CORRUPTION WATCH

Ministers, Govt. employees consume 75% of fuel used

FMM Faizal — Thu, 01 Jan 1970 00:00:00 +0100

By Kelum Bandara and
Yohan Perera
The main opposition UNP charged in Parliament yesterday that 75% of the fuel used in the country was consumed by Ministers and the public sector employees while state institutions owe Rs. 44 billion to the Ceylon Petroleum Corporation (CPC).

These disclosures were made in the House yesterday by the Kurunegala District UNP MP, Dayasiri Jayasekera and Colombo District MP, Ravi Karunanayake during the debate on the regulation on introducing a Cess levy for unfinished leather goods.

Mr. Jayasekera said only 25% of the fuel imported to the country was consumed by the general public. “This vicious cycle has to be changed,” he said.

He said the real rate of inflation today is 39% and the government introduced a new price index to cover up this picture.

The UNP MP who also emphasised on the GSP+ issue said the month of December would be crucial for Sri Lanka as the European Union would decide on the extension of GSP+ concessions for garments around that time.

He said the government has to fulfil certain activities to uphold human rights. This he said through implementing the Optional Human Rights Protocol. Mr. Jayasekera said the UNP was ready to support the government to implement and back it at a referendum.

Minister of Export Development, G. L. Peiris who responded said the Supreme Court had informed that Protocol has to be implemented by a two-thirds majority in Parliament while it has to be approved by the people through a referendum.

The government also said the European Union had not requested Sri Lanka to uphold this protocol.

Mr. Ravi Karunanayake said all government institutions owe a total sum of Rs. 44 billion to the CPC. He said Mihin Lanka alone owes Rs. 600 million.

Sonar case hits stormy waters

FMM Faizal — Thu, 01 Jan 1970 00:00:00 +0100

Sonar case hits stormy waters

Mahinda Rajapakse, Gotabaya Rajapakse, Wasantha Karannagoda and Saliya Wickremasooriya

By Ranjith Jayasundera

The Sri Lanka Navy and the SLPA are at loggerheads over a recent sonar procurement, and the nature of the dispute could compromise national security.

ÿWe are highlighting the matter in the national interest, so that the President, as Defence Minister, can take appropriate action, and not earn the ire of being branded as 'traitors' by Defence Secretary Gotabaya Rajapakse.

In fact, at the personal request of Navy Commander, Rear Admiral Wasantha Karannagoda, we have omitted significant portions of this story that in his opinion would have provoked national security considerations.

The navy did not take kindly to The Sunday Leader's expose of Rear Admiral 'Karannagoda's sonar story' on May 18 where we exposed details of how the navy had acquired a sonar swimmer detection system from British defence giant Qinetiq behind the back of the SLPA after being unable to even complete its installation outside the harbour during trials.

Down SLPA's throat

This newspaper first broke the story of the navy's plan to force the Qinetiq system down SLPA's throat on March 25, 2007, in an article wherein we highlighted the many reasons that the Qinetiq 'Cerberus 360' sonar system was unfit for guarding Sri Lanka's harbours.

Mihin, BoC directors face court action

FMM Faizal — Thu, 01 Jan 1970 00:00:00 +0100

Mihin, BoC directors face court action

Lalith Weeratunga, Lalith Weeratunga
and Sajin Vaas

Gota signed declaration to BoI on
Mihin investment

All directors of Mihin answerable to court

BoC board under public scrutiny

Public interest litigation against
Mihin and BoC directors

By Ranjith Jayasundera

Following The Sunday Leader's exclusive expos last week of the Bank of Ceylon's virtual dumping of one billion rupees of public depositors' funds into the defunct Mihin Lanka, several public advocacy groups have begun to prepare to take legal action against the dire

Mihin Lanka swallows Rs.3B in 10 months

FMM Faizal — Thu, 01 Jan 1970 00:00:00 +0100

Mihin Lanka swallows Rs.3B in 10 months

(Lanka-e-News, 2008 March 15, 9.00 PM) Mihin Lanka airline has accounted a massive loss of Rs. three billion within the eleven months since inception.

The government launched the airline amidst opposition's protests with investments acquired in dubious ways. Mihin Lanka was launched on 2007 April 24 to provide budget flights to Sri Lankan migrant workers to Middle East .

Mihin Lanka business plan shows that the state leaders, their entourages and the passengers to India and Middle East were targeted by Mihin Lanka. Dubai, Trivandrum and Trichy were the initial destinations of the airline launched with a single A-320 airbus.

The way the US $ 7.5 million (Rs. 750 million) capital was acquired to launch the airline was controversial. State funds were utilized as capital whilst it was questioned in parliament as well. The director board of Mihin Lanka is comprised of the President's relatives, friends and the allies of the government. They are the Defense Secretary and brother Gotabhaya Rajapakse, Air F orce chief Air Wise Marshall Roshan Gunathilaka and Presidential Secretary Lalith Weerathunga. President's Coordinating Secretary Sachin Vass Gunawardhana, who has no experience as a CEO of any company despite an airline is the CEO of Mihin Lanka.

Mihin Lanka faced no difficulties to acquire capital from state banks, Employee's Provident F und and Treasury since it looked as a pet project of the President. Mihin Lanka is in debt Rs. 1.5 billion each to Bank of Ceylon and People's Bank, Rs. 500 million to Lanka Puthra Bank and Rs. one billion to Treasury. Mihin Lanka will never be able to pay back those loans. Its operational costs have now recorded over Rs. three billion.

Mihin Lanka has now become the biggest debtor of Lanka Puthra Bank that was established to encourage the small and medium scale enterprises. The loan has been provided without a surety.

An airline should possess at least one aircraft to apply for the license for an airline. Mihin Lanka acquired a more than 25-year old F -27 aircraft from Expo Aviation under a dry lease for this purpose.

The monthly rental of the A-320 airbus acquired from a Bulgarian budget airline under a wet lease is US $ 850,000 (Rs. 87 million). Mihin Air violated the airline ethics by initiating operations with aircrafts that are older than 10 years.

The third aircraft acquired under wet lease is an A-321. The aircraft which was around 10 years old was leased from a Turkey airline. The monthly rental is Rs. 88 million. Another dubious US $ 80 daily additional allowance is paid to the 21-member Turkey crew.

Govt. reluctant to stop CEBPAYE tax scam
There are others who do so – CEB
by Shamindra Ferdinando

Despite the Auditor General pointing out the irregularity in the CEB workers being exempted from PAYE tax, the government hasn’t acted on the AG’s findings and recommendations.

Power and Energy Minister John Seneviratne yesterday said that a three-member committee headed by an Additional Secretary to his ministry had been appointed to scrutinise the entire gamut of issues including the payment of workers’ PAYE tax by the CEB and an assortment of allowances made available to the workers.

Seneviratne said that the PAYE tax issues had been discussed at the Cabinet and Committee on Public Enterprises (COPE).

Although COPE directed an immediate halt to the debt-ridden CEB paying a tax which should have been paid by the workers, the CEB bosses had ignored that directive, JVP MP Piyasiri Wijenayake told The Island.

Seneviratne said the CEB had pointed out that it wasn’t the only government institute to pay PAYE tax on behalf of the workers.

The Auditor General has pointed out that some CEB workers received tax returns from the Inland Revenue Department despite their PAYE being paid by the institute. Although 22 workers had been named by the Auditor General, the CEB hadn’t taken action against them, the sources said.

According to Seneviratne, the employees’ PAYE tax had been paid for several years and a unilateral move to suspend the privilege could trigger a strike.

Sri Lankan government divulges details of extravagant award ceremony

FMM Faizal — Thu, 01 Jan 1970 00:00:00 +0100

Sri Lankan government divulges details of extravagant award ceremony
Friday, February 22, 2008, 12:54 GMT, ColomboPage News Desk, Sri Lanka .

Feb 22, Colombo: Sri Lankan government chief whip, Minister Jeyaraj Fernandopulle yesterday had to give away information on an extravagant award ceremony held at public expense.

Responding to an inquiry made by JVP parliamentarian Ranaweera Pathirana at the House, the Minister revealed that the government had spent 24.5 million rupees on Livestock Award Ceremony held recently at the Bandaranaike Memorial International Convention Hall (BMICH). Furthermore, the Minister revealed that the organizers of this ceremony had spent 1.04 million rupees for the media briefing on the ceremony and additional 12.7 million rupees for the notices and posters alone.

The JVP MPs criticize the government for wasting such a huge amount of public money for an insignificant event that barely caught the public interest at a time when the people are eking out amid ever-increasing cost of living.

SRI LANKA: A fatal blow to Sri Lanka 's Bribery Commission

FMM Faizal — Thu, 01 Jan 1970 00:00:00 +0100

SRI LANKA: A fatal blow to Sri Lanka 's Bribery Commission

FOR IMMEDIATE RELEASE
AHRC-STM-044-2008
February 21, 2008

A Statement by the Asian Human Rights Commission

SRI LANKA: A fatal blow to Sri Lanka 's Bribery Commission

While the 17th Amendment to the Constitution is being ridiculed by the government the reasons for the fear of the appointment of the Constitutional Council and the independent commissions has been confirmed in the most recent incident of the transfer of the Director General of the Bribery Commission with the obvious intent to stop the filing of indictments by the commission and to subvert the work of the commission altogether. The Asian Human Rights Commission has for a long period pointed out that the criminal justice system in Sri Lanka is being suspended in order to ensure impunity for those who are abusing power. The simple formula that the government is working on is this: stop investigations and get rid of independent prosecutors to ensure our survival.

In an unprecedented but not surprising move, Mr. Piyasena Ranasinghe, Director General (DG) of the Commission to Investigate Allegations of Bribery and Corruption (Bribery Commission) has been requested by the President to resign from the post. When he declined, the next day, he was transferred to the Presidential Secretariat without any specific function and an acting DG was appointed in his place.

The following are some relevant matters for consideration:

UNP, bombs govt. on alleged MiG cover-up

FMM Faizal — Thu, 01 Jan 1970 00:00:00 +0100

UNP, bombs govt. on alleged MiG cover-up

Opposition parties furious over removal of Bribery Commission DG
By Kelum Bandara and Yohan Perera.

The main opposition UNP and the JVP slammed the government yesterday for what they called the arbitrary removal of Bribery Commission’s Director General Piyasena Ranasinghe.

Opposition Leader Ranil Wickremesinghe asked parliament whether the removal of the Director General was part of an attempt to undermine the ongoing investigations into the infamous MIG deal following a complaint made by the opposition.

He said the government would not have been able to meddle with the affairs of independent commissions had the Constitutional Councils been functional.

“The government is delaying the reactivation of the Constitutional Council deliberately making unnecessary arguments only to resort to arbitrary actions,” he charged.

UNP MP John Amaratunge said the President had no powers to remove any person from independent commissions in such a manner.

Mr. Amaratunge also said he suspected if the move was aimed at scuttling investigation regarding the COPE and MIG deals.He charged that the government was attempting to run the commissions according to its whims and fancies.

“This is a major blow to good governance. In the absence of independent commissions, the government is trying to appoint their henchmen to top posts.

Similarly, they will appoint their henchmen as heads of police stations and try to rig future elections. The ground situation is being created for that,” he alleged.

JVP parliamentary group leader Wimal Weerawansa also said the government should stop the removal of independent commissions’ officials who are not prepared to act according to its dictates.

Mr. Weerawansa cited the removal of Mr. Ranasinghe as part of a dirty game.

“The government is deliberately delaying the reactivation of the Constitutional Council to get space to play such dirty games. We are trying to defeat terrorism to strengthen democracy. Yet there is no use in doing it while the democratic system in the South is being crippled in this manner,” Mr. Weerwansa charged..

Unprincipled school principal

FMM Faizal — Thu, 01 Jan 1970 00:00:00 +0100

Unprincipled school principal

By Kurulu Kariyakarawana

The woman principal of a girls’ school in Nugegoda was nabbed by Bribery Commission officials yesterday, while allegedly taking a bribe of Rs. 15,000 to admit a to child grade one.

The Commission’s Director Investigations, SSP Neville Guruge, said that the principal was arrested when she took the money at her office yesterday from two officials of the Commission.

He said that the complainants -- husband and wife, both of the Sri Lanka Army -- had gone to the school in order to admit their child to grade one. The school principal had demanded a sum of Rs. 20,000 to admit the child, and asked them to come with the money on the 21st. The couple had bargained and got the principal to reduce the amount to Rs. 15,000.

The couple had agreed to pay the money and then complained to the Bribery Commission, which had sent two officers to the school along with them.

“The suspect was arrested by the officials when the principal’s female peon took the money and left it on the principal’s table,” SSP Guruge said.

He said that the principal was to be produced in the Colombo Chief Magistrate’s Court today.

Now, AG reveals Health Ministry stamp scam 2008/02/22

FMM Faizal — Thu, 01 Jan 1970 00:00:00 +0100

Now, AG reveals Health Ministry stamp scam

By Don Asoka Wijewardena

The Postal Department of the Health Ministry is under investigation over the alleged misappropriation of Rs.1.8 million in stamps within an eight and half month period beginning January 1 last year.

The Auditor General’s Department has recently bared the fraud, a senior spokesman for the All Ceylon Health Services Union (ACHSU) said.

ACHSU President Gamini Kumarasinghe said that the Health Ministry was a bottomless pit of corruption. Calling for punitive action against the guilty, irrespective of their standing in the society, Kumarasinghe accused Health Minister Nimal Siripala de Silva of turning a Nelsonian eye to corrupt practices. He said that the ministry was yet to take any meaningful action to punish the suspects and recover the money.

A ministry official said that action would be taken against anyone found guilty of waste, corruption and irregularities.

Kumarasinghe said some employees of the junior grades, suspected to have been involved, had been transferred but the kingpins of the racket hadn’t been touched.

He said that the Auditor General’s department had identified all workers including the senior staff involved in the racket.

The minister’s failure to take action would mean that he approved of this fraudulent act, he said.

The union would shortly lodge a complaint with the Commission to Investigate Allegations of Bribery or Corruption, he said.

Kumarasinghe claimed that an officer involved in the internal investigation had informed the union that the ministry didn’t want the probe to continue.