The Sunday Leader Online - Spotlight Page 1 of 14 24th November 2002 Volume 9, Issue19 Home SPOTLIGHT News Politics A question of integrity Issues By Frederica Jansz Editorial The tenure of the United National Front (UNF) Spotlight government these last 11 months though dotted with a few successful forays has also been riddled with Sports controversy and misjudgment. Chief amongst the latter, is this government's apparent subjugation to former Foreign Business Minister, Lakshmanathan Kadirgamar. Review The government believed misguidedly that by showering Nutshell attention on Kadirgamar and keeping him happy with all the perks of high ministerial office despite being an Interviews ordinary MP, he would persuade President Chandrika Kumaratunga to be more accommodative towards the Fashion government's peace initiative. Archives Last week Prime Minister Ranil Wickremesinghe received a resounding slap for his efforts politically, from the suave Kadirgamar who tore the UNF's peace process to shreds. The UNF government has allocated a sum of Rs. 10 million per annum to pay for security contingents both from the army and Ministerial Security Division to protect the life of the former Foreign Minister as well as provide with state funds 14 vehicles, six telephones and a gamut of other assets at Kadirgamar's disposal. Projecting himself as a man of the highest integrity and principles, Kadirgamar has on more than one occasion proved he is primarily a politician to whom objectives and principles play second fiddle. The infamous Tawakkal issue is a case in point. The sad saga of Sri Lanka's foremost diplomat Jayantha Dhanapala is yet another. Now questions have arisen whether Kadirgamar is misusing the security provided to him by the state. In a damning letter to Messers F. J. & G. de Saram, Mahinda Ellepola, a former close friend and associate of Kadirgamar as well as senior counsel for Aislaby Estates Limited has accused Kadirgamar of abuse of power, with regard to the misuse of security no less, as well as of unseemly conduct not expected from a gentleman. It is pertinent to note here that Kadirgamar's wife, Suganthi Kadirgamar is a senior partner at F. J. & G. de Saram. The matter came to a head following the Kadirgamars' purchase of a house at Bullers Lane for Rs. 58.5 million. The house at No. 36, Bullers Lane named 'Sweden Bank,' was owned by Aislaby Estates Limited and was previously occupied by the late Mark Bostock, managing director John Keells Holdings Limited. The house on September 28 this year was to have been purchased and paid for in full by the Kadirgamars. Instead, the former Foreign Minister paid an initial deposit of Rs. 10 million and paid another Rs. 26,500,000 only on October 25. The balance was paid on October 28, a month later. Ellepola handled the sale of this house on behalf of Aislaby Estates Limited, while F. J. & G. de http://www.thesundayleader.lk/20021124/spotlight.htm 11/24/02 The Sunday Leader Online - Spotlight Page 2 of 14 Saram dealt with the legal matters in relation to this purchase on behalf of the Kadirgamars. The house is being bought in the name of Suganthi Kadirgamar nee (Wijeysuriya). Chamari de Silva, an assistant at F. J. & G. de Saram, attested Deed No: 236 on October 28, 2002. Payments were made through bank cheques issued by Hatton National Bank on behalf of Lakshman Kadirgamar. When Kadirgamar delayed by one month to make full payment for this house, Ellepola on behalf of his client requested a sum of Rs. 240,625 as interest. This Kadirgamar had originally agreed to pay in the event of a delay. So charges Ellepola. Kadirgamar however flatly refused to pay this amount stating that it is unconscionable to seek the recovery of interest for one month. Instead, Kadirgamar in a misguided twist, offered to pay a token sum of Rs. 40,000 with a personal cheque as a recognition of the contribution made by the late Mark Bostock to commerce and sports in Sri Lanka. Ellepola refused to allow this payment advising Kadirgamar not to be patronising and that in any event Bostock had nothing to do with the property in question other than having occupied the same during his tenure as managing director, John Keells Holdings Ltd. Illegal transaction Ellepola instead suggested that Kadirgamar pay Rs. 40,625 to his client - while Ellepola personally agreed to pay the balance due Rs. 200,000 to his client as he states his professional integrity was at stake. Aislaby Estates Limited which was founded by the late Mark Bostock continues to belong to his two sisters, who agreed to deduct the balance Rs. 200,000 that was due from Kadirgamar from Ellepola's professional fee. Kadirgamar in the meantime had also suggested to Ellepola that the stated consideration or value of the house and property be placed at Rs. 40 million and not Rs. 58.5 million so he could thereby save a substantial amount on stamp duty. This suggestion too, Ellepola vetoed, asserting the transaction would then be deemed illegal and improper. This allegation in Ellepola's letter, Kadirgamar has not refuted in writing. Contacted by The Sunday Leader, Ellepola declined to comment on his letter, stating it was a professional communication. Ellepola further reiterates that after paying an initial deposit of Rs. 10 million, Kadirgamar had inquired if his books and bookshelves could be moved in together with his security staff. Ellepola had clearly stated that the state provides security for his person and not to look after a property he intends to purchase. He further cautioned him that the misuse of his security staff would constitute abuse of power. Despite this advice, Kadirgamar apart from going ahead and shifting his books and bookshelves to the house, also installed some of his security staff provided for by the state at this house. (We are producing in full Mahinda Ellepola's letter to F. J. & G. de Saram so there can be no allegations leveled against The Sunday Leader that we are distorting the contents of this damning missive.) More damning or shocking than this property transaction is the conduct of the UNF government as far as maintaining Lakshman Kadirgamar is concerned. Apart from continuing to provide an entire contingent of security personnel at state expense to guard the former Foreign Minister, the UNF has also allocated Rs. 10 million from the Treasury solely to maintain Kadirgamar, his security and other capital assets, for this year alone. The government in fact pays approximately Rs. 12,000 including batta, per soldier every month to guard the former Foreign Minister. Kadirgamar's present security of more than 20 soldiers are provided by the Sri Lanka Army with a separate contingent from the Ministerial Security Division. http://www.thesundayleader.lk/20021124/spotlight.htm 11/24/02 The Sunday Leader Online - Spotlight Page 3 of 14 Each time Kadirgamar travels he is preceded by an advance duty guard and a backup vehicle separate from those doing guard duty at the government owned residence at Wijerama Mawatha, Colombo 7, where he continues to reside at state expense. Despite the government having removed all road blocks in the city, a road block continues to be in place at Wijerama Mawatha as a protective security measure for Kadirgamar. According to Mahinda Ellepola the payment of Rs. 10 million for the house at Buller's Lane was also delivered to him by a security officer provided for by the state for his (Kadirgamar's) personal security. Kadirgamar also uses state security to travel to and from the Institute of Commercial Law Practice where he conducts a private legal practice. Doubtless, Kadirgamar faces a very real threat to his life given that as a Tamil he has both locally and internationally lobbied hard against the LTTE and should be given adequate security. However what is puzzling is why Kadirgamar is allowed to keep 14 vehicles, six telephones and a host of other material assets including his official residence - all at state expense. The government also foots the bill for the 14 vehicles in Kadirgamar's possession. These include three Mercedes Benz cars of 1998, two Nissan Primera cars of 1998, two bullet proof Mercedes Benz cars, two Mitsubishi Pajero jeeps of 1995, one Nissan vehicle of 1998, one double cab, one Bajaj of 1999 and two motorcycles. In addition, the state continues to pay for 11 navy drivers retained as security personnel for Kadirgamar and three other civilian drivers. This is in addition to nine telephones Kadirgamar stated he requires, of which six are paid for by the government. Two lines, 673353 and 682692 are paid for by the secretary general of parliament, another two lines, 689775 and 682691 are paid for by the Presidential Secretariat, while another two telephone lines, 676630 and 673867 are paid for by the Defence Ministry. Budgetary allocations A cabinet minister of the UNF government in contrast is allocated only two official telephones at his or her residence and two other official telephones at the ministry. The budgetary allocations to the People's Alliance stalwart earlier this year were divided into two components. Treasury officials said Rs. 5 million has been handed over to the Defence Ministry to spend on recurrent expenses of the former Foreign Minister and another Rs. 5 million for acquisition of capital assets. In the recent budget for the year 2003 the financial expenditure for Kadirgamar has been halved to Rs. 5 million - for recurrent expenses. There is no allocation for capital expenses. This Rs. 5 million provision which has been made in the new budgetary estimates will be passed on December 9 when the Defence Ministry votes are taken up.