IMF, World Bank & ADB Agenda

To my utter shock, she exclaimed that the Public Enterprises Reform Commission had carried out several fraudulent and dubious transactions, and that she required me to clear-up the augean stables, and that she would endorse, whatever, action I take. She assured me that she would give me an unfettered free hand, without any interference, whatsoever. I had no option, but to accept such Office, particularly in the context of the cordiality that subsisted between us.

President Chandrika Bandaranaike Kumaratunga kept her word, and never did she interfere in the work I performed, as Chairman, Public Enterprises Reform Commission. On the contrary, she endorsed and complimented my actions. When I tendered my resignation in November 2005, in the circumstances of her respecting a Supreme Court Ruling, having had to prematurely vacate Office, as President of Sri Lanka, in November 2005, in her Letter of acceptance of my resignation she stated - 'I take this opportunity to place on record my appreciation of the tremendous amount of work done by you as Chairman, PERC, during your short tenure of office. I thank you for rendering an excellent and professional service in finalizing a large number of complex assignments coming within the purview of PERC'

Addl. Secretary, Ministry of Lands by Letter dated 11th January 2005 forwarded to the Secretary to the President, had intimated that the Secretary to the President had informed the Commissioner of Lands, that President Chandrika Bandaranaike Kumaratunga had approved the transfer of the Land to Lanka Marine Services Ltd., and forwarded Instrument of Transfer to be signed by the President, after the payment of Rs. 1,199,362,500/- (US $ 12.4 million) is recovered by the Treasury from Lanka Marine Services Ltd.

Consequently, the 'Seal' of the Republic of Sri Lanka had been caused to be placed under the hand of President Chandrika Bandaranaike Kumaratunga on the Instrument of Transfer dated 19th January 2005, and it had been attested by the Addl. Secretary to the President, in which Transfer Instrument had been expressly recorded that Lanka Marine Services Ltd., had paid Rs. 1,199,362,500/- (US $ 12.4 million) to the Treasury, and that the Treasury of the Government of Sri Lanka had received such payment.

Subsequently, upon the Parliamentary Committee on Public Enterprises, probing the privatization, among others, of Lanka Marine Services Ltd., then Chairman, Public Enterprises Reform Commission on 21st March 2006 had addressed a Letter to Secretary to the Treasury, P.B. Jayasundera, requiring confirmation of receipt on 19th January 2005 by the Treasury of the above purchase consideration of Rs. 1,199,362,500/- (US $ 12.4 million) for the Land from Lanka Marine Services Ltd., as had been stated in the Instrument of Transfer.

Belatedly, 5 Months thereafter on 23rd August 2006, an Officer, signing for Director General, Public Enterprises, Treasury, replied confirming that the Department of Treasury Operations had not received any money in this regard from Lanka Marine Services Ltd.; thereby contradicting and giving the lie to what had been recorded in the Instrument of Transfer, on which the signature of President Chandrika Bandaranaike Kumaratunga had been caused to be placed.

Subsequent examination of the Annual Accounts of Lanka Marine Services Ltd., for the Financial Year Ended 31st March 2005, revealed that there was no record, whatsoever, in these Annual Accounts that a payment of Rs. 1,199,362,500/- (US $ 12.4 million) had been made for such Land by Lanka Marine Services Ltd., a fully owned Subsidiary of John Keells Holdings Ltd., a UN Global Compact Company since 28th May 2002 - thus committed to combat fraud and corruption, upholding the UN Convention against Corruption of December 2005.

Whilst the Case was pending before the Supreme Court, which much public interest focused thereon, John Keells Holdings Ltd., had ironically endeavoured to project itself in the media, in the public domain, to be the `most respected entity' inter-alia, in `honesty', `corporate social responsibility' and `national-mindedness'; holding out that it puts the `country before self' !

Even more revealingly, the location of the new project of John Keells Holdings Ltd., stipulated in the Application dated 20th March 2002 to the Board of Investment of Sri Lanka, had been given to be at the Address, No. 69, Walls Lane, Colombo 15, which was the Address of Lanka Marine Services Ltd., and the extent of Land stipulated, as 8 Acres 2 Roods and 21.4 Perches, which was the identical Land of Lanka Marine Services Ltd.

Shortly thereafter on 25th September 2002, under and in terms of Section 24 of the Board of Investment of Sri Lanka Law No. 4 of 1978, then Minister in charge of the Board of Investment of Sri Lanka, G.L. Peiris (now Minister of External Affairs), published Regulations in Gazette Extraordinary No. 1256/22 of 1st October 2002, extending Board of Investment of Sri Lanka tax concessions, to include to any existing enterprise engaged, inter-alia, in the business relating to petroleum.

Excerpts from Judgment of Chief Justice Sarath N. Silva :