Monday, August 28, 2017

Sri Lanka’s dangerous quest for cash from China and India

Between dragons and elephants:

By SANJA DE SILVA

JAYATILLEKA-August 27, 2017, 8:33 pm

"As the stand-off between the Indian and Chinese militaries enters its third month at Doklam…The entire neighbourhood is watching"-Suhashini Haider, The Hindu, 11.8.2017

There is a situation brewing about four kilometres away from the "crest of the mountain range separating the waters flowing into the Sikkim Teesta and its affluents from the waters flowing into the Thibetan Machu and northwards". These lyrical words in the 1890 Tibet-Sikkim Convention between the British and Qing Empires, define the boundaries between China and Bhutan, which China cites in its claim for territory at the border in Doklam in its on-going dispute with India since June this year.i

Sudheendra Kulkarni, head of Observer Research Foundation, writing on the 22nd of August 2017 warned that "…the current deepening mistrust between India and China…even carries the seeds of an armed conflict over the prolonged military standoff at Doklam."

India’s other neighbours are watching the situation closely, but is Sri Lanka? Nepal’s Deputy Prime Minister Krishna Bahadur Mahara has already said it "will not get dragged into this or that side in the border dispute".

While border disputes are common on the India-China border, and the foreign editor of the Hindustan Times, Pramit Paul Chaudri writes that it is almost a weekly event along the disputed Himalayan border, there is something different about this particular dispute. Indian commentators point out that it is the first time that "it is not taking place in Indian soil or Indian claimed territory".ii

Today, as both countries expand their interests regionally and globally, Chaudri points out that India and China are "more likely to run into each other in third countries". In the context of the rapidly changing dynamics between these two emerging powers in our region and indeed globally, Chaudri argues that "a new set of understandings will need to be worked out in the coming decades. Unfortunately, as has happened in the past, it will take a number of crises at a number of flashpoints to occur before New Delhi and Beijing accept the goalposts have shifted and the playbook needs to be updated."

Of great concern to Sri Lanka is his conclusion that "it is in this transition period during which miscalculations are most likely to happen."

Why is the Doklam stand-off of relevance to Sri Lanka? It brings home sharply the vulnerabilities inherent in the current relationship between China and India, which has now for the first time, spilled over into the territory of another country, Bhutan. And with each day, the tensions have escalated. There have been stones thrown at each other at the border. Unprecedentedly, the most recent reports indicate some acts of physical aggression, although Chaudri writes that, "none of the soldiers carry weapons and have had no physical contact".

There is a perception at least in some Indian diplomatic circles that Doklamrepresents an act of arrogance on the part of China. Jeff M.Smith, Director of Asian Security at the American Foreign Policy Council writes in a piece entitled ‘High Noon in the Himalayas’ that "One senior diplomat…recently explained to me that the PLA’s border activities are orchestrated by Beijing…They are designed to embarrass India’s leadership…underscoring Modi’s inability to secure India’s sovereign borders…No issue has garnered more friction than China’s creeping inroads into both the Indian Ocean and the subcontinent."iii

The danger to Sri Lanka’s lies in this perception, in view of the plans to lease for several decades the Mattala airport to India, less than 24 kilometers away from the Hambantota seaport and a large swathe of surrounding land which has been leased to China for 99 years. Sri Lanka has to be suicidal to even consider leasing this airport to India, situated so close to the Chinese owned (at least for the next 99 years) seaport of Hambantota. Standing empty at the moment, India’s interest in it is surely not for Mattala’s enormousprofitability. And no one could be more aware of this than China.

It is commonly believed that India played a role in Sri Lanka’s change of government at the elections held two years ago which brought the Unity Government to power. However, while the leader of the UNP promised during campaigning to shut the Colombo Port City project as soon as the ‘unity’ coalition wins, and did stop all work there and in Hambantota for several months, which must have pleased the Indian Government not to mention the other geopolitical player in the region, the United States, the new government re-started the projects on far more favourable terms to China so as to compensate the latter for the losses incurred by the disruption.

Suhashini Haider puts it bluntly when she writes that "India must recognize that picking sides in the politics of its neighbours makes little difference to China’s success…" She recognizes that Sri Lanka and indeed the Maldives did little to change course after their governments changed and calls India’s UPA’s role in these outcomes a mistake. She also states that India was accused of bringing Pushpa Kamal Dahal aka "Prachanda" to replace Prime Minister Oli in 2016 in Nepal.She urges the Indian government that doing better with its neighbours "is about following a policy of mutual interest and respect".

While many hope that the Doklam stand-off may get resolved when the leaders of both countries attend the BRICS summit in the first week of September, some worry that it will depend on whether the "boundary contest escalates in to a full blown India-China crisis...It might just push New Delhi to weigh options for a bilateral deal with the US".ivThis will have far reaching consequences for the region.

In a different time, in the past, Sri Lanka which cannot remain unmindful of developments in the region, could have been expected to play a role to defuse tensions. Nimmi Kurian,Associate Professor at the Centre for Policy Research, New Delhi and Faculty Advisor, India China Institute at The New School, New York, describes the growing dispute in Doklam as "the larger normative contest between India and China for regional leadership". She laments that "India’s crisis of diplomacy has often worked without a credible notion of what the endgame is". (This description seems far more apt for the Unity Government of Sri Lanka than for India.) However, she offers a solution. She asks if "as a possible exit strategy from the stand-off, could India signal some sort of a qualified engagement in the OBOR initiative?" She contends that this is not so far-fetched since India is already a participant in AIIB and the Bangladesh- China- India- Myanmar Economic corridor. One can only hope that the BRICS summit will provide the platform to explore such strategies.

Colombo’s Unity Government made much of the large debt it is supposed to have inherited when it assumed power two years ago, and announced to the country that it had no option but to lease Hambantota to China to settle those debts. Unfortunately things didn’t stop at that. Since then, it has been looking to sell as many assets as it can to other countries/foreign companies for ready cash. The Government’s policy makers seem unable to find another way which doesn’t endanger Sri Lanka’s national interest. They seem loath to even consider exercising the critical restraints on ownership by limiting foreign investment to a proportion which ensures Sri Lankan control of the assets.Their first priority seems to be to sell something to India, ostensibly for more cash, but more likely to appease and reassure it that Sri Lanka is not veering in the direction of China and is willing to balance off China by readjusting toIndia’s geopolitical ambitions.

On his visit to Delhi, the PM was in discussion with India about leasing Sri Lanka’s most treasured asset, the Trincomalee harbor, amidst protests by the Opposition, trade unions, professional associations and citizens. But now the government has embarked on a project that may turn the deep south of our country into a needlessly "disputed area", by invitation.

Shashank Joshi, Senior Research Fellow of the Royal United Services Institute in London, writes that "Even before the [Doklam] crisis, India-China relations were at their lowest ebb in a decade."v He suggests three reasons that may have contributed to India’s sense of grievance as "Beijing’s growing support for Pakistan, the sweeping Belt and Road Initiative (BRI), obstruction of India’s efforts to join the Nuclear Suppliers Group (NSG)." As for China’s attitude towards India, Joshi suggests that a geopolitical factor that may have influenced it as "India’s growing relationship with the United States and Japan…" in addition to feeling "slighted by India’s public denunciation of BRI in May."

These unresolved and burgeoning issues at the heart of the relationship between these two regional giants (one of which is a global economic giant) who are solicited to make heavy investments in Sri Lanka, have to be factors in Sri Lanka’s own foreign policy, strategic and security calculations.

What is the government thinking? The supposed competence at economics and foreign affairs of the UNP, the decision making partner of the Unity Government, is increasingly looking like just a shadow of a glorious past, artificially enhanced by PR firms more recently. The President is either unwilling or unable to steer the county in the right direction in this time of complex geopolitical contestation, a task he has abdicated to the Prime Minister, whom he considers vastly more proficient in such matters than he. The citizens are now more than ever concerned that all this falls far short of what it takes to run a country.

Iskander L. Rahman, a former associate in the Nuclear Policy Program at the Carnegie Endowment, writing on the Doklam stand-off,quotes a Bhutani journalist’s wry comment that they have so far avoided "both the fire from the Dragon on our heads and also the Elephant’s tusks in our soft underbelly". It is hoped that Sri Lanka does not voluntarily prepare a battleground on its soil for Dragons and Elephants to test their relative strengths. We will not survive it as a single county.

Extremist groups to Wijedsasa’s support

Aug 27, 2017

Bodu Bala Sena, Sihala Ravaya and other extremist groups have got together to protect Wijedasa Rajapakshe from accusations after he was removed from his ministerial position. They have been saying that his removal was the result of a conspiracy within the government. They also say a clean, common candidate would be fielded in 2020.

Reliable sources say Rajapakshe has been having links with these groups for some time now. He has been under pressure for dealing with extremist groups while being a powerful minister of a government that gives priority to reconciliation.

Political analysts question his strong objections now, after keeping silent all the while when the agreement relating to the Hambantota port was before the cabinet and when the Attorney General’s Department which was under him declared the agreement to be consistent with the constitution.

Janitha Prasad Senanayake

Sunday, August 27, 2017

A minister’s removal cannot heal the ‘beggars wound’ of high corruption

Sunday, August 27, 2017

The agitated pleas of the ruling United National Party (UNP) parliamentarians that they became ‘fully aware’ of former Justice Minister Wijayadasa Rajapakshe allegedly stalling corruption cases against the Rajapaksa clan only now, must be taken with more than a pinch of that proverbial salt.

Overstepping the line a long time ago

That explanation, as rich as it is, is a tad too disingenuous to swallow in one gulp. Let me be clear. If the basis for the ejection of the Minister was the violation of the principle of collective Cabinet responsibility, that is another matter altogether. But the Government should not try to ride high on the removal and hold out that the one obstacle to a successful anti-corruption drive has now been disposed of. That will only be accepted by the exceedingly naïve.

For if one fact was clear in this messy saga, it was that the former Justice Minister was overstepping the line a long time ago, with little consequences from the party hierarchy. There are many examples. Six months into the new Government being installed for instance, he questioned if it would be correct to allow former Secretary to the Ministry of Defence Gotabhaya Rajapaksa to be arrested under anti-terror legislation as this was a ‘law implemented against Prabhakaran.’ His claim was that, if so, this would be to ‘make a Prabhakaran’ out of the former Defence Secretary (Hiru talkshow programme, Salakuna, December 15, 2015).

The personal partiality and categorical bias reflected in that exchange was unbelievable. It is not the business of a Justice Minister to declare as to what individuals a particular law should apply to. That is the function of the courts. And in any event, the sham ‘patriotic’ fervor in that question is contradicted in a practical sense. The Rajapaksas themselves had little compunction in using anti-terror laws against the celebrated ‘war-winning’ Army Commander Sarath Fonseka. Several of his body guards were arrested under emergency law.

Is the dismissal too little, too late?

So there is no impunity protecting the former Secretary of Defence and the former President’s brother from arrest under the law which applies to whatever offence that an individual is accused of. The law is the standard as applied/investigated/prosecuted by the very institutions that the former Minister pleads with considerable fervor that he could not have ‘interfered with.’ He cannot hide behind that cover and privilege some over others. The same reasoning was evidenced in his defence of the private maritime security firm Avant Garde, accused of maintaining a floating armoury of purportedly illegal weapons in the Galle harbour, when investigations were ongoing.

So this behaviour on his part was certainly not of recent duration. Protests to the contrary do not ring very convincingly in our ears. For the Government, the question now is if this dismissal is too little, too late. Certainly there has been a huge dent in its good governance credibility shield. The former Justice Minister has protested that his removal was to pressurize the Department of the Attorney General in regard to stepping back from hard action in ongoing hearings before the Presidential Commission of Inquiry investigating the infamous Central Bank ‘bond scam’ under this Government. He has claimed that the Attorney General was summoned and castigated by the Government. In turn, the Attorney General has stoutly refuted this allegation and said that it was he himself who requested a meeting on behalf of the Department with the Prime Minister. The public will wait to make a judgment on this matter.

In particular, let us see if a 2008 amendment to the COI Act (1948) which conferred new powers upon the Attorney General to “institute criminal proceedings in a court of law in respect of any offence based on material collected in the course of an investigation or inquiry, as the case may be, by a Commission of Inquiry” will be made use of in this regard. The fact of this amendment was first pointed to in these column spaces (‘The classic dilemma of the unrepentant ministers’, Focus on Rights, August 6, 2017).

Addressing core failures of the legal system

And to be perfectly clear, the absence of political will is not limited to stalled corruption cases. Core problems bedeviling the criminal justice system are still not even sought to be redressed. These include chronic laws’ delays in emblematic cases of killings, extra-judicial executions and enforced disappearances along with pending cases on thievery of state funds.

The Ministry of Justice, other countless outfits working on the Rule of Law from 2015 hand in glove with the Government as it were, including the Bar Association of Sri Lanka, should have advocated for and pushed through policy changes and monitored ongoing cases. The overhaul should have been comprehensive. If this had happened in the North and East, it would have taken the sting away from the (justifiable) fury that the Government has done nothing but talk of an elusive transitional justice. Most importantly it would have alleviated the pain of family members of victims. That did not happen. That is shameful. Similarly, this effort would have deprived the Rajapaksas of their exceedingly false cry of victimhood in the South.

Human resource shortages at the Attorney General’s Department and the Criminal investigations Department are quoted as cause for why the law splutters. Rectifying that problem is the responsibility of the Justice Minister. But the former incumbent seemed to only luxuriate in inflammatory declarations with little else to show. Certainly when a Minister fails the responsibilities of his portfolio, he cannot hide behind the mantra of saying that he ‘did not want to interfere with independent institutions.’

Making up ‘our own minds’

So we return to the initial question underlying the introductory paragraphs of this column. Will the departure of this Minister make a difference to the trajectory of Sri Lanka’s anti-corruption efforts? As pointed out previously, the octopus-like tentacles of corruption reach into the highest places of government, then and now.

The UNP’s silence for more than one and a half years while this beggar’s wound festered and its hysterical effort to prevent the truth regarding the Central Bank bond scandal is telling. It will take a considerable effort to rid itself of allegations of bad faith that cling so persistently to it, much like an unpleasant smell.

Undoubtedly, the people will ‘make up their own minds about the Government’ as the former Justice Minister exhorted with passion following his dismissal this week. Yet, it is a stretch to think that sympathy for him will feature prominently in that equation. That much is quite evident.

Kandy Traffic Problem: Congestion, Pollution & Kandy Kassa

Photo credit – Facebook I Love Kandy

By Siri Gamage –AUGUST 28, 2017

Dr. Siri Gamage

Recently I spent two weeks at Peradeniya on a family visit. During this time, I used public transport between Kandy and Panideniya on Peradeniya road. The period coincided with Kandy Perahara and there was additional traffic. Nonetheless, I was appalled to observe the conditions on the road and the difficulties the public including school children and parents face. Here, I explain the issues and possible solutions in the hope that authorities in the Yahapalana government will take note.

Congestion

The road from Kandy to Peradeniya is about 5 kms. From Peradeniya there is another 2 kms to Panideniya on lower Gampola road passing Peradeniya railway station. This part of the road is in a terrible state (However, there is some activity on ground to expand and renovate this section). One day I spent 1.5 hrs in a bus to move between Kandy and Mulgampola during peak hour. Distance is about 3 kms. The congestion was so bad that vehicles moved at snails phase. Reasons for this congestion are manifold:

1. There are two lanes going from Peradeniya to Kandy in the upper road (Uda Para). However, only one lane from Kandy to Peradeniya. Thus there is less space for buses, trucks etc to move faster.

2. Three wheelers fill the gaps when vehicular traffic moves as well as not move. They don’t follow traffic rules.

3. Excessive number of vehicles on road. There are cheaper Indian made, Malaysian and other cars on road. I even saw a car in a size of a three-wheeler.

4. No attempt has been made to widen the road and introduce additional lanes in the upper road (Uda Para). Instead the strategy has been to develop alternate roads (e.g. Lower road/Yata Para)

Solution

1. Widening the Upper road and introducing another lane from Kandy to Peradeniya

2. Constructing an overpass from Kandy to Peradeniya (less preferred)

3. Constructing a driverless Sky Train (as in Bangkok) above ground with public-private partnership. Have several stations in between.

4. Along with 3 above, construct a wider footpath and a cycleway above ground between Kandy-Peradeniya (Important for modern lifestyle purposes. Shoppers and tourists can use. Cycles ought to be available at both ends for hire).

Pollution

Poojitha is liable under ‘Convention against torture’ and under sections 343 and 344 of Penal code too- a former IGP

(Lanka-e-News - 27.Aug.2017, 5.30PM) IGP Poojitha Jayasundara who threatened and assaulted the lift operator within the police headquarters , which was exposed by Lanka e news supported by a video footage is a very grave offence according to a former IGP who spoke to Lanka e news. The present IGP is therefore not only liable under the ‘Convention against Torture’ but also under sections 343 and 344 of the Penal code , he added.

Section 343 …
Whoever assaults or uses criminal force on any person otherwise than on grave and sudden provocation caused by that person shall be punished with imprisonment of either description for a term which may extend to three months, or with fine, or with both

Section 344 …
If a public servant when in the lawful execution of the duties is deterred from by use of criminal force, or if such attempts are made, and as a result of which the public servant is harassed or is assaulted , whoever caused that is liable to a sentence of a maximum period of two years in jail or a fine or both .

Based on the above , the present IGP has violated both sections of the penal code , according to the former IGP . That is , Poojitha Jayasundara as the head of that department has obstructed the lift operator who is a public servant in the execution of his duties without valid grounds.

Hence under section 344 of the penal code if Poojitha is arrested and produced in court , since the magistrate has no powers to grant bail in such an offence , Poojitha necessarily will have to be remanded in which case Poojitha will have to be enlarged on bail only by the high court ,the former IGP clearly pointed out.

The former IGP also went on to comment that he deeply regrets the misbehavior of Poojitha , which is definitely not in conformity with the rank of the IGP , and is most inhuman , he added.

‘What will happen if an IGP instead of conducting himself like a father to the staff becomes adevil ? Now, it is a long time since this incident occurred. It is also a long time ago the complaint was made to the president of the Constitutional council. In other words government’s political leaders have been suppressing this incident. That reflects poorly on a government which calls itself good governance . The world is watching . If Poojitha despite being an IGP if he behaves like a murdererand kills somebody , aren’t laws going to be enforced against him?

The last government towards the end also faced charges based on lawlessness , and not upholding the rule of law. Owing to the misconduct of the present IGP the present government too can be similarly accused. When that happens it will be a stigma to the government and the country as a whole’ the former IGP pinpointed with concern.

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by (2017-08-27 11:59:26)

Heta Dakina Ranil: Starts last campaign after too long a wait, but two years too soon

by Rajan Philips-August 26, 2017, 7:16 pm

By all appearances the United National Party is rolling out a well laid plan to project Ranil Wickremesinghe as its candidate in the next presidential election which is not due at least for another two years. Are they starting the campaign two years too soon? Too much seems to have been packed in a span of six months - a new biography, 40th anniversary celebrations, a national exhibition of family albums, and posters pasting the town with the leader’s face. At this rate a lot more will be required to fill another two years before the election. Too bad, the 40th anniversary could not arrive a little closer to the election. It would have if JRJ had not conjured up the Third Amendment and succeeding presidents did not manipulate their re-election timing.

Now you cannot run the clock back, although the government may want to run it too fast forward and somehow have the presidential election before the Provincial and Local Government elections. And anyone after 40 years in politics or anything would be left with more yesterdays and fewer tomorrows. It may be that Mr. Ranil Wickremesinghe, now very much a yesterday’s man, is trying to make the best of his political tomorrows that are still left. We can only wish him all the best and god speed, but politics is brutal business and well-wishing alone is not enough to snatch the highest political reward in the country. It is not my business, nor is it my purpose to offer campaign advice to the UNP or its leader, but it is everyone’s business to question the propriety of a Prime Minister starting the next presidential campaign halfway through the most historic mandate ever in Sri Lankan electoral history.

It is not only the Prime Minister but even the President is fancying a crack at the next election. Unlike in 2015, he will not be a Common Candidate, but an SLFP Party candidate. After defeating Mahinda Rajapaksa in the last election, Sirisena will be succeeding him as the next party candidate. In fact, it is the SLFP that started the election ball rolling by passing a resolution that Maithripala Sirisena would be their candidate for the next presidential election, even though Sirisena contested and won as a one-term only candidate. The UNP has now intercepted and taken the ball and is now gleefully running along with it. The bizarre likelihood is that in two years the President and Prime Minister of the national-unity government could be facing off each other as presidential contenders. After vowing to abolish the presidency at the last election, the two leaders are getting ready to compete against each other for the same office at the next election.

The January 2015 election was historic because for the first time in our electoral history the voters defeated an incumbent president and elected a new president and government based not on commonplace rice-and-curry promises but on the promise to end corruption and to reform and restructure the system of government. And in a public ceremony at the Independence Square, the President elect not only snubbed the Rajapaksa Chief Justice at the time by having his oath administered by the next senior-most judge, but he also followed up his oath by administering the oath to Ranil Wickremesinghe as the new Prime Minister, snubbing again the Rajapaksa Prime Minister at the time. The oaths (and the snubs) were powerfully symbolic even as they were substantively unconventional. The critics barked but the country went along, confident that the two new leaders meant what they said and would do what they meant. Now what?

Betrayal and backlash

Not enough, after promising the world in 100 Days, the government does not have anything worthwhile to show after more than two years in office, the President and the Prime Minister are now preparing to run against one another in the next presidential election. It is one thing not being able to deliver on the promises made in one election (in fact there were two in 2015), but quite another to presume that the two leaders can take the people for suckers full two years before the next election. The rationale for the unity-government is that the two major parties must govern together to accomplish a minimum agenda, after which they will go their separate ways and resume electoral contests. It is quite normal for political parties in a coalition government to contest one another in intervening elections while remaining in government. So it would be normal for the UNP and the SLFP to contest the PC and the LG elections while being unity-government partners. But it is a betrayal for the President and the Prime Minister even to think about contesting one another in the next election half way through their joint mandate from the last election.

Many a plan in politics can go awry, and if such a contest were to materialize, you can expect the Prime Minister to come up with a convoluted explanation that the unity project can survive a presidential contest between him and Sirisena, and that they are only respecting the democratic rights of the people in asking them to decide on who (MS or RW) should be their President and PM for the next term. I am not giving him ideas, but the PM would laugh and insist, like the way he tried to laugh away the bond scam, that whatever role the people assign to him or the President they will abide by it and continue their joint venture after the next election. That is to say, the roles could be as they are now, or the people could reverse the roles making RW President and MS Prime Minister. The two will even administer each other’s oath and continue the unity project happily for another term.

So in their minds, there will be no betrayal of the 2015 mandate but only a course change in a conveniently longer than expected journey to the promised land. Whatever that could not be achieved in the first term, which is practically everything, will be achieved in the second term, or, if needed, in continuing subsequent terms until death do them part. No matter how bizarre my satiric speculation might seem, do not put it beyond the creativeness of pseudo-yahapalanaya minds. Put another way, after getting rid of the coercive and corrupt attempts of the Rajapaksas to interminably install them in power the country could be en route to suffer the same fate but in a seemingly benign and patronising way.

The saving grace in all this is the propensity for backlash from the people. As was noted pungently in last week’s Sunday Island editorial, the public reacts more vigorously to today’s rascals than yesterday’s rascals. And those who claim to see tomorrow better than others can ignore what is going on today only at their political peril. But there is also an alternative to the recurrent cycles of voting in and throwing out governments. And that is to hold the government in power accountable in real time without waiting for the next election. This alternative approach seems to have worked with this government more than with previous governments. The government has been pig-headed in many areas, but has been forced to back track in a number of other key areas.

The inquiry into the bond scam, the resignation of two ministers, and delaying and even withdrawing controversial bills are all signs that much can be achieved by holding the government’s feet to the fire for the next two years without waiting to burn it wholesale at the next election. More specifically, genuine yahapalanaya activists and organizations must insist that the President and the Prime Minister abandon their direct and indirect preparations for the next election, and refocus their energies and efforts to fulfilling their last election promises in two critical areas: ending corruption and effecting constitutional changes. The normal business of government can never be properly done until government corruption and the system that breeds it are eradicated. Only then, the slogan ‘heta dakina Ranil’ could have some meaning.

Black money under Shiranthi’s Torrinigton house

- Aug 27, 2017

A report has been sent by the FCID to the Attorney General’s Department after investigating the buying of a property, no. 260/12, Torrington Avenue, Colombo 07, by former first lady Shiranthi Rajapaksa for Rs. 300 million. As she has failed to show how she had acquired the money to buy it, instructions have been sought from the AG to file a case against her on money laundering charges.

A person by the name Nandana Lokuwithana who has close connections with the Rajapaksa family, had been involved in this transaction. It was him who had appeared as owner of the controversial Dubai Marriot Hotel.

The Rajapaksa family had lived at this house in 2000, and Siriliya Saviya, Nil Balakaya and Tharunyata Hetak, accused of various notorious deals, had given it as their official address. It is presently being used as a storehouse.

Parakrama Dissanayake

Sri Lanka: Clean money, dirty money, and black money

Money amassed through illegal activities becomes “black” as it cannot be used for legitimate banking or financial transactions.

by B. Anton Jeyanathan

( August 27, 2017, Colombo, Sri Lanka Guardian) A popular song with a catchy tune came to mind when the entire print and electronic media used the maximum space and air time to inform the members of the public of the amount of money derived legally or illegally due to various legitimate and illegitimate transactions. The Central Bank “bond” transaction has been the pet subject of the sensational and selling news to bolster their sales. Every human being needs money and in order to earn money he or she ventures into the world to earn money to sustain himself or herself, or to support family members. Nothing is free in this world, money buys everything. Money earned through services, jobs and any legal transactions is legally earned, and the majority of the citizens of Sri Lanka who are mostly daily or monthly income earners, are in a position to account for whatever amount of money they earned or possessed. The money earned through legitimate means could be considered “clean money”.

Dirty money
The money in circulation is in coins and notes. Coins under normal consideration do not get dirty, but currency notes get soiled, crumpled and dirty. It is not the dirtiness of the currency notes one talks about when dirty money is referred to. Any money derived through any illegal transactions, through drug trafficking, human smuggling, arms smuggling, bribery and corruption, fraudulent transactions, commissions, kick backs and any money derived through various illegal acts utilising his or her official positions is considered “dirty money”. Dirty money amassed cannot be accounted for through legitimate banking and money transaction institutions authorised by the government.

Black money
Money amassed through illegal activities becomes “black” as it cannot be used for legitimate banking or financial transactions. When one possesses a tremendous amount of “black money” and cannot use it for his luxurious living or that of his family members, he has to find a way of washing this dirty money to make it clean so that the money could be used legally for all his luxurious living.

Money laundering
The process of converting the “black money” into clean or white money is known as laundering of money.
Dirty clothes are laundered in order to clean them for the clothes to be worn in the open. In the case of currency notes, they cannot be dumped in a washing machine to make them clean as the currency notes will end up as pulp which will have no value for the owner of such “black money”. Money laundering is defined as the process by which criminals or criminal organisations seek to disguise the illicit nature of their proceeds by introducing them into the stream of legitimate commerce and finance.

There are three main steps in the process of money laundering:

Placement – Physically getting the cash into the financial system including the conversion of cash into other types of negotiable instruments such as money orders and cheques.
Layering – Separating the proceeds from the source through layers of transactions such as wire transactions.
Integration – Providing an apparent legitimate explanation for the illicit proceeds.

In order to provide a legitimate explanation for illicit earnings, fictitious and “shell” companies are formed and records are provided in order to make use of the “black money” to conduct normal financial transactions. They ensure that the origin of the “black money” is obliterated and all the tracks are destroyed or erased so that the origin of the “black money” cannot be established.

Laundered money could be utilised legitimately for a luxurious living, legitimate trade and commerce etc. Laundered money could also be used to fund elections and other commissions of politicians and others seeking important positions in the public and private sectors.

Prevention of Money Laundering Act
The government of Sri Lanka enacted the Prevention of Money Laundering Act No.5 or 2006, declaring money laundering an offence.

The Act further says that “any personwho engages in any transaction in relation to any property which is derived or realised directly or indirectly from any unlawful activity or from proceeds of any unlawful activity, or receives, possesses, conceals, disposes of, or brings into Sri Lanka, transfers out of Sri Lanka, or invests in Sri Lanka, any property which is derived or realised, directly or indirectly, from any unlawful activity, or from the proceeds of any unlawful activity, knowing or having reason to believe that such property is derived or realised, directly or indirectly from any unlawful activity or from the proceeds of any unlawful activity, shall be guilty of the offence of money laundering”.

The Act goes on to say that “To get a clearer view of the new offence that has been created, the offences as it has been defined needs to be dissected into its constituent elements.

Any person who engages directly or indirectly in any transaction in relation to any property which is derived or realised directly or indirectly from any unlawful activity or from proceeds of any unlawful activity,

Or,

receives, possesses, conceals, disposes of, or brings into Sri Lanka, transfers out of Sri Lanka, or invests in Sri Lanka, any property which is derived or realised directly or indirectly from any unlawful activity or from the proceeds of any unlawful activity, knowing or having reason to believe that such property is derived or realised, directly or indirectly from any unlawful activity or the proceeds of any unlawful activity, shall be guilty of the offence of “money laundering”.

The public is aware of the recent sensational disclosure of such an illegal money transaction, where a retired banker working for a private company has admitted before the Presidential Commission that nearly Rs.100 million had been brought in cash in five thousand rupee notes, and deposited in the safe by an individual who is designated as the chairman of the company and from this expenditure has been made to pay the rental and to purchase a penthouse for the spouse of a minister of the government. The retired banker has also admitted that there was no record of the money deposited by the chairman of this company and the expenditure made from this deposited amount. He was not aware of the origin of the money except that the chairman brought the money and deposited it in the safe.

According to section 35 sub-section C under the Bribery Act and, sub-section E under the Exchange Control Act, and the Prevention of Money Laundering Act, the chairman of this company who is reported to have deposited this large sum of money, could be investigated by the “Financial Intelligence Unit (FIU)” established under the Prevention of Money Laundering Act.

During the course of the evidence given by the ex-banker of this company, the prosecution counsel had hinted that this could amount to “money laundering”. In addition to the chairman, other persons involved too could also be investigated under the Bribery Act for not declaring assets. The Department of Inland Revenue too can initiate investigations into the financial standing of the chairman of this company and probe further whether this company has paid income tax or whether he had declared this large amount of money in any of his income tax declarations. It will also be interesting to investigate to ascertain how the chairman was able to bring such a large amount of money in five thousand rupee notes and whether these large sums of money are forged currency notes. Notwithstanding the personalities involved, the FCID or the CID should commence immediate investigations into the availability of such a large sum of money in the possession of the chairman of this company whose name a witness had disclosed as one Lakshmi Kanthan.

“Money is the root of all evil.”

(The writer is a retired Deputy Inspector General (DIG) of Police.)

UNP, SLFP agree to disagree as MoU comes to an end

Ousted Minister Wijeyadasa Rajapakshe manages a grin as he leaves the Justice Ministry office on Wednesday. Pic by Indika Handuwela

By Our Political Editor-Sunday, August 27, 2017

UNP’s problems continue with No Confidence motion against Rajitha Senaratne
President agrees to the demand for the removal of Wijeyadasa Rajapakshe from the Cabinet
Strong moves by SLFP to retain executive presidency; Sirisena may contest again; UNP has fall-back option

Even if those present were not conscious of the grim reality around, the forebodings ahead for the coalition partners were ominous. The Memorandum of Understanding (MoU) between the Sri Lanka Freedom Party (SLFP) and the United National Party (UNP) expired that midnight. Though unwittingly, they were together witnesses to that demise of a document that had brought them together, with much fanfare, for what was widely touted as good governance.The clock was ticking away towards midnight signalling the dawn of Tuesday when President Maithripala Sirisena chaired a meeting of his coalition partners and “friendly” political parties at his Paget Road residence in Colombo.

UNP, SLFP agree to disagree as MoU comes to an end.docx by Thavam on Scribd

Harebrained bankrupt politicos fall at feet of Kali amma's ‘Gnanamma’, whereas she falls at feet of Ranjan…

(Lanka-e-News -26.Aug.2017, 2.40PM) In the past, the astrologer by the name of Sumanadasa of the corrupt nefarious decade rulers led the latter down the garden path. Today, it is ‘Gnana’ a retired hospital attendant who identifies herself using the name of ‘Anuradhapura mother’ who is duping the bankrupt politicos by predicting they have the ‘luck of Kings’ only to court the worst disasters for these two legged buffoons.

This astrologer was an attendant at Anuradhapura hospital and she had been an astrologer to president Maithripala when he was the minister of health. After she managed to lure Maithripala with her predictions , Maithripala in his characteristic style gave the maximum promotion that can be granted to an attendant and made her a telephone operator.

After Maithripala became the president , this astrologer suddenly circulated a strange story. She spread the story that Maithri once met her and asked , ‘whether he would become the prime minister? and that she replied ‘ Why second place You will secure the first place . Only be patient.’

Crafty Gnana who knew nobody will ask for a confirmation from the president in relation to her tale propagated the story and enticed the other moronic and power greedy politicos who met her .

Interestingly , after Maithripala became the president , her demand grew phenomenally. Among those who sought her services were Shiranthi Rajapakse, Gotabaya Rajapakse and his spouse , Gammanpila and Bandula Gunawardena who were her favorite customers. These are only a few of her known customers though she has many others like them not known to us . Wijedasa who lost both his portfolios recently , and his wife are also her pet customers.

As her bankrupt politicos who visit her are clever at cheating the masses who elected them to power and earning illicitly , so was Gnana the astrologer who cheated her customers via her own vocation . She had an infinite capacity to cunningly lure her customers and amassing wealth. She owns several storied mansions in Colombo. One such mansion was bought for her by Wijedasa Rajapakse.

When she comes to Colombo , it is Wijedasa who looks after all her comforts including transport in a Benz car. She led a luxurious life so much so when she falls sick, she takes treatment at Elizabeth hospital in Singapore. Those medical bills are met by Wijedasa or another bankrupt politico.

Cutthroat turncoat Wijedasa who is by now best noted for readily selling his soul to the devil , finally tripped and fell into Gnana’s hellhole by trusting in her predictions.

Last 18th Friday , Wijedasa who was the target of bitter criticism and faced severe flak at the UNP Executive and parliamentary group meeting , was to be stripped only of the justice ministry and not both portfolios meaning that Wijedasa had an opportunity to resign the justice ministry portfolio only , ask for a pardon from the party , and continue as an ordinary minister.

It was very unfortunate instead of that course of action he relied on the advice of Gnana. Her advice was , ‘you have the luck of Kings . Therefore you continue with what you are carrying on now.’ This is a stock advice of hers to everyone. Yet Wijedasa the moron instead of rectifying his glaring wrongs, by reposing his faith in the wrong people (Gnana) met his waterloo finally – lost both portfolios .

What is most irksome and worrisome about these mythical beliefs is , when most crucial and vital decisions are taken by politicians in SL what has influenced them are not the economic , political and historical background or most important national interests but the advice of fake cunning astrologers and their stupid predictions.

It is a pity , deposed Mahinda Rajapakse during his reign , in addition to opening the floodgate to corruption and frauds, also inaugurated avenues leading to such fake and crafty astrologers. Now the bankrupt politicos are also foolishly either taking his corrupt route or his astrology route both of which are a bane to the country.

It is most unfortunate that followers of Buddhism supposed to be a specialized religion , are foolishly taking these routes to self destruction. The best and latest illustration is Wijedasa Rajapakse the political villain and infamous betrayer. An advice proffered by Gnana to harebrained Wijedasa once was , in order to eliminate a hoodoo that was supposedly plaguing him , a dhana (almsgiving )shall be given to 100 beggars.

In accordance with this instruction Wijedasa and his wife went to Narahenpita national pola late night and bought the provisions to prepare the meals at home for the almsgiving. Of course being miserly they never forgot to bargain and argue to get those provisions at the cheapest possible rates . Because the almsgiving was to beggars, to Wijedasas who would even dupe the deities , cheating the beggars was most simple . They only included a dhal curry and fried onions in the meal packets. Next Wijedasa went to the vicinity of Kelani Vihara to distribute the parcels. To Wijedasa’s dismay , one beggar opened the meal packet in front of Wijedasa. The beggar who was infuriated immediately exclaimed , ‘aney mahthaya I don’t need this. We get better meal packets’

These unconscionable Wijedasas who earn in millions defrauding public funds , waste millions on fake astrologers , and who are always selfishly thinking which five star hotel they must visit to gourmandize ,have no qualms about saving every cent of their expenditure even when giving dhana to the poor.

Raja yoga (luck of Kings) and pada roga (disease of flatulence)

Gnana’s Raja yoga prediction is so strong that it is often wrong. Even to Gammanpila another notorious fraud , she said he has Raja yoga . In fact Gammanpila during the run up to the last presidential elections came forward to support the common candidate but suddenly did a U turn and supported Mahinda Rajapakse. That was based on Gnana’s Raja yoga prediction. Unfortunately this Raja Yoga obsession of Gammanpila infected him with pada roga (endless flatulence ) . Perhaps this was also a reason for Gammanpila’s wife to go out of the country . She left for Australia to take residence there following conflicts escalating within Gammanpila’s house. Gammanpila must thank Gnana and Raja yoga because his wife deserted him leaving him to enjoy and be free. Now he has only pada roga ( endless flatulence) to keep company with him.

As 10 politicos including Mangala and Rajitha may become a threat to the so called ‘Raja yoga’ of turncoat cutthroat Wijedasa , the latter got down powerful Kattadiyas (Sorcerors) from India and kept them secretly in his house to perform a fierce vicious charm against them. Thanks to Gnana because she was at the bottom of all these witchcrafts. Crafty Gnana of course earned a huge amount of cash from these as usual. Yet the ten politicos against whom this vicious charm was performed were not affected . They are happy, hale and hearty. It is only poor Wijedasa who engaged in sorcery finally lost both portfolios.

The cunning Gnana claims that she is making astrological predictions based on deity Kaliamma’s powers. It is a sorry spectacle to see these bankrupt and corrupt politicos falling at the feet of cunning ‘Gnanamma’ who in turn falls at the feet of Kaliamma. But on the 23 rd Gnanamma had to fall at the feet of Ranjan Ramanayake . This was because of the video footage Ranjan released on the 22 nd.

In the video he had revealed how the foolhardy bankrupt politicos swallowed the Raja yoga ‘pill’ of Gnana and plunged themselves into doom and gloom. Gnana and her team who addressed Ranjan had said,’ aney Ranjan mahathayo , please do not tell again about us. What you disclose are heard by many in this country. When that happens , we will lose our customers.’ Gnanamma of Kaliamma has begged and fallen at his feet . She had implored , if Ranjan wishes he could get a free sastra reading from her and a pooja can be performed on his behalf. Anyway , it is surprising Ranjan did not get close to wealthy Gnana and her Kaliamma citing flimsy excuses to examine her foretelling areas. He is a Christian and does not believe in astrology and sorcery .

Ranjan has then inquired from his uncle Prof Carlo Fonseka about Kaliamma on 23 rd morning when Carlo had given an interesting and intriguing reply…

‘During the days when I was young , I drank liquor, ate pork and walked on fire in front of the Kataragama god and challenged him . Now I am 80 years old. Kataragama god until today had failed to punish or torment me. Therefore you fearlessly continue with your activities directed against these myths and bogus predictions.’

Today, embattled ,harebrained bankrupt politico Wijedasa is the latest victim like the people discarded and disdained Rajapakses to enter their list of bankrupt and beleaguered politicians who plunged themselves into doom and gloom by going behind astrologers and sorcerers who are as crooked and cunning as are these corrupt politicians .

It is most unfortunate despite being senior politicians they have yet to realize problems should be solved only by honestly addressing the issues and getting into grips with those , and not by trailing behind crafty crooked astrologers and sorcerers.

It will not be wrong if good governance like how it is seeking to promote reconciliation , if it takes steps to include in its national agenda a methodology to rescue the nation from myths , sorcery and astrology.