Rotten deal!
Nissanka Rajapaksa
| Rotten deal! |
 By Ravi Ladduwahetty
The government’s plans on boosting the sugar industry through a US$ 220 million investment to set up sugar refinery facilities within the Free Port area of Hambantota, have run into a series of problems with a team of sugar industry experts ruling out the project as having serious technical flaws and deeming it totally unfeasible.
Earlier this month, addressing the post-Cabinet press briefing, Government Spokesman, Media and Information Minister, Keheliya Rambukwella, declared that Cabinet had approved five megabuck investments into what is now judiciously known as the Ruhunu Magampura Mahinda Rajapaksa Port. The story, reported under the headline ‘Investments totalling US$ 2.7 billion’ in the 16 August edition of Ceylon Today, revealed the first such investment was US$ 220 million by India’s Shree Renuka Sugars Ltd.
In a subsequent report, this newspaper revealed further details about Shree Renuka’s investment, which was essentially to set up a sugar refinery within the Free Port area of Hambantota, with the aim of producing refined sugar for both local and export markets, and questioned the company’s credentials, given its murky history with a failed Brazilian venture in its portfolio. It also highlighted concerns voiced by the experts, who believed, going ahead with the project would sound the death knell for local sugar production.
The Cabinet Memorandum prepared by Investment Promotion Minister, Lakshman Yapa Abeywardena, dated 14 August, stated, there would be an infusion of US$ 220 million into the project within a period of seven years, with US$ 160 million invested in the form of fixed assets – buildings, plant and machinery.
The memorandum stated that duty free concessions would be given with approval, to supply 60% of the domestic market demands, and channel the rest to the export market.
The report also revealed the Treasury and the Board of Investment (BoI) had been totally opposed to the project on the basis that it violated the vision of President Mahinda Rajapaksa, spelled out in the 2013 Budget speech, which said that incentives will be provided to the local sugarcane industry.
However, the biggest surprising twist to the whole endeavour now comes from the team of experts, comprising some of the leading figures of sugar research in Sri Lanka, mandated by the government to test the feasibility of the project, which had ruled the project should be abandoned on grounds of
The team has also warned that if the project is implemented.
The report, a copy of which is in the possession of Ceylon Today, states: “It is strongly recommended on grounds of none-feasibility of prerequisites of a sugar refinery project and a facility detrimental to not only the heavy agro-industrialization sector of Sri Lanka but also to direct health by way of NCDs (non-communicable diseases) spreading in the population, this project should be abandoned.”
The report further states the project is neither technically feasible nor financially viable, and it should not be approved without a comprehensive Environmental Impact Assessment (EIA) report and a comprehensive monitoring plan.
Given the murky financial status of the investor, Shree Renuka Sugar Ltd. (SRSL) Mumbai, India, which has seen its net profits decline from INR 310 million (12 months up to 31 March 2012) to a huge loss of INR 3,740 million in the 12 months up to 31 March 2013, the report also urges Shree Renuka be asked to give details on how it proposes to secure:
- Finances when the company’s financial indicators have been bleak for the past four years and the burden of debt is increasing;
- Cheap power as Sri Lanka’s industrial power is very expensive;
- Adequate water supplies as there is no source of potable quality water in the nearby area;
- Adequate supplies of raw sugar as the company’s Brazilian ventures have failed;
- Plan for mitigating heavy pollution from a refinery;
- As Sri Lanka needs only 7% of refined sugar out of its current requirement of 550,000 tonnes, which is only 38,500, the domestic market of refined sugar by Shree Renuka Sugar will be limited to 38,500 MT only.
The report deems satisfactory answers to the concerns and queries should be a prerequisite in order that the proposal be put up for consideration.
Raw material doubtful
With Shree Renuka Company already in the red, due to poor planning and strategies adopted in Brazil, establishing a new project, especially a refinery in Sri Lanka, which is extremely expensive to operate in terms of power requirement, cannot be justified as especially raw sugar has to be transported long distances from Brazil, while the Brazilian ventures have been not successful either.
Wiki Invest.com of India, reviewing this vulnerability of Shree Renuka Company states: “Shree Renuka sugars is not a vertically integrated player in the sugar industry, as it has no captive sugarcane farms. Any raw material shortage would lead to underutilized capacity and reduced net profit. The sugarcane availability in India follows a cyclical pattern. The sugarcane produced depends on the overall market dynamics in the industry. The sugarcane crop is also highly dependent on the prevalent weather conditions.”
Conclusion from above:
Planning ability and experience in project execution seems poor and they have not been able to turn around the loss making plants in Brazil yet, causing all their financial indicators to be negative up to now. Under such circumstances, the experts believe it would be too risky to welcome such a bankrupt company to Hambantota, where none of the basic amenities required, such as cheap power, raw materials and potable quality water are available, even at a price. Moreover, they point out that the company did not have financial strength and credibility even to sell its assets in Brazil and raise US$ 200 million last May, stating, “Therefore, its ability to raise US$ 220 million for this project when its financial indicators are far worse, is quite doubtful.”
Refinery capacity 3,000 tonnes per day
The reports also states that assuming carbonation process is used as the clarification method in the refinery process, the 3,000 tonnes per day refinery will use 900 kwh at 13 US cents a unit of power, translating to some US$ 2,808 per day on carbonation power alone, if it is obtained from the national grid. “If it is operated for 365 days at full capacity, just this single step in itself would cost the company over US $ 1 million, making sugar refining in Sri Lanka at current energy costs, an extremely unprofitable venture,” the report points out.
As Sri Lanka has no cheap sources of power, any imported, oil-based thermal power for both steam and electricity requirement are non-viable for large heavy industries, the report further elaborates, adding that it is not feasible in a commercial sense to set up sugar refinery, although a free port facility is available. In such a scenario, the project objectives of supplying cheap refined sugar at competitive prices for both export and domestic markets, cannot be achieved, the report states.
Minimal value addition: No way up to 30%
The Cabinet memo specifically states that value addition should be not less than 30% (Rationale 2(iv)). However, it has been clearly stated by Agribusiness Handbook published by the FAO that value addition in making refined white sugar from raw sugar is less than 14% , as evident from the analysis of past records and the world market free sugar prices of raw and refined sugar.
The only sugars, which have very high values are speciality sugars produced in specific countries for particular niche markets. If the Hambantota Port wishes to invite refinery investment for speciality sugar production for specific niche markets, it has all the merit, provided Sri Lanka could provide much cheap power supplies, where the unit cost should be around three US cents. Otherwise, such ventures have no commercial viability or sustainability, the report states.
Non-availability of quality potable, deionised water
Hambantota suffers from lack of potable water. Sugar refineries require copious supplies of quality water, unlike sugar mills, which make their own water from sugarcane juice. Establishing a refinery in a place where potable water is already in shortage, makes the scenario more difficult to justify.
Refined white sugar not for direct consumption
The refined white sugar requirement in the country for a few specific industries stands at only 7% of the total need of the product. It is required by some bakery and soft drink industries, purely for its lack of colour, and hence the requirement will be very small, the report points out, adding, it is not therefore, correct to open the domestic market to refined white sugar. The report also warns that the high glycemic content in refined sugar could precipitate diabetes and other similar non-communicable diseases, and on this count alone, the government would be doing a great disservice to people in Sri Lanka.
Increased foreign exchange losses
As the difference in price between raw and refined white sugar is approximately US$ 50 per tonne, and even if the producer sells the raw sugar at a price without a profit to the domestic market, there is no saving in the foreign exchange draining from the country.
High pollution load
Unlike sugar factories, refineries produce a high pollution load, which cannot be easily treated as Port premises cannot treat effluents, as it will reach into the sea. The industry uses both acids and alkalis to keep pH at 7-9 and to regenerate ion exchange resins, the report states.
It further points out, “We now have a grim reminder of the Weliweriya factory of leached acids into the ground water table. Solid waste is heavy, which is normally disposed as landfills and this cannot be done within the Port premises and as there is no suitable plantations nearby, transporting’ to areas away from people will be extremely costly.” The report emphasized the project may pose many dangers, both to soil and water, and to the marine environment in the area, and rules that an environment licence should not be issued without a very thorough Environmental Impact Assessment (EIA) study and competent independent follow up.
Heavy loss of employment
The proposed sugar refinery with various concessions being made conditional to its establishment, is aiming to supply the full domestic requirement of sugar of 550,000 tonnes, but the employment generation is only 350 people, of which 75 persons will be expatriates. Thus net direct local employment is only 275 people, which is less than what a single garment factory could fulfil! On the other hand, if 55,000-75,000 hectares of rain-fed sugarcane or 30,000-40,000 hectares of irrigated cane of new improved varieties are cultivated here, we can meet the national requirement and more, the report highlights.
What is required is to expand the cultivations and factories in Sevanagala, Pelwatte and Hingurana, and reorganize Kantale, while expanding the Bibile factory to its full capacity of 10-12,000 TCD. This, the report states, would not only help the country reach self sufficiency but also produce a surplus for the export market. “Given there is correct master plan and leadership, this could be easily achieved within a 10-year period, which is the time required for the new refinery to start functioning as well. If the authorities concerned go for that plan to make Sri Lanka self sufficient in the next 10 years, the number of direct employment created in farming of around 60,000 ha of rain-fed land would be 180,000 farmer families. In addition to the farming community, direct factory workers would be at least 6,000 workers. Seasonal employment would be over 100,000. Thus, the total employment potential in this sector in sugar alone would be more than 180,000+ 6,000+ 100,000=286,000.
“Therefore, nearly 300,000 people would be employed if this sector is revived, whereas if we close it up by allowing an unwanted refined sugar company to enter the domestic market, there will only be 275 jobs. Thus the loss of employment would be in the region of 300,000-275=299,725,” it further elaborates.
Shree Renuka Sugar is bankrupt, but not blacklisted
Investment Promotion Minister, Lakshman Yapa Abeywardena, when contacted for his comments, said the investor company, Shree Renuka Sugar, was loss making no doubt, but has not been blacklisted. He said there would not be any loss to the economy, as whatever quantity of sugar the Indian investor was making, was for the export market and that whatever component they were feeding the local market had to be met with the tax components.
The minister also said he had a meeting with all the key ministry officials after Ceylon Today’s revelation on 21 August, and especially the research experts to determine the viability of the project while also probing the credentials of the Indian investor.
He said it was tremendous that there are investors who were trying to establish factories in Hambantota, whereas, the preference of all investors were to opt for Puttalam.
Meanwhile, Minister of Sugar Industries, Lakshman Seneviratne, declined to comment. “ I have no comments to make,” he said. |
Kithsiri Herath
පොඩ්ඩක් උඩින් පල්ලෙන් බලා ගෙන ගියා , මට නම් මේකේ ලස්සනම කෑල්ල , අන්තිම වාක්යය යි.
Meanwhile, Minister of Sugar Industries, Lakshman Seneviratne, declined to comment. “ I have no comments to make,” he said.
එක පැත්තකින් , දැන් අපේ priorities බලමු. හම්බන්තොට වරාය ආශ්රිත නිදහස් වෙළද කලාපය, මොන මොනවා ගෙන් හරි පුරවන්න ඕනෑ. දැන් දැන් exports down වේගන යන නිසා , විදේශ විනිමයත් ඕනෑ. exchange rate එකත් නැග ගෙන යනවා. ඉතින් ඩොලර් 200 million කෙසේ වෙතත් 200,000 අරගෙන එනවා නම් එකත් ඇති.
අනෙක් පැත්තෙන්, දේශීය සිනි නිෂ්පාදනය කියල එකක් තියෙනවද ? ඔය කන්තලේ, හිගුරාන, සෙවෙනගල, පෙලවත්ත රජයේ කර්මාන්තශාලා කවදාවත් වැඩ කලාද ? රජයකටත් පුලුවන්ද සිනි නිෂ්පාදනය කරන්න ? දැන් රජය නිෂ්පාදනය කරන ඒවා , විදුලිය , තෙල් ,ගෑස් වල එහෙම ප්රතිපල කොහොමද ?
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From: Kithsiri Herath <nakh...@gmail.com>
To: INDRAKA group <ind...@googlegroups.com>
Sent: Sunday, September 1, 2013 7:04 PM
Subject: Re: [indraka] Rotten deal!
Kithsiri Herath
විපක්ෂ නායක පාර්ලිමේන්තුවේ දී අසා ඇති ප්රශ්නවලට (අවංක, සුපිරිසිදු,නොකිලිටි, වැදගත්, ප්රභු, වාමාංශික ,දේශාභිමානි) ඇමතිතුමා ගේ උත්තර ත් පහල තිබෙනවා.
අවධානයට යොමු විය යුතු ,සුවිශේෂ කරුනු කිහිපයක්............,
# project cost එක ඩොලර් මිලයන 229.50 , ඒ කියන්නේ ගෙඩි රුපියල් ම බිලියන 30 ක් පමණ.
# The contract was awarded after evaluating the unsolicited project proposal put forward by the CMEC ....ඒ කියන්නේ මේක ඉල්ලං කෑමක්. ගම්පහ, අත්තනගල්ල මිනුවහ්ගොඩ ප්රදේශයේ ජනතාවට වතුර දෙන්නේ, මේ ජනතාවගේ ඉල්ලීමකට හෝ රජයේ ඔනාකමකට හෙම නොවෙයි, චීන කොම්පැනියක බලවත් ඉල්ලීමකට.
# මෙච්චර බිලියන 30 ක project එකට සල්ලි කොහෙන්ද කියලා නම් ඇමතිතුමා කියන්නේ නැහැ. ජනතාවගේ වතුර ප්රශ්නා ගැන ඉතාමත් ශෝකයට බලව ත් පස්චාත්තාපයට පත් වූ චීන කොම්පැනියේ සම්පුර්ණ අධාරයක් වෙන්නත් පුළුවන්.
නය මුදලක් නම් පොලිය කියක් ද කියලාවත්....... අපේ ලමයින්ටවත් කියනවාද ?
# it was not in a position to discharge the said water supply project under traditional investment plans ....මොනවාද මේ traditional investment plans කියන්නේ ? මං හිතන්නේ traditional agriculture වගේ දෙයක් වෙන්න ඇති ?
# who are the local agents of the CMEC ? එව්වා නම් කොහොමටවත් කියන්න බැහැ, රාජ්ය රහස්, කිව්වොත් රට අස්ථාවර වෙන්නත් පුළුවන්. මේ රනිල්කාරයාත් ( Royal එකේ classmate වෙලත් ) අහන්නේ ඕනෑ නැති ප්රශ්න නේ.
[අපේ Jaye සහෝ... ට නම් මේ ගැන සෑහෙන විස්තර කියන්න පුළුවන් වේවි, එත් "conflict of interest" වෙයි ද දන්නේ නැහැ, ]
http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=87334
Water project contract given to N’cholai plant builder: Ranil questions govt.
September 4, 2013, 12:00 pmby Saman Indrajith
UNP and Opposition Leader Ranil Wickremesinghe yesterday questioned the government on the move to award the contract of the Gampaha, Attanagalle and Minuwangoda Integrated Water Supply Scheme, seeking to provide water to one of the most thickly populated areas of the country, to the same Chinese Contractor, who undertook the construction of the Norochcholai Power Plant, which has thus far failed four times since its commissioning.
Making a statement under Standing Order 23 (2), Opposition Leader Wickremesinghe, said:
"The Gampaha, Attanagalle and Minuwangoda Integrated Water Supply Scheme seeks to provide water to one of the thickly populated areas of the country. It will be one of the largest water supply schemes.
It involves the construction of the Basnagoda Reservoir. In November 2012, the Cabinet of Ministers decided to revise the original cost estimate for this project. In April this year, the Cabinet awarded the contract for the implementation of the Gampaha, Attanagalla and Minuwangoda Integrated Water Supply Scheme to China Machinery Engineering Corporation (CMEC). The total cost of the project is US Dollars 229.5 Million. This is after the Ministry of National Water Supply and Drainage revised the cost estimate and changed the implementation period. CMEC originally known as the China National Machinery and Equipment Import and Export Corporation undertakes for the construction of power plants both hydro and thermal as well as power transmission lines. The CMEC was entrusted with the construction of the
Norochcholai Power Plant. This power plant is not yet fully operational and has failed four times since its commissioning. The failure of the Norochcholai Power Plant according to the Government is one of the reasons for the increase in electricity tariff. The CEB’s Technological Engineers Union has blamed the Company for the breakdown and further stated that all these breakdowns are happening just to extend their maintenance contract. Therefore, a question has arisen as to why such a large contract was awarded to a company which has failed to perform on an earlier contract. Furthermore, the CMEC has limited experience in regard to water supply schemes. It is an accepted practice of the Government not to award a tender to any company which has defaulted in executing an earlier construction project. An exception has been made in this case.
Therefore, will the Government state: the reason for revising the original cost estimate, the procedure followed in selecting CMEC for this contract, who were the other interested parties, the reason for overlooking reputed water supply contractors for the construction of such projects, whether the government took into consideration CMEC’s viability in respect of Norochcholai Power Plant, who are the local agents of the CMEC? If it is a company, the names of the Directors?
Furthermore, the Cabinet of Ministers has awarded the contract for the implementation of water supply scheme to CMEC. Is CMEC permitted to sub contract the whole scheme or any major part to any other company?
http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=87335
Chinese got it as there were no other takers - Dinesh
September 4, 2013, 12:00 pm
by Saman Indrajith
Minister of Water Supply and Drainage, Dinesh Gunawardena yesterday told the House that the National Water Supply and Drainage Board had taken measures to award the contract of constructing the Gampaha, Attanagalle and Minuwangoda Integrated Water Supply Scheme to China Machinery Engineering Corporation (CMEC) as none of the other reputed water supply contractors came forward.
"The contract was awarded after evaluating the unsolicited project proposal put forward by the CMEC, by the Technical Evaluating Committee appointed by the Treasury.
"Since the area to be covered for water supply is comparatively larger than other districts in the Western Province and the populace is thick, the NWS&DB’s assessment was that it was not in a position to discharge the said water supply project under traditional investment plans. Thus, we were compelled to look out for alternate investors," he said.
Minister Gunawardena also said that the original project proposal has to be revised in order to change the time frame for the project.
"Though it was decided that project period should be from 2012-2014, it was evident that it needed to be revised as 2014-2017 to achieve the best results. Based on the extension of the project and also taking into consideration the inflation rates, the estimated cost was revised."
Nissanka Rajapaksa
මව්බිම දැන් |
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Niccolo B Mac
යකඩෝ.... මේ වන ජීවී ඉඩම් අයිතිකාර මිනිස්ටර් කාගෙන්ද මේ අහන්නේ....... ?.............. අපෙන් ද ?
(ඔයිට හොඳයි ගිහිල්ල පේන ඇහුවා නම් .......... අර කාගේ දෝ අම්මාගෙන් ම !!!)
Allocation of forest land to private firms to be probed – Minister
September 5, 2013, 9:48 pm
By Ifham Nizam
The Wildlife Resources and Conservation Management Ministry will soon launch an investigation into how acres of forest land were being given to two private companies.
The Minister in charge of the subject, Wijith Wijithamuni de Zoysa told The Island yesterday that he had ordered the probe into how acres of forest land had been allocated to Dole Lanka (Pvt.) and Nelna Agri Development (Pvt.) Ltd.
He said that he had instructed his officials to check the methodology of distribution and verify whether anyone was keen on pushing them.
"I also told them that if necessary to look into the possibility of filing legal action against those responsible," he added.
The Minister said that he was puzzled over the development as even traditional farmers were finding it hard to get even an inch of forest land, while such newcomers were getting acres.
He also criticised the State Timber Corporation’s stance, saying that they would be present in no time when they found valuable trees and plants but failed to attend to even a common cause when the trees and plants were not of much value.
Zoysa said that he had taken up the matter with Environment and Renewable Energy Minister Susil Premajayantha and the latter had extended his fullest cooperation.
Nissanka Rajapaksa
Illegal Clearing Of Forests By Dole Lanka
By Nirmala Kannangara
Dole Lanka - Wekada Wewa project, Aerial photo of the Wekada Wewa surrounded by the Buttala banana plantation, Ranabima, Buttala, Dole Lanka office at Nawala and Bulldozing the forest
Questions have been raised as to whose forceful hand is behind Dole Lanka (Pvt) Ltd, the local partner of USA based Dole Food Company, that has cleared more than 15, 600 forest lands in the country for banana cultivation in the Somawathiya National Park, Lunugamvehera National Park and in Buttala in the Monaragala district.
Although Dole Lanka (Pvt) Ltd runs the Lunugamvehera and Buttala banana plantations under their own name, the banana plantations in Somawathiya and Buttala are being carried out by their local subsidiaries –Letsgrow (Pvt) Ltd and Ranabima (Pvt) Ltd respectively.
None of these projects at Somawathiya National Park, Lunugamvehera National Park and in Buttala have obtained Wild Life Conservation Department, the Forest Department, Agrarian Services Department, Central Environmental Authority, Irrigation Department, Archaeological Department and the respective District and Divisional Secretaries approval as per the State Land Ordinance, to clear the forests.
The Sunday Leader on many occasions tried to contact Dole Lanka (Pvt) Ltd but to no avail. We contacted their lawyer John Wilson of 365, Dam Street, Colombo 12 and Company Secretary Wewe Mudiyanselage Keerthi Kumara Weerasekera of 365, Dam Street, Colombo 12 and requested a contact number for Dole Lanka, but they refused to furnish details about the company. Later we were asked to send an official request to John Wilson. However, he has not responded for the past one week.
When The Sunday Leader visited the Dole Lanka office at 252, Nawala Road, Nawala, Rajagiriya on August 30 to speak to its General Manager Lenardo, neither he nor Director Human Resources Anusha were willing to speak with us. All attempts to speak to them over their general number also failed.
“Dole Lanka has openly violated the State land Ordinance and why are the authorities concerned silent without taking action against this company? Who is the powerful person behind these deals?” Environment Conservation Trust Director Sajeewa Chamakara queried.
As The Sunday Leader reported earlier 11,600 acres of thick jungle belonging to the Somawathiya National Park and National Live Stock Development Board have been given by the Defence Ministry to Letsgrow (Pvt) Ltd which is a local subsidiary of Dole Food Company.
According to Conservator General of Forests H. M. P. Hitisekera, lands covered by natural vegetation cannot be transferred to any other party without the approval of the Lands Commissioner.
In that context, who has given authority to the Defence Ministry to give away 11,600 acres from Somawathiya to Letsgrow which is owned by Pramodya Wickremasinghe- former Sri Lankan fast bowler, Muthiah Sasidaran – brother of former Sri Lankan spin bowler Muthiah Muralitharan and Sarath Wickremaratne.
Questions have been raised as to whether this ‘illegal land transaction’ was an incentive to Pramodya Wickremasinghe to crossover from the UNP to the ruling party prior to the Presidential election in 2010.
According to the Department of Registrar of Companies, Dole Lanka (Pvt) Ltd was registered on September 9, 2008 and the Directors are Wenceslao (Jr) Abilay and James Prideaux both from the Philippines and their registered local office is at 252, Nawala Road, Nawala, Rajagiriya.
Environmentalist Raveendra Kariyawasam at the National Coordinator Centre for Environmental Studies told The Sunday Leader that 3,000 acres have been given to Dole Lanka in Lunugamvehera.
“This 3,000 acre land belongs to the Lunugamvehera National Park and the Forest Department. This was an elephant corridor previously. They have neither obtained the Environment Impact Assessment (EIA) report nor the other approvals from the relevant government departments,” he said.
In addition to which an illegal elephant drive in Lunugamwehera has been carried out by Dole Lanka in order to save their plantation at Lunugamvehera, alleged Environmentalist and elephant enthusiast, Pubudu Weeraratne. More than 40-50 elephants had been driven from Handapanagala to the Lunugamwehera National Park in August 2010. This was carried out despite the fact that 25 elephants out of the 350 that was driven away from the Uda Matthala and Pahala Matthala to the Lunugamwehera National Park in 2008 died due to lack of food and water.
According to Kariyawasam Dole Lanka has denied water for the farmers from the Wekada Wewa in Buttala. Over the past several years the villagers have been taking water from this tank for their cultivations. The banana plantation has expanded round this tank and blocked the waterway denying water to the villagers. In addition to which they have also cleared the Menik Ganga reservation for the banana plantation.
Jagath Gunawardena, Attorney-at-Law specialising in environmental laws says that, preventing the villagers from drawing water from a water source they have used for years is against the Agrarian Development Act No: 46 of 2000.
According to the Department of Registrar of Companies, Ranabima (Pvt) Ltd was registered on March 8, 2010 and its only Director is Rohan Pushpa Kumara Liyanagamage of ‘Maithree’ 16th Mile Post, Raja Mawatha, Buttala.
It is alleged that Chief Minister Uva Province and current Basnayake Nilame (Lay Custodian) of the Ruhunu Maha Kataragama Devalaya Shashindra Rajapaksa who is also the eldest son of Speaker Chamal Rajapaksa and nephew of President Mahinda Rajapaksa is having authority over this company. Four hundred acres of state land in Buttala have been cleared for yet another banana plantation.
“According to the section 9A of the Fauna and Flora Protection Ordinance any development activity carried out within a mile of the boundary of a national park can be done only once the Wild Life Conservation Department (WLCD) gives its approval after studying the EIA report. Once the EIA report is submitted to the WLCD, it will be opened for public comments for a period of 30 days. The report has also to be given to Fauna and Flora Advisory Committee and it is only after this process is completed that the WLCD will decide,” said Gunawardena.
Divisional Secretary Buttala, Gayan Alagiyawatte confirmed to The Sunday Leader that Dole Lanka had obtained 500 acres from the Kataragama Devalaya and added that there is no necessity to obtain approvals from government departments, since this 500 acre land is not crown property.
“This land was given to Dole Lanka by the Kataragama Devalaya and the project began five to eight years ago. Since this is a large scale project this may be a BOI project but they have not sought any permission from us,” he said.
However, Jagath Gunawardena says that whether it is state land or private land of more than two and a half acres, the relevant approvals have to be obtained before developing the land.
“According to section 23AA of the NEA, any project which falls under the category of prescribed projects as per regulation published in Gazette Extraordinary No: 772/ 22 of June 24, 1993, has to go through the process whether it be state or private owned land,” he said.
Although Dole Lanka has not obtained any approval for the Buttala banana plantation, according to Alagiyawatte, Ranabima (Pvt) Ltd (a subsidiary of Dole Lanka) is in the process of requesting the necessary approvals from the government departments for their 400 acre banana cultivation at Demodara in the Monaragala district. However, Ranabima has so far failed to obtain the necessity approvals for their 400 acre project although it began two years ago according to Alagiyawatte. He also acknowledged that these lands are state lands.
All attempts to contact Divisional Secretary Lunugamvehera, Namal Indika Liyanage for a comment on the 3,000 acre Banana plantation at Lunugamvehera failed.
Conservator General of Forest H.M.P. Hitisekera when contacted by The Sunday Leader said that they have not given any approval for banana cultivation in the Monaragala district.
When asked as to what action they will take against Dole Lanka (Pvt) Ltd for clearing more than 3900 acres in the Monaragala district, Hitisekera said that the people and their belongings including the machinery could be taken into custody. “We should be thankful to the media for bringing these issues to our notice so that we can act immediately,” he added.
Chairman Central Environmental Authority (CEA) Charitha Herath said that these projects have neither obtained CEA approval nor have they been submitted for environment impact assessment (EIA).
Director General Wild Life Conservation Department (WLCD) H. D. Ratnayake, too said that the WLCD had not given any approvals to clear jungles for any development projects in the Moneragala district.
Environmentalists Score At Somawathiya
By Nirmala Kannangara
Aerial photo shows the deforestation within Somawathiya, Gazette notification of September 2, 1986 declaring Somawathiya as a national park and Pramodya Wickremasinghe planting the first banana sapling
Following the exposure in our August 14, 2011 issue on how the Defence Ministry has given away lands from the Somawathiya National Park (SNP) to the local agents of USA based Dole Food Company – Letsgrow (Pvt) Ltd for fruit and vegetable cultivation and livestock farming, the Environmental Foundation Limited (EFL) a non-governmental environmental conservation organisation has forced Dole Food Company to get their local agent to move out of SNP immediately.
Former Sri Lankan fast bowler Pramodya Wickremasinghe, Muthiah Sasidaran, brother of former Sri Lankan spin bowler Muthiah Muralitharan and Sarath Wickremaratne are the partners of Letsgrow (Pvt) Ltd.
Speculation is rife whether 11, 600 acres of state land was given to Letsgrow (Pvt) Ltd. by the Defence Ministry as an incentive to Pramodya Wickremasinghe to cross over from the UNP to the ruling party in the run up to the presidential election in 2010. For causing irreversible damage to the SNP, EFL was forced to explore possible legal action against those who were involved in this project.
Subsequent to this move, representatives from Dole Food (Asia) headed by Senior Vice President Human Resources Jennifer Wiegleb arrived in Sri Lanka and held discussions on September 25 and October 28 with the EFL, Wildlife and Nature Protection Society (WNPS) and Wilderness Area Protection Foundation (WAPF) and then promised to move out from SNP. Speaking to The Sunday Leader, Head of Legal EFL Wardani Karunaratne said that they have requested Dole Food Company to withdraw their plantation from the SNP failing which legal action would be initiated for causing irreversible damage to the national park.
“When we made a presentation on the status of the illegal clearance within the sanctuary through satellite images, Dole representatives wanted one month to withdraw from SNP. At the October 28 meeting Dole acknowledged that part of their fruit plantation was within the SNP and requested two more weeks to move out,” said Karunaratne. According to Karunaratne, national reserves are governed by the Fauna and Flora Protection Ordinance (FFPO) No: 2 of 1937 (as amended) and the second highest level of protection is afforded to national parks- the category which SNP falls under.
“Hence under Section 5 of the FFPO (as amended) no person is permitted to enter and remain within a national park without the permission of the Department of Wild Life Conservation (DWLC). Section 5 (2) provides that such permission could be issued only for the purpose of studying or observing the fauna and flora in a national park. Further Section 6 of the FFPO (as amended) says that no person can damage or destroy any plant or clear the park for any development activity inside a national park which is a non bailable offence,” said Karunaratne. Meanwhile, Director Environment Conservation Trust Sajeewa Chamikara queried as to how the Defence Ministry allowed Letsgrow (Pvt) Ltd. to trespass on SNP.
“Somawathiya was first declared a sanctuary through Gazette notification no: 147/12 of September 9, 1966, under the Fauna and Flora Protection Act and was later declared as a national park in 1986 by Gazette notification no: 417/5 of September 2, 1986. This 93,662 acre National Park and the adjoining National Livestock Development Board (NLDB) lands which is thick jungle was the habitat for more than 500 wild elephants. It was the Mahaweli riparian area that provided the best food for them. With the clearing of the jungle not only the fauna and flora that is endemic to Sri Lanka has faced a great threat but it has become the start for yet another human-elephant conflict,” said Chamikara.
According to Chamikara, army posts have been installed right round the project land and neither the NLDB nor the Department of Wild Life Conservation (DWLC) officials were allowed to enter this ‘cultivation site’ to carry out land surveys.
“When the DWLC and the NLDB officials wanted to survey the land in order to find out to which department this land belongs to, the army prevented them. If they have not violated any laws why do they refuse to let these officials in,” alleged Chamikara.
According to him, it is strictly prohibited to develop a national park or its reservations but added that over 50 acres from any other forest land which is not a national park nor a reserve could be developed with the approval of the WLCD, the Forest Department, Agrarian Services Department, Irrigation Department, Archeological Department and the respective District and Divisional Secretaries as per the State Land Ordinance.
“If it is above 50 acres of forest land, approval should be taken from the said authorities while if it is a land which is within a one kilometre radius from the buffer zone an Environment Impact Assessment (EIA) has to be carried out,” Chamikara said. However, according to Karunaratne, it was with the support of the World Wildlife Fund (WWF) that they obtained past and present satellite images of the plantation site and to ascertain the exact location where the devastation has been carried out. “Since the army did not allow the DWLC, the NLDB or any other party to enter the area for a land survey, we had to seek the support of the WWF to get past and present satellite images to find out exactly where Letsgrow has cleared the thick jungle. The satellite images clearly show that the clearing has taken place between the Mahaweli river and the Kandakadu stream. Although the army claims that this plantation is carried out on the Kandakadu farm which belonged to the NLDB, how can they claim that when part of the Kandakadu farm too falls within the SNP?” claimed Karunaratne.
According to him, Dole representatives have confirmed to the EFL of their withdrawal from the SNP at a meeting held on November 16. “We were told that they have removed all their belongings within the SNP. However, we have to carry out an independent verification to confirm this and to see whether they continue their plantation within the buffer zone which too is a strictly prohibited area for any development activity,” said Karunaratne.
Although Dole has acknowledged that part of the plantation was within SNP, it was surprising to note that neither the Sri Lanka Army nor Letsgrow (Pvt) Ltd. when contacted by The Sunday Leader on the previous occasion denied the accusation. However, when The Sunday Leader contacted Military Spokesperson Brigadier H. A. Nihal Hapuarachchi to find out whether Letsgrow (Pvt) Ltd. had moved out from the SNP he said that they were still continuing with their plantation in Kandakadu.
“This land does not belong to the SNP but to the NLDB. Once the army got the eastern province liberated in 2007, the government allocated this land for us to start a rehabilitation camp. After the war, through a Gazette notification this land was given to the Defence Ministry,” said Hapuarachchi.
However, he failed to give further details about the said Gazette notification.
When asked as to how the Sri Lanka Army could claim that part of Kandakadu Farm does not fall within the SNP, Hapuarachchi said that it has to be verified with the Defence Ministry.
“You have to consult the Defence Ministry for more information,” he said. Meanwhile, Pramodya Wickremasinghe when contacted to find out whether they had been asked to move out of the SNP by the representatives of Dole Asia, Wickremasinghe told The Sunday Leader that he will not make any comments on the issue.
“There is nothing left to make any comments. You can write anything that you wish,” said Wickremsinghe. All attempts to contact Director DWLC, H. D. Ratnayake and Deputy Director (Legal) DWLC Marasinghe, as to what action they would take against Letsgrow for uprooting trees on 500 acres in the SNP, failed.
However, Ranger DWLC (Mahaweli Region) A. M. Seneviratne told The Sunday Leader that it is a non-bailable offence to cut down trees in a national park.
“Unless with a valid permit no one is allowed to enter a national park for any reason. In the event of deforestation it is a non-bailable offence and the law has to be implemented for such devastation immediately, irrespective of their status,” said Seneviratne. When contacted Minister Agrarian Services and Wild Life, S. M. Chandrasena said that he would personally instruct the DWLC to take stern action against those who have cleared part of the SNP for banana cultivation.
“No one is above the law. Irrespective of their positions they will be brought to book,” Chandrasena told The Sunday Leader.
Kithsiri Herath
Editorial
Inviting disaster
Villagers engaged in subsistence farming in the dry zone run the risk of being hauled up before courts for clearing woodlands for chena cultivation. They are made to pay heavy fines for slash-and-burn though they have no other way of eking out a living in a hostile terrain. Farmers who occupy state land for want of a better alternative are evicted mercilessly and reduced to penury. But, big businesses could grab state land anywhere and destroy vast extents of forests with forest officers and environmental authorities looking the other way.
Minister of Wildlife Resources and Conservation Management Wijith Wijithamuni de Zoysa has told this newspaper that a probe will be ordered into how forestland was allocated to Dole Lanka (Pvt.) and Nelna Agri Development (Pvt) Ltd. We have written extensively on this issue and it is heartening that at last a government politician has taken note of it.
Environmental groups succeeded in thwarting a government attempt to alienate vast stretches of wooded land in the south for banana cultivation some time ago, but later Dole managed to acquire forestland elsewhere. Minister Zoysa’s desire to have the questionable land deal probed and remedial action taken may be genuine, but he is sure to come up against a brick wall as he proceeds. All signs are that nothing will come out of his investigation to be launched. For, such deals are not possible without the blessings of the highest echelons of government. However, the minister will be able to prove that he had no hand in the matter.
True, the country needs foreign investment and the expansion of local industries should be facilitated by making land available to them. But, on no grounds must the clearing of forests be permitted for that purpose. The forest cover which is only 28.8 percent of the total land area has been shrinking at an alarming rate of 1.04 percent per year. Unless strict measures are adopted to prevent further deforestation, there will be disaster.
We
hope and pray that Minister de Zoysa won’t lose his portfolio for
ruffling the feathers of moneybags in the good books of his bosses.
Many dogs at the same bone
The NWP election has become a fiercely fought battle among the UPFA’s chief ministerial aspirants in Kurunegala. All candidates in that district are vying for the post of the chief minister; they are not prepared to settle for less. President Mahinda Rajapaksa, at a recent function, laughingly addressed them as the future Chief Ministers. However, the UPFA’s intra-party violence is no laughing matter.
The situation has become so bad that the chief financier of former UNP MP Dayasiri Jayasekera, who is contesting the NWP polls on the UPFA ticket, was abducted, assaulted and dumped on the roadside the other day. The Opposition is lucky that the UPFA candidates are too busy fighting each other to go for others. Else, the UNP and JVP candidates would have been at the receiving end of their violence. However, there is no guarantee that the pro-government thugs won’t turn on them within the next two weeks.
The abduction of Dayasiri’s supporter must be probed and the culprits brought to justice forthwith. However, it is doubtful whether the government will pursue the matter as it does not want to open up a can of worms; obviously the person who ordered the abduction is one of the UPFA candidates in the fray.
The UPFA’s intra-party clashes in Kurunegala could have been reduced to a considerable extent if the government had nominated its chief ministerial candidate at the very outset or told its contestants in no uncertain terms that no one who resorted to violence to secure preferential votes would be considered for ministerial posts even if he were to top the manape list.
( Island කතෘ වුනාට, ඉන්නේ නම් මේ Island එකේ නෙමෙයි වගේ),