UNP MP Dr. de Silva breathes fire against State Takeover Bill

By Dr. Harsha de Silva

It is unbelievable that the State could act in this way. This is no different from the Mugabe administration. We are slowly but surely losing our economic freedom in the land that is supposed to be free.

1. Urgent Bill: meaning no discussion. No one had seen the Bill until it was ‘approved’ by the SC within 48 hours. Assume it will be brought to Parliament on 7 November, next sitting day. It is wrong to legislate this way. Surely it violates the constitution and the rights of the people.  With the government having its two-third (purchased) majority any bill can be passed to become an act.

2. Unilateral definition of ‘under-performing enterprise’ and ‘under-utilised asset’. No objective criteria given; only some subjective and opaque nonsense written up including ‘prejudicial to the national economy’.  No way for owners to prove their assets have performed to the maximum; given the various conditions (local, global, political, etc.). No fair hearing. For instance according to recent newspaper article how can Chalmers Granary perform when the lease holder had not been given the property for some 17 years?  Is there any particular high-flier interested in the land?

3. If ‘under-performing’ and ‘under-utilised’ are defined, why do we need two schedules to list ‘identified’ companies? Clearly, there is more than one company that has ‘under-performed’ as per Schedule I according to the lame criteria in the Bill and there are numerous other ‘underutilised assets’ other than the ones listed in Schedule II.  How come only some have been listed while some others have been spared? Who evaluated the performance? Were the companies involved requested to participate in the evaluation? Did the evaluators even visit the factories to see if the assets were utilised? Did the powers-that-be even go through the accounts? What is going on? Our Constitution says every person is equal before the law (presumably with the exception of the President) but this clearly does not reflect that equality. 

4. Funny why Harry Jayawardene’s Pelwatte (who purchased it from Ariyaseela Wickremeratne recently), a listed company that shows increasing profitability and good signs of turning around (even the June 2011 Financial Statements are available on the CSE website) and Daya and Anoma Gamage’s (UNP politicians who have done a pretty good job in alleviating poverty in the east through their many private enterprises) Sevenagala, who say that the utter loss making operation has now become the most profitable sugar company with thousands of jobs created, have been identified to be taken over (assume by 7 November or as soon as the now SC cleared Bill becomes an Act of Parliament) when recent Brown’s deal (LOLC, Ajith Devasurendra, Kapila Jayawardene) Hingurana which was closed down for some 16 years and continue to be in trouble has been spared? What is the logic?

5. If we continue down this path Sri Lanka will lose all our credibility with decent foreign (and local) investors. In fact where are these investors two-and-a-half years on? Where are the big names? Or even small names? Papers say even the Shangri La (the sole investor!) has run in to trouble. The dubious CATIC had to be cancelled. There was no way to proceed with it as I had pointed out that the government was trying to sell the land on an invalid agreement. It was a sham. Expropriation like the current case will be a deadly blow to foreign investment. I wonder sometimes if that is actually what is desired. Why? Because that opens the way for Chinese loan-funded projects with absolutely no transparency; roads, bridges, ports, airports...

6. We have to stop this Bill from becoming an Act of Parliament. It can be Hotel Developers and Sevenagala Sugar today; but who is to say it cannot be any other private company tomorrow. The mere availing oneself to BOI tax breaks qualifies a company to be expropriated by the State (UDA?)

7. The State has crossed the line with this Bill. Who is to say that tomorrow the State can’t bring in a Bill to take over your house and mine? Just like they are doing with the poor man’s dwelling with no respect for the law?  When I got up and asked the Government if they even knew the existence of the ‘National Policy on Involuntary Resettlement,’ the answer was only dropped jaws! I think the time has come for every citizen to stand up and say this cannot be done. This is a fundamental violation of our rights.

8. I will speak on it in Parliament when it comes up for debate but a citizen/civil society agitation must begin today. What will the media do to support the good fight?