From The Sunday Leader - by Nirmala Kannangara
There is much concern in SriLankan Airlines circles as to the manner in which the national carrier is being pushed into becoming a further debt-ridden institution.
It is alleged that the Board of Directors have divided into two groups and do not see eye to eye over certain decisions that have adversely affected the national carrier. Reliable inside sources who wished to remain anonymous told The Sunday Leader that it is disheartening to know that the Director Board is allowing Rajapaksa loyalists who mismanaged the airline during the previous regime with the then infamous Chairman Nishantha Wickramasinghe, to further ruin the institution.
Further, questions have been raised as to why the SriLankan Airlines Board of Directors have so far failed to implement the recommendations of the Weliamuna Report which would greatly help the cash-strapped national carrier to gain profits once again.
“We expected the yahapalanaya administration to remove the inexperienced Rajapaksa loyalists recruited and given promotions during Nishantha Wickramasinghe’s administration and bring back the experienced officials to run the airline. Dashing all our hopes, only the faces in the Board of Directors changed after the January 8 victory, but the people who have so many allegations against them have been given a free hand to ruin the national carrier further,” sources claimed.
A military officer
“The controversial appointment of the former Head of Inflight Services as General Manager (Airport and Ground Services) on February 8 is one example as to how Rajapaksa stooges is well looked after by the Board of Directors. This particular employee was a military officer and walked into the Human Resources Department of Sri Lankan Airlines with a letter from the then Defence Secretary, Gotabhaya Rajapaksa, to get the position of Head of Inflight Services.
The only qualification he had to get that position was Gotabhaya Rajapaksa’s letter that instructed Sri Lankan Airlines to offer him the post. However after he assaulted one of his managers he was transferred to the Security and Investigations Department but interestingly, no disciplinary action was taken against him. Instead, the present administration gave him a promotion as General Manager (Airport and Ground Services),” the sources claimed.
According to the sources, six highly experienced applicants within the institution applied for the same post although it was given to the applicant who had neither the experience nor any idea of how to discharge duties in the new post.
“Since the new General Manager (Airport and Ground Services) does not have any experience, a former senior airport official who went on retirement a few months ago was re-recruited as Consultant (Airport Services) early this month to assist the new General Manager (Airport and Ground Services).
Addressing a certain section of our staff, CEO Suren Ratwatte has said the most experienced person was selected for the said post. If he is the most experienced person for the post, then why was a consultant recruited to assist him? Isn’t this an additional burden to the already debt-ridden airline?” the sources alleged.
According to the sources, during Nishantha Wickramasinghe’s administration, it was this same person together with then CEO Kapila Chandrasena that awarded the General Sales Agencies (GSA) to nine far eastern countries out of tender procedure. “This had an adverse impact on the airline, and they were planning to give China, the third largest market, to one of their stooges as well. Luckily the government changed before this was given,” the sources further claimed.
It is also now expected that the airline will in May this year appoint as Chief Marketing Officer, SriLankan Airlines, a senior officer currently working for Emirates Airlines, heaping more loss upon the institution. “This particular Emirates official is a senior person who has the expertise and knowledge, but our question is what made SriLankan Airlines appoint a Chief Marketing Officer carrying a salary of more than one million rupees when a Chief Commercial Officer has been appointed? We understand that it is a very senior minister in the government that had wanted the airline to reserve this post till May as the Emirates official is expected to go on retirement in May this year,” the sources said.
Speaking about the appointment of Chief Commercial Officer (CCO) SriLankan Airlines, the sources said employees were surprised as to why a salary of a staggering Rs. 3.8 million is paid per month to this new appointee.
“In addition to the monthly remuneration, he is being given a two hundred and forty thousand rupee housing rent plus other perks. Half the Board members were against paying such a high salary to the CCO but the Chairman, the CEO and a few members of the Board went ahead to pay him this salary when other Board members were strictly against the idea,” the sources added.
Meanwhile, it is also learnt how the Head of Cargo who was taken on contract basis during the previous regime was made permanent on January 1, 2016 despite his failure to make the cargo division accrue profits. “He was brought to the airline by Namal Rajapaksa as this Head of Cargo was in Nil Balakaya. The cargo division began losing over Rs. 100 million per month since his appointment. In addition he was given a warning letter for obtaining a vehicle allowance despite being given a company maintained vehicle. Despite all this, we are surprised as to why he was made permanent,” the sources claimed.
The sources further accused the management of failure to appoint experienced staff to critical stations to prevent losses, as at present most of these critical stations are incurring losses. “If the government appointed people that have experience in the airline trade to the Board of Directors, this situation would not have occurred.
Critical areas neglected
Since they do not know what the critical areas are and how to minimise losses, they do not know the importance of appointing the best officials to the right positions. The previous regime sent a Grade 11 (G11) Senior Manager to Singapore where only 19 flights are operating every week. This station makes only US$ 12 million per annum, and there is no necessity to send a senior manager to such a place. The former Head of World Sales who was the Campaign Manager of Sajin Vass Gunawardena appointed all his friends to critical stations although they did not have the experience. No one could question these appointees. After the fall of the Rajapaksa regime, we briefed the new management of this but to no avail. These complaints have fallen on deaf ears.
Although Colombo is the main critical station with a monthly turnover of over Rs. 1.5 billion, still the inexperienced officer who was appointed by the former Head of World Sales is given the freedom to carry out his duties. Under these circumstances, cash-strapped SriLankan Airlines will incur further losses,” the sources alleged.
Meanwhile there is also concern over why SriLankan Airlines is still considering going ahead with the controversial air bus deal made by the previous regime.
“A country such as ours does not need to have A350 aircraft that can fly for more than 14 hours continuously. Public Enterprises Development Minister Kabir Hashim is on record stating that the State owned carrier is making losses on its long-haul routes. If so, why does the government still want to go ahead with the deal to purchase aircraft that are manufactured for long haul journeys?” the sources queried.
However refuting these allegations, a SriLankan Airlines Spokesman said some of the recommendations in the Weliamuna Report had been implemented and the recommendations that cannot be implemented internally are now being investigated by the Criminal Investigation Department (CID), Financial Crimes Investigation Division (FCID), Commission to Investigate Allegations of Bribery or Corruption and the Presidential Commission of Inquiry for Fraud and Corruption (PRECIFAC).
“When we informed the 11 member committee appointed by the Prime Minister what we implemented out of the Weliamuna Report recommendations, the committee was satisfied with the implementations. Hence, no one can say that we did not implement any recommendation of the report,” the Spokesman said.
He further said the appointment of the General Manager (Airport and Ground Services) was made on the recommendation of Minister Kabir Hashim and Deputy Minister Eran Wickramaratne. “This particular officer is a highly decorated war veteran and is the most suitable person to stop the human smuggling that is taking place at the airport. Those who are levelling allegations do not want to stop the human smuggling racket but to continue it. Although there were allegations levelled against the newly appointed General Manager, the Minister and the Deputy Minister after going through the investigation reports, cleared him of all the allegations,” the Spokesman said.
Consultant
The Spokesman, however, said he was not aware as to whether a consultant had been recruited to help out the newly appointed General Manager (Airport and Ground Services).
According to the Spokesman, there are three vacancies to be filled at the Marketing Division but added that since it is not necessary considering the present financial crisis, the airline will not fill the vacancies.
“We have never reserved the Chief Marketing Officer’s post for someone who is presently working for another airline. As claimed by your sources, the airline did not recruit the Chief Commercial Officer for a monthly salary of Rs. 3.8 million. He is paid a very much lower salary. It is interesting that the questions your newspaper is posing had been raised at COPE as well. It is an organised group that is spreading all these rumours,” he said.
Meanwhile, the Spokesman confirmed to this newspaper that the airline had made the Head of Cargo permanent. Speaking of appointments to stations, he said new appointments were made to all stations six months ago and added that those who were incompetent were re-called and those who are competent appointed in their place.
In regard to the A350 airbus deal, the Spokesman said the airline is making every effort to cancel the contract. “At the moment we have enough of aircraft and do not need any more. We are legally obliged to go ahead with the deal but are trying to get this cancelled which is not an easy task,” he said.
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