COPE and COPA should be open to the media:

COPE should transcend party politics -Sunil Handunnetti

By Uditha Kumarasinghe

When scenes of fisticuffs in Parliament are given wide publicity by the media, why is the transparency on public finance denied to the people, questions the Chairman of the Committee on Public Enterprises (COPE) Sunil Handunnetti. What is important is whether public funds appropriated by Parliament are properly expended and accounted for, leaving no room for corruption or embezzlement. It is also time to open the proceedings of COPE and the Committee on Public Accounts (COPA) to the media, stresses Handunnetti in an interview with the Sunday Observer.

Excerpts of the interview

Q:COPE has revealed frauds amounting to Rs.200 billion in public enterprises. What is the present level of activity with regard to these accusations made by COPE, since you took over as Chairman ?

A: Nearly 427 public enterprises come under the purview of COPE. COPE has been vested with powers to summon any public enterprise which is subject to auditing. But there are only a few public enterprises which have a direct impact on the economy such as the Sri Lanka Ports Authority, Airport, State Pharmaceuticals Corporation,Road Development Authority and the Water Board. Most of these institutions have been summoned before COPE. Do we want COPE to round up crooks or investigate whether state funds are properly used for public welfare? The public want to see the culprits netted in by COPE.

However, COPE doesn’t have any judicial powers. It cannot fulfil the role played by some law enforcement authorities such as the Police, the CID and the Bribery Commission. According to the powers vested with Parliament to control public finances, COPE can only investigate public enterprises run with public taxes and see whether they fulfil their mandate. If they don’t fulfil their responsibility, COPE can decide as to what action should be taken to provide that benefit to the people. COPE could easily round up the culprits and the politicians who defended them. COPE is not meant to round up crooks, but its investigations will certainly expose the wrong-doers.

We have already made our recommendations as to how to prevent unfair appointments, recruitment and financial frauds. There are two sets of crooks - the old and the new. They now want COPE to round up the old crooks for their misdeeds and sins of omissions and commissions. The irony is that some people of the new set up too have resorted to corruption and are the new crooks.

The process is complicated and there is a legal impediment. The law is confined to the four walls of the committee room. When journalists pose questions, it is embarrassing for me because of the inbuilt restrictions.

These restrictions should be done away with. My problem is that if clashes within Parliament can be exposed via the media, why can’t this be applied to the financial management? What is most important is whether the tax revenue collected from the people is properly utilised for public needs or not.

Q: During the tenure of the last Parliament too, COPE examined a large number of public enterprises and there were large scale frauds, but no action was taken. Will things be different this time around?

A: This is not a my sole responsibility. We can only make recommendations. It is the responsibility of the Executive to implement them. The relevant Minister is responsible for that particular public enterprise. Taking legal action based on our recommendations is up to the relevant Minister, Cabinet, Prime Minister or President.

If they don’t fulfill this responsibility, COPE decisions would be meaningless. As an Opposition MP, I can give a fair ruling without any interference.

Q: In fact, some of the same people referred to in the COPE reports are still holding official positions. What is your comment?

A: It is not only some government officials but also some Ministers referred to in the earlier COPE reports who are now back in the Government. This is a political joke. Our political structure does not maintain transparency or make justifiable rulings. Politicians try to consolidate political power by hook or by crook. Such politicians will stoop to any level to consolidate power. This is the tragedy in our country.

Q: Will you investigate bond transactions of the Central Bank under Governor Arjun Mahendran including the Rs.80 billion deal in March this year ?

A: We summon and investigate the Central Bank. When we summon Central Bank officials, we cannot examine them individually or their transactions. But it is a well-known fact that the Rs 80 billion deal did take place. I have informed the Auditor General to set up a special unit at the Central Bank and conduct an investigation on this controversial Treasury Bond issue and submit a report to COPE early. On receipt of this report, we can take further action regarding this issue.

Q:The Government hopes to find a partner for SriLankan Airlines, but no action has been taken against its previous and present managements for the huge losses. What are your observations ?

A: No action has been taken against SriLankan Airlines, the Ceylon Petroleum Corporation’s (CPC) hedging deal and several other transactions. We summoned the present board of directors of SriLankan Airlines and we will summon the previous board as well. It involves public funds and these enterprises are required to transact it with utmost care. Government funds should not be treated as anybody’s largese. Strict action should be taken against the misuse of state funds. This applies to SriLankan Airlines as well. They have purchased Airbuses without any feasibility study.

The Government is going to accommodate the debt incurred by SriLankan Airlines and sell it ignoring the need for a feasibility study. Why can’t the Government run SriLankan Airlines by exploring ways and means of settling the debts? It is obvious that the Government will ignore the debt and sell SriLankan Airlines. The Government should think of an alternative to run this institution.

Q: Another institution facing allegations is the CPC. What is the present status with regard to these investigations?

A: We summoned the CPC before COPE and held extensive discussions with them. The biggest issue faced by CPC is the Trincomalee fuel tank issue. We have given the tank complex to India and have not benefited by it. We also discussed as to why dividends could not be passed on to the people, when world fuel prices had dropped.

The mindset of professionals such as engineers is such that they feel that no one else can do their job. They attempt to take control of the entire institution under their purview. This has become a serious issue and they act like they are the owners of these institutions. If we want to move forward, we should change that mindset.

Q: The public perception that no action is taken against those who had committed huge frauds and swindling of public funds, even though they are summoned before various bodies such as COPE and FCID. What is your opinion ?

A: This is mainly due to political deals. During the tenure of the former Government, a politician was called a patriot or traitor, based on whether he was with the government or not. Even in this government, a politician is branded as a crook or not depending on his loyalty to the Government.

Any crook could turn to be a ‘good’ person if he crosses over to the government, while any good politician is branded as a crook, if he is against the government.

This is really a political deal. People should realise that this kind of government would not cater to their needs and this is definitely not Yahapalanaya (Good Governance).

Under the Yahapalanaya, a crook is a crook whether in the government or in the Opposition. I always tell those who appear before COPE to keep their politics aside. During COPE proceedings, I don’t engage in JVP politics. Neither do I yield to the pressure of UNP politics or side with SLFP politics. What the people expect from us is a service which transcends party politics.

Q:What should be done to strengthen COPE and other investigative mechanisms?

A: COPE should have more public participation. When a public enterprise is summoned before COPE, people should have a right to express their views.

At present, that right has been denied. COPE and COPA should be open to the media. COPE needs the assistance of experts.

There is a large number of employees in public enterprises who are against fraud and malpractices. We make an open invitation to them to raise their voice against corruption and bring it to the notice of COPE.