DMK leader’s family linked to record FDI in Sri Lanka
Posted on March 22nd, 2019

Courtesy Adaderana

A Singapore-based company in which stakes are held by the family members of former Indian Minister of State S. Jagathrakshakan of the DMK has been linked to a record foreign direct investment of $3.85 billion in an oil refinery in Sri Lanka.

However, the recent announcement by Sri Lanka’s Board of Investment (BOI) on the record deal has run into a controversy after Oman, which the Board said was an investor along with the Singapore company, on Wednesday denied being part of the deal.

The Singapore company, Silver Park International Pte Ltd, is putting 70% of the share capital — a total of $1887 million — in the project running into billions of dollars. The remaining, nearly $ 2,000 million, is to be raised as loan capital, sources said.

Silver Park International, named by the BOI, is registered with Singapore’s national regulator Accounting and Corporate Regulatory Authority (ACRA), with three of its four directors — Jegath Rakshagan Sundeep Anand, Jagathrakshakan Sri Nisha and Jagathrakshakan Anusuya – listed with a Chennai address. They are the son, daughter and wife of Mr. Jagathrakshakan, who is the DMK’s Arakonam Lok Sabha candidate. We are aware of the Singapore company’s links to an Indian business interest. The agreement has been signed by one Mr. Jagathrakshakan,” a senior government source in Colombo told The Hindu, requesting anonymity.

Actual investment source

However, the BOI has made no official mention of the involvement of an Indian business interest so far, provoking intrigue over the actual source of investment and the investors’ experience in the oil industry, especially after Oman backing out. The FDI was made known on Tuesday, when the BOI told a press conference in Colombo that an overseas joint venture had committed $3.85 billion to a new oil refinery — the single largest foreign investment in the country’s history — in the industrial zone coming up at Hambantota, in the Southern Province.

The industrial zone adjoins the Hambantota port, which in 2017 was leased to a Chinese state-owned enterprise for 99 years, even as Colombo struggled to service a loan from Beijing.

The Board said construction work on a refinery and storage facility, jointly financed by Oman’s Ministry of Oil and Gas and a Singapore-registered company, was about to begin soon. However, on Wednesday, Oman’s oil ministry denied being part of the project, Reuters reported, prompting a clarification from the BOI. Apparently backtracking from its announcement made at Tuesday’s media conference, the BOI said that it was aware that there is no agreement that has been signed between Oman’s Ministry of Oil and Gas and Silver Park International with regard to equity arrangements of the project.”

It added that Oman Oil Company had registered their firm intention to participate in equity up to 30%, subject to reaching an agreement between the parties”.

The investor, Silver Park International, has conveyed to the Board of Investment their full confidence in implementing the project, the statement said. Mr. Jagathrakshagan and his family were not reachable for comment.

Source: The Hindu

-Agencies

A Singapore-based company in which stakes are held by the family members of former Indian Minister of State S. Jagathrakshakan of the DMK has been linked to a record foreign direct investment of $3.85 billion in an oil refinery in Sri Lanka.

However, the recent announcement by Sri Lanka’s Board of Investment (BOI) on the record deal has run into a controversy after Oman, which the Board said was an investor along with the Singapore company, on Wednesday denied being part of the deal.

The Singapore company, Silver Park International Pte Ltd, is putting 70% of the share capital — a total of $1887 million — in the project running into billions of dollars. The remaining, nearly $ 2,000 million, is to be raised as loan capital, sources said.

Silver Park International, named by the BOI, is registered with Singapore’s national regulator Accounting and Corporate Regulatory Authority (ACRA), with three of its four directors — Jegath Rakshagan Sundeep Anand, Jagathrakshakan Sri Nisha and Jagathrakshakan Anusuya – listed with a Chennai address. They are the son, daughter and wife of Mr. Jagathrakshakan, who is the DMK’s Arakonam Lok Sabha candidate. We are aware of the Singapore company’s links to an Indian business interest. The agreement has been signed by one Mr. Jagathrakshakan,” a senior government source in Colombo told The Hindu, requesting anonymity.

Actual investment source

However, the BOI has made no official mention of the involvement of an Indian business interest so far, provoking intrigue over the actual source of investment and the investors’ experience in the oil industry, especially after Oman backing out. The FDI was made known on Tuesday, when the BOI told a press conference in Colombo that an overseas joint venture had committed $3.85 billion to a new oil refinery — the single largest foreign investment in the country’s history — in the industrial zone coming up at Hambantota, in the Southern Province.

The industrial zone adjoins the Hambantota port, which in 2017 was leased to a Chinese state-owned enterprise for 99 years, even as Colombo struggled to service a loan from Beijing.

The Board said construction work on a refinery and storage facility, jointly financed by Oman’s Ministry of Oil and Gas and a Singapore-registered company, was about to begin soon. However, on Wednesday, Oman’s oil ministry denied being part of the project, Reuters reported, prompting a clarification from the BOI. Apparently backtracking from its announcement made at Tuesday’s media conference, the BOI said that it was aware that there is no agreement that has been signed between Oman’s Ministry of Oil and Gas and Silver Park International with regard to equity arrangements of the project.”

It added that Oman Oil Company had registered their firm intention to participate in equity up to 30%, subject to reaching an agreement between the parties”.

The investor, Silver Park International, has conveyed to the Board of Investment their full confidence in implementing the project, the statement said. Mr. Jagathrakshagan and his family were not reachable for comment.

Source: The Hindu

-Agencies

5 Responses to “DMK leader’s family linked to record FDI in Sri Lanka”

  1. Randeniyage Says:

    OK. This proves my suspicion is fair.
    This also explains why Thosai kade address registers a 4 billion dollar wealth.

    But look at the danger !
    Why is Tamil black money is invested in Sri Lanka , not in Singapore ?
    Why is opposition silent on this ? ( except for the minor question from a minor member)

    This is the danger we are facing. Whole country will go to Indians if people vote the Thirupaty worshipers yet again !

  2. Christie Says:

    Christie Says:
    March 22nd, 2019 at 11:33 pm
    Middle Eastern countries are winding down their own refineries.
    When we were told about Volks Wagen they had over capacity in Asian assembly lines.
    Behind both these proposals are Indian Colonial Parasites.
    Leave a Reply

  3. Christie Says:

    A grease making workshop will be built to produce grease for anal sex.

    Sorry about the language.

  4. Dilrook Says:

    The pathetic plight of Sri Lanka.

    If they build it, the darned thing must be dismantled or nationalized.

    Oil refineries destroy the environment. Why not build it in Jaffna? Why not in Trincomalee?

    The JO will not utter a word officially. They too have friends in the DMK. A relative of their top clan is a close friend of them.

  5. A Concerned Citizen Says:

    @Randeniyage Indeed. It seemed unlikely that this bunch of buffoons having done nothing the last x number of years would do something beneficial to the country. After all they had blocked both a Chinese and Korean proposal to do something similar in both Hambantota and Trincomalee.

    There was a newspaper piece in one of our papers on the dodgy details of the entities involved in this supposed investment. Doesn’t look particularly transparent at all. This is clearly an Indian job.

    @Christie – yes the Indians are at it again. It is imperative that the country chooses people of high calibre who will scrap the Indo-Lanka Accord and open us to investment from all countries.

    @Dilrook – Indeed. Just like the useless government, the JO didn’t utter a word of protest against India coming into various spheres in our country over the last few years (and during their own time in office). This investment looks dodgy at best, and looks like a scam. The fact that they have blocked various Chinese, Korean and European companies from coming in by stalling, or just not entertaining investment proposals and then a sudden rush to do this, seems suspect. A newspaper piece I think in the ST highlighted some of the financial irregularities of people from this Indian company.

    The Indo-Lanka Accord should be scrapped. This project should be put through a public enquiry to ensure its legitimacy. The tank farm at Trincomalee should be nationalised since it was given under duress. Then re-privatised to oil majors. Bring in major investment from China, Malaysia, Japan, Korea, the US, Europe etc. If India is involved, only transparent top tier Indian business houses and only in open tenders if they win on merit only.

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