How vociferous must an opposition be to dent the will of the Government?

Do you remember the death of Roshen Chanaka and the public outcry, which forced the government to withdraw the Private Pension Bill from Parliament? What must we do to safeguard our country to force the government again to withdraw the latest Expropriation Bill for want of a lack of clarity of purpose?

A former Chief Justice has ruled it unconstitutional despite the rubber stamping of the present Supreme Court. The Maha Sagha have called it an affront to the Buddhist principles. The Chambers of Commerce want certain provisions removed, but appear to have been bought over out of intimidation! All opposition parties vociferously oppose this but have little power in Parliament to prevent passage. There is a public outcry in various intellectual quarters from University Dons to Intelligent Commentators. Those engaged in attracting foreign investment both to the tourist industry and others are shivering in their shoes trying to find a response to the perceived attack on future investment. The reassurance by the govt. that this is a one off Bill falls on deaf ears, due to the huge number of loss making enterprises under their purview. This hardly gives credibility to their assertion that they can do better than the current owners of the continuing businesses.

The lame defense of the govt. that it was noted at last years budget speech or that these were formerly govt. undertakings that were privatized with conditions that have not been met, does not hold sway in the court of international opinion that the govt. does not appear to care about, but still want by way of investment. They must realize they cannot have their cake and eat it. Something has got to give.

I have personally appealed to the govt. back benches to see sense and try to use the back door to prevent the bill from being presented. They are however too scared of the power of the President and the threats and intimidation, that will forever end their political futures if they stand for common sense. In summary they see it as a completely arrogant personnel attempt at imposing their will on the state.

What pray are we now to do in these circumstances? The power of office can only be broken by an uprising that is spontaneous and unplanned that reflects the will of the people. Unlike in the Pension case where the workers saw it as a threat to their pocket books directly, which could arouse instant anger, this is more an intellectual exercise in reason and common sense and in that regard due to the lack of both on the part of the rulers, it is difficult to fathom a climb down. Further with international pressure on the Human Rights Front they need some comfort that they can enact laws on a whim without fear for mental satisfaction desire relief.

How easy is it to “Turn from Hero to Zero for Greed?”

 I was extremely saddened to see the fall from integrity of a business leader who I respected, turning into a lap dog of the administration for favors earned and expected. He is obviously willing to sacrifice his principals, which now I doubt he ever had for personal gain and misplaced expected glory.

In the “State of Business” TV program I saw Mr. Wegapitiya who was pontificating on the fact that the representatives were unaware of the content, when the delegation of officers representing all the Chambers of Industry including him went to meet the President to express their regret at the hasty introduction of a bill without even consulting the very stakeholders who are affected.

It is the content itself which is contentious and due to that by extension the possibilities of future additions despite Government assurances, which he should know better are at best ‘intentions’. I have studied the Bill very carefully and the underutilized and underperforming enterprises are not defined. That leads to content inadequacy and confusion, relegating the list to two schedules. At least the list can be incorporated into the body of the Bill to avoid confusion and future additions. Amendments then would require a new Bill. He obviously does not understand the subject and chooses to defend the indefensible for other reasons.

It was not too long ago that he sold a big chunk of his majority holding in Laugfs Gas to the EPF at prices well above the prevailing rate that raised many eyebrows. The eyebrows rose heavenward when his company bought back shares in the market at much lower prices a few weeks later. The implication was that he well knew the share price will fall. He could then replenish his stock. However, he was able to convince EPF which shows unjustifiable foul play in their investment decisions in the past few years. Any fool can tell the EPF that they will be able to buy a decent stock of any company at around 15% less than current prevailing market prices, in 2012, and to hold on to the funds of the workers of this country in order to make a better investment later, on behalf of the contributing public, who are almost all the working people receiving a wage in Sri Lanka.

Furthermore, with the CSE tanking, LITRO, which was to get a listing has been postponed. When CSE prices drop next year its value being so much lower will be sold to Laugfs Gas for a lower price. This will give it an unfair monopoly in the LPG market. The govt. will be forced to sell assets next year to meet IMF funding requirements, justifying the sale at bargain basement rates. This shows a very calculated move for personal gain, and consumers lose in the Banana Republic.

A climb down by the Federation of Chambers representing Business - shame on you scared suckers!!

The hastily prepared Bill to expropriate 37 legal entities has been somewhat endorsed by the body representing all employers in Sri Lanka. They have only requested that the two Sugar companies be excluded, but they being the most controversial are the ones that the President for reasons unclear refuses to budge on. The only grace at Saturday’s meeting was that he said he would permit them to put an alternative proposal regarding their future. Whether that means before or after the takeover is unclear. The government spokesmen are hiding behind the statement made a year earlier, in the budget speech that under-performing entities will be taken over if not satisfactorily managed.

They government wants to take over the two sugar companies and the Colombo land bank of the other two companies for personal gain. Apparently one of the Principal’s of Hingurana acts as a surrogate to rulers, and if the aforesaid has the monopoly of producing the by product alcohol from the sugar refining, they will be able to make super profits in addition to the profits on sugar once the taxes are further increased which will make even this activity supremely profitable.

The government will also increase the import duty of the alcohol that all other distilleries will have to import, or buy the local from this company at the then inflated price. In a simple word it is ultimate protection of an import substitute given to one company that is a surrogate of the rulers who are making these very rules and laws misusing the authority vested in them by the people. This hugely unpatriotic act is something not readily apparent to the rather slavish electorate, which the government does not wish to be aware of the true state by suppressing all media and information sources critical of their actions.

The increased duty on the necessary alcohol will enable the local operation now created to earn billions in profits. This company can also be sold to a foreign country such as China for billions as it is a typical company they would like to buy and the sale proceeds will directly vest to the owners and to their Swiss Bank accounts.

Any person with common sense will realize that there is something very insidious going on with regard to new laws that make no sense in terms of the objectives laid out by the government and instead are contrary both to business ethics and norms of objectives in high growth countries. These spurious laws that at best are short term solutions for quick profits and long term disasters for the economy must be challenged and prevented from being passed if we are to safeguard the future of the country for its citizens. It is apparent from the detailed analysis of the Chief Justice on this issue that it is clearly unconstitutional and the interpretation by the Kangaroo Court of the Country that it is acceptable and not in contravention of the constitution is but a travesty of the abuse of the legal system.

A leading businessman said it is perception that is most important at this stage in the next stage of economic growth, and if this is stifled by government edicts and policies then it is a waste of time pretending this government and by extension the country is in fact investor friendly. No matter how hard the government tries to wish this away as an isolated matter that will only relate to the 37 companies, the complete lack of definitions of what is meant by the various terms in the bill cause concern that mere platitudes will not satisfy.

It is significant that there is not a word from Mr Harry Jayawardene, a long time supporter of the SLFP with billions of rupees to be so targeted, and after losing SLIC and the ire with which the courts criminalized the Secretary to the Treasury in that matter, and now it seems this very same person is taking it out on Harry Jayawardene. He has more to lose. If with the vesting of Pelwatte Sugar, the whole new billion plus rupee dairy project, that is hugely capital intensive and includes a milk powder processing plant, is also vested in the government, then for economies of scale and to ensure the full capacity of the huge plant is utilized will probably re vest the LMF assets with all the Ambewela and NZ dairy Farms up country as well as the largest asset in LMF which is the huge holding in Distilleries to effectively remove him from control of the Distilleries too, and in one swell swoop take over The Distilleries prize again for their personal use with a few tidbits to their friends for helping them in this process.

The hijacking of private property in this insidious way by passing laws will serve to convince everyone in business in Sri Lanka and overseas to take their capital and runaway as fast as they can. We will lose what business and entrepreneurs we have to other countries, starving the people out of employment and completely ruin this economy. These lawmakers have no clue, having never managed or run any company in their lives who have spent a lifetime sponging off the state to realize how incredibly foolish this act is in fulfilling the objectives of the government as well as the plans of the people in Sri Lanka to improve their living conditions.

Let us sincerely hope there can be a sufficient number of parliamentarians who are prepared to go against their rulers in doing what is right for the country than behave like slaves who can be bought for a few crumbs and prevent the bill from becoming law. It is what the country expects of you, putting “COUNTRY FIRST”.

The unceasing waves of attacks continue with now “Web Sites” targeted

If this is not evidence of the impending implosion of Sri Lanka what is? Why is this State so frightened of criticism if they have nothing to hide or hide from? This attack just announced is the latest wave of attempts to choke the truth. The state is hell bent on repression, as oppression is now defunct and done with.

In the period to date, they felt that stifling criticism by way of abductions of media personnel and intimidation of people in rural areas who are usually very frightened of the local politician thugs and his enforcer the OIC. Now it is taken to cyber space. Who do they think they are trying to kid by registering websites. Are they frightened the Arab Spring will turn into the Sri Lankan monsoon.

Shame on you! We work so hard to get this country working and the state works so hard to dampen hard work, and instead gives a place to thugs, drug dealers, and pistol wielding ex- army personnel to run their private armies, in addition to the official forces. The treachery of the state against the populace who are unable to fight back is disgraceful. I would only hope people wake up from this deep sleep and rise to point out what is right and wrong and what is deeply unpatriotic in our system.

2012 portends a year of absolute anarchy in Sri Lanka and to stifle people’s revolt all areas of potential fallout are currently being isolated by the Presidential Secretariat and dictates are emanating from these analyses such as the latest one referred to here. We who can actually express our views owe it to our society and the country we so love to prevent a bunch of thugs from hijacking free enterprise, freedom of expression in all it forms, and all the assets that the millions of people are working hard to earn for their families by denying them their rightful share.

Wake up, reality bites and now it is bites harder than ever. Do not let yourself be influenced by others, just work it out for yourself by purely evaluating and analyzing the facts as they are today, determine where we are headed. Those currently backing the regime will turn against them once a few turned heads in their camp put sense into them. Till then, it is a lone battle to ask the people to consider what they want for the future and whether the current direction of policies will ever able them to achieve their own personal and communal objectives.

I appeal to all patriots, let us call this treachery for what it is and pass the only sentence treachery dictates, for the sake of all our future generations, your kids and grand kids if you have them. They will forever be indebted to your sacrifice.

Who is conducting this Orchestra that is strangling the future?

I have tried to use my contacts to look into who it is that is attempting to bring in surreptitious legislation to strangle the future investment, development, progress and entrepreneurship in Sri Lanka. No one claims ownership and it the only government spokesman defending this draft bill referred to in the earlier blog post, was the Media minister, asserting that it was a means to take back organizations that had been given state assistance such as subsidized land or tax concessions, but which have not performed to the satisfaction of the state. Do you really think that a competent authority appointed by the state is going to do a better job, even if the earlier assertion is in fact true?

I rather think not and there is a more sinister move afoot. The haste with which this was done, with the attorney general’s office, legal draftsman providing an initial document which to their dismay was completely overhauled by a private legal firm, being a recently retired legal luminary in government. This has so annoyed the AG’s office that it is more than likely that they to spite the break in protocol will infuse the bill with a legal ‘faux pas’. The draft was rushed through the Supreme Court in 48 hours that it is constitutional. It will revert to them after passing for interpretation due to the aforesaid spanner!

That said, we go back to who is the culprit, and it is more than likely to be from the Treasury, where an embittered man wants to take some revenge on people he does not like before his final farewell from power. Remember government servants are ‘no bodies’ upon retirement, especially those who have been convicted and then reinstated! The possibilities therefore of the last hurrah should be considered.

Taking the 4 organizations with the most value in the list of 37, namely Chalmers, Tractors, Pelwatte and Sevenagala something quite suspicious crops up. The possibility that the Hingurana principals, along with a big overseas investor (read into it billions of commissions) want access to the factories and warehouse space so that a sugar plantation of huge proportion can be set up, to make a dent in the self sufficiency of sugar in Sri Lanka. There is no way the current setup can achieve this, and labor costs are too high for manual effort and huge machinery investment require other guarantees. With expected huge devaluation in 2012, the value of a local mega sugar factory plantation is too good to let go. The palm greasing possibilities are so great that these people will sell their mothers for money and in this case are selling their country! It is sad that all genuine concerns for the country are set aside in this wholesale pawning of national assets that future generations will have to suffer to pay, after the perpetrators have passed on.

The legislation to be presented Parliament next week will “grab all you got”

 

I have gone through the draft bill to be presented to Parliament on 9^th November with one day allocated for debate. The government expects to take over the Underperforming Asset which is the Hilton, and the list of Underutilized assets that include Pelwatta and Sevenagala Sugar and run it with a competent authority. Compensation will be determined by the Compensation Tribunal.

Whilst the draft as it stands does not refer to any more assets and only to those in the schedule with the extents of land for each of the companies involved, Pelwatte’s 6,300 hectares stands out as the largest single extent of land.

This legislation is just the beginning. It is very easy after a while to pass an amendment to the Act to take over any property on the whim of anyone in power. Your own technically be taken over using the same provisions of the Act after being called underutilized. The word under-utilized is not defined as when they takeover a profitable listed company like Pelwatte Sugar, then nothing is safe on this legislation.

The opposition does not have the fire power to fight the might of the Government and there is no doubt this will pass on the day it is presented as only a day has been allocated. What do we in Sri Lanka want from our Government? We must ask this very pertinent question. Giving a two thirds majority effectively means we have given them complete control over our lives. We as citizens of Sri Lanka DO NOT have any control anymore of our lives even till we die as all our hard work will be taken over in a jiffy.

If we demonstrate our opposition to the government we could find ourselves out of hearth and home. This is the reality of living in a Dictatorship. We know that once the dictatorship runs its course, the dictators end up in a Ghadaffiesqe fall from grace but up until then it is business as usual in a a Banana Republic.

The greatest control a dictator has is the power and money and influence he can use on the citizens of the country. As long as he can satisfy the powerful and the mighty with the use of the Armed Forces for support he has nothing to worry about as the people, especially those living in Sri Lanka can be kept enslaved by fear. So we must rise and combat this type of flagrant abuse of power. This legislation is not necessary to vest the list into government control, because there are existing provisions to infuse capital and take a majority interest except for listed companies.

THIS WILL BE A CATALYST FOR THE OPPOSITION TO BERRATE THE GOVT. PERHAPS EVEN GET THEM TO CHANGE IT IF THEY ARE LUCKY. IN REALITY THEY WILL ALLOW HARRY J HIS BIT OF PELAWATTA AND LET HIM GO FREE AND AS A QUID PRO QUO OFFER DAYA GAMAGE HIS BIT OF SEVANAGALA TOO FOR GOOD MEASURE.