A project that was in essence postponed by the Cabinet of Ministers in 2016 reared its head once again in 2019 with the advent of a new Minister of Provincial Councils.
The entire transaction is coming under intense scrutiny and suspicion because the very same project was postponed for more study and evaluation in 2016. Only the timeline has passed but all other aspects remain the same – thereby begging to pose the question as to the basis of awarding the project to a particular company. To the point what was wrong in 2016 – with nothing having been done, what has changed in 2019?
The company in question KT or Korean Telecom is not in the primary business of street lighting using LED technology. In fact the company’s senior officials have come under scrutiny and the spotlight in Seoul for a series of alleged deviations from standard corporate practise in Korea. A senior official was accused of being in control of a multi billion Wong slush fund which was used to make payments of all kinds including having political undertones.
The latest move by the Sri Lanka government to hurry through this project (again) poses several questions including the issue of funding. Previously the funding had been arranged with favourable terms. However it had been felt that due to the value of the project it might have been better if the government pursued the so-called Swiss challenge system. Sources familiar with the initial offer revealed that the funding offered for that project had long lapsed.
Here’s how the local press covered one aspect:
“A ruling party lawmaker raised the suspicion that Hwang Chang-kyu, chairman of the telecom company KT, has been writing to the former legislator while paying a large amount of money to government officials, generals and so on every month. He said he spent a total of 2 billion won in a month, up to 13 million won a month, which is interpreted as pressing KT and opposition parties.
Democratic Party lawmaker Lee Chul-hee has 14 names on KT’s list of management advisers.
In addition to politicians such as former GNP lawmaker Park Sung-bum, former secretary of the 19th National Assembly, and Hong Moon-jong member of the National Assembly, there are also high-ranking government officials who are directly related to the KT business.
All of them were commissioned after the inauguration of President Hwang Chang-kyu.
Lee said, “It appears that President Hwang is standing in the lobby and waiting for politicians to sit down.”
KT said that it was only a normal torture contract.
The KT Hearing is scheduled to be held on the 4th of next month due to a communication crisis caused by the fire in the district office last year.
The ruling party insists that the KT hearing should not be confined to the communication crisis, but should be expanded to suspicions of recruitment of major Korean officials. The Korean government opposes it and mentions the possibility of canceling the hearing.
So today, the list is interpreted as a card trying to press KT and the opposition to hold a hearing.”
