Connect with us

News

NJC says MoC signed by previous govt on ECT not binding, calls for its cancellation

Published

on

The National Joint Committee (NJC) has urged the government not to lease the East Container Terminal (ECT) to India or any other country. The NJC, in a statement issued yesterday (29) warned the project would jeopardize national security, independence and political-economic sovereignty.

The NJC said that despicable practice of alienating strategic national assets could not be adopted by the incumbent administration because Gotabaya Rajapaksa and his Government were elected on an over-whelming patriotic mandate to protect our strategic assets.

The NJC drew the attention of the President, PM, the Cabinet of Ministers and also the parliamentarians, to the following facts, evolutions and risks associated with this proposal to lease a share of ECT:

1. 

Sri Lanka cannot afford to become victim of international political power struggle among global and regional powers. Having already allowed China to occupy Hambantota Port, and India to occupy Trincomalee Oil Tanks, the country should not make the mistake of allowing India, any other nation or private party to occupy ECT.

2.

The ECT being the deep draft terminal the SLPA has and should be kept under full control and management of the SLPA, as also recommended by the Expert Committee appointed to study the development of ECT. Any alienation of the ECT would lead to devastating repercussions on SLPA in terms of losing control of modern shipping business and foregoing revenues.

3.

We learn that the SLPA has capital funds voted for the purpose of gradual development of the ECT by itself, and that it has few hundreds of millions of dollars in reserves.

Besides, the ECT could be operated as it is even now, and earn nearly 50 million dollars annually enabling SLPA to further develop ECT on a stage-by-stage basis using its own resources that would be earned through terminal operations. Therefore, the claim that the SLPA does not have resources to develop the ECT by itself is not only incorrect, but also misleading the public.

4.

While we are confident that the ECT could be gradually developed by the SLPA while operating it, the NJC is of the opinion that the Government’s apparent move to negotiate with a single foreign firm is against the national interest and is violating transparent procurement principles, even if one presumes that private local or foreign resource mobilization is necessary. If such external investment is needed, the Government with the utmost responsibility of upholding the citizen’s rights should have called for competitive bids from among potential investors, preferably from local private sector companies first and internationally thereafter.

5.

Firstly, the MOC dated 28th May 2019 is not a binding agreement but an arrangement to negotiate. In the opening paragraph of the MOC, the three parties confirm their “commitment to cooperate”. The Paragraph 2 of the MOC states that GOSL invites “Japanese participants concerned, and Indian participants concerned to take 49% stake collectively in the ‘Terminal Operations Company’ (TOC) that will be setup”. Thus the offer is made by Sri Lanka for India and Japan to “collectively take 49%” and not for any party to take the whole of 49% by itself. Unless a fresh offer is made by Sri Lanka to India to take 49% stake by itself, the latter cannot accept the offer made by the previous Government to both India and Japan collectively in as much as Japan has now withdrawn from the MOC.

6.

Therefore, it is not correct to state that the Government is obliged to consider the commitments made to India previously.Sri Lanka is not obliged by this agreement to make a fresh offer to India for the whole 49% stake in the TOC, and therefore there is no legal obligation to proceed with the earlier offer made. In any event the offer has now lapsed as India cannot possibly now collectively take 49% with Japan in view of Japan’s withdrawal.

7.

In paragraph 5 of the MOC it is stated that the three governments “will hold a joint working group meeting among authorities concerned from the three countries in a timely manner to discuss issues”. This statement itself demonstrates that there is no binding contract entered between Sri Lanka on the one hand and India and Japan on the other as it is only an agreement to discuss. In any event the agreement is for the three Governments to discuss and not for two Governments to discuss. It is interesting to note that in clause 5(iv) the parties had agreed to discuss “modification of this memorandum”. Justice Weeramantry, former judge of the Supreme Court of Sri Lanka, in his “Treaties on the Law of Contract prevailing in Ceylon”, states: “so long as the parties are in negotiation either party may retract”.

Therefore, the Government’s reluctance to drop the idea of alienating the South Port of Colombo is not justified. One wonders whether the provisions relating to the National Procurement Commission was removed from the Constitution of Sri Lanka to plunder the resources of this nation whilst making empty declarations to safeguard national interest prior to the election. On or about 22.10.2020 the Minister of Ports and Shipping Rohitha Abeygunawardena has submitted a Cabinet Memorandum disclosing the involvement of another investor by the name of ADANI Ports and Logistics Group. It appears that the government intends awarding the contract to this group.

The question is whether Sri Lanka could, without calling for tenders, part with the ECT to the ADANI Group when the ADANI Group was not a party to the MOC entered into by the previous government. This Cabinet Memorandum itself demonstrate that giving any part of the Colombo South Port to the ADANI Group is in itself a violation of the MOC in as much as there is nothing in the MOC which permits a partner government to abdicate its rights and interests under the MOC to a third party. Article 28(d) of the Constitution of Sri Lanka states that it is the duty of every person in Sri Lanka to preserve and protect public property. Both the Minister of Port and Shipping and the Chairman of the Ports Authority, Rohitha Abeygunawardane and Lt. Gen. Daya Rathnayake, would be violating the Constitution if the property entrusted to them is alienated without getting the best price after competitive bidding. This would be a fraud that might attract criminal prosecution if not by their own government by a future government.

8.

Surprisingly, there is no information made known to the public, the true owners of this strategic asset, as to the basis of selection of this single party for negotiations. Besides, the selected company with which the Government appears to be contemplating to negotiate is a direct competitor of Sri Lanka’s ports, and such an investor cannot be reasonably expected to make managerial decisions for the betterment of Colombo Port. It may be pertinent to note in this regard that the said firm is currently developing several competing ports in the South Asian region, it would be unwise to invite such a firm to take control of our strategic Port terminal, where a deliberate action to run down our Port cannot be excluded.

9.

Besides, the NJC learns that the said firm has been accused of many anti-social and anti-environmental practices both in India and Australia, and no socially prudent activity could be expected from such a managing partner, leading to serious risks pertaining to social economic and political ill effects on Sri Lanka.

10.

If an Indian firm occupies Colombo Port, the possibility of Indian labour being imported to operate the ECT will become significant, imposing threat to employee welfare both at Port and generally in the local economy. This would also pave the way for infamous ETCA attempted by the previous regime, and not proceeded because of the public and professional pressure. It is with dismay that we recall the protest against such moves launched by the then opposition politicians who appear to have forgotten all that now being in the Government.

11.

After this government came into power, they seem to proceed with the project on the basis that they are obliged to respect the previous agreement entered into with other governments and was attempting to justify the alienation of the Colombo South Port without calling for tenders.

12.

Ironically this matter has drawn public attention at a time when, the chapter dealing with the National Procurement Commission had been removed with the 20th Amendment.

13.

The question that most people raise today is whether the Government’s justification was correct and whether Sri Lanka could withdraw or not proceed with the MOC, Sri Lanka entered into with India and Japan. Subsequently Japan withdrew from this MOC. The question is, in the absence of Japan, whether there is a live and valid agreement between the Governments of India and Sri Lanka that could be enforced.

14.

Is the GoSL aware that Adani has been booked by the Central Bureau of Investigation in India for causing loss to Indian treasury as a result of being allowed to bid for airport contracts without experience? Adani Group has been fined by Australia for misinterpreting environmental approval conditions in mining operations. Back home in India, Indian farmers are on the road protesting against Adani Group exploiting them. There is a “Stop Adani Movement” formed in Sydney Australia. Australia’s Future Fund was forced to divest its holdings in “Adani Ports” due its corrupt connections with Myanmar’s Military and Adani’s role in the Carmichael mine project.

15.

Adani has a stated objective that it is setting up deep water ports to take away the transshipment cargo business model of Colombo Port. Adani is building just adjacent to Colombo Port “The Vizhinjam Port in Kerala” with 6.2 million TEU capacity and an investment in excess of US$10 bn and other deep water ports all over India and even in places like Andaman Nicobar Island with the stated objective of transferring the Indian Transshipment Cargo business of Colombo Port to these ports. It is common sense that a company making such huge capital investments in its motherland will invest in the Colombo Port in order to try to kill its transshipment cargo business model in the long term.



Continue Reading
Advertisement
Click to comment

Leave a Reply

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

Latest News

Complete all projects funded under the LKR. 500 bllion allocation for Ditwah within this year – President

Published

on

By

President Anura Kumara Dissanayake emphasised that both the political authority and public officials have a responsibility to ensure that the LKR. 500 billion allocated by the Government in response to Cyclone Ditwah is utilised effectively and efficiently for the recovery and development of the affected communities and areas. The President further stressed the need to complete all related projects before the end of this year.

The President also pointed out that the Government has already taken steps to transform the culture in which the law was selectively enforced based on power, wealth and political connections and to establish a new culture where all citizens are equally subject to the law. The President noted that certain groups are attempting to portray the creation of a law-abiding society as a major crisis, but stressed that, in building a civilised nation, it is essential to create a society in which everyone is accountable under the law.

President Anura Kumara Dissanayake made these remarks while attending the Special District Coordination Committee Meeting for Matale held on Tuesday (12) morning  at the Veera Keppetipola Hall in Matale.

The President further emphasised that the law should not be regarded as an obstacle preventing public officials from properly discharging their duties. He called upon all officials to remain fully committed to rebuilding the lives of the people by working within the legal framework and ensuring that public funds are utilised in a planned, efficient and productive manner.

During the meeting, the President also conducted an extensive review of the progress of compensation payments for the loss of lives and property caused by Cyclone Ditwah, as well as the measures taken to restore housing and normalcy to affected communities.

Officials stated that the compensation allowances of LKR 25,000 and LKR 50,000 granted to families affected by Cyclone Ditwah have now been fully disbursed within the Matale District. They further noted that the student assistance allowances of LKR 15,000 and LKR 10,000 have also been fully paid.

Officials also informed the meeting that the disaster had caused complete damage to 254 houses and partial damage to 3,829 houses within the district. Compensation payments have already been completed for all houses eligible to receive assistance without a formal assessment, while assessment procedures for the remaining houses are currently underway.

Extensive discussions were also held regarding alternative solutions to issues arising from various circumstances, including the lack of land ownership, the location of properties within high-risk zones and occupation of protected reserve areas. The meeting further discussed possible amendments to the existing criteria in order to expedite these processes.

The President also reviewed the progress relating to compensation payments for lives lost due to the disaster, compensation for families relocated from high-risk areas, the provision of housing rent allowances, the issuance of National Building Research Institute (NBRI) reports, as well as the progress of housing construction and land acquisition activities.

The President emphasised the necessity of relocating all families currently residing in high-risk areas affected by Cyclone Ditwah. Highlighting the importance of formulating the necessary legal provisions in this regard, the President instructed officials to treat the resettlement of these families in safer locations as a priority matter and to expedite the process.

The President also inquired into the measures being taken to care for children who lost their parents due to the cyclone and to safeguard their future. The President instructed officials to prepare individual support programmes for each affected child and refer them to the Ministry of Women and Child Affairs.

Issues affecting the school system within the district were also discussed during the meeting. The President highlighted the importance of releasing the relevant lands and constructing school buildings in line with the plan being implemented under the Ministry of Education for the relocation and restoration of the school system.

In addition, the President reviewed the progress of the road development programme in the Matale District relating to roads damaged by Cyclone Ditwah.

Officials stated that 16, A and B grade roads and two bridges in the Matale District were damaged by the cyclone. They further noted that reconstruction work on all 16 roads and one of the bridges has now been completed, while discussions were held regarding the expedited reconstruction of the remaining Moragahakanda Bridge as a permanent structure.

The President also inquired into the progress of construction work on the Riverston Road, which is of significant importance to the tourism industry, as well as the Galewela–Matale road project, which has remained a long-standing issue. He instructed officials to expedite the completion of both projects.

The meeting also reviewed the progress of restoration work relating to roads, bridges, culverts and water projects under local government authorities in the Matale District that were damaged by the disaster.

In addition, discussions were held regarding the compensation process under the Ministry of Industry for businesses in the service sector, the tourism sector and the mining sector that suffered losses due to the disaster, as well as the challenges that have arisen in implementing the compensation programme.

The President also reviewed the measures taken to restore the agriculture and livestock sectors. He noted that the Government has placed special emphasis on promoting rural agriculture, with a focus on developing a production-driven economy.

Discussions were also held on the Matale Urban Development Plan implemented under the 2026 Budget allocations, as well as the project to relocate the Dambulla Hospital. The President stressed the importance of ensuring that these initiatives are implemented within the stipulated timeframe and that their benefits are effectively delivered to the public.

The meeting was attended by the Chairman of the Matale District Coordinating Committee and Deputy Minister of Buddhasasana, Religious and Cultural Affairs, Gamagedara Dissanayake, Co-Chairman and Governor of the Central Province, Professor Sarath Abayakon, Members of Parliament Sunil Biyanwila and Dinesh Hemantha and the Chief Secretary of the Central Province, Ajith Premasinghe, along with local government representatives. Also present were the Commissioner General of Essential Services and Chief of Staff to the President,  Prabath Chandrakeerthi, Secretary to the Ministry of Defence, Air Vice Marshal Sampath Thuyacontha (Retired), Matale District Secretary, L.P. Madanayaka, senior officials from relevant departments, representatives of the security forces and other state officials.

(PMD)

Continue Reading

News

Development projects should be carried out in line with the practical needs of the people – PM

Published

on

By

Prime Minister Dr. Harini Amarasuriya instructed officials to implement development projects by taking into account the practical needs of the people.

The Prime Minister made these remarks at the Colombo District Planning Committee meeting held on Tuesday  (12) at the Colombo District Secretariat to review the progress of development projects in the Colombo District.

During the meeting, discussions focused on a number of development projects scheduled to be implemented in 2026 and 2027, with special attention given to rural road development, alleviation of poverty, and infrastructure development.

Under the Decentralized Budget Programme, more than Rs. 195 million has been allocated for 2026, and Members of Parliament representing the district have submitted their proposals accordingly. To date, 240 project proposals have been received through Divisional Secretaries, and approval has already been granted for 126 projects valued at Rs. 127 million.

An allocation of Rs. 100 million has been made to ensure the safety of the roads in the Colombo District, with priority given to installing safety barriers and traffic signboards in hazardous locations. In addition, officials stated that plans have been prepared targeting 2027 to construct rural bridges with an allocation of Rs. 100 million and to develop 50 kilometres of roads.

A sum of Rs. 1,036 million has been allocated for the “Praja Shakthi” programme aimed at alleviation of poverty, and the Prime Minister instructed officials to complete all related projects by 30 November 2026. Further, discussions were also held regarding the development of school playgrounds with the support of the Ministry of Sports, as well as the implementation of special projects under the Ministry of Buddhasasana and Environment.

The meeting was attended by the Minister of Justice Harshana Nanayakkara, Deputy Speaker Dr. Rizvie Salih, Colombo District Coordinating Committee Chair and Member of Parliament Lakshman Nipuna Arachchi, Members of Parliament Samanmalee Gunasinghe and Asitha Niroshana, Colombo District Secretary Ginige Prasanna Janaka Kumara, along with public representatives and government officials representing the Colombo District.

[Prime Minister’s Media Division]

Continue Reading

News

Ex-SriLankan CEO’s death: Controversy surrounds execution of bail bond

Published

on

Kapila Chandrasena

Prof. Prathibha Mahanamahewa has emphasised the need to examine the circumstances under which the court staff executed the bail bond, and the release process, in respect of the late Kapila Chandrasena, former Chief Executive Officer of SriLankan Airlines.

Chandrasena’s body was found in a house at Pedris Road, Colombo 03.

In case of any doubt regarding bail condition/s or any other matter (insufficient surety, identity issues, suspicious documents and unclear order), the Registrar had to get in touch with the relevant Magistrate, Mahanamahewa said.

Mahanamahewa was responding to The Island query regarding the acceptance of two Muslims as sureties. Had they followed the time-tested procedure, court registry/registrar staff would never have accepted sureties as blood relatives of Chandrasena, Mahanamahewa said, alleging a major defect in the execution of the bail bond.

They were arrested by police and remanded by the Colombo Magistrate’s court, till 13 May, pending further investigations.

Colombo Chief Magistrate Asanga S. Bodharagama, on 5 May, granted to Chandrasena cash bail of Rs. 500,000 and three surety bails of Rs. 10 million each. But soon after Chandrasena received bail, the court was told that two of the Rs. 10 million sureties had been produced, after payment of Rs. 15,000 each, were made to those two individuals to act as guarantors.

The bail application had been submitted by Rienzie Arsecularatne, PC, appearing on behalf of Kapila Chandrasena, when the case was earlier taken up, on 28 April.

Police also arrested an elderly person who arranged for the two persons who hadn’t even seen Chandrasena, even once, to offer themselves as sureties.

As soon as the police revealed the fraudulent manner Chandrasena obtained bail, Chief Magistrate Bodharagama issued an order to arrest and produce him before the court. This order was issued consequent to a request made by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC), on the grounds that the defendant had violated bail conditions. The CIABOC wanted Chandrasena held pending the conclusion of the case.

Sources familiar with the execution of bail bond said that the moment the suspects had submitted their National Identity Cards and letters from Grama Sevakas, the court registry/registrar staff should have rejected them. In a such high-profile case, the failure on the part of the lawyers, representing Chandrasena, to check the gsureties’ relationship with Chandrasena, was another glaring shortcoming, sources said, pointing out that after having submitted bail application on 28 April, the defence team should have come prepared to put forward genuine guarantors.

The Island contacted the Bar Association of Sri Lanka for comment on the manner in which the court staff had handled bail for Chandrasena, but there was no response.

Sri Lanka’s former Ambassador to Moscow, accredited to Kiev, Udayanga Weeratunga, said that a thorough investigation should be conducted to ascertain facts about the execution of the bail bond. Asked whether he had been in touch with Chandrasena, Weeratunga said that he spent his first day at Welikada with Chandrasena and Ranjan Ramanayake in one cell. “That happened on 14 February, 2020. I was arrested when I returned to the country, from the UAE, and produced before the then Magistrate Ranga Dissanayake, the incumbent Director General of CIABOC,” Weeratunga said.

Weeratunga said that a couple of months after the change of government in 2024, the US State Department imposed a travel ban on him and Chandrasena and their families over what the US termed as significant corruption.

Weeratunga said that altogether the US designated 14 persons and, of them, two were Sri Lankan, who happened to be him and Chandrasena, accused of corruption in respect of acquisition of MiG 27s from Ukraine and the Airbus deal, during President Mahinda Rajapaksa’s tenure as the President.

SLPP sources said that Chandrasena’s demise shouldn’t prevent proper investigation on his affidavit that claimed pressure brought on him to name Mahinda Rajapaksa as a recipient of the Airbus bribe.

By Shamindra Ferdinando

Continue Reading

Trending