Eran raises concerns over Ministers’ business interests causing conflicts of interest

• Private sector must play active role in combating bribery and corruption in the system: Eran
• Says business community has never come forward with evidence of bribery despite constant complaining
• Says some disruption of the system is necessary to fix it
• Advocates for elimination of human contact as solution
• CIABOC DG says lack of evidence makes prosecution difficult, faults business community for not coming forward
• Says private sector has both moral obligation and responsibility to combat corruption 

Parliamentarians who accept Cabinet portfolios must give up their business interests to avoid conflicts of interest, State Finance Minister Eran Wickramaratne said on Tuesday.

State Minister of Finance Eran Wickramaratne

The State Minister of Finance noted that the practice, which is “being treated as the norm” must end, noting that MPs who do not wish to give up their business interests should refuse Cabinet portfolios, which have access to all information in the Government.

“There are Ministers in Cabinet who have business interests. When you decide as a MP of Parliament, when you are invited to be a Cabinet member of the Government of the country, you have to sever all your business interests, that is the only way … It is almost normal today to accept that with my business I would accept a Cabinet position. Cabinet is a place in which we are privileged with all the information in the system, where we take decisions that will affect every citizen of this country, we must change this system,” he said. 

Speaking at the forum titled “Role of Finance Professionals in Combating Bribery and Corruption”, organized by CA Sri Lanka, together with the South Asian Federation of Accountants, the State Minister also called for the private sector to be committed to combating bribery and corruption.

Advocating for action from the business community to change the system, he said that some disruption was necessary to change the system for the better.

“If we want to change the system, we need to get serious with it. Systematic changes are not possible without disrupting the existing system. It is when we are all agreed that some disruption is in the system worth tolerating so that we can get a cleaner better system, only then will the system change,” he said.

Wickramaratne, critical of the lack of commitment from the private sector on combating corruption and bribery issues in the State system, said that despite various complaints about having to pay money to accomplish various tasks in the Government, “no businessman has come forward with evidence of transactions,” for the Government to be able to take action.

“I told them, please stop complaining, and please come to me with a transaction. I still have not received a single businessman coming to me with a transaction or corruption, which I could then refer to the appropriate authority,” he said.

The State Minister also said that human contact in places such as Inland Revenue and Customs, where bribery and corruption levels are high, should be minimized, to reduce opportunities to abuse the system.

Speaking at the forum, Commission to Investigate Allegations of Bribery or Corruption (CIABOC) Director General Sarath Jayamanne PC, also said that lack of evidence has become a major setback in taking action against those who violate the law.

“In order to go after bribe-takers we need evidence, who would come before the law … Our difficulty is also this,” he said, noting that “no businessman in the country” will bring forward evidence to take action against corrupt practices.

Referring to the arrest of a key official in the Presidential Secretariat, Jayamanne pointed out that CIABOC was able to take action because a foreign businessman - an Indian national - came forward with evidence. 

However, he noted that the private sector has an obligation to ensure that the law is upheld.

“The private sector cannot say ‘we are not part of the Government’. You have to say you are very much involved in the Government sector. Why? The private sector has not brought resources from the moon or any other planet, you are using the resources of the commoners in this land. So you have a moral obligation as well as a legal obligation to fulfil their responsibilities,” he said.

“Therefore, the private sector must play an active role in eradicating bribery and corruption, more specifically tax payments. How many companies pay their taxes in an orderly manner?” Jayamanne questioned, noting that many company accountants try to directly or indirectly negotiate to pay lower tax amounts to the Inland Revenue Department.