Millions splurged on failed 2018 Commonwealth Games bid

Despite eventful lastminute lobbying and a close contest, Hambantota received just 27 votes, while games-ready Gold Coast was endorsed by 43 Commonwealth Games Federation (CGF) members.

Private companies, many listed on the Stock Exchange and accountable to Shareholders, splurged millions of rupees on the previous administration’s failed bid to host the 2018 Commonwealth Games in Hambantota, it was disclosed in Parliament this week.

Some of these payments--deposited into a Bank of Ceylon current account belonging to CWG Hambantota 2018 Pvt Ltd-- were made in 2012- 13, well after Sri Lanka’s bid was rejected in favour of Gold Coast, Australia. Together, the companies contributed Rs 519 million, while the State sector, led by the Ministry of Sports (Rs 110 million) pumped in Rs 190 million.

The details were revealed by Public Enterprise Development Minister Kabir Hashim, in response to a question raised by JVP MP Nalinda Jayatissa. CWG Hambantota, a private entity, was floated in 2010 to handle the costly campaign.

It was liquidated only in May 2015, after the new Government assumed power. The bid was rejected in November 2011. Among the financial supporters of the campaign was Perpetual Asset Management (PAM), chaired by Arjun Aloysius.

In March 2011, PAM donated Rs 15 million to CWG Hambantota. However, Environmental Resources Investments (ERI) PLC, a public listed company, was the most generous benefactor with a contribution of Rs 75 million in 3 instalments between April 2011 and May 2012.

ERI attracted bad press in September 2011, when the Securities Exchange Commission of Sri Lanka fined it Rs 10.4 million for non-dis- closure and dissemination of misleading information, particularly in respect of certain related party transactions and cross- border investments. Anilana, which operates hotels, resorts and retreats around the country, made the second largest contribution of Rs 50 million in May 2011. It too, is a listed company.

Anilana’s Managing Director Asanga Seneviratne, who founded Anilana Hotels & Properties Ltd, and is the President of Sri Lanka Rugby, is a close ally of the Rajapaksa administration, while Lanka Orix Leasing Co. (LOLC) paid Rs 22 million in 3 instalments, of which 2 were in April 2011, and the 3rd in January 2013.

D i a l o g Axiat a , A c c e s s Engineering, Brown & Co PLC, Softlogic Holdings PLC and Laugfs Holdings contributed Rs 10 million each. All are listed on the Stock Exchange. Senok Trade Combine gave Rs 5 million in August 2011, while Senok Automobiles gave another Rs 5million that month. Trillium Residencies paid Rs 7 million in November 2011, the month the bid was rejected.

A host of others coughed up sums of Rs 5 million, 4 million, 3 million and 1 million.

The date of the last payment is specified in documents submitted to Parliament, as February 2013, when a company named ESNA deposited Rs 1.5 million. In this manner, the account collected Rs 63 million from the private sector in May 2011, Rs 55 million in April and Rs 31 million in August.

Separately, an individual named Mahinda Fernando deposited Rs 17 million in November 2012, and another named M. C. P. K . Samarakoon shoveled in Rs 20 million in October that year.

Despite eventful last-minute lobbying and a close contest, Hambantota received just 27 votes, while games-ready Gold Coast was endorsed by 43 Commonwealth Games Federation (CGF) members. The CGF described Sri Lanka’s bid as “largely virtual” and offered medium to high risk. Sri Lanka took a huge delegation of 160 to the Caribbean, well ahead of the scheduled vote on November 11, 2011. Aboard the chartered plane were politicians, businessmen, cricketers, athletes, actresses, dancers and chefs. In contrast, Australian delegation comprised 20 members.

The bid to host the Games in deeply rural Hambantota was only based on an elaborate dream. The proposal was conjured out of thin air by Namal Rajapaksa, the former President’s sporty oldest son, who was being groomed for leadership at that time. The Organising Committee was co-chaired by then Minister of Sports, Mahindananda Aluthgamage and then Governor of the Central Bank, Ajith Nivard Cabraal.

They spent millions of rupees on pmplegacy- a leading sports events consultancy firm- to help promote the Games bid.