Gajalakshmi
Paramasivam – 11 April 2015
Captain Ranatunga or MP
Ranatunga?
Yesterday, I read the full report of the
Board of Inquiry (BoI) on Sri Lankan Airlines – published at lankahearald.com We were introduced to the Report as follows:
[The
board, headed by Attorney-at-Law J.C. Weliamuna found instances where SriLankan
Airlines lost billions of rupees due to the manipulations of service
contracting, recruitment of unqualified staff and major security breaches.]
The Executive Summary states:
[The BoI’s mandate in the
investigation into SLA was, inter alia, to assess whether there was prima facie
evidence of (i) abuse of power by the Board and the Senior Management of SLA;
(ii) whether there was evidence of irregularities in the procurement and/or
leasing of Aircraft; (iii) whether due process has been followed in the
procurement of goods and services by SLA valued at over Rs. 25 Million; and
(iv) whether there has been external interference adversely affecting the
smooth functioning of Sri Lankan Airlines.
The BoI found prima facie evidence of all four aspects above, reaching appalling proportions.]
The BoI found prima facie evidence of all four aspects above, reaching appalling proportions.]
I commented as follows:
[Gajalakshmi ParamasivamApril 10, 2015 at 4:20
pm
A
detailed report and a genuine one. Highly commendable – given the time limit.
But does not provide real solutions. Most of it was already common knowledge
even though the specifics were not known. The transformation needs to be
bottom-up through self-managing Business Unit approach rather than on program
basis.]
The investigative framework by the Board of
Inquiry into the National Airlines of Sri Lanka could also be used in relation
to the Sri Lankan Governance – irrespective of personalities concerned. In fact
as per my assessment – this could be applied to any Government Body in Sri
Lanka – including the Provincial Government of Northern Sri Lanka – to lead
citizens towards self-governance.
Given my experience with Air Lanka and my
ongoing investment through observations, thoughts and analyses – I was able to
identify with many of the issues raised – as being ongoing – and not particular
to the last Chairman and the last CEO.
To my mind, it was no coincidence that I
received the above message from a fellow Sri Lankan at this point in time. Natural identity with a value at the time we
are in need of direction confirms to me that the direction as stated by someone
else is also part of the root of the
solution that would satisfy the need. Only a believer would identify with that
true pathway. I am a believer in Sri
Lanka at the level of Air Lanka. My response to the Board of Inquiry includes
directions to true solutions for the National Airlines and therefore Sri Lanka
itself.
On that basis today’s response covers the
question:
1.
Does one need prior Airline
Experience to lead the Airline?
(i)
Under Introduction section of the Report by the BoI – states:
[The
BoI found prima facie evidence of all four aspects above, reaching appalling
proportions.
This trend was more evident from the year 2011/2012 and was seemingly propelled by the former Government through the appointment of former Chairman, Nishantha Wickramasinghe on a full time basis and the appointment of Kapila Chandrasena as CEO.]
This trend was more evident from the year 2011/2012 and was seemingly propelled by the former Government through the appointment of former Chairman, Nishantha Wickramasinghe on a full time basis and the appointment of Kapila Chandrasena as CEO.]
(ii)
Under The Former Chairman and the Former CEO section
of the Report the BoI states:
[Their
introduction to SLA on an executive level appeared to have been clearly
orchestrated for a collateral purpose. The BoI did not see the justification
for a full time Chairman, especially considering the fact the said full time
Chairman did not have experience in the Airline Industry.]
That brought to mind the comments by the
First Prime Minister of Singapore – the Honorable Lee Kuan Yew who states that
he did think about the decision by the First President of Sri Lanka – his
Excellency J R Jayawardene who initiated the Air Lanka project. In this regard
I wrote and published yesterday at http://austms.blogspot.com.au/:
[The question by the Hon Lee Kuan Yew – ‘how
could an airline pilot run an airline?’ raised the parallel in my mind as ‘How
could an Academic run a University?’ ]
The core purpose
of a University is Research and
Teaching. Likewise the core purpose of a
National Airline is Global Communication and Provision
of Air Travel Services. To the extent Government
owned University / Airline makes profits
through the latter – those profits go back to the Government as the parallel of
Income Tax by an individual. Like the Teacher – the Pilot is the one who
physically delivers the final part of
the latter Service. If a teacher can
therefore run a University – a Pilot can run an airline. In both instances
commitment to Equal status for all other operations is needed towards becoming Total
Quality Service.
The Governance
Section requires belief in all those who established the system. This is
hierarchical in structure – and is based on blessings by the senior and respect
by the junior. Where there is a big gap between two position requirements – the
Governance Section needs to be recognized – however profitable the performance
section make be.
The above Report
states in this regard:
[ The BoI did not see the
justification for a full time Chairman, especially considering the fact the
said full time Chairman did not have experience in the Airline Industry.]
The Officer concerned did not need Airline
Industry experience if s/he were to remain strictly within the Global
Communication portfolio. I joined Air Lanka from Prima Ceylon Ltd. Most in our
group of first Commercial Executives did not have any Airline Industry
experience. Yet, we delivered satisfactorily – to provide services of global
standards. I believe I continue to contribute to this aspect of Air Lanka/Sri
Lankan Airlines – including through this response. I believe this was possible due to Singapore
International Airlines recruiting us. Except for Keble De Silva – there was no
other executive from the predecessor of Air Lanka - Air Ceylon - in our Commercial Team. That was the
separation of Powers needed between the old and the new. Keble was both –
Governor and Performer.
To my mind, Keble was not racial at all. This
discovery by me – a Tamil about a Sinhalese is policy feedback for the Global
Communication / Governance aspect.
Interestingly – in the BoI report – under the
heading Procurement Contracts is the first subsection of General Sales
Agent [GSA] Appointments. This was within my portfolio when Air Lanka was first
structured. The current officer in charge of that position Mrs Yasmin Majeed (who
was interviewed by BoI) was trained first by me and continues to attribute
credit to me whenever she gets the opportunity. Yasmin often said that when she saw me
walking from one office to the other while she was waiting for the ‘interview’
she thought to herself ‘I want to be like her’. Yasmin still remembers what I
wore on that day. This resulted in a
belief based hierarchy in our work relationship.
Every new Management and Government has the
responsibility to protect such belief based values so that the consolidated
value of our work go back to the Public. This belief based value added should
be beyond the reach of current players and investigators.
It’s interesting that of the two countries
covered by BoI in relation to appointments of GSAs – one is Australia which is
also my home nation now. Back in
1979/80, when it was time to appoint a GSA in Australia – I was allocated the
task of evaluation and I did the preliminary work. I believe Yasmin would be
doing the parallel of that currently. Given that I was the Middle Manager in charge –
it would have been quite in order for me to expect that I would accompany the
Senior Manager – Mr. Colin Martinus – the Commercial Manager - when traveling
to Australia for the interviews relating to Australian GSA appointment. But Mr.
Martinus – my guru in Commercial Administration - chose Hershal Gunawardene who
was in charge of another subsection, to
accompany him. I shared my dissatisfaction
with Keble who was like a big brother to
many of us. Keble said about Mr. Martinus - ‘He would have been concerned about the reputation’ . I said words
to the effect ‘I am not concerned about
my reputation for this is job related.’
Keble smiled and said ‘Not yours!
His reputation!’. That confirmed the
reasons for gender based discrimination! Given that I was around 30 then – and
had not been required to practice Equal Opportunity principles - I accepted
Keble’s explanation and was satisfied that it was NOT due to any fault in my
performance. But I did not travel to
Australia at all during my Air Lanka time. I do however believe that because
I did not react but accepted the reason
by my professional elders – I eventually came to Australia – through my husband
who was recruited by Australia on the basis of his employment with the
University of New South Wales. I believe that had I remained in Sri Lanka – I
would have done at Air Lanka – what I did at University of New South Wales – ie
– implemented Activity based bottom up management accounting systems in Public
enterprises. To my knowledge – Yasmin has not visited Australia to date and hence I conclude that the systems remain more
or less the same with the top manipulating the workers. When GSA is an area
covered by BoI – it is natural that all staff in that Activity group would be
adversely affected. Yet – like me back then – they also would be lacking in
courage to question their seniors directly.
To my mind, this report itself is through
an exertion of power top-down and is therefore without the leads needed for
solution through a democratic management system. Employees are the key to success
of the Operational side of the Airline.
This
BoI Report must therefore be used by the
Sri Lankan Government on the same basis as it expects the United Nations to use
the Darusman Report on Sri Lanka’s ethnic problem – especially in relation to
the actions of the Sri Lankan Army at the last stages of the war against the
LTTE – the parallel of the Rajapaksa Regime in this instance.
I discovered and wrote about the excess
credit taken by current staff – in 2004
when I intuitively felt that the current management was failing its pioneers/gurus. On that basis I declined
with much sadness to accept the plague that Yasmin was to handover to me at the
special ceremony – even though Yasmin had always demonstrated that respect for
me as her guru. It was about the Common Position. I gave the reason as credit
not being attributed to Mr. Martinus the Commercial Manager, Mr. Kulasekeram the
General Manager and the Chairman Capt Rakitha Wickramanayake. The CEO at that
time – in 2004 - was Mr. Peter Hill and not Mr. Kapila Chandrasena. To my mind –
it was NOT about the individuals but about the Positions through which I
invested in top management level of Air Lanka which was inherited by my
successors. I sensed serious damage being done to that heritage.
Going back to the question of appointment
of CEO Mr. Kapila Chandrasena who is a key figure being investigated by the BoI
– it did not matter that Mr. Kapila Chadrasena did not have demonstrated Airline
experience. What mattered was that there was no clear demarcation of duties
between Governance and Business and Mr. Chandrasena seems to have responded to
the ‘Business side’ with little commitment to ‘policy’- especially National Policy.
The BoI was appointed by the current Minister of Ports, Shipping and
Civil Aviation, the Hon Arjuna Ranatunga who is also without demonstrated experience
in Aviation or Politics. As per this report :
CEO
as a Director of SLA:
The above mentioned Article 82 confirms
that the intention of the founders of Sri Lankan Airlines (SLA) was for there
to be NO collusion between Shareholders and Employees. But it is not uncommon
for CEOs of Businesses to be part of the Governing Board. It’s the parallel of
a Ministerial position in democratic government and that of a Vice Chancellor
in a University governance structure here in Australia.
The elected side of the position is on the
basis of belief and the appointed side is on the basis of performance based merit.
But unless the structure is strong and particular in its framework of authority
the stronger side takes over both. Where such takeover is through the belief
side – as happens often in family – when children are young, it promotes
internal strength. Where the takeover is
by the appointed side – there is often over-performance to impress outsiders. The
way to prevent this is for the two to be separated – with the Belief side using
the hierarchical system and the Performance side using the Equal Opportunity
system of two sides of Equal status - as
in the two teams playing cricket – the activity that elevated the status of the
Aviation Minister the Hon Arjuna Ranatunga in Sri Lanka. He is now in the group
parallel to the Board of Cricket and NOT
in the team as captain. The CEO is the Captain of the Airline team and if he
did not resign from the Governing Board – the fault lies first with the
Chairman and the shareholders – which is virtually the Government that Mr. Ranatunga is now a part of.
The BoI needs to recommend as a
priority - pathways through which the
Board would not elect itself to play cricket.
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