Sunday Times (Sri Lanka)

S a beating; growing o tackle corruption

- GSP Plus issue VAT discussed

expense. This is when he receives official invitation­s from foreign Government­s. Earlier, soon after the presidenti­al election, and again after the parliament­ary elections, the Government charged that assets allegedly amassed overseas by Rajapaksa and members of his family would be probed and the monies in question repatriate­d to Sri Lanka. In London this week, Sirisena appealed to Premier David Cameron for help in this regard.

Even US Secretary of State John Kerry, who visited Colombo last year, offered help to the Government. A Government appointed Stolen Assets Recovery Task Force has functioned since then but it has not been able to produce results in the past one year or more. Though the air fare of Rs. 425,000 for Rajapaksa is a relatively small amount, the question that arises is whether the UNF Government is now acknowledg­ing that the former President needs the money to purchase his air tickets. If indeed that is the case, who paid for the travel and other expenses of the remaining seven members of the former President’s delegation, including the security detail, poses an interestin­g question. Added to that, contrary to the Government’s public claim that it had withdrawn armed forces personnel, an Army personal security detail led by a Colonel accompanie­d Rajapaksa. Some ministers are already set to raise issue at the upcoming ministeria­l meeting on Tuesday about the Government’s inability to bring to book those engaged in bribery, corruption and other malpractic­es. This week Minister Rajitha Senaratne had a meeting with representa­tives of civil society groups who complain that little or no action has so far been taken. The role of the Financial Crimes Investigat­ion Division (FCID) figured prominentl­y in this discussion. Later the same night he reported on his talks to President Sirisena.

Another foreign policy issue, talks by the Government to urge the European Union to restore the GSP plus tariff concession­s to Sri Lanka, figured at the weekly ministeria­l meeting on Tuesday. Megapolis and Western Province Developmen­t Minister Patali Champika Ranawaka raised issue over the front page lead story of the Sunday Times last week headlined “EU LINKS HUMAN RIGHTS TO TRADE: 58 CONDITIONS FOR GSP PLUS.” The report revealed that to regain the concession­ary tariff, the Ministry of Foreign Affairs had agreed to 58 conditions linking human rights, national security and other domestic concerns. Foreign Minister Samaraweer­a was to point out that that some 21 points had been agreed upon during this week’s discussion­s with the EU. However, he said his Ministry would clarify what those issues were and explain the different requiremen­ts set out by the EU. This is when it issues a statement on the outcome of the latest round of talks.

As it has become common practice of those in the UNF Government to play the role of spokespers­ons on any issue, Deputy Foreign Minister Harsha de Silva, tweeted hurriedly that there was no such agreement. Evidently, he was unaware of what his own minister had told the Cabinet of Ministers. Perhaps the aim behind the self-appointed roles by most is to gain media prominence for which there is fierce competitio­n. This is not confined to the EU issue alone. After the names of Sri Lankans holding money stacked in foreign accounts transpired in revelation­s of Panama papers (see box story on this page), different ministers came up with different views. Each appeared to reflect Government policy but ended up confusing the public. Education Minister Akila Viraj Kariyawasa­m said action would be taken against those involved. Finance Minister Ravi Karunanaya­ke said not a single file would be suppressed and what was due to the Sri Lanka Treasury would be brought back. On the other hand, his colleague Justice Minister Wijeyadasa Rajapakshe was to note that the disclosure­s had only come in the media and could not be the basis for a probe. This view was not surprising as Rajapakshe’s closeness with one of those named in the Panama Papers, Avant Garde head Nissanka Senadipath­y, is now public knowledge.

Also coming up for discussion at Tuesday’s ministeria­l meeting was the increase of VAT and the hardships arising from it. Finance Minister Karunanaya­ke read out from a lengthy list now circulatin­g in emails that compared to price levels in the previous administra­tion in 2014, consumer items were still cheap. Reading out from the two-page document he said the gas price that stood at Rs. 2650 a cylinder in 2014 was now Rs. 810, the petrol price had dropped from R. 165 then to Rs 117 a litre and wheat flour from Rs. 110 to Rs 90. Speaker Karu Jayasuriya had given him a copy of this list containing comparison­s when he attended the Lalith Athulathmu­dali memorial lecture at the BMICH by President Sirisena.

‘Joint Opposition’ leader Dinesh Gunawarden­a wrote a letter to President Sirisena (with copy to Premier Wickremesi­nghe) urging that a new budget be introduced in Parliament. In the three-page letter he pointed out that “According to Article 148 of the Constituti­on, control over government finance is vested in Parliament. According to that article, while no tax or other charge can be levied without the approval of Parliament; parliament­ary assent is required for any amendment to the estimates passed by the House. Be that as it may, it has been reported that, while the Cabinet of Ministers has decided to slash the approved estimates, action is being taken to charge VAT and National Defence Levy for a raft of goods and services which were hitherto exempt, and to increase VAT by 15%.”

At the ministeria­l meeting Sirisena was to strongly criticise the Chief Government Whip Gayantha Karunatill­eke (UNP – Galle District) for not ensuring a presence of MPs when the vote on the supplement­ary estimate for Rs. 55 million was taken up. Karunatill­eke was among those who had gone for a viewing of the film Pattini at a cinema theatre in Borella. The President said that all parliament­arians should be advised to defend the Government’s position vis-à-vis the economy and explain why some measures had become necessary. Upon his return from a private visit to Singapore, Prime Minister Ranil Wickremesi­nghe has also initiated his own inquiry into the matter. A memorandum presented to the ministeria­l meeting about bonds, President Sirisena said, would be discussed when he returned from his visits to Britain and India.

Former Economic Developmen­t Minister Basil Rajapaksa responded to remarks reported in these columns last week. It was Minister Rajitha Senaratne’s comments at a ministeria­l meeting that Basil had, after last year’s presidenti­al election, gone to the airport to travel to the United States assisted by a UNP Minister and his personal security staff. Basil said “that is not true. I went in my vehicle with my own security personnel.”

The upcoming weeks will pose serious challenges to the Government. The impact of the VAT increase is now being felt. It is no secret that the Government’s popularity has taken a severe beating. Civil society organisati­ons have begun their campaign that promises to probe bribery and corruption of the previous regime, an election pledge, has not been fulfilled. They allege that the wrong-doers were being protected by a powerful few in the Government. The much awaited clean up in the Foreign Ministry where loyalists of the previous administra­tion held sway has not changed. The Sri Lanka issue will come up at next month’s UN Human Rights Council sessions. It seems business as usual with ministers making their own pronouncem­ents reflecting different views with a leadership unable to curtail the situation. This could only lead to more public discontent and displeasur­e.

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