21 November, 2018

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Should Unsavoury Things Continue Unabated?

By Rusiripala Tennakoon –

Rusiripala Tennakoon

This story is about another alarming transaction that remains under cover.

While the sum involved is very high, as a questionable deal, the involvements extend beyond the realm of the misuse of public funds towards the unethical conduct of a leading local private sector commercial bank operating in Sri Lanka apparently acting in collusion.

The relevant facts as reported by a person who has made a written complaint to the IGP asking him to investigate into the matter are as follows:

The Company by the name Magampura Port Management has been incorporated in July, 2013 with the Sri Lanka Port Authority as the sole shareholder. Address of the registered office is given as 19 Chaitya Road Colombo 1. The first directors of the company as per the records with the Registrar of Companies have been, Shirani Wanniarchchi of 380/70 Saram Road, Colombo 7 and Dalath Upali Wickramasinghe De Zoysa of No. 99 Ellie Road, Colombo 15.

This company has obtained the rights under a license granted for that purpose to engage in oil bunkering business. During the early days the right to import oil was restricted to the CPC and LIOC.

MPMC has been granted credit facilities to conduct this business by this Bank associated with the deal.

Accordingly during the period between September and December 2014, the bank has provided facilities totaling up to US$ 24 Million for oil imports and bunkering business to MPMC.

The Sri Lanka Ports Authority has offered a corporate guarantee to secure this facility on a subsequent date after it was granted. MPMC has engaged in this business with the help of a private company which has acquired a small percentage of the shares of MPMC and this private company has nominated an employee of their company to be appointed as an Adviser/Consultant of MPMC to facilitate their role in the oil import and bunkering business.

During the transaction MPMC has paid between US$220 to 225 per metric ton when the prevailing oil prices averaged US$ 200 per metric ton. Approximately about 86,000 metric tons of oil (3 different categories) have been purchased through a private company by MPMC out of which 17,500 metric tons remained as unsold balance. This quantity was sold at half price very recently on approval granted.

Bank credit facility to the MPMC was only for a period of 3 months but MPMC has Settled as capital only a sum of US$ 5.1 Million to date, thus leaving an outstanding overdue amount of US$ 19.98 Million in the books of the private bank.

It is now reported that MPMC is awaiting liquidation and if this happens the bank will have to bear a loss of nearly US$ 19 Million.

However, the CCEM (Cabinet Committee on Economic Management) has taken up this matter on 09/11/2016 due to the involvement of public funds and have ruled that MPMC is not legally bound to repay the loan to the bank and the cabinet has granted its concurrence to this decision on 22/11/2016.

As per this decision the SLPA too will not be liable to effect any payment on behalf of MPMC and the guarantee they offered as security lapses. The loan remains as unpaid in the books of the bank for more than 3 years now.

In the meantime around 26th July, 2017, the bank in question, closed a rights issue of shares announced by them with the following noteworthy share issues to Public Bodies at the rate of Rs. 220/- per share:

EPF – Rs. 1,202,443,660/-

SLIC – Rs. 1,799,154,720/-

NSB – Rs.    353,970,760/-

ETF – Rs.      64,578,140/-

Total – Rs. 3,420,147,280/-

The total outstanding unsettled by MPMC to the bank is around US$ 19 Million. At current rate of foreign exchange US$ 19 Million is approximately equal to Rs. 3,040,000,000/- at Rs. 160/- per US$. 

Is this transaction something that warrants some kind of high level investigation as the intervening complainant thought. Or, are we to accept the fact that the happenings under the past regime continue unabated during the current regime too? OR are those acts receiving the patronage and cover-up by the Yahapalana authorities?

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Latest comments

  • 4
    3

    Many thanks Mr. Rusiripala, pl. keep up your great work! The culture of Immunity and Impunity for Financial Crime goes from strength to strength now, as Bondscam Ranil thinks it is his and his corrupt cronies “Parliamentary privilege” to loot the people of Lanka, and manipulate commissions to protect corrupt politicians and Lanka’s FAKE DEMOCRACY.
    The nexus between Political corruption, big business corruption and foreign Fake Aid for Trade, debt-trap development projects, i.e. money politics is the root cause of Lanka’s Debt trap, and growing economic inequality..

    But US funded CIABOC and Bribery Commission is a joke and Corruption racket – that is also protecting US Citizen Gota from the Avant Guard Investigation by undermining its own investigation, while Bondscam Ranil has corrupted the Police Commission and Bribery Commission (CIABOC).

    • 1
      2

      Dude Don, IMF and Fake Aid from Washington DC provider Millennium Challenge Corp. (MCC) that advised Ranil and paid Sujiva Senasinghe to scam the CB, are now blaming China for Lanka’s Fake Aid , corruption racket, Debt trap.
      Meanwhile IMF is crashing the rupee, and Potus Trump’s MCC is selling white elephant General Electric train engines for massive amounts of $$$ to corrupt Transport Ministry.
      IMF/MCC blaming China for Lanka’s Debt trap is “Pot calling Kettle black”!.
      IMF has competition from China in its Debt trap game these days!
      After all, it is IMF and NOT China that is responsible for Debt traps in most of the world — in Greece and Argentina etc. to grow the IMF “Bailout Business”!

      • 6
        0

        “It’s like the story of the donkey went do the dog’s work. Man, when the Sri Lankan’s would ever learn a lesson.”

        Mr Silva,

        Without resorting to partisan claptrap you hit the nail on the head.

        Most other comments are just partisan bunkum …………… if they were equally voracious in their criticisms when the Rajapakses were setting up the country for unprecedented looting and corruption ……….then they are true patriots

        Partisan-patriots we have many …….. it’s the true patriots we lack. :))

        Ah! Lanka …….. a country like no other!

    • 1
      0

      Beautifully presented with facts and figures. What next? Death Penalty?

  • 3
    1

    The good Minister Mahinda Samarasinghe who is in league with SL stock market pump and dump boys named in the Panama Papers leaks, (the investigation of which has been buried despite UK’s and US govt. promise to provide (fake) “corruption experts to Central Bank to investigate those named in Panama Papers), would be able to enlighten us on all this transaction too!!!
    Capital Trust indeed!

    • 4
      0

      It’s not very clear who is being accused of doing what by RT.
      Is the private bank faulted for losing money? I think Commercial Bank alone made 24 billion last year, so that’s no big deal.
      In the meantime, as usual Mr. Rusiri has coyly avoided telling us who built this harbour which ships don’t visit (which is why you can’t sell fuel to them!).

  • 3
    1

    This clearly shows the law and order situation in the country.

    MPMC is a 100% owned company of SLPA and since the company is new and is unable to borrow on its own strength, the parent SLPA has issued a bank guarantee to the private bank. The bank on the strength of SLPA granted credit to MPMC and now SLPA is refusing to pay !!!

    What a bloody country? Shipping Minister and SLPA chairman must resign and should be taken to the cleaners for refusing to settle a genuine debt. Whether the funds were used for the right purpose or whether the said transaction was commercially viable is irrelevant since SLPA has issued a guarantee and the current board cannot walk away from its obligations.

    If the previous board has acted improperly they should be booked as well but a private bank cannot be held hostage. The whole system would crash if govt officials behave in this manner.

    Yahapalanaya at its best !!

    • 1
      2

      Dear Nimal
      You are spot on
      I am so happy I was able to state something so easily and clearly grasped by you
      Thank you for the valuable contribution
      Rusiri

      • 2
        0

        Dear R.T.
        This falls within Rajapaksa or Yahapalana period, could you clarify a bit. Somewhat perplexing.
        Soma

        • 0
          0

          Soma
          Both
          Equally bad
          Rajapakse period political pressure
          Yahapalanaya era outrageous
          Exploitation of captive funds
          TT

          • 1
            0

            Mr.T
            I am sure this bunkering company is connected to the Rajapaksas. That’s why SLPA gave them a guarantee.
            Why investigate the Private Bank? It is not a crime to lose your own money.

    • 1
      1

      Fake News and fake data is the name of the global inequality game in Washington by IMF, World Bank and MCC.
      A recent article in Third World Quarterly, a highly respected journal states:
      The dominant narrative of global income inequality is one of convergence. Recent high-profile publications by Branko Milanovic and the World Bank claim that the global Gini coefficient has declined since 1988, and that inter-country inequality has declined since 1960. But the convergence narrative relies on a misleading presentation of the data. It obscures the fact that convergence is driven mostly by China; it fails to acknowledge rising absolute inequality; and it ignores divergence between geopolitical regions. This paper suggests alternative measures that bring geopolitics back in by looking at the gap between the core and periphery of the world system. From this perspective, global inequality has tripled since 1960.

  • 1
    0

    Mr. Tennekon: What is the truth that US-AID provided funds for CIABOC establishment and avant Guard case won’t be solved beczuse that is what the financier of CIABOC required. Ranil’s only Mantra is “I am good:, I know all those things”. In some cases he says “he is not the president”. So, whether it is Rajapakses or Yahapalanaya it is a speedy race to bankrupt the country and sell the assets. did you here Rupee value is going down when it really should be Rs 100 per dollar. In your case also one Wickramsinnghe is involved. I heard , probably the woman director, sold a big parcel of that private bank to a foreigner. I don’t know what rules governs the sri lankan abanks. A director who has lot of shares in that bank can ask the bank management to do things ina certain way that helps his personal interests.
    right now, Ever politician group (225 ministers say that it is elelcion time), civil society are all talking elelctions and preparing. Mnagala Samaraweera had said money he got from MCC, he di dnot spend everything and he has some for his use. Why USAID has to help Sathosa. what is going on ? Every president upto now has signed for NArcotic consignments receiving through ports.

    • 3
      0

      Jim:
      How did US citizen Gota come up with the name “Avant Guard” for his private security company?
      You bet, with a little help from his US Deep State handlers who have lots of shit on him for War and Hate Crimes in Mother Lanka!!

      Avant Guard is a global surveillance and security operation head quatered in Utah USA and Sussex UK with franchises in Nigeria, Ukraine, Israel etc.
      Where did Marapona and Wijedasa Rajapakse who handled the legal work of AG go on Holiday with Senadipati? Gota’s city of Angels — Los Angeles..
      Long live Miracle of Modayas!

  • 6
    0

    It’s like the story of the donkey went do the dog’s work. Man, when the Sri Lankan’s would ever learn a lesson. Marine bunkering is highly spaciallized business, and it should be handled by the pros, who have the access to the muscles and means of it. Rather than these armatures’ handling it, they should handed it over to the big boys like Shell, BP, Aramco, Adnoc etc, or joint with them. This would have brought in huge foriegn exchange to the country, and given high paying jobs to the people. Singapore is the number one bunkering port in the planet, it’s last year’s volume was 50.6 millions ton, then Rotterdam, Houston, Fujairah, in that order. Singapore has four maga rifineries owned by the giant oil majors like Shell Exxon, BP etc, their government is not into this business, and by letting these companies’ to operate, they are benefiting immensely, and crudes oil for them from the Middle East go passing SL, and same main East West shipping route too. They lack land and man power but SL has enough and more of them with excellent ports – Hambantota and Trincomalee to put up many rifineries. I’ve seen it with my own eyes, even in the nineties, Fujairah was a sleepy fishing place but now it’s a thriving bunkering port with tankers and other vessels all over. It’s a pitty , that Sri Lankan’s have a fat sollown heads, and don’t know how to derive the best for the country by utilising it’s advantageous location. All bloody humbug politicians, officials, unions and professional talk and do only bloody nonsense, and take the country to the cleaners for good. Period.

  • 1
    0

    It’s like the story of the donkey went do the dog’s work. Man, when the Sri Lankan’s would ever learn a lesson. Marine bunkering is highly spaciallized business, and it should be handled by the pros, who have the access to the muscles and means of it. Rather than these armatures’ handling it, they should handed it over to the big boys like Shell, BP, Aramco, Adnoc etc, or joint with them. This would have brought in huge foriegn exchange to the country, and given high paying jobs to the people. Singapore is the number one bunkering port in the planet, it’s last year’s volume was 50.6 millions ton, then Rotterdam, Houston, Fujairah, in that order. Singapore has four maga rifineries owned by the giant oil majors like Shell Exxon, BP etc, their government is not into this business, and by letting these companies’ to operate, they are benefiting immensely, and crudes oil for them from the Middle East go passing SL, and same main East West shipping route too. They lack land and man power but SL has enough and more of them with excellent ports – Hambantota and Trincomalee to put up many rifineries. I’ve seen it with my own eyes, even in the nineties, Fujairah was a sleepy fishing place but now it’s a thriving bunkering port with tankers and other vessels all over. It’s a pitty , that Sri Lankan’s have a fat swollen heads, and don’t know how to derive the best for the country by utilising it’s advantageous location. All bloody humbug politicians, officials, unions and professional talk and do only bloody nonsense, and take the country to the cleaners for good. Period.

  • 2
    0

    While Sri lankan politicians are trying their best to tighten their grip in the political system, and letting corruptions, mostly by their goons, relatives, henchmen etc., I heard china understands what is going on. Modi also had similar problems as soon as he came. His Rs 50 change was a disaster because people with him gave the message and theives bought lands in GOVA with those money. India was going down but now it is recoveing. INdia is a fast developong country, industrial out put is very high. Yet, Modi said, recently, he is going to double the Farmer income. Sri lanka has lot of unemployed youth from every educational level. Sri lanka has foreigners of skill level category for employment. Some one wanted, the govt is also saying we need foreign skilled labours in sri lanka. they do not want to train those unemployed graduates because the ministers say we do not have money. that is who every provident fund including the MAHAPOLA LOTTERY is money losing or lost huge amounts. That is why Sajith Pemadasa is threatening to quit. Political analysts for their money are talking about Ranil supported by Maithripala and Rajapkses. Those are the only two groups.

  • 2
    0

    How about FITCH Rating says That Sri lankan banks need Moree money to stay in business. BOC lost it’s profits by 50%. NSB, PEOPLES Bank, PRovident Funds are empty. Now the previate banks. I heard there is Scheme in the world tha tmakes countreis bankrupt, and there are economic hitmen function outside their territory because then are not answerable to thee law. Read foreign articles. Everything happens in the open. Maithriapala is a Weak PResident, Rajapkses are Hyenas looking for more blood anf flesh. Ranil says I am good, I know that too. I am not the president and If I am gone you won’t find that. So, they are playing achess game for the next elelction and they won’t allow anyone else to come. they threatened them. IT is all looks vry well planned.

  • 2
    0

    Floating company/companies for purposes of defrauding is very common. The case outlined by Rusiripala Tennakoon appears to be one.
    Almost always, the lender (in this case a private commercial bank), the guarantor (in this case SLPA) and the company directors work hand in hand and do not allow any avenue to pursue, in case the company goes belly up. It is even possible that SLPA may eventually pay out.
    We foot the bill!
    Rusiripala Tennakoon: “Should Unsavoury Things Continue Unabated?”
    This appears to be a version of corruption/nepotism/impunity.

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