Frantic talks at Finance Ministry but issue of mass resignations unresolved

Despite two frantic rounds of discussions between the Treasury Secretary and Finance Ministry officials to tackle the problem of the officials' refusal to sit on dozens of boards of state agencies, the issue remained unresolved at the end of the week.

At least 80 officials last week sent in resignation letters en-masse, stepping down as ex-officio members of directors and tender boards of public enterprise institutions. They cited fears of victimisation owing to numerous political decisions taken in the running of those bodies.

Following the mass resignation and the embarrassment caused to the Government, Prime Minister Ranil Wickremesinghe told Parliament the officials were free to step down and replacements would be made. However, he had at the same time instructed Treasury Secretary R.H.S. Samaratunga to discuss issues with these aggrieved officials and persuade them to stay on.

While Chairmen and CEOs appointed to the state institutions are political appointees, state officials are appointed as ex-officio directors on the boards to represent the Treasury but they too have had to face FCID investigations often due to having to follow instructions by the political appointees, a senior Finance Ministry official said.

Some of these public servants have been called to the Financial Crimes Investigations Division ( FCID) and had to make statements. Institutions

in which Treasury officials are appointed as directors include the Ports Authority, SriLankan Airlines, Ceylon Petroleum Corporation and the Ceylon Electricity Board.

Finance Secretary Dr. Samaratunga, earlier this week, held two rounds of discussions over their grievances but the meetings ended in a deadlock as some of the issues raised by officials are yet to be resolved by the Government, the Sunday Times learns. It is also learnt the aggrieved officials have not withdrawn the resignation letters given by them to the Treasury Secretary and continue to refrain from serving on these boards. A letter was also sent to the Premier by the aggrieved officials clarifying their position and informing him that they have no intention of sabotaging government activities, one senior official said.

He disclosed that the Treasury Secretary has promised to bring all their grievances to the notice of the PM to find some redress and common ground.