Activists call on President for
Commission to investigate privatisation

By Nizla Naizer

After the historical judgment by the Supreme Court declaring the privatization of SLIC in 2003 to be illegal and invalid last week, petitioner of the case and Advisor to the President Vasudeva Nanayakkara along with Public Rights Activist Nihal Sri Amaresekere are to appeal to the President to establish a powerful Commission to investigate privatisation deals.
Claiming that the Parliament has not taken action to correct itself despite repeated promises to ensure that scams and misappropriation of public property will not take place, the duo informed that they are in the process of drafting a letter to the President listing out all the major privatisation misappropriations that have been exposed in the last few years including the Lanka Marine Service and the Hilton Hotel case.
“Accountability and transparency is vital when conducting transactions relating to public property,” Vasudeva Nanayakkara stated, “And with corrupt officials at the top there is no transparency. Although they claim they will correct themselves and investigate into matters, if the public doesn’t take action, nothing will be disclosed.”
The Supreme Court Judgment last week declaring the privatization of the Sri Lanka Insurance Corporation in 2003 to be illegal caused waves across the island. While some analysts claimed it may deter the confidence of foreign investors, the activists and petitioners behind the case were jubilant in their victory. The Court declared that the 90% stake purchased for a consideration of Rs. 6 billion by Milford Holdings and Greenfield Pacific EM Holdings must be taken over by the Ministry with an equivalent in Treasury Bonds paid back to the buyers.
“This case is important not only historically and socially but also ethically,” Nanayakkara expressed at a press conference this week. “It wasn’t easy to see this case through due to the formidable nature of the respondents and those whose wrath has been raised. But we have emerged without a scratch at the end of this important race.”
10 cases and counting
Public Activist by choice and Chartered Accountant by profession, the SLIC case was Nihal Sri Amarasekere’s 10th such case in Public Interest. He explained that although the Lanka Marine Services case was filed after the SLIC case, it was concluded faster. “However, the Sri Lanka Insurance Corporation case No. 158/2007 was far more complex. The people of this country are sick of the market economy because there have been such blatant ‘private transactions’ that have misappropriated public property.”
With the Supreme Court judgment in hand Amarasekere explained that the Supreme Court in its verdict declared its conscience to be ‘shocked’ by the manner in which senior public officials handled the sale of this valuable public asset. “There was a Steering Committee established without Cabinet Approval that was to ‘advice and assist’. However, they went beyond the mandate and took action to call for bids long before the cabinet approved it in April 2002.”
While the objective of the Steering Committee was to find a ‘foreign investor’ to uplift the Sri Lanka Insurance Corporation, the activist claimed that through a series of questionable practices the sale was finally approved to Milford Holdings controlled by business tycoon Harry Jayawardene. “Milford Holdings came into the picture long after five bids were short listed from the 17 expressions of interest,” Amarasekere explained. Amarasekere stated that the judgment by the Supreme Court was incisive and clear and is another victory for the people of Sri Lanka who are made to suffer as transactions take place behind veils of secrecy. He is currently working on another case which he calls is “the biggest fraud perpetuated on public property.”