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Country
and corporate governance– Astute policies and economics
Aside
The
SAARC storm has blown over, and with it life in Colombo has
somewhat returned to normal. The roads are open (most of the
time), the hotels are accessible – so you could get married
there again if you still feel like it, and it really doesn’t
matter anymore if you put a fresh coat of paint on your wall
or not! And, for those former residents of Slave Island and
Glennie Street, and for the hounds that were savagely ‘dog-napped’
from their bountiful feeding grounds of Colombo 7, we hope
that salvation is near and dear.
The good host
So, the government decided to host the SAARC Summit in Colombo,
when it was really the Maldives turn. “The Summit would
be of immense benefit to Sri Lanka,” the government defended
its move, and rebuked opposition as “baseless and low-level
criticism.” Of course, the government did spend around
Rs. 5 billion for the entire operation, with a supplementary
budget of Rs. 2.5 billion approved by Parliament.
Now, hosting a regional summit of great political and economic
gain for all concerned is fine. Using that as an opportunity
to showcase Sri Lanka as a ‘safe place,’ too, is
fine – with some swanky new bullet-proof cars doing the
rounds. The presence of the Indian military, of course, did
prove a bit of a damper though. However, all that came with
an economic cost, at a time Sri Lanka very well could do without
added expenditure – which could be deemed unnecessary.
Thus the question: What is the real return of the billions
spent on SAARC? An investment is made with an expectation
of return, so…..?
What Outcomes, What Returns?
So, what came out of SAARC? There’s the proposed Food
Bank, which would stock up for distribution in case of scarcity
within the region. Energy – a resolve to develop conventional
sources of energy, alternate sources and reforms. The Convention
On Mutual Legal Assistance In Criminal Matters – against
terrorism and crime, and then the planned South Asian University
in New Delhi, India. All of these are well and good, but the
cause for concern is that SAARC holds the notoriety of being
a failed organisation – a front with lofty goals and
dreams seldom realised, which is acknowledged by leaders of
all member states. The Comprehensive Economic Partnership
Agreement between India and Sri Lanka – good or bad –
also didn’t happen. Thus, the question: What is the real
return Sri Lanka got out of the billions it spent on hosting
the 15th SAARC Summit? Be it goodwill, how would that be measured?
The justice league
Questions and speculation is also rife with developments (or
the lack of it) over the Supreme Court’s verdict over
the privatisation of Lanka Marine Services Ltd (MSL). Treasury
Secretary, Dr. P. B. Jayasundera, submitted his resignation
to the President, but was asked to continue. A move, as viewed
by many, disregards the ruling of the highest legal body in
the country. The Supreme Court judgment read “the allegation
that Jayasundera worked in collusion with (Susantha) Ratnayake
of John Keells to secure illegal advantages to the latter,
adverse to the public interest is established.” Just
a few days later, President Rajapaksa told a gathering of
senior officials from the Attorney General’s Department,
that it must guide the government ‘correctly’ in
legal matters. The AG’s department should assist the
legal course of action in fundamental rights cases, he added.
Given the action taken – or the lack of it – the
due judgment on the privatisation of Sri Lanka Insurance is
generating a great deal of interest amongst corporate circles;
as to what would be the observations of the Supreme Court
and thereon its impact on all those connected to the deal.
Governance: Silence Is Golden
What this ‘collusion’ between Jayasundera and Ratnayake
really is, is not known, but it is highly improbable that
whatever they did – if at all – was an individual
arbitrary action by them alone. The JKH board issued only
one statement thus far on the matter.
The judgment read: “all the amendments to the agreement
suggested by Ratnayake were incorporated by BOI ensuring the
tax relief. This process, to say the least, makes a mockery
of the rule of law and the equal protection of the law. If
the law can be bent and amended to suit an individual purpose
and to confer a benefit to any party that was not due under
the existing law, the hallowed principle of equality before
the law, will be denuded of its essential and abiding meaning.”
“JKH knew fully well that this was not a mere sale, but
a sale of shares owned by a Public Corporation in an extremely
lucrative venture. That, transparency and action being taken
according to law should necessarily underpin the validity
of the transaction,” it added.
Again, it should be deemed unfair to single out Ratnayake
because whatever was done – right or wrong – it
was done in consultation with the board, or at least some
of its members.
What’s got much of corporate Sri Lanka silently abuzz
is that Ratnayake is a member of the leadership committee
of the Ceylon Chamber of Commerce – the country’s
august trade body. It is the opinion of some that it would
be a bad precedent to ignore these recent developments. It
is something that the Chamber must address, analysts opined.
The Supreme Court has issued a ruling, and ignoring that would
set a very bad precedent. Whatever action taken at the end
by the relevant stakeholders in every capacity would set precedents
to actions and offices at every level. It is the responsibility
of everyone concerned to do what is right and uphold the rights
and rules of governance that we so claim to uphold. From a
Chamber perspective, it must realise it would be detrimental
for its leadership in trade and national economics. Policy-makers
must realise the importance of upholding justice and equality
in the eyes of the nation and the world at large, at a time
it is endeavouring to build its image. Actions speak louder
than words.
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