{"id":32687,"date":"2014-08-24T00:14:34","date_gmt":"2014-08-24T04:14:34","guid":{"rendered":"http:\/\/dbsjeyaraj.com\/dbsj\/?p=32687"},"modified":"2014-08-24T19:35:54","modified_gmt":"2014-08-24T23:35:54","slug":"fara-unit-of-us-justice-dept-to-probe-information-about-deals-signed-with-us-lobbypr-firms-by-sri-lankan-mp-sajin-de-vass-gunawardena","status":"publish","type":"post","link":"https:\/\/dbsjeyaraj.com\/dbsj\/?p=32687","title":{"rendered":"FARA Unit of US Justice Dept to Probe Information About Deals Signed with US Lobby\/PR firms by Sri Lankan MP Sajin de Vass Gunawardena"},"content":{"rendered":"

Revelations in the Sunday Times in the past two weeks have prompted a review of mandatory information forwarded to the US Department of Justice by public relations (PR) and lobbying firms assigned by Sri Lanka using vast sums of public money.<\/p>\n

\"USJ082514\"<\/a><\/p>\n

The FARA (Foreign Agents Registration Act) Unit of the US Justice Department said it would conduct a re-scrutiny. Timothy Pugh of the Unit functioning under the Attorney General\u2019s Department said we \u201cwill review the information\u201d forwarded by the registrants.<\/strong><\/p>\n

The move stems from the declarations made by three PR\/lobbying agencies, joined by a fourth just two weeks ago. Whilst disclosing that their client was Sajin de Vass Gunawardena, Monitoring MP for the External Affairs Ministry (EAM), the address has been given as 9\/2 Dudley Senanayake Mawatha, Colombo 8. As exclusively revealed in these columns, there has never been a Government office at this address. It is now occupied by the Korean International Corporation Agency (KOICA). Earlier, the office of Cosmos Aviation, a helicopter fleet operator where Vass Gunawardena is a director, was located in the premises.<\/p>\n

In terms of the FARA, any person who wilfully violates provisions in any registration statement is liable, when proved, for a fine of not more than US$ 10,000 or imprisonment for more than five years. For some offences, the punishment is not more than $5,000 or imprisonment of not more than six months, or both.<\/p>\n

It came to light this week that another PR\/lobbying agency Vigilant Worldwide Communications, 85-1466 Road, Rego Park, New York 11375 has been hired for the \u201cOffice of the Monitoring MP for Ministry of External Affairs.\u201d Dated July 31, the FARA declaration says this firm has been engaged for six months at a cost of $5,000 a month or a total $ 30,000 dollars.<\/p>\n

<\/p>\n

The signatory to the agreement with Vigilant World Wide Communications is \u201cBeltway Government Strategies Inc. (for the Government of the Democratic Socialist Republic of Sri Lanka Office of the Monitoring MP for the Ministry of External Affairs). Signing for Vigilant is Blaze Wharton, \u201cManaging Member.\u201d The purpose, the declaration says, is to \u201cdevelop a strategic communications plan and conduct outreach to Members of the Congress and other US government officials with the purpose of raising awareness of Sri Lanka\u2019s strategic importance to the US. Registrant shall monitor congressional and administration activities that impact on Sri Lanka.\u201d<\/p>\n

It may be recalled that Beltway Government Strategies Incorporated based in Los Angeles was hired by Vass Gunawardena. This was with the help of a US citizen of Pakistani origin, Imaad Zuberi who is touting his relations with President Barrack Obama, to win deals. Among other matters he was Vice President for the US president\u2019s re-election fund raising campaign. Thereafter, in a convoluted exercise Beltway signed up with three different PR\/lobbying agencies on behalf of Vass Gunawardena as Monitoring MP. They are (1) Burson Marsteller LLC for US$ 75,000 a month (more than US $900,000 a year). Principal address: 9\/2 Dudley Senanayake Mawatha, Colombo 8; (2) Madison Group for US$ 15,000 a month. Principal address: 9\/2 Dudley Senanayake Mawatha, Colombo 8; (3) R & R Partners for US$ 35,000 a month (US$ 420,000 a year). The Principal Address is the Presidential Secretariat, Colombo 1.<\/p>\n

Vass Gunawardena was in Los Angeles. Last Sunday. He was present at a gala dinner for Ed Royce, Chairman of the US House of Representatives Committee on Foreign Relations. He represents California\u2019s 39th Congressional District. Among those present was Imaad Zuberi, the go-between who arranged for the latest collection of PR\/lobbying firms for Sri Lanka with Vass Gunawardena. Zuberi, was also a donor to Obama\u2019s Presidential Inaugural Committee \u2013 2013.
\nAccording to reports from Washington DC, a deal with yet another PR\/lobbying firm is in the making. It will be with Nelson, Mullins, Riley and Scarborough of 1320 Main Street, 17th Floor, Columbia, South Carolina 29201. It is yet to go for registration. US law requires that an agent must register within ten days of agreeing to become an agent before performing any activities for a foreign principal. The Nelson Mullins account is to be worked on by Sri Lankan born lobbyist Vinoda Basnayake together with Bob Crowe. Basnayake joined Nelson Mullins from Patton Boggs which recently merged with Squire Sanders.<\/p>\n

Whilst the fee to be charged from the Government of Sri Lanka by Beltway and Nelson Mullins is still not clear, the total amount to be given to the other PR\/lobbying agencies (arranged for by Vass Gunawardena) works out to US$ 1,380,000 or more than Rs. 179.4 million for one year. This amount is without the payment the Central Bank of Sri Lanka (CBSL), which has now chosen Liberty International Group LLC from August 2014 for one year. This agency will receive an annual fee of US$ 760,000 (or over Rs. 99 million) from the CBSL. The grand total Sri Lanka will pay for PR\/lobbying firms in the US will thus be a staggering US$ 2,140,000 or over Rs. 278.2 million. These funds could have easily gone to equip poor schools or launch income generating projects which could have lowered unemployment if only the Government appointed competent people to its embassy in Washington and adopted a more prudent foreign policy approach with the US.<\/p>\n

The Central Bank of Sri Lanka (CBSL) in a statement last Wednesday confirmed the revelations in these columns that it has now hired Liberty International Group LLC from August this year. This is after it had ended the contract with Thompson Advisory Group (TAG), to whom it paid millions. Here are excerpts from that statement:<\/p>\n

\u201c\u2026\u2026. .a robust Communication Programme in the USA\u2026.. has been fashioned to create and maintain a conducive political and economic environment in the USA to enhance Sri Lanka\u2019s long-term political and economic aspirations, and to develop a comprehensive information platform where decision makers in the USA would receive clear and accurate information about conditions in Sri Lanka so that it would serve to attract a higher volume of private sector investments\u2026\u2026. The Programme of the Central Bank has been devised in accordance with the Monetary Law Act\u2019s mandatory objectives of realizing economic and price stability and financial system stability..\u2026..\u201d<\/p>\n

CBSL Governor Ajith Nivard Cabraal also made a lengthy statement to the Sunday Times. Here are relevant extracts: \u201c\u2026\u2026\u2026Since the end of the conflict in May 2009, the Central Bank has observed with deep concern, that well-organised and well-funded sections by certain members of the Tamil Diaspora and the local and international media, have been trying to convey inaccurate stories which are detrimental to Sri Lanka, which if allowed to continue unchecked and unchallenged, could affect the image of the country and the economy.<\/p>\n

\u201cSince the end of the conflict, many investments have flown into the country, based upon the benign conditions as well as robust economic growth that has been experienced since then. However, some of the Tamil Diaspora and the media yet continue their efforts to discourage foreign investments into Sri Lanka.<\/p>\n

\u201cIt was in that context, that the Monetary Board decided to implement a comprehensive overseas campaign to provide an accurate account of the Sri Lankan political and economic environment to US leaders, think tanks, investors, business chambers and interested citizens to keep them abreast of the true situation in the country. In order to carry out such a campaign effectively and successfully in the USA, the normal practices in the USA have to be followed, based upon proper advice and effective interventions\u2026..\u201d<\/p>\n

Well, good and noble indeed but for the absolute transparency ensured by US laws. It has bared an entirely different reality. The CBSL statement and that of of Governor Cabraal do not answer the questions raised in these columns last week. How was one agency replaced and another chosen? Was it through a transparent process and were tenders called? Or was it the choice by one person or more to select the firm of a retired House of Representatives member? There are 435 representatives in the House and 100 members in the Senate. Hence, how could just one such retired person \u201cre-calibrate\u201d US foreign policy as the Central Bank has sought? Was Cabinet approval obtained? Were the Ministries of External Affairs and Mass Media consulted? Was there a concerted joint strategy with the other arms of the Government doing the same thing? All this is because public funds are being used and squandered to build this claimed \u201cinformation platform\u201d and a more \u201cbalanced\u201d US policy towards Sri Lanka.<\/p>\n

The CBSL, as is clear, cannot function as a parallel Government and take cover under what it claims are \u201cmandatory objectives\u201d that supersede those of the Cabinet of Ministers. Previous Monetary Boards have not resorted to this. Even President Rajapaksa (who is also the Minister of Finance and Planning) seeks approval of the Cabinet of Ministers for projects or other tasks even when the amounts involved are a few thousands of rupees and not millions. The CBSL also does not say why it did not believe that the Sri Lanka Embassy in Washington DC could execute \u201cmandatory\u201d objectives or build an \u201cinformation platform\u201d? Is it because the CBSL too believes the embassy was and still is incapable and hence it was \u201cmandatory\u201d for the CBSL to outsource?<\/p>\n

Nor does the statement explain how the \u201cmandatory objectives of realising economic and price stability and financial system stability\u201d are achieved by making payments as fees to a limousine driver? This was when the CBSL hired its previous PR\/lobbying firm. It was this driver who has been chauffeuring around the TAG President Robert J. Thompson in Washington DC.<\/p>\n

We revealed in our columns that US$ 683,635 (or over Rs. 88.87 million) was paid to TAG last year. Of this amount, last year\u2019s payment to Tilak Mohan Siriwardena, the limousine driver, included US$ 34,675 (or more than Rs. 4.5 million). He has to be the highest paid driver of the Government of Sri Lanka. Of this amount, US$ 7000 was \u201cto compensate him for his time in participating on the fact finding trip to Sri Lanka.\u201d Siriwardena came to Sri Lanka accompanying a TAG delegation and had the opportunity of seeing the country of his birth, meeting relatives and friends at Sri Lankan taxpayer\u2019s expense. What facts did he find? How did he help the so-called information platform? This is besides Siriwardena\u2019s monthly fee of US$ 7,000 (or over Rs. 910,000).<\/p>\n

How does the CBSL justify paying almost a million rupees every month to a limousine driver in the US? It would be in the public interest for CBSL to explain the driver\u2019s qualifications and what was achieved by TAG last year that led to economic, price and financial stability in Sri Lanka. The CBSL should also say why such achievements could not have been carried out by the Sri Lanka Embassy. Surely if there was no one qualified, the monies spent on an agency could have easily been used to recruit and train qualified local talent? More than 66 years after independence, CBSL does not seem to believe in this. Why?<\/p>\n

The Sunday Times has obtained further details from FARA records which give the purposes for which funds were paid by the Central Bank to TAG last year. On April 16, 2013, US$ 13,044.92 (or over Rs. 1,695,839.60) was paid for \u201cmeals and miscellaneous\u201d expenses. It was not just a case of paying the driver but feeding him and the others. On the same date, a further US$ 14,930 has been charged for \u201ctransportation.\u201d On August 26, 2013 a fee of US$10,000 has been charged for \u201cCreative Response Concepts.\u201d A total of US$ 62,000 (over Rs. 8,060,000) has been paid to one Adriaan Verheul though the tasks carried out have not been explained. One can even understand if this money was for some covert exercise to win over enemies and influence friends, but then it must produce results. What are these results that the CBSL has to show?<\/p>\n

The saga of the PR\/lobbying firms and how they are hired willy nilly by powerful persons in the UPFA Government ostensibly to win over the Obama Administration and change (or \u2018re-calibrate\u2019) its policies towards Sri Lanka raises more questions than it answers. Matters are made worse when some maintain a stoic silence whilst others are engaged in laughable semantics better explained by the Sinhala adage koheda yanney, malley pol or \u2018Where are you headed? There\u2019s coconut in the bag\u2019. The saga tells the story of what happens when there is a government within a government. Financial Regulations, Administrative Regulations and other procedures are ignored.<\/p>\n

Courtesy:Sunday Times<\/strong><\/p>\n

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Revelations in the Sunday Times in the past two weeks have prompted a review of mandatory information forwarded to the US Department of Justice by public relations (PR) and lobbying firms assigned by Sri Lanka using vast sums of public money. The FARA (Foreign Agents Registration Act) Unit of the US Justice Department said it …<\/p>\n

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