Cabraal opens up about Commonwealth Games bid

Former Central Bank Governor Ajith Nivard Cabraal recently spoke out over allegations of corruption linked to the Government’s unsuccessful bid for the 2018 Commonwealth Games.

The following is his full statement.

My attention has been drawn to certain media reports according to which there has been an alleged misappropriation of funds in relation to the Government bid to host the Commonwealth Games 2018 in Hambantota. (The Bid). As a result, several persons had contacted me to obtain clarification and therefore I decided to provide this statement. The basic facts are as follows: 

nThe Cabinet of Ministers granted approval to establish an Organising Committee, co-chaired by the Minister of Sports, Mahindananda Aluthgamage, and the Governor of the Central Bank, Ajith Nivard Cabraal, to facilitate and support the decision-making process in relation to the above stated bid. The Cabinet also granted approval to incorporate a limited liability company, namely CWG Hambantota 2018 Ltd., owned by the Government and chaired by the Secretary to the Ministry of Sports to inter alia, “prepare the Bid document and everything incidental to the bid process of the Commonwealth Games 2018 Hambantota” and “raise funds, promote, bid for, advertise, organise and conduct sporting events in Sri Lanka.” 

nAs may be envisaged, the Bid involved a massive quantum of activities. This included: (a)the preparation of a comprehensive and complete Bid document; (b)obtaining the services of internationally renowned Bid Consultants; (c) dealing with the Evaluation Commission and other high-ranking officials of the Commonwealth Games Federation; (d) liaising with a large number of inward missions of overseas Commonwealth Games Associations; (e)promoting Hambantota’s Bid candidature through numerous outward missions; (f) preparing architectural, engineering, transport, environmental and other plans, as well as scale models of the proposed Games city; (g) developing internationally acceptable logistical plans for the Games; (h) participating at numerous media briefings, the Bid launch and the final Bid election; (i) operating a fully-fledged local office with the required administrative staff; (j) arranging local publicity and awareness programmes; and (k) carrying out a massive international promotional exercise to promote Sri Lanka and Hambantota. 

nIn order to successfully carry out the above challenging operations, the Organising Committee comprised of the following high-ranking persons: Hon. Dilan Perera MP (then Minister of Foreign Employment and Welfare, and now State Minister of Highways), Hon. Namal Rajapaksa MP, many Ministry Secretaries, Chief of Defence Staff, Commanders of the Tri-Forces, Inspector General of Police, Representatives from the National Olympic Committee and several sports bodies, Chairmen of several Government institutions, Chairmen and Managing Directors of several top private sector establishments and other leading professionals. As would be expected they served voluntarily and tirelessly to assist, co-ordinate and implement the multifaceted tasks involved in the Bid. 

nIn the meantime, it would also be noted that CWG Hambantota 2018 (Pvt) Ltd. was chaired by one of the most senior and respected civil servants of our country, then Secretary to the Ministry of Sports, Udaya Seneviratne (who today serves as the Secretary to the Ministry of Mahaweli Development and Environment where the Minister is President Maithripala Sirisena). Further, the Company’s Board of Directors comprised of top senior public officials. Together, they effectively discharged the important role assigned to the company to the satisfaction and acceptance of all concerned stakeholders. 

nOn the financial front, proper books of accounts and records were maintained by the Company and the financial statements of the Company were audited by KPMG, Chartered Accountants. According to those financial statements, the Company had received a net sum of Rs. 71,476,792 as Government Grants and a sum of Rs. 586,636,115 as Direct Donations from the Private Sector. In addition, the Company had also earned Rs. 129,134 as interest income, while all payments amounting to Rs. 658,175,150 had been duly accounted for and audited. In fact, in response to a question raised in Parliament, the Chairman, CEO and Director (Finance) of CWG Hambantota (Pvt) Ltd. had jointly confirmed to the present Hon. Minister of Sports on 11 February 2016 that all expenses of the Company had been incurred on activities indicated in the Company’s Articles of Association; all transactions were audited by KPMG; and no instance of misuse of any monies had been raised in the audit report.

nWhile it would be acknowledged that the Bid of Hambantota, Sri Lanka which competed against Gold Coast, Australia was lost in the final vote at 42 votes for Gold Coast and 27 votes for Hambantota, it would be readily appreciated by many that Sri Lanka received a massive quantum of favourable global publicity as a result of this Bid. Further, the Bid helped to vigorously “re-brand” emerging Sri Lanka in the aftermath of the debilitating war of 30 years, at a comparatively modest cost to the Government of Sri Lanka.  

Notwithstanding the above indisputable facts, a complaint had been made that“alleged financial irregularities at the CWG Hambantota 2018 (Pvt) Ltd” had taken place. That complaint has probably prompted the FCID inquiry, with which I have cooperated to the best of my ability.