Sarath Fonseka speaking to the media after meeting the elections commissioner last month.
Sarath Fonseka speaking to the media after meeting the elections commissioner last month.

Sri Lanka's presidential poll declared clean by elections commissioner



COLOMBO // Sri Lanka's elections commissioner, Dayananda Dissanayake, has dashed the hopes of many Sri Lankans who are convinced that poll fraud and rigging cost the opposition candidate, Sarath Fonseka, victory at last week's presidential poll.

At a news conference yesterday, Mr Dissanayake - who stunned the nation the day after the January 26 poll by saying, "I was under a lot of pressure and couldn't even protect the ballot boxes" - did a U-turn saying there were no problems in the counting of the ballots and the polling itself was peaceful. "The poll was free and fair and I didn't receive any serious complaints. There was an unprecedented amount of rumours," he said, countering claims by Mr Fonseka and his supporters that poll fraud had robbed them of certain victory. The election was won by the incumbent, Mahinda Rajapaksa, who secured 57 per cent of the votes against Mr Fonseka's 40 per cent.

The poll was expected to end in a close finish with the edge going to Mr Rajapaksa, but his sweeping victory triggered claims from the defeated candidate that the vote count had been manipulated at the point of the computer tabulation. The opposition also made claims that government supporters intimidated voters and polling officials. Many Sri Lankans in the capital believe intimidatory tactics prevented Mr Fonseka, a former army commander, from winning. He had campaigned on bringing about a clean administration and stopping corruption and mismanagement, widely blamed on the president and his three brothers who all hold influential government positions.

"Everyone I spoke to in Colombo and in my hometown of Galle [in the south] was voting for the general," said Sanath Lokuge, a gym instructor in Colombo. "I can't believe this. There has been some major fraud in the result." The about-turn by the elections commissioner shocked many. Jehan Perera, a political commentator for the English-language Daily Island newspaper, said: "When he announced the results, Mr Dissanayake said he was under enormous pressure from various people and couldn't do his job properly. Now he is saying something different.

"The election result itself is unbelievable, for everyone I spoke to in Colombo was convinced that Fonseka will win." Mr Fonseka also lost the Colombo district to the president. Supporters of Mr Fonseka and other national political parties, including the main opposition United National Party, took to the streets yesterday claiming election fraud. Mr Fonseka has refused to accept the result and at a press conference on Tuesday called himself the "people's president", promising to challenge the decision in court. Under current rules, the election can be challenged within 21 days of the poll.

Government accusations that Mr Fonseka and his team, mostly retired army officers, were planning a military coup grew yesterday. The authorities detained several serving and retired officers, sent some on compulsory retirement and effected sweeping changes in the army. The defence secretary, Gotabhaya Rajapaksa, told BBC television on Tuesday that if the general has committed an offence, he would be legally punished.

"He has said many things publicly during the campaign which are military secrets and of a confidential nature. That is wrong," said Mr Rajapaksa, the younger brother of the president, waving his hands angrily. Dozens of soldiers cordoned off the hotel in Colombo where Mr Fonseka and other political leaders stayed on election day, raising fears that he would be arrested. The stand-off continued for many hours until Mr Fonseka left the hotel.

Further, the speed with which more than 40 changes to the senior military establishment were made surprised many. And attacks on the media have raised concerns over another bout of media-bashing by the media-sensitive government. Sunil Jayasekera, the secretary of the Free Media Movement, Sri Lanka's biggest media defence group, said: "Some media workers have been assaulted, while some journalists are in hiding."

He said one journalist disappeared the day before the poll, while the editor of a news website called LankaEnews is in hiding after the authorities blocked the site. "Several websites had been blocked, the Sinhala-language Lanka newspaper editor was arrested while the newspaper was sealed by police. However, the newspaper reopened on Tuesday after the management won a court order," Mr Jayasekera said, adding that eight media organisations urged the government to stop the harassment.

Residents in Colombo, many of whom voted for Mr Fonseka, said they have doubts as to whether the president won cleanly. "Something has happened," said Ranjit, an accountant from Colombo who gave only one name for fear of retribution from the authorities. "I don't know what. But - this election was not clean." foreign.desk@thenational.ae

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10 tips for entry-level job seekers
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A little about CVRL

Founded in 1985 by Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, the Central Veterinary Research Laboratory (CVRL) is a government diagnostic centre that provides testing and research facilities to the UAE and neighbouring countries.

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

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“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

W.
Wael Kfoury
(Rotana)

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