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Treasury bond scams: SJB drags Lotus Tower into ‘conflict’ as SLPP attacks ‘footnote’ gang

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By Shamindra Ferdinando

The main Opposition Samagi Jana Balavegaya (SJB) recently alleged that the Lotus Tower has been leased to a Singaporean company, affiliated with former Governor of the Central Bank, Arjuna Mahendran, accused of perpetrating Treasury bond scams in Feb. 2015 and March 2016.

The accusation was made by Badulla District lawmaker, Chaminda Wijesiri, in Parliament, during a question and answer session.Responding to the former UNPer’s allegation, Chief Government Whip Prasanna Ranatunga said that he was not privy to the Lotus Tower affair.

Maj. Gen. (ret.) Prasad Samarasinghe, Chief Executive Officer of the Colombo Nelum Kuluna Management Private Company, said that only the second floor of the Lotus Tower had been leased to Creative Design Private Company of Singapore at USD 1.42 mn annually.

Denying Mahendran’s alleged involvement in the transaction, Maj. Gen. Samarasinghe said an initial payment had been received and the Singaporean company would bring in the investor to pave the way for launch of operations by April 2023.According to the one-time Military Spokesman, the two parties had entered into a Memorandum of Understanding (MoU) pending the finalization of the lease agreement.

MP Wijesiri, who represented the UNP at the time of the Treasury bond scams, and Urban Development and Housing Minister Ranatunga, clashed over the alleged culpability of UNP/SJB members in the Central Bank fraud.

Minister Ranatunga pointed out that those who tried to scuttle investigations into Treasury bond scams, by inserting footnotes into the second COPE report, were in Opposition Leader Sajith Premadasa’s camp today.In the 2015 bond scam, the Central Bank offered Rs. 1 bn worth of 30-year Treasury bond, carrying a fixed interest rate of 12.5% to the market, but ended up selling bonds to a value of Rs. 10 bn. This was 10 times the original offer.

Minister Ranatunga quoted former UNP/SJB MP Ranjan Ramanayake as having said that many UNP/SJB lawmakers had received parliamentary polls campaign funds from Mahendran.

MP Wijesiri said that he couldn’t accept the Chief Government Whip’s refusal to answer questions regarding Treasury bond scams on the basis the matter was before courts. Lawmaker Wijesiri said that the State Finance Minister disclosed the truth a month ago in Parliament.SLPP MP Wasantha Yapa Bandara, who had been in the Chair at that time, asked MP Wijesiri to pose his question.

MP Wijesiri: “Those responsible for Treasury bond scams have been identified. You are still in government because Ranil Wickremesinghe is the President. Treasury bond scams caused the ruination of the country. At that time, you alleged the involvement of the incumbent President in Treasury bond scams that bankrupted the country.”

Minister Ranatunga: “In terms of Standing Orders 36 (E), we cannot discuss a matter dealt in a court of law. Therefore, I will respond according to the Standing Orders. The person (SLFP leader Maithripala Sirisena) who served as the President at that time of the Treasury bond scams now represents the Opposition (contested Polonnauruwa on the SLPP ticket).

Several MPs inserted ‘footnotes’ to sabotage the COPE report issued by the then JVP MP Sunil Handunetti. Dr. Harsha de Silva, Sujeewa Senasinghe, Ajith P. Perera, Harshana Rajakaruna, Hector Appuhamy, Ashok Abeysinghe, Abdul Maharoof, Wasantha Aluvihare and Ravindra Samaraweera are members of the footnote gang. The majority of them are with Opposition Leader Sajith Premadasa. We accept that the incumbent President, too, was in that group as the then Prime Minister. We said so then. We won’t deny that now.”

MP Wijesiri: I believe the Chief Government Whip wants to say the footnote gang perpetrated the Treasury bond scams. We thought you would take legal action in this regard. Thieves are with thieves. Lotus Tower has been leased to a Singaporean company, affiliated with Arjuna Mahendran.”

Minister Ranatunga: “Those who had received money from Arjuna Mahendran’s son-in-law Arjun Aloysius (of Perpetual Treasuries Private Ltd) utilized such payments for election campaigns. They are in your group. I didn’t say so. Ranjan Ramanayake did. Ramanayake claimed all electoral organizers received campaign funds from Arjun Aloysius. Such payments will be proved in court of law. We are not involved with Arjun Aloysius. Therefore, I do not know about the Lotus Tower affair. I do not know whether these accusations are made taking cover behind parliamentary privileges.”

Sri Lanka’s efforts to convince Singapore to repatriate Singaporean national Arjuna Mahendran has failed so far.



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Namal, Janaki further remanded

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SLPP MP Namal Rajapaksa and former Krrish Group Executive Director and businesswoman Janaki Siriwardena were further remanded until October 23 by the Colombo Chief Magistrate’s Court yesterday in connection with an alleged Rs. 70 million bribery case involving the Krrish Group.

Colombo Chief Magistrate Asanga S. Bodaragama rejected the bail application filed on behalf of Siriwardena.

The Magistrate said the order on Namal Rajapaksa’s bail application was not ready and would be delivered on the next court date.

The Commission to Investigate Allegations of Bribery or Corruption (CIABOC) arrested the two suspects and produced them before court over allegations that a bribe of Rs. 70 million had been solicited and accepted in connection with the affairs of the Krrish Group.

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Review of progress in reforms and modernisation of key state revenue-collecting institutions

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A progress review meeting on reforms and modernisation initiatives at Sri Lanka’s key state revenue-collecting institutions was held on Thursday  (15) at the Presidential Secretariat, chaired by Secretary to the President Dr Nandika Sanath Kumanayake, with the participation of representatives of the International Monetary Fund (IMF) and officials of the Revenue Administration, Reform and Modernisation Bureau (RARMB) of the Presidential Secretariat.

At the meeting, the IMF representatives commended the revenue collection efficiency of the Department of Inland Revenue, Sri Lanka Customs and the Department of Excise, the country’s three leading state revenue-collecting institutions. Extensive discussions were also held on the progress of the reform and modernisation programmes being implemented at these institutions.

Secretary to the President Dr Nandika Sanath Kumanayake outlined the progress achieved by the three institutions to date and the reforms planned for implementation in the future.

The IMF representatives also highlighted the importance of strengthening risk management, developing human resources and ensuring the efficient operation of computer systems at the respective institutions.

Senior Additional Secretary to the President Seevali Arukgoda also attended the meeting. The IMF was represented by Cindy Negus, Senior Economist in Revenue Administration for the Asia and Pacific, Europe, Middle East and Central Asia regions; Alison Lister, Revenue Administration Adviser; and Gregory Toppin, Resident Revenue Adviser in Sri Lanka. A group of senior officials from the Revenue Administration, Reform and Modernisation Bureau of the Presidential Secretariat also participated.

(President’s Media Division)

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Cut power bills by 3-5%, don’t hike them, consumers demand

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By Anuradha Hiripitiyage

Electricity tariffs should be reduced by between 3 and 5 percent instead of being increased by 2.88 percent in the fourth quarter, as proposed by the National System Operator (NSO), Electricity Consumers’ Association Secretary Sanjeewa Dhammika said.

Addressing a media briefing in Maradagahamula, Divulapitiya, Gampaha, yesterday (16), Dhammika said a proper assessment of electricity generation costs, including the contribution of hydropower, could justify a reduction in tariffs.

He said the NSO had sought approval from the Public Utilities Commission of Sri Lanka (PUCSL) for a 2.88 percent tariff increase, which was expected to generate an additional Rs. 4,438 million.

However, the Commission had indicated that an increase of only 1.46 percent was warranted, amounting to Rs. 2,245 million, he said, adding that even this increase was unnecessary.

Dhammika alleged that the proposed revision sought to pass on to electricity consumers the financial burden arising from the non-arrival of five coal shipments and failed tenders.

“The Government had said that the burden of coal-related losses would not be passed on to the public. It is therefore unjust to make consumers bear these costs,” he said.

He pointed out that the PUCSL had forecast that hydropower would account for 32.34 percent of total electricity generation in the coming quarter, while the cost of such generation would represent only 3.45 percent of the overall cost of electricity production.

Consumers should benefit from the lower cost of hydropower generation rather than bear the burden of more expensive thermal power generation, he said.

Dhammika also questioned the inclusion of Rs. 669 million in capacity charges that had not been approved by the PUCSL, as well as a further Rs. 1,069 million to repay loans relating to incomplete projects.

Including such charges in the proposed tariff revision was unjustifiable, he said.

The PUCSL has given the public until October 30 to submit their views on the proposed tariff revision.

Dhammika said the possibility of increased hydropower generation in the coming weeks, as reservoir levels rise, should also be taken into account when determining electricity tariffs.

He maintained that tariffs could be reduced by 3 to 5 percent if hydropower generation was properly assessed and coal-related losses and unapproved charges were excluded from the calculations.

He further claimed that electricity tariffs could be reduced by as much as 10 percent through the promotion of renewable energy and the effective use of solar power and battery storage systems.

The Electricity Consumers’ Association urged the Government to withdraw the proposed tariff increase, insisting that consumers should not be made to bear costs arising from coal supply problems and other disputed charges.

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