Karmic consequences?

The report handed over by the Presidential Commission of Inquiry (PCoI) which investigated into SriLankan Airlines and Mihin Lanka operations from 2006 to 2018 has made some startling revelations, but the question now is whether those responsible will be brought to book.

The report has slammed politicians for interfering with the management of the two airlines, incompetent boards that flouted the companies’ law, and widespread corruption among a host of other issues. Since the airline was taken back by now-Opposition Leader Mahinda Rajapaksa, losses rocketed to Rs. 28.9 billion, with Mihin racking up Rs. 17 billion from 2007 to 2016. The start of Mihin Lanka was described in the report as the “worst blunder,” according to news articles. The PCoI had also said those responsible for these losses will have to face “karmic consequences.”

In some startling disclosures, the PCoI states that the airline’s staff has also been involved in gold smuggling, human trafficking, and in the gaming business. Key former officials, including the ex-Chairman and ex-CEO, declined to give evidence before the PCoI. It now remains to be seen whether this report will be sent to the Attorney General and if legal steps will be taken.

The undoubtedly political connection linked to the report, given that the President’s Sri Lanka Freedom Party (SLFP) and the Sri Lanka Podujana Peramuna (SLPP) are currently having talks to form a coalition to contest the upcoming elections, may pose an interesting quandary as to how the legal side of things will evolve, but what should not be overlooked is the intense need to make the national carrier more responsible by implementing the recommendations given in the report.  

In its list of recommendations, the PCoI has suggested that at least three board members be those proficient in the field of finance, engineering, aviation, business; that retired airline experts serve as consultants; a forensic audit be done every three years; and that strict compliance with the Companies Act be maintained as mandatory provisions of the law have been flouted.

The PCoI has also called for a National Airline policy with a Business Plan and the airline not to be run on the basis of family connections or political affiliations, and to ensure that professionals in the field be treated with respect. It has called for the restructuring of the national carrier by floating it in the Stock Exchange while concentrating as a regional airline.

These are sensible and practical solutions that can be implemented by a focused Government. Unfortunately coming at the cusp of elections, it is easier to use the report for its political value and not its public interest mandate. The amount of public funds that have been wasted by SriLankan Airlines and Mihin Lanka is staggering and is an eye-watering example of what happens when powerful politicians and corrupt officials join hands.

Losses of State-Owned Enterprises (SOEs) are so common they have almost been normalised. Even when numbers are discussed, those responsible are rarely held accountable. This state of impunity has been repeated over and over again to the point that it is doubtful if even this latest report will gain the public interest it deserves. Unfortunately, it is unlikely that losses at SOEs will change unless the political culture of Sri Lanka also changes to proactively provide more transparency, moderation and accountability.