Is The Jamiathul Ulama A Bane On The Muslims Of Sri Lanka

By M. Zulkifli Nazim -March 6, 2013

M. Zulkifli Nazim

On 12th February 2013, at the TNL studios, where the debate between theBodu Bala Sena and the representatives of the Jamiathul Ulama, the General Secretary of the Bodu Bala Sena, Venerable Galagoda Aththe Gnanasara Thero, a very significant and valid remark was made, which caught the attention of the general public, where he referred to a specific financial problem faced by the Muslim community as  a result of them depositing their hard earned monies and life-savings with the Ceylinco Profit Sharing & Investment Corporation Ltd., (This includes the Ceylinco Global Profit Sharing & Investment Corporation too) where the members and representatives of theAll-Ceylon Jamiathul Ulama (ACJU)  were in the so-called Shariah Council and who are visibly missing from the scene now.  Where is the “halaal” aspect of this deception and what have they got to say now? He asked.

A statement very valid and well grounded in logic.

I would like to contribute something further to this.  When Ceylinco Profit Sharing and the Ceylinco Global Profit Sharing had their opening ceremonies to open their offices as well as their branches in various locations the main people on stage and who preached, spoke, encouraged and advocated to invest in these companies, were the members and representatives of the All-Ceylon Jamiathul Ulama (ACJU).

The majority of the Muslims generally and especially those in remote areas, did not know of Lalith Kotelawala, the Chairman, they did not know who K.A.S. Jayatissa, the Deputy Chairman was, but they knew and placed their full reliance and trust on the members and representatives of this All-Ceylon Jamiathul Ulama whom they respected and believed without any doubt whatsoever, that these sacred and religious personalities will not represent this institution if there is anything wrong with it.

That was the confidence and faith the Muslim community had.

The majority of those who had invested were poor people and retired persons who had invested their life savings so that they may be able to get some returns for their survival.  What did the members and representatives of the All-Ceylon Jamiathul Ulama do?  The first thing they did was to obtain personal loans to the tune of millions of rupees, compromising their position as members of the so-called Shariah Council.

It looks as if though they lured the unsuspecting Muslim community and those of other communities to deposit in this disastrous and chaotic institution for them to obtain their loans.  We too ask the same question from the representatives of the All-Ceylon Jamiathul Ulama, what the Venerable Galagoda Aththe Gnanasara Thero asked. Vis-à-vis – The ACJU who are talking of halaal certificates, can they tell us how they were able to deceive the community at large, who had placed their trust in this supposed organization of religious scholars?  Is this attitude and behavior which had caused so much misery to hundreds of people come within the ambit of the doctrine of halaal and halaal certificates?

The Monthly tabloid of the Muslim community in Sri Lanka, “Al-Islam”, in their December 2012-January 2013 issue had written an open letter, calling for explanation and challenging the President, of the All-Ceylon Jamiathul Ulama, Rizwi Mufthi, on this issue, which had disastrously affected the Muslim Community financially and mentally.  He remains silent to this day.

It is quite apparent, what the members and representatives of the All-Ceylon Jamiathul Ulama had done, was to involve themselves with these companies in the Ceylinco Group in aiding and abetting this fraud plotted against the communities at large, where they benefited the most.  Therefore, it follows that it is not only the two companies of the Ceylinco group who are to be censured severely, it is the members and representatives of the All-Ceylon Jamiathul Ulama who had been the principal element in instituting this fraud too should be taken to task, berated and chided socially and legally for enticing and tempting the incognizant and unsuspecting members of the community, who are in dire straits today.

We can conclude without hesitation that the main cause and problems facing the Muslim Community in Sri Lanka today, is because, whatever the All-Ceylon Jamiathul Ulama (ICJU) did.  They went overboard, to extremes and naturally there has been a backlash and an adverse reaction to both political and social scenarios.  The repercussions created an explosive surge targeting the Muslim Community and they are still, unbelievably, very dogged about it.

BBC crew abused at Buddhist rally Tamil Guardian 17 February 2013 Three BBC media crew, including South Asia correspondent Charles Haviland, came under attack at a Bodu Bala Sena rally on Sunday. Charles Haviland tweeted: 'Our 3-member BBC team + driver covering #Buddhist #BBS rally #srilanka was seriously threatened with violence by mob after filming...' 'My #srilankan colleagues were verbally abused, accused of having "foreign parents". On the mob's word, police barricaded us & stopped...' '... stopped our car leaving until police superior came & dispersed mob & let us go without further ado. #srilanka #BBS #buddhist' 'Mob behaviour unsurprising but police conduct extremely disturbing. Luckily the superior officer good-humoured, brooked no nonsense #lka' '& the mob were very careful to take lots of photographs of us and our car. Not sure for what purpose. #srilanka #lka #bbs #buddhist'

Suspicion over fire at “Pyramid Wilmar” factory in Kerawalapitiya

Thursday, 07 March 2013

The special police team that is probing the sudden fire at the Pyramid Wilmar factory at the Kerawaalpitiya trading zone on the 5th has expressed doubts whether it was an internal act of sabotage.

As soon as news of the fire was heard, the Sri Lanka Army and Air Force participated in dousing the fire on a directive by the Defence Secretary. On a directive by the Defence Secretary, the IGP had directed a special police investigating team to probe the fire and the team is looking at the possibility of a political conspiracy behind the fire.

The factory imports palm oil from Indonesia and Malaysia and produces margarine, butter, soap and milk powder from the refined oil. The factory was established in Sri Lanka to export palm oil to the Indian market. The parent company of this Sri Lankan endeavor is Singapore’s Wilmar Company, which is a Fortune 500 Company.

India had given several licenses to foreign companies to export palm oil to the country, but there had been a problem in exporting palm oil to India from Sri Lanka due to an issue of Customs duties. Therefore, the monopoly on palm oil by Pyramid Wilmar Company had fallen.

However, Pyramid Wilamr Company had received the palm oil monopoly in the country due to the close link between millionaire businessman Sajjad Mawzoon and the President.

After the Company had lost the Indian market, the President had taken steps to give the company the monopoly in manufacturing margarine using palm oil.

Hence, other companies that were engaged in the palm oil business had been displeased with Mowzoon. Police sources say that this situation has created a doubt whether some of these companies had manipulated some members of Pyramid Wilmar to set fire to the factory.

Security forces had taken great pains in trying to douse the fire since the oil tanks of the Kerawalapitiya power plant is located near this factory. However, police sources also said that the thermal power plant, oil tanks and refinery in Wattala poses a threat to the lives of the people in the area.

The land for this eight year old factory had been given by Minister Prof. G.L. Peiris. The land had been given when Peiris was a minister of the UNP government under the “Vanaspathi project.”

Pyramid Willmar is also the main shareholder of the Shangri-La Hotel that is currently being built near Galle Face. Mowzoon has been paid special attention by the President and other key government members since he had managed to bring the largest foreign direct investment (FDI) project the country had received recently by way of the Shangri-La project.

PB likely to win the Namal-PB clash

Thursday, 07 March 2013

Finance Ministry Secretary Dr. Punchi Banda Jayasundera is likely to win the clash with MP Namal Rajapaksa. Jayasundera is showing signs of emerging the victor in the Namal-Jayasundera clash, after Bank of Ceylon Chairman Gamini Wickremasinghe was defeated in his clash with Namal recently.

The indication of Jayasundera’s position in the clash was evident at a recent discussion he had had with officials from the Census and Statistics Department at the Finance Ministry. Another group of government officials had also attended the meeting. One of the officials had said that Namal had planned many projects in the Hambantota District and that monies should be allocated to them on a priority basis.

The official had said the monies need to be allocated fast since Namal frequently questioned about the matter. After patiently listening to the official, an angry Jayasundera had said, “Namal is only an MP, not the President. Also, the President would need me as well. Therefore, work according to my directions.” The official had continuously requested that monies be allocated to fund Namal’s projects. “Now you better work according to my directions. Namal has nothing to do. Has anything come out of Wimal’s rhetoric? I have transferred everyone who had been carrying tales about me to the President and Gamini Senarath. Don’t create problems for yourselves. Don’t bring Namal’s matters to me,” Jayasundera had reiterated.

Namal has continuously complained to his President father about Jayasundera and had even got his mother to speak on his behalf. The President has however not taken the matter into account. The President had said, “I also had such problems with A.S. Jayawardena. Once even tried to garb him by the collar and assault him in parliament. But PB is not as bad as AS. We cannot send PB. Ask Namal to be patient.”

The Gratiaen Trust Announces Shortlist Event And Panel Of Judges For The 2012 Gratiaen Prize

March 6, 2013 

This year the Gratiaen Prize, in affiliation with the Standard Chartered Bank, celebrates 20 years. Reflecting this landmark in the prize’s career the shortlist announcement is scheduled as the inaugural event for Standard Chartered Colomboscope 2013 on 22 March at the Chequerboard, Park Street Mews at 6.15 pm. The event is open to the public and all are welcome. Founded in 1993 by the Booker-Prize-Winner Michael Ondaatje, the Prize is awarded to the best work in English by a resident Sri Lankan writer and both manuscript and published submissions are eligible. As in previous years, the British Council will be hosting the shortlist announcement. The award of the prize will take place on 4^th May 2013.

Standard Chartered Bank’s Chief Executive Officer Anirvan Ghosh-Dastidar speaking about the Bank’s support for the award said, “The Gratiaen Prize is awarded each year to the best work of English literature by a Sri Lankan author, and Standard Chartered has been involved for most of its history. We are delighted to be associated with the Gratiaen Prize and the opportunities it affords to Sri Lankan writers to showcase their talent.” The judges for the 2012 Gratiaen Prize are: Jayantha Dhanapala (Chair), a distinguished former career diplomat and currently President of the Pugwash Conferences on Science and World Affairs—who has maintained a sustained interest in Sri Lankan and world literature throughout his multifaceted international career; Lynn Ockersz, a senior journalist, a published poet and a lecturer in journalism; and Sumathy Sivamohan, a writer, dramatist, filmmaker and academic who is currently head of the Department of English at the University of Peradeniya. For further information on the judges and past winners with extracts of their work, see www.gratiaen.com.

The Gratiaen Prize as the only literary prize devoted to Sri Lankan writing in English has contributed to fostering and promoting Sri Lankan literary talent. This includes writers such as Carl Muller, who was joint winner of the inaugural prize for The Jam Fruit Tree, Tissa Abeysekera for Bringing Tony Home, Vivimarie Vanderpoorten for Nothing Prepares You who subsequently won the State Literary Award and the SAARC Poetry Award and Ruwanthie de Chickera for Middle of Silence. Shehan Karunatilaka’s Chinaman: The Legend of Pradeep Mathew, a compelling saga about a maverick cricketing legend, won the prize as a manuscript. This helped Shehan publish the book to rave critical and popular acclaim and it was subsequently re-published by Random House India and Jonathan Cape, UK and went on to win the DSC Prize for South Asian Literature and the Commonwealth Book Prize. With the growing global imprint of Sri Lankan writing in English, the Gratiaen Prize’s unique position as a prize awarded to resident Sri Lankans has helped Sri Lankan English language authors based in Sri Lanka gain regional and international recognition.

The Gratiaen Trust which administers the prize has expanded its scope by introducing the H A I Goonetilake prize for translations from 2003 (awarded every other year) and established the Three Wheeler Press to help authors publish their work. Despite an unfavourable financial climate the Trust hopes to expand its activities further. A series of “Gratiaen Evenings” featuring prominent writers and artists is planned and the first of these was held successfully last year featuring Sri Lankan dramatist Ernest McIntyre. In future, Gratiaen Evenings are planned for venues such as Jaffna and Kandy broadening the outreach of Gratiaen activities and the Trust also hopes to hold a series of creative writing workshops for young adults.

SL trying to intimidate India- Jayalalitha

2013-03-07 Tamil Nadu chief minister J Jayalalithaa on Thursday alleged that Sri Lanka is attempting to "intimidate" India into not raising its voice against the atrocities on Tamils in that country by arresting Indian fishermen. In a letter to Prime Minister Manmohan Singh, she said: "The incidents of arrests of fishermen and the recent firing should be viewed as an indirect attempt to intimidate the government of India and browbeat it into not raising its voice against Sri Lankan atrocities on innocent Sri Lankan Tamilians in the international fora." The text of the letter was released to the media here. Jayalalithaa was referring to the firing by the Lankan navy at Indian fishermen on Wednesday and said it was "highly unacceptable". Urging that the Indian government not remain a silent spectator, Jayalalithaa said: "The Sri Lankan government should be advised to desist from using force against our innocent Indian fishermen who have been fishing in their traditional fishing areas for centuries." According to her, 14 Indian fishermen — 10 from Puducherry and four from Tamil Nadu — were shot at by the Lankan navy Wednesday night, injuring a fisherman.  "You are already aware that 16 fishermen of Thoothukudi (Tuticorin) who were fishing in the Gulf of Mannar area were arrested by the Sri Lankan navy and are presently in judicial custody in Sri Lanka," the chief minister said in the letter.  "Over and above that, this latest incident of firing by the Sri Lankan navy clearly indicates that the Sri Lankan navy wants to create an atmosphere of panic, fear and tension amidst the fishermen of Tamil Nadu," Jayalaltihaa said. (Times of India)

Geneva Lies: Infographics The Militarisation Of Sri Lanka

Mahinda Samarasinghe, the Sri Lankan envoy on Human rights said last week;

“The Government is in the process of devising measures to pay compensation to the owners of properties within such areas or provide them with alternate land. I must re-emphasize that the military is in no way engaged in civil administration which is the sole responsibility of civilian officials. There are absolutely no restrictions on travel today in the North and civilians enjoy complete freedom of movement.”

On 5th March 2013 the family members, who were travelling to Colombo to participate in a protest campaign and to hand over a petition to UN regarding their disappeared relatives, were blocked in Vavuniya by a joint operation of the police and the military.

The infographics below are created by the Sri Lanka Campaign. The militarisation of Sri Lanka – infographics to highlight the current situation in Sri Lanka.

Sri Lanka: Police and Military Block Family Members of Disappeared Heading to UN in Colombo: UN should act

March 6th, 2013

NfR, a network of Sri Lankan journalists and human rights defenders, expresses its strongest indignation to the Government of Sri Lanka for its dastardly act of blocking Tamil civilians travelling to Colombo to demand justice for the disappeared.  Police has used their trucks to block the buses they were travelling with.

On 5^th March 2013 the family members, who were travelling to Colombo to participate in a protest campaign and to hand over a petition to UN regarding their disappeared relatives, were blocked in Vavuniya by a joint operation of the police and the military. This is a clear attempt to create a fear-psychosis among the Tamil people demanding accountability and justice for the disappeared.  

The pretext given for the blockade was that the police is not in a position to guarantee the safety of the travellers in the night. This is in complete contrast to the picture the GoSL is otherwise painting saying that normalcy has returned, including the freedom to travel at any time any where in the country. 

NfR views this open intimidation of family members of the disappeared and blatant violation of people’s basic right to peaceful protest as an escalation of the militarization in the North and the suppression of Tamil people in Sri Lanka.

Reports reaching NfR from Colombo indicate that nearly about 800 people had been stranded as a result of this unlawful police action.  When the political party leaders from the South intervened, an assurance was given that those people could start their journey on the next morning (6^th March 2013). The family members of the disappeared were surrounded by the police and they were not allowed to leave the buses. It was only after 3 hours and intense negotiations that the people were allowed to move to places where they could have a rest in the night.

In the meanwhile, the police has threatened the bus drivers for carrying the family members of the disappeared to Colombo and the drivers have reported the threats to the organizers. They were told that if they travel to Colombo with the family members that they will have to face problems when they come back to the Vanni.  After the threats 8 out of 10 buses have gone back leaving the people behind. Consequently, there were only two buses for 600 people to travel to the UN office in Colombo.  This also means that the Government of Sri Lanka has effectively blocked hundreds of family members of the disappeared to reach Colombo and to hand their petition to the United Nations.

This inhumane and autocratic act of the Government of Sri Lanka, at a time when the UN Human Rights Council in Geneva is scheduled to discuss the human rights situation in the country and the GoSL is promising to uphold rule of law and human rights as a response to the HRC deliberations, shows that all promises of the GoSL are mere words.  

NfR calls on members of the United Nations Human Rights Council to consider this openly undemocratic behaviour of the GoSL as a direct challenge to the world’s human rights body they represent and to act accordingly.

NfR calls on the UN Human Rights High Commissioner to take up this issue – of blocking the family members of the disappeared coming to the UN office in Sri Lanka expecting some kind of redress – with all relevant authorities, including the representatives of the GoSL.

NfR urges the international human rights community to show their solidarity with these families of the disappeared and to make a representation to the Government of Sri Lanka in the strongest possible terms.

Written by editor

Why Nigeria Must Boycott CHOGM Meet in Sri Lanka

By Boma Ozobia, Email: boma@spnglegal.com

05 Mar 2013

The 5th and Current Secretary General of the Commonwealth of Nations, Kamalesh Sharma is visiting Nigeria at about this time and as is this case with these visits, various matters of mutual concern will be tabled for discussion between the government of Nigeria and the visiting dignitary. I trust the current situation in Sri Lanka will be top of the agenda. Itrust also that the Secretary General will be urging Nigeria through its government to boycott the Commonwealth Heads of Government meeting (CHOGM) due to take place in November in Colombo, Sri Lanka except the Sri Lankan government retraces its steps and reinstates the Chief Justice of that Commonwealth nation immediately or in any case before the CHOGM.

We complain about impunity in this Country, but never in the history of Nigeria, even in the dark days of military dictatorship have we experienced what the good people of Sri Lanka are currently being subjected to, certainly, no government of Nigeria would attempt such a blatant and ‘in your face’ disregard for the rule of law.

Is this not an overreaction on my part I almost hear you ask? Not if you are privy to the same information as I am. As the popular Nigerian songstress Omawumi said, ‘The matter wey I see, e heavy for mouth’. Nonetheless, something has to be said, and done.

What is this matter? Well, the Chief Justice of Sri Lanka was ‘impeached’ in January for ‘misconduct’. What’s wrong with that I hear you say, after all, only last week or so, Justice Archibong was ‘removed’ for the same reason and it is about time we cleansed the Judiciary be it in Nigeria, Sri Lanka or anywhere else in the Commonwealth for that matter.

That may well be the case, but what would you say, if Justice Archibong had been the Chief Justice of Nigeria and in the course of his judicial duties, sitting with a full panel of his brother judges of the Supreme Court, they pronounced a judgment on a matter concerning the brother to the President, our very own Goodluck Jonathan. Let us then say that this judgment to put it mildly, did not go down well with the President and equally importantly, it was also not well received by the President’s senior brother, David Mark Goodluck (the Sri Lankan equivalent of our David Mark is the senior brother of the Sri Lankan President).

The same day the judgment is delivered, David Mark Goodluck and 117 of his fellow Senators vote for the Chief Justice to be tried for serious misconduct. The Chief Justice is then summoned to a closed hearing presided over by 7 serving Ministers of the Federal Republic of Nigeria who by virtue of their positions are members of the Federal Executive Council, appointed by President Goodluck, whose other brother is the dissatisfied litigant - recall his senior brother is the head of the legislative arm of government, thus the family and their political allies control two of the three arms of government. The Chief Justice is to be tried in accordance with rules laid down by the head of the same committee set up by parliament, made up of parliamentarians who having levelled the accusations against the Chief Justice, and who now sit in judgment to hear her defence behind closed doors. According to the rules, these doors will remain closed until a verdict of ‘guilty’ is reached.

It sounds like Tales by Moonlight, too preposterous to be true, but this is what has actually occurred in Sri Lanka. The Bar Human Rights Commission of England and Wales commissioned Geoffery Robertson QC, the First President of the UN Court in Sierra Leone after the civil war, and a member of the UN Internal Justice Council (the UN’s equivalent of the NJC) to investigate and report on this issue, I have read the report, all 66 pages of it and various other publications and reports and attempted to summarise the facts with the Justice Archibong analogy, employing poetic license. Space will not permit me to go into greater detail but this is effectively what has happened in a country that is a signatory to the Latimer House Principles adopted by these same Commonwealth Heads of Government in our own Abuja at the CHOGM which we hosted in 2003.

As a result of this deeply flawed process, where the allegation of misconduct against the CJ is effectively a judgment the legislative and executive arms of government were unhappy with, the Chief Justice has been ‘impeached’. Geoffery Robertson QC concluded “That the Chief Justice of Sri Lanka was innocent of the misconduct charges which brought about her removal from office last month, which was in reality a reprisal for her “careful and correct” decision in a case where she had ruled against the government. The report calls for the UK to subject the seven Sri Lankan cabinet ministers who convicted her, and 117 government MPs who signed a “false and fabricated” impeachment motion, to be refused entry visas and to have their bank accounts in Britain frozen. It wants Sri Lanka suspended from the Commonwealth, and urges the Queen not to attend the November Heads of Government meeting (CHOGM), scheduled for Colombo.”

Geoffery Robertson QC concludes in his report as follows:

“The denouement was as unseemly as the procedures used to bring it about. On 12 January, 2 days after receiving the “address” from his brother, the President summoned the remaining 10 Supreme Court judges to his office for a 90 minute meeting. It is not known what he said – the meeting was highly improper – although it seems that he asked them to pass on one threatening message to the Chief Justice, namely that if she resigned without further fuss, she could keep her full pension entitlements.

The Chief Justice, who appears to have behaved throughout with great dignity, remained with her family at her official residence. The following day she received a Presidential order removing her from office, and (in a despicably petty gesture) her security guards were withdrawn, while threatening demonstrators remained outside. On the next day, a holiday Monday, police ordered the Registrar to pack up all her belongings in her chambers, to make way for the next incumbent. A large phalanx of military police occupied the court building overnight and a riot squad (with water cannon) arrived the next morning along with a government rent-a-crowd who shouted slogans in praise of the new Chief Justice. He was Mohan Peiris, a man without judicial experience, who served as the legal advisor to the cabinet and Chairman of a bank and of an arms procurement firm established by Defence Secretary Rajapanske.

He was sworn in by the President and that afternoon took over the Chief Justice’s chambers whilst a large number of lawyers stood outside the court holding candles “to symbolise the onset of darkness”. Dr Bandaranayake was confined to her residence until her successor was installed in her former chambers, and then required to leave in her own car without speaking to the media or (as she had requested) being given an opportunity to thank her staff.

She did issue a dignified and moving statement, pointing out that the rule of law to which she had devoted her life had been shattered. She would not resign in order to save her pension, but she could not resist the power of the state to remove her physically from the Court.”

The Latimer House Principles states in relation to Judicial accountability as follows;
“(i) In cases where a judge is at risk of removal, the judge must have the right to be fully informed of the charges, to be represented at a hearing, to make a full defence and to be judged by an independent and impartial tribunal.

Grounds for removal of a judge should be limited to:

(A) inability to perform judicial duties and

(B) serious misconduct.”

These principles were entirely ignored in the removal of Justice Bandaranayke.

We cannot ignore it and pretend it did not happen, if at all Nigeria is represented at the CHOGM in Sri Lanka it should be solely because we went there to deliver this message to President Rajapakse and family that, ‘this blatant disregard for the principles of separation of powers between the three arms of government and attack at the fundamental principles of
the rule of law must stop forthwith.’

There is a Yoruba saying which President Rajapakse and family will do well to heed, which roughly translated states that the whip with which the first wife was driven away is still in the broom cupboard and will be used in due course to mete out similar treatment to the second wife.

As we welcome the Secretary General of the Commonwealth to Nigeria, let us as a nation stand up for the Latimer House Principles which were adopted here in Nigeria in 2003 and unequivocally condemn the actions of the government of Sri Lanka.

Mrs. Ozobia is President, Commonwealth Lawyers Association

One billion rupees for Mahinda's head.

  Wednesday , 06 March 2013

Attorneys Federation had notified that one billion rupees will be given to anyone who brings the head of Sri Lanka President Mahinda Rajapakse.

Urging India to support the resolution brought by US against Sri Lanka at the UN Human Rights Council sessions, and to notify President Rajapakse as war criminal, the Tamil Nadu and Puthucheri lawyers were engaged in protest yesterday Tuesday.

In front of Supreme Court Madhurai branch, the lawyers were engaged in demonstration and rally yesterday.

Chennai Supreme Court Madurai Branch Lawyers Federation Chairman Peter Ramesh Kumar while addressing amidst journalists said, one billion rupees will be given to anyone who brings Sri Lanka President Mahinda Rajapakse's head.  He said, if any one see Janatha Party Leader Subramania Swamy  anywhere in Tamil Nadu they should beat him, was said by him.

I am still the CJ-Dr.Bandaranayake

WEDNESDAY, 06 MARCH 2013 
Dr. Shirani Bandaranayake, has for the first time informed the Supreme Court that she is still the Chief Justice of the country and refused to appear before the Supreme Court hearings relating to her impeachment.

Writing to the Supreme Court through her attorneys, Neelakanthan and Neelakanthan Associates, Dr. Bandaranayake stated yesterday that the impeachment against her was illegal and that she would not participate in the Supreme Court hearings. On February 19, 2013, the Supreme Court had noticed Dr. Bandaranayake to appear before court in connection with hearings scheduled to be taken up before a full bench of Supreme Court judges.

“Our client has at all times maintained that her impeachment is null and void and is of no force or effect in law and will continue to be so,” Dr. Bandaranayake’s lawyers wrote to the Supreme Court.

The Court of Appeal gave its order on January 7, 2013. The Court of Appeal order was not followed and/or was not adhered to by, among others, Speaker Chamal Rajapaksa and some of the members of the Parliamentary Select Committee which probed the impeachment against Dr. Bandaranayake, her lawyers stated.

“Consistent with our client’s position, our client will not participate in these proceedings. Thus, our client’s view is that her purported removal as Chief Justice is of no force or effect in Law,” the law firm wrote.(Susitha R Fernando)

Swiss Referendum And Taming Of Capitalism!

By Laksiri Fernando -March 6, 2013 

Dr Laksiri Fernando

At least it is taming of the ‘rip-offs,’ if not capitalism. It might however show the future possibilities of taming even capitalism utilizing democratic means. The Swiss people this Sunday (3 March 2013) voted overwhelmingly in a landmark referendum in placing limitations on all listed companies in paying exorbitant bonuses, ‘helicopter entry’ and ‘exit handshake’ payments to directors and other top officials including consultants. Usually amounting to billions of Swiss francs or dollars, the payment of exorbitant bonuses have been the corporate practices so far in many countries. The Swiss people, well known for some of their direct democratic devices have taken the initiative.

Background

From a democratic public eye, these corporate payments are ‘rip-offs’ not only of the dividends of the shareholders of such companies but also the wage levels of all other employees, their meagre annual bonuses and the health of any economy. The Swiss public became outraged in 2008 for two reasons. A major Swiss bank UBS was about to collapse due to risky investments of the big bosses and the ordinary tax payers had to shoulder the burden in a government bailout. There is a close connection between the risky investments to make high profits and the bonus payments to big bosses. Then the shareholders came to know that the outgoing chairman of the chemical company Novartis, Daniel Vasella, was about to be paid a $ 78 million handshake payment. They and the public were outraged and Vasella finally agreed to forego the payment due to public pressure.

The ‘shame’ factor worked. Since then an independent MP in the upper house of Swiss Parliament, Thomas Minder, has been campaigning to curb some of the practices of big companies and financial institutions that could jeopardise the wellbeing of the Swiss economy. Some of the companies (i.e. UBS) were bigger than the Swiss economy itself. This effort was characterized as an effort at ‘saving capitalism’ by the far left as Minder himself was a medium scale businessman before turning into a politician; and even after. But his campaign had a seeming rationale. Some of the reasons for the American and European financial crises were related to the ‘risky business of the big bosses’ aiming at their bonuses and other payments. Since the Swiss economy managed to prevent itself from a major financial crisis like in other Western countries it had more reason to take rational policy measures to safeguard the interests of the people, including of course the investors from suicidal financial risks.

Referendum

When the referendum was held on Sunday, the verdict was overwhelming. Majority of voters turned out and 67.9 per cent of voters and all 26 Cantons endorsed the measure. This result was despite the incumbent government and the big business lobby Economiesuisse opposing and fiercely campaigning against the measure. There are arguments that the business companies may find loopholes or necessary space to circumvent the referendum verdict. But the referendum mandates three year jail terms for those who break the law after the measure is properly instituted as legislation. Unfortunately the referendum is not legislation. On the basis of the referendum, the legislation still has to be drafted by the national Parliament and there is a possibility of the incumbent government or others employing delaying tactics. Democracy is unfortunately slow.

In a capitalist system, behind parliaments or other democratic institutions, there are structures and forces operating to safeguard its existence. This is the case in Switzerland as well. However, given the overwhelming mandate for the referendum, and strong sentiments expressed by the people, it is quite unlikely that anybody would be in a position to circumvent the referendum verdict. It has never been the case in Swiss democracy however capitalist it has been. Those political parties, who were wavering before, even with social democratic title names, now have come around and hailed the referendum. In the Canton of Zurich, the citadel of Swiss capitalism, 71 per cent of voters endorsed the referendum to curtail the rip-offs of big bosses that go quite contrary to the interests of the people.

It is obvious that capitalism cannot be tamed or changed through referendums alone. Swiss people are allowed referendums only for four times per year by the present constitution. Anyway, referendums cannot be held every day. What the recent referendum signifies is the possibility of people moving against at least some exorbitant aspects of capitalism and perhaps by that way bringing certain sanity to the system.

There is increasing awareness with the predicaments of the international financial crisis that wage gaps even in the private sector should not be so vast. The proposed norm seems to be the maximum of 12 times from the lowest wage to the highest paid. It is well known that a company in America pays average of five times for an equivalent executive in a company in Japan. The Brussels has proposed a policy of caps to bonuses in the private sector in EU countries. The British Premier, David Cameron, is resisting but even he might now succumb to the proposal as an influence of the Swiss referendum. We should not have, however, illusions that capitalism in the West would be soon reformed. But we can have confidence whether in the West or in the East, people can be mobilized against at least the exorbitant aspects of capitalism as a beginning and moving from there onwards, of course if you have some faith in some form of socialism.

Relevance to Sri Lanka

Why do I say this particularly to a Sri Lankan readership? Although Sri Lanka is still an underdeveloped capitalist country, income and wage gaps are so vast proportionately even compared to a developed capitalist country. This is not about ‘Dhanapathiya Bhangaveva’ (Down with the capitalists), but justice to the people. In the case of Sri Lanka, the most outrages currently might be the corruption and plunder on the part of politicians. Unlike Switzerland, Sri Lanka is mainly a ‘state capitalist’ country and most of the perks, commissions and profits are ripped-off by the politicians, their families and close business associates.

It is not long time ago that the share market became manipulated and the small scale investors were ripped-off without any preventive action taken by the government. There were clear indications that the insider trading was conducted by the people who were well connected to the political establishment. The chairman of the monitoring organization, the SEC, resigned and the whole matter was hushed up unceremoniously. It was during these manipulations that the National Savings Bank purchased nearly 8 million shares for almost double the price of the market value from the controversial The Finance Company. Whether the sole responsibility for this corruption rests with the former chairman or not is a matter before the now increasingly manipulated judiciary. It is most recently that the Transport Minister admitted when questioned in Parliament that a fraud to the tune of 6.4 billion rupees had taken place in the Motor Registration Department. These are only some recent highlights even without mentioning about the Mihin Air financial scandal.

There was a time when the state intervened in the economy (i.e. 1970-77), the people were reassured that there would be some reasonableness in economic benefits and income redistribution. But the period was pathetically primitive with queues and scarcities. Then came the open economy and we are now back to ‘state-capitalist intervention’ in a different form and one might say in an ‘advanced form.’ The state acts as a conduit for capital accumulation for a particular political elite and one may say for the national bourgeoisie proper. There is also a visible military element within this national bourgeoisie like in Indonesia under Suharto (1967-1988). The main characteristic of the system appears to be the blatant corruption and financial manipulation covered up through political rhetoric of patriotism. One might even argue that corruption plays a ‘progressive role’ in capital accumulation!

It is true that the per capita income in money terms was doubled during 2005 and 2010. Equally true is the doubling of the income gaps between the poor and the rich and widening of disparities between the centre and the periphery. Apart from the ethnic angle, there is an economic element to the opposition for the provincial councils and devolution by the national bourgeoisie. The leading elites of this class may come from Hambantota or Kandy but they want to concentrate their political power in Colombo.

It is true that modern democracy in the West became invented initially by the capitalist classes in their struggle against the feudal classes and the feudal state. But democracy’s potential is beyond specific classes or specific historical periods. In Sri Lanka, there is no such a remaining feudal class that threatens the ascendancy of the bourgeoisie. The national bourgeoisie is visibly the offspring of the feudal remnants. That is why their role has always been regressive in respect of democracy. Even against imperialism they have not championed democracy. Take the example of their opposition to the universal franchise in 1931 or the disenfranchisement of the (Tamil) plantation workers in 1949. Take the example of concentrating power in the executive presidential system in 1978 or enhancing that power in 2010 through the 18^th Amendment.

If there is any enemy or an obstacle to the corrupt national bourgeoisie it is nothing but the people and the enlightened professional groups. This is the very reason why the rising national bourgeoisie based on the regressive state is not interested in enhancing democracy or preserving the rule of law or independence of the judiciary. It is left for the ordinary people in alliance with any enlighten sections of the business milieu to preserve democracy, rule of law and independence of the judiciary. Unlike the ‘big bosses’ that outraged the Swiss people, there are various professional layers of the business milieu in many countries including Sri Lanka that would work for reasonable salaries, remuneration or ‘profits’ to enhance business and economic development of countries.

Swiss people became outraged because of high bonuses for the private sector bosses and government bailouts for the mismanaged banks. Sri Lankan people can and should become outraged because of rampant corruption and enlarging economic disparities between the rich and the poor. This is apart from other apparent injustices.