IMF, World Bank & ADB Agenda on Privatisation

They sat, deliberated and reported upon the divestiture of public assets, which they, themselves, in their Report refer to as a national asset, the largest and the most important segment of the national economy, and recommended that the benefits of the privatisation be passed on to all citizens of the country in an equitable manner, and that it is desirable that the citizens of the country have a more direct stake in the plantation sector.

These, no doubt, are laudable and noble objectives, which ought to have been achieved. The question is, had the privatisation of the plantations achieved such laudable and noble goal and objective ? Have not the very mechanisms of privatisation that were recommended in Ministry Report, been contradictory to the achievement of such laudable and noble goal and objective, and irreconcilable therewith ?

A.S. Jayawardane and R.S. Jayaratne were two very senior Secretaries of the Ministries of Finance and Plantations, G.B. Wickramanayake and T.P. Gunawardene were two very senior Chartered Accountants, with both public and private sector experience, whilst Ajit Goonathilake and R.L. de Silva, were very senior experienced persons from the plantation sector. Was it that they were misled by representations made by interested parties, including professionals ?

Also, is it not a truism, that those who nurtured, developed and held sway in an era of a ‘control economy’ are not the most suited persons to be ‘visionaries’ and ‘change agents’ to comprehend and conceptualise economic restructuring to create and develop a 'free and open market economy' in contemporary times ? Open competitive transparent bidding on a level playing field is one of the very basics of such an economy.

The Ministry Committee Report, inter-alia, sets out the goals - "Ensure maximum transparency and public accountability at each level of operations of the state plantations", and "Ensure greater social justice in the allocation of shares of the national assets". However, this did not happen. Should not the Report itself have been issued as a White Paper, to have facilitated public debate and discussion on this most important segment of the economy, to have achieved such laudable and noble goals ?

It would be wrong and out of place to state that the Cabinet of Ministers had been misled - after all they would have been privy to the Ministry Committee Report. It would be an insult to the intellect, particularly to the likes of Oxford educated learned Foreign Minister, Lakshman Kadirgamar and Justice Minister, G.L. Peiris, (now Minister of External Affairs i.e. Foreign Affairs) to assume that they had been misled.

The Cabinet of Ministers stands collectively responsible for the decisions they make. The private sector enterpreuners cannot be blamed or faulted. They have done very well, without even bargaining, purely by buying at the price offered. They have handsomely benefited and profited, whereas those who were responsible for such sales, causing a loss to the Government and the public, ought to be responsible and accountable therefor. The Ministry Committee Report ironically had stated; "The proposed scheme for disposal of shares should result in maximising government revenue." This did not happen, whilst what did happen was cognizable losses being caused to the Government !

It cannot be a case of finger pointing and passing the buck. This is the largest and the most important segment of the national economy ! Has not the plantation privatisation been a fiasco ? Ought not those who were responsible be held publicly accountable ? Does it not cry out for a commission of public inquiry, whereas much less important issues have been so dealt with ? Or are the public to simply grin and bear it, when valuable public assets are so disposed of ? This is not the mere ‘family silver’, but the very valuable 'Land of the family', itself !