Another record braking partnership...

Many raise suspicions regarding the transparency of the selling of 25.3% of the shares, owned by Nippon telegraph and telephone corporation, of Sri Lanka Telecom to a Malaysian company.

The main reasons for suspicions develop is the cabinet paper presented by the finance minister on the 27th of last month seeking the permission of the cabinet to sell the shares to a Malaysian company called Maxies Telecommunications holdings. It is said that the minister of posts and telecommunications is clueless regarding the deal. The finance minister was seeking the approval of the cabinet to okay to sell shares worth 6 billion rupees to the Malaysian company.

The other reason to look into is, why the Malaysian company wants to buy the Sri Lankan Telecom shares. The president has appointed a committee to consider the request made by the finance minister and the committee has its mandate only to consider the particular Malaysian company for the deal.

A question arises as to why the Malaysian GTH company is the best in the world for the deal which will own � of the telecom shares. None of the other companies or agencies from the international have not been invited to quote in either. It seems that this deal is being carried out to fulfill the needs of some one big. On the other hand the 28,000 other share holders who own 15% of the shares too has a right to know the facts and figures of the deal.

Currently the government owns 49.5 %, the Japanese NTV organisation 35.2% and the public 15.3 %. What the government is proposing is to sell 25.3% percent of the shares owned by the Japanese company which leaves the Japanese company with only 9.9% of the shares. According to the constitution of the SLT that was established during the initial public offering anyone who doesn't have over 10% of the shares cannot appoint a representative to the executive board of the company, which means now the Malaysian company could appoint a member of their desire to the executive board. According to the existing rule in the company the government could appoint 5 members to the committee including the chairman while the company holding the next highest percentage could appoint four members including the chief executive officer. It's the CEO who has more authority over the day to day activities of the company, vacancies and financial activities.

The owner of the Malaysian company to which the government is about to hand over the shares of telecom to, Ananda Krishnan's parents are said to be immigrants from Jaffna to Malaysia. The employees of telecom therefore point out that under the existing threat of the LTTE being involved with several financial fraud, this might be a dangerous move. The Telecom Company recorded a net profit of 130 billion rupees last year.

According to information available the shares owned by the Japanese company is worth 225 million US dollars and are to be sold for 260 million dollars. Sources say that an under hand deal of 25 billion rupees will proceed under hand.

After the take over the Malaysian company is planning on cutting down the present 8,000 work force of the company to 3,000 according to the employees. It is also being said that the Malaysian company has been simply given the opportunity to review the overall company.

The Malaysian company's specialty is in mobile telecommunication and sources say that they do not have any experience in handling a cable television network.

According to information available to 'LeN' the background for the deal has been set by a person from Medamulana, namely Medamulana Rathnayake Ralahami. The fianc� of his daughter is suppose to be working for the relevant Malaysian company. Krishna wanted to hit the gold mine through the employee. Therefore the Ralahami had met an old friend who is a top government official and asked for his help to proceed with the deal. Then the top government official had handed over job to his two brothers who are businessmen. One of the brothers are married to a famous actress, reports say. However they did not get the intended BIL of the Ralahami to the deal, instead got a person called Ralf Marshal to co-ordinate the deal from Krishnan's end. The two brothers had in return demanded for money to buy equipment for a radio station which they are suppose to be running. Accordingly Marshal has given them 10 million rupees.

As the two brothers were late on the job the top politician had appointed his private secretary the responsibility and Krishnan too removed Marshal and appointed his nephew Thirukrishnan to go ahead with the deal. The deal where it stands currently is the effort of these two. The top government official too has got the taste of the deal leisurely and is said to be tightening the relationship with Thirukrishnan.

The main reason for suspicions to surface is, the president who said before assuming duties that he would not privatize any government organisation, now looking to hand over the deal to a Malaysian company without a proper tender procedure and to an inexperienced company in cable telephone networks. Another reason for suspicions to develop is the fact that subject minister Rauf Hakeem is also remaining tight lipped.