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Controversy
over US$3 billion offer to govt.
Rajitha
gets broker to meet President
US$
3bn offered at 2% interest
Finance
Secretary confirms meeting at TT
Is
Lanka targeted for money laundering?
Controversy
surrounds President Mahinda Rajapakse's decision
to consider a dubious proposal for a US$ 3
billion capital infusion to the country by a
broker from Australia, which could fall into the
category of money laundering under the
Prevention of Money Laundering Act of 2006.
The
President had met
the 'broker' identified as Jacob Cheong
at Temple Trees late June following an
introduction by Constructions Minister Rajitha
Senaratne. Cheong who is of Malaysian descent
has said he represents a company called Haike
Group Limited based in Australia.
Cheong
had told the President at the meeting he could
invest the money at 2 per cent interest, which
is well below the going international borrowing
rates if the necessary logistical arrangements
could be made. The current borrowing rate for
the government is over 6%. Associated with the
President at the discussion were Minister
Senaratne, President's Secretary Lalith
Weeratunga, Treasury Secretary P.B. Jayasundera
and BOI Chairman Dammika Perera.
The
Sunday Leader learns the Treasury Secretary had
been tight lipped at the meeting with the
President directing the BOI Chairman to study
the proposal made by Cheong.
Informed
sources said Cheong had been reluctant to
disclose the sources of his funds but had on
being asked for details said some funds would be
channelled through a Japanese Retirement Fund
with further sums channelled through four other
funds he had not named.
It
is learned he had also proposed financing the
Hambantota Port in exchange for shares with an
assurance the shares will be transferred back to
the government once the monies are repaid. No
details of the brokerage fee was available at
the time of writing.
Finance
Secretary P.B. Jayasundera confirmed the meeting
with Cheong but denied there were plans to
accept the proposals made by the investor.
The
Prevention of Money Laundering Act states inter
alia that any person who receives, possesses,
conceals, disposes of or brings into Sri Lanka,
transfers out of Sri Lanka, or invests in Sri
Lanka, any property which is derived or realised,
directly or indirectly, from any unlawful
activity or from proceeds of any unlawful
activity knowing or having reason to believe
that such property is derived or realised from
any unlawful activity or from the proceeds of
any unlawful activity shall be guilty of an
offence which is punishable with a term of
rigorous imprisonment ranging from five to 20
years.
It
is also an offence to abet the offence of money
laundering.
Controversy
surrounds President Mahinda Rajapakse's decision
to consider a dubious proposal for a US$ 3
billion capital infusion to the country by a
broker from Australia, which could fall into the
category of money laundering under the
Prevention of Money Laundering Act of 2006.
The
President had met
the 'broker' identified as Jacob Cheong
at Temple Trees late June following an
introduction by Constructions Minister Rajitha
Senaratne. Cheong who is of Malaysian descent
has said he represents a company called Haike
Group Limited based in Australia.
Cheong
had told the President at the meeting he could
invest the money at 2 per cent interest, which
is well below the going international borrowing
rates if the necessary logistical arrangements
could be made. The current borrowing rate for
the government is over 6%. Associated with the
President at the discussion were Minister
Senaratne, President's Secretary Lalith
Weeratunga, Treasury Secretary P.B. Jayasundera
and BOI Chairman Dammika Perera.
The
Sunday Leader learns the Treasury Secretary had
been tight lipped at the meeting with the
President directing the BOI Chairman to study
the proposal made by Cheong.
Informed
sources said Cheong had been reluctant to
disclose the sources of his funds but had on
being asked for details said some funds would be
channelled through a Japanese Retirement Fund
with further sums channelled through four other
funds he had not named.
It
is learned he had also proposed financing the
Hambantota Port in exchange for shares with an
assurance the shares will be transferred back to
the government once the monies are repaid. No
details of the brokerage fee was available at
the time of writing.
Finance
Secretary P.B. Jayasundera confirmed the meeting
with Cheong but denied there were plans to
accept the proposals made by the investor.
The
Prevention of Money Laundering Act states inter
alia that any person who receives, possesses,
conceals, disposes of or brings into Sri Lanka,
transfers out of Sri Lanka, or invests in Sri
Lanka, any property which is derived or realised,
directly or indirectly, from any unlawful
activity or from proceeds of any unlawful
activity knowing or having reason to believe
that such property is derived or realised from
any unlawful activity or from the proceeds of
any unlawful activity shall be guilty of an
offence which is punishable with a term of
rigorous imprisonment ranging from five to 20
years.
It
is also an offence to abet the offence of money
laundering.
Seven
soldiers killed in Thoppigala
By
Warren Balthazaar
Seven
military forces personnel including a senior
officer were killed near Thoppigala when
Tigers fired 80 mm mortars at them Friday
morning, the military said.
Military
Spokesperson Brigadier Prasad Samarasinghe said
that the LTTE fired long distance mortars at
soldiers killing seven and wounding five on
Friday (6) north of Warakamulla, south of
Thoppigala.
He
further said that the military at the time was
conducting a de-mining session, clearing out and
defusing mines.
The
military rushed the wounded soldiers to a
military hospital.
Brigadier
Samarasinghe said that this was a deliberate
attack on the military to prevent the de-mining
programme.
Meanwhile
on July 5 morning 10 LTTE cadres and two
soldiers had been killed in areas west of Madhu,
the military said. The confrontation had taken
place when a group of Tigers had tried to
infiltrate the forward defence lines. The Tigers
however said that only one cadre had been
injured and that it was government forces that
had tried to infiltrate.
No
privatisations earmarked says Chairman
PERC
disputes govt.'s reasons for its closure
Chairman
of the Public Enterprise Reform Commission (PERC)
has in writing informed the government that PERC
had not earmarked 198 public institutions to be
privatised as claimed by the state to justify
its closure.
PERC
Chairman, W. A. S. Perera in a letter written to
President's Secretary, Lalith Weeratunga and
Treasury Secretary, P. B. Jayasundera has stated
the institution worked strictly in accordance
with the Mahinda Chinthana and since the
government policy at present was not to
privatise state enterprises, no institution was
earmarked for privatisation.
Perera
has said that PERC is presently focusing on
restructuring 20 public enterprises, which have
become a burden to the Treasury.
"As
recommended by the cabinet sub- committee
chaired by the Prime Minister, cabinet at its
meeting held on 15.11.2006, instructed PERC to
assist in restructuring the above mentioned
enterprises," Perera has stated in his
letter.
He
has further observed that about 60%-70% of this
work has been completed and a progress report
had also been submitted to the Treasury on June
13.
Speaking
of the legal cases involved with past
privatisations, Perera has said that there were
currently 17 cases against the government, which
are consequences of past privatisations.
"In
the event of losing these litigations, the total
loss to the government would be in the range of
Rs. 5 to 6 billion," he has stated in the
letter.
PERC
according to the Chairman is also handling
approximately 25 major issues relating to 15
divested public enterprises and if they were not
resolved, it would end in litigation.
Finally,
Perera in his letter has also highlighted that
the government has saved Rs. 2,280 million in
2006 due to a High Court decision relating to
Pussellawa Plantations Limited. An arbitration
decision relating to Lanka Marine Services
Limited has also saved funds for the government.
Murder
of 17 aid workers
ICJ
calls for probe on missing bullet
By
Amantha Perera
The
International Commission of Jurists (ICJ) last
week called for an investigation into the
missing bullet in the Muttur murder
investigation.
"There
is an urgent need to investigate and clarify if
a 5.56 mm bullet was recovered from the skull of
one of the victims.
"Dr.
(Malcolm) Dodd, an independent, Australian
pathologist who was invited by the government to
observe a re-examination of the bodies in
October 2006, concluded that one 5.56 mm
projectile was removed from the skull of
one of the victims. The Government Analyst was
provided with the ballistics exhibits removed
from the bodies during the re-examination and
prepared his report dated
February 19, 2007 which was submitted to
the Kantale Court on March 7, 2007.
In his report he identifies only 7.62 mm
bullets or parts of bullets," the ICJ said
last week.
A
week earlier it had said that it feared that the
bullet had been switched.
"In
a nutshell it is my view that the Malcolm Dodd
report, coupled with matters to which I drew
attention in my earlier report, give rise to a
serious concern that a 5.56 bullet recovered
from the body of one of the victims on
October 2, 2006 has been removed from the
exhibits and that another bullet of a different
calibre has been substituted. It is known that
5.56 cartridges are used by the Special Task
Force and by some Special Forces within the army
and navy. It is also understood that those who
had official access to the exhibits include:
CID, the JMO and the Government Analyst's
Department," ICJ observer to the
investigation British QC Michael Brinbaum said
in a report.
The
government immediately rejected the charges and
had in fact called on the ICJ to withdraw the
statements. Instead the ICJ has repeated earlier
concerns on the impartiality of the
investigation.
"There
are serious concerns about significant flaws in
the police investigation, reflecting a lack of
impartiality, transparency and effectiveness, as
well as about the ballistics evidence," it
said.
MR
commutes death sentence of spy soldier
President
Mahnida Rajapakse has commuted a death sentence
to life imprisonment handed over to an Army
major by a military Court Martial for spying for
the LTTE, high ranking military officials said.
However,
Defence Spokesperson Brigadier Prasad
Samarasinghe said that he was not aware of the
decision of the Court Martial. "One Court
Martial concluded recently, but we are not aware
of the decision. In any case it has to be
conveyed to the President who is also the
Commander in Chief and he has to authorise
it," he told The Sunday Leader.
Several
military personnel including two majors are
facing court martials for providing information
to the Tigers. One such procedure had concluded
last week and the President's decision is to be
conveyed to the army.
The
major had been charged under five counts
including providing information to the Tigers.
The
death sentence is the first time such a sentence
has been passed on a Sri Lankan military officer
by a military Court Martial since the ethnic war
broke out. (AP)
15
LTTE cadres killed in
Thoppigala
By
Warren Balthazaar
The
military yesterday killed 15 LTTE cadres in
Thoppigala, the military said.
The
terrorists were fleeing in two tractors on
Friday around 5.30 p.m. when they were attacked
by army Commandos.
Seven
military forces personnel including a senior
officer were killed near Thoppigala when
Tigers fired 80 mm mortars at them Friday
morning.
Military
Spokesperson Brigadier Prasad Samarasinghe said
that the LTTE fired long distance mortars at
soldiers killing seven and wounding five on
Friday (6) north of Warakamulla, south of
Thoppigala.
He
further said that the military at the time was
conducting a de-mining session. The military
rushed the wounded soldiers to a military
hospital.
TNA
coaxed to join government
The
Tamil National Alliance (TNA) accused the
government of threatening its members with
difficult consequences if they did not join the
ruling party.
TNA
Batticaloa MP Chandrakanth Chandranehru told The
Sunday Leader that the TNA was being forced to
support the government.
He
however added that none of the TNA MPs would
cross over to the government and support it.
"We will always be in the opposition,"
he said.
Chief
Government Whip Minister Jeyaraj Fernandopulle
last week stated that the Eastern TNA MPs would
have to face difficulties in going to the
government-controlled areas in the east if the
parliamentarians refused to join them. "We
are not working in these areas anyway due to
various threats," Chandranehru said.
He
added that he had written to the President on
these issues "The Presidential Secretariat
had responded to my letter stating that the
President would look into the matter. However,
no action has been taken so far," he added.
He
also stated that the TNA would insult its slain
members if it opted to support the government.
" None of our members will cross over till
our people gain freedom," he said.
Speaking
on the threats the TNA MPs were facing,
Chadranehru said he continued to receive
threats. "The Chairman of Thirukkovil
Pradeshiya Sabha, Thillainathan Uthayakumar, who
was one of my coordinators was killed, as they
could not get at me," he said.
Govt.
silent on SLMM findings
By
Amantha Perera
The
government is yet to reject SLMM findings on the
Muttur aid worker murders in writing, despite
public protestations, the SLMM said.
The
SLMM pinned the blame on the execution like
murders of 17 aid workers attached to the French
charity Action Contre la Faim in Muttur on
August 4, 2006 on government troops.
In
a report titled Assassination of 17 Civilian Aid
Workers in Muttur on
August 4,
and sent to the respective peace
secretariats of the government and the Tigers on
August 29, 2006, the SLMM had said that
government troops were in control of the town on
August 4. The government has steadfastly denied
the charge in public and at meetings with the
SLMM.
"But
we have not received anything in writing,"
SLMM Spokesperson Thoffinur Omarsson said.
"Taking
into consideration the fact that the security
forces had been present in Muttur at the time of
the incident it appears highly unreasonable to
blame other groups for the killing. Provided
that was the case it would in particular be
illogical for the security forces to prevent the
SLMM from entering the area and making proper
inquiries in order to find the
perpetrator," the SLMM said in its report.
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