Only provided professional services to 

Rajaratnam: CB Governor



2016-07-05
Newly appointed Central Bank Governor Indrajit Coomaraswamy said today he was delivering certain ‘professional services’ as an economist to the Sri Lankan-born jailed hedge-fund manager Raj Rajaratnam. 

“My job was to provide him with research reports,” Dr. Coomaraswamy said addressing his first news briefing as the Central Bank Governor. 

Criticism has already been levelled at him by joint opposition parliamentarians about his connection to the Galleon Fund of the disgraced Mr. Rajaratnam, who was sentenced to11 years after he was found guilty of a securities fraud in the US. 

Dr. Coomaraswamy said he got to know Mr. Rajaratnam as a friend from his university days.

 “I set a framework when I was in London to provide him with macroeconomic research. He knew my background and he wanted me to help. This happened for about 10 to 11 months and then he was charged. So it took about a year after that for me to legally wind up the operations,” he said.

 “I knew him as a friend…he helped Sri Lanka and he had done a lot of positive things…lot of charity work. That was the Raj Rajaratnam I knew.” 

Taxes: Proposals & The Way Forward

By S.A. Azeez –July 5, 2016

S.A. Azeez

It was proposed to raise the individual tax free allowance to Rs.2.4 million from Rs 500,000, almost a 500% increase. If implemented this would have left very few individuals paying income tax in this country. This proposal was withdrawn.

Share transaction levy is a proper way of taxing share transactions in the Colombo Stock Exchange. Whether there is a profit or not the levy is charged on each share transaction. This levy was removed and reintroduced later.

The corporate tax rate was 28% for large companies and 12% for small and medium companies (SME companies).A new single tax rate of 17.5% has been introduced for large and small companies other than trading companies. Most of the corporate incomes tax comes from a few companies which are regarded as large tax payers. The reduction from 28% to 17.5% would have had a substantial impact on the government revenue from direct taxes. No company had any grudge in paying 28% tax. The corporate tax rate is 34% in India while it is 24% in Malaysia. What is the idea behind reducing the rate to 17.5% which would cause the government to lose its revenue substantially? In the meantime SMEs have been affected due to the increase in rate from 12% to 17.5%. Small scale exporters who try to hold a foothold in the international market have to pay income tax at an increased rate of 17.5%. Will not this be a disincentive to small scale entrepreneurs?

Recently, it has been proposed to charge Value Added Tax (VAT) at 15%, removing most of the exemptions. It is true too many exemptions are not good for any tax system. However, removing exemption on healthcare services is a matter of concern. Growth and improvement of private healthcare services over the years have substantially reduced government’s burden on health care expenditure. Not everybody who makes use of a private hospital is rich or super rich. Some patients who get admitted to private hospitals for coronary bypass surgery or similar treatments sell their properties or borrow to settle their hospital bills. Now on the top of hospital bills, people have to pay 15% VAT and 2% Nation Building Tax (NBT) to the government. This may be alright for well developed countries such as Australia, Canada and the United Kingdom where the government takes care of social welfare with advanced heath care and educational services free of charge.

Further, the reduction of threshold for retail sales and whole sale from Rs.100,Million to Rs.3 Million is too harsh. Ideally this should be done gradually. It could have been brought down to 50 or 40 Million.

It has been proposed to charge an annual registration fee of Rs. 60,000 /- from private companies. This is a charge to be levied in addition to annual return fee of Rs.5,500/-. After the proposal was presented large number of companies have been wound up. The proposed fee would discourage individuals from forming new companies with the consequence of more and more informal businesses cropping up in the country. Most of the countries encourage registration of more and more companies. Thousands of companies are formed every day in China. No country is charging such a high fee for keeping a company.

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Brexit success and the response of universities

Wednesday, 29 June 2016

W.A. Wijewardena in his Daily FT column on 27 June questions whether the UK Universities and the research sector is the biggest casualty in the aftermath of Brexit. Apart from the financial implications, if Brexit is a sign of a trend towards more closed borders, it is indeed a bad development for universities.

The original term Universitas as used in the first university in Bologna meant a community of scholars. Universality was also implied, because these communities were made of students from different nationalities who found a need to band together to protect themselves from hostile locals in what were known as town-gown conflicts.

Governments have taken over the funding of universities, but the universality of the institution has remained. In the US, state universities are funded by each state, but one third of their budgets come from Federal research grants.  Federal funding is essentially how state universities balance their local obligations with their global mission.

Demand for skills

For countries in the European Union (EU), the European Commission has been the equivalent of the federal government for state universities in the US. The EU research pie and the student pipeline is much bigger and allowed competitive UK universities to benefit from the largesse. But, with the success of the Brexit campaign, the universities in UK will be more localised the old town-gown tensions will remerge. As universities look for answers, they would be tempted to demonise the Brexiters, but they should heed the words of the philosopher President of USA.As President Obama said in an interview with the Bloomberg news channel:

“The issue is not resentment or class warfare or that somehow we want to level everybody down rather than lift everybody up. The issue is that, if in fact automation and globalisation do have a tendency to create vast wealth and opportunity for a very small, highly-skilled set of people and have a tendency to create a larger and larger group of folks who feel redundant in the economy, and if you don’t pay attention to that, then people will rightly resist. They will understandably say, ‘I am not getting a good deal here.’”

Universities might interpret Oba’s comments to mean that they should expand higher education to give more opportunities to more individuals, but that would be a self-serving interpretation. More important is to take a realistic look at the real demand for skills in the economy and see how universities should respond. As early as 1991, Robert Reich talked about the emergence of symbol analysts and armies of routine producers and in-person servers. Symbol analysts identify, solve and broker new problems. Routine producers work on production lines with minimal customer interaction, while in-person servers serve in personal service industries such as restaurants, hotel and hospitals.

In more recent times, as Hugh Lauder and others note, there is an increasing supply of graduates who aspire to be symbol analysts when the world needs only so many symbol analysts for many more routine producers or in-service personnel. As more people gain the qualifications previously required for professional or managerial jobs, and if the number of these jobs does not expand to meet the supply of qualified people, the exchange value of the credential weakens leading to credential inflation.

Corporate sector’s role

Universities are trapped in a problem of their own making. As long as there is pressure from the parents for credentials, politicians will be forced to open more universities, though the market demands more in-person servers requiring lesser qualifications. Universities have benefited without being the honest evaluators that they should be. When credential inflation happens and graduates are not getting the wages they expect, governments are demanding accountability from universities. Now it is too late for the universities to solve the problem by themselves. The corporate sector has to play a role too. As Obama suggested to the corporate sector:

“You know, if I am a CEO in a boardroom right now, I should be thinking about, how do I make sure my workers are making a decent wage? And if I’m a shareholder, that is something I should be paying attention to, too, because if you’re not, that’s when you start getting the kinds of political pushback that you’re seeing here in the United States. That’s how you start getting a Brexit campaign. Over time, you’ll strangle this goose that’s been laying you all these golden eggs. Share the eggs.”

He is essentially saying that we need to narrow the salary differential between symbol analysts and routine producers and in-person servers. In fact, the critical issue in human capital development in the 21st century, I believe, is not about making more symbol analysts, but bringing down the gap between the symbol analysts and routine producers.

The medical field is a good case in point. A radiographer who works in the hospital and does a combination of routine producer and in-person server work taking radiographs of patients, has to get to work in reasonable comfort and get home in reasonable comfort to a home of reasonable comforts. His/her human needs are no different from the symbol analysts, the doctor who reads the charts and prescribes, but the radiographer gets paid much less than the doctor.

Crowds are pushing at the gates

This differential has not gone unnoticed by society at large. Earlier, privileged groups used credentials to keep the masses out of symbol analyst positions. Now the crowds are pushing at the gates. They have learned that, with enough support, their children too could become symbol analysts.

In Sri Lanka, for example, families are willing to sacrifice all other comforts to feed, clothe and pay for tuition for their children well past school age, with the hope of getting them qualified in medical, engineering or other lucrative professions. Parents are often willing to play the lottery for higher credentials at the risk of a child’s happiness of even health.

Ina more positive future scenario, parents would not make the unnecessary investments because routine producers or in-person server work requires some symbol analytic skills and pays decent salaries and carries prestige. Only those are committed to perform will aspire to be symbol analysts because monetary rewards for such jobs are not that huge. A new mantra could be: “To all, the abilities they can master, and to each according to performance.”

Here both the radiographer who takes the radiograph and provides an in-person service and the doctor who interprets the radiographs and also performs and in-person service, but at a higher level, will be rewarded for how well they perform and the level of skill they bring to the job, irrespective of their credentials.

Is this another utopian ideal like the communist society where the mantra was: “From each according to his ability; to each according to his needs”? I don’t think so, but I am not sure either. We need lots of heads put together to respond to the two challenge posed by Obama about alleviating the fears of globalisation by the average citizen and reducing the wage differentials between, say, symbolic analysts and others. If universities are interested in their survival, they need to address such policy relevant questions with more vigour.

Aud. General says clearly Dilan Perera robbed Rs. 925,309.00, then clearly president and FCID are shielding him?

(Lanka-e-News -05.July.2016, 7.00PM) Dilan Perera the most notorious corrupt political two legged wolf of the ‘nefarious decade’ has defrauded those employed abroad  in a sum of over Rs. 900.000.00 after advancing the defense these monies were used by him  for blowing balloons .This fraud has been exposed by no less a person  than the Government Auditor General . 

In the report Ref. IS/INV/PC/GDE/2015/14 dated 2015-06-16 issued by the Auditor General in relation to the Sri Lanka Bureau of foreign employment (SLBFE) , it is mentioned Dilan Perera under the pretext of organizing a fake walk has fraudulently spent   Rs. 90 million  to  create awareness regarding foreign employment,  while also  committing a fraud  in a sum of Rs. 925,309.00 based on  expenditure towards balloons. 

Dilan had stated these balloons valuing Rs. 925,309.00 were purchased from ‘Anil Graphic Design’ Kithulhene ,Mattegoda  for  the awareness program , but inquiries have proved that establishment does not produce balloons. 

However  this establishment has mentioned  this sum of Rs 925,309.00 in their  invoice as payment  in relation to May day celebration decorations. Hence , though Dilan had said he blew balloons to the value of Rs.925 , 309.00  and sent them up to create awareness regarding foreign employment   , instead of  inflating   balloons and sending them up into the air , he has blown the cash down into  his pockets to inflate himself. Balloons, if any were sent up , that was only on  the May day.  

This is an absolute unalloyed robbery

In Sri Lanka the price of a balloon is Rs. 10.00 , in which case Dilan should have sent up at least 92000 balloons , to create awareness among  the public on foreign employment.

It was somewhere in 1970 ordinary Sri Lankans  commenced leaving for Middle East for jobs. That means this foreign  employment was there for the last over 40 years. In other words , a huge publicity is not needed to create awareness  among the public. A cleverly  planned  publicity method will suffice. Hence , sending balloons up to give publicity is an absolute lie and a subterfuge. This was  a methodology invented by  the fraudsters to practice deception .

This fraud was  well and thoroughly exposed , and the Auditor General had also classified this as  grave corruption in his report over a year ago. Besides , this crime was complained to the FCID . Then how come    Dilan Perera had not been even interrogated so far ? With whose patronage and protection  is fraudster Dilan successfully  dodging the laws under the government of good governance?

May we remind lest it is forgotten that Maithripala Sirisena was elected as president of Sri Lanka on 2015-01-08 by the people not for him to protect and rescue the SLFP crooks and criminals. Surely he did not leave the corrupt regime to come out and provide cover and cover ups to his comrade ministers .At least he did not promise so at that time. In  law , anybody who provides aid to a criminal is treated as more guilty than the criminal under ‘aiding and abetting.’

Under the circumstances , this crook of a minister who robbed over Rs. 900,000.00 of the abysmally suffering foreign employment Industry and job  seekers ,under the guise of blowing balloons cannot be safeguarded by Maithripala even for the sake of his mother , when his Mother Lanka is teetering and tottering because of the economic bungling  committed by the very  regime he was representing and finally left.

The people are intently watching,  whether  the chiefs of the FCID who say they are not partial or will not kowtow to pressures ,are going to stay put without investigating  the complaints they have received ?

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by     (2016-07-05 13:50:33)

Death threats against Ven. Gnanasara Thera / PHU wants Asath Sally arrested

2016-07-05

The Pivithuru Hela Urumaya (PHU) today said Former Central Provincial Azath Sally, who was video taped allegedly threatening to assassinate Bodu Bala Sena General Secretary Ven. Galagodaththe Gnanasara Thera, should be arrested without delay. 

PHU Publicity Secretary Thushara Dissanayake told a media briefing that if the roles were reversed and it had been Venerable Galagodaththe Gnanasara Thera that had made these death threats to Sally, the outcome would have been different and the so-called law and order authorities would have acted to arrest him.

 “Azath Sally, who remained silent when ISIS terrorists beheaded innocent people claiming that their religion demanded it, without condemning the inhuman acts, has now threatened to kill a monk. We vehemently condemn his statement which is a slap in the face of sovereignty and unity among the religions,” he said. 

As making death threats to someone is a punishable offence according to the Penal Code, Sally should be arrested and dealt with according to the law.

Meanwhile Sihala Ravaya convener Ven. Magalkande Sudaththa Thera and Bodu Bala Sena (BBS) Coordinator Dilantha Withanage today lodged a complaint at the Police Head Quarters to arrest Mr. Sally. (Piyumi Fonseka) 

Sri Lankan police officers attack Jaffna businessman 05 July 2016 Sri Lankan police officers attacked a businessman in Jaffna on Friday. Two Sinhalese police constables attached to the Jaffna Police Station entered a tea shop behind Jaffna bus station. The officers, reported as being inebriated, created a ruckus after being refused discounted cigarettes and assaulted the shopkeeper with their helmets. The victim lodged a complaint with Jaffna Police Station and was informed that departmental action would be initiated against the two constables.

Yahapalanaya Has Unshackled The People & Crippled The Country

By Vishwamithra1984 –July 6, 2016

“Life always gets harder toward the summit – the cold increases, the responsibility increases” ~Friedrich Nietzsche

Typical effects of good governance (Yahapalanaya) are slowly but surely taking root in our country. The mindset of the current ‘Buruwa (bureau(cracy)’ reminds one of a frightened little boy who was once caught with his hands in the candy jar. To repeat the same deed brings thoughts of punishment but the greed has not retreated. A pathetic tragicomedy is playing out and the end of the first Act is nearing. But the audience is not responding in a patient and gentle way. On the contrary, it is increasingly getting more raucous because the dawn of illumination on reality drives them further towards impatience and more vigor. The fear factor is playing a very retarding role in that any project or venture that seeks government approval at any level, especially when bureaucratic officials become signatories, the ghosts of FDIC, Bribery Commission and media begin to haunt these known and unknown culprits who had a heyday during the last regime and the said projects get stuck. Delays become the norm of the day.

Complaints are piling up; they are not only coming from those money-grubbing commission agents who have submitted their lucrative proposals for approval; those anxious parents who want their children admitted to one of the better schools in the country are mournful; transfer-seeking servicemen and women are lining up and returning home with no satisfactory answers and its becoming increasingly unbearable.When they reach home empty handed, they tell their unfortunate stories to their friends, neighbors and working colleagues. The impressions become worse when these stories are told over and over again. It’s not a pretty certificate to brag about and the critics are sharpening their weapons. Uncertainty has become the word that describes the state of the land.

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Central Bank issue: Special Communiqué issued by National Movement for just society !

(Lanka-e-News -04.July.2016, 9.00PM)  The ‘National movement for just society’ which had discussions with the President  and the Prime minister (P.M.) individually and jointly to arrive at crucial decisions in connection with the dismissal of the former governor of Central Bank  who was steeped in corruption charges , as well as  the appointment of a new governor, issued a special media communiqué  pertaining to the new appointment . This full communiqué issued under the signature of its secretary is hereunder…

The National movement for just society extends its heartiest  congratulations to Dr. Indrajith Coomaraswamy on his appointment as the new Governor of the Central   Bank. ! If Late most Ven. Maduluwawe Sobitha Thera was living , he would have been delighted at  this appointment. 

Our effusive and heartfelt  thanks to  His Excellency Maithripala Sirisena and the Hon. Prime Minister Ranil Wickremesinghe for acting fast and indefatigably to make this appointment.

We also hereby express our heartfelt gratitude to the  activists of all  civil organizations affiliated with the Citizen’s Force and the National movement for just society  that exerted pressures to act in the best interests of the country while keeping the leaders of the country informed ; all the parties ; all electronic and print media  specially Lanka e News  website ; and all the people in general who acted with  zest and zeal to make a major contribution   towards  the new appointment made amidst a storm of controversy. 

Sisira Jayamaha 
General Secretary
National Movement for just society

Translated by Jeff

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by     (2016-07-04 16:28:00)

Deputy Minister Palitha Thewarapperuma arrested



July 5, 2016

Deputy Minister of Internal Affairs, Wayamba Development and Cultural Affairs Palitha Thewarapperuma and three others have been arrested by police on charged of unlawful assembly. 

 He had surrendered to Meegahatenna Police after being discharged from hospital.

 Earlier today police arrested the mothers of 9 students who were allegedly forcibly enrolled into the Grade One class of the Meegahatenna primary school. 

 The arrested mothers were among the parents who recently staged a protest along with the Deputy Minister demanding that 10 students be given admission to the school.  

However, the agitation and subsequent protest fast culminated with the deputy minister attempting suicide by hanging himself from a ceiling fan within the school premises. Both the deputy minister and the Principal of the school were hospitalised shortly afterwards. 

  A group of parents staged a protest against the deputy minister the following day accusing him of exerting undue pressure on the school’s principal and forcibly enrolling the students. 

  The mothers in question were taken into custody by police when they accompanied their children to school this morning.  A spokesman for Meegahatenna Police said that they were arrested on charges of unlawful assembly. 

  The nine arrested mothers were remanded till July 07 after being produced at the Mathugama Magistrate Court.
 UPDATE: Deputy Minister of Internal Affairs, Wayamba Development and Cultural Affairs Palitha Thewarapperuma and three others have been remanded until 7 July.

Presidential Advisor Chris Nonis Mum Over His Rupees One Billion Heist

July 5, 2016

Advisor to President Maithripala Sirisena, Chris Nonis continued to remain mum amidst allegations that he had pilfered Rs. 1.1 billion in a scam.

Chris and Shelendra

Employees of the Agalawatte Plantations PLC of the Mackwoods Group have accused Nonis, who was the former Sri Lankan High Commissioner to UK and his lawyer sister Shelendra Nonis Ranaweera for pilfering Rs 1.1 billion rupees from Agalawatte Plantations PLC to United Kingdom.

Even though the Colombo Telegraph sent Dr. Nonis an email containing several queries two days back on the allegation, he is yet to respond to the questions.

According to the employees, Nonis, and his sister is alleged to have hoodwinked not only the poor estate workers, who presently have Rs. 400 million owed to them on statutory (EPF/ETF) and other dues, but also the shareholders and the Directors of the Mackwoods Group, by siphoning through Nonis’s privately-owned company APL Teas (Pvt) Ltd, unknown to Mackwoods shareholders.

APL Teas (Pvt) Ltd, is jointly owned by the brother and sister duo, who have equal shares of the company. Until last month when litigation commenced, employees and shareholders were made to believe APL Teas (Pvt) Ltd is a fully owned subsidiary of Agalawatte Plantations PLC.

Several senior employees, who wished to remain anonymous, revealed that from 2005 to 2015, APL Teas Pvt. Ltd. has siphoned out Rs. 1.134 Billion in the disguise of providing marketing and promotional services to Agalawatte Plantation PLC, but the revenue of the company has never improved with such services. All those fictitious expenditures are set off against the monies due to Agalawatte Plantation PLC.

With no mention of the true owners (shareholders) of APL Teas (Pvt) Ltd in the annual reports of Agalawatte Plantations PLC, doctor-lawyer duo has robbed Rs. 1.134 Billion and most of those monies have been transferred to the UK, under the guise of ‘international marketing, branding and promotional expenses’, allege employees.

Being UK citizens Dr. Chris and his sister Shelendra have formed several companies in UK that owns multi-million Sterling Pound assets purchased from siphoned-out money, it is reliably learnt.

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Bewildering Brexit

Wednesday, 6 July 2016

A bar in Dublin has specially made a Brexit beer for the results of the British EU Referendum called ‘Big Mistake’ – Reuters

Is vesting sovereignty in the people through a supposedly democratic process to decide matters of crucial and utmost national importance a smart idea? The result of a milestone referendum had elicited chaos and confusion in the UK. The tragicomedy of the entire saga is that Brits may have not even known what they had actually voted for. Is this design, deception or deliberate destruction? Only time will tell.

The widespread ignorance of the Brits was abundantly testified by search engine research. Google reported sharp upticks in searches not only related to the ballot measure but also about basic questions concerning the implications. Google had apparently reported that searches for “what happens if we leave the EU” had more than tripled.

The final analysis is that the British people had decided to leave the EU. The stakes are huge with tremendous underpinnings to the socio-economic progress not just for Britain but the entire European region. Ramifications are many and deep. Voters in Britain by virtue of their supposedly sacrosanct ballot had decided their fate. The decision heralds a milestone in European politics. The migraine and possibly the bizarre pathology is yet to unravel.

A pertinent question that had gained currency in the last couple of days, is this sanity or lunacy? Lachrymose to exultant behaviour had manifested itself in the streets of London and elsewhere in the close vote which deeply divided the British nation. Even those who voted to get out may have felt a trifle melancholic with the gradual unwinding of the true realities. The knock-on effect could be quite seismic. Prime Minister David Cameron resigned and apparent turmoil was felt in global markets.

There is something egregiously comical about the democratic process that’s inducing a great deal of humour, I for one am trying my best to repress my irresistible proclivity to laugh out loud. Democracy is becoming trifle farcical. People are being told to vote for matters they don’t fully comprehend. It seems the media and vested groups fill the absence of genuine and substantive dialogue. They mastermind to mislead and misrepresent. Not fully absolving the people, their naiveté of being in control of their destiny is put to a rude and unceremonious test.

Contemporary man by virtue or bane of a super abundance of democracy has earned acquired a freakish psychological constitution. Easily malleable with the potential for maximum manipulation. He is startlingly capricious, inexplicably mutable and defiantly notional, qualities needed to make him act on things he does not fully understand.

The United Kingdom made its first application to join the EU in 1961 fearing political isolation within Western Europe. This application was vetoed by the French Government in 1963 with a second application vetoed by the French again in 1967. It was only in 1969 that the green light was given to negotiate for British membership. The United Kingdom joined the European Economic Community on 1 January 1973 with Denmark and Ireland. A referendum had to be held as to whether the United Kingdom should remain part of the Community. This referendum was held in 1975 with a 67% vote in favour of continued membership.

After almost 40 years of nurturing and nourishing with trillions of dollars of investments for the very survival and prosperity of UK and the Union capricious man is asked again to vote, this time too to decide whether the marriage should continue or divorce.

It’s too early to prognosticate the aftermath but tragedy looms ominously over UK. In cricketing parlance the episode could be described the following way. A well-flighted doosra is delivered tantalising in length. The batsman is drawn forward. Ball goes the other way and the batsman is left stranded in the middle quite comprehensively bamboozled.

A report published in 2000 by the National Institute of Economic and Social Research concluded that ‘detailed estimates from input-output tables suggest up to 3.2 million UK jobs are now associated directly with exports of goods and services to other EU countries’. Former Deputy Prime Minister Nick Clegg had said the following in 2011: “There are three million of our fellow citizens, men and women, in this country whose jobs rely directly on our participation and role and place in what is after all the world’s largest borderless single market with 500 million consumers right on our doorstep.”

Does democracy contribute in any way to commit political suicide? We certainly have one in the making.

The ultimate loser in any democracy today whether it’s the United Kingdom, United States or Sri Lanka is the ordinary Joe or the ordinary voter. Ironically and disingenuously he is conferred regalia. In reality he has to face the brunt of all corruption, indiscretion, misrepresentation, arrogance and ignorance of his elected representatives by way of higher cost of living, higher taxes, draconian laws and huge amounts of politically distilled demagoguery.

The ordinary voter continues to adorn himself with the mantle only till another batch of rascals screw him in style and leave a putrid legacy for him experience more than mere respiratory problems.

It seems this cycle will continue till the second coming of Jesus, son of Mary. As for me I’ve had enough. I am running with a baseball bat towards the monkey cage.

UNHRC ADOPTS LGBT RIGHTS RESOLUTION; CHINA, RUSSIA AND OIC OPPOSE

( The vote; image by rappler.com)

04/07/2016

The U.N. Human Rights Council  adopted a resolution against anti-LGBT violence and discrimination at just concluded its 32 session by majority vote. The resolution calls  for establishing a mandate on protection against violence and discrimination based on sexual orientation and gender identity. Cube and Viet Nam  supported the resolution while China, Russia and member countries belongs to Organisation of Islamic Countries excerpt Albania opposes the resolution.

“In a historic vote the UN Human Rights Council has created an Independent Expert dedicated to sexual orientation and gender identity issues. The expert will work to combat and prevent violence, hatred and discrimination. ” says a ISHR, based in Geneva.

The International Service for Human Rights’ programme manager, Pooja Patel, has said the outcome was a fantastic win for lesbian, gay, bisexual and trans people all around the world.

‘This is a tremendous outcome and very timely. In all countries, in all regions, from Orlando to Bangladesh, LGBT people are subjected to hate and violence and it must be combatted at every level including at the UN,’ said Ms Patel.

During the epic three hour vote, the original resolution proposed jointly by the Governments of Argentina, Brazil, Chile, Colombia, Costa Rica, Mexico and Uruguay was watered down by a series of amendments led by regressive countries like Russia and members of the Organisation of Islamic Cooperation such as Pakistan, Egypt and Saudi Arabia, which pledged not to cooperate with the Independent Expert. Ms Patel noted that non-cooperation with the Council’s mechanisms is fundamentally incompatible with Council membership.

‘Universal human rights means all human rights for all people everywhere, so it’s regrettable that a number of hostile amendments adopted actually inserted discredited notions of cultural relativism into the text,’ said Ms Patel.

OHCHR summary of the debate (edited) and adoption of the resolution  follows:

Council establishes mandate on protection against violence and discrimination based on sexual orientation and gender identity.

In a resolution (A/HRC/32/L.2/Rev.1) on protection against violence and discrimination based on sexual orientation and gender identity, adopted by a vote of 23 in favour, 18 against and 6 abstentions as amended, the Council decides to appoint, for a period of three years, an Independent Expert on protection against violence and discrimination based on sexual orientation and gender identity, with the mandate to assess the implementation of existing international human rights instruments with regard to ways to overcome violence and discrimination against persons on the basis of their sexual orientation or gender identity; raise awareness of violence and discrimination against persons on the basis of their sexual orientation or gender identity, and to identify and address the root causes of violence and discrimination; and engage in dialogue and to consult with States and other relevant stakeholders. The Council also requests the Independent Expert to report annually to the Human Rights Council, starting from its thirty-fifth session, and to the General Assembly, starting from its seventy-second session.

The result of the vote was as follows:

In favour (23): Albania, Belgium, Bolivia, Cuba, Ecuador, El Salvador, France, Georgia, Germany, Latvia, Mexico, Mongolia, Netherlands, Nigeria, Panama, Portugal, Republic of Korea, Slovenia, Switzerland, The former Yugoslav Republic of Macedonia, United Kingdom of Great Britain and Northern Ireland, Venezuela, and Viet Nam.

Against (18): Algeria, Bangladesh, Burundi, China, Congo, Côte d’Ivoire, Ethiopia, Indonesia, Kenya, Kyrgyzstan, Maldives, Morocco, Namibia, Qatar, Russian Federation, Saudi Arabia, Togo, and United Arab Emirates.

Abstentions (6): Botswana, Ghana, India, Maldives, Philippines, and South Africa.

Chile, introducing draft resolution L.2/Rev.1 on protection against violence and discrimination based on sexual orientation and gender identity, recalled that to date the Council had already endorsed this issue through two resolutions. The High Commissioner had issued a report underscoring the need for a mechanism focusing specifically and comprehensively on this matter. The resolution aimed to fill this gap.

Uruguay, also introducing draft resolution L.2/Rev.1, said that this type of violence required a specific response from the Council, which was why the resolution established a new mandate. The Council was already dealing with many types of violence and discrimination, and now needed to fill the gap and ensure the protection against violence and discrimination on the ground of sexual orientation and gender identity.

Brazil, also introducing draft resolution L.2/Rev.1, said that this initiative sought to promote much needed dialogue to put an end to violence and discrimination on the ground of sexual orientation and gender identity, on the basis of international human rights instruments and the Vienna Declaration and Programme of Action. The draft resolution had been translated in all official languages of the United Nations, and broad consultations had been conducted. Brazil called on all delegations to vote in favour of this text, and in favour of leaving no one behind.

Action on No-Action Motion

Saudi Arabia took the floor on a point of order to request a no-action motion, saying this was a last attempt to make co-sponsors understand the consequences of this deeply divisive proposal that failed to recognize cultural differences. The draft was contrary to international human rights law and would disregard the universality of human rights, Saudi Arabia said, calling on the main co-sponsors to reconsider the consideration of this draft resolution.

The President said he would give the floor to two speakers for the no-action motion and two speakers against it.

Mexico, taking the floor, on L.2/Rev.1, said that it opposed categorically the non-action motion and asked that it be put to a vote. Mexico deplored countries which took refuge behind a procedural rule to prevent the Human Rights Council from speaking on an initiative. It was the responsibility of the Council to openly address those situations which undermined human rights around the world. The international community might have diverging points of view, but closing the dialogue should not be an option to hinder progress on human rights protection. The no-action motion made it impossible for the Council to address those issues. Voting for the motion was tantamount to avoiding the responsibility that States had accepted when they became members of the Council and it would ignore the suffering of thousands. All were encouraged to reaffirm their support for the mechanisms of the body they had decided to be a part of. Mexico called for the motion to be rejected.

Panama rejected the no-action motion and said that it was clear that what was sought was an escape route. It was imperative that the Council addressed all forms of violence and discrimination against people. All were called on to vote against the no-action motion.

Bangladesh expressed support for the proposal made by Saudi Arabia.

Nigeria took the floor on behalf of the Organization of Islamic Cooperation, with the exception of Albania, and spoke in favour of the no-action motion on draft resolution L.2 as requested by Saudi Arabia. The Organization of Islamic Cooperation believed that the draft resolution L.2 was divisive and was concerned that the lack of definitions of sexual orientation and gender identity and the attached human rights and fundamental freedoms carried certain responsibility for States. The controversial views of those issues could not be imposed by some Member States. The adoption of the resolution would ensure that the attention on sexual orientation and gender identity issues as seen by the Western States would take root in the United Nations, without taking into account the views of a large number of States. The draft resolution was highly divisive and would create rancour within the Council which now should be focusing on its core agenda.

The Council rejected the no-action motion by a vote of 15 in favour, 22 against and nine abstentions.

Mexico, speaking on behalf of the core group of sponsors in an explanation of the vote before the vote, noted that many proposed amendments would have gone against the purpose of the draft resolution. Fortunately, they had been rejected. The main objective still stood, which was the appointment of an Independent Expert; the main purpose would be fulfilled even if the draft resolution was amended. Mexico urged all Member States to be consistent and to vote in favour of the draft resolution in order to give hope to millions of persons.

Philippines, speaking in an explanation of the vote before the vote, stated that it was its practice to protect human rights and fundamental freedoms for all. It had stood against discrimination based on sexual orientation and gender identity. However, a human rights mandate holder specific to lesbian, gay, bisexual, transgender and intersex rights would run counter to the universality of human rights. 

Philippines expressed hope that this would not derogate the rights of States and impinge on their sovereignty. The creation of a mandate holder would apply a set of rules specific to a certain sector on which there was no international agreement. Thus, the Philippines would abstain on the draft resolution.

Russian Federation, speaking in an explanation of the vote before the vote, said that authorities in Russia carefully investigated and prosecuted all cases of violence and discrimination. Elements of private life were deeply individual choices, and they did not need a particular system of protection. International law, and national law in Russia, was extended in all areas equally, including women, ethnic or religious minorities or homosexuals. The Russian Federation noted that many thousands of years of development was carried out by those who did not make such a private choice, and the Russian Federation regretted that the co-sponsors of this resolution were trying to prevent others from defending their own views. The Russian Federation would vote against the creation of this mandate, and should it be established nonetheless, it would not cooperate with it.

Saudi Arabia, speaking in an explanation of the vote before the vote, said that this draft resolution went contrary to its sacred values. It sought to impose issues that were prohibited by Saudi Arabia’s religion. This had nothing to do with discrimination or violence. The adoption of this mandate holder would lead to discussions on controversial issues that the Council would never be in a position to impose on Saudi Arabia. Saudi Arabia would vote against this text, and would not cooperate with the Independent Expert.

South Africa, speaking in an explanation of the vote before the vote, noted that no person should be subjected to discrimination or violence on any ground, including on the grounds of sexual orientation and gender identity. South Africa’s approach to the protection of lesbian, gay, bisexual, transgender and intersex persons was focusing on maximum unity within the Council. The draft resolution added unnecessary divisiveness, building on the previous African initiative of 2012. It was an arrogant approach. Recklessness and point scoring would not take anyone anywhere. South Africa could not support the resolution as it stood and would thus abstain.

Botswana, speaking in an explanation of the vote before the vote, noted that its Constitution did not condone violence against any person. It had to be noted, however, that at the international level there was no accepted terminology on gender identity and sexual orientation. In that regard, it was important to respect local cultural, religious and historic circumstances and values.

Nigeria, speaking in an explanation of the vote before the vote, observed that the draft resolution had a lot of defects in substance and form. States had the right to make laws for the good governance of their people. That right could not be hijacked by other States to impose offensive practices. The selection of mandate holders had to be transparent. However, the procedure building up to the draft resolution had not been transparent. The Council was not yet ready for an Independent Expert on gender identity and sexual orientation as lesbian, gay, bisexual, transgender and intersex rights did not enjoy the kind of general acceptance necessary for their adoption as universally accepted rights. For those reasons Nigeria would vote against the draft resolution.

Viet Nam, speaking in an explanation of the vote before the vote, welcomed efforts to combat violence and discrimination, and would vote in favour of the draft resolution. Viet Nam stressed that the mandate holder endorsed in the draft should discharge his or her duty strictly in line with the code of conduct. Differences among societies had to be respected. That was the principle under which Viet Nam had voted on the amendments.

Indonesia, speaking in an explanation of the vote before the vote, reaffirmed its commitment to the elimination of violence against all persons as defined in international human rights treaties. The Council should take a constructive and cooperative approach, especially when concerned with issues touching on morality. Members of the Council should refrain from imposing values which did not enjoy international consensus. Indonesia was concerned that the draft resolution was divisive. While welcoming several amendments, Indonesia considered that the basic proposal remained the same, and for that reason was unable to support the draft resolution. Indonesia also wanted it put on the record that Indonesia would not engage with the mandate holder.

Albania, speaking in an explanation of the vote before the vote, commended the leadership of the core group protesting against violence based on sexual orientation and gender identity. Violence against any individual was condemned, and the inherent dignity of all individuals should be upheld. The protection from violence of lesbian, gay, bisexual, transgender and intersex persons was a priority for the Albanian Government. The aim of the draft resolution was to appoint a Special Procedure mandate holder, who could work on protection against violence and discrimination based on sexual orientation and gender identity. The current text of the resolution did not seek to create any new rights, but affirmed the application of existing human rights standards.

France, speaking in an explanation of the vote before the vote, said that it did not subscribe to the amendments brought to the text, which were contrary to the universality of human rights. France would vote in favour of the text, which was useful to enhance the fight against violence or discrimination on the ground of sexual orientation and gender equality.

Morocco, speaking in an explanation of the vote before the vote, regretted that the draft was dividing the Council, when the tenth anniversary of the Council should have been an opportunity to promote consensus. This text ran against the beliefs of more than 1.5 billion people in the world. Islam was a religion of non-violence, and Morocco had made great commitments in that regard. But today it was forced to call on all States to vote against this text, in order to support those outside the United Nations who expected the Council to protect their culture and values.

Algeria, speaking in an explanation of the vote before the vote, reiterated its opposition to all types of violence or discrimination. However, it believed that it was not useful to impose values upon others. Sexual orientation was a private matter, and Algeria rejected appointing a mandate holder on this issue.

Ghana, speaking in an explanation of the vote before the vote, reminded that in 2013 the African Commission on Human Rights had adopted a resolution on the protection against violence and other human rights violations on the basis of gender identity. It was adopted against the background of alarming human rights violations against individuals because of their sexual orientation and gender identity. The current discussion was taking place against the background of the Orlando killings. The laws of Ghana would not permit any individual to be persecuted because of their sexual orientation. However, the matter was culturally very sensitive in Ghana. Ghana supported those who were naturally inclined to have a different sexual orientation, but it did not accept the propagation or commercialization of it. It would therefore abstain.

Namibia, speaking in an explanation of the vote before the vote, opposed any violence against individuals based on sexual orientation and gender identity. All persons in Namibia were equal under law. Lesbian, gay, bisexual, transgender and intersex persons were able to participate in government services. However, there was no internationally agreed definition of sexual orientation and gender identity, which left a lacuna in law. Namibia was concerned about the mandate of the Independent Expert and thus it would abstain.

United Kingdom, speaking in an explanation of the vote before the vote, said that although the resolution had been amended, its fundamental aim had been retained. The draft resolution did not ask countries to change their legislation. It urged States to vote in favour of the draft resolution in order to protect some of the most vulnerable persons in society. It would give hope to many people around the world. A vote in favour would be a vote of solidarity for the countless victims of discrimination around the world.

Netherlands, speaking in an explanation of the vote before the vote, expressed gratitude to the sponsors for their thoughtful concept note. The Netherlands did not believe that the international community had to wait for absolute unity. It was important not to fail persons who belonged to minorities. The Netherlands had not supported the inclusion of a number of preambular paragraphs. If one looked at the package, universality still prevailed, and that remained the Netherlands’ perspective.

The Council then adopted resolution L.2/Rev.1 by a vote of 23 in favour, 18 against and six abstentions.

OHCHR

Situation Report: Three Blasts Rock Saudi Arabia

BY DAVID FRANCIS, ADAM RAWNSLEY-JULY 5, 2016

Bombings rock Saudi Arabia: With the holy month of Ramadan drawing to a close and just ahead of the Eid al-Fitr holiday, Saudi Arabia was rocked by a series of attacks Monday. One occurred in Medina, close to the Prophet’s Mosque — one of Islam’s holiest sites — killing at least four people and wounding another. The second took place near the U.S. consulate in Jeddah, where a suicide bomber was killed and two police officers were hurt.

Earlier Monday, at least one, and possibly two, explosions were heard in the eastern Saudi city of Qatif. Still no clear take on casualties there, but local reports indicate body parts were visible, thought to belong to the attacker or attackers.

The Islamic State had a good week: The terror group has yet to claim responsibility for the Saudi strikes. But Riyadh has been in its crosshairs for months.

Whatever the case, the caliphate has claimed credit for a series of other attacks around the world this past week. FP’s David Francis: “On Tuesday, suicide bombers killed at least 44 at Istanbul’s Ataturk Airport.
In Dhaka, Bangladesh, on Friday, gunmen stormed a restaurant in the city’s diplomatic zone and killed at least 20 people, most of them foreigners from Italy, Japan, India, and the United States; the Islamic State has claimed credit for the assault.”

“The Islamic State [also] claimed responsibility for the early Sunday morning attack in central Baghdad, where a minivan packed with explosives blew up and killed at least 165 people, according to the BBC. On Monday, CNNreported that number had reached 200.”

Sway far beyond the self-declared caliphate: The Pentagon often claims gains against the terror group inside Syria and Iraq. But the list of global incidents by those connected to, or who claim to be inspired by, the group continues to grow. FP’s Francis: “So far, attacks carried out by fighters claiming affiliation with the terror network have taken place in the United States, across Europe, and in Kuwait, Libya, Afghanistan, Nigeria, and Tunisia. In many of these cases, however, it’s not clear if there was any direct coordination with the Islamic State; attackers could simply claim inspiration by it.”

Welcome to your post-July 4th Situation Report. Hope you were able to celebrate the original Brexit with friends and family. Your regular presenter, Paul McLeary, is off on a well-deserved holiday. So I’ll be taking charge this week. You can reach me at david.francis@foreignpolicy.com or either me or Adam on Twitter @davidcfrancis and @arawnsley.

South China Sea

China is trying to sweet talk the Philippines into ignoring a forthcoming decision by an international tribunal on South China Sea maritime territorial claims. Reuters reports that China is holding out the promise of negotiationswith the Philippines, which could include “joint development and cooperation in scientific research” in areas claimed by both countries. The offer is good only if Manila agrees to set aside the decision of the Permanent Court of Arbitration in The Hague, set to be handed down on July 12. China has been waging a prebuttal campaign against the court’s as-yet unknown decision. The Philippines brought the case before the panel in 2013.

North Korea

The North Korean threat has literally grown, according to South Korea’s intelligence service. The spy agency now believes that the famously cherubic Kim Jong Un has put on 90 pounds since his ascension to the leadership of the Stalinist dynasty that rules the country. A South Korean legislator shared the intel shop’s conclusions with the country’s National Assembly, adding that the North Korean leader is believed to be binge eating and drinking. All that excess is reportedly causing Kim health problems like insomnia.

Syria

The Pentagon-backed anti-Islamic State fighters from the New Syrian Army (NSA) are off to a rough start. The roughly 1,000-strong force of Syrians organized by the United States tried to take back the town of Boukamel in northeast Syria with the help of U.S. airstrikes. The battle, the NSA’s first so far, failed, forcing members to retreat to their headquarters in Tanf after a six-hour fight that cost them four troops. Previous attempts by the Defense Department to cobble together anti-Islamic State forces have met with failure as recruits have either dropped out or surrendered their weapons to al Qaeda-linked forces in Syria.

Iraq

The massive suicide bomb that killed more than 200 people in Baghdad last week has put new focus on old, fraudulent bomb detectors and the corruption that has placed them on the frontlines of Iraq’s war with the Islamic State. In the wake of the bombing, the Washington Post reports that Iraqis are now directing their outrage at legions of fake bomb detectors, bought by the Iraqi government at exorbitant prices and used by security personnel to screen for explosives at government buildings and sensitive facilities. Iraqi Prime Minister Haider al-Abadi has responded to the outpouring of anger by ordering that the detectors be scrapped. The ADE-651 detectors are descended from fake golf ball finders sold by a con-man convicted for fraud in the U.K. in 2010.

Turkey
Turkey has made another gesture to try to heal its rift with Russia after the November 2015 downing of a Russian fighter jet by Turkish forces. Turkish Foreign Minister Mevlut Cavusoglu now says that Turkey is willing to work with Russia to target the Islamic State and issued a vague hint that it couldopen Incirlik Air Base, which has played host to U.S. F-16 fighter jets, to Russian military aircraft. The statement follows a written apology sent from Turkish President Recep Tayyip Erdogan to Russian President Vladimir Putin for the downing of a Russian Su-24. At the time, Turkey said the Russian jet violated its airspace along the border with Syria.