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Editorial

MR defends himself

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What has been widely described as the “historic” Supreme Court judgment which by a majority 4-1 decision of a five-judge bench held the Rajapaksa brothers, Mahinda, Gotabaya and Basil and other unelected officials including two past Governors of the Central Bank, a former Secretary to the President, a former Treasury Secretary and some members of the Central Bank Monetary Board responsible for landing the country in its current economic predicament. The judgment delivered on Nov. 14 was in time for the 2024 Budget, already passed at the second reading now being debated on the third reading is being freely quoted in the legislature.

The petitioners included the opposition Samagi Jana Balavegaya as well as some public interest activists maintained inter alia that reduction in government revenue due to unauthorized tax concessions costing government coffers Rs. 681 billion and the failure to rectify and retract the granted tax breaks had led to the economic downturn.

It also urged that the lack of transparency and accountability in high level decision making had resulted in the economic crisis the country continues to grapple with. Given the wide discussion the judgment triggered both in Parliament and outside, former President Mahinda Rajapaksa who has held the finance ministry on several occasions during his own presidency and that of his brother felt compelled to reply.

This he did in a tightly written and well argued statement published last week. Many observers believe that former Central Bank Governor Nivard Cabraal played a major role in drafting the statement that Mahinda Rajapaksa signed. Cabraal has the necesssary skills and the knowledge to make out a good case. In essence what the former president did, citing facts and figures, was to blame the previous Yahapalana leaders for the country’s bankruptcy.

He in effect said he left a healthy economy when he went out of office in 2015. He charged that it was his successor Maithripala Sirisena’s government which engaged in reckless financial profligacy leading the country to where it is at present. He claimed that raising nearly 15 billion dollars by way of international sovereign bonds was an altogether rash act.

However, the opposition argues that Sirisena’s administration was left with no option but to resort to expensive commercial borrowings to pay off the loans to build the Rajapaksa-era white elephants, including the Mattala airport, the Lotus Tower and Nelum Pokuna.

Growth during Mahinda Rajapaksa’s decade in power is also partly attributed to high defence expenditure. Every time a bullet was fired, it also boosted the GDP! Government expenditure is a key factor in calculating GDP and the lavish military budget helped swell GDP numbers.

President Rajapaksa, in his statement, used the Colombo Stock Exchange as a barometer for measuring what he claimed to be his successful economic management. But market watchers point out the existence of well-known cases of pump-and-dump in the stock market at that time. They also say that stock market investments by the EPF, holding the retirement funds of a very large number of private sector employees, need investigation. While a stock market could be an indicator, among other factors, of the health of an economy, it is not a sole criterion to be used. The MR defence statement used other indicators like GDP and Debt:GDP ratios.

The majority judgment has found that the respondents, Rajapaksa et al, had directly contributed to the results that led to the country’s present situation. It has held that they should have taken steps to resolve matters that negatively impacted on the economy and not allowed the problem to further aggravate. Saying that the respondents had full knowledge of the situation and power to prevent the calamity, the judgment has determined that there has been a violation of public trust and breaching of relevant constitutional provisions. All this, of course has been grist to the opposition mill. But the inescapable fact known to all is that the process has been growing over a period of many decades with the country being plagued by continuing deficit budgeting.

Just as much as incumbent President Wickremesinghe must be credited for pulling the country out of the unprecedented predicament it had plunged into, with never before seen queues for fuel particularly and acute hardship to ordinary people, President Mahinda Rajapaksa must also be credited for ending the long drawn war which cost the country much blood and treasure.

But the peace dividend that should have accrued has not yet been realized. Our defence expenditures continue to be in the billions and we have armed forces numbers totally unrelated to a country of our size not facing any external threat. But we have done little or nothing to trim their size and reduce the unaffordably huge expenditures lavished on them. There is also no effort whatever to reduce our bloated public service guzzling the lion’s share of state revenue.

Much finger pointing occurs on either side of the political divide on a daily basis. Maithripala Sirisena who became president on UNP votes and claimed that he would have been six feet under the ground had he lost the election, attempted in 2018 to get rid of his benefactor, Prime Minister Ranil Wickremesinghe, and install his once upon a time bete noir Mahinda Rajapaksa in his place.

Wickremesinghe who led a Mahinda hora chorus in the parliamentary chamber was elected to the presidency by the Rajapaksa party by whose grace and favour he continues to lead the country. We are heading for an election year and what will eventually happen in 2024 is an open question. All we can do is hope that the gods will smile down on us.



Editorial

The games they play

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The new parliament, packed with first timers as never before, had an interesting session last week with the dust yet unsettled over the issue of the last speaker’s doctorate. Now plain MP Ranwala who resigned from his august position, which ranked him number three in the national protocol list, has not admitted any malfeasance or skulduggery. He says his instant problem is an inability to quickly get clear proof of his qualification from Waseda, a private university in Japan with an affiliate research institutes, one of which he claims awarded him the disputed degree. This has been rubbished by critics saying we live in an age of instant communications. However that be, the ex-speaker is widely accused of flaunting a qualification he did not possess and the government which proposed him for the jb continues to draw flak on this matter. Whether his resignation was a command performance or voluntary remains unclear. After he gave up his wig and robes, there have even been demands that he resigns from parliament as he allegedly presented himself to the electorate with a qualification he did not possess.

Gone are the days when leftist giants of the past like Dr. NM Perera who earned a DSc. degree from the London University and Dr. Colvin, R. de Silva who earned a PhD from the same university strode the legislature and were recognized countrywide for their erudition. There was also the unforgettable W. Dahanayake from Galle, who succeeded the late SWRD Badaranaike as prime minister when the latter was assassinated. He called himself Dr. Wijayananda Dahanayake after he was conferred a doctorate honoris causa by the Vidyodaya University. He as Minister of Education, raised Vidyodaya and Vidyalankara from pirivena to university status and this was recognized by the conferring of the honorary degree.

Although some honorary doctorate holders use and have used the title, others desisted, restricting themselves to using it only in their curriculum vitae with the specific notation of honoris causa. We even had the notorious Mervyn Silva flaunting a so-called doctorate from the Institute of Alternative Medicine founded by the late Dr. Anton Jayasuriya who was a western qualified medical practitioner and a well know acupuncturist. His institute freely distribution of doctorates and all manner of persons were decorated with them.

There was a time in the past when a well know surgeon of yesteryear insisted that he be called Mr. Muller rather than Dr. Muller as he did not hold a Doctor of Medicine degree. In our country and many others holders of the MBBS (Bachelor of Medicine, Bachelor of Surgery) degree call themselves doctor although they hold no MD (Doctor of Medicine) qualification. In more recent years we have seen engineers, architects, attorneys-at-law and the like prefixing their names with Eng, Archt, Attorney-at-Law etc in front of their names obviously reacting to the Dr. prefix used by medical practitioners.. In fact, first time MP Dilith Jayaweera pertinently raised the question of why such appellations be used at all in Parliament. Why indeed? In fact many MPs commonly prefix their names with “Honorable,” a traditional nicety within the parliamentary chamber, quite needlessly and irrelevently outside that chamber. Cynics would say many of them are anything but honorable!

Apart from the Ranawala ruckus, the last week in parliament saw a lot of ha ho about titles used by various MPs. Justice Minister Harshana Nanayakkara accused SJB MP Ajith Perera of calling himself Adhinithigna (Advocate) though the two branches of the legal profession, Advocates and Proctors, were fused to into a single branch of Attorneys-at-Law in 1973 when Perera would have been all of five years old! This resulted in a lot of angry back and forth and hair splitting about the Sinhala word “counsel.” Nanayakkara said he was once a state counsel or Rajaye Adhinithigna. An old story about Namal Rajapaksa being helped through his final law exam was resurrected with Minister Wasantha Samarasinghe quoting a batch mate of Rajapaksa who made the original allegation and thereafter fled to Switzerland in fear of his life. This worthy, with whom the minister is in contact, apparently is willing to cooperate with any fresh inquiry. Rajapaksa said he would resign if the allegation is proved and challenged the accusor-minister to do likewise if it is not proven.

Opposition Leader Sajith Premadasa made a long explanation about his education beginning at the nursery stage at St. Bridget’s Convent, through St. Thomas’ Prep and Royal College. He admitted he had no GCE ‘OL’ from Sri Lanka as he had gone abroad and said he passed both the ‘O’ and ‘A’ Level exams in the UK. He had a degree from the London School of Economics and postgraduate qualifications from the US. Premadasa displayed a framed certificate in the chamber and said that he was tabling all documents for Hansard.

Apart from this, Health and Media Minister Nalinda Jayatissa read out a list of MPs who had benefited from the President’s Fund to pay medical bills and have since promised to make new revelations in the future. Former President Ranil Wickremesinghe, with nobody in parliament to speak on his behalf, had issued a press statement in this regard. The Daily Mirror on Friday headlined this report “None were given over Rs.1 million outside procedure except on one occasion: RW.” Wickremesinghe had indicated that there were may “personal requests” for assistance but did not expand.

The Fund set up by law in 1978 during the JR Jayewardene tenure was initially funded from donations and partly supported by the Development Lottery. There is very little information in the public domain on the subject but it has long been felt despite it being set up for the poor, many of the rich had benefited including progeny of the well-to-do sent to leading universities abroad at the fund’s expense. Given the current interest generated on this subject, it would be sensible to publish all disbursements and annual accounts as there is good reason to suspect that it is a means of patronage.

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Editorial

Ranil’s advice

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Saturday 21st December, 2024

Former President Ranil Wickremesinghe has urged the SJB-led Opposition to act responsibly and help ensure the continuity of the IMF bailout programme, which has enabled the economy to regain some stability. He has also thanked the NPP government for having kept the IMF programme on course.

Wickremesinghe’s exhortation to the Opposition and unsolicited advice to the government are timely but not devoid of politics. He is seeking the credit for what the country has achieved through the ongoing IMF programme, which got underway in earnest under his presidency. In fact, it is doubtful whether any other President would have had the courage to make a host of unpopular yet essential decisions to address the economic crisis. So, Wickremesinghe is not without a moral right to ask the government and the Opposition to act prudently and help the country make the most of the IMF programme. It is hoped that the Opposition and the government will heed Wickremesinghe’s advice and act accordingly.

Sadly, the SJB has chosen to play to the gallery, asking the government to renegotiate the IMF programme. It could not even sort out an internal dispute over its National List appointments, and one of its constituents resorted to legal action. So, how can such a political party claim to be able to make the IMF bend to its will? It is obviously trying to earn brownie points with the public by bellowing rhetoric.

The IMF programme is no economic panacea, but it will surely help Sri Lanka gain economic stability in the short-term. It has already yielded some tangible results. Much more remains to be done to ensure Sri Lanka’s long-term economic wellbeing, and it is up to the current dispensation as well as future governments to develop the economy and achieve debt sustainability.

Nobody likes IMF bailout conditions, which can be extremely harsh, but they are a prerequisite for a bankrupt country’s economic recovery. If Sri Lanka managed its economy properly, it would not have had to ask for IMF help, which comes with constricting conditions. However, what the IMF has prescribed is what Sri Lanka should have done on its own a long time ago.

When a country spends more than it earns and goes on borrowing recklessly from external sources to meet its revenue shortfall, it runs the risk of facing an economic crisis. The Mahinda Rajapaksa government indulged in wasteful expenditure; it spent a great deal of borrowed money on Ozymandian projects. The UNP-led Yahapalana government also borrowed heavily. The JVP backed that administration to the hilt. The Gotabaya Rajapaksa administration, in its wisdom, slashed taxes and tariffs, oblivious to the disastrous consequences of its harebrained action. The Covid -19 pandemic came, necessitating prolonged lockdowns, which took a heavy toll on the economy. The rest is history.

A person who falls into a well has to come out of its mouth, as a local saying goes. There is no other way out. Sri Lanka finds itself in a similar situation. Having ruined the economy, it found itself at the bottom of an economic pit. Thankfully, in answer to its pitiable pleas, the IMF threw a lifeline, which has enabled it to come halfway up. Needless to say, nothing will be stupider than for it to let go of that lifeline.

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Editorial

Lest watchdogs should become lapdogs

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Friday 20th December, 2024

The JVP-led NPP’s ascent to power rekindled the hopes of good governance activists for a radical break from the past and a new political culture. The incumbent government came under pressure to ensure the independence and integrity of the parliamentary Financial Committees by allowing them to be headed by Opposition MPs. But the efforts of the campaigners for good governance have been only partially successful. SJB MP Dr. Harsha de Silva has been appointed the Chairman of the Committee on Public Finance (COPF), and the government has said one of the NPP members should head the COPE (Committee on Public Finance).

The government’s position is that the COPE will conduct investigations into what happened under the previous administration and therefore an NPP MP should chair it. The Opposition’s efforts to persuade the government to change its mind have been in vain. President Anura Kumara Dissanayake himself reiterated the NPP’s position in Parliament on Wednesday in response to a request from Opposition Leader Sajith Premadasa that the government reconsider its decision.

The COPE plays a pivotal role in exposing irregularities in state enterprises and has the potential to restore public trust in Parliament. According to Standing Order No. 120, the duty of the COPE is to examine the accounts of public corporations, institutions funded wholly or in part by the state and of any business or other undertaking vested under any written law, with the assistance of the Auditor-General. One of the criticisms against the COPE is that its probes do not yield the desired results, and its reports gather dust. But there have been glaring exceptions.

The COPE under Dr. Wijeyadasa Rajapakshe’s chairmanship, during the Mahinda Rajapaksa government, played an activist role, paving the way for the reversal of a questionable divestiture programme—the privatisation of Sri Lanka Insurance Corporation and Lanka Marine Services. Similarly, the COPE under D. E. W. Gunasekara’s chairmanship was bold enough to produce a damning report on the first Treasury bond scam in 2015, but the UNP had Parliament dissolved, forestalling the submission of that vital document to the House. The COPE carried out its second probe into the Treasury bond scams under the chairmanship of the then Opposition MP Sunil Handunnetti. Thus, the COPE has proved its ability to safeguard the interests of the public, and the precedents it has set should be followed. Handunnetti, who is a powerful minister in the incumbent government, ought to lend his voice to those who are demanding that an Opposition MP be appointed as the COPE chairperson.

Situations could arise warranting investigations that adversely impact the interests of the incumbent government. If the COPE chairperson is a ruling party MP, he or she, under such circumstances, will not be able to act impartially owing to his or her party loyalty. This is why the campaigners for good governance insist that the parliamentary watchdog committees should be chaired by the Opposition.

The government’s argument that it has to appoint one of its MPs as the COPE chairperson because the irregularities to be probed occurred under the previous dispensation, whose MPs are currently in the opposition, is not tenable. The vast majority of the Opposition MPs in the current Parliament were not members of the previous administration, which became a metaphor for corruption, and therefore one of them can be appointed the COPE head.

The COPE will have to probe irregularities in state institutions during the current administration as well, and a ruling party MP functioning as its chairperson will be constrained to act in such a way that he or she is seen to be biased; the integrity of the watchdog committee will be compromised in such an eventuality.

One can only hope that the NPP will change its position and let an Opposition MP be appointed as COPE head.

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