Former first family faces multiple probes

MS takes control of SLFP as MR group retreats

The Sri Lanka Freedom Party, which was on the verge of a major split a few weeks ago, is now swiftly consolidating its position in the country’s political sphere ahead of a crucial elections to local government bodies.

Although the formation of a new political party by party rebels is not an impossibility even at this juncture, the SLFP has at least managed to prevent a sizable proportion of party MPs from breaking away from the blue camp.

The SLFP, led by President Maithripala Sirisena, had to make some tough decisions to instil discipline among its party MPs, Provincial Councillors and local government councillors. Some of them even held special conferences to exert pressure on the party’s decision-making bodies to appoint former President Mahinda Rajapaksa as the leader of the party, replacing President Sirisena, who became the SLFP Chairman after the Presidential election in January, last year.

Seniors back MS

Although a considerable number of local government councillors strongly supported the former President’s comeback bid, the majority of senior MPs chose to back President Sirisena.

Ministers S.B. Dissanayaka, Sarath Amunugama, Anura Priyadarshana Yapa and Susil Premajayantha were among those who threw their weight behind the incumbent President. As a result, the President wielded the majority support in the party’s apex decision-making bodies namely the Central Committee and the All Island Executive Committee.

The support of the party Central Committee and other decision-making bodies was a crucial lever for President Sirisena in his attempt to manage the power struggle within the SLFP. The Central Committee of the party, two weeks ago, made a decision to take stern action against any individual attempting to create divisions in the party. This decision shocked some MPs of the party who used the ‘new party’ slogan as a pressure tactic against President Sirisena and his support group.

This approach, to some extent, isolated the UPFA’s smaller constituent parties who were ‘piggybacking’ on a group of SLFP dissident MPs in an attempt to form a new party.

Former first family

Meanwhile, the pro-Rajapaksa political campaign lost its momentum in recent days with some key members of the former first family running into legal issues.

The former President’s second son, Yoshitha Rajapaksa, who was arrested by the FCID in connection with the CSN investigation, was denied bail and this whole issue was a major setback for the pro-Rajapaksa campaign.

It is now speculated that a young politician who played a key role in the previous administration is among the possible suspects in the Wasim Thajudeen case. The Colombo Additional Magistrate has already instructed the CID to proceed with the arrests and it is learnt that the suspects will be nabbed within the next two weeks.

These critical legal issues stemming from Police investigations were also instrumental in pricking the ‘new party’ balloon of the Rajapaksas and their allies.

SLFP shake-up

It is in this context that the SLFP decided to appoint new electorate organisers for some key electorates. It was a clear indication that the party had embarked on some serious re-organisation before the local government election. The new appointments showed the SLFP’s keenness to clean up the SLFP’s Augean Stables and strengthen the incumbent President’s grip on the party.

For instance, Parliamentarians Prasanna Ranatunga and Dilum Amunugama, two staunch supporters of former President Mahinda Rajapaksa, were removed from their posts of SLFP chief organiser of Minuwangoda and Senkadagala electorates respectively. Both Ranatunga and Amunugama are key members of the so-called ‘joint opposition’ Parliamentary rebel faction formed by the UPFA dissidents and the reasons for their removal from organiser posts were all too evident.

Interestingly, Prasanna Ranatunga’s brother, Ruwan Ranatunga, another scion of the influential Ranatunga clan, has been appointed as the new SLFP chief organiser for Minuwangoda. Central Province Council member Thilina Bandara Tennakoon has been appointed as SLFP chief organiser for Senkadagala.

The Ranatunga family is an important factor in the Gampaha district where electoral politics is concerned and the President has taken that factor into consideration when shuffling his cards for the Minuwangoda electorate. However, this new task will be a serious challenge for Ruwan Ranatunga as his brother, Prasanna, is a seasoned political campaigner and has a large voter-base in the area.

Meanwhile, former Maharagama Mayor Kanthi Kodikara has been removed from the post of SLFP chief organiser for Maharagama and Western Province Chief Minister Isura Devapriya has been appointed as SLFP chief organiser for Maharagama. The Kodikaras were staunch supporters of the former President and Devapriya is known as a loyalist of President Sirisena.

With Thilina Bandara Tennakoon who was the SLFP chief organiser for Kandy moving on to Senkadagala, Mahinda Abeykoon has been appointed as the chief organiser for Kandy. Thilina Tennakoon is the son of Minister Janaka Tennakoon, a stalwart in the SLFP who appeared to be a covert supporter of President Sirisena at the last Presidential election.

Minister S.B. Dissanayaka who was SLFP chief organiser for Udunuwara has been shifted to Hevaheta as SLFP chief organiser and Central Provincial Council member Manel Bandara has been appointed to Udunuwara as SLFP chief organiser. Dissanayaka, despite being a trusted lieutenant of President Sirisena, failed to secure his seat at the Parliamentary election and the new appointment will offer him an opportunity to re-invent himself in electoral politics.

Meanwhile, Mohamed Zimsan has been appointed as SLFP chief organiser for Akurana in place of the late A.R.M. Abdul Cader.

Chandima Rasaputra, a former loyalist of Rajapaksa, has been appointed SLFP chief organiser for Matara in place of Sanath Jayasuriya. Jayasuriya, who extended his support to President Sirisena after the Presidential election last year, has decided to step down from electoral politics and did not even contest at the last Parliamentary election.

Sanjaya Siriwardena, another SLFP activist sidelined under the Rajapaksa era, has been appointed as the new SLFP organiser for Mirigama.

Late Minister M.K.D.S. Gunawardena’s son, Nalin Gunawardena, has been appointed as SLFP chief organiser for Seruwila. Gunawardena was among the first group of SLFP MPs who aligned with the President when he defected from the UPFA government in November, 2014, to challenge Rajapaksa’s third term presidential bid. The appointment also marked Nalin Gunawardena’s entry into national level politics. Gunawardena, though his father was a prominent figure in the national unity government, never got involved in political matters at the national level.

Minister Mahinda Samarasinghe, another supporter of the President, has been shifted from Agalawatte to Panadura as SLFP chief organiser to fill the vacancy created with the appointment of former organiser Reginald Cooray as Northern Province Governor. Samarasinghe who failed to secure his seat at the Parliamentary election last year was appointed to Parliament from the UPFA National List.

Ranjith Somawansa, a Western Provincial Council Minister, is the new SLFP chief organiser for Agalawatte.

Keerthi Udawatte has been appointed SLFP chief organiser for Dehiwala-Mount Lavinia in place of Dhanasiri Amaratunga. Hector Bethmage is the new SLFP chief organiser for Colombo West while Sumith Vijithamuni Soysa has been appointed as SLFP chief organiser for Avissawella.

Sumithlal Mendis, who recently received a political promotion as a Provincial Council minister, is the new SLFP co-organiser for Kalutara.

Prasanna Solangaarachchi has been appointed as SLFP organiser for Kolonnawa in place of Duminda Silva. Solangaarachchi, a dynamic young politician at the local government level, openly challenged the Rajapaksas at the Presidential election last year and extended his support to Sirisena, the common candidate of the opposition.

Meanwhile, Sujeewa Chandrasiri and Anju Sri Sharma Perera have been appointed as district organisers for Colombo and Gampaha respectively. Asanka Ediriweera (SLFP district organiser for Kalutara), Pasanda Yapa Abeywardena and Nalin Ranaweera (co-district organisers for Matara) are also among the new appointees who received organiser positions from the President.

Highly placed SLFP sources told the Sunday Observer that the party would appoint nearly 30 new electorate organisers before the local government election. They said the new appointments would come as part of the party’s ‘reform process’.

SLFP Central Committee

A few days after appointing new electorate organisers, the President summoned all Central Committee members to his Paget Road, Colombo, residence for a special meeting. The meeting was convened to discuss the party’s future course of action on constitutional amendments and other reforms.

The President, commencing the meeting, informed the Central Committee members that the UNP had accepted nine proposals presented by the SLFP on constitutional reforms.

Although some senior members of the Central Committee viewed the UNP’s ‘generosity’ with a modicum of suspicion, the party decided to extend its full support to the proposal to convert the legislature into a constitutional assembly to formulate a new constitution.

SLFP CC member and former minister Athauda Seneviratne, addressing the meeting, requested the party members to refrain from criticising constitutional reforms as the party has decided to support the entire process.

Meanwhile, a heated debate arose at the Central Committee meeting when MP Kumara Welgama said the party was taking revenge from MPs of the rebel ‘joint opposition’ faction. He was referring to the removal of some Rajapaksa supporters from electorate organiser positions.

“We are the ones who represent the voice of the public. The majority of MPs of the ‘joint opposition’ are members of the SLFP. Those who jumped over from other parties are now dictating terms to us,” Welgama said, directing his criticism at some supporters of President Sirisena who were critical of the so-called ‘joint opposition’.

Minister Mahinda Samarasinghe, who was among those at the receiving end of Welgama’s criticism, decided to respond to his colleague.

“I represented the SLFP for nearly 10 years. We have always stood together with the party. It is wrong to say we jumped over from other parties. We are not outsiders,” Samarasinghe responded.

Meanwhile, Sumith Lal Mendis, a Central Committee member and provincial councillor, revealed that he had received a “strange” invitation card bearing a lotus symbol. This had come amid the on-going speculation that former President Rajapaksa’s supporters were planning to form a party with the party symbol as a lotus. “The invitation card said the former President, Welgama and Rohitha Abeygunawardena were attending the function mentioned. What is the meaning of this practice?” Mendis questioned. The provincial councillor’s question irked Welgama who represented the voice of the Rajapaksa faction at the Central Committee meeting.

“I will attend that function. I do not need permission from anyone to attend any meeting organised against this government.

I don’t want to worry about symbols,” Welgama said, justifying his conduct.

At this point, Olitha Premathirathne, another Central Committee member of the SLFP, lashed out at the Parliamentarian for criticizing those who joined the party from the UNP.

“How can you say we are outsiders? Now we are with the SLFP and it is our party,” Premathirathne said, inviting the former minister for another mini-battle.

However, several Central Committee members, including Minister Mahinda Amaraweera, intervened and prevented a clash between the two.Amidst this hullaballoo, President Maithripala Sirisena, addressing the Central Committee members, said the SLFP had embarked on a ‘new journey’ and every member should join hands with the party to support this initiative.

Affirming President Sirisena’s position, the newly appointed Governor for the Northern Province, Reginald Cooray, said the President enjoyed strong public support, not only in the South but also in the North.

“This is a good opening for us to strengthen and expedite our political activities in the Northern Province. There is immense potential for growth,” Cooray, a senior SLFP politician, explained.While the SLFP is exploring ways of strengthening its position in the country’s political sphere, the ‘joint opposition’, UPFA dissident faction, is planning to hold a rally in Colombo on March 17 against the proposed ETCA agreement with India. In addition to ETCA, the rally will also focus on the arrests of so-called war heroes, reduction of subsidies to farmers, alleged suppression of people’s rights and the postponement of the local elections.

A spokesman for the group told the Sunday Observer that former President Rajapaksa too is expected to attend the rally.

After this meeting, the group plans to hold a series of rallies in several districts in protest over the government’s recent actions. This rally is being viewed as a litmus test of the political strength of the UPFA rebel group.

Special Cabinet meeting

Apart from the Central Committee meeting, the President had to attend two Cabinet meetings this week despite his busy schedule.

The regular Cabinet meeting was held on Wednesday at the Presidential Secretariat while another special Cabinet meeting was fixed for Friday at the same venue. Friday’s Cabinet meeting was convened to discuss the economic situation of the country.

The new development came after Finance Minister Ravi Karunanayake revealed that the government had to pay an additional Rs. 1.46 trillion for loans taken by the previous government.

Karunanayake, addressing a press briefing in Colombo, also said another Rs. 5.4 billion had to be paid to the Samurdhi Ministry, which too was unaccounted for. The Minister said that out of this amount, around 60% would be foreign debt and, furthermore, the interest component too would have to be added to this capital. Minister Karunanayake revealed that this came to light last week and the Rs. 1.15 trillion unaccounted debt would be presented to the Cabinet in full detail for necessary follow up action.

“As a responsible government, we will have to honour this commitment and would now have to look for other new financial tools to meet this new financial obligation,” he explained.

It was in this light that the special Cabinet meeting was held on Friday under the auspices of President Sirisena. At the meeting, the ministers had lengthy discussions on ways in which the government could meet its financial demands and obligations.

The Cabinet then decided that the country needed comprehensive tax reform to increase its tax revenue. However, the ministers also decided that they should “tread carefully” on this path as any form of tax reform could become a sensitive political issue.

International Trade Acting Minister Sujeewa Senasinghe , speaking to the media after the meeting, said the Cabinet had extensively discussed urgent tax revisions as the government was burdened with many loans obtained by the previous regime running into billions and some of which have not been accounted for. Senasinghe took part in the meeting as his Minister, Malik Samarawickrama, was in China on an official visit.

He added the government was compelled to revise the tax as a colossal amount of money obtained from foreign countries and donor agencies by the previous government have to be paid back.

“We will take every possible measure to ensure that the common masses are not affected by the tax revision,” Senasinghe said.

Meanwhile, highly placed Cabinet sources added that some ministers had suggested increasing the Value Added Tax up to 15 percent while reducing the PAYE Tax threshold to Rs. 650,000. But, Finance Minister Ravi Karunanayake confirmed that no final decision was taken about ‘the numbers’ and the Cabinet meeting was solely to decide on policy matters.

PRECIFAC removal

In an interesting turn of events, the government last week suddenly removed Lacille de Silva from his post as Secretary to PRECIFAC (Presidential Commission of Inquiry to Investigate and Inquire into Serious Acts of Fraud, Corruption and Abuse of Power, State Resources and Privileges).

The move sent ripples across the country’s political circles as de Silva was known as an outspoken official despite his dealings with highly complicated and contentious investigations.

Explaining the government’s official stance over the matter, P.B. Abeykoon, Secretary to the President, said de Silva was not removed, but his contract as the Secretary of the Commission of Inquiry to Investigate and Inquire into Serious Acts of Fraud, Corruption and Abuse of Power, State Resources and Privileges (PRECIFAC) was not extended.

Replacing de Silva, H.W. Gunadasa, who functioned as the Secretary to the Commission of Missing Persons, has been appointed as the new Secretary of the PRECIFAC.

De silva is a cousin of Pushpa Rajapaksa, the wife of former Economic Development Minister Basil Rajapaksa who is currently facing a number of investigations on the anti-corruption front.

However, de Silva made it clear that his personal interactions would not affect his official duties or those of the Presidential Commission.

Even when he was the Secretary of the commission, De Silva wrote articles to state-run and other newspapers and expressed his views on the importance of battling bribery and corruption.

The Secretary’s removal came against a backdrop where the PRECIFAC launched investigations into the finances of the setting up of an International Arbitration Centre (IAC) as well as into the thwarting of an alleged attempt by Lanka Sathosa Limited to release a consignment of rice rotting in storage facilities.

The IAC project was launched in 2012 by the then SLMC leader and Justice Minister Rauff Hakeem, who now holds Urban Development, Water Supply and Drainage portfolios in the national unity government. The IAC office was located in the West Tower of the World Trade Centre (WTC). Numerous media reports stated that about Rs. 140 million was spent on the IAC project according to documents with the PRECIFAC.

Having recorded a series of statements in respect of transactions regarding the IAC, the PRECIFAC recently directed the Justice Ministry to remove Anusha Munasinghe, Senior Additional Secretary (Legal) over her alleged complicity in the controversial, seemingly corruption-ridden, project.

At the same time, there were some allegations from political circles that the PRECIFAC was leaking information to media with regard to certain investigations, including the one into the IAC project.

Meanwhile, the PRECIFAC also took measures to summon Minister Rishad Bathiudeen to the commission over alleged financial misappropriations at Sathosa, which came under the purview of his ministry.

The commission stirred up another hornet’s nest last week when it said it had launched an investigation into alleged mass scale acts of corruption, fraud and misuse of State assets which had occurred in Parliament in the past.

It was reported that former parliamentarian Lal Kantha had complained about various acts of corruption and fraud but the complaint had gone unheeded without any investigations into it.

PRECIFAC secretary Lacille de Silva, before his removal, told media that the Commission had launched an investigation following several public complaints received by the Commission.

But, some MPs who expressed their views on the matter said in no uncertain terms that the PRECIFAC probing into Parliament could set a bad precedence as the legislature is considered the supreme law-making body.

They alleged that the commission was trying to overstep its mandate by attempting to probe into Parliament.