Nishantha Wickremesinghe, Chairman SriLankan Airlines admitted that he personally chose a company handling airline in-flight duty free sales to be contracted from April this year to manage and handle duty free in-flight sales on all SriLankan flights. He did so blatantly violating necessary tender procedure given that SriLankan Airlines is a state owned entity.
The coup de gras is that the company “personally” chosen by the UL Chairman coincidentally is managed by Raju Chandiram who is not only a school mate of Nishantha Wickremesinghe, but also sat on the same Board at SriLankan Airlines together during the tenure of former Minister for Aviation Mangala Samaraweera.
SriLankan Airlines sent out an invitation letter on March 14, 2011 requesting for Tenders (Ref. RFP DFS001-2011) for the Supply and Delivery of Fragrances & Cosmetics for their on board Duty Free Sales Program with effect from July 2011. The Tender closing date was April 5, 2011. The Tender bids were opened in the afternoon of the same day at the Conference room of SriLankan Airlines at Katunayake. Five bids had been received.
Inside sources reveal that the company selected, Phoenix Rising Ventures (now termed Duty Free Partners), lacked credibility in their proposal. Further, the selected company, compared to other bidders, had been a small establishment doing the business of one Charter carrier in Canada. They had no other business nor any presence or experience in Asia or a national airline. The ownership of this company is with a Sri Lankan individual by the name of Dilan Wirasinghe who resides in Canada.
Although initially the tender was called for the Supply and Delivery of Fragrances & Cosmetics for a period of 6 months only, it was learned that in April this year , this same company was handed over the ENTIRE management and the total supply of all merchandise requirements for SriLankan Airlines in-flight duty free program which included not only the Fragrances & Cosmetics but also the other categories such as liquor, tobacco, jewellery, watches, gifts, accessories etc for a period of 5 years with the option of extending the contract for another two years.
The outsourcing of SriLankan Airlines lucrative in-flight duty free sales program, bypassing any tender procedure goes against all proper established internal company procedures and practices when awarding a contract of this magnitude.
The  revenue SriLankan airlines earned in 2011 for in-flight duty free sales was over USD 7 Million. Therefore for a period of 7 years, such revenue would be a minimum USD 50 Million. The Duty Free sales (in-flight) which was managed (till March 12) by the Airline was profitable, airline sources who requested anonymity said.
The question that needs asking then is this. Why was the whole program, without calling for any tender and/or evaluation of the commercial aspects, handed over to an external company namely, Phoenix Rising Ventures? Nishantha Wickremesinghe himself admitted to The Sunday Leader that this decision was taken exclusively on his directive.
Wickremesinghe however refuted allegations that he accepted a “commission” by way of a Gold Diamond studded Rolex watch worth Rs. 4 million as a “Thank You” for having negotiated this contract with Phoenix Duty Free Services. “No! No! I am just being character assassinated by people. For me this was an honorary job. The wristwatch was a gift to me for my 60th birthday. I am not a wristwatch collector either. I do not get involved in this type of thing – getting commissions. I do what I have to by the company and it is completely an honorary position. Unfortunately because my Brother- in- Law is the President I have to live with this kind of accusation”.
In-flight duty free sales on all UL flights dropped significantly in April this year following two duty free shops at the airport ‘Flamingo’ and ‘Orient Lanka’  introducing a mega promotion on liquor and cigarette sales.
The national carrier which on an average was selling between 6000 – 7000 bottles of liquor per month dropped to a mere 2000 bottles. “These days very few international carriers handle duty free sales in house. This was not the core business of SriLankan. So, I told my CEO to concentrate on the core business.  When I went through the inventory there were large stocks of perfumes and jewellery and our monies were tied up – so I said we need to focus on the core business and outsource this aspect. Most airlines outsource this aspect – so it was a matter of looking at some of the companies doing this. There was an American company called Phoenix. I made some inquiries and asked to get them down and I said have a look at it,” Wickremesinghe said.
Wickremesinghe went onto add that SriLankan was earning ’X’ number of dollars on in-flight sales, “but at the same time we were carrying our own inventory where our money was tied up.  So my CEO and a team worked it out – Now we are getting more than double of the profit – they have to pay on the sales and per passenger – they pay a percentage on passenger”.
He added that despite having bypassed tender procedure the Board had approved the contract with Phoenix on the principle that revenue would go up. And that SriLankan would not hold any stocks. Also that an internationally reputed company would come in.
Wickremesinghe meantime admitted that following the sealing of this contract in May this year together with Kapila Chandrasena CEO of SriLankan Airlines were invited to Singapore by Dilan Wirasinghe and Raju Chandiram to attend a symposium on duty free sales. They were hosted at the Grand Hyatt – Singapore. Last year Wickremesinghe and Kapila Chandrasena were hosted in Cannes by Wirasinghe and Chandiram to attend a similar symposium. In this backdrop the question is this. Surely it cannot be good practice for senior staff of a company to be hosted by a supplier as if it is so, then clearly the commercial judgment of these people are impaired and biased by accepting such opulent and generous gifts.
Incidentally, following their visit to Singapore in May this year, Nishantha Wickremesinghe invited Alicia Long the Vice President for Business Development Asia for Phoenix to Sri Lanka to conduct a training session for in-flight management on best practices of in-flight services. Ms. Long was flown courtesy SriLankan on Business Class and put up at the Cinnamon Grand Hotel in Colombo last week.  All her expenses were met by the airline.
Phoenix Duty Free Services meanwhile on the heels of having secured this contract with SriLankan have successfully secured a similar contract with Air India. When President Mahinda Rajapaksa was tipped off of the deal during one of his many recent foreign tours he went ballistic. He summoned SriLanka Airline CEO Kapila Chandrasena who was on board and demanded that the deal be cancelled immediately. However Wickremesinghe said the CEO had met President’s Secretary Lalith Weeratunga and explained the matter.

Kapila Chandrasena CEO For SriLankan Airlines Says…

“We did call a tender. One of the respondents which was Phoenix was willing to manage this on a consignment basis. So we are not buying anything. They supply the stuff, use our warehouse and manage the sales on board. They pay a rental of Rs. 400,000 a month for the warehouse and when a sale is made then they work on a formula they gives us a profitable margin.
The agreement with Phoenix states that irrespective of whether they sell or not they have to guarantee more than that margin.
Our profitability depends on the passengers we carry. When we compare last April we made a profit on in-flight duty free sales of Rs. 18 million. This April it was almost Rs. 30 million.
This modality they started on April 1, this year. From April 1 – the variety of goods we sell have increased from 170 to 240.  We have also included local arts and crafts – They are also doing the duty free book which is now of much better quality. (This is where Srilankan has been taken a for w ride by Phoenix. The amount of fuel used by a plane depends on the weight and some international airlines such as Emirates have stopped in-flight duty free service since they have calculated that it is not profitable once the extra fuel is calculated.)
But there is problem with the liquor sales. It is to do with the pricing. The duty free shops in the airport are competing as a consequence there may have been a drop in the liquor sales. What I am told is from last week Phoenix have matched the prices – but irrespective of those anomalies the contract guarantees a minimum profit for the company based on the passengers SriLankan carry – So that is the safety mechanism we have – we are guaranteed of a minimum profit.  So because of this minimum guarantee despite sales being down we are still making money.
The main feature of the contract is that the airline will be paid a minimum guarantee for 35% of the total sales as the profit.  The minimum guarantee is calculated at the rate of USD 0.84 per pax and this rate will increase every year as per the agreement.
Additionally, a 4% commission on sales as handling fees is also guaranteed plus Rs. 400,000 per month for the warehouse rental.
As a company we have safeguarded our interests. The President did not yell at me.  But the President like you told was otherwise. He just asked me what this whole this was and I explained it to him.”

Nishantha Wickremesinghe’s house in Mount Lavinia which was recentyl robbed.

In a blatant disregard of the laws of this country Chairman of Sri Lankan Airlines Nishantha Wickremesinghe admitted to The Sunday Leader that his son Shehan Michael Wickremesinghe violated Sri Lanka Customs regulations when he brought with him foreign exchange to the equivalent of Rs. 3.1 million in April this year and did not declare the cash as required by exchange control laws to do so. Nishantha Wickremesinghe said 80% of the loot including the gold Rolex watch stolen from his home in Mount Lavinia has been recovered after police arrested the thief.

Excerpts of interview:

FJ: What was the exact amount of foreign currency in cash stolen from your house in Mount Lavinia?

NW: The equivalent of 3.1 million rupees. I can’t remember the exact amount in foreign currency. (Pushed for a response Wickremesinghe 24 hours later said: “It was about USD 10,000 and around 8000 odd sterling pounds”.)

FJ: You were quoted last week in a national newspaper saying that your two sons who live in Australia gave you the cash. We have since found this not to be true since one son – Dilshan – lives in Sri Lanka.

NW: Yes that is true. The paper made a mistake. I referred to only one son – Shehan – who recently migrated to Australia.  He brought the cash.  He brought it with him when he arrived in April this year for the Sinhala New Year and gave to my wife.  He said this was a thank you for us having paid millions of rupees for his education in Canada.

FJ: Who picked him up from the airport when he arrived?

NW: I did. I was in office I went and picked him up.

FJ: Did he declare the monies to Sri Lanka Customs?

NW: I don’t know. He brought it as pocket money – I don’t know if he declared or not – I picked him up he just walked out and I met him at the arrivals.

FJ: Why did he not declare the cash? After all, that is a requirement by law.

NW: A lot of people who bring money into the country for different purposes don’t declare the monies. People bring cash to invest in a car or buy a land but they have a fear psychosis of declaring the monies because they think that will lead to different connotations.

FJ: So is this why your son smuggled the cash in?

NW: He did not smuggle it! I don’t think he declared it either – nor did I tell him cause I did not think that it was necessary.

FJ: How did your son come to be in possession of such a large sum of foreign currency?

NW: He said he had collected these monies. Shehan was educated in Canada, from there he migrated to Australia. He said I am collecting this money from abroad I want to return all the money you spent on my education.

FJ: Why did you not deposit the cash in a bank account?

NW: The money was given to my wife. I told her not to keep it all over the place but to put it in a deposit. I told her to put it in a RFC account; that someday the children will come back to SL, so to let this money accrue for them – Unfortunately before she could do so this incident happened.

FJ: Where was the cash kept?

NW: It was in an envelope in a suitcase. We reside most of the time in Nuwara-Eliya. I am a planter by profession and work for Finlays. We use the house at Mount Lavinia which belongs to my mother-in-law only when we are in Colombo.  We do not even have domestics in this house and eat from outside when staying there. I lead a very modest lifestyle. Even my job at SriLankan is on a voluntary basis.

FJ: For a tea planter who maintains your job at Sri Lankan is on a voluntary basis is it not unusual for you and your family members to have access to such a massive amount of cash?

NW: I have worked for 40 years… so I also have my reserves – I am not a politician I have led a very respectable life with a 40 year career in the corporate sector.

FJ: Did you not originally say that you were to take these monies to China?

NW: I was going to China. But that cash was separate. That too was stolen. I lost about 300 – 400 USD. The money I was taking to China was in a pouch.

FJ: How much of the foreign currency you lost has been recovered?
NW: About 80 percent. These monies have since been deposited in a Peoples Bank account in my wife’s name by the courts.

FJ: When you travel overseas on official work for SriLankan are you paid a perdium?

NW: Sri Lankan pays for my accommodation, food and laundry.  The perdium depends on the actuals of the country.

FJ: So how much do you get?

NW: It can be USD 150 a day.

FJ: Do you have to return any of these monies if unspent?

NW: No. My bills are paid by the company. I do not really handle cash.

FJ: Who gave you the Rolex wristwatch worth Rs. 4 million?

NW: The wristwatch was a gift from both my sons and my wife on my 60th birthday. Personally I didn’t like the gift because it was cutting my hand.

FJ: Where did they buy the watch from?

NW: They bought it from overseas. I don’t know from where exactly.

FJ: You must surely know from where the watch was purchased. After all, it would have come with a money back guarantee.

NW: There is no guarantee.  They just gave it as a gift. It is a very cumbersome watch. I wore it only once to please the children and my wife and kept it in a drawer thereafter in a computer table at the Mount Lavinia house. I did not value it that much. In fact, after the robbery I even told police that I did not know if the watch was an original or a fake.  However I don’t think my children and wife would give me a fake.

FJ: Did you not ask them if indeed it was an original or a fake? Even after the watch was stolen?

NW: No I did not. But I am sure they would not have given me a fake.

FJ: On the subject of in-flight duty free sales, did you bypass tender procedure and personally choose a company?

NW: Yes. These days very few international carriers handle duty free sales in house. This was not the core business of SriLankan. So, I told my CEO to concentrate on the core business. When I went through the inventory there were large stocks of perfumes and jewellery and our monies were tied up – so I said we need to focus on the core business and outsource this aspect. To work out a formula. Most airlines outsource this aspect – so it was a matter of looking at some of the companies doing this. There was an American company called Phoenix I inquired and asked to get them down and said I would have a look at it.

FJ: So how did you work the deal?

NW: I said to work out where you earn more money. We were earning ’X’ number of dollars on the sales but at the same time we were carrying our own inventory where our money was tied up. So my CEO and team worked it out – Now we are getting more than double of the profit – they have to pay on the sales and per passenger – they pay a percentage on a seat.

FJ: Did you get any approvals for this contract before sealing it; since you ignored tender procedure?

NW: Since we are earning more than double the money we were getting all these days – the Board approved it on that principle that our revenue profit would go up. And that we would not hold any stocks. Also that an internationally reputed company would come in.

FJ: But the law dictates that, as a state enterprise you should have entertained bids. Why did you not do so?

NW: If you call for bids all odd, odd people will bid. We wanted persons already in this business. At that time Raju Chandiram was not involved. We dealt only with Dilan Wirasinghe. They then opened the Colombo office and recruited Raju as their Managing Director.

FJ: Did the fact that Raju Chandiram and you both served on the Board of SriLankan Airlines a few years ago help?

NW: No, that had nothing to do with it. Of course Raju and I were on the Board at the same time but that was many years ago.

FJ: Is it true that you were scolded in choice language by the President about this contract?

NW: The President was on a flight when he had inquired from Kapila “mokakda meka? mokakda me kerala thiyenne?” (what is this? What have you gone and done?) Thereafter, Kapila took him the Board papers and demonstrated what exactly it was – I told Kapila to go and clear it up, I don’t have skeletons in my cupboard or anything to hide. He met with Lalith Weeratunge and explained that this contract is in fact very lucrative for the airline.

FJ: Are you denying that the President was angry and yelled at you and the Minister?

NW: He was on a flight at the time. I was not there. So I cannot say. He had told Kapila…

FJ: It is rumoured that the gold diamond studded Rolex watch was given to you as a commission for having negotiated this deal with Phoenix.

NW: No! No! I am just being character assassinated by people. For me this was an honorary job. The wristwatch was a gift to me for my 60th birthday. I am not a wristwatch collector either. I do not get involved in this type of thing – getting commissions. I do what I have to by the company and it is completely an honorary position. Unfortunately because my Brother- in- Law is the President I have to live with this kind of accusation.

Japanese Millionaire alleges Dilantha owes USD 320,000 for Lamborghini

By Faraz Shauketaly

Dilantha Malagamuwa with the Lamborghini – a USD 320,000 question mark, Instruction to NDB transferring USD 320,000 for Lamborghini and Email from Dilantha confirming USD 320,000

Sri Lanka’s lone motor car racing star Dilantha Malagamuwa was refused anticipatory bail by a Colombo Court and asked to surrender to Court on his return to the country.
Earlier the Sri Lanka Police had named him as a suspect in a matter popularly known as the “SIVAJOTHI” case where a Japanese national Yoshiyuki Hayashi alleges that he was defrauded of an amount of Rs 68.4 Million (US$ 600,000). The Japanese multi-millionaire, who acknowledges that he speaks only Japanese and has no knowledge of the English and Sinhalese languages, has a number of cases instituted against various Sri Lankans including his one time confidante and associate, the Sri Lankan motor racing star Dilantha Malagamuwa.
Malagamuwa is expected to participate at the ‘Colombo Night Races’ on December 16 and 17. It is widely expected that he will race in a Lamborghini sports car. The car itself is at the centre of allegations made by the Japanese millionaire who is also an acknowledged classic and racing car enthusiast. In documents seen by The Sunday Leader, Dilantha Malagamuwa appears to have asked for a loan from Hayashi San, to purchase the Lamborghini. Hayashi readily obliges as he is assured that Dilantha will settle the loan within one month.  Hayashi’s bankers transferred the USD 320,000 (Rs 36.4 Million) directly to Reiter Engineering the suppliers of the Lamborghini car. Other press reports have quoted Dilantha as saying that Hayashi is ‘sponsoring’ him with the Lamborghini. Hayashi however asserts that his involvement is not that of a sponsor but rather as someone who gave Dilantha a loan to purchase the car. In e-mails seen by The Sunday Leader, Dilantha reassures Hayashi of repayment – even if he has to ‘sell the gems’.
Dilantha Malagamuwa’s legal battles appear to be hitting him as fast as he drives away on the track: in a matter heard by the Colombo High Court a civil case has been instituted against him alleging that he was party to a fraudulent transfer of shares, depriving the Japanese millionaire of his rightful stake in Central Hill Plantations, the owners of the ‘Monte Cristo’  Estate. The fraud alleged in this case stands at Rs 65 Million.  Hayashi claims that in spite of his instructions asking that the shares be registered showing him as the beneficial owner, those instructions were violated and that the beneficial ownership was registered to Dilantha Malagamuwa and others.
In a related matter, the Kurunegala Magistrates are hearing the criminal aspect of this same case, where the shares had been deprived from Hayashi. In this matter Sri Lanka Police did not object to the granting of anticipatory bail to Malagamuwa as investigations had not been completed. Nevertheless Malagamuwa was enlarged on bail of Rs 5 Million in cash and two government servants standing as personal sureties.
In another matter where investigations are ongoing, Hayashi has complained that a sum in excess of Rs 200 Million (USD 2 Million) is missing from his bank account maintained at the NDB bank in Kurunegala. He had repeatedly requested for his statements but suspicion has been aroused when it transpired that he did not receive his statements in the usual manner and frequency. In a strongly worded letter to his local Bank Manager, Hayashi warned that unless his statements were made available, he would complain to President Rajapaksa in his capacity as the Minister of Finance.
In a separate matter altogether Dilantha Malagamuwa is cited in a case being heard by the Magistrates in Nawalapitiya.  The matter relates to the ‘fraudulent’ occupation of the Monte Cristo Estate for which purchase Yoshiyuki Hayashi had remitted the funds.
Tragedy and controversy has plagued the Malagamuwa family for some years: Dilantha Malagamuwa’s father was murdered on the family estate by a Security Guard who was in their employ. Dilantha Malagamuwa and his mother were asked to leave a house they occupied but which was owned by the deceased President’s Counsel Eardley Perera’s son in law. Again the matter ended up in Court, this time round it was the Kurunegala District Court who ultimately issued the necessary order for the Malagamuwa’s to give the property up to the control of its rightful owners.
Whilst Malagamuwa appears to be quite familiar with the controversy and legal battles, legal analysts congratulated the latest order from the Colombo Courts which refused the anticipatory bail application made by Malagamuwa. Analysts said that if he was granted anticipatory bail, the possibility of ‘justice being seen to be done’ would be a remote possibility as Malagamuwa may well have left the country after the Night Races. However, with the “present order,” which was to refuse anticipatory bail and to order that Malagamuwa surrender to Court upon his return, the Magistrate has ensured that justice will be given a chance”. In this instance the Magistrate obtained a “reassurance” from legal counsel representing Malagamuwa that he will be in Court on the December 14. However, our legal analyst was of the view that even if Malagamuwa did not appear the Counsel would have lost his ‘standing’ and would be “dimly viewed by the legal establishment’.  The Magistrate will revisit the application for bail once he surrenders to Court. The previous order to the Controller of Immigration asking that Court be noticed upon his arrival was vacated as the new order made the previous instructions redundant. Some had falsely claimed that this was tantamount to “lifting travel restrictions” which was patently not the case.
It is not immediately clear whether Malagamuwa would risk fate, the law and the wrath of Yoshyushi Hayashi by bringing the Lamborghini to Sri Lanka where it will almost certainly become the focus of attention by those representing Hayashi.  On the other hand Malagamuwa may well be relying on the informal largesse of the Colombo Night Race organisers to extricate him from any further legal manoeuvres that may befall him.
(faraz@thesundayleader.l)

Dilantha’s Abusive And Threatening Response To The Sunday Leader…

Another great Sri lankan. (Sic) Thank you is this what you give me for all my hard work I have done for Sri Lanka.
I know you guys will sell even your mother for an article to get famous. You have the freedom to write any thing but if there is anything not correct I will sue you. Listen to both parties. I think your parents must have brought you up to be a honest person and to work with good conscience.

Take care
God bless you.
Sent via BlackBerry from Maxis

We reported the raid by the National Child Protection Authority last Wednesday on Prem Niwasa in Rawatawatte. As the NCPA and the Criminal Investigations Department continue their investigations, mystery surrounds the identity of the local counterpart of the foreign adoption agency to whom a part of the payment of U.S. dollars ten thousand is made. Meanwhile, international media described the arrest of Sister Eliza  ‘who runs a home for unwed mothers as one that is surrounded by confusion.’ Representatives of the Missionaries of Charity said that they do not receive a cent for their services. On the contrary, a fourth vow taken by the Mother Teresa’s congregation is to give wholehearted service to the poorest of the poor.

In search for the other side of the story to our article last week titled ‘Baby Shop in Rawatawatte’ in which we reported the raid on Prem Niwasa carried out by the National Child Protection Authority; this writer met with representatives of the Catholic Archdiocese and representatives of Mother Theresa’s nuns on Wednesday at the Bishop’s House.
Among those present were Father Ivan Perera, Episcopal Vicar of the Archdiocese of Colombo, Father Benedict Joseph, Media Spokesman for the Archdiocese of Colombo, Father Noel Dias, Lecturer, Sri Lanka Law College, Sr. Mary Johannes, Regional Superior of the Missionaries of Charity (Mother Teresa’s Congregation), Sr. Mary Nicolette – In Charge of the Home for the Dying Destitute in Mutwal, Colombo 15, Missionaries of Charity and Sr. Nilanthi from Caritas.
Dressed in white, with a single  blue lining – the smiling missionary sisters of charity – Mother Theresa’s sisters – did not have anger, anxiety or fear in their hearts.
“Missionaries of Charity do not deal with money – for God provides…” was the opening sentence by Father Ivan Perera, Episcopal Vicar of the Archdiocese of Colombo.
Introducing Sister  Mary Johannes, Regional Superior of the Missionaries of Charity (Mother Teresa’s Congregation), Father Ivan said that Sister Johannes could not visit the funeral of her own mother as she was in service.
“Normal people would not understand how these sisters manage. They are not supposed to collect money for their work and they never do, they do not have fundraisers. All our services are free. We do not take a single cent for services – all free. A normal person will not understand this. Sisters depend solely on divine providence.  They do not collect funds, they get enough to carry out their charitable work and they depend on God to provide,” said Father Ivan.
“We do not expect people to understand. But Divine Providence is there. We do not have to bother, God will give….” said Father Ivan. As they sat unruffled, they answered the questions one by one…
“We are not aware of any payment being made to an Adoption Agency and we have not heard of the Horizon Adoption Agency. We do not deal with foreign adoptions. We deal with the Probation Officials who send people to us to bond with the children and spend time with them. Our priority has always been local adoption. A child is shown to four local couples and for these they have to fill forms. When a child is rejected by four local couples – it is thus noted on those forms, and the child is then considered for foreign adoption and that too by the Probation officials,” explained  Sr. Mary Nicolette.
“A child is given through a court order and we always take the natural mother to the Probation Department at Nawala Road. Even there, we always tell the mother that she is free to take the child and go. It is with her consent and a letter from us stating that the child has been rejected by local couples that a child is given for foreign adoption through the court,” pointed out Sr. Mary Nicolette.
Sr. Mary Nicolette also went on to state that the home has 31 probation children, 28 home children and 12 infants without mothers and 11 children with mothers. She went on to state as the infants were with their mothers, they were not recorded in the books.
When asked about a receipt for US Dollars 10,000 paid to the Horizon Adoption Agency which was in the possession of an American couple who was present at the time of the raid; Sr. Mary Johannes, Regional Superior of the Missionaries of Charity (Mother Teresa’s Congregation),  said that they had never heard of such an Adoption Agency and that if such monies were paid, it was certainly not to the home.
“There was not just one foreign couple: there were three foreign couples on that day. They had come to see the children. Most foreign couples come to bond with children and possibly to see a child. Foreign couples come with a letter of allocation from Probation Officers and children are handed over in court by a Judge in the presence of Probation Officers,” said Sr. Mary Johannes.
The sisters went on to say that on that day there was also a local couple with Rs. 35,000. They pointed out that the money was to pay lawyers’ fees.
“It is also necessary that a couple seeking to adopt a child opens a bank account in the name of the child and a part of this money was for that purpose,” pointed out Sister Nilanthi from Caritas.
“We are not aware of the receipt. We have not seen the colour of it,” said the Missionaries of Charity
While others take three vows, we the Missionary Sisters of Charity – Mother Teresa’s sisters take a fourth vow – to give our wholehearted service to the poorest of the poor, they pointed out softly.
“Whoever who comes to us, we do not turn away. It is true that there were girls who were pregnant. But it is not for us to turn them away when they are sent to us. One such girl was sent to us by the Probation authorities through a court order, another was brought by her mother,  and another who was a victim of the  tsunami. It is not for us to turn them away when they are in distress. Where do they go to? From the time a pregnant girl is brought we help her go through those difficult times. We take them to the clinics and ensure that they get their medication. When the baby is born, we encourage her to take the baby with her. It is not for us to study the ethics and legality. It is for us to serve…” Said Sr. Mary Johannes.
The Sisters went on to say that many of these girls are so desperate and they do not know what to do. “A child’s interest is of paramount importance…and it will be so for us too,” said the sisters.
The holy congregation expressed sadness at the way the Matron of Prem Nivasa, Sr. Eliza had been arrested. She was taken away to Wennapuwa though Prem Niwasa is in Rawatawatte and the case was heard while the lawyer was on the way . Sister Eliza was  then remanded. She was taken to Welikada around midnight, they said.
Representatives of Prem Niwasa went on to say that two of the pregnant girls in their home were taken to another state home.  They questioned the safety of the home and the psychological condition of the girls who were pregnant at the time, when they were taken away by the police.
“Their image has been tarnished and  it is important that we understand the factual reality of adoption. The home run by the Missionaries of Charity maintains the highest standards of emotional care and provides a safe and secure environment for children in distress. They are ready to share everything – from a meal upwards. The lives of these sisters a re dedicated to service and their vocation is to go through any hardship for these children. The special characteristic of this home when compared to others is that these sisters are dedicated 24 hours of the day. They do not go home at 5 o’clock,” said Father Noel Dias.
“These sisters have left their own homes and their families behind for their lives of dedication and they have minimal contact with their families,” he added
raneemoham@hotmail.com

Did such representatives have dealings with Probation Officials?  – Lawyer Shan Senanayake

Shan Senanayake, Chairman, Foundation for Love and Justice and a leading child rights activist when contacted by The Sunday Leader on the issue said, “I read with interest the article published in The Sunday  Leader last week. I saw that the NCPA had stated that at the time of the raid a foreign couple who was there to adopt a child had stated that they had paid US dollar 10,000 to a foreign adoption agency by the name New Horizons Adoption Agency and that US dollars 6,000 was for a local representative. According to the Sri Lankan law pertaining to children’s rights and adoption of children, there cannot be any money transaction with regard to the adoption process. As far as I know, local adoptions are handled exclusively by the provincial Probation and Child Care Services; while foreign adoptions are exclusively handled by the National Commissioner of Probation and Child Care Services Sarath Abeygunewardene. Therefore whether it is a local adoption or a foreign adoption, the legal process of adopting a child is facilitated by the Department of Probation and Child Care Services. The duty and responsibility of enforcing the law and maintaining transparency throughout the process is the legal duty and obligation of  the probation services. As far as I know the adoption process or the procedure cannot be violated by the parties to the transaction without the concurrence of Probation officials. Now, in this situation it is alleged that US dollars 6,000 has been paid by to a local agent.
The investigators have to inquire whether such representatives had any dealings with any Probation Officers in Sri Lanka pertaining to the adoptions taking place.”

–

“We will wait for the investigations …”  - Sarath Abeygunewardene,  Commissioner General of Probation

When The Sunday Leader contacted Sarath Abeygunewardene,  Commissioner General of Probation and Child Care Services he said that it is too early to make a comment as the findings have to be processed.
“Investigations into
this issue are going on. It is too early to make a comment.
We will have to wait for the findings of the investigations,” he said.

–

“This is not about religion,”  – Anoma Dissanayake,  NCPA Chairperson

“Facts are stubborn and investigations are going on. I really do not want to comment at this juncture, but I must say that Probation Officers should have supervised and advised  that  under-aged girls with newly born infants and under-aged girls who were pregnant who wanted to give their babies up for adoption; and children, cannot be kept in the same place,” said Anoma Dissanayake, Chairperson of the National  Child Protection Authority.
“This is not about religion. We have arrested Buddhist monks too when it came to violations. The NCPA was forced to take action,”  she said.
“We got the information on the NCPA Hotline1929 and  we went to see what was happening. Generally for a raid, only the police goes. Our law enforcement officers along with the police went there to see whether this is true or false. It is customary for me to go on these inspections or monitoring processes,” said Dissanayake.
Dissanayake said that  this is not the first time that she has gone with NCPA officials to monitor or inspect a Children’s Home. “Whenever I am directly informed, I try to accompany my officials on these inspections and monitoring as I did in the case of the Avanti Devi Children’s Home in Anuradhapura in early January, and  the Bosath Lama Niwasaya in Polonnaruwa,  as well as the sudden inspections of the Jaffna Children’s Home and the Bibile Lama Niwasaya,” Dissanayake said.

Speculation is rife as to who has cut down a sandalwood tree at the Bandaranayake Ayurveda Research Centre (BARC), Navinna.

A sandalwood tree which was said to be over 50 years old and nearly 30 feet in height with three feet circumference has been cut and removed by an unidentified group from BARC a few weeks ago, reliable sources from BARC told The Sunday Leader.
According to the sources, the sandalwood tree had been cut during a weekend and removed secretly.
“It is said that this tree has been cut down with other invaluable trees and many have been removed with those logs,” added the sources.
Interestingly, the security post at the BARC when contacted by The Sunday Leader said that they were not aware of who felled the tree and as to when it was removed.
“We didn’t know anything about how this tree was cut down and removed,” they said.
However, the sources said that there is a rumour that the sandalwood tree has been sent to the State Timber Corporation to make a bed for President Mahinda Rajapaksa.
“It was said that President Rajapaksa has been advised to sleep in a bed made out of sandalwood to get rid of malefic planetary impact. This was the first time that a valuable tree has been cut down within the BARC premises,” the sources added.
However, when contacted, the Commissioner, Department of Indigenous Medicine Palitha Weerakoon told The Sunday Leader that it was a mystery as to how this tree was cut and removed without the BARC knowledge.
“When this was reported, we lodged a complaint at the Mirihana police. The Mirihana police is conducting investigations,” said Weerakoon.
According to Weerakoon, the sandalwood tree was closer to the boundary wall and he believes that the logs had been removed over the parapet wall.
Meanwhile the Botany Section of the BARC told The Sunday Leader that although there was a security post closer to the area where the sandalwood tree was, the security guard had neither heard the tree falling nor heard it being chopped for removal.
According to the Botany Section, the tree had been cut down with an electric saw.
“They have removed all the matured logs leaving the tender branches aside. There is also a hostel close to this area and none of the inmates had heard any noise either,” they said.
When asked what the value of this tree was, the sources said that one sandalwood kilogram costs Rs.2,700 in the market.
“These logs could have weighed around 2000 kg and the value would be around Rs. 5 million,” added the sources.

Strange bedfellows: Fonseka, Sarath Silva and Daya Gamage

By Faraz Shauketaly

Strange bedfellows – Sarath Fonseka, Sarath N. Silva, Ranil Wickremasinghe and Daya Gamage at an Election Rally in Ampara (Picture by Wasantha Chandrapala)

A perfectly profitable state owned and managed enterprise was handed over on a platter breaking established norms and robbing the people – was the claim made by government Minister and MP for Moneragala, Jagath Pushpa Kumara.
An examination of the figures would indicate that despite being comfortable financially the management of Sevenagala Sugar had plenty to desire.
However grandiose the plans of the Ranil Wickremesinghe  may have been in 2002 the entire privatization process was flawed: the TEC comprised of a majority of political appointees and none with any specialist knowledge of the industry. To add to the woes, the valuation used was one obtained from a private bank which valued the business controversially lower.
The bidding process saw four offers: in order of values received, Seasongrow Holdings Ltd. Rs 762.3 Million; Daya Apparel Exports / Xiangnan Luo Rs 550 Million; Distilleries Company of Sri Lanka Ltd. Rs 451.2 Million and Master Divers Pvt Ltd. Rs 78.1 Million.
Seasongrow Holdings was disqualified as their bid bond proposal did not conform to the Request For Proposal (RFP), Distilleries and Master Divers being discounted as they were lower than the Daya Apparels / Xiangnan Luo combine who promised to pay the full price on implementation – all Rs 550 Million.
The Technical Evaluation Committee comprised three political appointees – Deepal Gunaratna as Chairman of the TEC,  Irwin Weerakkody, Suddhantha Amaratunga – with the Additional Secretary and the Treasury Representative completing the Committee of five. None of the political appointees had any specialist expertise of the industry and certainly no one from the Sugar cane Research sector.
A closer examination of the books reveal that at the time Daya Apparels made their successful bid, the Sevenagala Sugar Company had a sum of Rs 307 Million on fixed deposit and a stock of Sugar and Spirits of around Rs 150 Million plus various creditors of Rs 120 Million. In essence the Daya Apparel Xiangnan Luo combine walked into a financial bonanza of Rs 577 Million as opposed to their offer of Rs 550 Million. They in fact, netted Rs 27 Million! In parlance used in the Hotel Developers / Hilton Colombo matter, a “windfall profit” of Rs 27 Million on the day of completion. All they probably needed was probably a “bridging finance” facility to complete the transaction. Sources connected to this government claimed that this was at a time when companies and individuals connected to Daya Apparel were noted as ‘defaulters’ by the banking authorities. This claim however has been dismissed as untrue.
The Sunday Leader was unable to independently verify the accuracy of this claim due to rules on banking confidentiality. The fact remains however that with the help of Seylan Bank and Sampath Bank the Daya Apparel / Xiannan Luo combine completed the transaction. If the claim of being a defaulter has any truth it raises the question as to how the Daya Apparel application for funding passed through the Risk Assessment Committee within the banks.
The Government valuer had placed a value of Rs 1.2 Billion on the business – using what was later called the fixed assets basis of valuation – whilst the private bank had placed a value of Rs 481 Million – using yet another methodology. Clearly if the arithmetic was done in this manner, Daya Apparel and their partners generated a so-called windfall profit of not just Rs 27 Million but more in the region of Rs 470 – 500 Million. A case study for genuine public interest litigators indeed.
Compounding matters is the production figures for a company whose primary aim was to at the least maintain the output to collectively generate a production of sugar to reflect at least 12% of Sri Lanka’s consumption of sugar. Again the plan failed to materialize: in 2000, it showed a profit of Rs 115 Million and was responsible for 12% of the sugar consumed. In 2011 between the two sugar companies – Sevenagala and Pelwatte Sugar – the figure was a disappointing and vexatious 4 percent of Sri Lanka’s consumption. Government sources say this was definitely ‘under-performance.’
In addition to the financial bonanza that the new owners of Sevenagala received was a large and valuable fleet of vehicles – both heavy equipment and light vehicles. It really does lead one to wonder why the government did not merely call for a proposal from ‘Expert Managers’ as opposed to divesting 90 percent of what is arguably a very sweet essential item for the public.

The conundrum that is “Sevenagala Sugar” is further intoxicated when one considers the production of Spirits and Molasses over the period that Daya Apparel operated the factory as majority shareholders:
The income from the production of sugar continued to remain rather static within a band of Rs 347 – 652 Million, almost as though the company existed in the main to produce Spirits. Income from Spirits displayed strong growth starting with Rs 112.2 Million and ending up in Year 2008 with Rs 701.9 Million.
Daya Gamage is acknowledged by all – and he would be the first to admit it – as being a dominant force when it comes to financing the United National Party. He certainly fell out of favour with President Mahinda Rajapaksa. One viewing the other as suspect personified and the other piqued by Gamage’s support of the UNP leadership especially after all the contracts that were awarded to the Daya Group during the period Mahinda Rajapaksa was in charge of the Highways Ministry. Perhaps his most controversial moment came during the 2010 Presidential Elections. At a meeting in Ampara, Daya Gamage was seen hob-nobbing with Sarath Fonseka, Sarath N. Silva and Ranil Wickremasinghe and photographed acknowledging the crowds from a stage.
Daya Gamage has maintained that the ‘Expropriation Bill 2011” is unreasonable and draconian. He has indicated that he may go to an international tribunal to seek redress and assured the media that ‘no Minister can make me a beggar’.
As forceful as Daya Gamage is in his belief of his rights is the belief of the Minister of Economic Development who also maintains that the business was under performing and was engaged in other businesses ignoring the core business. Therefore, “not in the national interest”.
(faraz@thesundayleader.lk)

—-

Daya Gamage’s Response

Former Chairman of Sevanagala Sugar, Daya Gamage

“ I do not wish to go into too many specifics as there are various matters pending. However I would like to state that Sevanagala Sugar was a loss making institution when we took over and we have proudly turned it around and today as a privately held company is worth at least Rs 4.5 Billion.
If we had taken it to the Stock Market and obtained a listing, the company would be worth at least Rs 10 Billion. The accounts of Sevanagala Sugar confirms the profitability.
Additionally I would like to say that both my wife and I are tax payers and have created plenty of opportunities for others. I would like to ask of the Ministers who speak about me even using parliamentary privilege, how many of these Ministers are tax payers?
I can guess that I may well be amongst the top 100 tax payers in this country. If the company did not pay income tax what was the Income Tax department doing? Whether we produced mainly sugar or a combination of Sugar and Spirits, the company created opportunities for the government to collect a significant amount of taxes and duties, which they did. I do not agree that in any way, Sevanagala Sugar was ‘under performing’. Actually it was profitable. Further as a Buddhist I did not cause the production of liquor at any time.”

–

Questions posed to Gamage
We asked the face behind Daya Apparel Exports for his comments on the following specific areas.
On the composition of the TEC…
“was it fair that the TEC had 3-members who were political appointees?”
On the allegations that Rs 307 Million  in Fixed Deposits and other Creditors meant there was a Rs 577 Million bonanza to walk into?
That you had a ‘windfall’ profit of anything between Rs 27 Million and Rs 500 Million.
That Sugar revenue remained rather staid whilst the contentious Spirits maintained strong growth.
On the (non) payment of Income Tax as opposed to excise duties on alcohol.

Maithri Gunaratne

By Mandana Ismail Abeywickrema

The allegation leveled against UNP Leader Ranil Wickremasinghe that his homosexual tendencies have affected the party’s progress is a much talked of topic in political circles. The 16th charge in the list of charges level against Wickremasinghe by UNP Southern Provincial Councilor and Attorney Maithri Gunaratne states fear has been instilled in the minds of parents to allow their children to join the UNP due to the appointment of the party leader’s homosexual partners to positions in the party ignoring the most suitable persons to hold such posts.
“I do not see a problem with the sexual preferences as long as the partner is not involved in the political process and decisions are not made in favor of their partners,” Gunaratne said in a telephone interview with The Sunday Leader. Gunaratne notes that he has evidence to back every charge made by him, including that on the party leader’s homosexual tendencies and would do so before a proper committee of inquiry.
Excerpts:

Q: Do you have an issue with UNP Leader Ranil Wickremasinghe’s sexuality?
A: I do not have an issue with regard to the sexual preferences of the party leader as long as they do not curry favors as a result. He can have any preference, but it should not be involved in the party’s political process.

Q: Have there been incidents where young boys have been victimized in the party after refusing his overtures? 
A: The best example is the case of parliamentarian Buddhika Pathirana. The parliamentarian had been asked on three occasions to accompany him (Wickremasinghe) to various hotels and villas in the South. The victimization against Pathirana started when he did not respond to the overtures.

Q: But can you prove beyond doubt that Wickremasinghe’s homosexual tendencies have affected the party’s progress?
A: May main witness in the charge against Wickremasinghe is parliamentarian Buddhika Pathirana. I will lead his evidence. There are several other witnesses as well. However, I cannot divulge their names at this moment, but they too will come forward when an inquiry is held into the complaint made by me. These are not frivolous charges and I have evidence to prove each one of them. That is why I have called for a committee headed by an independent judicial officer agreed to by both parties to inquire into the allegations and I will produce all evidence.

Q: Is Buddhika Pathirana ready to come forward and back you on the allegation leveled by you?
A: Yes he has agreed. I have had an extensive discussion about the matter with him. During a visit to the South I asked him why he was being victimized and he explained the reasons and said it all began when he did not respond to the party leader’s overtures. He is being victimized and attempts are made to remove him from the party in order to get him out of the parliamentary seat. Once Pathirana is removed from parliament, the next in line from the Matara District is a person appointed to the Working Committee by the party leader even after he had lost the election and has also appointed him as the party’s international affairs secretary. The modus operandi now is to get Pathirana out of parliament in order to get the party leader’s favorite appointed to the House.

Q: How does Wickremasinghe’s sexuality hinder the political progress of the party?
A: If he is going to give people and candidates prominence due to his sexual preferences even if they are not accepted by the people, it would hinder the party’s aim in achieving electoral victory. The party would not win elections if persons who are not accepted by the people were pushed forward. When Mahinda Wijesekera was the district leader for Matara from the PA, there was no one to hold the post from the UNP. According to the party tradition, the district leadership is held by a member of parliament, who at the time was Sagala Ratnayake. The UNP’s district organizer post was given to Provincial Councilor Justin Galappatti since the Member of Parliament did not want to hold the post because he was unable to face Wijesekera. However, Ratnayake wanted the district leadership when Wijesekera was injured and incapacitated in a bomb blast in 2009. The party leadership tried to appoint Ratnayake and Galappatti requested that he be allowed to hold the post until the conclusion of the Southern Provincial Council elections, which was just a few months away. Nevertheless, the party leadership ignored the request and in order to appoint Ratnayake, he removed Galappatti. The post was handed over to Ratanayake, and deeply hurt by the incident, Galappatti crossed over to the government and contested the Provincial Council elections from the UPFA and won. What Ratnayake did not realize was that Galappatti would have managed to get another seat for the UNP in Matara had he remained in the party. If that was the case, Ratnayake would have entered parliament at the last general election.
Galappatti was a senior UNP member who has made many sacrifices for the party. He fought for the party and during the infamous Wayamba Provincial Council election under President Chandrika Kumaratunge, he was attacked and stripped in Kurunegala. However, he continued to fight for the party. The party leadership favoured another and ultimately sacrificed him.

Q: Do you believe that one should be a heterosexual to be a political leader?
A: The ideal situation would be a heterosexual given the traditions of the country. However, I do not see a problem with the sexual preferences as long as the partner is not involved in the political process and decisions are not made in favor of their partners.

Q: Has the party officially responded to your complaint?
A: No there has been no response. However, I will follow up with another letter. I am
also getting legal advice to look into instituting legal action as well. The party leader has grossly violated Article 2 of the party Constitution.

An attempt to monopolize the liquor industry using the nationalization movement 

President Mahinda Rajapaksa

By Ashwin Hemmathagama

Although it is intended to look like political victimization, the controversial Bill – Revival of Underperforming Enterprises and Underutilised Assets, which will be presented to Parliament this week will pave the way for some relatives of the Rajapaksa family and their stooges to create a monopoly in the local liquor industry.

Once enacted, this Bill will provide for vesting in the state, identified underperforming enterprises or underutilised assets; to appoint in respect of each one or more of such underperforming enterprises or underutilised assets a competent authority; to provide for their thorough alternative initialisation and the payment of compensation in respect thereof; and to provide for matters connected therewith and incidental thereto. The Bill lists 38 ventures already identified by the Government as underutilised assets and underperforming enterprises. Although it is included in this list, Sevanagala Sugar Industries Ltd. and Pelwatte Sugar Industries PLC are two private enterprises in full swing making considerable amounts of operational profits while providing direct and indirect employment opportunities for well over 100,000 Sri Lankan families.
Proving the profitability of his business, which is listed as a failure in this Bill, Daya Group Chairman, Daya Gamage, the investor in Sevanagala Sugar Industries Ltd. told The Sunday Leader that a turnover of Rs.1.1 billion was reported during the FY 2010/11 and the net profits for the last three years exceeded Rs. 630 million. “This Bill was brought in within a short period of time with ulterior intensions. It did not allow us or the trade chambers to prove that my business at Sevanagala is not underperforming or with underutilized assets. I bought Sevanagala Sugar Industries Ltd. in 2002 for Rs. 550 million and have invested heavily to make it work. I do not want to look at this as political victimisation,” he said.
Pelwatte Sugar Industries PLC, which is also in this list, reported a turnover of Rs. 2.36 billion during the FY 2010/11 marking some 13 percent increase over last year. According to its management, these improvements were the outcome of the acquisition that took place in March this year where 47 percent of Pelwatte Sugar Industries PLC was bought by the Distilleries Company of Sri Lanka (DCSL) for a consideration of Rs. 884 million. Pelwatte Sugar Industries PLC is situated in the Moneragala District where it operates the country’s most technologically advanced sugar factory by cultivating sugar cane under rain-fed conditions, and produces sugar and other by-products from raw sugar cane.
Despite the fact that Sri Lanka’s natural resources make it an ideal sugar producing nation, 95 percent of the country’s sugar demand is fulfilled by imports. The country’s annual requirement of sugar stands at 590,000 MT of which 559,000 MT is imported. The local sugar production was reported at 31,000 MT in 2010, which is a marginal decline of 3 per cent from 2009, according to industry sources. In addition to sugar production, both Sevanagala Sugar Industries Ltd. and Pelwatte Sugar Industries PLC produce ethanol and molasses. Ethanol, one of the most important by-products of Pelwatte Sugar is used in the production of spirits, the core business of the DCSL, the majority stakeholder of Pelwatte Sugar Industries PLC. As a result of this strategic investment, DCSL buys back Pelwatte Sugar Industries’ entire production of ethanol, thereby saving precious foreign exchange, whilst achieving local capacity building in the industry. Currently DCSL holds 70 percent of the local liquor market selling approximately 600 million bottles of liquor per annum.
According to a reliable industry source the rulers have drawn plans to put investor Don Harold Stassen Jayawardena (Harry) out of business by crippling his DCSL operations, which is the lifeline for the entire group. It was also learnt that their intention is to give “another Golden Key to Harry” following the recent example that destroyed the Ceylinco Group. “Lakshman Perera, a person close to the Rajapaksa family holds a bottling license. He produces a liquor bin in Hingurana. With the Revival of Underperforming Enterprises and Underutilized Assets Bill the country’s only ethanol manufacturers Sevanagala Sugar Industries Ltd. and Pelwatte Sugar Industries PLC will be taken over by the Government forcing DCSL and many other producers to rely on ethanol imports, which is subjected to heavy tax. Ethanol produced by these two ventures can be easily used to support Lakshman Perera’s bottling business. Currently an ethanol liter bought for Rs. 55 in the international market is imposed with a tax of Rs. 275 upon reaching Sri Lanka. Ultimately DCSL and many other local brands will lose ground to this government supported brand, which will scratch each other’s backs,” the source added.
The Revival of Underperforming Enterprises and Underutilized Assets Bill creates the necessary background to nationalize private enterprises and in most cases the assets that belong to those who are not in the good books of the ruling party.
The companies in this list are:
1.    Hotel Developers (Lanka) PLC
2.    Property Situated in Pettah – Charmers Granaries
3.    Properties Situated in Badulla – Colombo Commercial Company
4.    Properties Situated in Pettah and Narahenpita – Lanka Tractors Ltd.
5.    Land Comprising Pelwatte Sugar Industries Ltd.
6.    Land Comprising Sevanagala Sugar Industries Ltd.
7.    Sinotex (Lanka) Ltd.
8.    Jaqalanka Ltd.
9.    Plymouth Industries (Pvt.) Ltd.
10.    Cosmos Macky Industries Ltd.
11.    Kabool Lace (Pvt.) Ltd.
12.    Former Cashew Corporation Land
13.    Intertrade Lanka (Pvt.) Ltd.
14.    Suchir Neb Projects (Pvt.) Ltd.
15.    Ceylinco Leisure Properties Ltd.
16.    Seetha’s Fashion (Pvt.) Ltd.
17.    D.C. Apparel (Pvt.) Ltd.
18.    Needle Crafts (Pvt.) Ltd.
19.    HY Fashion Garments (Pvt.) Ltd.
20.    Collins Garments (Pvt.) Ltd.
21.    Ruhunu Putha Apparels (Pvt.) Ltd.
22.    Sanjaya Garments (Pvt.) Ltd.
23.    Macfa Apparel (Pvt.) Ltd.
24.    Yobeedha Associates (Pvt.) Ltd.
25.    Dynamic Clothing (Pvt.) Ltd.
26.    609 Polymers Exports (Pvt.) Ltd.
27.    Cosco Polymers (Pvt.) Ltd.
28.    Great Wall Thread Manufacturing (Pvt.) Ltd.
29.    Adamjee Extractions (Pvt.) Ltd.
30.    Data Food (Pvt.) Ltd.
31.    Tendon Lanka (Pvt.) Ltd.
32.    Rican Lanka (Pvt.) Ltd.
33.    Composite Tower Solutions (Pvt.) Ltd.
34.    Health Food Products (Pvt.) Ltd.
35.    Sri Chirag (Pvt.) Ltd.
36.    Royale Exports (Pvt.) Ltd.
37.    Continental Vanaspati (Pvt.) Ltd.
According to Parliament sources, Speaker Chamal Rajapaksa is expected to announce the Supreme Court standing on Tuesday, November 8.  However, The Sunday Leader learns that the Supreme Court has held that the Revival of Underperforming Enterprises and Underutilized Assets Bill is consistent with the Constitution and could be enacted with a simple majority in Parliament.
Chief Opposition Whip in Parliament and Member of Parliament (UNP) John Amaratunga taking a different angle pointed out several adverse impacts of the Revival of Underperforming Enterprises and Underutilized Assets Bill. Speaking to The Sunday Leader he said, “This Bill violates the rights given in our Constitution. It could have been the case that the Government kept the Legal Draftsman out of the picture and got help from a third-party. The Bill also violates UN conventions. The Bill gives the wrong impression to both foreign and local investors. The purpose of the Bill as set out in Section 2 is to vest in the Secretary to the Treasury what are described as underperforming enterprises or underutilized assets which are deemed to have an adverse impact on the national economy,” he said.
“We strongly object to the manner in which the Government is seeking to rush through with this legislation.  It is in violation of the fundamental rights of a citizen to engage in a lawful occupation, profession, trade, business or enterprise. We also wish to point out that Pelwatte Sugar Industries Limited is by no means an Underutilized Asset.  It is an on-going fully operational and profitable enterprise and is a public quoted company. Sevanagala Sugar Industries Ltd. though a privately owned company is also a fully operational on-going, profitable venture.  So much so that President Mahinda Rajapaksa himself renewed the lease on this land just a few months ago. Ceylinco Leisure Properties Limited belongs to the Ceylinco Group of Companies.  The depositors in several of the troubled Ceylinco subsidiary companies are now in Court seeking the return of their investments and this property is bound to be included in any compensation scheme the courts will finally draw up,” Amaratunge said.
As per the Bill, Underutilized Assets are described as land, that was owned by the Government or a Government Agency and alienated within a period of twenty years prior to the date of the coming into operation of this Act, to any person by transferring freehold or leasehold rights or through a divestiture on the basis that the related operations proposed to be carried out on such land will result in generating employment, foreign exchange earnings or savings or economic activities, beneficial to the public, but where such benefits as aforesaid have not accrued, being prejudicial to the national economic and public interest; land owned by a person that had been granted within a period of twenty years prior to the date of the coming into operation of this Act, either, any tax incentives under any law relating to the imposition an recovery of any tax, incentives under the Board of Investment Law or regulations framed there under, or any Government Guarantee, on the basis that the related operations proposed to be carried out connected thereto will result in generating employment, foreign exchange earnings or savings or economic activities, beneficial to the public but where such benefits as aforesaid have not accrued, being prejudicial to the national economy and public interest.
Underperforming Enterprises are described as a company or other authority, institution or body established by or under any written law for the time being in force, in which the Government owns shares and where the Government has paid contingent liabilities of such enterprise and the Government is engaged in protracted litigation with regard to such enterprise which is prejudicial to the national economy and public interest.

By Shibly Aziz President’s Counsel and President of the Bar Association of Sri Lanka

A draft (Bill) of a law proposed to be passed by Parliament titled, The Revival of Underperforming Enterprises and Underutilized Assets Act was recently referred to the Supreme Court for its consideration as a Bill that is ‘urgent in the national interest’ in the opinion of the Cabinet of Ministers, acting under Article 122 of the Constitution.

This reference is a departure from the normal course provided by the Constitution for introduction of legislation, and effectively removes the normal opportunity granted by any concerned citizen to refer the Bill for the determination of the Supreme Court, as to whether the law or any part of it is inconsistent with any provision(s) of the Constitution, and if so, whether the Bill (or any part of it) requires a majority of at least two-thirds of the Members of Parliament as well as whether a Referendum would also be required additionally.
In the normal course, under Article 78(1) of the Constitution, every Bill is required to be published for the public in the Gazette at least seven days before being placed on the Order Paper of Parliament. In this way, any citizen is granted the right to challenge a Bill within one week of it thereafter being placed on the Order Paper of Parliament, by reference to the Supreme Court by a petition, as provided by Article 121 of the Constitution. This must be done, with a copy of the petition being sent to the Speaker of Parliament. A ‘citizen’ for this purpose is defined in the Constitution as not only being individuals who are citizens, but also any ‘body’ (whether incorporated or unincorporated) of which at least two-thirds of members are citizens.
This limited window of opportunity for challenging a Bill in the Supreme Court for a determination that it is unconstitutional, is of particularly vital importance to the Rule of Law and the protection of rights and liberties of the public – particularly in relation to fundamental rights, given that in Sri Lanka, there is no provision to challenge a law after it has been passed in Parliament and been certified by the Speaker as such, even if it contains provisions that are unconstitutional or violate fundamental rights of affected persons. The Supreme Court has held that under Sri Lankan law (Constitution), there is no possibility of post-enactment review of any Bills passed in Parliament.
The urgent procedure provided in Article 122, removes the opportunity granted to citizens to challenge a Bill and removes from the Supreme Court the time of three weeks available for consideration for inconsistency with the Constitution, as well as the ordinarily assured ability of a citizen to effectively canvass its concerns as under the normal process set out above.
It is self-evident that this fast-track procedure is intended only for exceptional, rare situations where urgency in the national interest requires a shortening of the time period for the determination by the Supreme Court. Resort to this ‘fast-track’ procedure constitutes pressure on the Supreme Court, to arrive at a full and final determination in respect of a Bill which cannot be challenged in any court thereafter, in a very short period of time – and that too without the benefit of a fuller hearing of all concerned and affected citizens.
In such situations, the Attorney General is granted the ability to make submissions to assist Court. However, it should be noted that the Attorney General practically represents and defends the interests of the Government and cannot fairly or reasonably be expected to know or give full expression to the vital concerns and particular scenarios of affected and concerned persons in the course of submissions to Court on the Bill’s provisions. To place such a high burden on the Attorney General, is thus impractical, unworkable and unfair. For all of these reasons, it is most evident that resort to this fast-track procedure is only acceptable where there is a serious and irremediable detriment to the national interest, if the normal procedure for passage of legislation is adopted. Such instances are extremely rare and generally capable of justification based on precise compelling reasons for such haste to enact.
The Bar Association (BASL) has in the past, indeed through  the past decades and to earlier Governments , expressed serious concern at the need to ensure that the right of citizens to subject proposed legislation to pre-enactment judicial scrutiny in respect of concerns they entertain as to unconstitutionality of any Bills are respected and given effect to.
It has in the past, appealed that no government should resort to passage of legislation in a manner that unnecessarily or unfairly deprives:
a.    citizens of their ability to effectively petition the Supreme Court; and
b.    the enablement granted thereby to the Supreme Court to make its final determination as to constitutionality in due consideration of concerns of all affected/concerned citizens who thus petition.
However, we note with concern that nonetheless, a Bill titled: “Revival of Underperforming Enterprises and Underutilized Assets Act” was referred to the Supreme Court recently (in October 2011) for fast-track determination under Article 122 of the Constitution as a Bill ‘urgent in the national interest’.
No reason is discernible as to why the Bill could not have been placed on the Order Paper of Parliament for the citizenry to be able to exercise their right of pre-enactment review of the proposed legislation within one week of such placement (this procedure is itself quite quick). The institutions expressly covered by the Bill have been in their present state for years, and in the circumstances, any urgency that justifies negation of the full exercise of the right of pre-enactment review by concerned citizens/affected persons is questionable.
The resort in this instance to the fast-track procedure under Article 122 of the Constitution has effectively deprived the citizenry and affected persons/stakeholders of the possibility of taking steps to make representations to the Supreme Court in respect of alleged inconsistencies with the Constitution.
Only the representative of the Attorney General was able to make submissions to the Supreme Court when the Bill was taken up suddenly (with the public kept uninformed), despite the far reaching ramifications of the Bill. The Bar Association itself was unaware of the fact that such a Bill of tremendous implication was being referred to the Supreme Court, until after the Supreme Court had taken the matter up for consideration. Thus, serious questions as to the consistency of the Bill with the Constitution, have not been urged in the Supreme Court on behalf of even the directly affected citizens/stakeholders who are expressly identifiable from the two Schedules to the Bill, which sets out identified ‘Underperforming Enterprises’ and ‘Underutilized Assets’. There are also appear to be serious questions as to the workability of the proposed law in the manner formulated in the Bill which require to be addressed.
In the circumstances, we appeal to H. E. the President, the Government and all promoters of the Bill to take steps to ensure that the said Bill is withdrawn and not passed without opportunity of further careful scrutiny by the Supreme Court in a manner that enables affected stakeholders and citizens to effectively canvass their concerns as to the unconstitutionality of the Bill.
We further reiterate the need to ensure that in the interests of the Rule of Law and the democratic values of seminal importance to the Republic, no steps are taken in the future to introduce Bills in a manner that unreasonably prevents or reduces the space for fuller canvassing and consideration of issues pertaining to inconsistencies of Bills with the Constitution.

Rajeshwary

The Madam would make her fists into balls and hit out at my eyes every time she considered my work to be slow. The pain was unbearable,” said Nadarajah Rajeshawary (27).

Rajeshwary, a resident of Lewalawatte, Wanduraba, is  now receiving treatment at Ward No. 10 of the Eye Hospital in Colombo. Suffering from loss of sight in both her eyes, Rajeshwary says however that she is able to see hazy forms from one eye.
“I know that my condition is serious because my family tells me to learn to bear it all. I have undergone a traumatic time in Jordan, I don’t want the anguish to continue here. I want my sight back,” lamented the young woman. Rajeshwary who returned to Sri Lankan on March 19  said that the first eight months at the house she worked in was not eventful.
“I left Sri Lanka on May 27, 2009, they gave me my salary for eight months. I had to wake up at 4 a.m and complete the washing of the house, the washing of the clothes of their four children, the cleaning and washing of  bathrooms and all the walls, the work in the kitchen and arranging of the rooms. Then I had to be ready to accompany Madam to her mother’s house where I did the same work there. The Madam’s mother would give me to eat.  Then suddenly everything changed. I was given a meal only at night. Madam began to beat me at every turn. There were days when she would repeatedly beat me, hitting out at my eyes, pushing me down and beating the soles of my feet with poles, or hitting my head with wooden poles on countless occasions.  I could feel the blood trickle down my forehead and dribble to the floor. I would hold my head with one hand and wipe the floor with the other. When I complained of not being able to see, Madam would drop bits of paper on the ground and ask me to pick them up,” alleged Rajeshwary.
“My fingers and nails are smashed from the beatings that I received. One day the Madam was so angry that she took a nail clipper and pulled out the nail from my finger,” alleged Rajeshwary, pointing out a mutilated finger.
“We have lodged a complaint with the Bureau of Foreign Employment. My sister left to Jordan because she wanted to give a better life to her children. We did not know how much she had suffered. When she had been sitting alone at the airport, a Sri Lankan lady called Kumari from Mount Lavinia had asked her why she was seated alone. She told us that Rajeshwary  had been blinking and had looked blind and battered,” said Rajeshwary’s brother Sampath. “It was this lady who helped my sister to get to board the  flight  and  get to Colombo,” said Sampath, when contacted by The Sunday Leader.
Nadarajah Rajeshwary arrived in Sri Lankan without any of her dues.   “My sister can no longer see. She says she can feel faint shadows around her but is unable to distinguish what they are nor is she able to  identify any colours. She is also unable to see and recognise her daughters aged five and ten years of age,” said Sampath, speaking to  The Sunday Leader.
Complaining of an excruciating pain in the soles of her feet, this 27 year old now walks around with the aid of a helper. “I did not wear spectacles ever in my life, now there is no need to for even spectacles cannot help me, I am told. My greatest unhappiness is that I came back from Jordan with the hope of seeing my two daughters. I have heard them and hugged them, but I have not yet been able to see them, and I don’t think I ever will,” said Rajeshwary  in tears.
raneemoham@hotmail.com