Allowing Armed Forces Run

Businesses Too Dangerous

The following media statement issued by the Decent Lanka, a group of activists on Good Governance

( November 16, 2015, Colombo, Sri Lanka

Guardian) As reported in the media, on Wednesday (11 November) the President had
held talks on the controversial Avant Garde Maritime Services Ltd. (AGMSL) with all
heads of State Security Forces, AGs department representatives, relevant ministry
heads and parliamentarians. Following day (12 Nov) media quoted cabinet
spokesman Minister Rajitha Senaratne as having said, the president had instructed
relevant authorities to revoke all agreements with AGMSL and to hand over all
operations back to the Navy.
Not totally contradicting, but allowing for time before such a decision is taken, another
Minister who is much in controversy over the AGMSL issue, Wijedasa Rajapaksa told
media the President only instructed relevant authorities to see the possibility of
handing over AGMSL operations to the Navy but no decision was taken to revoke
agreements. Despite their verbal bouts, President certainly seems to believe the crisis
over the controversial AGMSL can be averted by handing over all its operations to the
Navy.

This simply means the navy will be asked to take over a very lucrative business that
according to international opinion is extremely corrupt and dangerous too. It is known
to the world that enormous profits involved in illegal arms deals in high seas with
numerous terrorist outfits, is one major reason for continued armed conflicts across
the globe. The AGMSL is also now suspected to have heavily profited from such high
sea deals. Such cannot be ruled out even if operations are handed over to the Navy.
Already some defence ministry officials are also accused of complicity in AGMSL
operations while parliamentarians in the previous and present regimes are accused of
being beneficiaries in numerous ways.
With long time politicisation and a decade of arbitrary rule under the previous regime,
the State is no more capable of clean and efficient dispensation of responsibilities.
During the past decade a wide spread complex web seems to have emerged that
serves money power with political patronage across all State administrative and
enforcement agencies. Where a political will is lacking and the government is at a loss
in drawing up far reaching reforms, there is absolutely no guarantee, handing over
AGMSL operations to the Navy will clean up operations.
That said, let us also stress that security forces are not State agencies that should be
allowed to engage in profit making businesses. In established democracies, State
armed forces have strictly defined roles that relate to national security and no more.
Allowing armed forces to engage in business brings about two serious and dangerous
aberrations in daily life. First is the fact, economic activity in a democratic society is
defined as civilian activity. Economic space should remain that of citizens to engage in
livelihood and entrepreneurial activities. Bringing in security forces into business
restricts such space for citizens and deforms competition in markets while also
negating employment generation.
Intrusion into the economy by armed forces became very conspicuous after the war
was declared over in 2009. Apart from different construction contracts the army
undertakes, armed forces are in a big way into the hospitality trade. There are 02
hotels in Mullaitivu and 02 in Jaffna including 01 in the bird sanctuary in Chundikuli.
The Air force has 02 hotels in Trincomalee and in Attidiya, Dehiwala with hotel
reservations handled by a private company Lakpura Travels. A hotel chain Laya
owned by the army has 04 hotels functioning with 05 more said to be on the pipeline.
The army also owns Laya Travels a commercial travel service. Malima owned by
the Navy has 07 hotels in its chain, 02 reception halls and 01 pilgrim rest in Jaffna.
The military is into cafes and eateries as well. In Trincomalee, the Air force owns Sri
Lankas 04th golf course,
the Eagles golf links, complete with all facilities. Navy runs commercial Whale
Watching cruises. Helitours is the commercial air arm of the Air force.
AGMSL would definitely be much bigger and heavier than all of these existing
businesses put together. Bigger the stake more corrupt the whole corporate entity
would be and that in the hands of security forces, compel them to intervene in decision
making too. That is the most dangerous second aspect with much to learn from the

Pakistani Military Inc. a business empire estimated to be worth around 20 billion US

dollars. In her startling revelations in the book Military Inc: Inside Pakistans Military
Economy Dr. Ayesha Siddiqa a former Director of Research with the Pakistan Navy
says the military manufacture everything from cement to cornflakes and own 12 million
acres [4.8 mn hectares] of public land. Of the 96 businesses run by the four largest
foundations established by the military, only 09 businesses file public accounts. What
is more important is her assertion, It feeds directly into the militarys political power;
its an expression of their personal and organisational strength. That cannot be
anything less than the truth with the Pakistani military controlling almost all political
decisions, even when a civilian government is elected to power. In Pakistani history
more than half their life had been under military rulers since the partition in 1948.
One wonders here in Sri Lanka what legal status these commercial ventures have, for
them to be called army, navy or air force owned. Can security forces legally own
and manage business enterprises? Who appoints Director Boards of these
companies? From where did the investments come and who approved such
investments? What happens to profits if any and where does that money go?
Obviously its the hierarchy that run these business ventures and perhaps enjoy
whatever possible. While Pakistani army Generals ignore calls by the parliament to
account for public monies they spend, our parliament and its oversight bodies like the
Public Accounts Committee (PAC) and the COPE is never known to have even
questioned the finances involved in these businesses. Though much of the monies are
public funds, wonder if the RTI that is said to be ready, includes these business
ventures by the armed forces within its ambit.
We dont seem willing to regulate, audit and hold businesses by the security forces
accountable to the tax payer as they are still war heroes in this society. That seems
the hesitancy in probing AGMSL operations linked to State security forces as well. Yet
in terms of national security and international obligations, there is obviously a need to
seriously and impartially probe AGMSL for any criminal acts on the ground and in high
seas including arms deals and money laundering and legally dealt thereafter if
required. What should also be equally stressed is the fact that this complex maritime
business needs independent, efficient and a strong regulatory State mechanism in
place before the Navy or any State agency takes over from the AGMSL. However
profitable the business would be, this is one area Sri Lanka should not get into until
this corrupt and inefficient State that still behaves as it was with the previous regime is
completely reformed. For now, this hybrid government lacks a political will to rein in
authority to have the house in order. We therefore cannot risk getting into a Pakistani
Syndrome.
Signatories ;
Neville Ananda Attorney at law
Sujeewa Dahanayake Attorney at Law
Muditha Karunamuni Social activist

Kusal Perera Journalist

Anton Marcus Trade union leader
Srinath Perera Attorney at law
Siritunge Jayasuriya Political activist
Srinath Perera Presidents Counsel
Contacts
Neville Ananda Attorney at law 0777876811
Sujeewa Dahanayake Attorney at Law 0777324062
Posted by Thavam