US$ 500 mn Bond: Largest commercial borrowing at the highest interest ever

By Sonali Samarasinghe

Even as the government gloated over the oversubscription of Sri Lanka's five-year, US$ 500 million bond offering at an astronomical interest rate of 8.25%, almost double the US Treasuries, financial experts scoffed saying the issue was a disaster for the country.

With talk in the market the surprise was that the bond issue should have been oversubscribed seven times over at such steep interest rates. Financial Analyst Dr. Harsha de Silva called this the largest commercial borrowing at the highest interest ever.

Minister of State Revenue and Deputy Finance Minister Ranjith Siyambalapitiya last week for local consumption unashamedly called the offering a victory for the government and the people of Sri Lanka. In a curious contortion of the facts he said the money will be utilised especially for infrastructure development projects such as the Galle Port, Upper Kotmale power generation project and the Norochcholai power plant which are some of the projects. 

For any purpose

However what Siyambalapitiya omitted to say was that a clause in the October 8 offering circular made it possible for the government to use this money for any purpose whatsoever.

Neither say market watchers is this bag of big bucks under stringent conditions and guarantees unlike if the money had been given for specific projects by such bodies as the World Bank or the ADB.

Moreover here the money is being gotten up front unlike a development project by such international bodies where money is released in phases once stages of the work is completed and inspected very much like a housing loan where a bank would release money at foundation stage, at roof level etcetera.

What is also ironic is that while the irresponsible Rajapakse government borrows the money for what many experts say is recurrent expenditure including salaries, the principal US$ 500 million will have to be repaid in one installment in a period of five years most likely by another government. Siyambalapitiya himself told media the government would pay only the interest for five years. The interest will have to be paid once every six months and would come to a massive US$ 200 million.

Expressed protest

The UNP government in waiting has already warned it will not pay back the colossal loan and written strong letters to the underwriters, J. P. Morgan, Barclays Capital and HSBC expressing its protest. 

While the present regime continues to market the international bond issue as a feather in its dismal financial cap the country is set to face its worst years economically as Rajapakse as Minister of Finance manages the national till with little sense and even less responsibility.

The bond issue is to be carried out by the Central Bank on behalf of the government with Siyambalapitiya fantasising the debut sovereign bond issue will serve as a benchmark for other corporate borrowers in Sri Lanka, which have the capability of raising money in international capital markets.

The government also claims the US$ 500 million would stabilise the current rupee fluctuation even as financial experts expressed their gravest reservations.

The government further claims the oversubscription of the sovereign bonds by fund managers and foreign investors is an indication of the investor confidence for Sri Lanka as financiers hold their heads in dismay.

 Over subscribed

Financial sources told The Sunday Leader the oversubscription of the bond to the tune of USD 1.25 billion was nothing given the massive interest offered compared to what other such bond issues even by tiny states have been oversubscribed.

Even the Ghana bond was subscribed by much more than this even though Ghana offered interest of 8.50% over a period of 10 years. Experts say if  Sri Lanka had offered 10 years it would have probably had to pay an interest rate well over 10 percent.

Dr. Harsha de Silva is apprehensive. The real issue he says is what is this money for? It is definitely not for infrastructure as the government said at the beginning.

Originally the government had two lists, one in July and another in October of some 33 infrastructure projects. In the July list presented at the Central Bank the government had listed projects like an expressway to Jaffna, a project in Norochcholai and another project in Puttalam for coal power. Says De Silva, "It was obvious they were one and the same and some of these projects were basically pie in the sky."

Perhaps after some discussion the July list was revised somewhat and on October 8 the government put out a offering circular where they now shift from the infrastructure focus and state instead that the money is for counterpart funds for infrastructure money that the government has already received from development partners.

Make more believable

De Silva opines that by this transformation the intent of the government was to make the list more believable.

However into this circular the government inserted a sentence of immense value to themselves in their bid to spend freely with no regulatory constraints. The clause said that since the government might face budgetary and funding constraints there was no guarantee that this money will actually be spent on these infrastructure projects.

By this sentence the government now cleverly avoided any allegation of gross misrepresentation in the event they used the money for anything other than infrastructure projects say even to pay the salaries of ministerial domestic aides or to fund the massive delegations of hangers on whenever President Rajapakse takes wing overseas.

Dr. Harsha De Silva states, "In my opinion they were not going to use this money for infrastructure."

What is also ironic is that there are two types of projects set out in the lists. One where negotiations have been completed and moneys obtained, and another five or six projects where negotiations are underway.

Indecent urgency

Surely there is no point in borrowing money at a high rate of interest with such indecent urgency for projects that have not even yet been properly or fully negotiated. De Silva states that such inclusions in the list are completely irrational and should not be even considered.

According to De Silva the total cost of the projects as per the list and by his calculation is US$ 3949 million. This is the estimated project cost.

Silva also points out that several anomalies crop up and need to be cleaned up. For instance The Colombo Port expansion project has been estimated at US$ 780 million. But says De Silva, US$ 300 million is from the private sector so the government should not be adding that in the first place as part of its costs and the government should rework it at US$ 480 million.

De Silva explains that of this the government states in the offering circular that US$ 2712 million has been committed by development partners.

Best case scenario

By excluding the projects being negotiated and incomplete one is left with US$ 1237 million to be raised. Says De Silva, "even if we assume five years for completion of a project then you are down to about 250 million a year in counterpart funds that you are looking for. That is the best case scenario."

The issue is also this - the Appropriations Act only authorises expenditures for one year. There are only two more months in the year 2007 and if US$ 250 million is needed for a period of 12 months then less than 50 million is needed for the remaining two months. Pray why then does the government need to borrow US$ 500 million if less than US$ 50 million is all we can spend? Why not have borrowed just US$ 50 million?

In the final analysis at 8.25% interest Sri Lanka is paying double the US Treasuries. This is according to experts four hundred basis points over similar duration US treasuries.

Says De Silva on a pessimistic note, "we have borrowed commercial in the last several years but we have been paying 7% at best and we have never borrowed US$ 500 mn. in one go before."

Korean employment imbroglio

By Nirmala Kannangara

With the government announcing that South Korea has offered job opportunities to Sri Lankans, the Ministry of Foreign Employment Promotion and Welfare called for applications from those between 18 - 39 years with a fair knowledge of Korean language.

Although applications were called for Korean language tests several times since 2004 and physical tests have been conducted, most of the applicants who have got through both the tests claim that none of them received jobs in S. Korea. They claim that they know some youths who have strong political links who have secured jobs in Korea though not having passed any of the tests.

"We can give the names of these youths who have been sent to Korea by the government although they are not proficient in the Korean language and physically not upto the mark either," they alleged.

They further alleged that those who could spend Rs. 6-7 lakhs as bribes too have a chance of securing a Korean job and told The Sunday Leader that the Korean jobs are 'served with different spoons to different people.'

No dubious deals

However Chairman, Foreign Employment Bureau (FEB), Kingsley Ranawaka told The Sunday Leader that there were no dubious deals as claimed by the youths who had failed to get Korean jobs. "Neither the Ministry of Foreign Employment Promotion and Welfare nor the FEB  have any hand in the selection process. We only facilitate but beyond that nothing is done by the FEB," claimed Ranawaka. 

According to Ranawaka the physical and language tests are valid only for two years and if the candidates who have been selected on the results of these two tests do not secure a Korean job within two years their names are deleted from the website. "It is up to the S. Korean Foreign Ministry to take action and not us as claimed by certain groups," added Ranawaka.

All attempts to contact Labour Minister Athauda Seneviratne by The Sunday Leader  for a clarification on this matter ended in failure.   

According to Chairman Kingsley Ranawaka, although the examinations are conducted by the Education Department the entire procedure is handled by South Korean representatives who are in the country.

FEB facilitates

"Although the FEB facilitates the holding of the Korean language tests by the Education Department, it is the Korean Language Foundation representatives in Sri Lanka who handle the entire procedure. They bring the audio cassettes and test papers from Korea and the answer scripts are sent back to Korea for evaluation," said Ranawaka.

According to Ranawaka those who have scored more than 68 marks are eligible for employment and their names are put on the web enabling the Korean Labour Ministry to select the prospective candidates for employment.  "It is the Korean Labour Ministry that selects the candidates from the web. The candidates  whose names were put on the web following their success at the two examinations fault the FEB when they are not selected for jobs by the Korean authorities.

"We do not have any hand in the selection procedure. Once the Korean factory owners (Sajanam's) select Sri Lanka as the country they wish to recruit the labour from, they inform their provincial labour officers and on their request the Korean Labour Ministry selects the prospective candidates from the web," said Ranawaka.

Refutes allegations

Refuting allegations levelled against the FEB and the Ministry of Foreign Employment Promotion and Welfare for having a hand in the selection procedure, Ranawaka told The Sunday Leader that once the names are put on the web the FEB or the Ministry cannot make a correction in the name list.

"If by any chance we have enlisted the name of an applicant who has not scored the required marks at the Korean Language examination we cannot correct it on our own. We can only inform the Korean Foreign Ministry officially and after considering it they may or may not alter the list but it is entirely their prerogative," added Ranawaka.

The minimum requirements for employment in Korea is the  O/L and the candidates must have a good physique. "Earlier we sent those who were selected without any physical tests. But with complaints pouring in with regard to the poor physique of our people, we are now conducting physical tests as well and candidates who qualify must maintain their physique till they are selected, as they have to do heavy work in Korea," Ranawaka said.

Requirements of factory owners

The Chairman further said that although nearly 10,000 names are put on the web every year, not more than 2,000 find employment in Korea in any one year. "That depends on the requirements of that country's factory owners. They recruit labour not only from Sri Lanka but also from 12 other countries.  If the factory owners prefer Sri Lankan labour then the Sri Lankan candidates will have more chances of obtaining employment in that country," he added.

Nishantha Ranaweera, 30, from Matugama who is engaged in a small business and had come to Colombo to pay the exam fees told The Sunday Leader that he was asked to pay Rs.3, 400 for the examination. "Once we pay this amount the FEB conducts Korean language classes for 13 days and then summon us for the Korean language test thereafter and if we are lucky enough we will get a job opportunity in South Korea," Ranaweera said.

Although Ranaweera has collected the required money with the greatest difficulty he knows that the chances are remote and that his hard earned money will be spent without any guarantee.

"The high cost of living has driven us to seek greener pastures in  foreign countries as we cannot survive with what we earn in Sri Lanka. Being the eldest in a family of four children, it is my responsibility to look after my parents and the three younger sisters. Although the Korean job opportunities have been offered since 2004,  up to now I have not come across any one who has obtained employment in South Korea," he said.

 No one got an opportunity

"Many young boys from Matugama applied for the exam and some got through, and their names were put on the website. But none of them got an opportunity to obtain employment in Korea.

"I had to leave home at 3 a.m on Monday in pouring rain to join the queue at the FEB located at Koswatte in  Talangama even without a cup of tea. When I left home my mother gave me a cup of tea and that's all I have had for the day. Although I feel hungry I do not have money even to spend for a cup of tea to quench my thirst," said Ranaweera. 

Such is the demand for the Korean jobs the queue sometimes extends to over a kilometre. Rain or shine the young men and women stand their ground.

Nirosha, 27, from Beliatte and her mother who too were waiting for their turn in heavy rain last week told The Sunday Leader that they had left home the previous night.

"We left home on Sunday night and it was 4 a.m today when we reached Colombo. Nirosha is my second daughter and since she wants to go abroad to earn money for us I have no objection," said Nirosha's mother.

Ray of hope

There was hope in their words and this mother and daughter talked about how they could save money once the daughter got a job in South Korea. "We are coming from a remote area and we do not have any proper income to survive. I sat for the Gramasevaka exam and the results are not out yet. There is no other option but go abroad to earn money for my parents and elder sister who are undergoing severe hardships," claimed Nirosha.

According to Nirosha she had studied the Korean language from a tutor in Beliatte and said that she would not attend the language classes conducted by the FEB as she is not in a position to travel to Colombo often. "The classes would be held for 13 days but how can I attend these classes as travelling to and from Beliatte is not an easy task? For the bus alone I have to spend a lot. That is why I went to a tutor in Beliatte to get the basic knowledge. It is cheaper than attending the classes conducted by the FEB," Nirosha said.

"I was asked to come for a physical fitness test back in 2006 and as I had the required weight and height I was told that the FEB would call me for a language test. Since I did not hear from the FEB I had to come to Colombo several times spending money but to no avail. Whenever I came the officers said  they would inform us when they conduct the exams. But I learnt that  the FEB has conducted many tests after that, but they never informed me," claimed Samantha, another youngster from Beliatte also waiting in the queue.

At great cost

Samantha told The Morning Leader that he lost his temporary job as he took leave often to travel to Colombo to find out whether he had been  selected for the language test. "I was removed from my job as I took leave  often. Although I have passed the fitness test and also have a sound knowledge of the Korean language I am puzzled as to why I was not called for the previous tests. Is there a hidden force behind the Korean jobs?" queried Samantha.

Bandara and Prasad also from Beliatte who were expecting to go to South Korea for a job spoke to The Sunday Leader.

"This is very unfair. We have been taken for a ride by the FEB. When we came to the FEB last week to find out  why we were not called for the language test although many who have not qualified in the fitness tests were given a chance to face the language test; we were informed that it all happened due to a computer error. If there was a computer error then why couldn't they call us again for a test rather than give the opportunity to another batch," alleged Prasad.

Joining his colleague, Bandara told The Sunday Leader that Prasad and he had met the FEB  Chairman on Friday, October 5  to make inquiries about their predicament and the Chairman had told them that he could not do anything as  the FEB had already selected a batch and nearly 2000 have been offered jobs for the year 2007.

"This is absurd. One officer said that we were overlooked because of a computer error, but the Chairman claims that every exam was held  and applicants have been selected. There seems to be something fishy," said Bandara in disgust.

It seems the FEB owes an explanation to the thousands who descend there each morning seeking greener pastures at great cost. Over to you Chairman Ranawaka.

Arumugam Thondaman is a man with undisputed political influence and significance.

He remains a hot topic at all times, either due to his penchant for accepting portfolios unexpectedly or for sudden decisions to occupy opposition benches paving the way for governments to fall. This is a performance Thondaman has mastered well.

Whatever the role he chooses to play in local politics, there is no downplaying his political significance to both the government as well as the opposition. It is a strength Thondaman is quite aware of.

Putting his political clout to good use, Thondaman entered into an agreement with UNP Leader Ranil Wickremesinghe prior to the last presidential election but months later, President Mahinda Rajapakse offered him a front row seat in the government with several portfolios distributed amongst CWC members.

However, this act of Presidential political prudence was at variance with Mahinda Rajapakse' platform rhetoric. During his presidential campaign, he exhausted himself pledging over and over again never to entertain the likes of Thondaman and Hakeem in a government led by him. Upon being elected, reality soon knocked on his door. Rajapakse soon realised that it was far too dangerous to leave both minority party leaders outside and quickly moved to embrace them.

Underestimated

But the political value of Thondaman was something presidential brother Basil Rajapakse underestimated from the very beginning. He was always on a collision course with the minority leaders and more so with Thondaman. Basil resorted to creating conditions that compelled Thondaman to leave the rainbow coalition led by his brother.

He tried to pinch the Thondaman led CWC first by seeking to settle the plantation sector problems. This led to an estrangement intensifying the crisis within. When Thondaman declared that he found it difficult to remain in the government, Basil Rajapakse's reaction was to offer him a blank paper and demand that he submits his resignation immediately. But Thondaman, instead of the offered sheet of paper, sent in his resignation neatly typed on a CWC letterhead and quit the government.

The day Thondaman quit the government, Basil Rajapakse was feeling victorious that he has managed to get the better of a man who keeps Sinhala governments in bondage. When queried by the media, his arrogant reply was, "Thondaman cannot  dictate terms to me. He cannot  play the fool with me. I just taught him a vital lesson in life. We will not give them their portfolios back and won't entertain them in a Rajapakse government anymore."

President Rajapakse who knows better politics than brother Basil sought clarifications on this dispute only to be told that if Thondaman is to be brought back, it should happen at a time when the CWC members were on their knees, not a day before.

Faulty advice

Basil's advice to the President here was to indirectly attack Thondaman and company until they regained their senses and submit to the will of the government.

Meanwhile, Basil Rajapakse instructed his two 'parrots' who now make a habit of playing the role of government mouthpiece, Champika Ranawaka and Udaya Gammanpila to take to task the CWC and Thondaman in public.

Parroting what they were taught, the JHU twosome made lofty claims from public platforms that anybody was free to join the government and to leave the government and that the Rajapakse administration would not go to any party with a begging bowl seeking support.

The strategy continued for a few months but the hope that Thondaman would approach the government on bended knees diminished daily. When Thondaman sent no signal of wanting to return to government office, the President decided to eat humble pie. Rajapakse travelled to the President's House in Nuwara Eliya and telephoned Thondaman one night.  He also instructed the CWC Leader to bring along with him a cook who could turn out delicious dosai.

Thondaman readily met the President along with the cook and indulged in a long discussion. But before the CWC Leader could bid goodnight, the President made a proposal. "It must be truly difficult to be without government power. What I wanted to tell you was to come back and accept a portfolio. The problem is Basil feels strongly about this issue. He wants to teach you a lesson. What you can do is to cancel the agreement with the UNP and enter into a fresh one with us. Then I can restore all the portfolios without any problem," offered the President.

Thonda stands firm

But Thondaman remained firm. He respectfully told the Head of State that he could not take a decision on his own. "I will ask my party and let you know Sir," he said.

To this, the President responded waspishly. "That's not going to work. You are lying. You take all decisions on behalf of your party and we all know that what you say is law. If you want, you can join us on our terms or stay away from the government forever," he said, ending the discussion on a sour note.

Two weeks later, Thondaman informed the President that the CWC was opposed to entering into any such agreement with the government. There was also no indication about accepting a portfolio.

Meanwhile, Basil Rajapakse's firm advice was not to relent and to stick to the decision of keeping Thondaman out of the government until he softened his stance and learned to accept the government position. He believed that his attitude would eventually make Thondaman and company rejoin the government on a subservient note.

But the plan backfired during the Presidential tour of the United States. The Presidential security during this time obtained a secret report which contained some terrible information for a government on wobbly feet.

The report claimed that there was a massive move to defeat the government during the budget. It shed light on some discussions held amongst the UNP, SLMC and the CWC in this regard. Further fuelling government concerns, it revealed that the JVP has already decided to vote against the government during the budget.

Eating humble pie

President Rajapakse was thoroughly disturbed by the report when his officials eventually made representations to him. Rajapakse saw that the writing was on the wall and that there was no way for the government to go through the budget debate unscathed unless someone came to the government's rescue.

From Los Angeles he began firing instructions to Presidential Secretary, Lalith Weeratunga to make all arrangements to have Thondaman and his party men reinstalled in office no sooner he returns. While preparations got underway, the President lamented over the telephone, "This Basil is a real pain. I fall into difficulty because of his foolish decisions. This Thondaman issue was quite unwarranted. Basil only created it. I just went all over the country taking broad swipes at Thondaman and his party. Just look at us. Basil wants Thondaman to come on bended knees but now I have to eat humble pie to keep this government going," he said, commenting further that Basil's many decisions appear to have the reverse effect.

Upon return, the President showed a great desire to ensure Thondaman's welfare. He also demonstrated an incredible streak of friendship towards the CWC Leader. He also intended to offer more portfolios to the CWC than the number they held. But to save face, the President asked Basil to project UPF Leader P. Chandrasekeran as the government's chosen leader for the plantations to force Thondaman's return to government (See Suranimala)

No guarantees

Thondaman meanwhile, continued with his party work with no indication of responding to presidential overtures. However, when the swearing in was over and the President managed to heave a sigh of sheer relief, all he could tell the CWC leadership was, "Now there are no more problems. All settled. Won't you now work with us and join us during elections as well?"

Thodaman stood his ground yet again. "Sir, that of course I can't guarantee just yet. The CWC has convened a special party convention days before the budget. We will decide at that time. I will certainly keep you informed about the party decision," he promised.

While Thondaman was returning to his former office after being sworn in, a Tamil medium journalist fired him a telephone call. "Mr. Minister, now that the problem is over, has Basil fallen or have you fallen? Who is eating humble pie today, Basil or you?"

The Minister was quick to respond. "Those who waited for me to come to them on bended knees had to humbly invite me to accept government office," he said, indicating that the king-maker was still a force to reckon with and that he was a much better player than Basil Rajapakse could ever hope to be.

JVP and the misused remote control

The JVP has a manthram that is oft repeated on election platforms - that is to hand over the remote control of a government they support and in turn, they will keep that government straight and squeaky clean.

The remote control theory has worked ever since they entered parliament and the voters too have faithfully given them the necessary control with the hope that if nothing else, the JVP would ensure good governance and aid the fulfillment of public aspirations. Whatever the JVP's motives in seeking this kind of decisive control may be, the people did so in good faith hoping that the JVP would raise their voice in protest if people's aspirations were not being met, and at a decisive moment, even topple an administration that fails to serve the masses.

But now it appears that the JVP has been pressing the wrong buttons of the remote control, and not in the public interest but in furtherance of personal ambitions of a few.

In 2001, people elected a Ranil Wickremesinghe administration for a period of six years. The JVP used this remote control to topple this duly elected government in just two years in violation of a public mandate to rule for six years.

Next they created a government of which they were an integral part. They held government portfolios and when the first few cracks began to appear, instead of exerting pressure to lead the government on a correction course, the JVP took the easy way out and quit the UPFA alliance heaping blame on the government.

Same mistake

Repeating the mistake of misusing the same remote control, the JVP next supported the presidential candidature of Mahinda Rajapakse and did their best to ensure his victory. The JVP's explanation to the public was that the party would like to hold the reins once more of a president they elect and support. People elected Rajapakse with the hope that his administration would prove beneficial and if the contrary were to occur, the JVP would withdraw their support and bring the administration down - in the public interest.

Second time around too, the JVP resorted to the old excuse - that their decision to support President Rajapakse was wrong and severed links.

Now that Rajapakse has consolidated his position with 17 UNP defectors in government and expelled two PA strongmen, Mangala Samaraweera and Sripathi Sooriyaarachchi, Rajapakse has in many ways exhausted his need for the JVP which elevated him to the position of first citizen.

Karu and the remote

With his entry into the government, leader of the UNP defectors, Minister Karu Jayasuriya too has been eyeing the remote. So do Armugam Thondaman and Rauf Hakeem who support the incumbent government. The JVP too still insists that they hold the remote in their secure hands and therefore, it would be they who decide the fate of the government at a moment chosen by them.

While claiming to be the decisive factor still and able to make or break the government, the JVP in the same breath sympathises with the people who are finding it difficult to survive given the spiraling cost of living. The JVP is also critical of the alleged corruption in the defence establishment and profess that the time is right to topple the government. But they are happy to confine these to statements and not convert them into concrete action.

However the JVP is not having it easy these days. Having helped elect abusive and corrupt governments and supported their survival, the JVP has lost significant support at village level and is certainly feeling the pinch.

Their dilution as a political force was discovered when the party conducted an assessment through the party organisations at grass root level. It is a regular JVP practice to obtain quarterly assessments.

The JVP further realised that more and more party cadres were leaving the JVP owing to their selection and election of wrong governments and being identified with an insensitive President who has driven the country towards despair and that it was costing the JVP politically.

No more support

Following these significant discoveries, the JVP politburo took a decision never again to support a SLFP led government and to never align the party to the UNP under any circumstances.

This decision was immediately conveyed to the grass root level organisations hoping the dilution could be stemmed.

But the latest information received by the JVP denotes that party cadres are clamouring for the immediate toppling of the government. As pressure mounts, the day for the presentation of the Appropriation Bill 2008 is drawing near, which is the most important finance bill of a government.

Meanwhile, there is renewed public hope that some party will take the initiative to topple the government during the budget. Hence, the JVP is now feeling the pressure more than ever.

While the government continues to draw much public ire, many an informal discussion amongst different political party members occurred in the parliament corridors and other neutral places.  Parliamentarians at these little chitchats did agree that the people have decided that it was time to send Mahinda Rajapakse and his government home. Of course they differed about the time frames and what course of action was best to achieve this end.

JVP members claimed that it should happen between April and June 2008 according to their calculation whereas the UNP legislators were of the view that sooner was better, given the enormous burden placed on the public.

June schedule

Deep down, the JVP too agrees that this should be done without further delay but continues to quote a June deadline. Whatever their reasons may be, it is the JVP that has come under the microscopic view of the people today.

At a time when people have lost their Samurdhi entitlements and the fertiliser subsidy in addition to losing jobs with the closure of several garment factories and retrenchment schemes elsewhere, people are now clamoring for a government that could ensure economic stability so that they may not lead a hand to mouth existence as they do today.

During the recent past, the JVP centres have begun to feel the heat in a big way.

This led to some decisive decision making last week. Party Secretary, Tilvin Silva ensured that the bala mandala reports were also brought in for discussion at this meeting.

JVP and the budget

The main purpose of the meeting was to decide the stance to be adopted with regard to the budget of the Western Provincial Council (WPC). The previous party decision was to implement the same decision with regard to the parliamentary budget as well.

The prior decision was to oppose the budget and to vote against the Appropriation Bill when taken up in parliament.

The party's decision-making body had to concede that the public perception was that under no circumstances should the JVP identify itself with the government or vote with the government, with the singular exception of the extension of the state of emergency.

It was then stated that if the JVP votes against the government at the provincial level, the same decision should be executed in parliament this November. The politburo of the JVP then decided there would be no deviation from the previous decision.

Most members who expressed their views claimed that it was a huge embarrassment if the JVP were to side with a government that has ruined the economy and placed enormous burdens on the people.

Worse, the members pointed out that the budget was going to further increase taxes placing a huge burden on the people. Supporting the government at this point would be political hara kiri for a party that is already suffering a serious erosion in public support, members claimed.

Anti government drive

What's more, it was suggested that not only should the JVP vote against the budget but also speak against the proposals and be very critical of the style of governance and the President himself for his economic imprudence. They felt this decision should come into effect immediately so that the people would feel that the JVP still remained receptive to public opinion and were still committed to safeguarding their interests.

The members were quite vocal about the wheeler dealing of the government and particularly the corruption and abuse of power continuously committed by the ministers and the Rajapakse Company.

After a long and arduous discussion, the JVP decided not to announce this decision to the public immediately but to hold their horses until the decisive moment dawned. It was decided that at the proper time, the JVP should announce its stance at a media conference specially summoned for this purpose.

However, while the JVP is now worried about being condemned and criticised for misusing the remote control, at least one JVP frontliner, Party Spokesman Wimal Weerawansa is still said to be dreaming of a portfolio.

Wimal's dreams and contacts

Weerawansa's conduct in the recent past is evidence enough of his great reluctance to take the government to task, despite the party decision being just that - to be critical of the administration.

There are reasons unexplained for Weerawansa's strange behaviour. He leads an organisation known as the National Patriotic Movement (NPM) with a handful of members. The real force behind the PNM is none other than Presidential Advisor and new Parliamentarian, Basil Rajapakse himself and blessed by the other brother, Defence Secretary Gotabaya Rajapakse. In this respect, Weerawansa is headlong in implementing a government contract.

As the JVP could not fulfill this task under its party banner, the convenient way out was the formation of the PNM, a so-called umbrella organisation of a handful.

No surprises

While the JVP is now poised to oppose the budget and vote against the Appropriation Bill, it should not surprise anyone who understands the Weerawansa brand of politics if he were to suddenly emerge through the government entrance to the parliament chamber and occupy a front seat amongst government benches.

Weerawansa is said to be boasting that he has the support of about 10-15 JVP legislators, if it comes to a push. What he indirectly hints at is that the likes of Anura Dissanayake who defend the party will be left with about 20 members.

If Weerawansa develops pangs of guilt about voting against a government which he serves indirectly and under cover, he is most likely to develop some mysterious ailment and seek hospitalisation as politicians often do, when faced with unpalatable realities, some members speculate. The final decision however will be known only come November when all the cards will be on the table.

Yapa cornered in Geneva

The deplorable depths to which the state media has sunk in recent times are no longer a secret. But there are regular dramas enacted by the state media, be it through their print or electronic organs.

Given the government controlled media's sheer lack of respect for truth and objectivity in reporting, there is little wonder as to why people are turning away from the state run media institutions as if touched by a leper. In fact it would not be far from the truth to aver that the day is not too far when the media ministers and their institutions are stoned by an enraged public.

One such incident was recorded when the Inter Parliamentary Union (IPU) sessions got underway in Geneva with Media Minister Anura Priyadarshana Yapa implementing the Goebbels theory to the word. Even Goebbels could not have improved on Yapa's record given the dexterity displayed in concocting stories to bring a particular legislator to disrepute.

Special invitee

While Yapa attended the IPU sessions representing the government, UNP General Secretary Tissa Attanayake and Parliamentarian Chandrani Bandara Jayasinghe were there as UNP delegates. There was also a special invitee of the IPU's human rights arm, Dr. Jayalath Jayawardena who was there to make representations on the human rights record of Sri Lanka.

Jayawardena was an independent member attending the sessions at the IPU's invitation and upon arrival, he quickly moved to lodge a complaint with the IPU's Human Rights Committee. His petition contained the right violations of 20 parliamentarians which spoke for itself.

The MP's independent representations irked the government representatives and presidential advisors as the real state of affairs back at home was being bared before the IPU members.

The result was a vicious personal attack on the UNP legislator a few days later, with the state media going to town in its attempt to label Jayawardena a traitor liaising with LTTE leaders in Geneva.

The horrendous government concoction was that Jayalath Jayawardena was staying with a reputed LTTE leader while in Geneva. What's more, Jayawardena's alleged associate was given a name -Geneva Prabha, a name resonating with that of the LTTE leader.

Geneva abode

The purported 'news stories' alleged that Jayawardena has held a series of secret talks with the said LTTE leader.

Meanwhile, one of the new local FM channels, Neth with coverage in certain European capitals wanted to obtain an interview from Dr. Jayawardena. The MP invited the channel representatives to visit him at the house where he had taken temporary residence. The venue was the home of a well-known Sri Lankan named Jeevaka Gunathileke.

While there was a raging dispute about Jayawardena's Geneva abode, it was from Gunathileke's house that the UNP legislator gave the interview to Neth FM.

The journalists who arrived there wanted to obtain an interview from Minister Yapa as well. But the Minister and the two UNP representatives were staying at a hotel, and to accommodate the Neth team, Minister Yapa decided to travel up to where Dr. Jayawardena was staying, and this was Jeevaka Gunathileke's residence.

The UNP legislator by then had come to know that the state media had begun its customary malicious campaign against him. Seeing Yapa, Dr. Jayawardena loudly demanded from the Minister, "How are you Anura? Here I am in Geneva taking up residence with Geneva Prabha. In that case, you also must be in Geneva's Prabha's house now.  Will that also get aired by ITN and written about in Dinamina?" he queried.

"Clueless"

The Minister was taken back, having not thought that Jayawardena would take him to task. His instant response was to disclaim any responsibility and brazenly declare that he was clueless about what the MP was talking about.

This activated Jayawardena more as he scoffed that such were the times that the Media Minister was claiming not to know about the news carried in the state media. "This is strange. Are you not the Media Minister? Who provides information about who does what here to the state media if not you?" he demanded.

The angry MP them told the Minister at least if he was passing information to Colombo, he should provide accurate news without misleading them. "Now we are in the same place. If I am at Geneva Prabha's place, so are you. Isn't that news?"

At this point, Jayawardena introduced a visitor to Gunathileke's home, named Chandran, the man who has been dubbed as Geneva Praba by the state media. This was a stinging slap on the ministerial cheek.

Chandran's presence was not something the Minister had bargained for. Seizing the opportunity, Jayawardena told Anura Yapa, "Here is the Geneva Prabha your institutions are crowing about. Don't you know him? Have you forgotten that it was Chandran who gave you a traveling bag when one of yours broke last year? Didn't you dine at his place? Not just you, even Maithripala Sirisena came over for a meal to his place. Are you calling me a traitor and one linked to the LTTE just because I met him while here?" he demanded.

Silent

A nonplussed Minister maintained stoic silence while Jayawardena demanded to know whether he could honestly look at Chandran's face and call him a LTTE leader. "There is a huge Sri Lankan community here, Anura. Ninety percent of them are Tamils. Are you saying that they are all linked with the LTTE? What's more, if he is a LTTE leader, then why is he having the Sri Lankan flag hoisted in his living room? This is the kind of abominable news reporting your state run institutions indulge in," he said in disgust.