Controversy over change of Cabinet portfolios continues:

Ex-minister responds to accusations, Sevanagala and Pelwatte brought under Dilum

By Shamindra Ferdinando

Minister Mahinda Amaraweera was given the plantation industries portfolio as Dr. Ramesh Pathirana, who previously held it, declined to present a Cabinet paper to hand over the loss-making Sevanagala Sugar Industries to former Minister Daya Gamage, political sources alleged yesterday (29).

Both Amaraweera and Dr. Pathirana contested the last general election held in August 2020 on the SLPP ticket.

Sources said that the ruling SLPP had strongly opposed President Ranil Wickremesinghe’s move to return Sevanagala Sugar Industries to UNP financier Gamage who procured the state-owned enterprise in 2001 during the previous UNP administration though it was reverted to government ownership under the Mahinda Rajapaksa administration.

Responding to The Island queries, sources said that the recent change in Cabinet portfolios took place against the backdrop of the SLPP’s refusal to back the move on Sevanagala. In the Cabinet reshuffle, Dr. Ramesh Pathirana received the appointment as Health Minister in addition to the Industries portfolio which he held at that time, whereas the Plantation Industries portfolio, held by him, was assigned to Hambantota District MP Amaraweera. Dr. Pathirana represents the Galle district.

Amaraweera received the Plantation Industries portfolio in addition to his post as Agriculture Minister. Sources said that though the removal of Health Minister Keheliya Rambukwella received media attention, as it took place amidst public furore over the unprecedented deterioration of the public health sector, the bone of contention is the appointment of Amaraweera as the Plantation Minister.

Sources stressed that the SLPP felt that the SLFP rebels, currently in the Cabinet, would carry out President Wickremesinghe’s directives, regardless of the consequences. Sources revealed that the SLPP made representations at the highest level to the Office of the President in that regard.

Former Primary Industries and Social Empowerment Minister Daya Gamage said that the government should either hand him over the enterprise or pay him compensation as he made quite a large investment in a once-loss making project. The former MP Gamage said so when The Island sought his response to claims that attempts were being made to hand over Sevanagala to him.

The UNPer said that the Court of Appeal ruled that Sevanagala should be handed over to him or compensation should be paid. Acknowledging that a group of workers had moved the Supreme Court against the Court of Appeal ruling, the ex-minister said that he was ready to accept the factory or be granted adequate compensation. According to Gamage, the Rajapaksa administration had taken over the factory 12 years ago leaving him with a massive bank loan whereas the enterprise suffered due to poor management.

Gamage said that there were two cases pending regarding the Sevanagala matter. The ex-MP stressed the urgent need to address this issue as the failure on the part of the government to compensate him couldn’t be justified under any circumstances. The former parliamentarian said that he turned around the loss-making venture in a short time though the Rajapaksa government didn’t appreciate that.

However, SLPP Moneragala District MP Dr. Gayashan Nawanandana said that he made representations to President Ranil Wickremesinghe over the phone and at a government group meeting nearly four months ago. The MP said so in response to The Island query whether he felt cheated by the Wickremesinghe-Rajapaksa government moving to again privatise Sevanagala as alleged by the SLPP.

Dr. Nawanandana said that he was not only concerned about the alleged privatisation move but the continuing waste, corruption, irregularities and mismanagement at the enterprise. If it was properly run it could bring in sufficient revenue to the government, he said. The first time entrant to the Parliament, Dr, Nawanandana contested the last general election on the SLPP ticket as a nominee of Vasudewa Nanayakkara’s Democratic Left Front (DLF).

Asked whether he resented the plantation portfolio being placed under the purview of Minister Amaraweera, Dr. Nawanandana emphasized that though the plantation portfolio had been assigned to Amaraweera, both Sevanagala and Pelwatte Sugar had been gazetted under Investment Promotion Minister Dilum Amunugama. The MP said that both Sevanagala and Pelwatte had been run in a haphazard manner since 2020 and the urgent need to restore financial and administrative discipline at every level couldn’t be denied.

“All of us know the national economy is in a precarious situation. With the country now tied to the USD 2.9 bn IMF bailout package, we realise the situation the country is in. Unfortunately, the powers that be seemed to be still hesitant to take tangible measures to stamp out corruption in the public sector,” lawmaker Nawanandana said, adding that he raised the issue at hand both in Parliament and outside.

MP Nawanandana said that the top management of state enterprises should be held accountable for losses incurred due to shortcomings and corruption on their part.

The MP grudgingly acknowledged that Dr. Pathirana, in spite of being the Minister in charge of Sevanagala and Pelwatte, couldn’t really manage the situation due to powerful external interventions. Hundreds of people had been recruited even without the knowledge of Dr. Pathirana. Dr. Nawanandana said that though the country was declared bankrupt in April last year remedial measures were yet to be taken to clean up the public sector corruption.

The MP expressed confidence as assured at the government parliamentary group, President Wickremesinghe would take tangible measures to restore discipline at Sevanagala and Pelwatte. The MP said that the bankrupt economy couldn’t bear the continuing losses of the corrupt political party system coupled with mega business interests inflicted on the country.The reports put out by parliamentary watchdog committees were evidence that the public sector continued to bleed the economy.