Politicisation of once well-run corporations and their downfall

It was with the Mahajana Eksath Peramuna government of S.W.R.D. Bandaranaike that the nationalisation programme started with the Ceylon Transport Board being the first. When this was done it was a stupendous task as the persons who were handling it had to get all the buses belonging to the bus companies throughout the island along with their properties and all the workers. Those who were absorbed into this vast public transport organisation were known as Section 38 employees.

During the Dudley Senanayake government, G.G. Ponnambalam, who was the Minister of Industries, established two important factories, namely, the cement factory in Kankesanturai and the paper factory in Valaichennai. These two factories, later transformed into the Cement Corporation and Paper Corporation respectively were functioning well and saved a lot of foreign exchange for the country.

Then we got a gift of the Steel Corporation from the then Soviet Union which functioned from Oruwela. The talk at the time was that Russia had dumped some expired machinery in establishing this factory. I am not sure how far this was true.

The other semi-government ventures that were established were the Sugar Corporation in Pelwatte and Sevanagala, the Milk Board in Narahenpita, the Mineral Sands Corporation in Pulmoddai, the Salt Corporation in Hambantota, and the Ports Authority.

The most important and largest semi-government Board that was established was the Ceylon Transport Board (CTB). Prime Minister S.W.R.D. Bandaranaike himself handpicked Vere De Mel, a former civil servant, to be the first Chairman and with the help of other civil servants such M. Rajendra and Edwards, they were able to run the affairs of the CTB efficiently.

Asia’s biggest passenger transport organisation ran so effectively and efficiently from day one that even the owners of the then well-run bus companies such as the South Western Bus Company were flabbergasted as to how it was done.

However, with changes of governments at various times the organisation was politicised and gradually the rot set in. Politicians wanted make the CTB an employment base to get their henchmen in at various levels. Then there were far too many employees and this plus the lethargy of employees resulted in the downfall of the CTB.

The Ports Authority too had to face this same fate. Once when an MP from the Eastern province was assigned the portfolio of shipping, he filled the Ports with constituents from his electorate and the Ports Authority did not make any profit as the salaries and overtime payments were so high.

When the Paddy Marketing Board (PMB) was established with M.J. Perera as its first Chairman, it was doing a good job, buying all the paddy harvested at a price that helped the farmers who toiled hard to get a good harvest. But later on, the PMB was so ineffective it could not buy the paddy that the farmers had harvested at a reasonable price as their overheads were high.

Politicisation of these once well organised and functioning Corporations have been ruined, some beyond resurrection.