to build each house to the value of Rs.400,000 with basic amenities like water, electricity and sewerage facilities. Each house will have two bedrooms, one sitting room, one dining room, toilet and a kitchen. The extent of the house would be 500 sq feet.

Fisherfolk first

As the majority of the houses damaged by the tsunami disaster belong to the fisher folk, Junaid says priority would be given to rebuild houses for this community.

According to him the donors have already started constructing houses in areas identified by the state especially for the fishermen. As for the north reconstruction, authorities are cautious, as access is somewhat limited with road conditions being bad.

Meanwhile, the government will also vest the originally devastated lands in their legal owners but would offer a different block in an area identified as 'safe.' However, the owners, despite legal ownership cannot erect any structures in the tsunami-ravaged lands. They could be used for cultivation and some other industrial purposes under the supervision of the Coast Conservation Department (CCD) and the Urban Development Authority (UDA).

Land grabbing and the govt.'s silence

Gafoor Building, Fort - US $ 1.6 million, 18 acres at Weligama - US $ 300,000 
and Bandaranaike Walauwwa - US $ 3 million

By Frederica Jansz 

Two British nationals in collaboration with a leading law firm and other locals are running a real estate firm in the country selling Sri Lankan lands at inflated prices to foreign buyers, making huge profits completely tax free, thereby cheating the government of revenue while also breaking immigration laws.

Circumventing and violating Sri Lankan laws both with regard to land and resident permits, this consortium is consciously and deliberately evading government taxes. They are doing so having learnt that bribery and corruption in Sri Lanka opens doors to big bucks with an almost near certainty that the long arm of the law will rarely catch a cunning expat.

British born Giles Scott and Ivan Robinson own and manage a real estate company called LankaRealEstate. Our investigation found that LankaRealEstate does not pay any taxes to the Sri Lankan government despite having huge taxable income in the last two years. A textbook study for officials of the Inland Revenue Department.

Lankarealestate.com (Private) Limited is a private limited liability company incorporated in Sri Lanka on February 26, 2003 bearing Registration Number: N (PVS) 33090 under the Companies Act of 1982 with an authorised capital of Rs. 20,000,000 divided into 2,000,000 shares of Rs. 10 each.

The registered office of the company as per Companies Form 36 dated March 19, 2003 is situated at No. 40 Galle Face Court 2, Colombo 3. The Secretaries to the Company are Secratarius (Private) Limited of 40 Galle Face Court 2, Colombo 3.

Helping friends

The subscribers to the Memorandum and Articles of Association are, Sriyantha Gilbert Senaratne - Attorney-at-Law, 01 (One) Share, 40 Galle Face Court 2, Colombo 3, Ms. Lilamani Seneviratne, Company Secretary, 01 (One) Share, also at 40, Galle Face Court 2, Colombo 3.

The Directors of the Company as per Companies Form 48 filed on April 9, 2003 are, Sriyantha Gilbert Senaratne, 40 Galle Face Court 2, Colombo 3. Ms. Lilamani Seneviratne, 40 Galle Face Court 2, Colombo 3, and Giles Lucian Scott, The Dome, Galle Face Court 2, Colombo 3 appointed with effect from April 8, 2003.

Despite these facts, Giles Scott claims to have no official status within LankaRealEstate claiming he only "helps out as a friend." A claim, we have proof is a complete falsehood.

Scott in fact is still very much in control of the company after being appointed as director in April 2003, for all intents and purposes. The advertisements published in the Serendib in-flight magazine on SriLankan Airlines still carry his personal telephone number for enquiries.

LankaRealEstate also advertises on their website and in their newsletters sent to clients that they donate a percentage of the commissions earned on land sales to the local community. In their website, they state, "We also donate a percentage of profits to community projects within the vicinity of property that is sold by us."

However, The Sunday Leader could not find proof of any such donations in any of the local communities in which LankaRealEstate has sold properties.

Ivan Robinson works out of the Galle office for LankaRealEstate and has been in Sri Lanka for almost a year, acting as its agent, officially designated as executive director. He is here on a holiday visa, and is thus working illegally.

In order to secure resident visas when foreigners buy property in Sri Lanka and wish to reside on it, LankaRealEstate on its web page advises potential clients that, "it is advisable to look at the options of setting up a BOI company with which to buy your property." Under Section 16 of the BOI Act, approval for foreign investors would ensure a one year resident visa.

Clients are directed for legal advice to Sriyantha Senaratne, a director of LankaRealEstate as well as senior partner of the well renowned law firm, Simon & Associates.

In order to own land and houses in Sri Lanka foreigners are compelled by law to pay a 100% transfer tax to the government.

To circumvent this, Senaratne has discovered a loop-hole in the law. The foreign buyer is advised by Senaratne to transfer the full monies for the purchase, but on paper will legally hold only 24% shares of a "BOI approved company" after having nominated "locals" who would be on a "company board" holding the balance 76% shares of the property.

We found that in most sales enacted by LankaRealEstate the 76% shares are held in trust by Secretarius Holdings Pvt Ltd, a sister company of Simon & Associates. Secretarius Holdings is also Company Secretary to LankaRealEstate.

The 76% shares held by Secretarius, are by way of blank, share transfer forms which can be transferred at a future date to the foreign shareholder if, a company lawyer confided, "the current law on stamp duty is amended." A deed of trust is also drawn up by the law firm as the local company holds the majority shares for the foreign owner, in trust. Additionally, is a letter from the major shareholders in Sri Lanka that they are holding the property for the foreign owner as nominees while they lease the land to the foreigner for 99 years. Thus the expatriate owner has dual protection.

A clever but cunning method of circumventing the law while ensuring the government makes no extra cash. Asked if this method could be construed to be illegal as well as being unethical, Sriyantha Senaratne said, "There are no laws in Sri Lanka which state that circumventing laws is illegal. As for being unethical I don't think so - it's merely a case of structuring a business that will avoid certain taxes, which is common in many investment ventures."

Buyer fleeced

Senaratne who confirmed that he functions also as a director for LankaRealEstate when quizzed on the company not having paid any government taxes to date replied "I suppose their accountants will have to go into it and ensure that taxes are indeed paid up." Why this has not been done since LankaRealEstate has been in operation since 2003, Senaratne could not say.

The issue in a nutshell is this. Through an assortment of companies with localised names like Cinnamon Hill Holdings (Private) Limited and Nagenahira Abiyavurthi (Private) Limited (literally translated meaning Eastern Development) Giles Scott and Ivan Robinson have been exploiting unsuspecting owners of property on the south and east coast by buying from them cheap through what seemingly is a local group of buyers.

They in turn sell the property to foreigners through LankaRealEstate, a brokerage company that is foreign managed - thereby appearing to the buyers to be 'best friends' who get the best deal for the client - when in fact the buyer is being fleeced as well.

Lankarealestate.com (Private) Limited is a brokerage company that sells land to foreigners by advertising properties on the world wide web as www.lankarealestate.com

They claim that they are selling lands that belong to locals and that they charge 5% for their services. Since they are foreigners familiar with Sri Lanka they are offering a service to other foreigners who feel comfortable with this arrangement.

If LankaRealEstate is demanding a 5% commission from both the buyer and the seller they should have declared their income from all sales. Which as we now have proof, they have not done.

These companies (Cinnamon Holdings and Nagenahira Abiyavurthi) have Sri Lankan names so that the buyers think they are dealing with local sellers. When the transaction is complete the foreign buyers meet only Sriyantha Senaratne and Viren Perera who the buyers see as Sri Lankans owning the properties that they are buying. Viren Perera is a director of Nagenahira Abiyavurthi, Sriyantha Senaratne while an attorney-at-law and senior partner of Simon & Associates is also a director of LankaRealEstate.

This same group first buys land from locals willing to sell through various companies. They then advertise these properties on the internet at an inflated price. This way they make a killing while the original owner gets but a fraction of the selling price.

A case in point is the sale of 604 perches at Weligama, Galle. Mark Pare and Heather Potter came to Sri Lanka to buy real estate on the beach. They were shown a block of land next to the Weligama Bay Beach Hotel. The lankarealestate.com site offers this land at Rs. 120,000 per perch.

Land in east

Mark Pare and Heather Potter through their company Pandana (Private) Limited gave an advance of Rs. 5 million to LankaRealEstate to buy this property. Then the trouble began. Another broker approached these foreigners and offered the same land for 90,000 a perch with the 5% commission to the broker being paid by the seller.

Lankarealestate.com had asked that the buyer pay the 5% commission as well. The price was also inflated by Rs. 20,000 per perch. The foreign buyers confronted Ivan Robinson with the scam, who was forced to seek Scott's intervention at damage control.

When we spoke with Mark Pare he admitted there had been a problem but that it had now been sorted out.  Giles Scott also admitted that a problem had arisen one which seriously "implicated my integrity as well as that of my associate," but, which he said, "had all been sorted out."

Mark Pare said a 71/2% commission had been paid by him in the transaction.  Two brokers had been involved, one, Scott and the other a local whom Pare and Potter never met.

Another case in point involves the purchase of land at Pottuvil. In November 2003, this consortium, LankaRealEstate, Nagenahira and Cinnamon Hills purchased 83 acres in Pottuvil Point from some Sri Lankan Tamils who were living abroad. This is perhaps one of the most valuable beach properties in Sri Lanka with a wave that is known worldwide by discerning surfers. The land was purchased in the name of Nagenahira Abiyavurthi (Private) Limited. Most of the purchase price was paid overseas and a small sum paid locally to keep stamp fees down.

However, when Viren Perera and Giles Scott, the new owners of this land went to take over the property a few days after Velupillai Pirapaharan's birthday that November, they found that the LTTE had settled 138 Tamil families on their land.

The new owners panicked and approached first the Karuna faction, which released a press statement that they do not as policy confiscate land belonging to foreigners. Karuna agreed to return it to them but with the LTTE taking on Karuna militarily at the same time this undertaking had little effect.

They then made a pilgrimage to Kilinochchi to plead with the LTTE. This consortium includes Thilan Wijesinghe and Nick Clayton. The LTTE wanted a settlement and offered the consortium the same sum declared as the purchase price on local documentation which was a fraction of what had been paid abroad.

LTTE role

When the consortium realised the game was up they began negotiations with the LTTE. The LTTE agreed to give them the beachfront in exchange for the rest of the land that the settlers would remain on. One of the conditions was that the consortium build houses for the settlers as well as a temple. If these conditions were met the LTTE agreed to give the consortium their blessing. The consortium agreed to this deal since even powerful political support from certain key ministers in the then UNP government had failed them.

On December 26, 2004 the tsunami destroyed Pottuvil Point and with it all the huts of the 130 odd families who were squatting on the land owned by the consortium.

Giles Scott, Viren Perera and yet another organisation they own called the East Pole Foundation immediately went into action, launching a joint appeal on a web page called 'LankaRealAid' asking for donations towards the tsunami relief effort. The East Pole Foundation was relying for its credibility on Ulpotha which it claimed it had created.

Such donations they stated must be made to Scott's personal bank account in the UK to: HSBC, Sloane Square Branch, London or to the East Pole Foundation account in Hong Kong. On their internet site, Scott and Viren Perera maintain that LankaRealAid has been established as an informal entity by them, to act as a direct and indirect channel for immediate aid to areas that have been particularly badly affected by the tsunami.

Petition

Interestingly, both Scott and Perera when quizzed by The Sunday Leader asserted that all their tsunami relief efforts were concentrated in Arugam Bay, Panama and Pottuvil North. Viren Perera denied their joint appeal for funds in the wake of the tsunami had been to overcome an agreement the duo had made with the LTTE. What he did say was that they had of their own accord and goodwill decided to build homes for the over 130 families who had been squatting on their newly purchased property.

A rather dubious statement given that Perera and Scott were even preparing to petition courts to try and evict the Tamil families who had squatted on their property.

What plans Perera and Scott now have for this land is not known. According to Perera, "There is no rush now. It can remain as it is even for the next two years."

With the development of tourism on the cards Perera, Scott, Thilan Wijesinghe and Nick Clayton will have no difficulty convincing investors that 83 acres of prime land with beach frontage at Pottuvil Point is a goldmine. This should no doubt prove easy with pliable lawyers and offshore companies.

And it is in this backdrop there is now a petition signed by 50 families in Ulpotha protesting the recent assault of Saman Senanayake, the scion of the original owners of Ulpotha. The petition demands that village and hereditary rights be preserved and official controls brought in. The villagers claim that Viren Perera and Giles Scott have corrupted the entire region with a party lifestyle and designer drugs. Senanayake claims he was beaten up allegedly by employees of Perera and Scott in his father's property at Ulpotha after he was seen showing and explaining an earlier edition of The Sunday Leader that carried a story on Perera and Scott to local villagers.

Giles Scott and Viren Perera jointly control Ulpotha (Private) Limited that owns the tourist facility, Ulpotha - a lifestyle resort - established by the Cultural Survival Trust in 1994 situated at the base of the Galgiriwiya mountain range. The shareholders of the company are Viren Perera (1) share, Carman Perera (1) share and the rest of the shares belong to The East Pole Foundation Limited of Common Chambers Road Town, British Virgin Islands with Giles Scott as its representative on the board. Comprising of 12 acres, Ulpotha, literally translates as water source, referring to the spring which feeds the tank bordering the property.

At a cost of US$ 150 a day the Ulpotha experience of "living the tradition" does not come cheap. Catering exclusively to foreigners, Ulpotha has a unique setting created originally by the Cultural Survival Trust with Ashley de Vos designing the concept behind the visitor accommodation and Channa Daswatte designing the walauwa.

Villager the loser

But even here, an issue has arisen with a Cultural Survival Trustee speaking on condition of anonymity to The Sunday Leader, claiming that both Giles Scott and Viren Perera have played dirty on the original concept and the team that created it. But that is another story.

A singular aspect emerges crystal clear. And that is Scott and Robinson as real estate "agents" do not have any professional ethics. They are not registered locally with anybody and are responsible to nobody but themselves. As a result, they have no code of conduct and make up the rules as they go along amassing wealth that passes freely through a series of bank accounts with no accountability. They are also defrauding the government of legitimate revenue. They are also selling land all over Sri Lanka deciding on the future of some of the countries most valuable natural resources. And most importantly they are not short of cash.

Land grabbing and the so-called claim to cultural preservation that follows it are powerful tools in seducing gullible foreigners who depend on the internet for their information in sponsoring and patronising such ventures. The original owners, the villager, loses all round while remaining the cultural animator for all visitors.

Lalkantha takes Wimal to task

The JVP held its Colombo Bala Mandalaya meeting at the Town Hall Grounds on Wednesday (16). The party hoped to hold the meeting in style with its members packed into the grounds. But JVP leaders were disappointed to find less than half the crowd that would normally attend such a rally present at last week's shindig.

At about 4:45 p.m. Kalutara District MP Piyasiri Wijeynayake was addressing the meeting. JVP Propaganda Secretary Wimal Weerawansa sat in a prominent place on stage. It was around this time that Weerawansa received a phone call on his Rs. 150,000 worth mobile phone. Despite the noise at the meeting, Weerawansa stayed on the phone for four minutes. Then he walked up to JVP Leader Somawansa Amarasinghe and handed him a piece of paper. The note was regarding a column which was to appear in the Lankadeepa the next day. "Tomorrow's Lankadeepa's 'guruda vigrahaya' column is carrying a story called 'kapuwa kapothi.' It is a direct attack on the JVP" the note said. Amarasinghe asked Weerawansa how he had heard about the column even before it had been sent for printing, to which the MP replied that he had a friend called Bandula at Lankadeepa and added -"the article has attacked me very badly."

Weerawansa went on to explain to Amarasinghe and Cultural Affairs Minister Vijitha Herath about the contents of the column. Herath was of the opinion that Amarasinghe should mention the column in his speech. But Weerawansa was against it saying that if this happened, his source would be exposed. "I will attack Upul Joseph Fernando in my speech," Weerawansa suggested instead, referring to the columnist. The MP added that he received all the information about the 'guruda vigrahaya' column in advance and there was all the opportunity to discredit it via state media before it is published. "I get all the information beforehand. We can easily counter-attack it in state newspapers. But no use - Mangala doesn't understand these things," he added.

But the meeting which was supposed to be a big-do turned out to be quite a damper instead. Many of the JVP's hardcore supporters failed to show up and many of those present happened to be invitees. Eventually the crowd numbered about 3000 people and it was one of the most unsuccessful rallies in the party's history. Under the circumstances, the party is now starting to wonder how they are to once more start feeling the pulse of the people.

Saudi Prince gets better of CBK

Media personnel don't just cover meetings and openings the President attends simply because she is the Head of State. One of the main reasons for the media's interest in these events attended by President Kumaratunga is the fact that her words often make for breaking news stories with far-reaching consequences. And so the media feeds off her. No matter where President Kumarat- unga goes, media personnel follow, armed with a well-sharpened pencil or focused camera.

As per the usual last week, during a tour of Tangalle and a foundation stone laying ceremony in the area which was very well attended, yet another Presidential bombshell exploded. President Kumaratunga stood on stage and asserted that despite the numerous pledges from donor countries, Sri Lanka had not seen even five cents of the money so far. The media latched on to the statement and gave it the appropriate exposure. And like leeches, they stuck to the story throughout the week. The story spread quickly, the implications of the statement carrying with it epic consequences, including everyone wondering what was really becoming of tsunami funds being poured into the government coffers.

A few hours after the President made this ground-breaking statement, she hosted Saudi Crown Prince Abdullah Sin Al Saud in Sri Lanka. She must have thought no doubt that the Arabian Prince would survey the tsunami devastation and make a pledge for a donation. So she held extensive discussions with him, during which the crown prince inquired whether President Kumaratunga intended to change the constitution and go for an election. Being a prince, he was not subject to such democratic trappings naturally, but he was curious about how Sri Lanka's political system worked. He asked the President when her term ended. She replied thus:

"It's true that my term is almost at an end. But the people of this country have made a huge appeal that the constitution be changed. They say this presidency is a dictatorship. I am going to attempt to do as the people want."

The Prince ventured that parliament could then do so. But the President said no, her parliament could not. She said that there was a political hurdle and that she planned to stage a constitutional revolution much in the same manner that France did. "I would also like to bring about such a revolution. But it is difficult to do that in our country. I am looking for ways to do this," she said.

The Prince then asked about tsunami relief work. The President responded in detail about how she set up funds and how it is serving the affected communities. Whipping out his chequebook at her words, the Prince signed a cheque for US $ 3 million and handed it over to the President, asking her to deposit it in the fund. After having said that not a cent had been received in donations pledged so far just hours before in Tangalle, President Kumaratunga took the cheque, all the while beaming like a Cheshire cat.

The Prince then made a request of the President. He informed Kumaratunga that he intended to buy 50% of the government's stake in Hilton Colombo and added that he would be grateful if she helped him. Pat came the reply - "of course I will help you!" And so the Prince, having got everything he wanted and quieted his conscience with the US$ 3 million donation, left for Saudi Arabia later that night.  

UPFA's donkey ride

Prime Minister Mahinda Rajapakse who was hospitalised last week returned to Temple Trees on Sunday (13) evening. Since he had been away from his friends and supporters and the political gossip for some time, Rajapakse was eager to catch up. He invited several of his political buddies over for a chat on Sunday night. Everyone's favourite topic of conversation was the hoarding that had appeared near the Flower Road-Dharmapala Road junction referring to the President's statement about the JVP's 'booru' politics. "That was a great hoarding they have put up this time. All about the statement the President made about the JVP's donkey-style politics," they all told the Premier.

The Premier was extremely curious to see what this cut out was about and he wanted to go there immediately to look at the hoarding. "Let's go now," he told his friends, but his security informed him that such a journey could not be undertaken at that hour. Not to be deterred thus, Rajapakse climbed into one of his friends' vehicles and went with him to the junction to see the billboard. He even got out of the vehicle to look more closely at the billboard and critcised the colour schemes used, but said it was an excellent idea. 

PM - a naughty patient

Prime Minister Mahinda Rajapakse was admitted to hospital last week with an acute case of gastritis. The Premier badly needed some rest, but given the volume of visitors he was having every day, he finally requested that he be transferred to the Intensive Care Unit of Nawaloka Hospital. Instead of being taken on a stretcher or wheelchair, the Premier walked to the ICU, causing much amusement for the hospital staff.

But the Prime Minister was giving doctors and medical staff a hard time with his insistence on running off to attend a meeting every so many hours. Dr. Dayasiri Fernando told Rajapakse that what he needed most was rest and if he continued to rush off for meetings he would never get well. But the Premier was adamant and insisted on attending the SLFP convention on Friday (11). Rajapakse tried to explain to the doctor that because of the crisis within the government, it was imperative that he attend the meetings.

"This is a time when everyone is trying stab me in the back. If I don't go and show my face at these meetings, they'll do things behind my back," he told his doctor in an appeal to be allowed to attend the convention.

The Premier received many greetings while in hospital from well-wishers and even one from the President. She had sent him a basket of flowers with a card saying she hoped he would get well soon. Even more surprising was the fact that Minister Anura Bandaranaike had also sent flowers accompanied by a card with the same message. The two bouquets were strategically placed in the Premier's room so that the names of the senders were clearly visible to visitors.

When Rajapakse walked in to the Maharagama SLFP convention, he was greeted with much applause. Hearing the noise, Minister Bandaranaike turned around to see what the uproar was about, thinking the President had walked in. Seeing it was Premier Rajapakse instead, he was not too amused. When the Prime Minister took his seat beside the President, everyone began inquiring after his health. Minister Mangala Samaraweera was also present at the convention.

The President was uncharacteristically on schedule for the convention. After she had taken her seat, she asked Rajapakse how he was feeling and asked him how it was he got gastritis. She then launched into lengthy advice about how to keep gastritis at bay. "It is not good for you to eat oily food. Eat biscuits and things," she advised. President Kumaratunga then asked the Premier whether he had had lunch. "Not yet, I hope to go back and eat. Since you came early today Madam, I can make my speech and go," responded the Premier. But the President did not think it was wise for Rajapakse to starve till after his speech. Summoning one of her security personnel, Kumaratunga gave him some money and asked him to go and buy a few packets of cream crackers. The officer returned a few minutes later with several packets of biscuits. "Don't stay hungry - eat this," the President said, handing the biscuits to Rajapakse. Soon the biscuits did the rounds and everyone, including the Premier was munching one. Even Anura Bandaranaike took two biscuits to nibble on. Munching on her own cream cracker, President Kumaratunga turned to Minister Maithripala Sirisena and said - " Did you hear about how these JVPers came up to me and tried to kill me while I was on my way? They would have advised the students at Jayewardanepura campus to get on the roads as I was passing. The police must have taken care of them pretty well by now."

As Sirisena was getting up to give his speech, an apparent Presidential order decreed that all the media microphones on stage were to be removed. The move caused an uproar at the meeting, with media personnel protesting vehemently, but journalists were barred from covering the rest of the convention nevertheless.

Pettah traders hit by security checks

Huge losses from damaged stock

By Easwaran Rutnam  The Pettah bazaar was full of activity on Tuesday 15 following a closedown the previous day in protest against delays to release supplies at the Colombo port, owing to additional security checks. Angry traders at the bazaar say the loss they incurred by rotting food supplies because of the delay at the port is something the authorities will have to take stock of. The Assistant Secretary, Pettah Traders Association (PTA), G. Illamanathan told The Sunday Leader that the loss incurred amounts to at least Rs. 10 million. A minimum 200 containers with stocks of Bombay Onions and potatoes were held up at the Colombo port since Thursday (10) after the government decided to implement additional security checks on all items coming through the port.

This was a result of fears that illegal items were being concealed in tsunami aid and smuggled in to the island via the Colombo port.

The Sri Lanka Navy was tasked with carrying out the security checks at the port in addition to the checks carried out by the customs officers.

Handful of officers

However the Navy had only a handful of officers carrying out the checks on the imports, which resulted in long delays to release the consignments which included highly perishable food stocks.

Illamanathan said that normally, perishable items are taken to a separate section and checked before being released the same day.

However because of the additional security checks by the navy, the releasing of the perishable stocks were delayed, causing much of it to rot.

"We appealed to the relevant authorities to do away with the additional checks and release the goods immediately. However our appeals went unheeded," Illamanathan said.

He noted that usually one door of the container is kept open to ensure there is ample ventilation for the perishable goods.

However last weekend both doors of the containers were shut as they lay unattended at the Colombo port.

The extreme heat within the containers caused the onions and potatoes to rot.

"If we just sat back and waited, all the stocks would have gone bad, so we decided to launch a protest by closing down all our shops in the bazaar," Illamanathan noted.

The government then decided to relax the additional security checks at the Colombo Port and began releasing the containers.

By 1.30 p.m. on Monday (14), the first of 200 containers held at the port was released, while the remainder was released by that evening and Tuesday morning.

However the loss incurred by the traders became evident when the containers were emptied.

Huge losses

The PTA said that at least 15 to 50 percent of potatoes imported from India were spoilt while at least 80 percent of potatoes from Pakistan were also rotten from the delay at the port.

Illamanathan took us to one of the stores in Pettah where the rotten stocks of potatoes lay, emanating a strong stench.

Employees were seen attempting to pick out unspoilt potatoes from the rotten stocks to be sold at a cheaper rate.

"Normally we expect at least 10 to 15 percent damages to the stocks while transporting. However the delay at the port to release the items more than doubled the damages," Illamanathan explained.

Consumers were forced to bear part of the losses incurred by the traders as onions and potatoes were sold at higher rates on Tuesday.

"The government is not going to pay us for the damages so we had to cover it up with our sales, " a Pettah trader, S. Ragunathan said.

Although importers have shipping insurance for the goods, it does not cover damages caused by delays at the port.

However the goods were sold at the usual rates by Wednesday as business returned to normal.

The PTA says the government should make decisions taking them into consideration, especially when it affects their business. Otherwise, it is the consumer that suffers, they said.

Customs instigated

Navy Spokesman, Commander Jayantha Perera told The Sunday Leader that the customs opposed the additional checks carried out by the navy, and began a protest.

"That is how it all started. This is the first time the customs opposed security checks by the navy. The traders joined the customs protest," Perera noted.

However Media Spokesman, Pettah Traders Association, A. Karim denied that the traders were instigated by customs officers to join the protest.

"We have absolutely no connection with the customs. Some of us have not even seen customs officers, so it is unfair to say they forced us to join the strike. We launched the strike because our goods were perishing in the port," he said.

Meanwhile the navy has now initiated a joint mechanism with the customs at the port to ensure there is no delay in releasing perishable goods.

"We have not stopped our operation at the port. We increased the strength of personnel on duty and relaxed checking on some goods" the Navy Spokesman said.

Perera emphasised that it would be unwise to completely withdraw the navy from carrying out checks on the goods at the port, considering the dangerous items that can slip through.