{"id":99843,"date":"2020-03-12T23:47:22","date_gmt":"2020-03-13T05:47:22","guid":{"rendered":"http:\/\/www.lankaweb.com\/news\/items\/?p=99843"},"modified":"2020-03-11T17:21:13","modified_gmt":"2020-03-12T00:21:13","slug":"what-sri-lanka-must-give-to-get-480m-mcc-gift","status":"publish","type":"post","link":"https:\/\/www.lankaweb.com\/news\/items\/2020\/03\/12\/what-sri-lanka-must-give-to-get-480m-mcc-gift\/","title":{"rendered":"What Sri Lanka must GIVE to GET $480m MCC \u201cGift\u201d"},"content":{"rendered":"\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" src=\"https:\/\/www.lankaweb.com\/news\/items\/wp-content\/uploads\/2020\/03\/Screen-Shot-2020-03-12-at-5.44.53-AM.png\" alt=\"\" class=\"wp-image-99844\" \/><\/figure><\/div>\n\n\n\n<p><\/p>\n\n\n\n<p>The US embassy Colombo is repeatedly saying $480m is a gift &amp; not a loan from the US to the People of Sri Lanka but then insists on signing an agreement &amp; having it passed in Parliament, affording US troops, personnel &amp; contractors immunity and complete waiver of all forms of taxes &amp; levies while section 5.4 has a Late Payment Interest!. MCC also requires Sri Lanka to bear project costs if MCC agreement projects are not complete. Though the MCC agreement is 5 years the economic corridor that was shown by MCC at Temple Trees envisages an electric railway line cutting across 7 districts &amp; connecting Colombo Port with Trinco Port extending 200m &amp; covering 1.2million acres which the railways can lease for 99 + 99 years. Has Sri Lanka factored the costs GoSL is likely to incur against the $480m \u2018gift\u2019 the US is trying to shove upon us by force? How much of this \u2018gift\u2019 returns to US in form of salaries\/equipment etc purchased from them while questioning the direct &amp; indirect costs the GoSL will have to bear in particular from waiving all forms of taxes &amp; levies for 5 years? Thankfully the Gunaruwan Committee has factored these risks in recommending not to go ahead with the MCC in their supplementary report<\/p>\n\n\n\n<p><strong>Of the $480m \u2013 MCC is allocating $350 million for the transport project &amp; $67million for the land project. <\/strong><\/p>\n\n\n\n<p>We are being presented the notion that the GoSL has sought the\nMCC presence, if so why should US Govt via its Colombo mission say $480m is a\ngift from the US to Sri Lanka &amp; why would Sri Lanka\u2019s parliament need to\npass it?<\/p>\n\n\n\n<p>There are plenty of foreign projects operating as BOI ventures\nand these are given tax holidays and other incentives as well. <\/p>\n\n\n\n<p><strong>MCC claims the Bim Saviya\ntitle registration will continue.<\/strong> <strong>The Bim Saviya\ntragically removes judicial role to adjudicate land frauds etc<\/strong>. Who will\nadjudicate land grievances when title registrations are given &amp; land is\nacquired for MCC project. A new role granted to Commissioner of Title &amp; an\nAssurance Fund for compensation is created by Bim Saviya. <\/p>\n\n\n\n<p><strong>The Commissioner of Lands\nsays 50% of land deeds in Sri Lanka are frauds<\/strong>. <\/p>\n\n\n\n<p><strong>If this 50% frauds are\nentered into the electronic land registry<\/strong>, the judiciary cannot adjudicate because of Act 21 of\n1998 Torrens Law (Bim Saviya). Who will hear the grievance of the original\nowner and will the owner be able to legally win back his\/her property or will\nhe\/she have to make do with a compensation? <\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>What\nis the allocation of funds as compensation for any lands taken over by State\nfor the transport project?<\/li><li>What\nis the allocation for funds for Assurance Fund by the GoSL especially since the\nLand Registrar says 50% of land deeds are fraud as the original land owner is\nunlikely to get his\/her land back how much of compensation will the GOSL have\nto allocate to this Fund and how will the GoSL obtain the funds?<\/li><\/ul>\n\n\n\n<p><strong>Contract\nfor cadastral mapping to US company &#8211; Trimble Navigation at a cost of\n$154million. Is this money from the MCC gift\u201d of $480m?<\/strong> If not, isn\u2019t this a case of taking\n$480m from one hand &amp; paying $154m to the other hand of the same party?<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Cadastral\nmapping given to a US company at $154million is virtually 1\/3 of what we are\ngetting as a gift from US<\/li><\/ul>\n\n\n\n<p><strong>E-Land Registry also\ngiven to a US company<\/strong>\n\u2013 how much have we paid for this contract and is this too part of the $480m?<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>E-Land\nRegistry \u2013 have we factored the cost of amendments as most foreign companies\ncharge from the roof for the smallest of amendments! Also all passwords and\nback-office secret codes etc are all in the possession of the US.<\/li><\/ul>\n\n\n\n<p><strong>MCC Economic Corridor\nfrom Colombo Port to Trinco Port with an electric railway line that will cover\nsome 1.2million acres<\/strong>\ncalculated as 10miles (5miles left of railway line and 5miles right of railway\nline) into 200miles from Colombo to Trinco. <\/p>\n\n\n\n<p>With privatization of State land &amp; provision for foreigners\nto buy land and foreign investors to land and set up shop across the economic\ncorridor there are also chances that any issues arising will end up with these\ntransnational companies taking the GoSL to a foreign tribunal.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>To\ncreate this electronic railway line the State will have to acquire land under\nthe railway department. Which means the State will have to buy land from those\nholding land deeds or forfeit land under State (for both scenarios there is a\ncost \u2013 how much and how will GoSL bear this cost?) If State is buying lands\nfrom private land owners how much will it cost. If MCC is buying the land will\nthat be part of the $480m? <\/li><\/ul>\n\n\n\n<p><strong>MCC Pre-condition\noutlined in the power point presentation made by MCC requires the GoSL to\nprivatize all State land and place them under the State Land Bank <\/strong>and have that electronically accessible\nglobally as well. All this fits into the end endeavor to make lands available\nto the foreign private sector for investments.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>By\nprivatizing state land \u2013 what is the loss of revenue to the Government when it\ncan no longer tax for state land used? If MCC claims to be buying this land \u2013\nhow much is going to be reduced from this \u2018gift\u2019 of $480m?<\/li><\/ul>\n\n\n\n<p><strong>Procurement as per US\nguidelines \u2013 how compatible is that with Sri Lanka\u2019s?<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>For\nall of the transport project and equipment, construction items and other\nmaterial that has to be imported \u2013 all taxes, levies, duties etc are not part\nof $480m \u2018gift\u2019 \u2013 if so how much will the GoSL have to cough up by stomaching\nall the taxes, customs duties &amp; levies under its belt? Read the Tax\ncomponent in MCC Agreement alongside the Project Implementation Agreement to be\nshocked at the enormous cost Sri anka will have to stomach. How many of the\npro-MCC talkers have looked at the tax schedule against the $480m \u2018gift\u2019. Who\nis going to pay for pumping fuel for personal use of project officers of MCC?\nWho is going to pay import duty on fuel and tax? Has anyone calculated this\ncost borne by GoSL across 5 years?<\/li><\/ul>\n\n\n\n<p><strong>MCC will not have to pay\nany levies or taxes throughout the 5 year of MCC Compact. <\/strong><\/p>\n\n\n\n<p><strong>MCC Section 2.6 (a) &#8211;\nGOSL is committing to providing \u2018all funds &amp; other resources\u2019 and to take\nall other actions necessary to carry out the Government\u2019s responsibilities when\nthe grant is supposed to cover entire project?<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>As\nper <strong>MCC Section 2.6 (a) \u2013 when GOSL\ncommits to providing \u2018all funds &amp; other resources\u2019 and to take all other\nactions necessary to carry out the Government\u2019s responsibilities. According to\n3.2 d) the GOSL has to even fund anything exceeding the MCC Funding \u2013 does the\nGovt even have a ballpark figure of how much this \u2018funds\u2019 is likely to be that\nthe GoSL may have to incur?<\/strong><\/li><li>How\nmuch of tax exemption are we talking about over 5 years \u2013 VAT, NBT, PAL etc \u2013\nwhy should only MCC get tax exemptions, it will reflect badly and unfairly on\nour other investors who may even demand same exemptions! This is a very bad\nprecedent to create.<\/li><\/ul>\n\n\n\n<p><strong>US claims to be giving us\na \u2018gift\u2019 but we have to give immunity to US troops, US personnel &amp; US\ncontractors \u2013 <\/strong>in other\nwords even if any of these categories regularly runs over Sri Lankans and kills\nthem, the Americans are given immunity. In all probability Americans get\nimmunity even if they kill a fellow foreigner on Sri Lankan soil too.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>With\nimmunity given to US troops, personnel &amp; even contractors \u2013 in the case of\nfatalities by them or even life-long injuries \u2013 who is going to compensate?\nGoSL? If so where the hell do they find money when all sources of income to the\nGoSL have been clipped simply to accept a \u2018gift\u2019 of $480m! <\/li><\/ul>\n\n\n\n<p><strong>MCC personnel in Sri\nLanka for 5 years \u2013 their salaries, their accommodation, their perks, their\nmaintenance, their health insurance etc, consultants \u2013 who is paying for this?<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Do\nwe know how many foreign MCC personnel are to be living in Sri Lanka &amp; how\nmany are to arrive off &amp; on and how many Sri Lankans inducted &amp; the\ncosts of their salaries, personnel effects imported duty free, their\naccommodation &amp; other perks? Is this to be reduced from the $480m \u2013 if so\nwhat is the cost? If their costs are not to be covered by $480m how much is it\nand will GoSL have to bear this cost and where the hell is the GoSL going to\nget the money for this?<\/li><\/ul>\n\n\n\n<p><strong>One of the most\ndisturbing clauses in this \u2018gift\u2019 agreement is in Page12 Section 3.9\nIntellectual Property: <em>The Government\ngrants to MCC a perpetual, irrevocable, royalty-free, worldwide, fully-paid,\nassignable right and license to practice or have practiced on its behalf\n(including the right to produce, reproduce, publish, repurpose, use, store,\nmodify or make available) any portion or portions of Intellectual Property as\nMCC sees fit in any medium, now known or hereafter developed, for any purpose\nwhatsoever\u201d<\/em><\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>As\nper <strong>Page 12 Section 3.9 Intellectual\nProperty: the GoSL is GIFTING to MCC a <em>perpetual\n&nbsp;irrevocable, royalty-free, worldwide,\nfully-paid, assignable right and license to practice or have practiced on its\nbehalf (including the right to produce, reproduce, publish, repurpose, use,\nstore, modify or make available) any portion or portions of Intellectual\nProperty as MCC sees fit in any medium, now known or hereafter developed, for\nany purpose whatsoever\u201d<\/em> \u2013 can we even remotely imagine how this costing is?<\/strong><\/li><\/ul>\n\n\n\n<p><strong>MCC is only committing to\ndigitalize only 10 of the 45 land registries \u2013 what about the 35 land\nregistries \u2013 who is going to digitalize that and bear the cost for it? <\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Of\nthe 45 land registries \u2013 the MCC is committing to digitalize only 10. Sri\nLanka\u2019s land and resources are divided into 9.5million blocks \u2013 only 200,000\nblocks of land has been digitalized from 1998 to 2019. So in 20 years we have\nonly digitalized 200,000 blocks of land for the $5million given by World Bank\nwhich excludes maintenance &amp; other costs. $2.5m spent annually to\ndigitalize land. MCC is giving only $67m for the land project. How much is\nneeded to digitalize entire 9.5m blocs of land and will the MCC \u2018gift\u2019 suffice?\nWho has costed this factor?<\/li><\/ul>\n\n\n\n<p>There is another allegation that the\nTransport Project has been \u2018stolen\u2019 from the KOICA (Korean Aid to Sri Lanka)\nand all plans were with RDA and Koreans had done all ground work and drawn up\nplan to do the project with a concessionary loan. How far is this allegation\ntrue? Who knows &amp; who will answer?<\/p>\n\n\n\n<p>With the chances of transnational companies taking Sri Lankan\nGovernment to international tribunals for various issues \u2013 If Sri Lanka is\nordered to compensate a foreign company \u2013 how will GoSL do so? There is an\nincreasing trend of foreign companies taking sovereign governments to\ninternational courts &amp; winning cases! <\/p>\n\n\n\n<p>Another cost that GOSL must weigh is the likely displacement of\nsome 4million people if foreign companies begin to take over the 200m economic\ncorridor and demands they leave area. Where with GoSL relocate this 4million\npeople. How will GoSL find them jobs? What is the cost for this?<\/p>\n\n\n\n<p>How much of this $480m goes back to the US for their\npersonnel\/their equipment etc? (Cadastral mapping by US firm $154m \/ E-land\nregistry to US company excludes cost of maintenance &amp; changes to be paid in\n$$$)<\/p>\n\n\n\n<p>How much expense is GoSL likely to incur throughout the\n5years MCC is in operation?<\/p>\n\n\n\n<p>How much will GoSL lose across 5 years by waiving all\ntaxes\/levies\/duties which GoSL may have to pay?<\/p>\n\n\n\n<p>Is this\n$480m worth it by creating a precedence against other foreign projects?<\/p>\n\n\n\n<p>More\nimportantly, when the country &amp; people begin to face the heat as a result\nof land issues, displacement, lack of jobs etc is the GoSL up to facing the\npeople?<\/p>\n\n\n\n<p>Without\nproperly presenting the people with the costs &amp; legal clearance to assure\nSri Lankan citizens that our constitution, our sovereignty &amp; people\u2019s human\nrights are not compromised GoSL cannot sign MCC<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><strong>Shenali D Waduge<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-embed-wordpress wp-block-embed is-type-wp-embed is-provider-shenali-waduge\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"wp-embedded-content\" data-secret=\"IHPhutVKN3\"><a href=\"https:\/\/www.shenaliwaduge.com\/is-sri-lankas-parliament-protecting-sri-lankas-land-sovereignty\/\">Is Sri Lanka\u2019s Parliament Protecting Sri Lanka\u2019s Land Sovereignty<\/a><\/blockquote><iframe loading=\"lazy\" class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; visibility: hidden;\" title=\"&#8220;Is Sri Lanka\u2019s Parliament Protecting Sri Lanka\u2019s Land Sovereignty&#8221; &#8212; Shenali Waduge\" src=\"https:\/\/www.shenaliwaduge.com\/is-sri-lankas-parliament-protecting-sri-lankas-land-sovereignty\/embed\/#?secret=02vt996VGK#?secret=IHPhutVKN3\" data-secret=\"IHPhutVKN3\" width=\"500\" height=\"282\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe>\n<\/div><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>The US embassy Colombo is repeatedly saying $480m is a gift &amp; not a loan from the US to the People of Sri Lanka but then insists on signing an agreement &amp; having it passed in Parliament, affording US troops, personnel &amp; contractors immunity and complete waiver of all forms of taxes &amp; levies while [&hellip;]<\/p>\n","protected":false},"author":1498,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[47],"tags":[],"class_list":["post-99843","post","type-post","status-publish","format-standard","hentry","category-shenali-waduge"],"_links":{"self":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/posts\/99843","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/users\/1498"}],"replies":[{"embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/comments?post=99843"}],"version-history":[{"count":0,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/posts\/99843\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/media?parent=99843"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/categories?post=99843"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/tags?post=99843"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}