tamilweek.com

The arrest in New York of Mr. Raj Rajaratnam, a Sri Lanka born U.S. citizen named by the prestigious Forbes Magazine earlier this year as being the world’s 559th richest individual, will for many reasons reverberate here not only because he is of Lankan descent but also for the fact that he is one of the biggest investors in our stock market which is often described in global reports as “tiny.’’ He is among the biggest shareholders of John Keells Holdings, a highly diversified conglomerate enjoying the top market capitalization of any company quoted on the Colombo bourse. The founder of the U.S.-based Galleon Hedge Fund, Rajaratnam is a billionaire with interests in several quoted companies here.

As reported in our pages today, his name transpires in a High Court case in which indictments have already been filed. This relates to a move to buy into the Union Bank PLC, an entity quoted on Colombo Stock Exchange, for which money had been remitted here. These funds had been frozen, for whatever reason, and we do not wish to discuss aspects of a matter that is sub judice. Suffice it to be said that any foreigner investing in our stock market must do so through what is called a Share Investment External Rupee Account or SIERA. That ensures such investments are made from funds remitted from abroad and not from rupee resources held here.

The mere fact that Rajaratnam has been arrested does not mean that he is guilty; of for that matter if he is acquitted that he is not guilty. It may be that prosecutors lacked sufficient evidence to make their charges stick as is often the case. The fact that this arrest, with some others, on charges of insider trading, has made big news in Wall Street and other big centers of global finance is an index of how important the people caught up in this scandal are in the global financial world. Manhattan-based Galleon Partners, Bloomberg reported, has offices in London, Singapore, Mumbai and Menlo Park, California. That’s how big its operations are. Among the co-accused are ex-directors of the well known Bear Stearns brokerage and other big ticket US companies like McKinsey and IBM. Chances are that the prosecution will not be quickly concluded and whatever determination made will be appealed, whoever is convicted or not convicted. Reports indicated that court-authorized wiretaps had been used to listen to some conversations of the people involved in an investigation going back at least as long as November 2007.

Readers may not be altogether familiar with what the offence of “insider trading’’ that Rajaratnam and his co-accused face is all about. In simple terms it means that the persons concerned had information about companies whose shares they traded that the market was not aware of. That gives them an advantage over other players. This is why most stock exchanges worldwide, including our own, require that market sensitive information is disclosed by companies in a timely manner to enable all participants play on a level field. Most companies have rules regulating how their executives and other employees possessing information that can react on their share prices may or may not trade in their shares. There have been instances here where the Securities and Exchange Commission has investigated cases not only of insider trading but also of manipulation giving a false appearance of the market. Many such cases have too often been compounded on payment of a fine usually credited to the SEC’s Compensation Fund. Such penalties are generally assessed on the basis of the illegitimate profits made. Unfortunately nobody has been jailed here for such offences. In the US, offenders risk mandatory sentences.

Here in Sri Lanka, as in other parts of the world, there is increasing conciousness about money laundering where proceeds of criminal activity, including narcotics, are channeled into legitimate businesses like stock markets. That is why the Central Bank is increasingly insistent that not only banks but even stockbrokers know their clients and KYC (“know your client’’) is a key word very much in use today. Stock brokers get their clients to fill in forms including personal details that were not previously sought and banks often ask constituents making big deposits what the source of the funds were. Big stock exchange transactions of over a million rupees are also reported. While such measures are not absolutely fool proof, and untaxed money more than proceeds of criminal activity are most likely invested in instruments such as bank and treasury deposits and quoted shares, it is to the good that the authorities are tightening their grip in an effort to ensure that such activity is in order. There was a time when policy makers closed their eyes to some aspects of financial transactions on the premise that fund movement from the informal to the formal sector was economically beneficial. This, however, has been changing in more recent years.

While the Rajaratnam case will continue to hold attention here largely for the reason that he is of Sri Lankan origin, and also because he is a significant investor in companies here, we must not forget that he was a generous contributor to post-tsunami rehabilitation projects both in the north and the south. He had, on Colombo’s initiative, also agreed to substantially support the rehabilitation of LTTE cadres. Given the size of the funds he controlled, quite apart from his own personal investments in quoted companies here, his Galleon Funds have invested significantly in the Colombo stock market. He would also have undoubtedly influenced other portfolio investors in the US and elsewhere in the west to look at our market which would certainly have had a beneficial effect on what we now trumpet as the “world’s best performing stock market.’’ While we do not condone infringements of the law anywhere by anybody and wish the enforcement authorities in the US the very best in bringing wrongdoers to book, we would also record that Rajaratnam’s investments here was not without benefit to our market. [courtesy: The Island.lk]

Virakesari Editorial, Sep 20, 2008

Amidst the continuing tensed situation in the country, Tamils being looked at suspiciously and detained for questioning is a continuing saga today; particularly those traveling to the capital from the North undergo severe hardship. Due to this Tamils arriving in Colombo carry on their day to day activities in fear.

People of the North travel to Colombo seeking many essential services in capital Colombo that are otherwise unavailable to them. Shortage of medical facilities, higher education, employment and overseas travel plans and all make it a must for Tamils of North to come to the capital.

Also, numerous Tamils move to Colombo to lead a life in peace, away from being amidst rolling juggernaut of war and destruction.

All of these people continually face search and round up operations of Police and security forces in the capital and detention thereafter for questioning.

Tamils living in Colombo with fear is apparent, as even Tamils with proper documents and identification too are arrested, detained and questioned.

Security officials in the capital say the measures have been enacted to prevent infiltration of rebels and ensure the country is protected.

Highest priority being given to protect the people and country is indisputable; yet question arises, if viewing only a section of the people suspiciously will bring about that desired result in overall safety.

[A Sri Lankan ethnic Tamil man walks past a banner outside a registration center in Colombo, Sri Lanka, Sunday, Sept. 21, 2008. Thousands of Sri Lankan ethnic Tamils who have fled the country's embattled north and are now living in a western province lined up Sunday to give their details, following an order to register with the police. (AP Photo/Eranga Jayawardena)-via Yahoo! News]

More Pictures: on Sep 21, 2008 – Virakesari.lk

In the meantime, 21st September is established as deadline for registration by all Tamils who arrived within the past five years, at respective Police Stations of their residence. The Police Spokesman SSP Ranjith Gunasekera said at a recent media briefing, that this measure is being taken to ensure the protection of people.

People from the North must register at respective Police Stations or assigned Buddhist Viharas along with their family members.

It is also reported that police is taking census of Tamils who arrived from five districts – Jaffna, Mullaithivu, Kilinochchi, Mannar and Vavuniya.

The authorities have also said no proof will be issued for this registration; and during any future instances of questioning and round up operations, National Identity Card, passport and or letter from Grama Sevaka or related document will be required to establish identification again!

Over 60,000 people are estimated to have taken residence in Colombo over the past 5 years. The practicality of all of them, along with their family members registering within the short time frame is questionable; the deadline of September 21st was announced only on September 18th.

In the meantime, people who want to travel to Colombo after the 21st of September are perplexed over the registration requirement and how the procedure is to be adhered to by them.

The registration rules for those who want to come to Colombo after the 21st must be made clearer.

It is important that people are accorded with efficient methods for registering, to avoid long waiting and unnecessary inconveniences.

Also, the language barrier of the people of the North must be taken into consideration.

It is important officers with Tamil language skills must be present at Police Stations to assist in the registration, to ease delays and alleviate difficulties.

The Montreal Gazette in an editorial on June 19th, says The Mounties may have enough documentary evidence – but listing the Tamil Canadian Volunteer Organization, World Tamil Movement (WTM) as a terrorist organization, is a decision taken in haste. The newspaper adds that a recent ‘major raid on the movement’s headquarters last spring has resulted in no charges so far.’

Full Text of the Editorial as follows:

Tamil listing is a little hasty

Public Safety Minister Stockwell Day appears, to us at least, to have been just a little too hasty in adding the World Tamil Movement to Canada’s official list of banned terrorist organizations, along with Hamas and Al-Qa’ida.

It’s quite possible that the WTM is, as Day said this week, a leading front for the Tamil Tiger insurgents back home in Sri Lanka. But so far the evidence against the group is pretty thin. No WTM member has ever been prosecuted for a crime, let alone convicted. And a major raid on the movement’s headquarters last spring has resulted in no charges so far.

The Mounties have certainly presented enough documentary evidence to make a reasonable person suspect that the WTM might well be doing more than just lobbying governments and raising money for Sri Lankan charities. And until those suspicions are laid to rest, the government should certainly keep a close eye on the group’s activities.

But until they’re confirmed, government suspicions alone should never be enough to shut down a voluntary organization of Canadians. [www.Montreal Gazette]

Editorial-The Bottom Line:

Defence Secretary Gotabhaya has once again raised a hornet’s nest

This time, Rajapaksa, in an interview with the Lankadeepa newspaper, is calling for a blanket press censorship on reporting military matters.

Worst still, he wants to bring back the archaic criminal defamation legislation – removed from the statute books six years ago. This is a clear indication that he is trying to turn the clock of media freedom back to colonial times, when the law was introduced.

When Rajapaksa calls for such action, one needs to stand up and take notice. After all, he is not just a Secretary, but a ‘Super Secretary’ whose word invariably becomes law. It was only a month back, when the Defence Secretary called for the abrogation of the CFA, and it was done, pronto.

In June last year, the issue of re-introducing criminal defamation came up before the cabinet. The International Federation of Journalists (IFJ) said that the re-introduction of criminal defamation laws will be another terrible setback for press freedom in Sri Lanka where human rights abuses against journalists and unfair censorship is imposed.

“The IFJ is firmly opposed to criminal defamation laws, which are so often abused by those in power to silence journalists and stifle dissent,” IFJ Asia-Pacific Director Jacqueline Park said.

In the face of stringent criticism last year, SLFP General Secretary Minister Maithripala Sirisena reassured the people that the government would not re-introduce criminal defamation laws.

“We are a government and a political party which always stands for the rights of journalists,” said the SLFP General Secretary who would have to eat humble pie if the Defence Secretary has his way this time.

Minister Sirisena said President Mahinda Rajapaksa and his government were committed to ensure media freedom and the safety and dignity of journalists.

Before the country could come to grips with the slashing of the wrists of Rupavahini Senior Producer Lal Hemantha Mawalage last week, Thinakaran Associate Editor Suhaib M. Cassim was stabbed at his Maligawatte residence.

The country and the world have seen and heard how safe journalists have been in Sri Lanka during the tenure of this government, particularly during the past year, when nine journalists have died and dozens more have fled the country.

The way the senior media men at Sri Lanka Rupavahini Corporation have been treated – shabbily and brutally, after the Mervyn Silva fiasco, speaks volumes of this government’s commitment to uphold the dignity of journalists.

Never before has state media personnel being subject to such cruel and inhuman treatment.

During then past 17 months, the government and the military have used subtle forms to stifle the media, including veiled threats and strong arm tactics, but never resorted to blanket censorship.

If this happens, it is a clear indication that the military is going flat out to wage war. We are not against the prosecution of war, per se. After all, it was the LTTE that pulled out of peace talks during the previous government and did not pursue peace with this administration, despite efforts of the international community.

But, if the proposed censorship is meant to conceal the true casualty figures and prevent reporting of excesses by the security forces, then it is a serious situation that warrants comment and condemnation by any journalist worth his salt.

Bottom Line, the Colombo based midweek newspaper, quoting reliable sources says that the slain ex-Jaffna MP Maheswaran was to expose the paramilitaries backed by very powerful quarters, who were running amok in Jaffna, carrying out scores of killing and abductions apart from other forms of harassment including large scale extortion. The MP was killed on 1st of January 2008.

The cold blooded assassination of Tamil parliamentarian Thyagaraja Maheswaran in Colombo as he stepped out of a renowned Lord Shiva temple near the Colombo port is being condemned around the globe.

The temple, Sri Ponnambalavaneswarar was originally built in 1856 out of brick and mortar. In 1906, today’s splendid granite temple with delicately carved rockstone pillars and images was reconstructed between 1907 and 1912.

The MP slain on the first day of 2008 was a member of the Sri Lanka’s main Opposition, The United National Party (UNP.) The other two parlamentarians murdred in Sri lanka high security zones recently, N.Raviraj and J. Pararajasingham were members of the Tamil National Alliance. (TNA)

“The gunning down of an opposition Parliamentarian takes added significance as it is seen as an attempt to stifle moderate Tamil opinion”, said The Bottom Line, in its first editorial for the year on January 2, 2008.

“Amidst allegations of Majoritarian Rule, this Government must afford greater protection for parliamentarians from the minority community”.

The newspaper says that the killers “no doubt, escaped amidst high security”, but urges follow up if the government wants to get “to the bottom of this killing” since a wounded suspect is in custody.

Maheswaran was the third Tamil parliamentarian to be murdered after the present regime assumed office.

Pointing out that the 2005 and 2006 assassinations of parliamentarians belonging to Tamil parties remain unresolved, martyrdom is now staring at the fourth, Civil Monitoring Committee (CMC) convener Mano Ganesan MP, summed up the newspaper on the glum prospects facing those who are being the “voice of the voiceless”.

Parliamentarian Mano Ganesan was presented with a human rights award, ‘Freedom Defender World Wide Award for 2007’, by USA in early December.

[As Sri Lanka ushered in yet another New Year with many hopes and expectations, Colombo District MP T.Maheswaran’s family too anticipated for a better year ahead of them. However, their hopes were brutally dashed yesterday morning following the killing of Maheswaran. Unable to control the shock, the grieving wife of T. Maheswaran embraces her daughter in agony as they both uncontrollably weep over the unbearable loss. Pic by Ishara S. Kodikara-The Bottom Line]

Full Text of the Bottom Line editorial:

What an ugly way to usher in the New Year

Killing any representative of the people is no doubt a blow to democracy.

What makes the killing so chilling is that the Government pruned the security of the deceased only last week.

And that, too, after the deceased, Thyagaraja Maheswaran vowed on Sunday to name those involved in a spate of abductions, extortion schemes and unexplained killings in the Jaffna peninsula.

Appearing during a Sirasa interview, Maheswaran blamed government paramilitary groups for these abductions, killings and cases of extortion in state-controlled territory. Of course Maheswaran was no friend of the LTTE as represented a southern political party- the chief opposition UNP.

His killing is a sequel to the assassination of two other vociferous Tamil Parliamentarians- Nadaraja Raviraj and Joseph Pararajasingham who belonged to the Tamil National Alliance, which had the blessings of the LTTE.

The gunning down of an opposition Parliamentarian takes added significance as it is seen as an attempt to stifle moderate Tamil opinion. All three murdered MPs campaigned vociferously on behalf of the Tamil community.

They were the voice of the voiceless that was silenced by the bullet. A fourth Lawmaker Mano Ganesan, the patron of abducted Tamils in Colombo, remains the lone voice in the wilderness, despite martyrdom staring in his face.

What this administration does not realise is that it has a bounden duty to protect opposition parliamentarians if it is to uphold democracy. Amidst allegations of Majoritarian Rule, this Government must afford greater protection for parliamentarians from the minority community.

To the government’s credit it has afforded maximum protection to the likes of Douglas Devavanda, V. Muralitheran and V. Anandasangaree—all who are diametrically opposed to the LTTE, the killer organisation.

But, those Tamil MPs, or Sinhalese MPs for that matter, who disapprove of the government’s handling of affairs, have their security slashed overnight. Whenever security is curtailed, the government claims the threat level of the subjects has decreased. What a coincidence!

In all the three aforementioned killings since December 2005, there appears to be a pattern that is now talked about in diplomatic circles.

Raviraj antagonised many a Sinhala chauvinist by his erudite appearances during TV talk shows in Sinhalese. A lawyer and a great debater, the fearless Raviraj based his arguments on facts and law.

Those who snuffed out his life last year took the path of least resistance. They shot him dead in a high security zone in the Capital Colombo.

Pararajasingham was also killed in a high security zone in Batticaloa. He was shot dead in a Catholic Church during the 2005 Christmas mass.

Maheswaran was killed on New Year’s Day in a Hindu Kovil in Kotahena, again in a high security zone.

The killers, no doubt, escaped amidst high security, but divine justice awaits those who ordered the killings in the holy precincts of a Church and Kovil.

Just like killing the messenger, killing opposition MPs, the representatives of the people, has become a past time, or so it appears.

Finding the killers in a spate of killings has not been the hallmark of this administration. Due to threats and possible repercussions, many are not willing to come forward and give evidence. This time a suspected killer has been wounded in the shoot out in the Temple and should be protected at all costs if the Government wants to get at the bottom of this killing.

The Chief Opposition UNP has blamed the Government for this latest killing. Besides blaming the government, as the chief opposition party, it has done sweet nothing to arrest the deteriorating security situation. It must bury its head in shame, as it has miserably failed the country.

Those MPs whose lives were snuffed out have stuck their necks in the name of democracy and their blood, we hope, would sanctify the August Assembly.

“Racial profiling and callous treatment of a section of society is not the answer”, said The Bottom Line, in its editorial on December 26th.

Published every Wednesday in Colombo Sri Lanka, The Bottom Line in its final edition for 2007 is calling the year that ends as the “year of pain and shame” and wants to look “forward in hope that the New Year will bring glad tidings of peace and prosperity”.

Lamenting on the prevailing holiday blues due to the militaristic situation in the country, the newspaper is blaming both the LTTE and the Sri Lanka government security forces for worsening fears and security risks faced by the civilians. “The security forces have been no better in their treatment of the minority Tamils, in particular. No doubt precautionary security measures have to be taken. It is the responsibility of the state to protect all its citizens from wanton acts of destruction.”

Amidst daily reports of several rights violations of Tamils in several parts of Sri Lanka, details of ‘profiling’ related harassment and discrimination faced by Tamils in the daily walks of life in the capital Colombo and elsewhere is also emerging.

The Bottom Line in the editorial, has also pointed out that the people of North and East are constantly living in fear due to the aerial bombing missions of the Sri Lankan Air Force.

Full text of the Bottom Line Editorial:

Dismay as ethnic war ushers in 2008

The year 2007 was by far a rough one for one and all, in Sri Lanka. After four years of relative peace, the undeclared Eelam War IV, that began in 2006, intensified this year. The economy is in doldrums not just on account of the war, but also the steadily rising price of oil in the world market.

The usual hectic shopping spree in the run up to Christmas and the festive season were not observed. Instead, low key celebrations took place.

Perhaps, even the efficient preferred this kind of approach, given the country’s economic plight and the general suffering of people. Or perhaps, the security risks, given the bomb blasts ahead of the season, may have been the cause for the damper.

Bus bombs and bombs in other public places drive fear into the masses. The fear-psychosis was aggravated by the recent bomb blast in a clothe store in Nugegoda. That the LTTE had begun to resort to soft targets was easily fathomed by civilians. Unable to contain the marauding security forces, the LTTE resorted to wanton acts of mass destruction. The LTTE lived up to its terrorist epithet as the organisation that terrified the masses, not just in the capital Colombo and the South, but also in the North and East, the flash point of the war. And mind you the very masses, that LTTE claims to represent, have been subjected to duress and bondage.

The security forces have been no better in their treatment of the minority Tamils, in particular. No doubt precautionary security measures have to be taken. It is the responsibility of the state to protect all its citizens from wanton acts of destruction.

But, racial profiling and callous treatment of a section of society is not the answer. In some instances, these hapless people have escaped the terror of the LTTE, only to be enveloped in the terror of the state.

It certainly was a year of terror that instilled a fear psychosis in the masses. In the first half of the year, the LTTE deployed its light aircraft to drop bombs on important installations in the capital Colombo. Even though the people eventually overcame this fear, civilians in the North and East constantly live in trepidation when fighter bombers carry out missions, not withstanding the accuracy of the Sri Lankan Air Force.

The fierce fighting has rendered thousands homeless and the authorities, must do all they can, to speedily resettle the displaced.

As the country wrings out this year of pain and shame, deprivation and trepidation, we can only look forward in hope that the New Year will bring glad tidings of peace and prosperity.