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Funds to be invested in economic infrastructure:
Former PERC Chairman on $ 500m bond issue
FORMER Chairman Public Enterprise Reform Commission (PERC) Nihal Sri
Ameresekere has written to the Leader of the Opposition and Leader, UNP,
Ranil Wickremesinghe, M.P., on the ‘US $ 500 million Bond Issue by the
Government.’Following is the text of this letter.
I write with reference to the apprehensions you have publicly
articulated on the undesirability of the Government to borrow such a
large amount of US $ 500 million, as foreign commercial loan.
As to whether such foreign commercial borrowing, initially speculated
for a 5-year tenure, now for a 10-year tenure, is to be invested in
economic infrastructure, as held out, which generally would have
‘pay-back’ periods varying between 20 to 40 years, and not 10-years, or
whether such borrowing is to re-pay foreign debts deferred to be payable
during 2007, consequent to the ‘moratorium’ for the 2-years 2005 and
2006, afforded after the devastating Tsunami of December 2004, no doubt,
are very pertinens issues.
Your concerns and apprehensions have been publicly pronounced, giving
‘leadership’ to raise a ‘public outcry’, even addressing a letter dated
24.8.2007 to J.P. Morgan Chase, USA, the speculated issuer of the
Government Bond for US $ 500 million.
What shockingly amazes me, is that you chose, for reasons best known
to you, not to so act, when I, as a citizen, was compelled to institute
a public interest litigation, to prevent a ‘large scale of foreign
funds’ from being ‘deviously siphoned out of the country’, under
Government Guarantees, which the Supreme Court, upholding my action,
prevented.
Your party’s influential and high profile K.N. Choksy P.C., M.P., a
Defendant in my action, endeavoured to have such payment somehow made,
not only giving writings in that regard, but also even futilely
attempting to have my public interest litigation dismissed, asserting in
Court, as a Defendant, that as a citizen of this country, I had no right
to bring such an action, to prevent such payment.
Though the alleged claims, regardless of my objections as a
professional Accountant, were endorsed, as claimed, by K.N. Choksy P.C.,
M.P., my sustained actions, amidst obstructions and pressures, achieved
for the Government in June 1995 a write-off amounting to Jap.
Yen 17,586 million, then equivalent to US $ 207 million. At an
average of 6 per cent p.a. interest this amounts to a value of US $ 417
million today, whilst in terms of the depreciating exchange rate, this
would tantamount to US $ 477 million today.
The Central Bank will confirm, that at the time I instituted
litigation, the country’s foreign reserves were in a perilous state,
which you too concurred with !
Notwithstanding representations then made to you, not only did you
choose to turn a ‘blind eye’ to the foregoing, well known in the public
domain, but you regardless, also went to subsequently startlingly
install Choksy as the Finance Minister of this country!
As a consequence, he presented an ‘all encompassing’ perverse ‘Tax
Amnesty’ of 2003 to Parliament, under the ‘guise’ of the Inland Revenue
(Special Provisions) Act No. 10 of 2003, with questionable amendments
effected at the Committee Stage, denying any opportunity, whatsoever,
for the public of this country to have been educated on such perverse
Act, or to have challenged the provisions thereof!
The Supreme Court on a Reference, held the same, not only to be
violative of the Constitution, but sadly indicted the same, as ‘having
defrauded public revenue causing extensive loss to the state’! Were you
also not a party to this?
In comparison to your current public stance and actions in relation
to a proposed commercial borrowing of US $ 500 million by the
Government, how is it that, you chose to be silent and not take any
action, whatsoever, on the foregoing, one of which is comparable and the
other far worse, but acted otherwise? |
