PM comes out all guns blazing

Speaks of dark era of terror, economic collapse, large scale corruption, white van culture . . .:

Statement by Prime Minister Ranil Wickremesinghe in Parliament on June 3.

My friend Hon Dinesh Gunawardene had raised several questions in Parliament on the appointment of the Central Bank Governor. I wish, therefore, to make a detailed statement to the House in this regard, which I am happy would enable me to explain one dark era of our country and also elucidate the actual facts.

Arjuna Mahendran was born and bred, educated and employed in Sri Lanka. He is intelligent and loved this country. His first job was in the Central Bank of Ceylon where he worked for eleven years. Later he held several high profile positions in both the State and private sector.

In 2002 he was appointed Chairman of Sri Lanka Board of Investment under G.L. Peiris, who held ministerial portfolios in several governments. He gave up his post in 2004 when the UPFA formed the government. It is because of the Rajapaksa regime that he had to leave the country having relinquished his post.

Decent citizens

In a way former President Mahinda Rajapaksa is the respondent to Hon. Dinesh Gunawardene’s question in Parliament. Let alone Arjuna Mahendran, a large number of decent citizens who were not close to Rajapaksas and holding different views found it difficult to live in this country in view of the conditions created by the Rajapaksa regime by 2006. It was worse with the minorities.

We were deprived of our dear Tamil members of Parliament such as Joseph Pararajasingham, Raviraj and Maheshwaran.

There was a great terror in this country at that time. This was the reason as to why Arjuna Mahendran had to migrate to Singapore in search of a job. Had he not done so, he too would have been a victim to the same tragedy which befell a large number of people such as Lasantha Wickrematunga, and Prageeth Ekneligoda. His life was safe as he went to Singapore.

Like him, a large number of people left the country to escape death. It was after severe torture that Keith Noyhar, Poddala Jayantha, Upali Tennekoon, Mandana Ismail had to leave their motherland.

It was such a dark era that the people of this country put an end to, on January 8 after a revolution. Sixty- three lakhs of people in this country dedicated themselves to it. That was not the end. No sooner President Maithripala was elected President, a operation was launched to rectify the wrongs committed by the Rajapaksa regime. It was decided to seek the return of all those who left the country due to fear of death. We got down not only Arjuna Mahendran but the former Police Spokesman Prishantha Jayakody as well.

We also got down a large number of Army top brass who defeated Prabhakaran and brought fame to the motherland but had to leave the country due to death threats against them due to the ‘offence’ of being Sarath Fonseka’s close friends.

We also invited those media personnel who left the country due to death threats, to return. The 100-day program was transformed into an exercise of righting the wrongs.

Sarath Fonseka was manacled, hauled and tortured and was stripped of his military decoration by the Rajapaksa regime.

The use of the word ‘General’ before his name was also suspended. We have promoted him as the first Field Marshal of this country. We also meted out justice to Chief Justice Shiranee Bandaranayake, a victim of despicable revenge.

Let us draw our attention to the Central Bank of Sri Lanka.

What did the Rajapaksa regime do?

A person who was not an Economist was appointed as Governor of the Central Bank of Sri Lanka without at least investigating the allegations of financial rackets levelled against him. Difficulties arose in the day to day work of the Central Bank after his appointment, which therefore necessitated the services of an economics expert. This resulted in the procurement of the services at a cost of US$ 5 lakhs of Dominique Strauss-Kahn, a French national who was not only an economics expert but a rapist as well. What was the result even after expending such a colossal amount of money?

It was during the tenure of this Governor of the Central Bank sans economic expertise that the country’s economy totally collapsed giving way to corruption and fraud.

Since 2007 the Central Bank resorted to commercial borrowings from the international market at higher rates of interest – US$500 million in 2007 and again US$500 million in 2009.

Even after the end of the war there were hardly an private sector investments. There was no progress in the Share Market due to the jugglery indulged in by the henchmen of the Rajapaksa regime using the Employees Provident Fund.

The Central Bank, however, borrowed upto one billion US dollars in 2010, 2011 and 2012, to offset the loss. This had an adverse effect on the balance of payments the net result of which was that the US dollar rose from Rs. 110 to 130. Standard and Poors, a credit-rating agency warned the Sri Lankan government never to repeat the blunder of wasting US$ 2.7 billion spent to protect the rupee in 2011.

Oil hedging transaction

The impact of the Oil Hedging transaction was such that the Central Bank had to pay US$ 25 million to Standard Chartered Bank and a further sum of US$ 25 million to Deutsche Bank.

Amidst all these corrupt transactions the then Central Bank Governor purchased a large amount of gold at the rate of US$ 1600 per one ounce of gold. The country suffered tremendous losses in 2013 and 2014 as a result of this deal. In addition, there occurred large-scale financial irregularities in a number of state institutions.

The Central Bank failed to maintain any financial discipline. Large-scale corruption proliferated in the SriLankan Airlines down to every state institution on account of the inaction on the part of the Central Bank. This plunged our country to disaster and therefore we need the services of experts to resuscitate the economy.Unlike the Rajapaksa regime we did not get down Strauss Kahn to Sri Lanka but an expert born in Sri Lanka of whom you people are afraid.

It is because large-scale corruption and fraud are being revealed under his administration; the capitalists, the henchmen nurtured and fostered by the Rajapaksa regime are losing their opportunities to earn through illegal means and the economy is in ascendency.

A fraud of 270% bigger than the monetary value of the scam attributed to Arjuna Mahendran has already come to light. That is why they are obstructing our mission. They are competent in breaking not making as borne out by history. They had dislodged other political organisations and when they looked back they found their own party in total disarray. This is DITTA DHAMMA VEDANEEYA KARMA’ the Retribution according to Buddhism.

Today, they are suffering the consequences, which cannot be recompensed easily as they contemplate. The pressure they brought upon the people, the colossal amount of public funds they robbed are to huge. So is the people’s disappointment. Therefore, it is not easy for them to aquit themselves.

It is, however the responsibility of the Government to protect the masses who voted for the SLFP, which deceived, misled and bribed them. President Maithripala Sirisena has today taken upon himself this responsibility.

We too have decided to extend our full support to him. If ever they make an onslaught against President Sirisena we would be in the forefront to defend him. President Maithripala Sirisena is a leader who commands the confidence of over 6.3 million voters. Our defence of him is the first step towards defeating counter-revolution. We are ready to face such a situation unconditionally with a great majority of the people. They are also conspiring against President Maithripala Sirisena. How our ‘Wattakka MP’ did this at a public meeting at Ratnapura, the whole country witnessed on television.

If this is their attitude towards the Head of State who enjoys a mandate from 6.3 million voters, the President of their own party, the President of their own alliance and also the President, who is also the First Citizen of the country, what sort of a secret agenda lies behind the questions raised against Arjuna Mahendran, an intellectual, who hails from a minority community, is crystal clear to the country.

We defeated only a fraction of that agenda on January 8, the stakeholders of the Rajapaksa regime are attempting to intimidate the people by threat, and force to buy over the people by throwing money. This was how they ruled the country in the past.

Sri Lankans left the country during the Rajapaksa regime as they loved their lives; some others did so to gain opportunities which were denied to them in the country and others due to manifold reasons.

Is it wrong to utilize their services to develop the country?

A citizen of any country is free to work in another country. This is recognised the world over including Sri Lanka.

Legal requirement

Officers of the Attorney Generals’ Department, members of the Judiciary and even judges of the Supreme Court had been employed in Fiji. It was in perfect order compatible with the Sri Lanka Government’s policy.

We are aware of the Sri Lanka Government’s policy towards the foreign nationals. Some people who were born in Sri Lanka and lived therein, had later obtained foreign citizenship, Foreign nationals are free to seek employment in Sri Lanka or open up a business. Constitution only bans foreign nationals being elected as people’s representatives.

The previous government had gone a step forward by protecting K. Padmanathan, alias KP who is a foreign national.

The Sri Lankan Government, which turned down requests by other countries to hand him over to them for terrorist investigations, took action to protect him. It is a legal requirement to take an oath of allegiance in the event of accepting citizenship of a foreign country. Gotabaya Rajapaksa did so in the USA, and Palitha Kohona in Australia. It was fair enough if questions had been raised when the previous government invited an American citizen and placed the defence of the country in his hands.

It is the seriousness of the oath of allegiance one has to take when accepting American Citizenship. The American Oath of allegiance is as follows:

“I hereby declare, on oath, that I absolutely and entirely renounce and abjure all allegiance and fidelity to any foreign prince, potentate, state, or sovereignty of whom or which I have heretofore been a subject or citizen; that I will support and defend the Constitution and laws of the United States of America against all enemies, foreign and domestic; that I will bear true faith and allegiance to the same; that I will bear arms on behalf of the United States when required by the law; that I will perform non-combatant service in the Armed Forces of the United States when required by the law; that I will perform work of national importance under civilian direction when required by the law; and that I take this obligation freely without any mental reservation or purpose of evasion; so help me God.”

This person who took such an oath of allegiance was appointed Defence Secretary on November 24, 2005.

He received his dual citizenship on November 30.

You may say that it was in order. The first Post-Independence Governor of the Central Bank of Sri Lanka was John Exter, an American national. I wonder whether you were silent on the appointment of an American national as Defence Secretary due to this precedent.

American citizenship

Even when foreign affairs was placed in the hands of an Australian national none of you had raised any queries. Those of you who kept mum now question about Arjuna Mahendran’s citizenship. I hope you could be happy at least the freedom to question is there today.

If Dinesh Gunawardene had questioned about an American citizen he would have ended up in white vans!

Today there are no white vans and as such we are happy that most people can express their views freely.

Gotabhaya Rajapaksa had not shown any signs of renouncing American citizenship. According to US laws an American national has the right to receive citizenship of any foreign country, but if he becomes a traitor, the US Government retains the right to institute legal action against him.

Whenever there is dual citizenship, the American citizenship should take precedence which is the prerogative of the US Government. The US Government also retains the right to prosecute any person who had become a traitor to USA even if he had renounced his American citizenship.

This is the very reason as to why the President and people’s representatives of Sri Lanka who represent the people’s sovereignty should compulsorily be Sri Lankan citizens according to the Constitution. Except for this, nothing prevents a foreign national holding any other post. People such as Udayanga Weeratunga, Jaliya Wickramasuriya, Palitha Kohona and Lakshman Jayaweera could be cited.

They were all foreign nationals who held responsible government posts.

I would like to tell this Assembly that the nouveau riche of the Rajapaksa regime have surreptitiously acquired foreign citizenship. I would urge those making allegations against others, to divulge information about such persons. Information is being received that these persons have acquired citizenship in countries such as Seychelles, Keyman Islands, British Virgin Islands, Andorra, Monaco and Uganda. If this is wrong, let us have some confirmation. Dinesh Gunawardene is not a member of the Sri Lanka Freedom Party. You are impeding President Maithripala Sirisena’s efforts to resuscitate the Sri Lanka Freedom Party. Similarly you are scuttling the efforts to rebuild the country.

If you are really interested in a ministerial portfolio or the post of Chief Opposition Whip we could consult the President and help you to get it. Please don’t obstruct our mission of rebuilding the country. People have completely repudiated your communalism, casteism and religious discrimination and banished them to Medamulana. People will not permit to resurrect them.

The slaves of the Rajapaksa regime suffer from an unbearable mental pain. People are prepared to quell any counter-revolution against the January 8 revolution.

An era has dawned in which people won’t leave or escape from the country. Neither are those capable and talented being banished. People who could work for the country are called upon to return as there is a healthy atmosphere in the country.

We would not tolerate anybody questioning the citizenship of those returnees who are intellectuals. Those who question Arjuna Mahendran’s foreign citizenship have not at least perused the Finance Act properly.

No investigations

You were silent when during the Rajapaksa regime Treasury bonds were not publicly auctioned but private parties were allowed to purchase them. Nobody protested against Commercial borrowings at high rates or when there were frauds reported in the Central Bank and Share Market. No investigations were held.

When allegations were levelled against the Treasury bonds, we appointed a Committee and a Parliamentary Select Committees, to investigate it. An opportunity was also provided to report to the FCID.

You may examine yourself whether any investigation was allowed under the Rajapaksa regime whenever there was an allegation not only against the Central Bank but also any other institution as well. I would like to explain the Finance Act to the House. Disqualifications for appointment to the post of Central Bank Governor or Monetary Board are clearly given in Section II of the Finance Act. Members of Parliament, Members of Provincial Councils or a Local Government bodies, state officers, judicial officers, an officer paid from the public funds or any member elected by vote cannot be appointed to this post.

Propaganda campaign

Similarly, a director, an officer, an employee or shareholder of a bank or financial institute affiliated to a bank or any other institution under the supervision of the Central Bank cannot be appointed to this post. The Finance Act contains no provision that a person who is not a citizen of Sri Lanka cannot be appointed as Governor of the Central Bank. Accordingly there is no legal bar against Arjuna Mahendran’s appointment.

Some people have let loose a propaganda campaign using their favourite media that international problems have arisen because of Arjuna Mahandran. There is no evidence to justify such allegations in the Central Bank’s local and international transactions. We are aware that the henchmen of the Rajapaksa regime are influencing the banks and financial institutions but without success.

I would like to draw your attention to two important matters. You were silent when state resources were plundered, and fraud and corruption were resorted to with the help of foreign nationals. On the contrary you have opposed the moves to ward off corruption, protect state resources and install financial discipline under the supervision of a foreign national.

I feel sorry that the members of this House have descended to this low level.

Those who spent a night in the House in defence of those who indulged in corruption could not utter a word in support of measures taken against such unscrupulous practices. The other matter is who gives instructions to raise these questions. There is a Goda Perakadoruwa, behind this who has never seen a court of law.

Finally I should mention one more matter. One family plundered public funds in billions without the knowledge of the then members of the Cabinet, Parliament or the people of this country. Today we are investigating them and somehow or other we would retrieve them. It is your responsibility to help us investigate them.

Today all countries cooperate with us. We are not isolated internationally. Therefore, we call upon you not to defend the crooks. Please join hands with President Maithripala Sirisena who is your party President and us at a time when we have launched a program of work to ensure a school for every child, a job for every youth, ward off the evil of indebtedness and develop the entire country instead of promoting one family so that you could redeem yourself of the great sin of supporting the Rajapaksa regime.

On the contrary you are going against President Maithripala Sirisena who defeated the Rajapaksa regime. The nearest example for this is MP Susil Premajayantha’s recent press release where he says, “It appears that those who went against the Sri Lanka Freedom Party are trying to cause dissension by capturing positions in the party. But the SLFP politicians who never abandoned the party will remain with the party membership.” During the last Presidential election you worked against Maithripala Sirisena and continue to do so even at present. Those who wanted to bury him are now trying to bury his policies and programs which we would not permit. We always defend President Maithripala Sirisena and uphold his good governance program and truth and condemn crooks, rogues and fraudsters. We would sacrifice ourselves to herald a new Sri Lanka, he added.

Translated by K.D.M Kittanpahuwa