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Professionals’ National Front opposes MILCO appointment

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… questions rationale behind Basil’s actions

By Shamindra Ferdinando

The Professionals’ National Front (PNF) has questioned the appointment of Renuka Perera as the Chairman of MILCO at the expense of Lasantha Wickremasinghe, a senior member of the outfit as well as an associate of the patriotic civil society outfit ‘Yuthukama’ organisation.

The ruling SLPP accommodated ‘Yuthukama’ leader Gevindu Cumaratunga on its National List whereas Anupa Pasqual also of the civil society grouping successfully contested the Kalutara district.

PNF Secretary and its spokesperson Kapila Renuka Perera told The Island that the government owed an explanation as to why Wickremasinghe who transformed the loss making public sector enterprise in spite of severe difficulties, was removed.

At the time Wickremasinghe received the appointment following the 2019 presidential election, Milco was reported to have suffered losses amounting to Rs. 2,000 million, the PNF spokesperson said. Thanks to Wickremasinghe’s interventions and the tireless efforts of the management team, MILCO earned annual profit of Rs 400 mn regardless of significant increase in the revenue received by milk farmers, Perera said.

Responding to another query, Perera pointed out that no less a person than Prime Minister Mahinda Rajapaksa, who had also served as the Finance Minister till July last year emphasized the pivotal importance in transforming the public sector. Therefore, the recent removal of Wickremasinghe to accommodate Renuka Perera, the Administrative Secretary of the ruling Sri Lanka Podujana Peramuna (SLPP) was contrary to the government position articulated by the Premier, the PNF official said.

Renuka Perera received his letter of appointment from Finance Minister Basil Rajapaksa on the afternoon of January 20 at the Finance Ministry.

Acknowledging that public campaigns undertaken by the PNF since its inception in 2016 helped the then Joint Opposition (JO) now represented in Parliament as the SLPP, PNF Secretary Perera said they were quite horrified by the way the powers that be behaved at a time the country was experiencing severe economic difficulties. Declaring the public had lost faith in the parliamentary system, those who were skeptical of the concerns expressed by professionals should inquire into the sharp increase in the number of families, individuals, particularly the youth seeking to migrate.

Asked whether the PNF questioned the Milco appointment as Lasantha Wickremasinghe happened to be a member of the organization as there had been a number of other controversial appointments since Nov 2019 though they largely remained silent, the official pointed out their opposition to the appointment of Milinda Moragoda as Sri Lanka’s High Commissioner to India. “We raised the issue with the Parliamentary High Post Committee and campaigned vigorously against the former minister given such a crucial diplomatic posting. However, the political leadership thought otherwise,” the PNF spokesperson said.

Amidst the controversy, President Gotabaya Rajapaksa issued a statement defending Moragoda’s appointment.

The PNF official said that the SLPP Administrative Secretary being appointed as the Milco Chairman should be examined against the backdrop of a failed attempt to appoint him as Chairman and the board member of Litro Gas. However, an irate President Gotabaya Rajapaksa rescinded a letter issued by the Secretary to the Finance Ministry S. R. Attygalle in respect of the top Litro appointment. Having done so, President Rajapaksa went to the extent of inspecting the Litro’s main facility at Kerawalapitiya in the company of Theshara Jayasinghe, the incumbent Chairman.

It would be pertinent to mention that Renuka Perera lost his position as Chairman, NHDA (National Housing Development Authority) last July when former lawmaker and convict Duminda Silva moved in soon after he received presidential pardon.

President Rajapaksa brought in Theshara Jayasinghe in July last year following the controversy over Litro successfully blocking government audits even after the Auditor General and the then COPE (Committee on Public Enterprises) emphasized the need for state-owned Litro to undergo state audit.

Litro hired Romesh de Silva, PC and Sanjeeva Jayawardena, PC, who is also member of the Monetary Board to represent Litro in the controversial as well as unprecedented case, parliamentary sources told The Island.

Sources said that the government audit resumed after Theshara Jayasinghe replaced Finance Ministry appointee Anil Koswatte, who called Treasury Secretary Attygalle to inquire into allegations directed at him by Theshara Jayasinghe.

The PNF official said that during yahapalana administration the grouping strongly opposed ETCA (Economic and Technical Cooperation Agreement) with India as well as SLSFTA (Sri Lanka Singapore Free Trade Agreement) and high profile US MCC (Millennium Challenge Corporation) project as they were inimical to Sri Lanka’s national interests.

In a statement issued on January 20, the PNF also raised the appointment of Gamini Senarath as the Secretary to the President in spite of accusations as regards his culpability over the disastrous Chinese carbonic fertiliser deal that ended up with cash-strapped Sri Lanka having to pay USD 6.7 mn regardless of the rejection of allegedly contaminated fertilizer stock. The PNF spokesperson pointed out that a close relative of Gamini Senarath managed the Chinese exporter, Qingdao Seawin Biotech Group Co., Ltd’s local agent Chelina Capital Corporation (CCP).

However, following allegations in this regard, both in and outside Parliament late last year, Senarath issued a statement denying his involvement whatsoever in the transaction while declaring his readiness to cooperate fully in case of an investigation.

The PNF noted that the former Secretary to the President Dr. P.B. Jayasundera, too, had allegedly interfered in liquid fertilizer imports from India and a CID investigation was underway following him complaining against the reportage of the developments.

The PNF Secretary said as many others, they, too, were disappointed with the way appointments were made under controversial circumstances at different levels. Asked whether the PNF ever contemplated moving court against unacceptable actions of the government, the spokesperson pointed out that the creation of more than 30 separate ministries in violation of the Constitution was challenged and the case was pending in court.



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Creditor receives USD 2.5 mn as Lankan public bears loss from theft of Treasury funds

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Amidst ongoing accusations that the theft of USD 2.5 mn (nearly 1 bn Rupees) from the Treasury hadn’t been properly investigated, The Island learns that the relevant payments had been made to the actual creditor on the instructions of the Finance Ministry.

Confirming the inquiries made by us, authoritative sources said that payments had been made to several accounts through the US banks. Earlier, Sri Lanka released funds to fake foreign accounts in spite of warnings regarding the suspicions about the process.

The funds were part of a bilateral debt repayment to Australia with a settlement due in September 2025. The payment was part of a $ 22.9 million debt settlement.

The lapses occurred in the wake of far reaching changes regarding the debt management functions. In terms of a particular condition of the International Monetary Fund (IMF), Sri Lanka’s debt management functions that had been previously handled by the Central Bank were transferred to a new institution established under the General Treasury—the Public Debt Management Office (PDMO).

Sources said that regardless of the loss of USD 2.5 mn, Sri Lanka couldn’t have defaulted and therefore payments had been made.

Sources who closely followed the issue said that the government owed an explanation and public apology regarding the loss of USD 2.5 mn and how fresh payments were made.

Sources said that the USD 2.5 mn paid to fake accounts had been lost and could never be traced. CoPF Chairman Dr. Harsha de Silva has said that the NPP government has told the IMF that stolen USD 2.5 mn would be recovered from the public by introducing an amendment to the budget.

By Shamindra Ferdinando

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Former Minister Nalin raises defence of double jeopardy

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Nalin Fernando

The Court of Appeal  yesterday (18) postponed until June 25 the hearing of a petition filed by former Minister Nalin Fernando seeking the dismissal of an indictment brought against him by the Attorney General in connection with the controversial ‘Carrom Boards’ case.

The petition was taken up before a bench comprising Justices P. Kumararatnam and Pradeep Hettiarachchi.

Appearing for the petitioner, President’s Counsel Ali Sabry, instructed by Attorney-at-Law Ramzi Bacha, informed court that Fernando had already been convicted and sentenced to 30 years rigorous imprisonment in a case instituted by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) arising from the same incident.

Counsel argued that the Attorney General had subsequently filed a separate case based on the same set of charges and maintained that subjecting an accused person to a second prosecution for the same offence was contrary to law.

He submitted that preliminary objections on the issue had been raised before the Colombo High Court but were dismissed by the trial judge.

The petitioner has therefore sought a declaration from the Court of Appeal that the indictment filed by the Attorney General is unlawful and requested that the charges be set aside.

The court directed that the matter be called again on June 25, when the Attorney General is expected to present submissions on the petition.

The case stems from allegations that during the 2015 presidential election campaign, 14,000 carrom boards and 11,000 checkers boards were imported and distributed through Lanka Sathosa outlets for allocation to political offices of former President Mahinda Rajapaksa, resulting in an estimated loss of Rs. 39 million to the State.

Based on those allegations, the Attorney General has instituted proceedings against Fernando before the Colombo High Court under the Public Property Act.

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UNP asks whether govt. obtained findings of FBI probe into 2019 Easter Sunday carnage

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The UNP yesterday called on the government to clarify whether it had sought access to evidence and documents gathered during a United States investigation into the 2019 Easter Sunday terrorist attacks.

In a statement, the UNP has recalled that then Prime Minister Ranil Wickremesinghe requested the U.S. government to conduct a comprehensive investigation into the attacks immediately after they occurred, citing limitations in local investigative capacity. A similar request was also made during a telephone conversation with then U.S. President Donald Trump on April 22, 2019, the statement said.

According to the UNP, the Federal Bureau of Investigation (FBI) subsequently carried out an extensive investigation in collaboration with Sri Lankan agencies, including the Criminal Investigation Department (CID), Military Intelligence and the State Intelligence Service. The findings were later submitted to the Sri Lankan authorities and accepted by the relevant institutions.

The party noted that FBI Special Agent Merrilee R. Godwin had filed a 71-page affidavit before the U.S. District Court for the Central District of California in November 2020 following a two-year investigation. A criminal case was later instituted in Los Angeles naming suspects who had already been taken into custody in Sri Lanka.

Pointing out that material collected during the U.S. investigation remains in the possession of the FBI and the U.S. Department of Justice, the UNP has asked the government whether it formally requested access to those records after reopening investigations into the attacks.

The UNP has stressed the importance of making the documents available to Sri Lankan judicial authorities, arguing that they could assist efforts to establish the full circumstances surrounding the Easter Sunday attacks.

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