Police OCD housed in decaying building at centre of controversy
The Police Department’s Organised Crimes Division (OCD) is housed on the fourth floor of the former ‘Vilasitha Nivasa’ in Colombo 6, an old building in dire need of renovation.
There is no elevator; the lower floor floods when it rains. Each level is occupied by smaller sections of the Police De- partment. A smell of urine combined with disinfectant emanates from toilets as one climbs up the dirty stairs.
A visit to the OCD on Friday showed the division was all but deserted. Somebody was pounding at the keys of an oldfashioned typewriter. The floor is shared with two other divisions: Human Rights and Research and Planning. The OCD, with its yellowing curtains, is now at the centre of a raging controversy. On November 6—two nights after they followed higher orders and obtained a search warrant to raid a small casino in Union Place— 23 of its police officers were transferred out en masse. Only its chief, SP T. Ganeshanathan, and its officer-incharge, Inspector K C P Abeyratne, remained.
By Friday, 16 days later, just three reserve policemen from the Police Headquarters Crime Division had been assigned to the OCD. While independent sources confirmed this, Police Spokesman SSP Ajith Rohana insisted that the Division has now been given “around 15 policemen” and was functioning again. There was no evidence of such numbers at the OCD last week.
The spokesman also maintained that, regardless of the timing, the transfers were not connected with the November 4 raid of the Salaka “Ruchino” casino. Denials have done nothing to quell the speculation. The names of a garrulous minister and a prominent Defence Ministry official continue to be mentioned in internet reports on the incident. The latter has said he has no connection with Salaka.
The raid has raised broader issues about the Government’s gaming policy. A large number of casinos operate freely within the Western Province. Four of them are owned by two of the country’s richest businessmen. Yet, it is Salaka— with its one table and three packs of cards— that the authorities busted four times this year.
Apart from Salaka, the police have raided only one other casino in Colombo this year. On June 28, OCD officers went into the Red Star in Bambalapitiya and arrested 80 clients and three employees.
Salaka was targeted again on November 17, this time by Slave Island police. The case appears porous. Ten clients were arrested but no employees. “The employee, I think, escaped,” said SSP Rohana. Police found “about 30,000 rupees” in the hold, a strikingly small stash. And none of the suspects have yet been charged. The spokesman said they are due in court tomorrow, a full week after the incident.
Police Department sources claimed the second sting operation was a “cover-up”. “The Department was getting so much criticism over the transfers of the 23 policemen that the IGP (Inspector General of Police) ordered a second raid in an effort to restore the reputation of police,” said one authoritative source.
Ironically, the last operation came three days after Australian casino mogul James D Packer told the Commonwealth Business Forum how Sri Lanka could benefit from his integrated resort, complete with a high-end casino. This and other similar projects are being set up under the provisions of the Strategic Mixed Development Projects Act of 2008.
But unless the Government repeals the Gaming Ordinance of 1890 that makes “keeping, permitting to be kept, or managing a common gaming place” an offence, police are empowered to raid all of them. Clients, too, are liable to be fined a handsome sum of Rs. 100 each.
More casinos are now joining the strategic mixed development projects pile. Mr. Packer’s local partner, businessman Ravi Wijeratne, said on Friday that he was confident their resort on D.R. Wijewardene Mawatha will come through. John Keels Holdings will have its own an integrated resort in Justice Akbar Mawatha, backed by rival businessman Dhammika Perera.
Both projects were gazetted for final Parliamentary approval but withdrawn in October for revision. It is not known what changes will be introduced or when. The opposition UNP has mounted a strong campaign against the generous tax breaks that were granted.
Meanwhile, an Indian company called Delta Corp said last week that it has acquired property in Sri Lanka for a casino resort. Chairman Jaydev Modi is quoted as telling the Press Trust of India that the company is exploring the emerging Sri Lankan gaming market which is poised for rapid growth.
In July 2012, Sri Lanka’s Board of Investment announced the signing of an agreement with tourism developer Katana City Developments (Pvt) Ltd for the country’s “first large scale tourism zone”. The BOI said the project was being promoted by a consortium headed by Asian Resorts and Casinos Singapore (ARC).
The projects are streaming in. But the regime has yet to introduce a vital regulatory framework to govern the gaming industry. There are no guidelines, no deterrents. Casinos are still illegal and the Casino Business (Regulation) Act of 2010 is ineffective unless the minister—whoever it might be—drafts regulations.
The Government consistently cites Singapore’s success with integrated resorts as a reason for introducing the concept to
Sri Lanka. In 2005, that government changed its longstanding policy not to allow casinos in Singapore. Two integrated resorts were permitted at Marina Bay and Sentosa.
Before these went ahead, however, Singaporean Prime Minister Lee Hsien Loong read out a 14-page statement in Parliament justifying the policy change. He outlined comprehensive measures to minimise the social impact of casino gambling. Singapore even set up a national framework to address problem gambling.
“...operators want to come to Singapore because of our reputation for law and order, clean government and strict enforcement,” the Prime Minister said. “They want to operate in a reputable jurisdiction, so as to enhance their own reputation and satisfy their regulators in their home countries.”
Sri Lankan Cabinet sources now say the Government is drafting Singaporestyle regulations for the gaming industry. These are yet to be released, even in draft form.