Obama ponders own recovery plan

world news
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Obama ponders
own recovery plan
Gates warns Europe it has
gone too far in de-militarising
WOODSTOCK (AFP) - US Defence
Secretary Robert Gates warned Europe Friday that it had gone too far
in de-militarising and should rebuild
its defences at a time of uncertainty
over Russia’s intentions.
Gates delivered the warning in
a major policy speech at Blenheim
Palace, the birthplace of Winston
Churchill, in which he called for a
mixture of resolve and restraint in
dealing with Russia.
But he told an audience of business
leaders, analysts and foreign policy
thinkers that NATO’s core commitment to come to the defence of any
member nation under attack “must
mean what it says.”
“One of the triumphs of the last
century was the pacification of Europe after ages of ruinous and bloody
wars,” he said.
“But I believe we have reached an
inflection point, where much of the
continent has gone too far in the other direction.
“De-militarisation has gone from a
blessing into a potential impediment
to achieving real and lasting peace,
as real or perceived weakness is always a temptation to miscalculation
and aggression,” he said.
It was the second time in as many
days that a senior US administration
official had spoken out on Russia, following a speech Thursday by US Secretary of State Condoleezza Rice.
Gates was speaking at an event
hosted by a private consultancy firm
with ties to Oxford University.
He earlier attended an informal
meeting of NATO defence ministers in London to discuss how to respond to Russia’s August 8 invasion
of Georgia after it tried to retake the
breakaway province of South Ossetia by force.
He said Europe and the United
States would help Georgia rebuild,
and would soon be reaching other
decisions that could affect Moscow’s
quest to join the World Trade Organization and the Organization for
Economic Cooperation and Development.
Georgia’s bid to join NATO, which
incensed Moscow, has sparked debate
within the alliance over what would
have happened if the former Soviet
republic had been a member.
“We need to be careful about the
commitments we make, but we must
be willing to keep commitments once
made,” he said.
Gates noted that only five of 26
NATO members met the alliance
standard of spending two percent
of their gross domestic product on
defence. Despite having more than
two million Europeans in uniform,
“the alliance nonetheless struggles
to scrape together a few thousand
more troops and a few dozen helicopters for our commanders in Afghanistan,” he said.
“The goal must be to come together
and take the steadfast and prudent
steps now -- political, economic and,
when appropriate, military -- to shape
the international environment and
choices of other powers.
“We must try to prevent situations
where we have only two bleak choices: confrontation or capitulation,
1914 or 1938,” he said, referring to the
circumstances that led to World Wars
I and II.
MIAMI(AFP) - US Democratic presidential nominee Barack
Obama pondered his own economic rescue plan Saturday, saying his White House rival John
McCain was flailing at a time
of financial crisis and a government rescue for Wall Street must
shield regular Americans too.
The rivals navigated a presidential race transformed by the
global economic storm as President George W. Bush’s administration readied the biggest rescue package in decades for the
crippled financial sector.
Obama said he would present
his recovery blueprint once the
Treasury and Federal Reserve
plan is known, as McCain proposed a trust to intervene before
financial institutions approach
bankruptcy.
The New York Times reported
Saturday the administration’s
rescue package, whose cost is estimated to reach 500 billion dollars, calls for buying assets only
from US financial institutions
-- but not hedge funds -- and hiring outside advisers who would
work for the Treasury Department.
The Republican also laid into
Obama, accusing him of taking campaign cash and counsel
from some of the big-business
architects of the crisis.
“Senator Obama may be taking their advice and he may
‘Over 500’ Indian troops have HIV
More than 500 soldiers belonging
to an elite paramilitary force in India
are infected with HIV, the chief of the
force has said.
Seventy troops of the 173-year-old
Assam Rifles have died of the infection in the past 10 years, according
to Lieutenant General Karan Singh
Yadava.
Many of the Assam Rifles troops
are posted in north-eastern India and
are engaged in fighting local insurgencies.
India has one of the highest numbers of people with HIV in the world.
Lt Gen Yadava said the force is or-
ganising sex education lessons for
troops.
“We have asked our men to curb the
menace (of HIV infections) with full
strength,” he said.
The Assam Rifles are recruited and
deployed in the north-east of India where they help maintain security or
quell insurgencies in states such Manipur, Mizoram and Nagaland.
They are posted in areas close to the
Burmese border which have some of
the highest rates of HIV infection in
India.
Abuses
Analysts say the easy availability
of narcotics from Burma - and the local tendency to inject them through
the multiple use of syringes - is the
main cause for such high prevalence
of Aids.
But they say members of the Assam
Rifles mainly get infected through
unprotected sex rather than through
drugs use. Assam Rifles troops have,
in recent years, been accused of forcing local women into having sex with
them. In 1987, the force launched Operation Bluebird in the Oinam area
of Manipur after Naga separatists
looted more than 100 weapons from
their camp.
Anti-India strike
brings Kashmir
to a halt
John McCain. AFP PHOTO
McCain demands end
to Obama ‘lectures’ on
finance crisis
GREEN BAY(AFP) - Republican
candidate John McCain on Friday
accused White House foe Barack
Obama of gaming the Washington
system and taking cash and counsel
from the architects of the US financial crisis.
McCain sketched an economic recovery plan including the establishment of a trust designed to intervene before financial institutions
approach bankruptcy and warned
the finance sector had forfeited the
public trust.
“This is the problem with Washington, people like Senator Obama
have been too busy gaming the system and haven’t ever done a thing
to actually challenge the system,”
McCain said in the battleground
state of Wisconsin.
“We’ve heard a lot of words from
Senator Obama over the course of
this campaign.
“But maybe just this once he
could spare us the lectures, and
admit to his own poor judgment in
contributing to these problems.
“The crisis on Wall Street started
in the Washington culture of lobbying and influence peddling, and he
was square in the middle of it.”
McCain hammered Obama for
choosing Jim Johnson, the former
chief executive of the Fannie Mae
mortgage giant that was taken under government control this month,
to be part of his vice presidential
selection team.
“While Fannie Mae was betraying the public trust, somehow its
former CEO had managed to gain
my opponent’s trust to the point
that Senator Obama actually put
him in charge of his vice presidential search,” McCain said.
Johnson stepped down from the
selection committee earlier this
year after it was revealed he had received a low interest loan.
A new McCain ad claimed that
Obama was also being advised by
another former Fannie Mae chief,
Franklin Raines, but Raines denied
he has ever helped the Illinois Democrat.
McCain also accused Obama of
hypocrisy after taking campaign
contributions from executives of
Fannie Mae and its twin mortgage
giant Freddie Mac which is also
now under the government’s wing.
According to the independent
Center for Responsive Politics
which tracks campaign spending,
Obama is the second highest recipient of individual and political action committee contributions from
Fannie Mae and Freddie Mac employees among current lawmakers
-- a total of 165,000 dollars.
McCain has taken 21,500 dollars
in such funds, though like Obama
has tapped Wall Street as a source
of millions of dollars of campaign
cash.
“Senator Obama may be taking
their advice and he may be taking
their money, but in a McCain-Palin
administration, there will be no
seat for these people at the policymaking table,” McCain said.
“They won’t even get past the
front gate at the White House.”
McCain also expanded Friday
on his plan for a Mortgage and Financial Institutions trust (MFI) designed to identify and rescue financial firms before they teeter on the
brink of collapse and threaten the
wider economy.
“The MFI is an early intervention
program to help financial institutions avoid bankruptcy, expensive
bailouts and damage to their customers,” he said.
“The MFI will restore investor
and market confidence, build sound
financial institutions, assist troubled institutions and protect our
financial system while minimizing
taxpayer exposure.”
SRINAGAR (AFP) - An anti-India
strike called by Muslim separatists
shut shops, schools and offices in
revolt-hit Kashmir Saturday in the latest protest to hit the scenic region.
The strike, called by a separatist
committee spearheading recent antiIndia demonstrations in the Muslimmajority Kashmir valley, emptied
streets of all traffic.
“Saturday’s strike is to demand
the right to self-determination for the
people of Kashmir,” leading separatist chief Mirwaiz Umar Farooq said.
Separatists have been demanding
a UN-supervised referendum giving
people the choice of independence,
staying with India or joining Pakistan.
Nuclear-armed India and Pakistan
hold the region in part but claim it in
full. They have fought two of their
three wars over Kashmir.
On Friday, 20 people were wounded in clashes during fresh protests
against New Delhi’s rule in Kashmir,
ending a week of calm in the restive
region.
Police and residents said similar
shutdowns were being observed in
other towns of the Kashmir valley.
Riot police were deployed in
strength to prevent any violence,
police said.
In the past few months, Kashmir
has witnessed the biggest pro-independence demonstrations since
the separatist insurgency erupted in
1989. The protests have been met
by a tough crackdown by Indian security forces.
Since June, 42 Muslim and three
Hindu protesters have been shot
dead by security forces in unrest
sparked by a state government plan
to grant land to a Hindu pilgrim trust.
Kashmir
CHINA
Pakistan-held
Kashmir
Line of
Control
IndianSrinagar held
Kashmir
Jammu
ISLAMABAD
PAKISTAN
100 km
INDIA
Mass Muslim
protests against
Indian rule
CHINA
PAKISTAN
NEW
DELHI
INDIA
ARABIAN
SEA
190908
Bay of
Bengal
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The Nation Special, Sunday September 21, 2008
be taking their money, but in a
McCain-Palin administration,
there will be no seat for these
people at the policy-making table,” McCain said. Alaska Governor Sarah Palin is McCain’s
running mate.
“This is the problem with
Washington, people like Senator Obama have been too busy
gaming the system and haven’t
ever done a thing to actually
challenge the system,” he said
in the battleground state of Wisconsin.
“Maybe just this once he could
spare us the lectures, and admit
to his own poor judgment in contributing to these problems.”
At a later rally in Minnesota,
McCain added: “That’s not country first. That’s Obama first.”
The crowd responded with
chants of “Nobama!”
Obama, at his own rally in
Florida where he assailed McCain on women’s issues, said
that in the Republican’s remarks, “his big solution to this
worldwide economic crisis was
to blame me for it.”
“This is a guy who’s spent
nearly three decades in Washington. After spending the entire
campaign saying I haven’t been
in Washington long enough, he
apparently now is willing to assign me responsibility for all of
Washington’s failings,” he said.
“I think it’s pretty clear that
Senator McCain is a little panicked right now. At this point
he seems to be willing to say
anything, or do anything, or
change any position, or violate
any principle to try and win this
election.”
Obama’s rally came after he
convened a meeting in Coral Gables, Florida of his top economic
advisers including former Treasury secretaries Robert Rubin
and Larry Summers, and exFederal Reserve chairman Paul
Volcker.
The Illinois senator, who has
bounced back into a lead of a
few points in the race ahead of
the November 4 election, according to national polls, called for
calm and bipartisanship.
“John McCain and I can continue to argue about our different economic agendas for
next year, but we should come
together now to work on what
this country urgently needs this
year,” he said.
While the Democrat appealed
for an “emergency economic
plan for working families,” McCain said Obama was being advised by former top executives
at the scandal-ridden Fannie
Mae mortgage giant, which was
taken over by the government
this month.
Obama’s campaign in turn
pointed to the presence of seven
influential former corporate
lobbyists at the highest ranks of
McCain’s campaign staff, as each
side vied to portray the other as
beholden to vested interests.
McCain expanded Friday on
his plan for a Mortgage and Financial Institutions trust.
“The MFI is an early intervention program to help financial
institutions avoid bankruptcy,
expensive bailouts and damage
to their customers,” he said,
battling to stay on the offensive
after a week of adverse media
coverage.
Obama recapped McCain’s
evolution from Monday, when
he said the US economy was fundamentally “strong,” via his opposition Tuesday to any bailout
for the giant insurer American
International Group, to backing
the government’s rescue deal for
AIG Wednesday.
Israel’s Livni vies to unite
party after leadership win
TEL AVIV (AFP) - Foreign Minister Tzipi Livni sought on Friday
to restore unity within Israel’s governing Kadima party as new rifts
emerged in the wake of her narrow
victory in the party’s leadership
election.
Livni met top party members to
try to stress the need to close ranks
as the centrist party seeks to form a
new coalition government.
After the meeting, Livni told journalists she wanted to form a government “as soon as possible, as long as
everybody acts responsibly.”
Livni won Wednesday’s vote to replace scandal-plagued Prime Minister Ehud Olmert as party leader,
but she may struggle to find enough
coalition partners to command a
parliamentary majority and avert
early elections.
She faced her first challenge
hours after winning the vote with
a lead of just one percentage point
over her main rival, Transport Minister Shaul Mofaz.
Evidently disgruntled, Mofaz, a
hawkish former army chief, said on
Thursday he will take a break from
politics in a move Israeli media
called a “bombshell.”
Senior figures in Kadima defined
Mofaz’s decision as “crushing the
party,” the Maariv daily said, amid
media speculation the minister
could return to the right-wing opposition Likud party that he, Livni
and Olmert left in 2005.
Livni, a 50-year-old former Mossad spy who has been leading the
US-backed peace negotiations with
the Palestinians, will have 42 days
to form a new coalition if early
parliamentary elections are to be
avoided.
At Friday’s Kadima meeting,
which was marked by the absence
of Mofaz, Livni made it clear she
hoped to maintain the current alliance with the centre-left Labour
party and the religious party Shas.
“There is no reason to change the
set-up of the coalition,” she said.
Labour members have reportedly
sent out mixed messages, with some
Tzipi Livni
demanding a renegotiation of coalition agreements and party leader
Ehud Barak calling for snap elections.
Barak, who is also defence minister, had previously threatened to
bring down the government unless
Olmert quit, but he relented when
the beleaguered premier announced
he would go.
Likud is likely to be the main beneficiary if early elections are held.
Opinion polls suggest that it would
emerge as the largest party and that
Negotiators fail to end
Zimbabwe cabinet impasse
HARARE (AFP) - Negotiators for
Zimbabwe’s political leaders failed Friday to agree on key ministries, with the
main opposition saying it will not be
“mere accessories” in another ZANUPF government.
“The negotiators met but they could
not come to an agreement,” Nelson
Chamisa, spokesman for the Movement for Democratic Change (MDC),
told AFP, saying there was no shift of
position on the part of the longtime
ruling party.
“They are insisting on having all the
key positions and we are saying let’s
have genuine inclusive power-sharing... We will not allow ourselves to be
mere accessories in another ZANU-PF
government.”
He said discussions between the negotiators would continue. “It’s a negotiation and we will continue to discuss
issues until we carve out a deal.”
President Robert Mugabe, MDC
leader and prime minister-designate
Morgan Tsvangirai, and deputy prime
minister-elect Arthur Mutambara
failed Thursday to agree on the cabinet
posts and referred the matter to their
negotiators.
The spokesman for Mutambara’s
breakaway MDC faction, Edwin Mushoriwa, told AFP that a decision on the
cabinet posts would now be on hold until Mugabe returns from the UN General Assembly.
“It won’t be possible to resolve the issue in the absence of one of the principals, President Mugabe, who is leaving
for the UN assembly in New York,” he
said.
State television confirmed Mugabe
was leaving for New York later Friday.
Although Mugabe’s party has not yet
officially announced that he will be going to the United Nations, the veteran
leader travels annually to the general
assembly, which on Monday will hold a
debate on African development.
Mugabe, Tsvangirai and Mutambara
signed last Monday a power-sharing
deal that set out a framework for a
multi-party government in order to
break an electoral deadlock.
ZANU-PF was allotted 15 portfolios
in the new cabinet, Tsvangirai’s MDC
13 and Mutambara’s faction three.
Political analysts said Friday that
ZANU-PF’s leaders were not used to
sharing power.
“This is also an indication that
Mugabe’s hardliners are trying to
throw spannners in this deal as they
are afraid that they will lose out in the
deal. They have been used to getting
almost anything for free,” said Charles
Mangongera, an independent analyst
based in Harare.
But Mangongera believed this would
not derail the deal, adding that the 5050 power-sharing arrangement should
reflect the agreement and not allow
the MDC to get “Mickey Mouse ministries”.
Bornwell Chakaodza, a political
commentator and columnist in the privately-owned Financial Gazette newspaper, also told AFP that the deadlock
Registered as a newspaper in Sri Lanka
W
was temporary.
ZANU-PF still wanted to cling on to
powerful ministries such as defence,
home affairs, finance and information.
“But they must know that they cannot have their cake and eat it. They
must be prepared to share. They must
realise this is a matter of give and
take.”
Mugabe told the ZANU-PF central
committee on Wednesday that party divisions during elections in March had
cost him a winning majority in the first
round of the presidential election.
“One keeps asking if only we had not
blundered in the harmonised election
we would not be facing this humiliation,” he said.
But the veteran leader, in an address
broadcast live on television, went on
to assure his party that it remained in
“the driving seat” and “will not tolerate any nonsense from our new partners.”
The 84-year-old Mugabe also called
on ZANU-PF leaders to explain to Zimbabweans that the new deal meant
former opponents were now political
partners.
ZANU-PF lost its parliamentary majority for the first time to Tsvangirai’s
MDC in March elections, while Mugabe
failed to win presidential elections outright.
However the veteran president kept
his job in June after Tsvangirai pulled
out of a run-off poll, saying his supporters were in danger from violent
attacks blamed on ZANU-PF.
Washington to review developments from their
last meeting on July 19.
The gathering was also to help prepare for a
meeting next week of Secretary of State Condoleezza Rice and her five counterparts on the
sidelines of the UN General Assembly, according to the statement read by a State Department spokesman.
The political directors from the various foreign ministries and the State Department “reaffirmed their collective commitment to the dualtrack strategy” of offering incentives to Iran if it
cooperates or punishment if it does not.
Apart from exploring possible further sanctions, the six also agreed they would “continue
to encourage Iran to accept the generous offer of incentives that was presented to Iran in
June.”
They also discussed the concerns raised in
the September 15 International Atomic Energy
Agency (IAEA) report and “strongly urge Iran to
cooperate fully with the IAEA’s investigation,”
the statement said.
The IAEA, the UN’s atomic watchdog, said
Iran had not frozen uranium enrichment activities as instructed by the United Nations.
Radical Hindu leader held for anti-Christian attacks
NEW DELHI (AFP) - A radical Hindu leader
has been arrested in southern India over a spate
of attacks targeting Christian churches, officials
said Saturday.
Police in the southern state of Karnataka
said Mahendra Kumar, head of the Bajrang Dal
radical Hindu group, was arrested overnight in
connection with the attacks which began last
weekend.
Senior police officer A. M. Prasad, confirm-
ing the late Friday arrest, said Kumar would be
charged with criminal offences.
The arrest came a day after New Delhi told
the Hindu nationalist government in Karnataka
to “bring the situation under control.”
Almost 20 churches in Karnataka were attacked over the weekend, following similar
clashes in the eastern state of Orissa which left
nearly 20 dead.
The Orissa violence, triggered by the mur-
der of a Hindu priest and four followers, forced
thousands of people, mostly Christians, to flee
their homes and many are still living in state-run
camps. Hindu-Christian violence occurs periodically in India, where 2.3 percent of the country’s
population of more than 1.1 billion are Christians.
Hardline Hindus accuse missionaries of “bribing”
poor tribals and low-caste Hindus to convert to
Christianity by offering free education and health
care.
P5
LIVING
clude the Sinhalese from any solution we arrive at”, he said.
Addressing media heads yesterday at Temple Trees, he noted
that he had already called for a
report from the All Party Representative Committee (APRC). “It’s
upto them to submit it. Through
the APRC report and the resulting
political solution, we are trying to
address grievances of the minori-
Peace delayed
ties,” Rajapaksa said.
However he said there are practical problems.
The President was of the view
that the opposition will naturally
oppose this, as this has been the
practice so far. “I haven’t done this
because of any pressure. In any
case, we were planning a political
solution and finally it will be a political solution and not a military
“I am not an expert
in defence; I am not an
expert in anything. But I
have experts around me
on everything, who ad-
The much awaited final report of
the overly hyped All Party Representative Committee (APRC) has ended
in a farce. APRC has failed to submit
its main document in keeping with a
deadline specified to the committee
by President Mahinda Rajapaksa,
which is today.
However, instead, the APRC will
hand over a mere one and a half
page long document outlining the
committee’s recommendations on
how to maximize devolution under
the 13th Amendment to President
Rajapaksa today at an auspicious
time in keeping Sri Lankan traditions, The Bottom Line learns.
The document recommends the conducting of elections in the Eastern
Province and as a temporary measure to establish an interim set up for
the Northern Province, which will be
UNP not surprised
..See on page 5
identified as the Interim Executive
Council.
The committee’s chairman, Prof.
Tissa Vitarana admitted to The Bottom Line that although the APRC
was initially scheduled to hand over
its main report, also today, along
with the recommendations on how to
implement the 13th amendment, last
minute inputs by some of the APRC
members had resulted in the delay
in handing over the main document,
which has been much awaited, even
internationally.
“We have almost finalized the main
proposal, aimed at finding a solution
to the ethnic conflict,” he said while
adding that they had a few more additions to make.
The main parties, who have been
allegedly instrumental in delaying
the final report, are government allies, Mahajana Eksath Peramuna and
Jathika Hela Urumaya. They have
demanded a reduction in the level of
devolution offered to the provinces.
Contd.on page 3
solution,” Rajapaksa asserted.
Referring to the abrogation
of the Ceasefire Agreement, the
President said that while he had
patiently tolerated the LTTE’s violations for the past two years, he
was now compelled to abrogate the
Agreement after the LTTE started
harming the civilians.
President Mahinda Rajapakse yesterday refuted recent allegations on
the Karuna Amman controversy saying
that the government did not issue a
The Janatha Vimukthi Peramuna (JVP)
which has been at the receiving end, af-
ter they virtually helped the government
win the 2008 Budget, is set to put its foot
down today, amidst skyrocketing cost of living,
demanding that the President Mahinda Rajapaksa led government take immediate steps to
find a solution to the burning issue.
While emphasising that the war was no excuse for the gruelling price hikes in almost all
consumer goods, including essential items, the
JVP General Secretary Tilvin Silva announced
that the masses will congregate from all parts
of the country, beginning today, till January 29,
demanding immediate relief.
“The government cannot say that the cost of
living is high because of the world market. Perhaps they can blame the fuel hike on the world
market, but they cannot use that same argument for the prices increases of rice and vegetables. They cannot blame it on the war either.
There is no connection with the increase of rice
prices and the war. The government is totally
responsible. The monopoly of the mill owners
should be changed and a proper mechanism
brought in for distribution,” Silva said.
Contd.on page 3
concerned,” President
conceded
Rajapaksa
yesterday during his
meeting with editors and
senior journalists.
DPL passport to Karuna. “It was a DPL
endorsement, but it was not issued to
Karuna. I don’t know how he got it,” he
said.
UK, India want
something
‘credible’ from
Sri Lanka
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Pic by Ishara S Kodikara
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By Jayashika Padmasiri
3 sections
Mahinda in the dark over ‘DPL’ Karuna
Contd.on page 3
Let there be peace
Enough is enough – JVP wants everything down
Pages 28
ay
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vise me on how to carry
out everything. I listen to
them and others around
me. I can manage well
as I listen to the people
!
By Munza Mushtaq
sd
I am not an expert in anything - President
President Mahinda Rajapakse yesterday declared that
he didn’t believe in a military
solution for the present crisis.
“What we yearn for is a
political solution. The solution will not be for terrorists. It will be for discerning Sinhalese, Tamils
and Muslims. I can’t ex-
JANUARY 23 , 2008
Vol : 01/25
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Sport
P1
MONEY
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EX-FILES
Mahinda says too many cooks will spoil his soup
ed
As World Cup
hosts Sri Lanka
to get US $4.5m
Rs. 1.3 b extra
windfall for JKH
shareholders
De-politicise
universities
– Tara
Sri Lanka
tourism
captivates India
The United Kingdom and India yesterday urged the Sri Lankan Government to
put forward a ‘credible’ package which
will be acceptable by all communities.
In a joint statement issued on Monday,
Gordon Browne, Prime Minister of United
Kingdom and India’s Prime Minister Manmohan Singh reiterated that there is no
military solution to the Sri Lankan conflict.
“They agreed that there is no military
solution to the conflict in Sri Lanka, and
urged the Sri Lankan Government to put
forward a credible devolution package as
a key contribution to finding a political
settlement acceptable to all communities within the framework of a united Sri
Lanka,” the joint statement signed by the
two premiers said. The statement was
issued following the India-UK annual
Summit which was held in Delhi on January 21, 2008.
The delegation from the United Kingdom was led by Brown while the Indian
delegation was led by Singh.
SriLankan to sue Mihin for Rs 100m non-payment
Emirates-managed national carrier SriLankan Airlines has threatened government-owned budget Mihin Lanka, it would be sued, if over
Rs. 100 million due for ground handling and other services provided, is
not settled.
The warning, in writing, by SriLankan Airlines CEO Peter Hill, was
communicated to Mihin Lanka CEO
Sajin Vas Gunawardena last week.
Hill’s salvo follows Sajin firing a letter to SriLankan Airlines making
various allegations over the withdrawal of ground handling services
on January 1, 2008, to Mihin Lanka.
Hill has denied Sajin’s allegations
that SriLankan Airlines’ withdrawal
of ground handling services, was in
violation of its obligations to Mihin
Lanka or the Government of Sri Lanka “or that it is a deliberate or insidious attempt to destabilise and disrupt
Mihin Lanka operations, or that our
ground handling charges at BIA are
arbitrary, excessive and not commensurate with the services provided.”
“As such, we will take all necessary
action to resist any claims which
you may make against us in respect
of the non provision of ground handling services to Mihin Lanka,” Hill
Loss-making Mihin on a spend spree at tax payers cost
The controversial government owned
budget airline, Mihin Lanka has launched
a massive publicity drive at a staggering
cost running into millions, The Bottom Line
learns.
Aviation industry sources said that the
airline has launched a massive advertising
campaign on both print and electronic media
on a daily basis advertising its destinations,
also including special offers such as ‘buy
one, get one free,’ promotion.
The airline is also giving away free tickets
on radio channel promotions, it is reported.
However, according to sources, at a time
when Mihin Lanka is not performing satisfactorily, especially profit wise, offers such as
has warned.
Emirates-seconded Hill is due to
retire on March 31, 2008, along with
end of management of SriLankan
Airlines by the award winning major
global carrier.
According to SriLankan Airlines, Mihin Lanka as at January 1,
2008, owed US$ 647,589.54 in respect
of ground handling services, US$
12,121.45 in respect of engineering
free giveaways will only add to the airlines’
woes.
Meanwhile, Mihin Lanka CEO Sajin Vaas
Gunawardena is organising a massive party
for more than 250 travel agents at the luxurious Goodwood Park Hotel in Singapore on
February 1.
The airline, which has been storm-ridden
since its inception, mainly owing to the questionable origination of finances for its setup,
is spending a colossal sum for this latest
tamasha.
The revelry, apart from a sumptuous
buffet, will also feature Channa Wijewardena’s dance troupe and the Mount
Lavinia Hotel’s chef Publis Silva.
and other services provided to you
and US$ 6,311.40 in respect of interline charges. A further US$ 353,222.58
is due to our subsidiary, SriLankan
Catering for catering services uplifted by Mihin Lanka. “All of this
adds up to a total of US$ 1,019,244.97
due and owing from Mihin Lanka to
SriLankan and its subsidiary,” Hill
enlightened Sajin.
Contd.on page 3
Wednesd
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Big powers committed to exploring more sanctions against Iran
WASHINGTON (AFP) - The United States
and five other powers meeting here Friday are
“committed to exploring possible further” sanctions against Iran to halt its sensitive nuclear
work, the State Department said.
The United States, Russia, China, Britain,
France and Germany “remain committed to exploring possible further measures on the second track,” which concerns UN Security Council resolutions, a department statement said.
The foreign affairs political directors from the
so-called P5-plus-one, the permanent UN Security Council members and Germany met in
its leader, hawkish former premier
Benjamin Netanyahu, would then
be asked to try to form a government.
Netanyahu seized on Livni’s narrow margin of victory in the leadership vote to demand early elections, warning that without them
a new government would have no
popular mandate.
“We should allow the millions of
Israeli citizens to choose who will
lead them and not leave such a vital
question in the hands of a few hundred Kadima supporters,” he said
on Thursday.
The third largest party in the outgoing coalition, Shas also set tough
conditions for joining a Livni-led
government.
Party chairman Eli Yishai insisted Shas would not participate
in any governing coalition that was
prepared to negotiate the future of
Jerusalem.
Israel considers the city its eternal and undivided capital, including east Jerusalem which it annexed after the 1967 war and which
the Palestinians demand as the capital of their promised state.
The issue is among the thorniest in negotiations between the
two sides that were revived at a
US-hosted conference in November
but which have made little tangible
progress since.
But German foreign ministry
spokesman Jen Ploetner said the
goal of a peace settlement between Israel and the Palestinians
by the end of the year is “very ambitious.”
In Syria, which is engaged in indirect peace talks with Israel since
May, the official media on Friday
poured scorn on the Kadima election saying it was a contest in extremism.
“Livni won because she spent
four years working for the Israeli
intelligence service and because
her parents were part of a group
which attacked and massacred Palestinians,” said the government
Ath-Thawra newspaper.
9, 2008
y, Januray
Wednesda
Meat, p
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hange
Rupee US$ exc
erse
rate defies adv
– CB
expectations
2
MMBL Money
Transfer holds
tion
seas,
could become
“Such an index
Nihal
sekere
Sri Amere CFE
awarded
designation
war with
Sri Lanka’s hit credit
rebels couldency
ratings: ag
war
escalating
tion of
Sri Lanka’s
hit the
US - The Associa
Tigers could
Austin, TX, Examiners, the world’s
with the Tamil status, an internaand
Certified Fraud of anti-fraud training
last
nation’s credit
Sri
agency warned
leading provider awarded Mr. Nihal d
tional ratings
has
preferre
education,
week.
CFE, the globally
Poor’s Ratings
Ameresekere, Examiner” (CFE) designa
Standard and was maintaining
it
“Certified Fraudknowledgeable in four areas
Bent
Services said
ent grade of
tion. CFEs are against fraud: Fraudul
for
below investm
fight
Ethits
&
the
grade,
to
logy
bond”
critical
tions, Crimino
plus, or a “junkthe time being, an
Financial Transac ts of Fraud and Fraud
Sri Lanka for
ics, Legal Elemen
said.
es,
AFP report
Investigation. Board of Regents awards
ion of hostiliti
onBut “an escalat is a change in
The ACFE’s
select professi
there
tion only to
ic
especially if
this designa a stringent set of criteria,
in which econom d,
rebel tactics
als, who meet r, experience, and edually targete
specific
fully
characte
are
violence.
”
assets
including
of
ekere has success
other for rising
risk to the ratings,
that “signs
cation. Mr. Ameresand now joins the ranks
remain a key Agost Benard said
Benard warned r sentiment,
ent
met these criteriabusiness and governm
credit analyst reply to questions depressed investo
also
revenue genof over 19,000worldwide, who have
in an emailed conflict could af- the impairment of
ge
have
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foreign exchan in
professionals
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about
certifica
to
eration and
ratings.
CFE
a rise
and records
earned the
fect the island’s bloody ethnic earning capacity and could put
Examine data transactions;
iture,”
nt
the ability to:
Sri Lanka’s
more than defence expend
credit
ion
trace fraudule
and
claimed
informat
detect
s to obtain
conflict has
e on the island’s
as Tamil
since 1972 out an pressur
interview suspections;
60,000 lives
its deto carve
confess
rating.
seek
raised
and
has
Tiger rebels
t
Sri Lanka
homeland.
write investiga
g by 20 percen
adindependent
o-based gov- fence spendin billion dollars in
tion reports, to
Colomb
an1.48
The
as
s.
this week
to a record
vise clients and
ernment earlier to formally pull 2008 to battle the guerrillabelieves
their findings be
ment now
nounced plansry 2002 truce pact
The govern hand in the contestify at trial; the
in
out of a Februa on January 16.
well-versed
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to
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is in a
with the rebels
law as it relates inNorwegian-bro l in flict and Tiger mini-state in the
The
fraud and fraudand
the Tamil
began to unrave
peace deal
both sides north.
with our
vestigations; the
g
and
2005
keepin
ue
December have blamed each
understand
zation. “In would also contin
by
ssive; be
, we
in the conflict
underlying factors
ent; be progre
the values ain transparency
indibe confid On the part of
s to the
maint
that motivate
our policie turn,
ly as- to
Mr. Nihal
optimistic.
viduals to commit
we strong
announcing
would, in
Fraud Sri Ameresekere
vebuting to
Central Bank,
fraud. Certified
public, which policy effecti
are contri
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the
faced a
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Examiners
enhance
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ts
Having
’s
said.
and bracin
of the
1 million susSri Lanka ue to benefit from
Nion six continen
ness,” he
unveiling which
ted more than
lenging 2007 year, Governor d
would contin and momentum
have investiga civil and criminal fraud.
With the
ive
nce
tougher newal last week assure
of
an initiat the GovproCabraal
the resilie
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road map,
my,” Mr.
al Bank
2007,
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vider of training
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ernor was Bank’s policies and
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for what
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anti-fraud
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my
whilst maint
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A record eqnomic endeahope that our stateyear is
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tion and t levels apart from
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43 Billion l was
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Chartered Accountant, is also a Member
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it
aining econo stability,”
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shareholder Comof our nation and consider
system
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of them
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fraud and corruptio
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Bank proud honour to be
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better,” Mr.
he said.
the
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panies that l.
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presen
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pick
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says.
choices put the conv counts
up
to sham
woodwo your knit bag of chip “Inentional
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servings
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of
16. Go you need
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out
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ream
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17. Star
wine
that’s
to eat likely
s
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them.
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l
mark
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,”
arch
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total
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with a speci
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India
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scientis heat from clim
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ate chanfeelResearchsay.
ge,
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tablish
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s, she said. oppor- been
regular d increase their
The worl
intake of
G
In
honoured
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vegetables
green Sharmreply to a quest
the
on
ion, India’ Padma Vibhu with
bear theucers or conspoor, whetha said
E
improve and pulses to
P
shan,
nology has that biotechs secon
who endebrunt, war umers, will
develop resistance and
civilian award d highest
A
ned
role to play an important
d
scie
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day on
As an
biotechnologood health,
, counselled
erence ntists ver,
children
in applic
example,
G
area
change agriculture
Satura dead
Sharma gist
Manju Bio-in of nano-tech ation advised to take food as
ly viru rift valley
advis
sheep,
nolog
India. in Hyderab and climate
by
ed
E
forma
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s tran
their paren
students
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by mos
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quito bite els and hum
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ay.
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gs is alre
Talking
time for
rice, eggs
, pulses,
diseases
have
gy is
change,
g fuell
area
said.
John McD
emerging
also
Science to them at the
the scie ed mea not been s where
sistance to improve reermott, ady past,” doof rese
they
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before,
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deputy
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s is
soft drinkspower. Certain
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quest
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be watched
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Bharatiya
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kind and will such as Morgan Stanley
ion of the ions pertaining to bones
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ased
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for emergin
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Sam- rays effects of ultra- to children,
Research
climate Middle East East Africa
“That time,” he said n’t been
read
the region andamong est. Global majors
les of
violet
she
exclusive indices r, is set to y happenine changes
markets of
on huma
.
beca
technology a said, ‘BioMcDermleads to mor
that helpvariability
are alindicator for it could become popular direc- and S&P have
howeve
n body,
Sharma added.
g.”
mation of
e outb
in dry use of
ott
for- techn
SAFE index,
said that
a vital role is going to play
reaks,”
rolling out dequitoes, s vectors
based on
For the added.
regi
managing
markets. The indices.
biofacturing biogas, manuology
such as ons a
is considering ge-traded funds ucts said Deena Mehta, the
y
tsets
of
of the countin development
of bio fertiliz
breed
livelihoo poor, lives
The SAFE
in a big could be used
group compan
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diaries.
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exchan
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and spree flies and
way
a Dow-Jones
ers qualit
nt Patel as rivatives contracts and
ies of the
dents seeki ry but the stuC Mehta Interme
ticks - bank they d as well tock offers
ad, he
Sources said index.
CEO Rajnika
to cow
as a savi
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s, tor of Asit several booming econom are not
can tap,
said.
Children
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index.
scheme
the
the
an and BSE
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Taiwan
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asked
Chairm
or
Though
designe
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and
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.
ng off
queslaunching offshore
overhealth chickens
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their
Sri Lanka, with saying.
right place must go to the
to
Mutual funds, the corpus is invested
or fam
Medicinal
region such
soft drinks t junk food and
s, Nepal and
the index would
the
and the
ily eme deal with
of
federation,
index.
and right , right teacher
plants
He added that market sentiment in
been
a
Maldives, Mauritiu Exchange (BSE)
rgency
where a part float funds based on the ark members of the
vised them and she adinstitution.’
recklessly have
.
being the bigto gauge the
Bombay Stock
The
a benchm
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The
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ude min
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t
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way
BEIJING
face? Study - Misplaced your
lessen the findings sugge keys? Can’t
place that
by eating frequency of thesest that you may
be
more fish.
ger the effect
And the “senior moments” able to
way. Inves , according to more fish you eat, simply
resea
who more tigators found that rch conducted the bigWhe n
in Norelderly men
j u n
visual concefrequently ate fi
and
k
sh
food beck
tation, and ption, spatial scored better on women
motor
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ten
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tive tests
who ate
were
fi
a notc belt
University sh,” principal autho performed better
by those
so youh. Not
added, the of Oxford, UK, saidr Dr A. David Smith
can’t
breathe,
creased effect was strong Health. Furthermo of the
up to
er
have a but so you
Smith and a limit of about as fish consumptiore, he
gentle
80 gram
er
colleagues
n
of
inthe avera
the size remindassessed s per day.
ge
to be.
you’d
cognitive
ets of 2,031 daily amount
“Th
like
of
ability and
only mea e scale isn’t
old, recru men and wome fish and seafood
n,
says Rob sure of weig the
Norway. ited from the gene between 70 and in the diOverall,
a spok erta Anding, ht,”
ed eating
1951 of ral population of 74 years
eswoman
RD,
the
10
West
Ame
study partic
or more
ern
rica
canned
for the
gram
ipants
fish and
ciation. n Dietetic
seafood, s per day of fresh, reportliver and
Assoor
fi
frozen, or
4. Go
Journal sh oil, the investigatofish products such
public
of
Enlist
pants ate Clinical Nutrition. rs report in the as cod
workers the help
American
less than
The rema
of
10 gram
,
ining 80
friends,
coily —
s daily.
particiand fam
and