SJB & JVP Must Come Clean On Private Sector Role In Political Corruption

By Amrit Muttukumaru –JANUARY 25, 2022

Amrit Muttukumaru

This article is written in the context of the SJB and JVP being considered as credible alternatives to the failed politics and unprincipled conduct of national political parties – UNP, SLFP and the incumbent Rajapaksa family dominated SLPP government. Surprisingly even some ‘elite’ circles rattled by what’s now going on, consider the JVP as an alternative. The SJB has some traction despite being widely considered a clone of the electorally marginalized UNP. By the same token, SJB’s association with the UNP is a huge advantage to the JVP.

This fortuitous circumstance for the opposition is mainly the result of the incumbent SLPP government under President Gotabaya, Prime Minister Mahinda and heir apparent Namal bringing the country and its people to their knees as never before due to a series of blunders in governance mainly economic affecting the everyday lives of people.

The ground reality of whether the SJB and JVP could on their own form a government even with the support of smaller parties will not engage the attention of this article. Similarly, the realpolitik enabling collaboration between the SJB and JVP in forming a government let alone its stability will also not engage the attention of this article. What is apparent is that the country is in for a long period of INSTABILITY and some degree of turmoil.

Should not the SJB and JVP before proceeding any further with their FAIRY TALES, reveal why they are silent on CAMPAIGN FINANCE which is the MOTHER of political corruption?

Why are SJB and JVP also SILENT on the country retaining a mere 15% stake in the West Container Terminal in the Port of Colombo (India’s Adani Group 51% & JKH 34%) while raising a RUMPUS and even filing court cases on the Yugadanavi Power project (US based New Fortress Energy Inc.) where the country retains a 60% stake? The monopoly allegedly being given to ‘New Fortress’ for the supply of LNG for five years is a separate matter which must be opposed.

Corruption – Root Cause

It is amazing that commentators placing the root cause for the country’s ills on widespread corruption under successive administrations are not linking politicians to the ENABLING big business sector. If two hands are needed to clap, how is it that political corruption can occur on its own? There seems to be a mental block in not recognizing the role of the corporate sector which also includes the businessmen controlled mainstream media which have also reaped the benefits of the nexus with the political establishment.

Is it not a fact that the Print and TV media empires of Wijeya Newspapers Limited (WNL) and the Capital Maharaja Group (CMG) would never have reached their current status if not for state patronage – chief among them being the ‘Mahaweli Project’ – Randenigala Dam (WNL) and Victoria Dam (CMG)?

Is it also not a fact that most of the ‘captains’ of industry and commerce in this country are largely the creation of state patronage? Examples include the privatization of some lucrative government assets under questionable circumstances at giveaway prices. Are not some of them a major source of profitability for these corporates? These include virtual ‘cash cows’ – South Asia Gateway Terminal (SAGT) and Distilleries Corporation of Sri Lanka (DCSL).

In the midst of the present power crisis, why are political parties not uttering a word on the contribution of the private sector to the crisis on their way to making a financial ‘killing’ over the years by holding the country to ransom on the sale of power at unconscionable prices to the national grid?

Added to this heady mix of ENABLERS of political corruption are sections of the country’s professional community of which the most glaring are chartered accountants/auditors who are the first and last line of defense against large scale corruption. For example, could the scandalous privatization of Sri Lanka Insurance Corporation (SLIC) in favor of corporate interests have taken place without the role of leading audit firms PwC and Ernst & Young? Were not some key auditors enabling the SLIC scandal after retirement invited by some leading business houses to their director boards?

SJB and JVP waxing eloquent that widespread corruption is the major driver of most of the ills of this country are completely ignoring sections of the business community and professionals who are the ENABLERS of political corruption.

Lest we forget, the mismanagement of Sri Lankan Airlines continued under the watch of board directors appointed by the Yahapalana government drawn from the ‘cream’ of the corporate sector.

Conflict of Interest

‘Conflict of interest’ which is a major cause of corruption is not even on the radar of this country!

Current examples include the senior partner of an audit firm being allowed to be the chairman of a major state bank and an individual whose family is a major player in tourism being allowed to be the chairman of the country’s tourism regulatory authority.

Other glaring examples include former Chief Justice K. Sripavan being appointed as a board director of Commercial Bank of Ceylon PLC by the Yahapalana government in April 2017 no sooner he ceased being CJ in March 2017. Subsequently he was appointed Chairman. This is despite SJB leaders holding key ministerial office and the JVP politically supporting the Yahapalana government. Prior to this former CBSL Deputy Governor D. Dheerasinghe was appointed under the Mahinda Rajapaksa presidency as a board director of the same bank in December 2011 soon after his retirement in December 2011. The CBSL being the supervisor of banks was of no concern to anybody. Subsequently he too was appointed Chairman. Where else in the world would such occurrences be ALLOWED?

SJB/JVP Hypocrisy

Is it not laughable that those projected as the economic experts of the SJB said to be “Commanding a collective expertise of over 100 years” (‘Daily FT’ 6 January 2022) held key ministerial office in the Yahapalana government noted for encouraging money laundering, the egregious bond scam and proposing dubious FDI projects such as the “$ 3.85 billion oil refinery in Hambantota” and the 2017 Volkswagen vehicle assembly plant in Kuliyapitiya which turned out to be a hoax? There was even a “ground breaking ceremony” for the Volkswagen plant!

It is noteworthy that the JVP now projecting itself as a viable alternative to govern the country continued to politically support the Yahapalana government despite all this and even the April 2019 Easter Sunday carnage. The incumbent SLPP government pussyfooting on the accountability for these outrages is proof that ‘the more things change the more they stay the same’!

Money Laundering

The HYPOCRISY of the SJB and to some extent the JVP is stark in the petitions they filed in the Supreme Court through SJB parliamentarian, Eran Wickramaratne and JVP Political Bureau member, Sunil Handunneththi alleging that the SLPP proposed Finance Bill encourages money laundering.

Did not the Yahapalana government in which SJB leaders figured prominently and JVP supported, in effect FACILITATE money laundering when it repealed the Exchange Control Act No. 24 of 1953 and brought into law the new Foreign Exchange Act No. 12 of 2017?

The new law certified on 28 July 2017 became effective from 20 November 2017. SJB’s Eran Wickramaratne who is now very concerned about money laundering was State Minister of Finance from May 2017!

A precursor to the dangerous Yahapalana inspired Foreign Exchange Act was the ‘invitation’ issued by then Finance Minister Ravi Karunanayake to “Sri Lankans and Indians who had to take back their deposits from banks in Switzerland to place their funds in Sri Lanka”.  He had further assured that “No questions would be asked”!

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