Million dollar questions for an economically battered nation

Attempts to cover up MiG deal crash lands as damning evidence surfaces

Mangala and Sripathi to take 'additional evidence' to Bribery Commission

Hopes of APRC proposals fall apart as govt. takes an about turn

President says APRC adjourned not suspended. Blames the Leader Group

Namal given headstart. Off to India as fears about Vimukthi reigns

While President Mahinda Rajapakse's All Party Representative Committee (APRC) initiative went into a tailspin last week following the decision to adjourn it indefinitely due to differences of opinion within the ruling coalition, the opposition was getting set for the kill on the corruption charges with the controversial MiG deal taking centre stage.

That the government is caught on the backfoot in relation to the MiG deal, there is no gainsaying with mounting evidence clearly pointing to a dirty deal where millions of dollars have been raked in by Kommis Kakkas , and that too for life-expired aircraft.

When the MiG 27 deal was first highlighted by The Sunday Times, Defence Correspondent Iqbal Athas in December 2006 the government came out all guns blazing, justifying the procurement in the teeth of damning evidence and for a while there was a lull.

Government deal surfaces

But before long, the contract entered into by the Sri Lanka Air Force in what was said to be a government to government deal surfaced with The Sunday Leader, exposing the role played by the 'Designated Party' purportedly based in London. Simply put the 'Middle Man' in the deal was collecting the big bucks for the sale of the outdated MiG 27 aircraft at a cost far above what was paid for the same model in the year 2000.

Ironically, the government ended up agreeing to pay several million dollars more for the very aircraft which were rejected in the year 2000 at a much lower price - and that was only for starters.

What really raised heckles in Ukraine giving the whole deal an international dimension was the exposure in The Sunday Leader three weeks back followed by UNP's report on the same issue, where it was proven with documentary and photographic evidence that the address of the designated party in London through which the financial transaction was concluded was nothing more than a call centre.

This revelation got the Ukranian government activated given the financial and money laundering implications of the deal and it immediately ordered a probe into the whole deal. There was particular concern that the methodology used could have even resulted in a terrorist organisation getting in on the act and purchasing aircraft using such 'designated parties.'

This move by the Ukrainian government to investigate the deal following the unfolding developments was last week highlighted by Sunday Times, Defence Correspondent Iqbal Athas and the government's response was swift. Orders went out for the immediate withdrawal of the security provided for Athas.

Just like in the 'Medhananda Benz' saga, where the businessman abducted was subjected to a murder investigation rather than investigating the abduction allegation, in the case of Athas too, it was a case of punishing the messenger by putting his life at risk with the security being withdrawn.

Eyebrows raised

That knee jerk reaction rather than making a considered response to the allegations only made a bad case worse for the government and word spread fast within the diplomatic community of the government's actions and more than a few eye brows were raised.

And the end result is that shortly, Ukraine's Ambassador in New Delhi, Igor Polikha will fly into Sri Lanka for discussions on the issue with a view to ascertaining whether monies in fact have passed through a 'Designated Party' via London bypassing Ukraine.

The Ukraine government's position simply is that all monies paid for the aircraft should have come to that country without ending up in some tax haven. Ambassador Polikha is presently in Kiev, Ukraine for consultations.

Given these unfolding developments, MPs Mangala Samaraweera and Sripathi Sooriyaarachchi have planned to submit the additional evidence that has surfaced to the Bribery Commission next week and inquire what steps were taken on their complaint made months earlier.

As of now, the Bribery Commission has not so much as recorded a statement from the two MPs on their complaint and this issue too is to be raised in parliament even as the UNP is looking at moving the British legal system on the legality of the money transfer effected through a party purportedly housed in a London office.

Furthermore, the UNP has also taken steps to trace where the monies paid by the government ended with a top private British detective agency hired to follow the paper trail.

Million dollar question

The million dollar question of course is where the payments for the MiG deal ended and how much eventually reached Ukraine of the total sum paid, and that is what the opposition hopes to zero in on and establish the payment of a massive commission for a deal which was projected as a government to government transaction.

Corruption charges apart, the government has also reached a dead end on the All Party Representative Committee initiative of the President with the ruling alliance hopelessly divided on the solution to be forwarded, prompting Rajapakse on Tuesday to call for its indefinite adjournment.

It was the APRC proposals which were expected to be finalised last week that the government touted to the international community as its answer to the ethnic problem but by Tuesday, the President decided to pull the rug under the very process given the deep divisions within the alliance and fearing a JVP backlash.

By Monday, August 13, the APRC had finalised many of the proposals and hoped to keep to a deadline the UNP had set and it is in that positive frame of mind, Chairman Tissa Vitharana convened a meeting to finalise the draft proposals.

The majority in the APRC including the CWC, SLMC, NUA, LSSP, CP, UPF and the UNP had already agreed on Sri Lanka being defined as a 'United State' as opposed to a 'Unitary State' and for the province to be the unit of devolution, with only the JHU, MEP and SLFP of a different mindset.

About turn

However, the previous week, when President Rajapakse met the party leaders supporting the government, following strong representations made by SLMC Leader Rauf Hakeem, the SLFP too had agreed to go along with the majority position only to see an about turn on Tuesday.

Interestingly, while the APRC meeting was in progress on Monday, August 13, the President had telephoned Minister Tissa Vitharana and instructed him to finalise the draft report by Friday, August 17 the latest, which was of course agreed to.

Not long after at about 7 p.m. JHU representative, Udaya Gammanpila received a telephone call from the President, and he excused himself from the meeting and rushed to Temple Trees where the developments at the APRC were discussed. Prior to his departure, Gammanpila wanted it recorded that the JHU was opposed to the proposals in the draft report which was under discussion.

And at the meeting with the President, Gammanpila was to say that the government would be in serious trouble if the report is released reflecting the majority view point since the JVP would use it as a platform to attack the administration since the contents were completely contrary to the Mahinda Chinthana.

Difficult situation

He went on to say the JHU too would be placed in a difficult situation in such an eventuality and it was best to postpone the entire exercise and the President agreed.

Completely oblivious to the change of heart at Temple Trees, the APRC met again on Tuesday at 3.30 p.m. but had to await the arrival of the SLFP and MEP representatives Viswa Warnapala and Nalin De Silva respectively till 5.30 p.m. for want of a quorum, only to be told by them the President wanted the proceedings adjourned indefinitely.

The SLFP-MEP duo said they were instructed by their party leaders to move for the adjournment to consider the proposals that were under deliberation at the APRC. They said the President wanted to discuss the issues involved with the party leaders supporting the government and that the APRC could meet thereafter.

Indefinitely adjourned

Surprised, SLMC representative, Nizam Kariapper said the UNP will now say they were correct in that the alliance partners in government were unable to reach a consensus resulting in the proceedings being indefinitely adjourned, sentiments which were supported by CWC's R. Yogarajan.

Said Yogarajan: "If the President does not want it, what is the big idea of continuing with the deliberations. If the President wants the proceedings adjourned, there is nothing we can do about it since it is his initiative."

On that note the meeting ended and within minutes, phone lines in the diplomatic missions started buzzing with the news taking many diplomats by surprise.

It was the following day, Wednesday, the reality hit home after the story was reported in the media and US Ambassador Robert Blake was to ask Minister Rauf Hakeem whether the proceedings were in fact adjourned and received a reply in the affirmative.

Blake apart, other diplomats too spoke with several government members on the issue and it was UNP defector, Minister Karu Jayasuriya who raised the issue at the cabinet meeting on Wednesday, August 15. Jayasuriya asked the President whether reports of adjourning the proceedings as reported were correct.

Said the President - "We have not suspended the APRC but merely asked for it to be adjourned. I plan to meet the party leaders next week to discuss the issues involved. It has reached a stage where I have to discuss with the party leaders regarding this."

Playing up

Added Rajapakse - "It is the Leader paper that has played up the story. They are writing it for other people's benefit."

And the very day the President was briefing the cabinet, the JVP upped the tempo stating the party would vehemently oppose any move to introduce a federal solution through the APRC, thus placing the President in the horns of a dilemma.

For, if the President was to now go back on the majority draft report he would not only lose the support of the minority parties but have nothing to show the international community by way of a solution either. On the other hand, if he accepts the majority report, it will give the JVP a much needed issue to oppose the government in parliament and place the JHU also in a no-win situation.

In that context the APRC process is good as dead as far as producing a consensus formula and a statement by Minister Tissa Vitharana at the post cabinet press briefing underscored this point.

Asked whether the APRC will serve any purpose if the intention was to dilute the powers already given under the provincial councils, Vitharana said, on the contrary, the intention was to widen the scope of powers to the provinces.

That coming from the Chairman of the APRC will no doubt stir a hornets nest and throw the government into confusion given the positions already articulated by the JVP and JHU.

Vitharana in fact wants to now call the APRC this week and checkmate the JVP and JHU by releasing the majority report forcing thereby the SLFP too to take a stand.

More headaches

There were more headaches for the President last week following the success of the National Council Matara rally which even by police reports was one of the most successful meetings ever held in the district.

And in a bid to counter the success of the rally, Presidential Advisor Basil Rajapakse made his way to Weligama on Monday, August 13 and wanted a mammoth meeting organised for August 17, where he said a crowd of at least 100,000 should be got. He said money was no problem but that the success of the meeting must be guaranteed.

However saner counsel was to prevail with Minister for Special Projects Mahinda Wijesekera stating that getting such a large crowd was not a feasible proposition given the hardships faced by the people and proposed holding a seminar instead for about 2000 people. And so it was. (See Potshots on page 4).

But what really had the President worried was the return of former President Chandrika Kumaratunga to the country and he even asked National Heritage Minister Anura Bandaranaike whether Vimukthi Kumaratunga would be interested in being appointed an SLFP organiser.

What the President had been told by confidants was that if Vimukthi was made a SLFP organiser for Gampaha, Kumaratunga would be quiet, hence the query by Rajapakse.

No idea

Bandaranaike of course shrugged off the inquiry stating he had no idea what political plans Kumaratunga or Vimukthi had since they had not discussed them with him. Such was the fear of Kumaratunga, no sooner news reached she had landed in Sri Lanka, orders went out to airport security to check every movement of hers including the duty free purchases if any and report back. The orders went out from Deputy Aviation Minister Sarath Gunaratne.

And following Kumaratunga around the airport on her arrival was Deputy Chairman, Airport and Aviation Services, Shalitha Wijesundera who made the colossal blunder of asking her whether he cannot bring about a rapprochement with the President.

Losing her cool, Kumaratunga told Wijesundera some home truths about Rajapakse and said he had caused irreparable damage to the country and did not wish to meet him.

The very next day Kumaratunga had a 90 minute discussion on the phone with SLFP (M) Convener Mangala Samaraweera where the unfolding political developments were discussed including the success of the National Council's Jana Rala campaign.

The former President was particularly keen to ascertain details of the Nittambuwa meeting scheduled for August 24 and the future plans the SLFP (M) had and after the discussion the duo agreed to meet within the week.

Adding to the President's concerns on what the former President's next move would be, Kumaratunga proceeded to Nittambuwa on Friday, August 17, where she met several SLFP activists in the area.

Hurried activity

Interestingly, speculation that Vimukthi Kumaratunga might make an entry into politics also saw hurried activity at Temple Trees with plans to give the President's son Namal Rajapakse a head start set in motion.

Towards this end, a meeting was arranged for young Rajapakse to fly to New Delhi and meet India's up and coming politician Rahul Gandhi. The idea was to give Namal a head start over Vimukthi in view of the close relationship the Bandaranaike family had with the Gandhis.

There was a particular urgency to fix the meeting  after it was reported last week Anura Bandaranaike had gone to New Delhi to meet Congress Party Leader Sonia Gandhi.

And Namal's  meeting with Rahul organised by Indian businessman S. Nagaraj who is promoting the Colombo Metro Project took place on Monday, August 13. At hand to receive Namal on arrival in New Delhi was Sri Lanka's Deputy High Commissioner and so hush-hush was the meeting that not even the Indian High Commission in Colombo was kept informed as is the usual protocol.

Be that as it may, the government made a further hash of its international relations by going overboard with UN Under Secretary for Humanitarian Affairs John Holmes and accusing him of being bribed to make critical comments on Sri Lanka's human rights record. And mind you, bribed by the LTTE no less with Holmes called a terrorist to boot.

This tendency of the government to lash out in intemperate language, making wild allegations against anyone who dares to comment on the human rights situation in the country, may attract accolades from a limited domestic audience but does irreparable damage to Sri Lanka's international standing, a fact that is lost on the Rajapakse administration.

Given talking to

Not so, Foreign Minister Rohitha Bogollagama who was given a talking to by the UN,  prompting him to disassociate the government from Fernandopulle's comments.

This Jekyll and Hyde approach of the government was also making it a laughing stock internationally, and the joke may well be on Sri Lanka if current thinking at the highest international levels on the situation in the country comes to pass.

Just as the government shot itself on the foot in the Allan Rock affair, the intemperate comments on Holmes have also reverberated in the corridors of the UN, with Secretary General  Ban Ki Moon coming to the defence of his envoy on Thursday.

It was the UN Spokesperson Michela Montis who gave the official response on Fernandopulle's comments stating, "The Secretary General is aware of the comments made in the media about Holmes and he believes them to be 'unwarranted and unacceptable'. And giving Holmes the stamp of authority, the spokesperson said, the Secretary General fully supports the work of Holmes.

Given the hash the government made of the Holmes visit, it remains to be seen how it will deal with  UN Human Rights Commissioner Louise Arbour who is due the following month. And already the JVP has called on the President to cancel the visit but for the government there is no turning back now and might as well prepare Fernandopulle to loosen his tongue again in advance.