by Nirmala Kannangara
The Board of Investment, the institution assigned to attract investors with the purpose of enriching the country’s economy, is alleged to have changed its stance over the months and is accused of ‘kicking’ out investors.The top official of the Board of Investment (BOI) has come under severe criticism from investors for being unkind and unprofessional towards those who were planning to bring foreign exchange to the country. According to an investor from the Eastern Province, complaints have been lodged against this officer with the Minister of Development Strategies and International Trade, Malik Samarawickrema who in return had wanted him to make the complaint with the Ministry Secretary, Chandani Wijayawardhana. Although it’s nearly three weeks since the complaint has been made, no action had been taken against this officer.
Sri Lankan catering letter
“We want to bring investors to this country but if the official is behaving in such a manner that distracts the investors and does not corporate with the clients to solve the issues they are facing. What is the purpose of having such an officer in this post. It’s nearly three weeks since I complained about this officer to the Minister, Ministry Secretary and even to Chairman BOI. It is disheartening to note as to how the official who has done so much damage to the institution remains in his position with the political backing,” the sources said.
Meanwhile BOI trade union activists who wished to remain anonymous confirmed what the investor from the Eastern Province claimed and added that unless the President intervenes and merges the post of Chairman and Director General, the latter is dominating his powers with the blessings of Minister Samarawickrema.
“Earlier it was the Chairman that held this post as well. After Minister Samarawickrema was appointed, the subject minister appointed this official to the current post and at a tea party hosted by the Minister for BOI and Export Development Board (EDB) staff, he introduced the official as the most dynamic person at the BOI. If the Minister calls him dynamic then what is the word the minister should say for the real vibrant employees in the institution,” trade union sources added.
The sources further accused Chairman BOI Upul Jayasuriya for being silent and for not questioning the official and taking action when there are complaints against him.
“The Chairman’s silent attitude will further bring adverse impact to the BOI if disciplinary actions are not taken against the official for being arrogant towards the investors,” sources said. According to the sources, when the BOI was refusing to hand over 100 acres of land to a Tyre Manufacturing Plant from Horana, it was with the blessings of the official Minister Samarawickrema facilitated the investor to give all requirements that was needed.
“If the lease is for over 50 years, tenders had to be called. But when the proposal came to lease out 100 acres on a 99-year lease, tenders were not called but given on a platter. When the government decided to give the land for Rs.170 million, Chairman BOI, Upul Jayasuriya refused to release the land and increased the price to Rs. 201 million. The investor Nandana Lokuwitharana, who was working hand in glove with the former President during the former regime and who is also the ‘owner’ of Steel Corporation has now become closer to Minister Samarawickrema and wanted the BOI to provide infrastructure facilities – water connection, road network, electricity connection and drainage system – to the land out of BOI funds to which the Chairman once again resisted strongly. Now we have learnt that the investor had got all these facilities at a cost of Rs. 300 million. When the Chairman was opposing to meet unnecessary demands Lokuwitharana was requesting, the official in question kept silent in favour of the investor but when it comes to foreign and local investors that neither the Ministry officials nor the official are benefitted, they are chased away even without allowing them to come inside his office,” sources alleged. Meanwhile the sources further said as to how a British investor who came to construct a 93-room hotel in Negombo was not given approval after making him to come more than 30 days to get the approvals.
“We lease our lands for Rs. 43,000 per perch but this investor was willing to pay us Rs. 450,000 per perch and requested the land on a 99-year lease. If the BOI could give 100 acres on a 99-year lease to Lokuvitharana, why couldn’t this English investor get the land on a 99-year lease? However, if the official facing accusations did not want to give this land, he would have said this to the investor at once without making him to waste his time coming to BOI more than 30 days. This is bad precedent. If the word goes around amongst the foreign investors how the BOI is ‘treating’ the prospective investors, what would happen to the country?” sources queried.
Meanwhile, another local investor, who had approached the official to get approval to a factory that process salmon belly imported from Norway with ginger oil and re-export to Japan too had been turned down for a reason known only to the top official.
“When the request of this local investor was turned down by the top BOI official, some of our officials had taken him to the Chairman and got the approvals,” sources claimed. The sources further said as to how the Finance Manager Sri Lankan Catering Limited was badly treated by the official, when the Sri Lankan Catering officials met the official to seek a tax exemption from the income generated from the operations of the airline laundry of Sri Lankan Catering Limited.
“When the Department of Inland Revenue (DIR) clarified with Sri Lankan Catering whether airline laundry operations come under BOI agreement, the Catering Finance Manager had met the official for a clarification where the official had been badly treated. This officer in an official letter to the General Manager Sri Lankan Catering dated May 31, 2017 had written about his meeting with the BOI official to which he had referred to as thus, ‘The meeting with him (DG) was really unkind and unprofessional with his negative views on this matter’.
When things are continuing like this, the future of the BOI is bleak unless he is removed from his post and allow the Chairman who is a President Counselor that knows to talk and attract the investors to handle investments,” sources added.
The sources further accused Minister Malik Samarawickrema and his ministry officials for taking their preferred officers on foreign investment tours who are not capable even to make discussions on investment promotions.
“For the recent high level trade delegation to New Zealand, Ministry Additional Secretary W. A. D. S. Gunasinghe had made a request to the Director General to nominate a suitable officer to take part in the delegation from July 1 to July 5. What made the Additional Secretary to ask the top BOI official to nominate an officer? He should have informed the Chairman and the Chairman should have asked the official to nominate a name, send it for board approval and then send the name/s to the Ministry for approval. We understand that the Development Strategies and International Trade Ministry is working hand in glove with the MD and making use of his office to get those who known to them included in trade delegations to foreign countries without following the protocol,” sources alleged.
Meanwhile questions have been raised as to who had given authority to Mangala P. B. Yapa, who claims to be the Managing Director, Agency for Development to decide on certain investments in the country.
“Mangala Yapa is claiming to be the MD, Agency for Development which is not a statutory body. Having designated himself as the MD, in this un-statutory body, Yapa in an e-mail to MD, BOI and the Ministry Secretary had stated that the Development Strategies and International Trade Ministry had proposed to give the cement grinding plant project to a Chinese Company and Ceylon Steel Corporation as a joint venture. What meant Yapa to inform the BOI about these projects as the applications from these two investors had come to the BOI and not to the Agency for Development? The Chinese Company Sinoma had submitted their application to the BOI on January 24, 2017 (Ref. No: 2654/2017) and Ceylon Steel Corporation to manufacture cement, lime and plaster had submitted their application to the BOI on January 26, 2017 (Ref. No:2658/ 2017).
According to the e-mail the Chinese Embassy’s position is that the Chinese investor should be given priority which had been agreed by the Ministry of Development Strategies and International Trade,” sources alleged.
The questionable e-mail states as thus, ‘The Chinese Embassy position is that the Chinese investor – Sinoma (Nanjing) should be given priority in the Hambantota Industrial Zone to be developed by the investor China Harbour and Engineering Construction Company Limited.
Their argument is that considering the commitment given to GOSL, the Embassy in their Ministry have done lots of persuasions to attract these investors and all their efforts and the confidence of the Chinese investors will be lost if we allow more parties to produce cement in HIZ from the beginning – all are targeting the fast growing local market. Even after writing a letter under the signature of Hon. Minister, the embassy was of the view that only a Joint Venture with Sinoma and Ceylon Steel Corporation to work together and come up with a partnership arrangement but a final decision is yet to be reached’.
According to the sources, the Chinese Embassy has no authority to ask that the Chinese investors should give priority and the Development Strategies and International Trade Ministry too does not have any power to intervene with BOI projects. “The Ministry can intervene if the BOI has refused any application for no reason or if a fraud is taking place.
This letter clearly shows as to how the Development Strategies and International Trade ministry officials, the self designated MD of Agency for Development and DG BOI is taking decisions without the knowledge of the BOI Board of Directors,” sources alleged.
When contacted Mangala P. B. Yapa to find out what the authority he has got to intervene in projects the BOI had received applications and how come the Agency for Development had received two applications for the projects when it is an un-statutory body, Yapa said that he is busy and cannot make a comment. Asked at what time he would be free to call him back, Yapa said that he does not want to make any comment to the media.
All attempts to contact Chairman BOI, Upul Jayasuriya for a comment for the allegations leveled against him and his officials, failed as he was at meetings continuously.
Although the Press Officer BOI Dilip Samarasinghe was contacted he wanted this reporter to send the questions via e-mail and promised to respond within a few hours. But Samarasinghe never replied till the paper went for print.