WikiLeaks: Family-Run Airline Manager Vass Links To Financial Impropriety
October 20, 2014
“The Government of Sri Lanka (GSL) is planning to launch a state-run airline aimed at providing low-cost travel for Sri Lankan migrant workers and tourists to the Middle East and India. The budget carrier, apparently conceived and advanced by close advisors to Sri Lankan President Mahinda Rajapaksa, is to be called Mihin Lanka, after the President (short for Mihindu, which is the Pali name for Mahinda). The non-transparent way in which the President’s coterie has advanced the airline has elicited extensive controversy.” the US Embassy Colombo informed Washington.
Mahinda and Vass
The Colombo Telegraph found the related leaked cable from the WikiLeaks database. The cable dated March 09, 2007 was written by the US Ambassador to Colombo,Robert O. Blake.
The US ambassador wrote “Critics argue that the carrier’s lack of transparency stems from its leadership – a handful of politicians and advisors close to the President. According to a Civil Aviation Authority gazette, the Board of Directors of Mihin Lanka will be composed of Defense Secretary Gotabaya Rajapaksa(the President’s brother), Finance SIPDIS Secretary P.B. Jayasundera, Air Marshall Roshan Goonetilake, and Presidential Coordinating Secretary Sajin de Vass Gunawardena. Gunawardena, who has been appointed ‘Accountable Manager in charge’ of the airline, has been linked to a number of past allegations of financial impropriety involving government procurement.
“The airline is to be a fully government-owned company utilizing state funds. The initial capital contribution is estimated at around 500 million Sri Lankan Rupees (approximately USD 4.6 million), with an estimated total cost set at Rs. 1.5 billion (approx USD 13.8 million). The government initially intended to tap the state-run Foreign Employment Bureau and the Employees’ Trust Fund for start up capital in the venture. After a strong public backlash supported by negative media reporting against using public funds, the government may be seeking financial backing elsewhere, but has not publicly identified possible alternate sources.
“President Rajapaksa sacked Minister of Ports and Aviation Mangala Samaraweera, who had opposed the Mihin Lanka arrangement (ref A). Rajapaksa did not appoint a replacement for Samaraweera, instead keeping the Ports and Aviation portfolio for himself. On February 17, Samaraweera, who had also served as Rajapaksa’s Minister of Foreign Affairs until he was removed in the January 28 cabinet reshuffle, sent a letter to the President listing a series of grievances (ref B). In this, Samaraweera stated his strong disapproval of the Mihin Lanka project due to the planned use of public funds and the rushed approval process that circumvented normal administrative and financial regulations.”
Placing a comment the ambassador wrote; “Civil Aviation Authority officials and representatives of Airport and Aviation Services Ltd. appear less than enthusiastic about the Mihin Lanka venture. In fielding Post’s queries, they seemed cautious and uncomfortable, repeatedly stating that they were not aware of many key operational details. Post also notes that local media coverage of the Mihin venture no longer mentions any of the earlier controversy around the airline. In fact, coverage disappeared entirely for about two months, and only resumed this week with brief and uncritical coverage of the test flight described in para 3. Many Sri Lankans view the Mihin Lanka venture as a sign that the populist and socialist President Rajapaksa may be tempted to practice crony capitalism if he can avoid press, opposition, and regulatory scrutiny.”
