C.Wijeyawickrema

Yesterday, I saw a news item on how the trio above is running the liberalizing economic plan in Sri Lanka. I received about a year ago an email detailing how R Paskaralingam ran the finance ministry in Sri Lanka under R Premadasa and ruined the country. After RP was murdered, Paskaralingam fled the country, the next day. Now he is back again and running the show from behind the scene. After the news item, I felt that I have a duty to release the e-mail I received for the good of Sri Lanka. Besides, it is like a research paper, with so many facts deserving further investigation.   

It looks like Paskaralingam is another Arjuna Mahendran but, operating carefully and with a cool head unlike the greedy Mahendran. There is no question that they maintain regular contacts sharing plans. My purpose in releasing this e-mail is to let people understand the contents of it. I have no reason to doubt the bona fide of the writer of this detailed research report on Paskaralingam. In fact, I will be e-mailing this report to Paskaralingam and his associates at the Ranil ministry. I have also attached a Sunday Times interview with Paskaralingam.

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Confidential Information

How Corruption Officially Institutionalise in Sri Lanka

The person who institutionalise corruption was none other than Mr. Paskaralingam.

This information About Paskaralingam and how he demolished the Sri Lankan Economy to help LTTE from 1978 till 1992 and now under this government is provided without any malice or prejudice towards Mr. Paskaralingam as he is a Tamil.

Mr. R. Paskaralingam was the former Secretary to Ministry of Housing & Construction appointed by late Mr. Premadasa due to some reasons, unknown to the writer. Later he assumed duties as Secretary to the Treasury when late Premadasa’s assumed duties as the President.

 (He is now working as the Main Adviser to the present government and Ministry of Finance and also as the Senior Adviser to the PM he directs the PM in a garden path as he decides the future of Sri Lanka’s Economy and Economic Planning, till recent changes.)

Paskaralingam after passing his CCS Examination in 1955 or around, appointed to the Ministry of Works, Post & Telecommunication as an Assistant Secretary on 15^th September 1956, the same day the writer joined the Ministry of Works Post and Telecommunication and posted to Public Works Department. He is a very clever person and can convince anyone to believe on his opinion as well as a very quick decision maker.

(A).  His career details

1. He worked as an Assistant Secretary to the then Ministry of Works, Post and Telecommunication and later with other Ministries for few years and got transferred to the Ministry of Education during UNP Governments of 1965 under Minister I.M.R.A. Irriyagolla, as an Additional Secretary.
2. When UNP came to power in 1977, then Prime Minster Premadasa got him appointed as the Secretary of the Ministry of Buildings, Housing and Construction and worked for President Premadasa after he became the President as the Treasury Secretary.
3. When he was the Secretary to the Ministry of Buildings, Housing and Construction, in 1977/8, he established the ICTAD and appointed late Mr. Munasinghe then D/Director of Buildings of the Building Department as the Chairman of the ICTAD. He selected Mr. Munasinghe, because he lacks foresight and decision-making ability and a very weak manager, the main purpose published at that time when establishing ICTAD was to bring the Construction Industry under some control, but the hidden agenda was to change the procurements methods the Industry used, to create corruption in a very rapid but subtle manner. (As you explained during your recent interview in Aretha Tharka”) Procurement has become the biggest hindrance to stop Corruption in the country. I say this with confidence as I was a Hard Dollar Procurement Expert with wide experience in Procurements of Major Contracts, who presented facts to former President Mahinda Rajapaksa to re-organised the NPA, but the Treasury Secretary, Dr. Jayasundera, close it down, but never change the source of corruption, the Guidelines)
4. During this time Paskaralingam, took full control of the ICTAD and appointed a committee comprising Five Engineers (all Tamils) and two UN specialists (from Tamil Nadu) to re-write the Conditions of Contracts PWD and other Departments used with permission from FIDIC, to change as a document belong to ICTAD and did some grave changes to the Condition of Contracts used till that time. [ I mentioned hear them as Tamils as Paskaralingam never trusted any Sinhala person if he is a very strong-minded person as his secret scheme was to take control of the country]

(B)    How he destroyed the Construction Industry and created large scale  

          Corruption

5. During this time he deliberately change the Condition of Contracts used at that time (FIDIC/ICE) Contract Condition by introducing certain changes and naming it as the ICTAD Condition of Contracts (replica of the FIDIC/ICE Conditions of Contract, by appointing a Committee comprising Five Tamil Engineers and two UN Consultants from Tamil Nadu, and change two very important Clauses of the original FIDIC Condition of Contract, Cl14 and Cl 60. Cl 14 change the authority of the Engineer by allowing the Supervisors to approve Construction Programmes give directions and orders, and Cl 60 to introduce an Advance payment of 20%+5%+5% = 30% as an advance payment for contractors, once they signed the contract after submitting a very simple bond without any responsibilities for the Contractor to complete the project.
6. This Advance payment changed the old system of Contractors getting Overdrafts from Banks with Department approval and payments directed to the Banks to settle the OD). This removal did demolished all the powers of the Engineer to take appropriate technical decisions. [This advance system is still in use in the Construction and Professional areas, but now it is reduced to 20% after many proposals to remove it completely by people with wide experience in Construction management]. The advance payment given to Contractor to be paid back by the contractor when the contract is 95% complete, forcing the Engineer to surrender his construction managing powers as the Administer to the contractor. This clause created wide discrepancies and corruption in the construction industry as well as among officials connected with the Construction and supply industry. This was the beginning of the destruction of the Construction Industry as well as the social fabric of this country. This Construction advance payment helped Mahinda Rajapaksa government to create our small island as a number one corrupted country.
7. Immediately after changing the Contract Conditions he introduced or established FIVE Construction companies belong to LTTE using them as Singapore base companies. The directors of all the five companies were Singapore citizens but they all were married to Sri Lankan Tamil women, and he managed to get all these companies either to tender for jobs or work as subcontractors for the International contractors. Hambantota Port Project first commissioned by Mrs. Chandrika Kumaratunge as the President and many other projects like UKPProject was abandoned on many occasions as these Singapore Base Contraction Companies provided very low tenders and then abandoned the contract. But Basil Rajapaksa by some means did do away with the normal procurement system to get the projects to go ahead) some of the Houses constructed by the National Housing Commission was given to these FIVE companies and thus with the Advance payment they bought weapons and other necessary equipment’s for the LTTE.
8. During this time he assembled a 20 Engineer team to supervise the Construction projects and only one Engineer among the 20 Engineers was a Sinhalese, his name was Eng. Weerarathne.
9. In my opinion and the LTTE informant who provided information about Paskaralingams activities, Paskaralingam is/was the Head of the LTTE and Vellupulle Prabakaran (VP) was the Military Commander of the LTTE. Paskaralingam did everything to get funds from the government to run the LTTE.
10. In 1992, Paskaralingam arranged a delegation to Australia (Sydney) headed by Munasinghe (Chairman of ICTAD) to look for a Chartered Quantity Surveyor with Engineering Experience to take up the Commercial division of the ICTAD and the Ministry of Building, Housing and Construction. They approached the University of Technology, Dean and requested information about Chartered Quantity Surveyor/ Engineer, they can recruit on WB terms for the ICTAD and the Ministry of Building Housing and Construction. They mentioned my name (Sri Lankan of Sinhala origin working for the University) as the only experienced CQS who can undertake the position, but they refused to meet me as Paskaralingam wanted a White Australian or Sri Lankan Tamil of Australian connection for the job. [ Munasinghe knew me during the PWD days]. Later they recruited a Kenyan through the Commonwealth Secretariat – CFTC- where my name also was submitted by the CFTC to the Sri Lankan government, but Paskaralingam rejected my name.
11. During this time Paskaralingam established a Pre-Mix Concrete company in his name or someone else’s name in a Seven/Eight Acres of land belong to State Engineering corporation at Paliyagoda, without paying any Rent for the period of 7/8 years on a fixed term contract, and at the end of the contract SEC to get all equipment’s and other vehicles etc. But this contract was in use till 2006, till I pursue the matter when I was working for the SEC as an Executive Consultants (Volunteer) responsible for Construction as well as Quantity Surveying Department with powers of an Additional General Manager, till SEC file a case against the present company to recover the land. The former Minister of Justice Hon. Wijedasa Rajapakse was the Lawyer who filed the case against the company, as he was the External lawyer of the SEC and the present Magistrate Mrs. Thilini Atygala was the SEC lawyer, to recover the rent and the land and other equipment’s. As I left SEC on 10^th April 2007, I am not aware how the case proceeded.
12. At the time the Town House complexes constructed during PM Premadasa’s time, ( I introduced President Premadasa to these Housing Construction when he was in Kenya after returning from Zambia after Commonwealth Heads meeting, I arranged with UN Permission a Three day inspection and study tour for him) when Paskaralingam was the Secretary of the Ministry of Building Housing and Construction and these housing complexes were getting completed, Paskaralingam trapped the then Chairman of the Building Materials Corporation Mr. Ajantha Wijesena, who was supposed to be a close friend of Mrs. Hema Premadasa, wife of Prime Minister Premadasa, and forced him to introduced Mrs Hema Premadasa, (after getting him to his office),  trapped Mrs. Hema Premadasa and charged Rs.10,000, Rs, 15,000, Rs. 20,000 and Rs 25,000 to the various houses constructed at Ratmalana, Piliyandaala Anderson Golf Course, Bamabalapitiya near Police training school area, and in Wattala and trapping PM Premadasa to sell those houses for over Rs.450,000 each well over the construction cost of Rs.165,000 to Rs.195,000 each.
13. By trapping Premadasa with the help of his wife Hema Premadasa, he robbed over Rs 7 billion, (some money was shared between Premadasa and Paskaralingam) to help the LTTE. During this time he forced President Premadasa to hand over weapons belongs to the Army and Police to LTTE and we lost 600 brave police officers due to Paskaralingams planning.

How he collected Funds for the LTTE.

14. Kotte Parliament house estimated at Rs 350 million was completed with an increased cost of Rs. 1 billion. Total cost of the Parliament house was Rs 1,380 billion.
15. Kalutara twin bridges were estimated for Rs 480, million, but the final cost was Rs.1, 480 billion. As Paskaralingam helped the contractors to cut the Steel Bridge Frames when their tenders was to remove and secure them to use for other areas. Contractors got paid for preserving the Bridge Frames and for cutting them and dismantling them with and additional cost.
16. Ragama Hospital estimated at Rs 420 million the end cost was Rs 1, 540 billion.
17. Samanalawewa Hydro Power (Dam) plant and the Reservoir cost is not known but Paskaralingam got Rs. 1 billion from Alfa Betty and it is not recorded in CEB records as the Project Engineer was a Tamil supporting the LTTE. Paskaralingam used to go the Alfa Beatty’s office at Collepitya Liberty Plaza daily and meet the Contractors and discuss about the Variations according to the Accountant who worked for Alfa Beatty now working in Australia.
18. I did my research on the 14 Construction Projects Paskaralingam and the group handle for my Thesis ‘How Discounting Effect the Environmentally Sensitive projects’ and found out most of this information from my research.
19. Contract Arbitration Cost (around US $ 30 billion) of failed Contract Administration, was another way Paskaralingam made money for the LTTE work, Kotte Parliament House variations which caused the cost increase are created many times and never completed and some of the variation were on going while the parliament is in operation.

BABU who killed President Premadasa on 1^st may 1993 and his connection to Paskaralingam.

20. Paskaralingam sister’s son was a student at UTS and he is the one who narrated this storey to the writer.
21. Babu was brought to Colombo by Paskaralingam and he stayed with Paskaralingam sisters in her house at Dehiwala for nearly two (2) weeks till he was introduced to President Premadasa’ personal groomer the Muslim man. According to his nephew he slept with him for the two weeks in the same room till he was introduced to Premadasa’s man. Premadasa was killed according to him to get the money stack in Banks belong to Premadasa (Swiss Bank Numbers Accounts was managed by Paskaralingam as Premadasa never left SL after he did his last trip to Zambia and China) to use for LTTE and half of that money was taken by Paskaralingam (This may be true as he confirmed Paskaralingam left SL on the day (morning flight) Premadasa was killed. After that Paskaralingam never sighted Sri Lanka till 2000 end when Ranil was contesting the General election and later became his Adviser and the man who control Ranils short government, where he was forced to sign the CFA by Paskaralingam (CFA was prepared by Paskaralingam) . Paskaralingam used his powers as the head of the government and was the real ruler during that time. (Former PM’s Secretary Bradman Weerakoon may be aware of most of these things).

Information provided by LTTE Informant: How Ranil W got money to buy the MP’s from CBK.

22. In 1999, Ranil was contacted by G.L.Peiris and few others to say that they are ready to leave President CBK’s Government if they get Rs.4 million each, but the Tamil Minister Thondaman from the Estates wanted Rs. 8 million.
23. When Ranil was contacted by G.L.Peiris, Ranil spoke to late Charles Ganakoon about getting some money to pay the MP’s. Charles volunteered to provide the funds, as he acted as a Shipping Magnate running the shipping fleet belong to LTTE. He was stationed in Singapore and was the man who was running the 17 LTTE ships. Charles asked Ranil to come to Singapore to give the money.
24. Ranil went to Singapore with late Lasantha Wickramatunge to collect the money. The writer who got this information from the LTTE informant informed the then Secretary to President Kususmsiri Balapatabendi ( a personal friend for over 50 years) about this trip and they are going to get funds to buy the MP’s from the LTTE.
25. Balapatabendi arranged then DIG CID Sumanasekara (now retired) to follow Ranil and Lasantha and to check on this transaction. DIG Sumanasekara went to Singapore with another two SP’s but they lost Ranil and Lasantha and failed to follow them.
26. Ranil was given US $ 50 million or amount close to that by Charles, Paskaralingam and KP in Singapore Sheraton Hotel, to buy the MP’s and spend for the election. Ranil won the election.
27. On the day before the election Paskaralingam came to Sri Lanka and stayed at the Galadari hotel ( I stayed in the same Hotel after coming on University work) and later became the adviser to Ranil and the man who control Ranil’s government.
28. Now he is back and will do the same damages he did before. Paskaralingam is the person who wanted Arjuna Mahendran to be appointed as the CB Governor as Paskaralingam is a very close friend or relation of Arjuna Aloysius’s family. (Arjuna Aloysius’s mother may be Paskaralingam other sister).
29. People appointed to Sri Lankan Airlines from Tamil origin are all Diaspora members and they are planning to buy the Air Line according to LTTE informant.

Information provided by Late Minister Ranjan Wijerathna’s Private Secretary, a classmate and a cousin of the writer.

30. The day Minister Ranjan Wijerathne was assassinated by the LTTE, he changed his normal route and has informed President Premadasa about the new route, as he was presenting a Cabinet paper to stop Paskaralingam attending Cabinet meetings. The reason for submitting this Cabinet paper was due to General Kobbekaduwa’s others murder by the LTTE.
31. According to Minister Ranjan’s PS, Minister Ranjan has discussed Kobbekaduwa’s impending visit to the area he got killed and the information was leaked, so he suspected Paskaralingam for this leak and the killing of General Denzil Kobbekaduawa and other Army officers.
32. Ranjan’s PS is of the opinion that his telephoned call may have gone to Paskaralingam and the killing was arranged by him with the LTTE.
33. As Premadasa’s PS was my classmate and a very close friend Paskaralingam had a very close relationship with Premadasa.

Additional Information. {Need to check the following information]

34. According to LTTE informant, Paskaralingam is the key person with Soleihm (Norwegian) with late Balasingham responsible for the CFA. When Ranil signed the CFA without reading the document, handed over to him by Paskaralingam.
35. The signing of the CFA was witnessed (this was not planned) by then Army Commander General Balagalle and Brigadier (later Major General) Kapila Hendawitharana (responsible for Army Intelligence and the Long Distance Resistance group), as they were trying to meet PM Ranil Wickramasinghe to hand over a document about Long Distance Resistance Group or Rangers and their inability to full them out from Wanni in a very short time.
36. The same informant told the writer that ISGA was prepared by Paskaralingam with Balasingham, which was refused to implement by Ranil. This refusal angered Prabakaran. Ranil’s refusal to implement the ISGA forced VP to FORCED the Tamils in the North to avoid casting their votes at the 2005 Presidential Election.

Why KP is not arrested?

37. KP, Paskaralingam and VP were working together. KP is the main person who helped Ranil W to get funds to buy the SLFP MP’s in 2000.
38. Now Paskaralingam is in power and KP will be safe as long as Paskaralingam is in power.

END of the Information.

http://www.sundaytimes.lk/020414/bus/5.html

The return of R. Paskaralingam
R. Paskaralingam, the influential former Finance Ministry Secretary widely known as late President R. Premadasa’s right-hand man, is back after eight years in self-exile and is playing a key behind-the-scenes role in the present regime as advisor to Prime Minister Ranil Wickremesinghe.

The soft-spoken bureaucrat is keeping a low profile and lives at the Galadari Hotel under a different name. Hotel staff refuse to even acknowledge his presence or put through telephone calls. The Sunday Times spent weeks trying to track him down. Last week, Paskaralingam, or ‘Paski’ as he is known, finally relented and gave a rare interview in which he describes his present role but would not talk about the past. Citing legal advice, he declined to comment on the allegations against him or the Special Presidential Commission of Inquiry into malpractices in public bodies that found him guilty of ‘misuse or abuse of power’ and recommended that he be deprived of his civic rights.

That verdict was overturned by the Supreme Court on technical grounds. Paskaralingam says the allegations against him were probably the work of those jealous of his work and position. During his stint as Treasury Secretary, he says he used to work virtually 18 hours a day and neglected his private life to work for the betterment of the country. “When you take decisions you’re bound to displease some people,” he says. “You can’t please all the people all the time.” One of the reasons that prompted him to remain in self-imposed exile all these years, he says, was that he feared for his personal safety.

• You were a key player in the previous United National Party government. You have returned after a long period abroad. Can you describe what role you are playing in this government?

I have been appointed as advisor to the Ministry of Policy Development and Implementation. The development of the economy, especially from a position of negative growth, is going to be an uphill task. My role is advisory – it is not a line position. I expect to co-ordinate and work with all government development agencies in order to accelerate the pace of growth.

• Will you move into a more permanent position?

I don’t expect to move into a more permanent position. I prefer to continue in an advisory role purely because I have held line positions in the past and after retirement I don’t want to take on a line position. An advisory role gives me a lot of flexibility in order to express my own views on various matters and not be bound by various rules and regulations of the government bureaucracy.

I especially like to work with the private sector and to put forward their issues and concerns and assist in the rapid development which the country needs through private sector investment.

• Why have you been keeping such a low profile. You are living in this hotel under a different name. Why the ‘hush-hush’ nature of your presence? Also, who is paying the hotel bills?

I decided on my own volition to be an advisor and as an advisor it is not proper to project my image and my authority over the line positions and the various officials who shoulder the responsibilities of administration.

• But your role right now is being seen as a kind of ‘super-bureaucrat’ where you sometimes even exceed the authority of the line officials. In that context you’re playing a very influential role.

No. It is not correct to call it the role of a ‘super-bureaucrat’. It is purely an advisory and a co-ordinating role. It is true that having been in the public service almost all the secretaries and the officials have worked with me in the past and that is a big help because I can count on their co-operation.

Rapid economic development needs a co-ordinated effort. It’s not possible to do it through one or two people. It has to be the combined effort of all ministries and the various agencies. So if I am able to get the co-operation of the entire bureaucracy to deliver the goods and accelerate the pace of implementation then I feel that I would have contributed towards the development effort of the government.

• But why the ‘hush-hush’ nature of your presence?

That is purely because if you’re available, it is not possible to do any work. There would be innumerable phone calls. It is difficult for any officer or an advisor to keep on answering all the telephone calls. Because I have to answer them myself since there is no secretary to support me.

• Why live in a hotel? Is the government paying for it?

I am paying for it. It is a temporary arrangement till I get my residence organised. My family is living in England. I have come here after eight years. It is not easy to get organised in a hurry and run a residence. I also have to go out of the country a few times.

I have been doing some work outside. I have still not wound up my work outside the country. So taking all that into consideration the hotel arrangement is the best for the present.

• Why were you abroad for eight years? It was some kind of self-imposed exile. What was the reason? And why have you returned now?

There is no specific reason why I was out for eight years. I started several projects on my own in the United Kingdom and I have been working with my family and close relatives. While I was working here I had neglected the family. So this gave me an opportunity to be with the family. They have all settled down in the UK. Not only my own family, but even my brothers, sisters and close relations.

• But you left when the government changed. The impression given is that you ran away. That you wanted to avoid the Special Presidential Commission of Inquiry?

I left in 1993, one year before the government changed. I was only in President D.B. Wijetunge’s government for four or five months.

• Can you at least say why you didn’t bother to appear before the Presidential Commission of Inquiry?

I don’t want to answer that question either. These are legal matters which have been dealt with and finally the Supreme Court had found me not guilty of whatever charges that were brought against me. So I don’t like to go into the pros and cons of it.

• The Supreme Court decision was on technical grounds?

In my opinion, legally I’ve been found not guilty. The Supreme Court decided not to go into the substance of it. That is a matter on which I cannot answer.

• During the previous UNP government you were seen as a kind of a ‘super-bureaucrat’ who was able to cut through red tape and speed up the decision making process. And also your personal relationship with President Premadasa counted a lot. Are such personal relationships required to run the administration? Shouldn’t there be a system where personalities are irrelevant and the system takes care of the decision-making?

Always, a proper system must be in place. Personal relationships and arrangements are only temporary.

• Do you think such a system is in place now?

A system is being developed.

• What would you say are the shortcomings of the existing arrangement?

It is too early for me to comment on the shortcomings of the existing arrangement but I find that the decision making process has to be accelerated. Confidence among the bureaucrats has to be improved. The bureaucracy must be able to make decisions in an environment in which they should not fear the consequences for taking the right decisions.

• Are you referring to your experience?

No, I’m referring to the general thinking of the bureaucrats.

• In which areas do you think decision-making needs to be speeded up? How do you think this should be done? Is it the people that have to be changed or the procedures?

The bureaucracy has to become more confident about their role and they should not be frightened of unnecessary victimisation. It is difficult to elaborate. What they fear is unjust and unnecessary victimisation.

• Do you think some kind of system should be built to prevent that kind of victimisation?

Some kind of system has to be built but it is difficult for me to explain all that at a meeting like this. Maybe the reforms which the present government expects to bring in will be able to improve the climate for the bureaucrats to work with a lot of confidence.

• One of the issues that was brought up during your previous stint in government was your connections with certain business groups – that you had a very close relationship with certain business groups like the Maharajas. Can you explain what kind of relationship you had with them?

I do not like to answer that question because there was no such relationship with any special group.

• But there was an impression like that?

I don’t know. Maybe because I am a Tamil and the group was Tamil they thought there was a relationship but there was absolutely no such relationship with any group as such.