Questions from Bribery Conviction of Presidential Chief-of-Staff

BY J.A.A.S.RANASINGHE-December 26, 2019, 8:30 pm
Productivity Specialist/Management Consultant.

The Bribery Commission should be applauded for the exceptional way it successfully prosecuted the former Chief of Staff of the Presidential Secretariat I.K.H. Mahanama, and former Chairman of State Timber Corporation Piyadasa Dissanayake, for soliciting a bribe of Rs. 20 million from an Indian businessman, in order to release the machinery and equipment belonging to Kantalai Sugar factory.

The Trial at Bar imposed 20 years rigorous imprisonment and a fine of Rs. 65,000/= on the first accused, Mahanama, 68 years of age with a public service experience of 35 years as a SLAS Officer, and a rigorous imprisonment of 12 years and a fine of Rs. 55,000/= on the second accused aged 63. In addition, the first accused was ordered to pay back the Rs. 20 million, the bribe he solicited to the State, in what was regarded as the country’s ugliest bribery case. According to reports, the total amount of the bribe they have solicited from the Indian businessman was said to be Rs. 54 million out of the total investment of US$540 million.

This being the biggest bribery case involving the senior most officers of the highest hierarchy of the former government, it has undoubtedly sent a chilling message to the government officials who resort to unethical practices that the law of the land, as far as the bribery and corruption is concerned do not condone under any circumstances. In imposing a harsh punishment and heavy fines, the Trial-at-Bar is reported to have stated that it compelled to impose heavy punishment as a deterrent so that others will think twice, before a heinous crime of bribe is committed.

It is not the intention of the writer to dwell with the bribery case in question. but to draw the unsavory unknown aspects relating to this bribery issue that have escaped the attention of the readers.

Elimination of Bribery and Corruption

It is in this context that I wish to draw the attention of the readers to a commitment made by the former President towards building a country free of fraud and corruption, as far back as February 2018, almost three months prior to the aforesaid bribery detection. According to media reports published in leading newspapers on 17th February 2018, he had sought the thoughts, ideas and support of the general public to build a widespread national movement against corruption, bribe, fraud, irregularities and waste, without putting his own Secretariat in order. As a matter of fact, a special meeting to discuss setting up of an action plan for elimination of bribery and corruption, coordinated by the Presidential Secretariat, was held at the Department of Government Information on February 13, 2018.

National Movement against Waste and Corruption (NMAWC)

Everyone was invited to join this program as a foundation of the force that stands against fraud and corruption, eliminating corruption, fraud, waste, bribery and malpractices and requested to send their valuable ideas to a movement called "National Movement Against Waste and Corruption" based at the Presidential Secretariat.

In response to this invitation, the writer too sent a valuable proposal in a detailed letter suggesting the installation of "whistleblower mechanism" in the public sector across the board, honestly believing that my suggestion would be wholeheartedly accepted for implementation. As bribery and corruption in the public section has blown up to dis-apportion ate proportions, I offered my services to His Excellency the President, to establish the whistleblowing concept in each government institution; so that employees, general public and other stakeholders can blow the whistle to the authorities concerned, no sooner an unethical deal is reported or observed. Having studied the successful implementation of whistleblowing concept in India and western countries, I honestly expected a response to my gesture by return of post. I also brought to his notice that my years of experience that brought positive results in the private sector having installed this mechanism.

Lo and behold, there was no response either to my email, the registered letter and repeated reminders I addressed to the Presidential Secretariat. Later my inquiries revealed that all my correspondence addressed to the Presidential Secretariat have landed on the lap of the Chief of the Staff. I had my serious doubts whether my proposal has even been referred to the so-called movement established by the President. Curiously, when I discussed the lackadaisical response I had to undergo with my colleagues, they sarcastically hinted that the Presidential Secretariat is the most corrupt, inefficient and lethargic institution, and that my proposal would not be acted upon or even acknowledged by the corrupt officials in this prime institution. However, I took solace in the firm belief that corruption and bribery is an evil endemic deeply rooted in the social fabric, especially in the public sector and that my intervention on the elimination of corruption and bribery was not probably forceful enough to draw the attention of the former President. Few weeks later, to my utter astonishment, the aforesaid Chief of Staff has been caught red-handed by the Bribery sleuths in the act of soliciting a huge bribe. It appeared that the former President lacked the gumption and initiative to review the progress of the movement he himself established with much fanfare and wide publicity to tackle bribery and corruption.

The question of corruption and bribery has been stressed ad nauseam by the Yahapalanaya administration even after the biggest bribery and corruption scandal at the Central Bank, and the Presidential intervention in calling for public proposal to face this evil, prompted intellectuals to pinpoint numerous ways and means to tackle this menace. At least the Presidential Secretariat should have followed the responses NMAWC received and appraised the Former President of any progressive action so far it has taken.

Neither the former President nor the Presidential Secretariat appeared to have taken any tangible measures on the proposals. Had the former President taken prompt action to institutionalize the "Whistleblowing" mechanism as a pilot project, initially in the Presidential Secretariat, the so-called embarrassment caused to the former President and the Public Service could have been nipped in the bud. I am of the firm opinion that a massive magnitude of bribery claims of Rs. 45 million, the first accused Mahanama initially canvassed, could not be singularly handled without the support of well-organized network, including that of the second accused. Had a whistleblowing mechanism been set in motion, inevitably one who was involved in the ring could have blown the whistle, prompting the President to take pre-emptive measures. Even now, it is not too late for the new President to publish the proposals it has received with the progressive actions it has so far taken to implement such valuable proposals for the information of the public.

CIABOC Response

In contrast, I received an unanticipated receptive from the Commission to investigate Allegations of Bribery and Corruption, when the Commission called for the views of the general public for the formulation of a national policy to eradicate bribery and corruption. I submitted a series of proposals, as well as paper articles I have published in the national newspapers and local and foreign journals for the last three decades to the Commission. Without any hesitation, they have acknowledged all my proposals with a laconic reply that they would be seriously considered at the policy formulation stage. Unexpectedly, I received an invitation to attend one of their workshops at the Mount Lavinia Hotel, and when I made my team’s presentation, to my utter surprise, the Director General of CIABOC temporarily suspended my presentation and introduced me to the audience, stating my series of proposals in response to their call have immensely benefitted them. However, such a recognition did not come from the Presidential Secretariat and it really killed my morale for involuntarily contributions I made to the country and the academic studies I have undertaken in this arena.

An Administration free from Corruption

His Excellency in his election manifesto has spelt out his vision in creating a corrupt-free public service in page 6 of the manifesto, in that he expects all government officials and politicians to be of high moral standing. This cornerstone of his governance warrants certain administrative mechanisms to be installed, if His Excellency’s high expectations are to be achieved. One such formidable intervention is the installation of a "Whistleblowing mechanism" across the board. Learning from the past experience of having successfully implemented this mechanism, with the able assistance of a onetime high-profile Chairman of the Ceylon Chamber of Commerce, in the Private sector, I could lend my support to institutionalize this preventive mechanism in the public sector to His Excellency, as this effort needs aggressive effort and training from Secretary to the lowest level of the hierarchy. It is also suggested that the SLIDA (Sri Lanka Institute of Development Administration) would introduce a new module into the curriculum of SLAS officers and new entrants, so that our efforts will bring tangible results over a period. What is needed is a paradigm shift in the thinking of SLAS personnel, to think out of the box in order to face emerging threats to the public service and hapless general public.

Sugar Industry

Sugar is considered one of the main food items consumed in Sri Lanka. Therefore, sugar production and price directly affect day-to-day life in the country. The annual per capita consumption of sugar in Sri Lanka is around 30 kg, and the total annual requirement of sugar in the country is around 600,000 tons. The country produces only 6% of the country’s sugar requirement and the balance of 94% is imported, incurring a colossal foreign exchange of Rs 50 billion annually. Thus, Sugar Industry being a thrust manufacturing industry, the reopening of the Kantale Sugar Industry was a bold decision, with the support of an Indian investor at a cost of US$ 540 million. At a time that the Treasury did not have financial resources to fund the construction of a public toilet conveniences, utmost care, attention and supervision should have been given by the previous regime to ensure that the proposed Kantale sugar project got off the ground without any hindrances.

The so-called ill-motivated corruption plan rudely engineered by Mahanama and thieves, cleverly took the then government for a right-royal ride and dissuaded Presidential Secretariat, Ministry of Lands, BOI, General Treasury etc., from poking their fingers into this bribery pie. The BOI which was responsible for bringing this massive foreign investment has not had the audacity to follow up this matter for the last three years, and inquire into the inordinate delay in getting off the project in time. The relevant agencies would have thought that the SLAS officialdom swiftly implemented the project proposal once the BOI and the Cabinet of Ministers had given the greenlight, and allowed the Mahanama and clan to drag their feet in order to work out a bribery deal.

At least, once the former Secretary to the Ministry of Lands moved out on retirement, his successor could have followed this matter allowing the investor to undertake the project without any harassment. How did Mahanama yield his unbridled authority once he took over the post of Chief of Staff of the Presidential Secretariat to such an extent, to dissuade his successor imposing unconscionable barriers? Had the BOI or the successor of Mahanama the decency of calling the investor in order to find out the delay in implementing the project proposal. The Presidential Secretariat has the Investigation unit ably manned by an efficient investigator, and it is moot point why the President did not order an investigation from this unit, considering the enormous benefits that the revival of the Kantale Sugar Project would bring to the country in general, and to the poverty driven marginalized Kantale farmer community in particular. This self-conflicted bribery wound engineered by Mahanama and the clan, causing an inerasable damage on the reputation of the SLAS community will take a long time to heal.

As the developing of the Sugarcane Industry will help rural farmers to uplift their socio-economic and living standards of the much neglected Trincomalee district, it is fervently hoped that the said investor is persuaded to revisit the project, as this sector will generate new employment opportunities in various supporting fields associated to the industry, including multiple categories of service providers. At least, the government ought to take a lesson from the setting up of the Pelwatta Sugar Industry as Buttala, Wellawaya and Monaragala adjacent towns had a miracle development from the Pelwatta Sugar Industry. In addition to the nuclear sugar plantation managed by the Pelwatta Sugar Industries, the out-growers, mainly farmers, had a good income by selling their sugarcane during Yala and Maha seasons. The Sugar Industry is a much-developed industry in India with modern manufacturing technology, and the new President is earnestly called upon to develop the sugar sector with the assistance of the Indian government or any foreign investor, in keeping with the assurance given in his election manifesto (page 46), which I enumerate below.

"Our policy position is that the country’s sugar needs must be met with domestically produced sugar. This would enable us to save substantial outflow of foreign exchange to import sugar.

The extent of land earmarked for cultivation of sugar cane will be expanded and high yielding sugar cane be introduced.

Immediate action will be taken to reopen Kantale and other sugar factories and private sector will be given incentives to commence new sugar factories.

Needs of sugar cane cultivation firms, in terms of water and technical knowledge will be provided and action taken to fulfil capital needs.

The writer with his close familiarity in the sugar industry stresses the point that the high-expectation of this His Excellency, the President, as it is explicitly enumerated in the election manifesto, involves a gargantuan task and it can only be accomplished by a high-powered professionals having an intimate knowledge in the sugar plantation and manufacturing industry. The two sugar plants are fairly old, currently operating below the installed capacity and the revival of the Kantale sugar factory is an urgent necessity with the involvement of a foreign investor, who can generously fund the installation of a modern factory with latest machinery and equipment, manufacturing process and commercial operations. The bribery scandal has obviously eclipsed the other issues and kept the people in the dark of subsequent developments.

Fiscal Stimulus

One of the most formidable means of stimulating economic growth in a sluggish economy like Sri Lanka is investments in heavy industries such as sugar industry. Foreign investors are reported to have fled the country thanks to Central Bank financial scandal, and the bribery episode in which Mahanama was instrumentally involved. It will be a Herculean task for the new President to bring in foreign investment in a context where the Sri Lankan economy has not yet fully recovered from the disastrous blows of an irresponsible demonetization exercise created by Mahanama and the clan.

(The writer could be contacted at