Connect with us

News

FSP decries questionable Kantale sugar factory deal

Published

on

By Rathindra Kuruwita

The Frontline Socialist Party (FSP) and the Professionals’ National Front (PNF) yesterday condemned the proposal to hand over the Kantale Sugar Factory and 21,000 hectares of land that belongs to it to a Singapore-based company.

FSP Education Secretary, Pubudu Jayagoda said that the land would be leased for 30 years and that it was likely that the Cabinet would approve a questionable proposal submitted by Minister of Finance, Basil Rajapaksa, on 07 February 2022.

Jayagoda said that the factory had been established in 1960 with Czechoslovakian aid.

“At that time, Czechoslovakia was a socialist country. The factory was privatised in 1993, but even then, it was closed in 1999, it was producing 16,000 tons of sugar and 3.9 mil litres of alcohol.”

In 2015, the Yahapalanaya government tried to establish a company, MG Sugars Lanka Pvt. Ltd, with a Singapore-based company, SLI Developments Pte. Ltd, as a partner. The state was to hold 51% of the shares of the company.

A shareholders’ agreement was signed between MG Sugars, the Government of Sri Lanka and SLI Developments in 2016. SLI is connected to UK-based investors Mendel Gluck, Robert Salem and Moussa Salem.

“According to this agreement, the factory and nearby land were to be given to the company. Of the 21,000 hectares that belong to the factory, sugar cane was to be grown in 14,000 hectares and 7,000 were to be given to farmers. The water for the farming was to be taken from Kalu ganga, a tributary of the Mahaweli River,” Jayagoda said.

Gluck and the Salem brothers used K.P. Nagaraja, an Indian national to establish the business. There was a dispute between the investors and Nagaraja, and that resulted in a court case.

“In August 2019, August a Singaporean arbitration court said that there was a need to change the agreement. Subsequently, in July 2020, the Director Board was changed and a new agreement presented. On 09 August 2021, the Cabinet approved the new 30-year lease agreement. Earlier, on 05 August a MoU had been signed. However, this was different from the earlier agreement,” he said.

While under the previous agreement, the factory and nearby land was to be under the new company, the 2021 agreement had proposed to hand over the entire land to the company. Instead of taking water from Kalu Ganga, the water was to be taken from the Kantale tank.

“Although the government was to own 51% of the shares, Moussa Salem was to be the Chairman of MG Sugars. Gluck was to be the CEO. Thus, SLI would run all the operations. This will also mean that farmers in the area will face water shortages because Kantale Tank is an important source of water,” the FSP Education Secretary said.

The project to revive the Kanthale Factory is expected to cost USD 300 million, but SLI will only invest USD 70 million. However, according to the agreement 85% of the profits in the first 10 years will go to SLI. 75% of the profits in the second 10 years will go to SLI.

“The government will get 51% of the profits only in the third decade. Sri Lanka will make most of the investments but will make a pittance. This is a serious issue,” he said.

Meanwhile, Eng. Kapila Renuka Perera of the PNF said that this agreement would only lead to a monopoly, which will be disastrous for Sri Lankans. He added that given that all lands will be given to MG Sugars, Sri Lankan farmers will not be benefitted.

“The agreement also allows the company to import unpurified sugar, purify it here and re-export. This will be done with virtually no oversight. Previous governments too have come into agreements that lead to monopolies, like wheat, and these only had negative impacts on us. This will also have similar results. A few people will benefit at the country’s expense,” he said.



Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

News

India should be kept out of PC polls, matters related to 13 A – Mano

Published

on

Mano

Leader of the Tamil Progressive Alliance (TPA), Mano Ganeshan, MP, said that India shouldn’t intervene here regarding the long-delayed Provincial Council polls.

The former Yahapalana Minister of National Co-existence, Dialogue and Official Languages (2015-2018), Ganeshan, who represents the main Opposition Samagi Jana Balawegaya (SJB) in the current Parliament, stressed that New Delhi’s intervention wouldn’t do any good for them or for us.

Lawmaker Ganeshan said so when The Island asked him whether the TPA would ask India to pressure the NPP government to conduct PC polls, last held in 2014, during Mahinda Rajapaksa’s second term. Ganeshan said: “India shouldn’t get involved in the issue at hand . Such a strategy is also in their interest, particularly in the context of the evolving global order. India should not be perceived as a pro-Tamil state, but rather as a state that supports Sri Lanka as a whole.”

Ganeshan said that the Indian state bears a moral responsibility in this matter. “That responsibility arises from the fact that India’s diplomacy and military intervention played a decisive role in neutralising the Tamil armed struggle in Sri Lanka. Although India’s mission remained unfinished, it nevertheless lost nearly two thousand soldiers in the process. There was also a prelude to this involvement, when Tamil militant groups received training in India. Consequently, the Indian connection became a sensitive issue for both the Sinhalese and Tamils of Sri Lanka.”

But, whatever had happened, the national issue should be settled among us. ” The solution must be found and settled within Sri Lanka itself. We do not need Western interventions in this regard.”

” In recent years, whenever we in the Tamil Progressive Alliance (TPA) have met Indian dignitaries—including the Prime Minister, the External Affairs Minister, and, most recently, the Vice President—the subjects of the 13th Amendment and Provincial Councils have never featured on our agenda.”

The 13th Amendment is part of Sri Lanka’s Constitution. Therefore, it is for Sri Lankans themselves to decide whether to retain, improve, fully implement, reform, or even repeal it, Ganeshan said.

MP Ganeshan found fault with those who represented the Northern and Eastern provinces for failing to utilise the goodwill and influence India enjoyed with successive Governments of Sri Lanka to pursue an amicable political settlement. The parliamentarian said that they should acted after the end of the war in May, 2009. Unfortunately, they failed to effectively use the Provincial Council framework to consolidate their political position and advance further, thereby earning the confidence of both India and successive Sinhala-majority governments, MP Ganeshan said.

Responding to another query, MP Ganeshan said: “

We should keep the ethnic issue separate from bilateral relations with India, while deepening economic connectivity and cooperation on the basis of mutual benefit and a win-win partnership.”

By Shamindra Ferdinando

Continue Reading

News

US boost for SLAF

Published

on

Helicopters from the US. (Pic courtesy SLAF)

Sri Lanka has taken delivery of 10 TH-57 ‘Sea Ranger’ multi-role helicopters provided by the United States of America to the Sri Lanka Air Force. Air Forces headquarters said that the helicopters arrived here by sea.

The SLAF has said: “The arrival of these aircraft marks a significant milestone in the longstanding defence cooperation between Sri Lanka and the United States and represents a valuable contribution towards enhancing the operational and training capabilities of the Sri Lanka Air Force.

“The helicopters are currently undergoing configurations and technical preparations at SLAF Base Ratmalana. Following the completion of requisite inspections, acceptance procedures and test flights, the aircraft will be inducted into service and deployed for operational duties.

“The TH-57 fleet is expected to significantly strengthen the Air Force’s aviation training capacity while enhancing the ability to support a broad spectrum of national requirements. The aircraft will primarily be employed for pilot training, humanitarian assistance and disaster response (HADR) operations, search and rescue (SAR) missions and other public service commitments undertaken by the Sri Lanka Air Force.”

Continue Reading

News

TPA demands House committee to probe Tilvin’s claim PC polls cannot be held due to fund constraints

Published

on

Harsha

Referring to the recent declaration made by JVP General Secretary Tilvin Silva that the Provincial Council elections couldn’t be held this year as funds allocated for that purpose were utilised to provide Ditwah cyclone relief, Tamil Progressive Front (TPA) leader Mano Ganeshan, MP, has asked Dr. Harsha de Silva, MP Chairman, Committee on Public Finance, to inquire into the issue at hand and take action deemed appropriate.

The text of MP Ganeshan’s letter: “I write with reference to a statement reportedly made by Tilvin Silva, General Secretary of the Janatha Vimukthi Peramuna (JVP), the principal constituent party of the National People’s Power (NPP) Government.

According to media reports, Silva stated, in substance, that funds allocated and set aside for the conduct of Provincial Council Elections had been utilised by the Government for disaster-rebuilding and related purposes.

While he is reported to have made further remarks, I confine my attention to the above statement, which raises a serious matter concerning public finance and parliamentary oversight.

To the best of my knowledge, Parliament has not approved any transfer or reallocation of funds, earmarked for Provincial Council Elections, to any other expenditure head or purpose. If the statement, attributed to Mr. de Silva, is accurate, it may indicate that such funds have been utilised without the requisite parliamentary authorisation.

In view of the above, I respectfully request that the Committee on Public Finance inquire into this matter and ascertain whether any transfer, reallocation, or expenditure of funds allocated for Provincial Council Elections has occurred in a manner inconsistent with parliamentary approval and financial regulations.

I would be grateful if the Committee could examine the facts and take any action deemed appropriate within its mandate.”

Continue Reading

Trending