After
IMF Vote, Sri Lanka Releases Letter, Drops IDP Release from 80 to 60%
By
Matthew Russell Lee
UNITED
NATIONS, July 25 -- Only after procuring approval
of a $2.6 billion
loan from the International Monetary Fund Executive Board did the
Sri
Lankan government, under pressure, put
online a copy of its July 15
Letter of Intent to the IMF.
Contrary to claims that the purposes and
IMF debate around the loan had nothing to do with the detention camps
and relocations in Northern Sri Lanka, the Letter of Intent describes
use of funds for the camps, and states that "the government
aims to resettle 70-80 percent of IDPs by the end of the year."
When
UN Secretary
General Ban Ki-moon belatedly visited Sri Lanka and the Manik Farm
internment camp in late May, the government said it would release 80
percent of those being detained by the end of the year. The July 16
letter to the IMF -- withheld until after the July 24 vote on the
loan -- dropped the percentage to seventy.
In
fact, before
the IMF board voted but also before it was publicly acknowledged that
the release of detained Tamils was part of Sri Lanka's letter of
intent to the IMF, Sri
Lanka's foreign minister had already further
dropped the percentage, to sixty.
Some now say
that the IMF board on
July 24 voted on old and inaccurate information -- which was allowed
only because the IMF and Sri Lanka withheld the July 16 letter until
after the $2.6 billion had been voted on.
UN's Ban and Mahinda Rajapakse: extended
detention of IDPs not shown
At
the UN's July
24 noon briefing, before the IMF executive board vote, Inner City
Press asked UN Associate Spokesman Farhan Haq:
Inner
City Press: Since it was said that the Secretary-General was closely
monitoring the compliance with the joint statement and all of this,
it’s just come out that the Foreign
Minister of the country has now
said that the commitment made, including while the Secretary-General
was there, to allow 80 per cent of those in the detention camps to
return home by the end of the year no longer holds, that it’s going
to be a lower number. Has the UN taken note of that and what’s the
response to that?
Associate
Spokesperson Haq: We have always expected the Government to abide by
the commitments that have been reached on this particular matter.
Beyond anything further, I’d check whether OCHA has new reaction to
the latest comments. I don’t know whether we necessarily would
react to the very latest comments that you just cited, though.
Those
detained by
the Sri Lankan government can, some say, legitimately be called
political prisoners. The government committed to the UN to release
80% of them by the end of the year. The government committed to the
IMF, in a letter withheld until after approval of a $2.6 billion
loan, to release 70 to 80% by the end of the year. [A reader points out
that per Mahinda Rajapakse, it is not a commitment or promise, only a "target"
-- click here.]
Then prior to
the
IMF vote, but before the letter to the IMF was released, the
government gave itself space to continue to detain some additional
30,000 to 60,000 people past the previously committed deadline. The
UN has nothing to say, and the IMF is giving $2.6 billion to the
government.
Some call it
an IMF reward for the extended detention of
political prisoners -- apparently the IMF would look favorably on the
internment -- and opacity or delayed release -- practices of Myanmar
and North Korea. Watch this site.
IMF footnote: the
belatedly released Sri Lankan Letter of Intent to the IMF about the
loan puts in a different light the IMF
Director of Communications' public May 21 response to Inner City
Press' questions about IDPs and relocation, that
"perhaps
it's just helpful to clarify
that when the IMF lends, it is not for specific projects. We lend to
support a country's finances. We make a loan to the Central Bank to
support reserves."
Then why was the following in
Sri Lanka's Letter of Intent to the IMF, withheld under after the
IMF vote?
Reconstruction
of the North and East and the protection of vulnerable groups
adversely affected by the conflict will be an integral part of our
program. To this end the government has moved quickly to provide
humanitarian assistance to those affected by the conflict and to
develop a post-war reconstruction plan. The immediate priority is
addressing the humanitarian needs of the estimated 280,000 internally
displaced persons (IDPs). The government aims to resettle 70-80
percent of IDPs by the end of the year...In 2009 the government
intends to make room within the programmed deficit targets for
spending on humanitarian assistance and the resettlement of IDPs
using savings in existing budget provisions, redeployment of certain
categories of military personnel for demining and for the provision
of basic infrastructure, and any external grants from our development
partners. About two percent of the projected government spending will
be used for the provision of humanitarian assistance and the
resettlement of displaced persons. A needs assessment is expected to
be completed by end July 2009 to determine additional funds needed
for the broader reconstruction strategy.
Watch
this site.
* * *
As
IMF Hands $2.5B Loan to Sri Lanka, Letter of Intent
Withheld, Ethnic Cleansing Alleged
By
Matthew Russell Lee
UNITED
NATIONS, July 24, updated --
As the International Monetary Fund's executive
board approved a $2.5 billion loan to Sri Lanka, the IMF refused to
release a copy of the Rajapakse government's letter of intent for the
loan. As far back as a March
press briefing in Washington, Inner City
Press asked the IMF what safeguards, if any, would ensure that the
IMF funds not boost the Rajapakse government's shelling and now
detention of civilians in northern Sri Lanka, and alleged ethnic
cleansing there.
At
its press
briefing days before the IMF
Managing Director announced his staff's
recommendation that the loan be approved, IMF spokesperson Caroline
Atkinson said that
the international community's views would be taken
into account. But her colleague William Murray on Friday rejected
Inner City Press' reject for a copy of the letter of intent, first
saying that Sri Lanka would be the one to release it, then replying
that the IMF's "transparency policy" leaves release
entirely in the hands of the applicant, Sri Lanka. Mr. Murray wrote:
"Will
check on the Letter of Intent. They're released by the member
country, and typically after Executive Board review of the economic
program. Sri Lanka's board meeting is today."
And
then, after Inner City Press formally re-request a copy of the
Letter, Murray wrote:
"The
publication of the Letters is governed by the Executive Board's
transparency policy. That policy empowers the member country to
decide whether to release the document or not."
But
the policy
states that the country's consent to publication by the IMF is
"presumed." So why is the Sri Lankan letter not made public
by the IMF?
IMF, through a glass darkly, Sri Lankan letter of intent not shown
In
fact, long after Sri Lanka's Ambassador to the U.S. had
publicly announced the IMF's approval, which he said no one opposed,
Mr. Murray at 5:49 p.m. Friday told Inner City Press to "stay tuned"
about the IMF's Sri Lanka decision. While the Times of
London reported that the UK would vote against the loan, the UK has
only a five percent say. At press time it appeared the UK, France,
Germany, Argentina and the
United States abstained
on the loan, an "IMF source" was quoted. How can the IMF let an
applicant country scoop it on announcing a loan, while allowing the
country to withhold its letter of intent?
Update -- long after
deadline for this article and after Sri Lanka already announced the
IMF's approval, the IMF put
online a press release (no further communication was received from
Mr. Murray) putting the size of the loan even larger, at $2.6 billion.
Analysis will follow, watch this site.
* * *
With
UN Silent on Sri Lanka, IMF Staff Urge $2.5 Billion Loan, Will Views
Be Heard?
By
Matthew Russell Lee
UNITED
NATIONS, July 21 -- With Sri Lanka putting restrictions on the Red
Cross and the press, and despite statements by the UK and US on the
country's application for a $1.9 billion loan from the International
Monetary Fund, on July 20 IMF Managing Director Dominique
Strauss-Kahn announced his staff will recommend a $2.5 billion
transfer to Sri Lanka at a board meeting on July 24.
Since
March, Inner
City Press has asked IMF spokespeople what safeguards if any would be
attached to the loan. Most recently on July
16, the IMF's Caroline
Atkinson said that the views of the international community will be
taken into account. Four days later her boss
issued a press release
with no mention of safeguards. Pro-government media in Sri Lanka
report IMF board approval as a mere formality. HSBC and now JPMorgan
Chase are helping the Rajapakse regime to do a road show to foreign
capitals to drum up more investment.
Outgoing
UK
minister to Asia and the UN Mark
Malloch Brown told Inner City Press
earlier this month that "the IMF loan is not moving," is
not going anywhere. His boss David Miliband had said the conditions
are not right for such a loan. With 300,000 people detained in
government camps, are the conditions any better now?
IMF Board room, Sri Lanka internment camps and safeguards not shown
An AP wire
service reporter who exposed conditions in the camps was told
to
leave the country, his visa not renewed. (Reuters
with more
pro-government reporting, on the other hand, apparently had no such
problem.)
The
Red Cross was
been ordered to cut back in Eastern Sri Lanka, where it had over 140
workers. Despite commitments to investigate itself, the Rajapakse
government ended an investigation into the killing of 17 workers of
the NGO Action Contre La Faim, exonerating its armed forces. And what
does the UN have to say?
On July
21, Inner
City Press asked
Inner
City Press: over the weekend, Action Contre la Faim -- it’s this
French NGO -- denounced
the Sri Lankan Government’s ending of an
inquiry of how 17 of their workers were killed, and they called for
an international inquiry, including calling on the UN to take action.
Since the UN -- John Holmes and others -- had said they were closely
watching that investigation, what do they say now that it’s over,
and the group concerned calls it a whitewash?
Associate
Spokesperson Haq: We’ll check with OCHA what kind of particular
response they have on the issue concerning Contre la Faim. As far as
that goes, there has been no UN investigation into this, as you are
aware. We’ll first monitor events on the ground, and we do
continue to monitor a wide range of issues concerning how the
Government of Sri Lanka has followed up on the commitments that the
Secretary-General had outlined in his letters. As you know, the
Secretary-General met with President [Mahinda] Rajapaksa last week on
the margins of the Non-Aligned Movement summit, and he brought up
again the sort of actions we had wanted taken in Sri Lanka.
Inner
City Press: Just one more on that. I wanted to know, there was a
report in the Times of London saying that, in the camps in Vavuniya,
up to 1,400 people have died, and the AP has also reported that the
conditions are very dire in terms of health. What’s the UN, if
they’re closely monitoring, are they monitoring both the health and
the level of deaths inside these camps?
Associate
Spokesperson: Well, that of course depends on the level of access we
have. We don’t have necessarily the most precise information about
things like death tolls. At the same time, we do have tremendous
concerns about the humanitarian conditions in the camps, and that was
in fact one of the topics that the Secretary-General raised with the
Sri Lankan President last week.
But
pro government
media reported the meeting as a love fest, and it doesn't seem to
have any effect. Watch this site.
* * *
IMF
Says on Sri Lanka, Int'l "Views Will Be Considered," Spends
on Honduras But Dodges Question
By
Matthew Russell Lee
UNITED
NATIONS, July 16 -- When the International Monetary Fund's Executive
Board finally meets on Sri Lanka's application for a $1.9 billion
loan, IMF spokeswoman Caroline Atkinson told the Press on Thursday,
"all of the international community's views will be considered."
The question posed, by Inner City Press, asked the IMF to respond to
reports that "funds spent in the North are 'the jailer of these
people and 'looks like internment.' What safeguards would be in
place?" Ms. Atkinson's answer, referring to what she called the
IMF's "good discussion with the authorities," did not
mention any safeguards. Briefing at Minute 17:18.
United
Kingdom
officials have made statements, which they have not retracted, that Sri
Lanka's application for an IMF loan is "not moving,"
that the conditions are not right.
While the US
position has
vacillated, the Obama administration's close attention to media
probably means that the New
York Times front page story of July 13,
and the next
day's editorial, makes less likely for now U.S. support
for a $1.9 billion loan to Sri Lanka, whose military budget is $1.6
billion.
This in Honduras -- but could be Sri Lanka, IMF
answers not shown
Inner
City Press
also asked if the expulsion of Manuel Zelaya from Honduras has given
rise to any changes or discussions within the IMF. Ms. Atkinson
responded that "we have followed the normal international
practice." She said that "we don't have any program with
Honduras."
But
the IMF last
month opened up a Technical Assistance Center for Central America,
Panama, and the Dominican Republic (CAPTAC-DR) in Guatemala City. IMF
Deputy Managing Director Takatoshi Kato was quoted that "this
center is an example of strong regional cooperation in Central
America, Panama and the Dominican Republic... A region with almost 40
million people has significant economic potential. The Fund is proud
to be a partner in the effort to promote regional economic growth and
development, and hopes that CAPTAC-DR will serve as an engine to push
forward the objective of a more economically cohesive region.” The
latest regional technical assistance center will serve Costa Rica,
the Dominican Republic, El Salvador, Guatemala, Honduras,
Nicaragua,
and Panama.
So the IMF has a
center which spend money to serve Honduras. Clearly, as in the case
of Sri Lanka for the last four months, the IMF likes to dodge
questions and, some say, accountability. But in light of the
CAPTAC-DR, it cannot so easily dodge the question of Honduras. The
World Bank has spoken
to the question. When will the IMF?
Footnote:
Inner City Press also asked the IMF, "What is the IMF's response
to the UN General Assembly's outcome document with its criticism of
the IMF and geographical balance, etc? And please deny that you pick
and choose and censor questions submitted online about pending IMF
loan applications - like Sri Lanka." The former has yet to be
answered; there has been one round of back and forth (without
substantive answer) on the latter. We will continue to pursue this.
* * *
On
Sri Lanka, IMF Said Ready to Lend, Dodges Ethnic Cleansing, Where
Are Obama, UK?
Byline:
Matthew Russell Lee of Inner City Press at the UN: News Analysis
UNITED
NATIONS, May 20 – With the Red Cross blocked from access in Sri
Lanka to the wounded and dying, with NGOs increasingly barred from
the UN-financed camps for IDPs, in Washington the International
Monetary Fund said Thursday that it looks forward to presenting for
approval to its Board Sri Lanka's request for a $1.9 billion loan.
The statement was made by the IMF's director of external relations
Caroline Atkinson. Inner City Press online asked a follow-up during
the Fund's biweekly press briefing, which Ms. Atkinson re-stated:
please state whether as the Sri Lankan government says the proceeds
of any IMF loan would support re-housing in the north, which some
would described as ethnic cleansing?
The
IMF's Ms. Atkinson responded, “Perhaps it's just helpful to clarify
that when the IMF lends, it is not for specific projects. We lend to
support a country's finances. We make a loan to the Central Bank to
support reserves. Any other question?”
On March 12,
Inner City Press went to the IMF in Washington and asked Ms.
Atkinson's colleague David Hawley what safeguards were being
considered to ensure that the proceeds of any IMF loan to Sri Lanka
wouldn't be enable war or ethnic relocation. Mr. Hawley said that
things were at an early stage. Later, French
Ambassador to the UN
Jean-Maurice Ripert told Inner City Press that “the Americans are
trying to play with the loan.”
The U.S. subsequently confirmed
this, receiving human rights credit for raising the issue. The UK has
as well. After a contrary
statement by the UK Ambassador to the UN, in
response to Inner City Press' question at the UN Security
Council stakeout, UK Foreign Minister David Miliband said he didn't
think conditions for an IMF loan to Sri Lanka were right. Are they
now?
IMF's Dominque Strauss-Kahn and Ms. Atkinson,
ready to lend to Sri Lanka
Now, after two
weeks ago refusing to take the question at their briefing, the IMF
says that while there is still no access to the killing zone
in the North, while doctors who reported on the war as well as
offering treatment are detained and interrogated, it wants to present
the loan for approval by its Board within weeks.
What happened, some
ask, to the ostensible US and UK opposition? At the US State
Department this week, the Obama Administration appeared to waver or
move on from it previous position, both on the loan and as stated by
the President following Time magazine's diagnosis that Barack Obama
was failing the Sri Lanka test.
The
IMF's implicit argument that it is not supporting what a government
does on the ground by lending to its Central Bank is specious. In
fact, many experts on Sri Lanka note that the government's military
offensive in the North was assisted not only by aid after the
tsunami, but even more by the proceeds, to the Central Bank, of debt
forgiveness. Now during the current crisis the IMF wants to make a
loan to the Sri Lankan Central Bank. Ms. Atkinson alluded to, but did
not give an explanation as requested by Inner City Press, of a
“larger facility” being discussed.
Victor's
justice, victor's loans, some call it, as they call the UN's Ban
Ki-moon's impending visit to Sri Lanka a sort of victory tour. Inner
City Press leaves today on the UN trip. Watch this site.
Click here
for an Inner City Press YouTube channel video, mostly UN Headquarters
footage, about civilian
deaths
in Sri Lanka.
Click here for Inner City
Press' March 27 UN debate
Click here for Inner City
Press March 12 UN (and AIG
bailout) debate
Click here for Inner City
Press' Feb 26 UN debate
Click
here
for Feb.
12 debate on Sri Lanka http://bloggingheads.tv/diavlogs/17772?in=11:33&out=32:56
Click here for Inner City Press' Jan.
16, 2009 debate about Gaza
Click here for Inner City Press'
review-of-2008 UN Top Ten debate
Click here for Inner
City Press' December 24 debate on UN budget, Niger
Click here from Inner City Press'
December 12 debate on UN double standards
Click here for Inner
City Press' November 25 debate on Somalia, politics
and this October 17 debate, on
Security Council and Obama and the UN.
* * *
These
reports are
usually also available through Google
News and on Lexis-Nexis.
Click here
for a Reuters
AlertNet piece by this correspondent
about Uganda's Lord's Resistance Army. Click
here
for an earlier Reuters AlertNet piece about the Somali
National
Reconciliation Congress, and the UN's $200,000 contribution from an
undefined trust fund. Video
Analysis here
Feedback: Editorial
[at] innercitypress.com
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Other,
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