Govt infighting in SL Telecom Board:

MR faces PRECIFAC, child advert issue

The vessel and the consignment of arms are now detained by the Navy, which conducted a probe into the matter early last week.

The Avant Garde company is making headlines again with a controversial ship, carrying a consignment of arms for the company, arriving at the Galle Harbour last week, seemingly with permission from the country’s Defence Ministry.

The vessel and the consignment of arms are now detained by the Navy, which conducted a probe into the matter early last week. The Navy handed over its report to Defence Ministry Secretary Karunasena Hettiarachchi on Monday and lodged a complaint with the Galle Harbour Police saying the vessel was ‘highly suspicious’.

The Defence Ministry, which initially gave the green light to the ship, is conducting a separate probe into the whole issue. The Police are also inquiring into the matter.

Avant Garde Maritime Services (Pvt) Ltd, a subsidiary of the private security firm Avant Garde Security Services (Pvt) Ltd, is a company that apparently had strong links with former Defence Secretary Gotabaya Rajapaksa. Nissanka Senadhipathy, an ex-military officer who has had close connections with the top brass of the country’s defence establishment, owns the company which is now at the centre of a major controversy.

Major Nissanka Senadhipathi was commissioned in the Sri Lanka Army and graduated from the Pakistan Military Academy as the first direct enlisted officer to the Commando Regiment. He was also a member of the Anti-Hijack and Hostage Release Unit of the Commando Regiment and was once deployed at the Colombo International Airport. Due to his performance and extensive training, Senadhipathi was also handpicked to serve as the personal bodyguard of the Sri Lankan President.

Senadhipathy, after retiring from military service, formed his own company with the support of several other ex-military men who served as board directors of the company. When Gotabaya Rajapaksa – himself a retired Army officer - was the Defence Ministry Secretary, Avant Garde Maritime Services (Pvt) Ltd entered into a joint venture with the recently formed Government Owned Business Undertaking (GOBU) of Rakna Arakshaka Lanka Ltd (RALL) to ‘provide infrastructure facilities for international maritime security services’.

Rakna Arakshaka Lanka was the brainchild of the former Defence Secretary who also functioned as its first Chairman.

‘Routine’ procedure

Avant Garde became a hot topic among the country’s defence and political circles soon after the new government came to power on January 8. Ten days after the Presidential election, the Criminal Investigation Department (CID) detained a ship carrying 12 container loads of weapons at the Galle harbour. It was revealed that the armoury belonged to the Avant Garde private security firm, run by Major (retd) Senadhipathy. Following this recovery, the CID filed action against Senadhipathy, former Defence Secretary Rajapaksa and former Navy Commander Somathilake Dissanayake in connection with the armoury.

It was in this light that the Navy last week detained the vessel carrying a consignment of arms for the private security firm. The company, however, had permission from the Defence Ministry to operate the vessel and Defence Secretary Karunasena Hettiarachchi authorized it. Saman Dissanayake, Senior Assistant Secretary in the Defence Ministry and the officer-in-charge of Civil Security, countersigned the letter and distributed it among the relevant authorities.

“The Defence Ministry forwarded copies of the letter to the Navy Commander, Director General of Customs and the Harbour Master of Galle,” a senior official of the Defence Ministry told the Sunday Observer. He added that the procedure followed by the Defence Ministry in permitting the operation of the vessel was ‘routine’. However, the main objective of the Navy’s inquiry into the vessel was to check whether the controversial company had brought in ‘undeclared’ arms and ammunition. Following the inquiry, the Navy Commander had a meeting with senior defence officials on Friday morning to discuss the way forward with regard to the vessel. The Defence Secretary was not present at the meeting as he was abroad on an official matter.

Monopoly

At the meeting, the Navy Commander informed the senior Defence officials that there were no ‘undeclared weapons” in the vessels. However, he said the number of ammunitions in the vessel was higher than the officially declared number. “Importation of undeclared ammunition cannot be dealt with the same seriousness as the importation of undeclared weapons. However, it points to a serious discrepancy on the part of the company,” the defence official said.

Against this backdrop, the government is now exploring the possibility of repealing the monopoly enjoyed by Avant Garde in terms of maritime security. The company monopoly in the field of maritime security was a direct result of strong links it maintained with certain top echelons of the defence establishment under the previous regime. Several senior advisors have informed President Maithripala Sirisena that the company’s monopoly in the field of maritime security leads to serious issues in the defence apparatus..

It is also leant that some key figures who have close links with the present government have also requested permission for similar arrangements with the country’s defence establishment. Among them is a prominent ex-military person who has close relations with the present government. Such requests, informed sources said, would also come into play when making a final decision on the monopoly enjoyed by Avant Garde.

Telecom infighting

A heated argument arose at the Sri Lanka Telecom board meeting last week as there were strong differences of opinion among its directors over the removal of Ranjith Rupasinghe, the CEO of Mobitel, a fully owned subsidiary of Telecom.

One of the directors of the company, who holds a prominent position in the UNP, pushed for Rupasinghe’s removal citing the latter’s close association with former President Mahinda Rajapaksa. Rupasinghe, whose conduct came under severe criticism at the SLT board meeting last week, faced a series of allegations over his conduct as the Mobitel CEO, under the previous government. He earned the wrath of some directors for seeking assistance from Namal Rajapaksa’s ‘Nil Balakaaya’ to promote ‘Kalaguna’, a package introduced by Mobitel, for retired government personnel. It was alleged that the promotion of the package was done in a manner that benefited the election campaign of former President Mahinda Rajapaksa.

The state –owned company also drew criticism for sending SMSs to its customers on behalf of former President Mahinda Rajapaksa. Common opposition candidate Maithripala Sirisena and other candidates did not enjoy this privilege at the last Presidential election and it amounted to a violation of election regulations. Apart from that, there were allegations that during Rupasinghe’s tenure, resources of the company had been used for Rajapaksa’s political campaign during the last election, in numerous ways. The Police Financial Crimes Investigation Division (FCID) also received complaints against Rupasinghe over his conduct as the CEO of Mobitel. It was in the light of such allegations that the SLT director board decided to suspend Mobitel CEO Ranjith Rubasinghe pending an inquiry.

Telecommunications and Digital Infrastructure Minister Harin Fernando had to step in to resolve the heated dispute between members of the director board over Rupasinghe’s removal. Party stalwart Krishantha Prasad Cooray was among the directors who strongly pushed for Rupasinghe’s removal at Friday’s meeting.

Another director of the state-run telecommunication company, W.K.H. Wegapitiya also resigned from the company as his conduct had come under criticism from some directors. Sources said Wegapitiya had openly criticized certain decisions made by the board of directors and had even asked employees of the company to protest against the decisions.

Wegapitiya, however, had denied any wrongdoing and it led to a hot debate over the matter. Wegapitiya is the head of LAUGFS Holdings LTD, a large business entity in the private sector that has interests in a wide range of fields.

Politics

Politics has played a role in the circumstances leading to the director board battle at Telecom, a company coming under the purview of the Telecommunications and Digital Infrastructure Ministry. When the UNP and the SLFP formed a national unity government on the basis of a Memorandum of Understanding between the two major parties, the leadership of key state sector institutions was shared between the two parties.

The two parties had a tacit agreement not to interfere with appointments made by each other. Ministers who represented the UNP were given a freehand to appoint heads of their institutions with no interference from the SLFP. The SLFP ministers too had the same privilege and the ministers from the UNP had no say over the appointments made by the other party. Seniors of the government initiated this ‘understanding’ to avoid clashes during the initial stages of formation of the national unity government

Both Rupasinghe and Wegapitiya, two members of the board of directors, had close affiliations with the SLFP while the ministry which overlooked the state-run telecommunications company was held by the UNP. Krishantha Cooray, a Working Committee member of the UNP, was also appointed to the Telecom board of directors probably to strike a balance within the key decision making body of the state- owned company.

Cooray was appointed to the director board during Mangala Samaraweera’s tenure as the Telecommunications Minister, under the earlier ‘100-day government’ formed after Maithripala Sirisena’s presidential victory. On the other hand, the board of directors also had representatives of the Malaysian stakeholder of SLT to protect the interests of its private sector investors. This complicated nature of the composition of its director board led to various issues in the company’s management.

MR at PRECIFAC

Although various allegations have been levelled against members of the former first family, former President Mahinda Rajapaksa, until last week, avoided investigative bodies and commissions probing into charges against him. When he was summoned by the Bribery Commission a few months ago to record a statement, he ‘dodged’ the investigation through a ‘sleep-over’ protest in Parliament, staged by his own associates. As a result, the bribery investigation against the former President did not materialize.

When the Presidential Commission of Inquiry Into Mass Scale Fraud And Corruption (PRECIFAC) summoned him two weeks ago, the former President did notgo to the Commission office. Instead, the Commissioners visited the former President’s residence in Mirihana to record his statement over the non-payment of bills for his election campaign advertising during the last Presidential election. Even though all are equal before law, the former President, who ruled the country with uninhibited executive powers, clearly showed that some are more equal than others!

The former President’s tendency to dodge questioning and inquiries brought the bona-fides of the new government’s anti corruption investigations into serious question. Some even began to claim that the battle against corruption is also corrupt.

Even so the former President had to end his hide-and-seek game last week - he had to personally appear before the PRECIFAC. The inquiry was a public hearing and apart from Rajapaksa, some key members of his election campaign too were summoned by the Commission to obtain statements over the non-payment of bills.

Rajapaksa supporters had planned to hold a protest demonstration on Thursday morning to coincide with the former President’s arrival at the Commission office.

A massive publicity campaign was carried out on social media urging Rajapaksa supporters to attend the event and show their support to the ‘war winning’ President. Despite the publicity campaign, the protest drew a poor crowd, much to the disappointment of the former President who was accompanied by a phalanx of security officers and bodyguards.

The proceedings took an unexpected turn when defence counsel Gamini Marapone, who appeared for the former President, raised objections that serving judges of the High Court cannot be appointed to function as members of the Commission.

He said the former President’s opponent at the last Presidential election, President Maithripala Sirisena, had appointed the members of the commission of inquiry, and argued that it was against the tenets of justice.

Counsel Marapone made three more objections on behalf of the former President in addition to the main objection.

Marapone objected to the making of a statement before a Presidential Commission that was headed by a Colombo High Court Judge since, he claimed, High Court Judges have no power to involve themselves in the activities of other commissions outside their courts’ activities.

Thereafter, Senior State Counsel Janaka Bandara also submitted counter objections to the Commission. The Commission after considering the submissions adjourned sittings for 20 minutes.

When the Commission resumed sittings after 20 minutes interval, Commission Chairman High Court Judge Preethi Padman Surasena said that the Commission decided to put off the verdict for Friday.

On Friday, the PRECIFAC, which is also probing several other cases, decided to reject the technical objections raised by the former President’s lawyer and, to proceed with its mandate. The questioning took place as scheduled and the public was allowed to witness the proceedings.

The former President, in his statement, said he was not aware of his advertisements as the party carried out the campaign. Rajapaksa said he was a representative of the party and if there was an issue of non-payment of bills, the UPFA and its officials should take responsibility.

This statement compelled the commission to question Minister Susil Premajayantha, who was the General Secretary of the UPFA at the time of the Presidential election.

Premajayantha, who was a close ally of Rajapaksa before the Parliamentary election, subsequently was quick to switch allegiance and accepted a ministerial portfolio from President Maithripala Sirisena.

A few days before the parliamentary election, President Sirisena removed Premajayantha from his position as the UPFA General Secretary, plunging the UPFA’s election campaign into a serious crisis.

Minister Susil Praeajayantha, when cross-examined by the commissioners, did not find fault with his former leader for non-payment of bills.

He said that former President Rajapaksa was not responsible for these charges as he was a only a candidate fielded by the SLFP for the 2015 Presidential election. It was an affirmation of the former President’s statement to the commission.

The Minister said that the SLFP did not directly give any advertisement to the ITN and that two advertising firms involved in the campaign had given all the advertisements.

“The issues with regard to non payment of bills to ITN should be taken up with the advertising firm concerned,” he said.

He said that the advertising firm in question should take the whole responsibility with regard to losses incurred to the ITN.

There are indications that the Commission will summon the proprietors of the advertising company which handled Rajapaksa’s election Ads during the last Presidential election. An advertising company linked to a prominent businessman who is well known in the electronic media industry produced most of his advertisements.

It is almost impossible to believe that the advertising company produced advertisements for Rajapaksa without signing any documents. However, if the advertising agency proves that they had a formal mandate to produce and telecast ads for the former President, the ball will come back to Rajapaksa’s court.

The next sittings of PRECIFAC were fixed for October 19.

Child in advert

Another court case was where the former President’s election campaign involved a 14- year old child who appeared in a news item during the last Presidential election.

In the news item aired on the state- run ITN at the time, the child claimed that Maithripala Sirisena, who was the Common Candidate of the Opposition at the time, was detaining his mother.

This incident led to legal action involving eight suspects including some high profile officials such as former diplomat Sepala Ratnayake, former Telecommunications Regulatory Commission Director-General Anusha Pelpita, former Deputy General Manager of ITN Sudharman Radaliyagoda and ASP Sarachchandra Gunathilaka.

The Police reported that the suspects had allegedly used the child for a news item during the last Presidential election without his guardian’s consent.

However, in a major development on Thursday, the mother of the child, through an affidavit filed by her lawyers, attempted to withdraw the case when it was taken up for hearing.

At this point, the state counsel representing the Attorney General’s Department opposed any move to withdraw the case stating it was a child abuse case. Considering submissions by both parties, Fort Magistrate Thilina Gamage rejected the mother’s request to withdraw the case.

Interpol

Meanwhile, it transpired in court on Friday that an Interpol ‘red warrant’ had been issued against Sepala Ratnayake, former Minister (Consular and Immigration) in the Sri Lanka High Commission in the UK.

Sources from the Attorney General’s Department said the eight suspects would be indicted in the Colombo High Court next week, in connection with the case.