Questionable FDIs, Money Laundering & EU ‘Blacklist’
Amrit Muttukumaru
Hard on the heels of the top headline news item ‘Smooth start for FDI: Govt.’ in Sri Lanka’s only stand-alone business journal ‘Daily FT’ on March 20 giving pride of place to a purported “$ 3.85 billion investment for an oil refinery in Hambantota” where the Sultanate of Oman is to have a 30% stake comes the DENIAL from Salim al-Aufi, Under-Secretary in Oman’s Ministry of Oil and Gas by stating “It came as news to me, I don’t know who is signing the cheque for $ 3.8 billion.” Intriguingly the Oman denial next day in the ‘Daily FT’ did not receive the prominence anywhere comparable with the controversial investment story! What does this convey about our businessmen controlled media?
The remaining 70% stake is reportedly held by Silver Park International Pvt Ltd the “Singapore investment vehicle owned by India’s Accord Group”. The question arises whether the ‘Accord Group’ which does not even have a significant web presence has the resources to have a 70% stake in a ‘$ 3.8 billion’ oil refinery? ‘Accord Group (India) Pvt Ltd’ which does have a web presence claims to be an “executive search firm”.
Despite Reuters reporting that ‘Silver Park’ was “registered in Singapore” as recently as June 2017, ‘Silver Park’ claims it is “an international oil and gas refinery company spread in all over the world”. This is contradicted by Reuters stating “The refinery will be Chennai-based Accord’s first foray into oil refining”. Will the BOI shed clarity on this discrepancy?
It is alleged that three of Silver Park International’s four directors are family members of controversial Tamil Nadu senior politician S. Jagathrakshakan.
A Google search indicates that the address of Silver Park International Pte. Ltd: 18 Roberts Lane, #03-01, Goodland Building, Singapore 218297 is the address of Sigma Corporate Solutions Pte Ltd. and that Sigma offers ‘virtual’ office and other such facilities from this location. A further Google search indicates there are many companies that use the same address as ‘Sigma’ for correspondence purposes.
The BOI has now shifted the goalposts from Oman’s Oil & Gas Ministry to Oman Trading International also said to be owned by the Sultanate of Oman.
The Board of investment (BOI) falling under the Ministry of Development Strategies and International Trade went gung-ho at a news conference on this purported “$ 3.85 billion” FDI. The Cabinet Minister responsible for the BOI is former UNP Chairman, Malik Samarawickrama a close associate of PM Ranil Wickremesinghe.
Volkswagen & Tyre FDIs
One wonders whether this is a replay of the much hyped 2017 Volkswagen vehicle assembly plant in Kuliyapitiya which turned out to be a hoax. Those who hyped the Volkswagen assembly plant are largely the same persons now hyping the purported oil refinery in Hambantota. There was even a “ground breaking ceremony” for the Volkswagen plant.
Even the earlier 2016 $75 million tyre manufacturing plant in Horana is mired in controversydue to its promoter’s alleged involvement in controversial business dealings under the Rajapaksa administration. This case brings into focus the cosy relationship between competing politicians and the raison d’être why competing administrations are reluctant to hold wrongdoers accountable.
Although the tyre manufacturing plant is held out by BOI to be a joint venture between the Sri Lankan Dubai based promoter Nandana Lokuwithana and world renowned Italian tyre manufacturer Marangoni S.p.A., this appears to be not factual. The Marangoni website does not include Sri Lanka in its global network.
Will BOI clarify the allegation in the ‘Economy Next’ website that the sole Marangoni connection is “to sell old equipment in a closed plant to Ceylon Steel Corporation”. The Chairman and owner of Ceylon Steel Corporation is Nandana Lokuwithana who is the promoter of the tyre manufacturing plant in Horana.
