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| Sunday, 29 February 2004 |
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Features |  |
| News Business Features Editorial
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Environmental Foundation faces crisis: Eco activism vs. vested interests by Neomi Kodikara Allegations of financial mismanagement, duplicity and falsehood levelled at certain officials of the Environmental Foundation Ltd.(EFL) has alarmed environmentalists, who now question the foundation's self-appointed role as the watchdog of the environment, and wonder whether vested interest was involved in its dealings. The EFL has over the past 20 years established itself as a premier environmental conservation public interest organisation in Sri Lanka.
The series of events that led to the resignation of the Foundation's Executive Director has also created concern among environmentalists about future litigation and advocacy, as one of EFL's primary functions is to address the current threats to the country's environment and national interests. Some of the major environmental concerns taken up by the EFL for litigation include the Sigiriya Airport Project, Galle Face Development project and the Land Bill. The absence of a system of check and balance to monitor the activities of NGOs, particularly their monetary transactions, has also aroused suspicion among environmentalists about the activities of the Foundation and other similar establishments. They wonder whether the functions entrusted to NGOs are actually carried out independently, in the interest of the public or whether they have ulterior motives and vested interests. The EFL imbroglio which surfaced early last year has one set of officials accusing another set of officials, of fraud and falsehood. The latter who have already left the Foundation counter criticise the former for trying to destroy the reputation of EFL by promoting issues that oneof specific interest to them. EFL officials who do not want to be identified, accuse the former Executive Director (ED), of trying to mislead the public by giving a distorted and twisted version of the real situation, under the ruse that he and his supporters had been wronged and victimised by the new Board. A nine member new Board was elected on June 24, 2003. Accusations The former ED who also did not want to be named however, dismissed the accusations as categorically false and said he was being accused of misdeeds and mismanagement out of hatred and malice, as his directorship had infused new life into the organisation. "The EFL was brought to this standard through my hard work and I have 13 years experience as an environmental officer and ED. I raised nearly USD 400,000 for the EFL and extended its activities not only in the litigation and advocacy sector, but also in various other disciplines like community environment programmes and workshops," he said. However, EFL officials retaliated by pointing out the raising funds was the duty of the ED and there was nothing extraordinary in it for him to boast about. Meanwhile, the FORD Foundation, HIVOS and ELAW which grant financial support to the EFL have suspended funding until further notice, due to the tug-o-war between the ED and the new Board. The former ED said that the suspension had come about because he had informed the agencies about the turmoil in the EFL. However, nonpartisan EFL sources said that proposals had been sent to each agency, and that they had expressed confidence in the new Board of Directors of EFL and their activities. These sources also said that around September 1999, a year and-a-half after the appointment of the former ED, the directors had become concerned about the direction that EFL was taking, particulary with regard to its internal management. They had been particularly concerned about the ED's failure to carry out the directives of the Board. It was also observed that in some instances he had acted without Board approval. The former ED's actions and directives on various issues, without Board authorisation, particulary legal issues, were, according to these source, in clear violation of Board decisions and directives. These included purchasing valuable equipment without the approval of the Board. "Although a director had drafted a comprehensive manual on procedure, and although its use was approved by the Board, this decision was never implemented by the ED," the sources claimed. "He was continuing to flout other specific Board decisions and, at times refusing to implement them." According to EFL officials, equally problematic was his frequent absence from the country without the knowledge or approval of the Board. Internal mismanagement and an exodus of directors had made the Foundation membership increasingly concerned at EFL's apparent loss of direction, compelling them to exercise their rights under the Companies Act, and elect a new Board. The situation came to a head when it was accidentally discovered that Rs. 25,000 was paid to a lawyer without the knowledge of the Board. The Directors were unable to get a clear answer as to what the issue was and why the lawyer had been paid such a large sum, when no case was filed in the court. When questioned at a Board meeting, the ED had responded that as he brought in funds to the organisation he had the right to spend them as he wished and that the Board had no right to question him. The New Board had then requested the newly appointed Auditors to re-audit EFL's finances for the financial year ending March 31, 2003, carry out a full audit for the first quarter of 2003/2004 (April 1, 2003 - June 30, 2004) along with a random re-audit. These re-audits held the ED responsible for the financial mismanagement as well as seemingly suspicious cases where he had for no reason delayed or rejected planned litigations. The ED, however denied the accusations of a drop in the number of cases filed in a year. "In 2002 alone we filed 27 cases, when the target was only 10 and in addition to the law suits, over 50 workshops were held," he pointed out. However, this statement was refuted by EFL officials, who pointed out that the 27 was inclusive of previous litigation, and that only 3 new cases were filed, when the target was a minimum of 10. The ED is also alleged to have mishandled grants received from Ford Foundation, HIVOS Foundation, Asia Foundation and ELAW. The alleged financial mismanagement include; payments made without proper supporting documents, allowances obtained for ED's private mobile telephone without Board approval or authorisation and also funding that was being obtained by EFL without the knowledge or approval of the Board. The ED countered the accusations saying that he had obtained the Chairman's approval for all the monetary dealings and that there was no reason to get Board approval as the Chairman represented the Board. "That is how it has been happening for so many years," he pointed out. However, EFL officials said that the Chairman did not have monopolistic powers to grant approval without the collective decision of the directors of the Board. The ED's resignation came however, under rather more controversial circumstances, when it was discovered that his claims of having a Masters of Science degree in Polymer Chemistry was a fabrication. Confronted with documentary evidence of the lie, he admitted he did not have such a degree and a few days later submitted his resignation from EFL with effect from December 31, 2003. Annual Report Replying to a query from the Sunday Observer, the former ED said that a MSc was not required to be appointed as ED and of course he did not posses one, although a secretary had included it as one of his qualifications in the Annual Report as well as in his visiting cards. When asked as to why he did not correct the mistake, his blunt reply was that he had no idea about it. However, Sunday Observer learnt that he had been using it in all his letters and even in his resume. When asked why he resigned from the post, he said that he could not tolerate the step-motherly treatment. "In my capacity as ED I raised USD 400,000. Sufficient funds to last till 2006, but I was treated as a labourer,"he lamented. He criticised the election of members without an environmental background to the Board and letting them handle issues that did not come under their purview. "Their job is to give a vision to the organisation, instead they poke their fingers into unnecessary business,"he charged, alleging that the change of Board Directors and Board meetings were held without any transparency forcing some board directors to resign. "The Chairman was changed in an undemocratic manner, he charged. However, EFL officials refuted his accusation."The members of the present Board are not mere observers, they all have long years of experience in the field of environment, there are environmental writers, wildlife photographers, lawyers and some have even held offices in several other NGOs," they said. According to the ED, eleven staff members had left with him and eight others had been forced to leave their jobs, unable to bear the harassments including public verbal abuse. EFL officials denied the allegation and said that the contracts were for 12-month periods and staff members work on contract basis. According to the contract agreement, the management has absolute powers over their renewal. Land Ownership Bill The former ED took the new Board members to task about ignoring the common man's welfare to look after the interests of the Colombo 7 elite and charged the former members being unable to bear the progress of EFL as an environmental litigation institute were seeking to ruin it and destroy its good name. He alleged that the EFL was now facing a crisis, and that the chaotic situation has caused a number of planned litigations and the workshops for the Ford Foundation to be rejected or unnecessarily delayed, creating problems in maintaining targets. EFL officials denied the allegations and said that despite recent events occurring within, the Board of Directors had decided to challenge the attempt of the authorities to rush the proposed Land Ownership Bill through Parliament with a mere one week's notice. The officials said the legal team had successfully argued before the Supreme Court that the Bill, would have dire consequences for the vast majority of the rural population, whose livelihood continues to depend on state-sponsored irrigation settlement schemes. In a more recent development, the Sunday Observer learns that the former ED is now attempting to establish a new NGO called `Centre for Environmental Justice,'with the aim of providing justice for the environment and the people. The organisation has not received grants from the funding agencies, yet. EFL was founded in 1981 by a group of young lawyers to give legal protection to the country's environment. The first Chairperson was Lalanath de Silva. Then Ravi Algama was elected, continued in office until he was succeeded by Rohan Wijesinghe. The Sunday Observer reliably understand that some rival NGOs and political interested lobbies have been working towards destroying the reputation of the EFL and making it inactive as the EFL had planned to address some major environmental issues in the country. There have recently been several moves to remove control of Sri Lanka's natural resources from the public domain via institutional changes advocated by international monetary bodies and governments. This theft of biological resources is attempted to be legitimated by these machinations, which were challenged by EFL. |
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