Parliament

Bribery and corruption triggers absorbing debate

Sandasen MARASINGHE and Disna MUDALIGE

Deputy Speaker Chandima Weerakkody presided when Parliament met at 1.00 pm yesterday. After the presentation of papers and oral questions the House took up the determination under the Commission to Investigate Allegations of Bribery or Corruption Act for debate.

International Monetary Cooperation Senior Minister Dr Sarath Amunugama: I present the determination under the Commission to Investigate Allegations of Bribery or Corruption Act for the approval of the House.

Accordingly, the fuel allowances of the chairman and members of the Commission to Investigate Allegations of Bribery and Corruption be increased with effect from May 1, 2012, as 225 litres of petrol or diesel monthly for the chairman and 170 litres for the members. The allowance would be made according to prevailing market rates.

Deputy Chairman of Committees Chandrakumar Murugesu takes the Chair

As seniors of the Public Accounts Committee, senior minister DEW Gunasekara and I have much experience on this subject. The state sector of the country has widened radically. There is state capitalism today. This is not limited to Sri Lanka but common to many other countries. We have to face the challenges which emerge under state capitalism.

Sri Lanka has the potential to expand the state administration sector. There should be a good coordination between administrators and auditors. This link is crucial.

I believe the necessary facilities for the smooth functioning of the commission must be approved putting aside party differences.

Opposition Leader Ranil Wickremesinghe: I question whether the inquiries of the Bribery and Corruption Commission are being carried out effectively. No action has been taken for malpractices reported during recent times. The members of the Commission are inactive and dormant.

Why should we facilitate fuel allowances to them if they are not doing any work? Are these members sleeping? For example, lands in the coastal belt of the Eastern Province have been sold. No inquiry has been conducted.

Environment Minister Anura Priyadarshana Yapa: The Commission to Investigate Allegations of Bribery or Corruption Act was established in 1994. The Commission inquires about 2,500 complaints annually.

Offenders have been brought to book and some arrested. Bribery and corruption charges are made against various parties and individuals. However such allegations must be proved.

A large number of complaints are made to the commission, and every such complaint is looked into. The public can easily point out such cases. However, all complaints may not be true and correct.

The procedure adopted by former regimes of the Opposition on bribery and corruption is questionable. The present regime is very much concerned over bribery and corruption complaints, and we have always taken necessary action against them.

If the complaints made are incorrect it affects the parties concerned. Therefore false allegations must not be made against the innocent.

M A Sumanthiran (TNA): The Minister who spoke before me said, under the UNP regime government owned businesses and enterprises were sold to friends and acquaintances of the state.

This allegation is true. But what happens today is, they are being sold not to friends and acquaintances, but to the family members and relations. The Bribery and Corruption Commission is not doing its job properly.

National Languages and Social Integration Minister Vasudeva Nanayakkara: How to make this institute independent when members are appointed to it by a committee formed by Parliament?

However when this institution was made independent fully, they at least are not even answerable to Parliament. Such a situation was created under the 17th Amendment to the Constitution.

Reducing the prices of commodities is not bribing such as, giving sarees to voters during election period. Sometime back such a group was arrested for doing so.

The Bribery Commission investigates complaints made to them. There is a limited staff. One year 75 percent of their charges proved fruitful and suspects were convicted.

We request you to make complaints to the Bribery Commission without making baseless allegations. Then the institution can investigate.

A H M Azwer takes the Chair

Lakshman Kiriella (UNP): We don't stand against giving allowances to high ranking officials in the Commission to Investigate Allegations of Bribery or Corruption. However there should be more results with the increasing of their privileges.

Some police officers in the Bribery Commission said their allowances have been reduced.

During the period of Prime Minister SWRD Bandaranaike, 3 ministers were found guilty of bribing by the Thalagodapitiya Commission.

Human Resources Development Minister DEW Gunasekara: This suggestion is simple, there is no need to debate. The Bribery Commission is a significant institute in the country. They should be provided with facilities.

The detection of bribery is easy but the most difficult is to detect corruption. Bribery and corruption is a global phenomenon.

The population of the country is 20 million

There are 20 million phones in the country. Four or five institutions handle this sector. At least Rs 500 is drawn from each phone to these companies and a large amount of money flows out of the country.

Corruption in using the technology cannot be detected as the officers dealing with them have no knowledge. So human resource is an issue faced by the Bribery Commission. We should have skilled officers for the Bribery Commission to fight against bribery and corruption.

Eran Wickramaratne (UNP): The Bribery Commission is no more independent. This situation was created with changes introduced in 2010 to the institution.

There are certain loopholes in the Commission to Investigate allegations of Bribery or Corruption Act. One such loophole is that one should make a written complaint to it for inquiry. But people sometimes are afraid to make written complaints.

Deputy Speaker Chandima Weerakkody takes the Chair.

Chandrakumar Murugesu (UPFA): After the war, people's lives have returned to normalcy in the North and East.

However, before people reap the real benefits of post war development it is unfortunate that bribery and corruption has popped up. For example, when construction of roads, small, medium and large scale irrigation systems, renovation of buildings and such other projects are carried out, the government should supervise how the funds are managed and whether the outcomes are up to the required standard. Otherwise the large sum of money invested can be wasted. Sumanthiran MP said some politicians bribe the voters when elections approach. Giving financial and material help to people to win hearts is not a new thing. Maybe, Sumanthiran MP need not do so as he is appointed from the National List.

However, it is normal under the present political system. It is not a very good trend and should be changed.

Gayantha Karunatilleke (UNP): We have to take every possible effort to hinder the room for bribery and corruption. It is essential for the welfare of the country.

Most complaints on bribery and corruption were lodged against state officials. It is said the Commission has inquired into the complaints and arrested several offenders. However, the law does not operate for higher state officials.

Sujeewa Serasinghe (UNP): The main disease in developing countries is bribery and corruption. What the government rightly implemented in the recent time is the ending of war.

However, the government is presently engaged in spreading bribery and corruption. As there is no smoke without fire, there will be no complaints without a reason.

Therefore, it is the duty of the government to probe into them immediately. We do not reject that cases of bribery and corruption had been levelled against the UNP too during its past regimes. Action should be taken against the people involved in such cases despite political affiliations.

A H M Azwer (UPFA): Today is an important day, because we strengthen the hands of the Bribery and Corruption Commission. The whole nation must be grateful for the President and the Defence Secretary for defeating the brutal terrorism. Some sections are attempting to belittle the achievements and defame them.

One opposition member said that bringing down the prices of essential items is a bribe given to the people. This is a very foolish statement and very hilarious.

Sunil Handunnetti (DNA): The aim of the determination today is to enhance the efficiency of the Bribery and Corruption Commission. Not only fuel, I believe even oxygen must be given to this Commission. The supply of fuel cannot raise the efficiency of the Commission.

Even the President must be accountable to the Commission as he is holding several ministerial portfolios. The commission must inquire into complaints made against ministers and deputy ministers as well.

Social Services Minister Felix Perera:

If my memory is correct, I think the Commission had taken action against even ministers during the past years.

Social Services Minister Feliex Perera: Fifty two suspects in cases filed by the Bribery Commission have been convicted. Most of them are police officers. One reason for this may be that the Police is a department. The other reason may be their wages are not adequate. Sri Lanka ranks 91st in the list of bribery.

After President Mahinda Rajapaksa and Defence Secretary Gotabhaya Rajapaksa ended the war, there is a troubled group engaged in the weapons trade. Their attempt is to condemn the country by saying there are more issues now in the country. So we have to be cautious and act responsibly.

The House was adjourned until 1 pm today.

Crop cultivation takes a big stride-Minister Fernando

There is tremendous improvement in the cultivation sector at present compared to the former UNP regime in 2002, Co-operatives and Internal Trade Minister Johnston Fernando said in Parliament yesterday.

The Minister said: "Production of almost all crops has increased, and growth is over 1000 percent for some crops.

"Production of soya beans was 3850 tons in 2011, as against 620 tons in 2002. Maize increased upto138,700 tons from 26,410 tons in 2002; red onions was 72,000 tons in 2011 whereas it was 35,330 tons in 2002. Big onion production increased to 81,000 tons in 2011.

The minister made these observations while responding to a question raised by UNP MP Ravi Karunanayake.

While responding to a supplementary question of MP Karunanayke, the minister challenged him to name a farmer who took poison to commit suicide during the present regime. He asked the MP not to direct false allegations against the state.

Greek Bond investments in order - Minister Amunugama

International Monetary Cooperation Senior Minister Sarath Amunugama yesterday said in Parliament that the Central Bank could earn a profit of Rs 430 billion through transactions made in the international market in the year 2011.

He said the profit earned from gold reserve trading was much higher than this profit.

Minister Amunugama was responding to a special statement made by Opposition Leader Ranil Wickremesinghe under Standing Order 23 (2).

Minister Amunugama said: "The investment in Greek bonds by the Central Bank was done in accordance with the Sri Lanka Monetary Board regulations.

"The Central Bank is the managing authority of foreign reserves. Approval was granted by the Sri Lanka Monetary Board for these investments.

"The losses that could have resulted were avoided and profit earned by these investments.

"The investments on Greek bonds were high profile investments. An agent named by the Greek government issued the bonds.

All bonds were issued by the Hellenic Republic Economic Ministry and Finance Public Debt Management Agency on behalf of the Government of Greece.

It is the official authority for issuing Government Bonds in Greece similar to the Central Bank of Sri Lanka in Sri Lankan Government Bonds.

"The euro is a major global currency supported by the strength of the European Union led by Germany and France.

"According to data by the Bank of International Settlements approximately 14 percent of global research are held in euro 2011. In the overall currency market the euro share is about 30 percent.

"All bonds were purchased on April 5,2011 and reached maturity in 2015.

"The Euro Zone took a turn for the worse several weeks after the investment was made; and following the volatility in mid July 2011, the Central Bank sold a part of Greece Bonds with a face value of euro 5 million at a loss of US $ 1.1 million.

"This measure was taken to mitigate the risk of the Greece investments losing further value due to subsequent developments in the Euro Zone.

"Subsequently when it was evident that the unfolding uncertainly was impacting on the euro bonds in general and Greece bonds in particular, it was decided to dispose of a further 10 million euro face value of Greek Bonds at a loss of 5.5 million US dollars in November 2011, thereby leaving only euro 15 million face value of Greece government bonds to be carried forward.

"Accordingly in all, the loss on Greek Bond investment in 2011 was US dollar 6.6 million, and such loss has been already taken into consideration in computing the profit for year 2011, amounting to US Dollar 430 million," the minister explained.

Opposition Leader Ranil Wickremesinghe made the special statement on the financial investment by the Central Bank in Greek Bonds.