CATIC conundrums

Friday, 15 July 2011 00:01 - - {{hitsCtrl.values.hits}}

THE fight for transparency in Sri Lanka is becoming more crucial as the deals mount. For the past few weeks, many stakeholders have been calling for the Government to declare details pertaining to the Shangri-La investment and this was complied with after much lobbying. However, the finger has now been pointed to the sale of 10 acres of land to China Aviation Technology Import Export Corporation (CATIC), adjoining the Shangri-La land.

These 20 acres lie between former Prime Minister S.W.R.D. Bandaranaike’s statue on Galle Face and the Taj Samudra hotel. Ten acres have been sold to Shangri-La while the remainder is to be purchased by CATIC. However, the Opposition insists that there are several unethical and dubious dealings in this venture.

For one thing, the contract has stated that funds of US$ 136 million must be transferred by 21 April 2011, but in documents tabled in Parliament by Deputy Economic Minister Lakshman Yapa Abeywardene, the amount that was paid on 25 April was only US$ 54 million. The question as to when these funds will be transferred and if so where they are and how they will be used remains to be seen.

Another aspect is that the agreement signed by the Finance Ministry and CATIC clearly states that if the full amount is not paid by 21 April, then the transaction is invalid. The UNP has questioned as to how this transaction can take place when the agreement is no longer binding. They allege that the Government is trying to hide the CATIC transaction under the legitimacy of the Shangri-La deal.

The fact that Sri Lanka will need investment from foreign companies cannot be denied and that is the whole reason behind the drive for increased foreign direct investment.Therefore there is little point in the Government trying to deny privatisation for it is happening and necessary for development.

Selling off land to foreigners is a sensitive issue that needs to be handled with much care. The fact that former governments sold State assets for a song as alleged by the present establishment is not reason enough for being excused for their own oversights. If anything, that is all the more reason to ensure that public property and monies are protected for the good of the people.

To achieve this goal, transparency must be actively promoted and Members of Parliament have to be aware of the responsibilities shouldered by them. Debates should be detailed and reported by the mainstream media so that there is a widespread discussion, weighing out the pros and cons of the transaction. Otherwise prime land, such as the Galle Face acreage, will be sold off to companies, denying access to normal people. In an increasingly urbanising region, areas such as park land should be demarcated for the people and not all land sold for Government benefit.

Revenue that comes from these transactions must also be used for the sustainable economic growth for the entire population and not funnelled into over-priced State buildings that are of scant use to the general public. How money from public assets is spent must also be part of the discussion process in Parliament and outside.