Review Committee gives negative signal on MCC

By Ishara Gamage
(Courtesy of Ceylon Today)
Implementing the already-finalised Millennium Challenge Compact (MCC) agreement will pose a challenge to Sri Lanka’s sovereignty and legal system, unless its terms are amended to Sri Lanka’s requirements, according to the preliminary report by the four-member committee appointed by the Government to review the MCC. However, the US Government has already expressed its unwillingness to amend the terms of the MCC.
“The Committee has already examined three key documents relating to the MCC and indicated that some of the clauses of such documents would be a challenge to Sri Lanka’s existing legal system and its sovereignty. Therefore, the Government is considering presenting this committee’s initial report to Cabinet and thereafter publishing the relevant report and agreements for public use, for further recommendation,” Government officials said.
However, the officials also noted that several representatives from the Sri Lanka Attorney General’s office had participated in the formulation process of the key documents of the MCC.
According to officials, the Committee collects information by reviewing relevant documents, such as the original MCC agreement with Sri Lanka, the programme implementation agreement, the articles of association of the proposed MCC Lanka Guarantee Limited to implement the programme, and other relevant documents, as well as by conducting interviews with different individuals and participating at seminars.
The committee decided to submit their interim report within the next four weeks and submit a final report within eight weeks as per their Terms of Reference (TOR) given by the Government.
The initial report of the four-member Committee appointed to review the proposed Millennium Challenge Corporation Compact (MCC) agreement was handed over to President Gotabaya Rajapaksa at the Presidential Secretariat on Monday (17).
The Committee was appointed with effect from 1 January 2020, following a Cabinet decision made on 18 December 2019. Prof. Lalithasiri Gunaruwan of University of Colombo is the Committee Chairman, while former Secretary to the Ministry of Transport, Dr. D.S. Jayaweera, Nihal Jayawardena PC and Architect Nalaka Jayaweera are the other members.
The committee was appointed to carry out an independent and professional review, and a broad analysis is being carried out accordingly.
“We have to submit our final report within four months of our appointment; therefore, we will try our best to finalise the report, most probably before the upcoming General Election,” a committee member earlier told Ceylon FT.
However, the committee only has the authority to provide their recommendations to the Government; accepting their recommendations is a matter of Government concern.
“The Government has ultimate responsibility for deciding how the country is run and for managing the MCC agreement, as the US Government has already indicated that they are unwilling to amend or modify the original MCC clauses with the Sri Lankan Government,” the committee member stated.
The committee plans to meet at least two or three days per week during their four-month duration.
The committee also instructed relevant local MCC officials and Government officials to submit all related documents for their reference and observation.
The Government has completely halted the previous Cabinet’s decision to sign the agreement and a fresh decision will be made after the committee forwards its report. Sri Lankan Parliament approval is a must for the US to grant MCC assistance to Sri Lanka.
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