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	<title>Comments on: &#8220;General&#8221; trends in the politics of the General</title>
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		<title>By: expertadvisor</title>
		<link>http://dbsjeyaraj.com/dbsj/archives/1263#comment-44190</link>
		<dc:creator>expertadvisor</dc:creator>
		<pubDate>Tue, 08 Nov 2011 12:01:08 +0000</pubDate>
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		<description>&lt;strong&gt;expertadvisor...&lt;/strong&gt;

[...]&#8220;General&#8221; trends in the politics of the General &#171; dbsjeyaraj.com[...]...</description>
		<content:encoded><![CDATA[<p><strong>expertadvisor&#8230;</strong></p>
<p>[...]&#8220;General&#8221; trends in the politics of the General &laquo; dbsjeyaraj.com[...]&#8230;</p>
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	<item>
		<title>By: Nelum</title>
		<link>http://dbsjeyaraj.com/dbsj/archives/1263#comment-29030</link>
		<dc:creator>Nelum</dc:creator>
		<pubDate>Mon, 13 Dec 2010 00:00:42 +0000</pubDate>
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		<description>Appoi DBS , you have written news about govt-Tna talks that has not come in any other paper no? Wow do you get this news first while being in Canada? Tell will you Aney?

DBSJ RESPONDS:

Aney Nelum, How to tell these things aney? How I get news first is jealously guarded professional secret no kella? Cant simply tell no Aney?</description>
		<content:encoded><![CDATA[<p>Appoi DBS , you have written news about govt-Tna talks that has not come in any other paper no? Wow do you get this news first while being in Canada? Tell will you Aney?</p>
<p>DBSJ RESPONDS:</p>
<p>Aney Nelum, How to tell these things aney? How I get news first is jealously guarded professional secret no kella? Cant simply tell no Aney?</p>
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	<item>
		<title>By: Gewinne</title>
		<link>http://dbsjeyaraj.com/dbsj/archives/1263#comment-21401</link>
		<dc:creator>Gewinne</dc:creator>
		<pubDate>Sun, 16 May 2010 13:14:49 +0000</pubDate>
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		<description>hola 
i&#039;m so glad that i saw this blog. that post was so nice. thanks again i saved this blog.
are you planning to write similar posts?</description>
		<content:encoded><![CDATA[<p>hola<br />
i&#8217;m so glad that i saw this blog. that post was so nice. thanks again i saved this blog.<br />
are you planning to write similar posts?</p>
]]></content:encoded>
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	<item>
		<title>By: Paramsothy Jayakumar</title>
		<link>http://dbsjeyaraj.com/dbsj/archives/1263#comment-18194</link>
		<dc:creator>Paramsothy Jayakumar</dc:creator>
		<pubDate>Tue, 19 Jan 2010 14:17:11 +0000</pubDate>
		<guid isPermaLink="false">http://dbsjeyaraj.com/dbsj/?p=1263#comment-18194</guid>
		<description>Abraham Lincoln told &quot;Nearly all men can stand adversity, but if you want to test a man&#039;s character, give him power.&quot;
Wanna test.. find some innocent guy and give him some money and power.. you see the difference..
For Fonseka, now we know what he has done with limited power as army officer and imagine with executive powers..
Some one must be nuts to think a guy behaving this insane without power will do any better after getting power..
There are no ifs or buts Fonseka winning means he will be sri lanka&#039;s Idi Amin. But if thats what people in my country wants so be it.</description>
		<content:encoded><![CDATA[<p>Abraham Lincoln told &#8220;Nearly all men can stand adversity, but if you want to test a man&#8217;s character, give him power.&#8221;<br />
Wanna test.. find some innocent guy and give him some money and power.. you see the difference..<br />
For Fonseka, now we know what he has done with limited power as army officer and imagine with executive powers..<br />
Some one must be nuts to think a guy behaving this insane without power will do any better after getting power..<br />
There are no ifs or buts Fonseka winning means he will be sri lanka&#8217;s Idi Amin. But if thats what people in my country wants so be it.</p>
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		<title>By: Paramsothy Jayakumar</title>
		<link>http://dbsjeyaraj.com/dbsj/archives/1263#comment-18193</link>
		<dc:creator>Paramsothy Jayakumar</dc:creator>
		<pubDate>Tue, 19 Jan 2010 13:44:24 +0000</pubDate>
		<guid isPermaLink="false">http://dbsjeyaraj.com/dbsj/?p=1263#comment-18193</guid>
		<description>Vice Chancellors of all Universities and Academics today declaired their support to the candidature of President Mahinda Rajapaksa at the upcoming election on January 26th.

They jointly commended the efforts &amp; the vision of the President implemented under the &quot;Mahinda chinthanaya &quot;, a vision for a better future for the country.

They also recognized the success achieved over the past four years under the leadership of the President and called upon all the people to support the Mahinda Chinthanaya ,the only way forward for a brighter future for the country.

These Vice Chancellors claimed there was no comparison that could be drawn between the Mahinda Chinthana &amp; the opposition candidate Sarath Fonseka&#039;s Manifesto - &quot;Believable Change&quot;. &quot;The President&#039;s Manifesto is more comprehensive and practical&quot;,they noted.

The Vice Chancellors who attended the press conference were Prof:Gamini Samaranayaka the Chairman of the University Grants Commision, Prof.Susirith Mendis the Vice Chancellor of Ruhuna University, Prof. Nandasena the Vice Chancellor of Rajarata University, Prof. N.L Karunarathna the Vice Chancellor of Jayawardanapura University, Prof.Jayasena Kottegoda Vice Chancellor of University of Aesthetic Studies,The Vice Chancellor of Colombo University Mrs.Kshanika Hirimburegama.,The Vice Chancellor of Open University mUpali Widanapathirana,The Vice Chancellor of Kalaniya University Dr.Sarath Amunugama,.Mahinda Rupasingha of Sabaragamuwa University, S.M.M.Ismail the Vice Chancellors of South Eastern University, J.A.Liyanage ,Director of The Gampaha Wickramaarrachchi Aurweda Institute and Dr.K.Premakumara Vice Chancellor of Eastern University.

The UGC Chairman Gamini Samaranayake stated that the President&#039;s leadership has helped to transform university graduates to become nationally &amp; economically developed citizens.He asked the people to elect the President for the next six years so that we can transform the country to a developed country in the future.

Then the Vice Chancellor of the Ruhunu University Susiritha Mendis highlighted that if Sarath Fonseka came into power the country may fall into a millitary dictatorship thus undermining the democracy the country has gained from its Independence.Further he elaborated the power of the five forces that the President has mentioned in the Mahinda Chinthanaya&#039;s second Manifesto which will bring forth future development for the country under the President&#039;s leadership.

Jayasena Kottegoda, Vice Chancellor of University of Aesthetic Studies stated the President had a clear vision to manage Sri Lankan economy while fighting a separatist terrorist war in the country.Further he said that the President increased the per capita income of a person in Sri Lanka from US $ 1000 to US $ 2000 during the past 4 year period.

Then the Jayawardanapura Vice Chancellor mentioned that due to the government&#039;s poverty alleviation projects such as &#039; Gama naguma&#039;, &#039;Maga naguma&#039; many people were benefited and it helped to develop the country.

The Vice Chancellor of the Colombo University called upon all the women in Sri Lanka to be grateful to the President for defeating terrorism and giving the people the opportunity to live peacefully and happily. Thus she asked all Sri Lankans to elect The President in the upcoming election and give him power for another six years so that we will have the opportunity to sustain the development of the country in the future.</description>
		<content:encoded><![CDATA[<p>Vice Chancellors of all Universities and Academics today declaired their support to the candidature of President Mahinda Rajapaksa at the upcoming election on January 26th.</p>
<p>They jointly commended the efforts &amp; the vision of the President implemented under the &#8220;Mahinda chinthanaya &#8220;, a vision for a better future for the country.</p>
<p>They also recognized the success achieved over the past four years under the leadership of the President and called upon all the people to support the Mahinda Chinthanaya ,the only way forward for a brighter future for the country.</p>
<p>These Vice Chancellors claimed there was no comparison that could be drawn between the Mahinda Chinthana &amp; the opposition candidate Sarath Fonseka&#8217;s Manifesto &#8211; &#8220;Believable Change&#8221;. &#8220;The President&#8217;s Manifesto is more comprehensive and practical&#8221;,they noted.</p>
<p>The Vice Chancellors who attended the press conference were Prof:Gamini Samaranayaka the Chairman of the University Grants Commision, Prof.Susirith Mendis the Vice Chancellor of Ruhuna University, Prof. Nandasena the Vice Chancellor of Rajarata University, Prof. N.L Karunarathna the Vice Chancellor of Jayawardanapura University, Prof.Jayasena Kottegoda Vice Chancellor of University of Aesthetic Studies,The Vice Chancellor of Colombo University Mrs.Kshanika Hirimburegama.,The Vice Chancellor of Open University mUpali Widanapathirana,The Vice Chancellor of Kalaniya University Dr.Sarath Amunugama,.Mahinda Rupasingha of Sabaragamuwa University, S.M.M.Ismail the Vice Chancellors of South Eastern University, J.A.Liyanage ,Director of The Gampaha Wickramaarrachchi Aurweda Institute and Dr.K.Premakumara Vice Chancellor of Eastern University.</p>
<p>The UGC Chairman Gamini Samaranayake stated that the President&#8217;s leadership has helped to transform university graduates to become nationally &amp; economically developed citizens.He asked the people to elect the President for the next six years so that we can transform the country to a developed country in the future.</p>
<p>Then the Vice Chancellor of the Ruhunu University Susiritha Mendis highlighted that if Sarath Fonseka came into power the country may fall into a millitary dictatorship thus undermining the democracy the country has gained from its Independence.Further he elaborated the power of the five forces that the President has mentioned in the Mahinda Chinthanaya&#8217;s second Manifesto which will bring forth future development for the country under the President&#8217;s leadership.</p>
<p>Jayasena Kottegoda, Vice Chancellor of University of Aesthetic Studies stated the President had a clear vision to manage Sri Lankan economy while fighting a separatist terrorist war in the country.Further he said that the President increased the per capita income of a person in Sri Lanka from US $ 1000 to US $ 2000 during the past 4 year period.</p>
<p>Then the Jayawardanapura Vice Chancellor mentioned that due to the government&#8217;s poverty alleviation projects such as &#8216; Gama naguma&#8217;, &#8216;Maga naguma&#8217; many people were benefited and it helped to develop the country.</p>
<p>The Vice Chancellor of the Colombo University called upon all the women in Sri Lanka to be grateful to the President for defeating terrorism and giving the people the opportunity to live peacefully and happily. Thus she asked all Sri Lankans to elect The President in the upcoming election and give him power for another six years so that we will have the opportunity to sustain the development of the country in the future.</p>
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	<item>
		<title>By: Paramsothy Jayakumar</title>
		<link>http://dbsjeyaraj.com/dbsj/archives/1263#comment-18180</link>
		<dc:creator>Paramsothy Jayakumar</dc:creator>
		<pubDate>Tue, 19 Jan 2010 01:39:07 +0000</pubDate>
		<guid isPermaLink="false">http://dbsjeyaraj.com/dbsj/?p=1263#comment-18180</guid>
		<description>UNP and Sarath Fonselka are alleging 14 corrupt deals of the government including the CPC hedging deal, Mihinair, the Kerawalapitiya power plant, the VAT scam 

The answer for the allegations by Central Bank Governor are provided below

KERAWALAPITIYA
Q. Was the cost of the KERAWALAPITIYA POWER PLANT inflated to 400 million dollars when the actual cost was $ 200 million?
A. The cost of the Kerawalapitiya Power Plant was originally estimated in 2002 as US$ 390 million.  However, due to careful planning and execution, the cost of the project is now estimated to be only about US$ 295 million for the power plant of 300 megawatts when fully completed.  That works out to roughly about a million US Dollars per megawatt. That is close to the current industry norm of about 1 million dollars per megawatt for petroleum based thermal power plants.
Q. Was the capacity of the plant reduced to 200 megawatts from 300 megawatts?
A. The Kerawalapitiya plant is a combined power cycle plant. The first 200 megawatts is generated with furnace oil. The exhaust from the first phase is to be converted into steam to generate another 100 megawatts. The first phase is already in operation and the second phase will be operational soon. The cost of setting up this plant will thus be distributed over the entire 300 megawatts.
Q. The agreed price for electricity per unit from the Kerawalapitiya plant is said to be Rs 18. But is power now being purchased at Rs 40, incurring a loss of Rs 22 per unit?
A. The pricing of electricity is done on a pre-determined formula which includes the price of furnace oil as well. Therefore, no one can set out a specific amount forever, since the price of furnace oil changes regularly.  At current fuel oil prices, the unit cost, although higher when only the first phase of the plant is operational, will decline to around Rs. 14 to 16 per unit, when the Phase 2 of the Kerawalapitiya power plant is in operation. The Kerawalapitiya power plant is owned by West Coast Power Ltd in which 56% is held by the Government, 10% by LECO, 24% by EPF and 4% by Lakdanavavi Co.

UMA OYA
Q. Then there is an allegation concerning the UMA OYA project. Did the estimated cost of this project increase from 265 million US dollars to 539 million?
A. The structure of a project can change from time to time. The original estimate of the Uma Oya project amounted to 265 million US dollars based on input prices in 1999.  At that time, this project was meant to produce 50 megawatts of hydropower and irrigate around 5,000 acres of paddy land. Later, the project scope was expanded to 120 megawatts and 12,500 acres of paddy land.  As a result of such add-ons, the project cost has been re-estimated at US dollars 545 million in 2009 prices. It is generally estimated that the capital cost to produce one megawatt of hydroelectricity is about 3 million U.S. dollars. For the Upper Kotmale project which aims to produce 150 megawatts, the project cost is 460 million U.S. dollars.
Q. Was the contract for the Uma Oya project awarded to an Iranian company without calling for tenders?
A. The financing for the Uma Oya project  comes from the Export Development Bank of Iran. Usually, the agreement in such cases is that the contract has to be handed over to a company from the country providing the financing. The general practice under bi-lateral loan agreements, has been followed here too. Having identified the contractor, the Government has taken the necessary measures to ensure the project is cost effective.  They have been able to enter into the contract at a lower price than the estimated value.  At the same time, any unexpected costs and adverse movement in prices will also have to be borne by the contractor and no additional payments need to be met by the Government.

CRANES FOR COLOMBO PORT
Q.  There is another allegation concerning the purchase of thirty five SZPMC CRANES for the Colombo port. The original cost of each crane is supposed to be 600,000 U.S. Dollars. Has the price been inflated to 1.2 million Dollars each?
  A. That is quite different to the figures I have. Thirty transfer cranes with a capacity of 50 tonnes each were purchased by the Ports Authority at 1.507,000 dollars each. Twenty five years ago, in 1985, they had got 35 tonne transfer cranes at  1,570,000 dollars each. So a quarter of a century later, they have bought transfer cranes at 63,000 dollars less, and that too with an increased capacity of 15 tonnes.
Q. Was the price at any stage, 600,000 dollars per crane?
A. If the cost of a crane was $ 1.57 million in 1985, it couldn’t have been 600,000 in 2009.

FLYOVERS
Q. Then we come to the question of the four FLYOVERS. The costs that are said to have been incurred is Rupees 2,000 million for the Kelaniya flyover, 1,200 million for the Nugegoda flyover, 900 million for Dehiwala, 1,000 million for the Orugodawatte – all this is said to be in a situation where the international price for such a flyover would be Rs 400 million each.
A. Every flyover will not cost the same amount everywhere. The number of lanes, the terrain, the barricades, the surface, and so many other features can be different. The actual costs are also different to what was stated by you. The Kelaniya flyover cost 1,700 million rupees, Nugegoda 800 million, Dehiwala 960 million, Orugodawatte 650 million. It must also be noted that these are flyovers with steel structures.  Certainly, building a concrete flyover will cost less than a steel structure. However, steel was opted for, because the roads cannot be kept closed for too long and the construction has to be completed in two or three months. A concrete structure takes a longer period of time to construct.

SUPPLY OF COMPUTERS
Q. There is said to have been a 16 million dollar contract to supply COMPUTERS to divisional secretariats. The computers supplied are said to be locally assembled machines with no brand name and most are said to be out of order and unusable now.
A. This question relates to the Lanka Government Network (LGN) project which was funded by the Korean Government.  Under this project, 325 Government organizations were connected to the LGN.  The contract value of the project was US dollars 14.5 million. The value of the computer equipment (computers, monitors, keyboards etc.) out of the above was 2.3 million US dollars.  The balance 12.2 million US dollars was for licensing software, network equipment, servers, LGN hub, setting up of data centre equipment and the cost of broad band connectivity for three years for 325 locations, where 3,235 computers have been installed.
The computers are of a Korean brand and here too, only Korean manufactured computers have been allowed under the aid conditions.  Hence, they are not locally assembled machines as reported. Also, as of now, 3,223 computers are in proper working condition.  I am also told that 12 computers are presently under repair and are being fixed under a three year warranty and maintenance which is also included in the contract.

VAT SCAM
Q. If we go on to the next issue, there is the allegation that during the period that President Rajapaksa functioned as the Minister of Finance, there was a Value Added Tax fraud amounting to 35 billion rupees – THE VAT SCAM
A. The amount involved is not 35 billion Rupees but 3.5 billion Rupees. According to the audit report, this fraud occurred during the period November 2002 to December 2004. That was before Mr Mahinda Rajapakse became the President and Finance Minister.  In fact, this fraud was unearthed after President Rajapaksa became the Minister of Finance and now action has been filed against those involved.   

THE HEDGING DEAL
Q. THE HEDGING DEAL of the Ceylon Petroleum Corporation is said to have caused the biggest loss, amounting to more than half of the grand total of 430 billion Rupees. Does the hedging deal loss amount to 230 billion Rupees?
A. The total amount that the five banks have claimed from the Ceylon Petroleum Corporation amounts to 418 million U.S. Dollars. This works out to about 47 billion Rupees. In hedging transactions, there are certain guidelines and norms to ensure that such transactions are structured in a proper, orderly manner. In many countries including China, India and Korea, it has been found that certain hedging deals have not been structured properly and therefore, the banks had no legal claim. In Sri Lanka too, the Central Bank investigated the transactions entered into by the CPC and the banks, and we have determined that these transactions have not been structured properly, and that they are tainted, and should therefore not be given effect to.
From the point of view of the country, there is no money due to be paid by the CPC.  But, that is not to say that the banks cannot make claims. If an accident occurs, claims can be made from the insurance company, but the insurance company may find that something is not right, in which case, they are not obliged to make the payment. In this instance, the Central Bank has determined that the transactions are tainted, and the CPC is not obliged to pay. So nothing has been paid as alleged. Neither will any such payment be made.  Certainly not 230 billion rupees or even 47 billion. The Attorney General is defending the CPC in arbitration proceedings abroad, and he is confident that the country will not have to pay any money at all.

Q. Lets talk about the cost of arbitration and even the remote possibility that we may have to pay up.
A. If we have been wrongfully claimed against, we have two choices. One is to pay up. The other option is to defend ourselves in legal proceedings. The cost of arbitration is certainly not going to cost billions, and it is likely that it may be a few millions because it involves foreign counsel as well.  But, it is certainly better than just paying whatever the banks claim. I am somewhat concerned that this figure of 230 billion is being floated about, because someone at some stage may be thinking of making payments of that kind which is totally out of line with the amount claimed.  

Q. Are you saying that if some future government decides to pay up, there could be some hanky panky in the payment process, like these allegations of depositors in failed deposit accepting enterprises paying executives a cut if their deposits are returned to them?
A. I wouldn’t like to speculate on that, but in this instance, you will see that some one will resist paying, only if that person is honest and incorrupt, which means, that there is no occasion for anyone to receive any kickbacks for paying up. If someone was in a hurry to make these payments, allegations could be made. In this case, since no money has been paid, there cannot be allegations of kickbacks. But, let me reiterate that I am concerned that an arbitrary amount of 230 billion is being floated around, which could be done possibly with a view of such persons making those payments at some later date.

SRI LANKAN AIRLINES
Q. SRI LANKAN AIRLINES is said to have suffered a loss of Rs. 10 billion in 2008/9. How did this happen?
A. The global airline industry went through one of the toughest periods in its history in 2008/9. If any airline had made money, it would be an exceptional case. All airlines, Japan Airlines, Cathay Pacific, Singapore Airlines, British Airways, all made losses. In fact Japan Airlines is now on the brink of failure, with its share price dropping from 356 Yen a few months ago, to just 8 Yen on Thursday.  There were less travelers, so flights had to be cut back. Flights had lower loads. There were massive increases in fuel charges. The entire expenditure on fuel could not be recovered from customers. There was the high price of oil in the first part of the year, and less passengers in the second part of the year. These factors impacted heavily on all airlines.
In addition to all the global issues, Sri Lankan airlines had to face more challenges.  In the latter part of the year there were less people coming in because the conflict escalated. Also, there was a decline in tourist arrivals due to travel advisories issued by certain countries. All these matters put together, made the airline suffer the loss.  However, when the global situation eases, the profitability of Sri Lankan Airlines should improve.  Already, we are seeing some signs of improvement.

MIHINAIR
Q. The budget airline, MIHINAIR has been the subject of much discussion. Has Mihninair caused a loss of Rs 4 billion to the country?
A. The budget allocation for Mihinair comes to a total of about 3,300 million rupees, since its inception to date, which is a very modest capital for an airline. The airline and shipping industries are long gestation businesses. The moment you get into business, you aren’t going to make money. It was the same with Sri Lankan airlines too. It takes four or five years before you start breaking even. On top of all that, the global down-turn in the international airline industry also affected the new airline. At the same time, Mihinair has had a certain service element too, where it has been the less affluent Sri Lankans who had an opportunity to make use of this budget airline and travel on pilgrimage to Buddhagaya and Mecca, as well as for Sri Lankan migrant workers to travel to the Middle East.
Budget airlines make money on volume, but it takes some time to build up the volume. Over the past few months however, there has been a reasonable turn around of the financial performance of Mihinair due to business picking up and that has led to losses decreasing substantially. If conditions continue in the same vein, Mihinair will turn the corner soon.  

WEERAVILA AIRPORT
Q. Did the feasibility study for the WEERAVILA AIRPORT cost Rs 500 million?
A. The Airport and Aviation Services has spent just 9 million Rupees (not 500 million) for the initial work relating to the Weerawila airport. This includes the environmental impact assessment as well. Once the EIA was completed, and the location was found to be unsuitable, the project was shifted to Mattala. There is nothing unusual in this. A location has to be studied to determine whether it is suitable for such a project.

MIG DEAL
Q. It is alleged that a sum of Rs 400 million was overpaid in the purchase of four MIG combat aircraft – The MIG DEAL.
A. The Secretary Defence has filed action against a newspaper which has alleged that there was corruption in this deal, and the matter is in Court.

SAFARI PARK
Q. There is also the allegation that Rs 1.6 billion is being spent on setting up a SAFARI PARK in Hambantota when the Yala wildlife sanctuary is close by.
A. From what I have learnt, this capital expenditure is not for a wild life reserve but for a theme park which will feature animals like lions and zebras which are not found in the wild here. There are theme parks like this in several other countries too.   Investments of this nature are quite common in many countries trying to develop tourism.

A9 ROAD
Q. Was the reconstruction of the Anuradhapura-Jaffna A9 ROAD handed over to a Chinese firm at the rate of 125 million rupees per kilometer, and has this Chinese company sub-contracted the same work to two Sri Lankan companies at the rate of 60 million rupees per kilometer? The same allegation relates to the reconstruction of the Point Pedro – Kankesanturei Road, the Mannar – Pooneryn Road, and the Nandikulam- Mannar Road.
A. The Road Development Authority had prepared a proposal for the rehabilitation of the A9 road and later the project was handed over to the Ministry for Reconstruction and Rehabilitation. The Exim Bank of China came forward to offer the funding. The contractor for the project has agreed to finalize this 153 km project at a cost of Rs. 15, 300 million. Therefore, the expected cost per km is around Rs. 100 million and not Rs. 125 million. However, 25% has been allocated for contingencies.  The rates at which the contractor sub-contracts to other sub-contractors is not relevant since it is the original contractor who is finally responsible for the quality and the delivery of the work. For example, in the Mahaweli project, Balfour Beatty was the main contractor for the Victoria dam, and they in turn, employed various other parties as subcontractors. 
In the case of the A9 road, it must also be noted that resources such as skilled labour were not easily available in this area after 30 years of hostilities. Further, infrastructure like electricity, water, facilities for engineers etc. have to be supplied by the contractor at a high cost.  Such costs naturally have to be borne by the project. The cost incurred on the Kandy – Mahiyangana Road was Rs. 117.65 million per km and it was Rs. 98.49 million per km for the Nuwara Eliya – Badulla project.  However, costs differ from one area to another based on the availability of construction material, terrain, etc.</description>
		<content:encoded><![CDATA[<p>UNP and Sarath Fonselka are alleging 14 corrupt deals of the government including the CPC hedging deal, Mihinair, the Kerawalapitiya power plant, the VAT scam </p>
<p>The answer for the allegations by Central Bank Governor are provided below</p>
<p>KERAWALAPITIYA<br />
Q. Was the cost of the KERAWALAPITIYA POWER PLANT inflated to 400 million dollars when the actual cost was $ 200 million?<br />
A. The cost of the Kerawalapitiya Power Plant was originally estimated in 2002 as US$ 390 million.  However, due to careful planning and execution, the cost of the project is now estimated to be only about US$ 295 million for the power plant of 300 megawatts when fully completed.  That works out to roughly about a million US Dollars per megawatt. That is close to the current industry norm of about 1 million dollars per megawatt for petroleum based thermal power plants.<br />
Q. Was the capacity of the plant reduced to 200 megawatts from 300 megawatts?<br />
A. The Kerawalapitiya plant is a combined power cycle plant. The first 200 megawatts is generated with furnace oil. The exhaust from the first phase is to be converted into steam to generate another 100 megawatts. The first phase is already in operation and the second phase will be operational soon. The cost of setting up this plant will thus be distributed over the entire 300 megawatts.<br />
Q. The agreed price for electricity per unit from the Kerawalapitiya plant is said to be Rs 18. But is power now being purchased at Rs 40, incurring a loss of Rs 22 per unit?<br />
A. The pricing of electricity is done on a pre-determined formula which includes the price of furnace oil as well. Therefore, no one can set out a specific amount forever, since the price of furnace oil changes regularly.  At current fuel oil prices, the unit cost, although higher when only the first phase of the plant is operational, will decline to around Rs. 14 to 16 per unit, when the Phase 2 of the Kerawalapitiya power plant is in operation. The Kerawalapitiya power plant is owned by West Coast Power Ltd in which 56% is held by the Government, 10% by LECO, 24% by EPF and 4% by Lakdanavavi Co.</p>
<p>UMA OYA<br />
Q. Then there is an allegation concerning the UMA OYA project. Did the estimated cost of this project increase from 265 million US dollars to 539 million?<br />
A. The structure of a project can change from time to time. The original estimate of the Uma Oya project amounted to 265 million US dollars based on input prices in 1999.  At that time, this project was meant to produce 50 megawatts of hydropower and irrigate around 5,000 acres of paddy land. Later, the project scope was expanded to 120 megawatts and 12,500 acres of paddy land.  As a result of such add-ons, the project cost has been re-estimated at US dollars 545 million in 2009 prices. It is generally estimated that the capital cost to produce one megawatt of hydroelectricity is about 3 million U.S. dollars. For the Upper Kotmale project which aims to produce 150 megawatts, the project cost is 460 million U.S. dollars.<br />
Q. Was the contract for the Uma Oya project awarded to an Iranian company without calling for tenders?<br />
A. The financing for the Uma Oya project  comes from the Export Development Bank of Iran. Usually, the agreement in such cases is that the contract has to be handed over to a company from the country providing the financing. The general practice under bi-lateral loan agreements, has been followed here too. Having identified the contractor, the Government has taken the necessary measures to ensure the project is cost effective.  They have been able to enter into the contract at a lower price than the estimated value.  At the same time, any unexpected costs and adverse movement in prices will also have to be borne by the contractor and no additional payments need to be met by the Government.</p>
<p>CRANES FOR COLOMBO PORT<br />
Q.  There is another allegation concerning the purchase of thirty five SZPMC CRANES for the Colombo port. The original cost of each crane is supposed to be 600,000 U.S. Dollars. Has the price been inflated to 1.2 million Dollars each?<br />
  A. That is quite different to the figures I have. Thirty transfer cranes with a capacity of 50 tonnes each were purchased by the Ports Authority at 1.507,000 dollars each. Twenty five years ago, in 1985, they had got 35 tonne transfer cranes at  1,570,000 dollars each. So a quarter of a century later, they have bought transfer cranes at 63,000 dollars less, and that too with an increased capacity of 15 tonnes.<br />
Q. Was the price at any stage, 600,000 dollars per crane?<br />
A. If the cost of a crane was $ 1.57 million in 1985, it couldn’t have been 600,000 in 2009.</p>
<p>FLYOVERS<br />
Q. Then we come to the question of the four FLYOVERS. The costs that are said to have been incurred is Rupees 2,000 million for the Kelaniya flyover, 1,200 million for the Nugegoda flyover, 900 million for Dehiwala, 1,000 million for the Orugodawatte – all this is said to be in a situation where the international price for such a flyover would be Rs 400 million each.<br />
A. Every flyover will not cost the same amount everywhere. The number of lanes, the terrain, the barricades, the surface, and so many other features can be different. The actual costs are also different to what was stated by you. The Kelaniya flyover cost 1,700 million rupees, Nugegoda 800 million, Dehiwala 960 million, Orugodawatte 650 million. It must also be noted that these are flyovers with steel structures.  Certainly, building a concrete flyover will cost less than a steel structure. However, steel was opted for, because the roads cannot be kept closed for too long and the construction has to be completed in two or three months. A concrete structure takes a longer period of time to construct.</p>
<p>SUPPLY OF COMPUTERS<br />
Q. There is said to have been a 16 million dollar contract to supply COMPUTERS to divisional secretariats. The computers supplied are said to be locally assembled machines with no brand name and most are said to be out of order and unusable now.<br />
A. This question relates to the Lanka Government Network (LGN) project which was funded by the Korean Government.  Under this project, 325 Government organizations were connected to the LGN.  The contract value of the project was US dollars 14.5 million. The value of the computer equipment (computers, monitors, keyboards etc.) out of the above was 2.3 million US dollars.  The balance 12.2 million US dollars was for licensing software, network equipment, servers, LGN hub, setting up of data centre equipment and the cost of broad band connectivity for three years for 325 locations, where 3,235 computers have been installed.<br />
The computers are of a Korean brand and here too, only Korean manufactured computers have been allowed under the aid conditions.  Hence, they are not locally assembled machines as reported. Also, as of now, 3,223 computers are in proper working condition.  I am also told that 12 computers are presently under repair and are being fixed under a three year warranty and maintenance which is also included in the contract.</p>
<p>VAT SCAM<br />
Q. If we go on to the next issue, there is the allegation that during the period that President Rajapaksa functioned as the Minister of Finance, there was a Value Added Tax fraud amounting to 35 billion rupees – THE VAT SCAM<br />
A. The amount involved is not 35 billion Rupees but 3.5 billion Rupees. According to the audit report, this fraud occurred during the period November 2002 to December 2004. That was before Mr Mahinda Rajapakse became the President and Finance Minister.  In fact, this fraud was unearthed after President Rajapaksa became the Minister of Finance and now action has been filed against those involved.   </p>
<p>THE HEDGING DEAL<br />
Q. THE HEDGING DEAL of the Ceylon Petroleum Corporation is said to have caused the biggest loss, amounting to more than half of the grand total of 430 billion Rupees. Does the hedging deal loss amount to 230 billion Rupees?<br />
A. The total amount that the five banks have claimed from the Ceylon Petroleum Corporation amounts to 418 million U.S. Dollars. This works out to about 47 billion Rupees. In hedging transactions, there are certain guidelines and norms to ensure that such transactions are structured in a proper, orderly manner. In many countries including China, India and Korea, it has been found that certain hedging deals have not been structured properly and therefore, the banks had no legal claim. In Sri Lanka too, the Central Bank investigated the transactions entered into by the CPC and the banks, and we have determined that these transactions have not been structured properly, and that they are tainted, and should therefore not be given effect to.<br />
From the point of view of the country, there is no money due to be paid by the CPC.  But, that is not to say that the banks cannot make claims. If an accident occurs, claims can be made from the insurance company, but the insurance company may find that something is not right, in which case, they are not obliged to make the payment. In this instance, the Central Bank has determined that the transactions are tainted, and the CPC is not obliged to pay. So nothing has been paid as alleged. Neither will any such payment be made.  Certainly not 230 billion rupees or even 47 billion. The Attorney General is defending the CPC in arbitration proceedings abroad, and he is confident that the country will not have to pay any money at all.</p>
<p>Q. Lets talk about the cost of arbitration and even the remote possibility that we may have to pay up.<br />
A. If we have been wrongfully claimed against, we have two choices. One is to pay up. The other option is to defend ourselves in legal proceedings. The cost of arbitration is certainly not going to cost billions, and it is likely that it may be a few millions because it involves foreign counsel as well.  But, it is certainly better than just paying whatever the banks claim. I am somewhat concerned that this figure of 230 billion is being floated about, because someone at some stage may be thinking of making payments of that kind which is totally out of line with the amount claimed.  </p>
<p>Q. Are you saying that if some future government decides to pay up, there could be some hanky panky in the payment process, like these allegations of depositors in failed deposit accepting enterprises paying executives a cut if their deposits are returned to them?<br />
A. I wouldn’t like to speculate on that, but in this instance, you will see that some one will resist paying, only if that person is honest and incorrupt, which means, that there is no occasion for anyone to receive any kickbacks for paying up. If someone was in a hurry to make these payments, allegations could be made. In this case, since no money has been paid, there cannot be allegations of kickbacks. But, let me reiterate that I am concerned that an arbitrary amount of 230 billion is being floated around, which could be done possibly with a view of such persons making those payments at some later date.</p>
<p>SRI LANKAN AIRLINES<br />
Q. SRI LANKAN AIRLINES is said to have suffered a loss of Rs. 10 billion in 2008/9. How did this happen?<br />
A. The global airline industry went through one of the toughest periods in its history in 2008/9. If any airline had made money, it would be an exceptional case. All airlines, Japan Airlines, Cathay Pacific, Singapore Airlines, British Airways, all made losses. In fact Japan Airlines is now on the brink of failure, with its share price dropping from 356 Yen a few months ago, to just 8 Yen on Thursday.  There were less travelers, so flights had to be cut back. Flights had lower loads. There were massive increases in fuel charges. The entire expenditure on fuel could not be recovered from customers. There was the high price of oil in the first part of the year, and less passengers in the second part of the year. These factors impacted heavily on all airlines.<br />
In addition to all the global issues, Sri Lankan airlines had to face more challenges.  In the latter part of the year there were less people coming in because the conflict escalated. Also, there was a decline in tourist arrivals due to travel advisories issued by certain countries. All these matters put together, made the airline suffer the loss.  However, when the global situation eases, the profitability of Sri Lankan Airlines should improve.  Already, we are seeing some signs of improvement.</p>
<p>MIHINAIR<br />
Q. The budget airline, MIHINAIR has been the subject of much discussion. Has Mihninair caused a loss of Rs 4 billion to the country?<br />
A. The budget allocation for Mihinair comes to a total of about 3,300 million rupees, since its inception to date, which is a very modest capital for an airline. The airline and shipping industries are long gestation businesses. The moment you get into business, you aren’t going to make money. It was the same with Sri Lankan airlines too. It takes four or five years before you start breaking even. On top of all that, the global down-turn in the international airline industry also affected the new airline. At the same time, Mihinair has had a certain service element too, where it has been the less affluent Sri Lankans who had an opportunity to make use of this budget airline and travel on pilgrimage to Buddhagaya and Mecca, as well as for Sri Lankan migrant workers to travel to the Middle East.<br />
Budget airlines make money on volume, but it takes some time to build up the volume. Over the past few months however, there has been a reasonable turn around of the financial performance of Mihinair due to business picking up and that has led to losses decreasing substantially. If conditions continue in the same vein, Mihinair will turn the corner soon.  </p>
<p>WEERAVILA AIRPORT<br />
Q. Did the feasibility study for the WEERAVILA AIRPORT cost Rs 500 million?<br />
A. The Airport and Aviation Services has spent just 9 million Rupees (not 500 million) for the initial work relating to the Weerawila airport. This includes the environmental impact assessment as well. Once the EIA was completed, and the location was found to be unsuitable, the project was shifted to Mattala. There is nothing unusual in this. A location has to be studied to determine whether it is suitable for such a project.</p>
<p>MIG DEAL<br />
Q. It is alleged that a sum of Rs 400 million was overpaid in the purchase of four MIG combat aircraft – The MIG DEAL.<br />
A. The Secretary Defence has filed action against a newspaper which has alleged that there was corruption in this deal, and the matter is in Court.</p>
<p>SAFARI PARK<br />
Q. There is also the allegation that Rs 1.6 billion is being spent on setting up a SAFARI PARK in Hambantota when the Yala wildlife sanctuary is close by.<br />
A. From what I have learnt, this capital expenditure is not for a wild life reserve but for a theme park which will feature animals like lions and zebras which are not found in the wild here. There are theme parks like this in several other countries too.   Investments of this nature are quite common in many countries trying to develop tourism.</p>
<p>A9 ROAD<br />
Q. Was the reconstruction of the Anuradhapura-Jaffna A9 ROAD handed over to a Chinese firm at the rate of 125 million rupees per kilometer, and has this Chinese company sub-contracted the same work to two Sri Lankan companies at the rate of 60 million rupees per kilometer? The same allegation relates to the reconstruction of the Point Pedro – Kankesanturei Road, the Mannar – Pooneryn Road, and the Nandikulam- Mannar Road.<br />
A. The Road Development Authority had prepared a proposal for the rehabilitation of the A9 road and later the project was handed over to the Ministry for Reconstruction and Rehabilitation. The Exim Bank of China came forward to offer the funding. The contractor for the project has agreed to finalize this 153 km project at a cost of Rs. 15, 300 million. Therefore, the expected cost per km is around Rs. 100 million and not Rs. 125 million. However, 25% has been allocated for contingencies.  The rates at which the contractor sub-contracts to other sub-contractors is not relevant since it is the original contractor who is finally responsible for the quality and the delivery of the work. For example, in the Mahaweli project, Balfour Beatty was the main contractor for the Victoria dam, and they in turn, employed various other parties as subcontractors.<br />
In the case of the A9 road, it must also be noted that resources such as skilled labour were not easily available in this area after 30 years of hostilities. Further, infrastructure like electricity, water, facilities for engineers etc. have to be supplied by the contractor at a high cost.  Such costs naturally have to be borne by the project. The cost incurred on the Kandy – Mahiyangana Road was Rs. 117.65 million per km and it was Rs. 98.49 million per km for the Nuwara Eliya – Badulla project.  However, costs differ from one area to another based on the availability of construction material, terrain, etc.</p>
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		<title>By: Asanka Perera</title>
		<link>http://dbsjeyaraj.com/dbsj/archives/1263#comment-18166</link>
		<dc:creator>Asanka Perera</dc:creator>
		<pubDate>Sun, 17 Jan 2010 23:24:57 +0000</pubDate>
		<guid isPermaLink="false">http://dbsjeyaraj.com/dbsj/?p=1263#comment-18166</guid>
		<description>Fonseka planned to continue the war for a long time thereby earning every year from weapons sales made with his son-in-law Danuna and from deals made alone. In a well published interview with BBC in June 2008 he aired these views unashamedly. He said, &quot;Even if we finish the war, capture the whole of the north, still the LTTE might have some members joining them,&quot; he said. “There are people who believe in Tamil nationalism. The LTTE might survive another even two decades with about 1,000 cadres. But we will not be fighting in the same manner. It might continue as an insurgency forever.”

http://news.bbc.co.uk/2/hi/south_asia/7481812.stm

This was not his prediction but expectation. However the government had other plans and the government’s plan succeeded in ridding the country of terrorists.

Fonseka knew that he was just a tool in the hands of the Defence Secretary in winning the war. And Fonseka knew the war is ending by May 11, 2009. Even laymen knew it! That was when he made one last ditch attempt to earn big money in an unprecedented way.

Entertaining purchasing officers to luxury is an old trick played by some traders. It is particularly common in the defence trade when third world countries are involved. Since Fonseka assumed the role of the purchasing officer, he and his family was entitled to spend a week in luxury at the Fujitsu Royal Hotel in China. Their trip started on May 11th and lasted till May 17th.

Room numbers 1620, 1630, 1620A, 1618, 1519, 1521, 1626, and 1628 were reserved for them. These rooms were for Sarath Fonseka, his wife Anoma Fonseka, his two daughters Apsara Tillakaratne and Aparna Fonseka, his son in law Danuna Tillakaratne, a major general and his wife, one Brigadier, two Lt Colonels, one Captain and one Lieutenant. This was the time the decisive battle for peace was fought in Mulaitivu. An army commander has no bigger joy than participate in the final battle. But not in the case of Fonseka. What was so important for Fonseka that he even neglected the final victorious battle and ran away from Sri Lanka?

During this long trip Fonseka and Danuna who owns a weapons buying and selling company, visited two main corporations specialised in selling weapons to third world countries. They are NORINCO and Poly Technologies. Sri Lanka army, navy, air force and the Ministry of Defence have been purchasing weapons from both these companies for a long time. For instance in April 2007 a classified purchased of US$37 million was made from these companies. However, in May 2009 things were going to get bigger!

This time the value of the purchase order was a staggering US$ 200 million which is higher than the total annual defence capital budget! This act also contravenes the gazette notification on 30 July 2007 prohibiting the purchase of many defence items by entities other than Ministry of Defence owned Lanka Logistics and Technologies (Pvt) Ltd. By the time the deal was done, the war has ended in Sri Lanka without Fonseka. Purchases made by Fonseka assumed the war to continue and now they were not required.

Defence Secretary had no choice than to ask Fonseka to cancel the order. It doesn’t feel right when you have benefited from the hospitality of a supplier with the promise of giving business and subsequently cancelling the order. What’s more embarrassing was that the Defence Secretary asked Fonseka to declare the cancellation himself. Reluctantly Fonseka cancelled the order in July 2009. It is the first time in the world an Army Commander cancelling military purchases. In other countries and in Sri Lanka before Fonseka assuming high office, the Army Commander and the Chief of Defence don’t get involved in purchasing. Purchasing includes cancelling purchase orders.
http://www.alertnet.org/thenews/newsdesk/COL487424.htm

Now Fonseka is trying to release hardcore LTTE terrorists are restart the war so that more and more weapons will be needed. When it comes to purchasing weapons he and his family will benefit immensely.</description>
		<content:encoded><![CDATA[<p>Fonseka planned to continue the war for a long time thereby earning every year from weapons sales made with his son-in-law Danuna and from deals made alone. In a well published interview with BBC in June 2008 he aired these views unashamedly. He said, &#8220;Even if we finish the war, capture the whole of the north, still the LTTE might have some members joining them,&#8221; he said. “There are people who believe in Tamil nationalism. The LTTE might survive another even two decades with about 1,000 cadres. But we will not be fighting in the same manner. It might continue as an insurgency forever.”</p>
<p><a href="http://news.bbc.co.uk/2/hi/south_asia/7481812.stm" rel="nofollow">http://news.bbc.co.uk/2/hi/south_asia/7481812.stm</a></p>
<p>This was not his prediction but expectation. However the government had other plans and the government’s plan succeeded in ridding the country of terrorists.</p>
<p>Fonseka knew that he was just a tool in the hands of the Defence Secretary in winning the war. And Fonseka knew the war is ending by May 11, 2009. Even laymen knew it! That was when he made one last ditch attempt to earn big money in an unprecedented way.</p>
<p>Entertaining purchasing officers to luxury is an old trick played by some traders. It is particularly common in the defence trade when third world countries are involved. Since Fonseka assumed the role of the purchasing officer, he and his family was entitled to spend a week in luxury at the Fujitsu Royal Hotel in China. Their trip started on May 11th and lasted till May 17th.</p>
<p>Room numbers 1620, 1630, 1620A, 1618, 1519, 1521, 1626, and 1628 were reserved for them. These rooms were for Sarath Fonseka, his wife Anoma Fonseka, his two daughters Apsara Tillakaratne and Aparna Fonseka, his son in law Danuna Tillakaratne, a major general and his wife, one Brigadier, two Lt Colonels, one Captain and one Lieutenant. This was the time the decisive battle for peace was fought in Mulaitivu. An army commander has no bigger joy than participate in the final battle. But not in the case of Fonseka. What was so important for Fonseka that he even neglected the final victorious battle and ran away from Sri Lanka?</p>
<p>During this long trip Fonseka and Danuna who owns a weapons buying and selling company, visited two main corporations specialised in selling weapons to third world countries. They are NORINCO and Poly Technologies. Sri Lanka army, navy, air force and the Ministry of Defence have been purchasing weapons from both these companies for a long time. For instance in April 2007 a classified purchased of US$37 million was made from these companies. However, in May 2009 things were going to get bigger!</p>
<p>This time the value of the purchase order was a staggering US$ 200 million which is higher than the total annual defence capital budget! This act also contravenes the gazette notification on 30 July 2007 prohibiting the purchase of many defence items by entities other than Ministry of Defence owned Lanka Logistics and Technologies (Pvt) Ltd. By the time the deal was done, the war has ended in Sri Lanka without Fonseka. Purchases made by Fonseka assumed the war to continue and now they were not required.</p>
<p>Defence Secretary had no choice than to ask Fonseka to cancel the order. It doesn’t feel right when you have benefited from the hospitality of a supplier with the promise of giving business and subsequently cancelling the order. What’s more embarrassing was that the Defence Secretary asked Fonseka to declare the cancellation himself. Reluctantly Fonseka cancelled the order in July 2009. It is the first time in the world an Army Commander cancelling military purchases. In other countries and in Sri Lanka before Fonseka assuming high office, the Army Commander and the Chief of Defence don’t get involved in purchasing. Purchasing includes cancelling purchase orders.<br />
<a href="http://www.alertnet.org/thenews/newsdesk/COL487424.htm" rel="nofollow">http://www.alertnet.org/thenews/newsdesk/COL487424.htm</a></p>
<p>Now Fonseka is trying to release hardcore LTTE terrorists are restart the war so that more and more weapons will be needed. When it comes to purchasing weapons he and his family will benefit immensely.</p>
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		<title>By: shankar</title>
		<link>http://dbsjeyaraj.com/dbsj/archives/1263#comment-18160</link>
		<dc:creator>shankar</dc:creator>
		<pubDate>Sat, 16 Jan 2010 23:55:02 +0000</pubDate>
		<guid isPermaLink="false">http://dbsjeyaraj.com/dbsj/?p=1263#comment-18160</guid>
		<description>#512-Asanka Perera

I got the following from a comment made by a reader in the sunday leader. How do you explain this?

– COPE report Rs 33,000 million fraud but no culprits ( because all politicians and henchman are the guilty ones!)
- Mihin air …. lost 6 billion and then given another 3 billion. When the world economy was suffering and the established airlines were collapsing the ‘brilliant’ SL politicians ego is what matters! ( whole of heath sector for 20 million Sri Lankans received only Rs 5 billion and no wonder we hear stories such as ‘no surgery at national hospital due to shortage of medicine and equipment !!!!)
- Losses identified Air Lanka 9.98 billion, Electricity board 39 billion, Ports Authority 3.5 billion, Petroleum Coop- 7.1 billion, SLTB 4.5 billion, Road development authority 9.9 billion
- Rs 100 million lost to the SLTB for using busses in the one of the election campaigns.
- 40 ministers with Colombo residencies claim Rs 100, 000 housing allowance and Rs 35,000 electricity/ water allowance
- Foreign minister spends Rs 100 million on foreign trips
- Kelaniya right bank water treatment project costing 8 billion – used sub standard steel Rs 200 million lost and ministry trying to cover up!
– Costs of bridges- Dehiwala $ 978, Kelaniya- $ 2301 and Burg Dubhai The worlds most expensive hotel $373 ( sq. foot costs)
- Rs 100 million lost due to fraud at foreign employment ministry
- Rs 150 million spent on 22 presidential advisors
- 20 ministers having overspent asks for Rs 2.52 billion ( part of over spent is to buy luxury vehicles)
- Govt. unable to account for Rs 1000 million from Maga-neguma project
– Colossal fraud at Ceylon Petroleum Coop. of Rs 3390 million
– SLT telecom loses Rs 324 million in a tender racket
- Airlanka catering loses Rs 9000 million last yr from a profit of Rs 4000 million the previous year
- More than 100 ministers ( India with 1 billion has only 22 ) and add the cost of many vehicles, offices, houses, security, assistants ( family members) wasting billions
- Palaces for presidents family. Who cares for the 20 million citizens?
- Tsunami Rs 47 billion unaccounted for. Today we see tragedy in Haiti and Lankans were similar. To steal from such human tragedy is simply in humane!
- Despite killing of 14 journalists, many assaults on media, other lawless activities known to all Sri Lankans, no one has been arrested. (</description>
		<content:encoded><![CDATA[<p>#512-Asanka Perera</p>
<p>I got the following from a comment made by a reader in the sunday leader. How do you explain this?</p>
<p>– COPE report Rs 33,000 million fraud but no culprits ( because all politicians and henchman are the guilty ones!)<br />
- Mihin air …. lost 6 billion and then given another 3 billion. When the world economy was suffering and the established airlines were collapsing the ‘brilliant’ SL politicians ego is what matters! ( whole of heath sector for 20 million Sri Lankans received only Rs 5 billion and no wonder we hear stories such as ‘no surgery at national hospital due to shortage of medicine and equipment !!!!)<br />
- Losses identified Air Lanka 9.98 billion, Electricity board 39 billion, Ports Authority 3.5 billion, Petroleum Coop- 7.1 billion, SLTB 4.5 billion, Road development authority 9.9 billion<br />
- Rs 100 million lost to the SLTB for using busses in the one of the election campaigns.<br />
- 40 ministers with Colombo residencies claim Rs 100, 000 housing allowance and Rs 35,000 electricity/ water allowance<br />
- Foreign minister spends Rs 100 million on foreign trips<br />
- Kelaniya right bank water treatment project costing 8 billion – used sub standard steel Rs 200 million lost and ministry trying to cover up!<br />
– Costs of bridges- Dehiwala $ 978, Kelaniya- $ 2301 and Burg Dubhai The worlds most expensive hotel $373 ( sq. foot costs)<br />
- Rs 100 million lost due to fraud at foreign employment ministry<br />
- Rs 150 million spent on 22 presidential advisors<br />
- 20 ministers having overspent asks for Rs 2.52 billion ( part of over spent is to buy luxury vehicles)<br />
- Govt. unable to account for Rs 1000 million from Maga-neguma project<br />
– Colossal fraud at Ceylon Petroleum Coop. of Rs 3390 million<br />
– SLT telecom loses Rs 324 million in a tender racket<br />
- Airlanka catering loses Rs 9000 million last yr from a profit of Rs 4000 million the previous year<br />
- More than 100 ministers ( India with 1 billion has only 22 ) and add the cost of many vehicles, offices, houses, security, assistants ( family members) wasting billions<br />
- Palaces for presidents family. Who cares for the 20 million citizens?<br />
- Tsunami Rs 47 billion unaccounted for. Today we see tragedy in Haiti and Lankans were similar. To steal from such human tragedy is simply in humane!<br />
- Despite killing of 14 journalists, many assaults on media, other lawless activities known to all Sri Lankans, no one has been arrested. (</p>
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		<title>By: shankar</title>
		<link>http://dbsjeyaraj.com/dbsj/archives/1263#comment-18159</link>
		<dc:creator>shankar</dc:creator>
		<pubDate>Sat, 16 Jan 2010 23:21:25 +0000</pubDate>
		<guid isPermaLink="false">http://dbsjeyaraj.com/dbsj/?p=1263#comment-18159</guid>
		<description>#512

Excellent analysis. I also agree development should be a priority, but i wish some special truly independent body that politicians cannot influence is created in order to investigate allegations of crime and corruption against politicians and police.</description>
		<content:encoded><![CDATA[<p>#512</p>
<p>Excellent analysis. I also agree development should be a priority, but i wish some special truly independent body that politicians cannot influence is created in order to investigate allegations of crime and corruption against politicians and police.</p>
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		<title>By: Asanka Perera</title>
		<link>http://dbsjeyaraj.com/dbsj/archives/1263#comment-18154</link>
		<dc:creator>Asanka Perera</dc:creator>
		<pubDate>Sat, 16 Jan 2010 15:40:43 +0000</pubDate>
		<guid isPermaLink="false">http://dbsjeyaraj.com/dbsj/?p=1263#comment-18154</guid>
		<description>Corruption has become a hot topic once again. Unfortunately corruption is discussed only during election time. Winners of elections burry it for good until their opponents resurrect it at the next election. So the cycle continues. Lack of credible direct evidence of corruption is the main difficulty in taking action against it. However empirical evidence is available for all to see about the degree of relative corruption. Relative corruption is the level of corruption of one government compared to another government.
In 1994 Chandrika alleged massive corruption of the UNP government. It worked well for her but did the country do any better? Actually she was blaming the Wijetunga administration of faults of his predecessors! While at no place she mentioned Wijetunga’s corruption or his government’s corruption, she was complaining about Jayawardena and Premadasa administrations’ corruption. However people voted out the not so corrupt Wijetunga government and elected to office a government which is considered far worse. Turning back at the events of the last two decades, it is crystal clear that the 1993-94 Wijetunga government was less corrupt that its replacement of 1994-2001.
When there is large scale corruption it becomes evident through practical indicators. High corruption means less welfare schemes, inability to meet state financial commitments, reckless borrowing, depleting foreign reserves, selling government owned entities, economic hopelessness, reducing investor confidence, closure of universities for long periods, cuts in public spending and staff and no salary increases for the public sector.
If one compares these practical and real indicators of previous governments and the Rajapaksha government, a strange conclusion emerges. It is strange because it is not what you hear on political stages and politicised media.
Although it is not considered sound economic practice, the Rajapaksha government increased the welfare spending. The fertilizer subsidy was extended to Vanni, displacement subsidies from Mavil Aru to Menik farm, drought and flood subsidies, Samurdhi subsidy and a number of other subsidies were granted.. Not a single subsidy was cut. The increase in welfare schemes took place despite allocating double than before for defence.
The Rajapaksha government never went for reckless borrowing. Government’s lack of desperation in borrowing was displayed to the IMF and other donors. This was despite the war. From 2001 to 2003, within just two and a half years, Sri Lanka’s external debt rose from US$ 8.3 billion to US$10.6 billion even without a war! However, from 2005 to 2009 for four years Sri Lanka’s external debt only rose from US$10.85 to US$13.50 billion. Whether the annual increase is considered or the percentage increase is considered, the Rajapaksha administration has done very well.
The composition of the loan portfolio is also important. By 2005 about 60% of the state debt portfolio was external (foreign) debt. This reduced to close to 45% by 2009. Lesser foreign debt means less national indebtedness as it lowers the impact on the exchange rate and external reserves. This is a remarkable achievement despite the war.
External reserves reached an all time high in 2009.
Can both these happen at the same time if there was more corruption than before? Very unlikely.
Exchange regulations were eased as never before since the country has a stable level of foreign reserves and managed external debt with the hope of a gigantic economic expansion.
In the last couple of years the world went into recession. Contrary to dire predictions, Sri Lank overcame this challenge with flying colours.
Selling government owned entities has always been a popular escape. When in a situation of unmanageable budget deficit, selling off ‘family silver’ has been a quick fix. However, people suffer as a result. How many government owned entities were sold by the Rajapaksha government? Almost none. All previous governments after 1977 sold off public owned enterprises to cover the budget deficit. Ceylon Oxygen, Ceylon Cold Stores, Textile Corporation, Kelani Valley Plantations, Kotagala Plantations, Maskeliya Plantations, Namunukula Plantations, Sri Lanka Telecom, Sri Lanka Insurance Corporation, National Insurance Corporation, Distilleries Corporation, Sri Lankan Airlines (formerly Air Lanka), Ceylon Transport Board, Lanka Gas (sold to Shell gas), CINTEC, the lucrative distribution arm of the Ceylon Petroleum Corporation (sold to Indian Oil Company), etc.
Many desperate attempts were made to sell Bank of Ceylon, Peoples’ Bank, National Savings Bank, State Investment and Mortgage Bank, Ceylon Electricity Board, Sri Lanka Railways, Sri Lanka Post, etc.
The Rajapaksha administration didn’t do this. Where did the government find the money to manage a US$1.5 billion war, welfare schemes while not earning a quick buck by selling off state owned entities? If the Rajapaksha administration was more corrupt or as corrupt as other administrations, this should not be the trend.
Further, previously sold out entities including Sri Lankan Airlines were brought back under peoples’ ownership.
On top of all that, the Rajapaksha administration increased the number of persons employed in the state sector. While modern economists would not like it, the government managed the increase very well. Economists note with concern that Sri Lanka has the highest state sector employment as a percentage of the GDP. Despite that salary increases were awarded as never before.
Employing unemployed graduates in very large numbers was also seen during this time. Over the years most of them have been equipped with skills to meaningfully contribute to the economy.
Where is the money? Of course the government increased taxes but total taxes as a percentage of the GDP steadily fell. It is obviously not possible to sustain such a massive state sector if corruption was higher than previous governments.
There were times when economic hopelessness reached astronomical proportions. In 1971, 1980, 1987, 1988, 1989, 1994, 2001 and 2004 were examples of utter hopelessness in the economic front. Is there economic hopelessness today as it was then? No. Although the cost of living has skyrocketed, people’s income has also increased. But above all there is much anticipation of future economic prospects.
All this is because there is wide anticipation that the economy will do well despite the loss of GSP+, 26 years of war, international pressure and other adversities.
A simple question would clarify the matter. Do you have better prospects today than there were following the tsunami (2005)? The answer is obvious.
University disruptions have reduced compared to the past and the government is spending a huge amount of money on primary, secondary and tertiary education. University admissions have steadily increased. Percentage of schooling children has increased over the years. Teaching in the English medium meaningfully started and is expanding. Once this was thought impossible. The healthcare system was also protected and in fact improved. Improvement in the healthcare system helped it cope up with the very large number of war casualties from 2006-09.
If corruption had not reduced compared to the past, none of this would have been possible. When governments were in dire financial state, their attention is first directed towards these vulnerable sectors.
Investor confidence has increased as never before. The Colombo Stock Exchange became the world’s best stock exchange. It shows the tremendous increase in investor confidence. If the present administration was as corrupt as the previous ones, this cannot happen. Many third world countries despite more liberal economic policies were defeated by the Colombo Stock Exchange in the past few years.
Very large scale investment activities take place from the South to the North.. Potential of these investments is even higher.
Infrastructure development is unprecedented. A very large number of key bridges have come up linking communities and industries. New bridges have opened up new markets, production sources and reduced transportation cost and time. Economic development in the Eastern Province alone was unthinkable a few years before..
Traffic congestion around the City has been a major wastage factor causing wastage in time, fuel, money, property and even lives. Flyovers that came up during the past few years have eased congestion. Real benefits will be seen in time to come. Compared to the previous work of similar nature especially the Baseline Road Project, the present government has been very efficient..

Work on key roads has been stalled for over 25 years until the Rajapaksha government got down to it. Now these artery roads are being built at a vigorous speed. Economic contribution that comes with it would be significant.
Power plants are coming up around the country. Although some of these were on the drawing board for decades, actual work started only recently. There was a time not so long ago when governments think of power plants when CEB is forced to cut electricity.

A staggering US$1.5 billion was made available for defence. Compared to previous allocations, it has almost doubled. Other ancillary defence related expenditure also increased. Government refused to cut corners when it comes to requirements. Although the budget was passed with extreme difficulty, spending was better managed.
A massive defence allocation along with all the other large spending endeavours was possible thanks to a reduction in relative corruption.

Otherwise not only the war effort would have stalled but also the state sector would have collapsed, state enterprises would have been sold out and welfare spend would have been cut.
During election time these facts are not given enough prominence as the craze for power blinds a section of the population. However, the society must recognize these before it is too late to correct. Politicians are willing to wait another six years for power but people cannot wait for development any longer. They have already waited for 26 long years.</description>
		<content:encoded><![CDATA[<p>Corruption has become a hot topic once again. Unfortunately corruption is discussed only during election time. Winners of elections burry it for good until their opponents resurrect it at the next election. So the cycle continues. Lack of credible direct evidence of corruption is the main difficulty in taking action against it. However empirical evidence is available for all to see about the degree of relative corruption. Relative corruption is the level of corruption of one government compared to another government.<br />
In 1994 Chandrika alleged massive corruption of the UNP government. It worked well for her but did the country do any better? Actually she was blaming the Wijetunga administration of faults of his predecessors! While at no place she mentioned Wijetunga’s corruption or his government’s corruption, she was complaining about Jayawardena and Premadasa administrations’ corruption. However people voted out the not so corrupt Wijetunga government and elected to office a government which is considered far worse. Turning back at the events of the last two decades, it is crystal clear that the 1993-94 Wijetunga government was less corrupt that its replacement of 1994-2001.<br />
When there is large scale corruption it becomes evident through practical indicators. High corruption means less welfare schemes, inability to meet state financial commitments, reckless borrowing, depleting foreign reserves, selling government owned entities, economic hopelessness, reducing investor confidence, closure of universities for long periods, cuts in public spending and staff and no salary increases for the public sector.<br />
If one compares these practical and real indicators of previous governments and the Rajapaksha government, a strange conclusion emerges. It is strange because it is not what you hear on political stages and politicised media.<br />
Although it is not considered sound economic practice, the Rajapaksha government increased the welfare spending. The fertilizer subsidy was extended to Vanni, displacement subsidies from Mavil Aru to Menik farm, drought and flood subsidies, Samurdhi subsidy and a number of other subsidies were granted.. Not a single subsidy was cut. The increase in welfare schemes took place despite allocating double than before for defence.<br />
The Rajapaksha government never went for reckless borrowing. Government’s lack of desperation in borrowing was displayed to the IMF and other donors. This was despite the war. From 2001 to 2003, within just two and a half years, Sri Lanka’s external debt rose from US$ 8.3 billion to US$10.6 billion even without a war! However, from 2005 to 2009 for four years Sri Lanka’s external debt only rose from US$10.85 to US$13.50 billion. Whether the annual increase is considered or the percentage increase is considered, the Rajapaksha administration has done very well.<br />
The composition of the loan portfolio is also important. By 2005 about 60% of the state debt portfolio was external (foreign) debt. This reduced to close to 45% by 2009. Lesser foreign debt means less national indebtedness as it lowers the impact on the exchange rate and external reserves. This is a remarkable achievement despite the war.<br />
External reserves reached an all time high in 2009.<br />
Can both these happen at the same time if there was more corruption than before? Very unlikely.<br />
Exchange regulations were eased as never before since the country has a stable level of foreign reserves and managed external debt with the hope of a gigantic economic expansion.<br />
In the last couple of years the world went into recession. Contrary to dire predictions, Sri Lank overcame this challenge with flying colours.<br />
Selling government owned entities has always been a popular escape. When in a situation of unmanageable budget deficit, selling off ‘family silver’ has been a quick fix. However, people suffer as a result. How many government owned entities were sold by the Rajapaksha government? Almost none. All previous governments after 1977 sold off public owned enterprises to cover the budget deficit. Ceylon Oxygen, Ceylon Cold Stores, Textile Corporation, Kelani Valley Plantations, Kotagala Plantations, Maskeliya Plantations, Namunukula Plantations, Sri Lanka Telecom, Sri Lanka Insurance Corporation, National Insurance Corporation, Distilleries Corporation, Sri Lankan Airlines (formerly Air Lanka), Ceylon Transport Board, Lanka Gas (sold to Shell gas), CINTEC, the lucrative distribution arm of the Ceylon Petroleum Corporation (sold to Indian Oil Company), etc.<br />
Many desperate attempts were made to sell Bank of Ceylon, Peoples’ Bank, National Savings Bank, State Investment and Mortgage Bank, Ceylon Electricity Board, Sri Lanka Railways, Sri Lanka Post, etc.<br />
The Rajapaksha administration didn’t do this. Where did the government find the money to manage a US$1.5 billion war, welfare schemes while not earning a quick buck by selling off state owned entities? If the Rajapaksha administration was more corrupt or as corrupt as other administrations, this should not be the trend.<br />
Further, previously sold out entities including Sri Lankan Airlines were brought back under peoples’ ownership.<br />
On top of all that, the Rajapaksha administration increased the number of persons employed in the state sector. While modern economists would not like it, the government managed the increase very well. Economists note with concern that Sri Lanka has the highest state sector employment as a percentage of the GDP. Despite that salary increases were awarded as never before.<br />
Employing unemployed graduates in very large numbers was also seen during this time. Over the years most of them have been equipped with skills to meaningfully contribute to the economy.<br />
Where is the money? Of course the government increased taxes but total taxes as a percentage of the GDP steadily fell. It is obviously not possible to sustain such a massive state sector if corruption was higher than previous governments.<br />
There were times when economic hopelessness reached astronomical proportions. In 1971, 1980, 1987, 1988, 1989, 1994, 2001 and 2004 were examples of utter hopelessness in the economic front. Is there economic hopelessness today as it was then? No. Although the cost of living has skyrocketed, people’s income has also increased. But above all there is much anticipation of future economic prospects.<br />
All this is because there is wide anticipation that the economy will do well despite the loss of GSP+, 26 years of war, international pressure and other adversities.<br />
A simple question would clarify the matter. Do you have better prospects today than there were following the tsunami (2005)? The answer is obvious.<br />
University disruptions have reduced compared to the past and the government is spending a huge amount of money on primary, secondary and tertiary education. University admissions have steadily increased. Percentage of schooling children has increased over the years. Teaching in the English medium meaningfully started and is expanding. Once this was thought impossible. The healthcare system was also protected and in fact improved. Improvement in the healthcare system helped it cope up with the very large number of war casualties from 2006-09.<br />
If corruption had not reduced compared to the past, none of this would have been possible. When governments were in dire financial state, their attention is first directed towards these vulnerable sectors.<br />
Investor confidence has increased as never before. The Colombo Stock Exchange became the world’s best stock exchange. It shows the tremendous increase in investor confidence. If the present administration was as corrupt as the previous ones, this cannot happen. Many third world countries despite more liberal economic policies were defeated by the Colombo Stock Exchange in the past few years.<br />
Very large scale investment activities take place from the South to the North.. Potential of these investments is even higher.<br />
Infrastructure development is unprecedented. A very large number of key bridges have come up linking communities and industries. New bridges have opened up new markets, production sources and reduced transportation cost and time. Economic development in the Eastern Province alone was unthinkable a few years before..<br />
Traffic congestion around the City has been a major wastage factor causing wastage in time, fuel, money, property and even lives. Flyovers that came up during the past few years have eased congestion. Real benefits will be seen in time to come. Compared to the previous work of similar nature especially the Baseline Road Project, the present government has been very efficient..</p>
<p>Work on key roads has been stalled for over 25 years until the Rajapaksha government got down to it. Now these artery roads are being built at a vigorous speed. Economic contribution that comes with it would be significant.<br />
Power plants are coming up around the country. Although some of these were on the drawing board for decades, actual work started only recently. There was a time not so long ago when governments think of power plants when CEB is forced to cut electricity.</p>
<p>A staggering US$1.5 billion was made available for defence. Compared to previous allocations, it has almost doubled. Other ancillary defence related expenditure also increased. Government refused to cut corners when it comes to requirements. Although the budget was passed with extreme difficulty, spending was better managed.<br />
A massive defence allocation along with all the other large spending endeavours was possible thanks to a reduction in relative corruption.</p>
<p>Otherwise not only the war effort would have stalled but also the state sector would have collapsed, state enterprises would have been sold out and welfare spend would have been cut.<br />
During election time these facts are not given enough prominence as the craze for power blinds a section of the population. However, the society must recognize these before it is too late to correct. Politicians are willing to wait another six years for power but people cannot wait for development any longer. They have already waited for 26 long years.</p>
]]></content:encoded>
	</item>
	<item>
		<title>By: Kamal Munasinghe</title>
		<link>http://dbsjeyaraj.com/dbsj/archives/1263#comment-18124</link>
		<dc:creator>Kamal Munasinghe</dc:creator>
		<pubDate>Thu, 14 Jan 2010 13:19:27 +0000</pubDate>
		<guid isPermaLink="false">http://dbsjeyaraj.com/dbsj/?p=1263#comment-18124</guid>
		<description>The JVP-UNP campaign to project their Common Candidate, Sarath Fonseka, as “Mr. Clean” was dented severely by Capt. Upul Illangamge, close family friend of the Gen. Fonseka for 35 years, who unmasked the hidden face of Fonseka, yesterday at a press conference in Colombo. The overall picture he presented to the media made Fonseka look like a crude, cruel, vindictive, foul-mouthed and corrupt crook.

With documentary evidence from the state of Oklahama where Fonseka’s son-in-law, Danun Tillekeratne, had registered his arms dealing Hicorp Inc., along with its subsidiary British Borneo Corporation, Capt. Illangamge exposed intimate details of Fonseka’s character and crooked deals.

Holding up pictures of the Fonseka family with him in Oaklahama, the US haven of the Fonsekas, Capt. Illangamge confirmed that he was there when Fonseka’s son-in-law, Danun, walked in and not only got details of forthcoming contracts for military hardware but also got the direct help of his father-in-law to put arms deals through the Minster of Defence (MoD). He added that both Fonseka and his wife Anoma twisted the arms of Army officers to push the deals to boost the profits of Hicorp Inc.

Capt. Illangamage challenged “Sarath Aiya” and “Anoma Akka” to prove him wrong adding that he was prepared to meet them anywhere anytime with evidence to back up his statements. To establish his close relations with the Fonsekas he said that he used to ride on the shoulders of “Sarath Aiya” when he was a kid in Amparai. He also said that when Fonseka’s daughter fell out with a relative with whom she was living in Washington he made all arrangements for the daughter and the entire family, including Anoma, to relocate in Oklahoma. When they came to Oklahoma the Fonseka family had nothing to worry. Everything was provided by him – beds, pillows, sheets, TVs etc – and they had only to lie down and sleep. He also mentioned that he gave financial assistance to the Fonseka family when they were in Oklahoma.

Dealing with Fonseka’s character he told the media that he has many faces and the face he shows on the stage is far different from the real man faced by his subordinates and even the family. Itemising some of his hidden characteristics and crooked deals Capt Illangamage said that Fonseka had, known every detail of the arms-dealing operations of his son-in-law in his presence had picked up the phone and threatened Brigadier Meedin to look sharp if he put contracts through anyone else other than his son-in-law’s company, got his wife, Anoma, to introduce his son-in-law to Maj-General Thoradeniya, to impress that his hands were clean though the clear intention was to influence decisions that would favour his son-in-law. Anoma, after introducing had told Thoradeniya: “Aney, a-ya-gay wada tikak thiyenawa. A-yata udawkaranna.” (Aney, he has some little business. Please help.)

No car to pick him up from the airport when he first came to Oklahoma and he would pick him and his family and take them shopping, banking, dining in Edmonton town where they were staying. But later his son-in-law, who had no job and who lived in Manning Flats, would pick his father-in-law, first in BMW, second time in a Humber and third time in a Range Rover. Danun also gifted his wife with hand bags $4,500.

Forced the waiter to eat the roti served at his table because it was misshapen;

hit and treated soldiers brought as cooks and waiters to his house for the slightest lapse and some soldiers assigned to him preferred to run away from the Army rather than serve him purely to avoid his cruelty and beastly treatment. These stories were related to Capt. Illangamage by Rohan Wijesundera a relative of Fonseka.

sent the Maj-Gen. Santha Kottegoda, home on his last day of service in a Toyota Ace Van after stripping all his security because he never forgave his former friend for getting the job of the Army Commander before him. Fonseka even withdrew the cook assigned to Kottegoda and he told Capt. Illangamage: “Mama, oota kanda dunney kaden genapu kama” (I made him eat the food from the shop.);

stopped Admiral Karannagoda, the Navy Commander against whom he developed an “amazing hatred” purely because he was senior to him, from passing through the Army compound – the only open route to MoD – and not allowed his escorts to follow him.

pulled out the security provided to Chandrika Bandaranaike and refused to take her phone calls. Chandrika had to go through Secretary Defence to get her security restored.

frequently addressed even high ranking generals in the most abusive terms borrowed from the sathtu waththa; and, last but not the least, abused his wife and children in the same beastly manner;

Capt. Illangamge said that he was told by Fonseka of the things he had done to the media but he would not state them at the press conference. However, he said he would given the details to Rajitha Senaratne before he heads back to his home in Oklahoma.

Capt. Illangamage’s performance on Adaderana was animated and convincing. Political circles are convinced that Fonseka’s credibility has been damaged irreparably. Capt. Illangamage told the media that he would release more information later, if needed. In the meantime, he said he had handed over the document to the relevant authorities.

View the YouTube video of damning revelations by Upul Illngamage at 
 http://www.youtube.com/watch?v=EcTS10UdGHo</description>
		<content:encoded><![CDATA[<p>The JVP-UNP campaign to project their Common Candidate, Sarath Fonseka, as “Mr. Clean” was dented severely by Capt. Upul Illangamge, close family friend of the Gen. Fonseka for 35 years, who unmasked the hidden face of Fonseka, yesterday at a press conference in Colombo. The overall picture he presented to the media made Fonseka look like a crude, cruel, vindictive, foul-mouthed and corrupt crook.</p>
<p>With documentary evidence from the state of Oklahama where Fonseka’s son-in-law, Danun Tillekeratne, had registered his arms dealing Hicorp Inc., along with its subsidiary British Borneo Corporation, Capt. Illangamge exposed intimate details of Fonseka’s character and crooked deals.</p>
<p>Holding up pictures of the Fonseka family with him in Oaklahama, the US haven of the Fonsekas, Capt. Illangamge confirmed that he was there when Fonseka’s son-in-law, Danun, walked in and not only got details of forthcoming contracts for military hardware but also got the direct help of his father-in-law to put arms deals through the Minster of Defence (MoD). He added that both Fonseka and his wife Anoma twisted the arms of Army officers to push the deals to boost the profits of Hicorp Inc.</p>
<p>Capt. Illangamage challenged “Sarath Aiya” and “Anoma Akka” to prove him wrong adding that he was prepared to meet them anywhere anytime with evidence to back up his statements. To establish his close relations with the Fonsekas he said that he used to ride on the shoulders of “Sarath Aiya” when he was a kid in Amparai. He also said that when Fonseka’s daughter fell out with a relative with whom she was living in Washington he made all arrangements for the daughter and the entire family, including Anoma, to relocate in Oklahoma. When they came to Oklahoma the Fonseka family had nothing to worry. Everything was provided by him – beds, pillows, sheets, TVs etc – and they had only to lie down and sleep. He also mentioned that he gave financial assistance to the Fonseka family when they were in Oklahoma.</p>
<p>Dealing with Fonseka’s character he told the media that he has many faces and the face he shows on the stage is far different from the real man faced by his subordinates and even the family. Itemising some of his hidden characteristics and crooked deals Capt Illangamage said that Fonseka had, known every detail of the arms-dealing operations of his son-in-law in his presence had picked up the phone and threatened Brigadier Meedin to look sharp if he put contracts through anyone else other than his son-in-law’s company, got his wife, Anoma, to introduce his son-in-law to Maj-General Thoradeniya, to impress that his hands were clean though the clear intention was to influence decisions that would favour his son-in-law. Anoma, after introducing had told Thoradeniya: “Aney, a-ya-gay wada tikak thiyenawa. A-yata udawkaranna.” (Aney, he has some little business. Please help.)</p>
<p>No car to pick him up from the airport when he first came to Oklahoma and he would pick him and his family and take them shopping, banking, dining in Edmonton town where they were staying. But later his son-in-law, who had no job and who lived in Manning Flats, would pick his father-in-law, first in BMW, second time in a Humber and third time in a Range Rover. Danun also gifted his wife with hand bags $4,500.</p>
<p>Forced the waiter to eat the roti served at his table because it was misshapen;</p>
<p>hit and treated soldiers brought as cooks and waiters to his house for the slightest lapse and some soldiers assigned to him preferred to run away from the Army rather than serve him purely to avoid his cruelty and beastly treatment. These stories were related to Capt. Illangamage by Rohan Wijesundera a relative of Fonseka.</p>
<p>sent the Maj-Gen. Santha Kottegoda, home on his last day of service in a Toyota Ace Van after stripping all his security because he never forgave his former friend for getting the job of the Army Commander before him. Fonseka even withdrew the cook assigned to Kottegoda and he told Capt. Illangamage: “Mama, oota kanda dunney kaden genapu kama” (I made him eat the food from the shop.);</p>
<p>stopped Admiral Karannagoda, the Navy Commander against whom he developed an “amazing hatred” purely because he was senior to him, from passing through the Army compound – the only open route to MoD – and not allowed his escorts to follow him.</p>
<p>pulled out the security provided to Chandrika Bandaranaike and refused to take her phone calls. Chandrika had to go through Secretary Defence to get her security restored.</p>
<p>frequently addressed even high ranking generals in the most abusive terms borrowed from the sathtu waththa; and, last but not the least, abused his wife and children in the same beastly manner;</p>
<p>Capt. Illangamge said that he was told by Fonseka of the things he had done to the media but he would not state them at the press conference. However, he said he would given the details to Rajitha Senaratne before he heads back to his home in Oklahoma.</p>
<p>Capt. Illangamage’s performance on Adaderana was animated and convincing. Political circles are convinced that Fonseka’s credibility has been damaged irreparably. Capt. Illangamage told the media that he would release more information later, if needed. In the meantime, he said he had handed over the document to the relevant authorities.</p>
<p>View the YouTube video of damning revelations by Upul Illngamage at<br />
 <a href="http://www.youtube.com/watch?v=EcTS10UdGHo" rel="nofollow">http://www.youtube.com/watch?v=EcTS10UdGHo</a></p>
]]></content:encoded>
	</item>
	<item>
		<title>By: Munidasa P Ranaweera</title>
		<link>http://dbsjeyaraj.com/dbsj/archives/1263#comment-18088</link>
		<dc:creator>Munidasa P Ranaweera</dc:creator>
		<pubDate>Tue, 12 Jan 2010 18:55:18 +0000</pubDate>
		<guid isPermaLink="false">http://dbsjeyaraj.com/dbsj/?p=1263#comment-18088</guid>
		<description>The greedy and haughty Fonseka impishly claims that he was contesting the Presidential Election to establish democracy, eradicate corruption, guarantee media freedom, and develop the country,  among many other things.

How can one expect democracy from Sarath Fonseka when he has clearly shown already the fangs of his dictatorial tendencies?  He had revised his resignation letter drafted by the treacherous cabal without any consultation with the authors of the letter.  He has barred many in the opposition including Ravi Karunanayake, Lakshman Kiriella from addressing his meetings.  He has also barred many media institutions from attending his meetings and conferences.  Despite treacherous cabal’s claim to the contrary, he has said that he does not want to be a ceremonial Head of State like William Gopallawa.

His assertion that he would eradicate corruption can be considered as the joke of the year.  How can a person who got 45 million of army budget apportioned to purchase a vehicle for himself, a person who is alleged to have made millions as commissions through material and ammunition imported to the Army through his Son-in-Law’s company, Hicorp Company of Oklahama could eradicate corruption? Documentary evidence prove that Hicorp Company registered immediately after Sarath Fonseka became Army Commander belongs to his Son-in-Law Danuna Tillekeratne.

Evidence shows that this Company supplied the security systems for the Army Headquarters, a wide variety of items and munitions, surveillance cameras, related ancillaries, and gas masks to binoculars to the Army.  It is reported that as the Agent of the Pakistani arms dealer Ahmed Nissar, Danuna Tillekaratne received commissions on all deals his Father-in-Law made and which included 2 U.S.Cents for every bullet and U.S.$ 20 for every shell procured.  The war was a real fortune for Sarath Fonseka and his family.  Four Army Special Force Commandos sent by Sarath Fonseka are reported to be  providing security for his son-in-law in Oklahoma.

Reports indicated that Sarath Fonseka has taken on rent a large house at Rajakeeya Mawatha, Colombo 7 for use as his election office. The monthly rental for this house is Rs.1 million and it was reported that he paid Rs.12 million as an advance to the landlord. How can a retired General can afford such luxuries and from where the money flaws? Was it from Prabhakaran’s parents or his friends abroad?

While professing to guarantee media freedom Sarath Fonseeka had become very harsh on media personnel and media institutions.  Certain media institutions are not permitted to attend his events called media briefings.  High ranking UNPers such as Ravi Karunanayake, Lakshman Kiriella are not permitted to address his gatherings.  When he was the Army Commander he was very unsympathetic to media personnel and some comments he made on media and media personnel in an interview with Sunday Observer on 20.07.2008 excerpted below give a clear indication of media freedom that can be expected from him.

Quote : They are not supposed to create situations where they groom people and make heroes out of them. We know that they are being bribed, given ‘drinks’, treated in restaurants and they have their own vested interests. And is it ethical for them to go for agendas misleading the people?. These so called media guys are not responsible to the people and they are not entitled to such media freedom. Media freedom is there for you to do the right thing and to be fair by everybody. Nobody has given freedom for anybody to drive their own agendas. We know very well about those media people who take bribes, write and voice their opinion for some personal gains Unquote. He also castigated the journalists saying that they do not go beyond Medawachchiya and write false reports about Army operations nullifying the army gains.

Sarath Fonseka has gone on record of being against of granting any concessions or privileges to the minority communities. One reason that he fell out with the President was that he requested permission for 100,000 new recruits for the army after the end of war, to settle them in the midst of areas habituated by the minorities, which could have created unrest among communities. In an interview with the Indian magazine Outlook he says that when he made the request the President told him that he’d stop recruiting new people to the Army because it’s too strong and too big, and that Sri Lanka would become like Myanmar.

He has also told the Outlook magazine that he would go beyond the 13th amendment and beyond the Indo Lanka accord as the Indo Lanka Accord is old now. The despicable political bandits JVP keep mum on these statements after putting the country into turmoil in 1987 against the same issues and torching billions worth of State properties, murdering the cream of the society and letting around 60,000 youth to become victims.  Somawansa Amerasinghe who escaped to India through a boat presumably arranged by his close relative Sirisena Cooray while JVP youth were being burnt alive on tyre pyres should clarify their stand on these issues.

Fonseka has admitted about his ignorance on politics and economics on the very first media conference he held.  Promise to increase the salaries of Government servants as well as those in he Private Sector by 10,000 (not clear whether it is annual or monthly increase) clearly expose his nudity on economic matters.  If he is to implement Ranil Wickremasinghe government’s economic policy, as stated in the media biefing, he has to totally curtail salary increases, curtail recruitments, privatise State Institutions, send thousands of government servants on compulsory retirement, and bring down Foreigners to be his economic advisors completely ignoring the intelligence of our economic experts. JVP that robustly opposed these policies remain mum on this matter as they are having a hidden agenda to unleash at the opportune moment.

President Mahinda Rajapakse while launching the war unswervingly, without acquiescing to neo-colonialist imperialist threats, has made massive investments for the development of infrasture of the country.  Due to his farsighted policies Sri Lanka was able to cushion off the recent recession and the food crisis that hit the world’s most powerful nations.  While thousands and thousands were being booted from jobs, shutters were being raised on large industrial units, President Mahinda Rajapakse’s government was able to recruit several thousands for new jobs, undertake massive infrastructure development work in all corners of the country, launch gigantic projects in the fields of Ports (Sea, Air and Fishery), Irrigation, Electricity, Industrial, Educational, Health, Land reclamation, and open up vast areas for cultivation. The time, the crucial time has come for us to decide on whether we should get beguiled by the innuendos of the treacherous cabal and pave the way for establishment of military dictatorship in Sri Lanka and place the future of our posterity in peril or save the nation and help the completion of the gigantic projects that could uncertainly raise the image of our nation as a giant Asian nation and usher in prosperity, peace, and happiness to our posterity.  JVP does not want the country to be developed as such developments would deprive them with slogans to shout and the opportunity to beguile the youth to join their fold. They need poverty to prevail so that they could unleash their terror campaign and create chaos in the country. Let us forget all our petty differences, political obsessions, and other parochial issues and prevent January 26th becoming a doomsday for Sri Lanka.

Watch out !
Desperate situations may cause desperate actions. Presidential candidates may kill their own innocent supporters and blame it on the opponent to gain more votes.</description>
		<content:encoded><![CDATA[<p>The greedy and haughty Fonseka impishly claims that he was contesting the Presidential Election to establish democracy, eradicate corruption, guarantee media freedom, and develop the country,  among many other things.</p>
<p>How can one expect democracy from Sarath Fonseka when he has clearly shown already the fangs of his dictatorial tendencies?  He had revised his resignation letter drafted by the treacherous cabal without any consultation with the authors of the letter.  He has barred many in the opposition including Ravi Karunanayake, Lakshman Kiriella from addressing his meetings.  He has also barred many media institutions from attending his meetings and conferences.  Despite treacherous cabal’s claim to the contrary, he has said that he does not want to be a ceremonial Head of State like William Gopallawa.</p>
<p>His assertion that he would eradicate corruption can be considered as the joke of the year.  How can a person who got 45 million of army budget apportioned to purchase a vehicle for himself, a person who is alleged to have made millions as commissions through material and ammunition imported to the Army through his Son-in-Law’s company, Hicorp Company of Oklahama could eradicate corruption? Documentary evidence prove that Hicorp Company registered immediately after Sarath Fonseka became Army Commander belongs to his Son-in-Law Danuna Tillekeratne.</p>
<p>Evidence shows that this Company supplied the security systems for the Army Headquarters, a wide variety of items and munitions, surveillance cameras, related ancillaries, and gas masks to binoculars to the Army.  It is reported that as the Agent of the Pakistani arms dealer Ahmed Nissar, Danuna Tillekaratne received commissions on all deals his Father-in-Law made and which included 2 U.S.Cents for every bullet and U.S.$ 20 for every shell procured.  The war was a real fortune for Sarath Fonseka and his family.  Four Army Special Force Commandos sent by Sarath Fonseka are reported to be  providing security for his son-in-law in Oklahoma.</p>
<p>Reports indicated that Sarath Fonseka has taken on rent a large house at Rajakeeya Mawatha, Colombo 7 for use as his election office. The monthly rental for this house is Rs.1 million and it was reported that he paid Rs.12 million as an advance to the landlord. How can a retired General can afford such luxuries and from where the money flaws? Was it from Prabhakaran’s parents or his friends abroad?</p>
<p>While professing to guarantee media freedom Sarath Fonseeka had become very harsh on media personnel and media institutions.  Certain media institutions are not permitted to attend his events called media briefings.  High ranking UNPers such as Ravi Karunanayake, Lakshman Kiriella are not permitted to address his gatherings.  When he was the Army Commander he was very unsympathetic to media personnel and some comments he made on media and media personnel in an interview with Sunday Observer on 20.07.2008 excerpted below give a clear indication of media freedom that can be expected from him.</p>
<p>Quote : They are not supposed to create situations where they groom people and make heroes out of them. We know that they are being bribed, given ‘drinks’, treated in restaurants and they have their own vested interests. And is it ethical for them to go for agendas misleading the people?. These so called media guys are not responsible to the people and they are not entitled to such media freedom. Media freedom is there for you to do the right thing and to be fair by everybody. Nobody has given freedom for anybody to drive their own agendas. We know very well about those media people who take bribes, write and voice their opinion for some personal gains Unquote. He also castigated the journalists saying that they do not go beyond Medawachchiya and write false reports about Army operations nullifying the army gains.</p>
<p>Sarath Fonseka has gone on record of being against of granting any concessions or privileges to the minority communities. One reason that he fell out with the President was that he requested permission for 100,000 new recruits for the army after the end of war, to settle them in the midst of areas habituated by the minorities, which could have created unrest among communities. In an interview with the Indian magazine Outlook he says that when he made the request the President told him that he’d stop recruiting new people to the Army because it’s too strong and too big, and that Sri Lanka would become like Myanmar.</p>
<p>He has also told the Outlook magazine that he would go beyond the 13th amendment and beyond the Indo Lanka accord as the Indo Lanka Accord is old now. The despicable political bandits JVP keep mum on these statements after putting the country into turmoil in 1987 against the same issues and torching billions worth of State properties, murdering the cream of the society and letting around 60,000 youth to become victims.  Somawansa Amerasinghe who escaped to India through a boat presumably arranged by his close relative Sirisena Cooray while JVP youth were being burnt alive on tyre pyres should clarify their stand on these issues.</p>
<p>Fonseka has admitted about his ignorance on politics and economics on the very first media conference he held.  Promise to increase the salaries of Government servants as well as those in he Private Sector by 10,000 (not clear whether it is annual or monthly increase) clearly expose his nudity on economic matters.  If he is to implement Ranil Wickremasinghe government’s economic policy, as stated in the media biefing, he has to totally curtail salary increases, curtail recruitments, privatise State Institutions, send thousands of government servants on compulsory retirement, and bring down Foreigners to be his economic advisors completely ignoring the intelligence of our economic experts. JVP that robustly opposed these policies remain mum on this matter as they are having a hidden agenda to unleash at the opportune moment.</p>
<p>President Mahinda Rajapakse while launching the war unswervingly, without acquiescing to neo-colonialist imperialist threats, has made massive investments for the development of infrasture of the country.  Due to his farsighted policies Sri Lanka was able to cushion off the recent recession and the food crisis that hit the world’s most powerful nations.  While thousands and thousands were being booted from jobs, shutters were being raised on large industrial units, President Mahinda Rajapakse’s government was able to recruit several thousands for new jobs, undertake massive infrastructure development work in all corners of the country, launch gigantic projects in the fields of Ports (Sea, Air and Fishery), Irrigation, Electricity, Industrial, Educational, Health, Land reclamation, and open up vast areas for cultivation. The time, the crucial time has come for us to decide on whether we should get beguiled by the innuendos of the treacherous cabal and pave the way for establishment of military dictatorship in Sri Lanka and place the future of our posterity in peril or save the nation and help the completion of the gigantic projects that could uncertainly raise the image of our nation as a giant Asian nation and usher in prosperity, peace, and happiness to our posterity.  JVP does not want the country to be developed as such developments would deprive them with slogans to shout and the opportunity to beguile the youth to join their fold. They need poverty to prevail so that they could unleash their terror campaign and create chaos in the country. Let us forget all our petty differences, political obsessions, and other parochial issues and prevent January 26th becoming a doomsday for Sri Lanka.</p>
<p>Watch out !<br />
Desperate situations may cause desperate actions. Presidential candidates may kill their own innocent supporters and blame it on the opponent to gain more votes.</p>
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