Explanation sought from new Defence Secretary

• President Sirisena seeks explanation after Basnayake defends Gota’s BoC account
• Cabinet approval does not nullify Financial Regulations: Cabinet Spokesman
• Govt. decides to prevent public officials from making media statements without approval Military Spokesman removed, temporary replacement announced

By Dharisha Bastians Defence Secretary B.M.U.D. Basnayake is reportedly in hot water after he attempted to verify a claim made by his predecessor that a private account listed under his office legitimately held public monies to the tune of Rs. 7.5 billion. President Maithripala Sirisena called for an explanation from the civil service officer after he verified Gotabaya Rajapaksa’s claim that the account was above board and belonged to the Ministry of Defence, Cabinet Spokesman and Minister Rajitha Senaratne said. Finance Minister Ravi Karunanayake exposed details of the account, situated at the Taprobane Branch of the Bank of Ceylon, in the name of the Defence Secretary. Under Minister Karunanayake’s instructions, the money in the account was transferred to the Treasury. Former Defence Secretary Rajapaksa refuted claims that the transaction was improper, saying it was an Operational Account dedicated for the use of financing the construction of the Army Headquarters building in Pelawatta. The money was revenue from the sale of land at Galle Face where the Army was previously located, the ex-official said. Rajapaksa alleged that the account was created with the approval of the Cabinet with the revenue from the sale of land at Galle Face, Colombo where the Army Headquarters was previously located. Defence Secretary Basnayake upheld this argument and denied that there was anything illegal about the account. Minister Senaratne slammed the public official, saying it appeared government servants had no knowledge of the country’s financial regulations. According to the Financial Regulations, all monies collected from such a sale must go into the Consolidated Fund, maintained by the Treasury and disbursed to the relevant State institution from there. “The regulations governing state monetary policy cannot be altered at whim by Cabinet approval,” Minister Senaratne charged at the Cabinet briefing. “Nobody can maintain accounts in the name of the Defence Secretary or even the Ministry of Defence,” he charged. “Every cent has to be deposited into the Consolidated Fund,” he said. The controversy has resulted in the removal of Army Spokesman Brigadier Ruwan Wanigasooriya, who also defended the former Defence Secretary’s position and insisted there was nothing irregular about the account. Brigadier Wanigasooriya claimed that according to the “policies of the new Government” the monies had been transferred to the Treasury. Minister Senaratne charged that the money had been transferred because the new Government had decreed it, in keeping with the laws governing public money. Yesterday, Brigadier Jayanath Jayaweera was appointed Army Spokesman, while Brigadier Wanigasooriya was transferred to Army Headquarters. The appointment is likely to be temporary, Government sources said. Minister Senaratne said the Cabinet had decided to do away with Military Spokesmen for the tri-forces and make do with a Police Spokesman. “We don’t need a military spokesman, there is no war in this country anymore,” Minister Senaratne told his first Cabinet briefing yesterday. As a result of the fracas, the Cabinet has also decided to ban public officials from releasing statements to the media without prior approval. “This is stipulated in the Establishment Code, governing the conduct of public officials,” Senaratne said. However, fears have arisen that the blanket ban could discourage transparency and whistle-blowing.