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Inside the deadly instant loan app scam that blackmails with nudes
A blackmail scam is using instant loan apps to entrap and humiliate people across India and other countries in Asia, Africa, and Latin America. At least 60 Indians have killed themselves after being abused and threatened. A BBC undercover investigation has exposed those profiting from this deadly scam in India and China.
Astha Sinhaa woke up to her aunt’s panicked voice on the phone. “Don’t let your mother leave the house.” Half-asleep, the 17-year-old was terrified to find her mum Bhoomi Sinhaa in the next room, sobbing and frantic.
Here was her funny and fearless mother, a respected Mumbai-based property lawyer, a widow raising her daughter alone, reduced to a frenzied mess. “She was breaking apart,” Astha says. A panicked Bhoomi started telling her where all the important documents and contacts were, and seemed desperate to get out of the door. Astha knew she had to stop her. “Don’t let her out of your sight,” her aunt had told her. “Because she will end her life.”
Astha knew her mother had been getting some weird calls and that she owed somebody money, but she had no idea that Bhoomi was reeling from months of harassment and psychological torture. She had fallen victim to a global scam with tentacles in at least 14 countries that uses shame and blackmail to make a profit – destroying lives in the process.
The business model is brutal but simple.
There are many apps that promise hassle-free loans in minutes. Not all of them are predatory. But many – once downloaded – harvest your contacts, photos and ID cards, and use that information later to extort you.
When customers don’t repay on time – and sometimes even when they do – they share this information with a call centre where young agents of the gig economy, armed with laptops and phones are trained to harass and humiliate people into repayment.
At the end of 2021, Bhoomi had borrowed about 47,000 rupees ($565; £463) from several loan apps while she waited for some work expenses to come through. The money arrived almost immediately but with a big chunk deducted in charges. Seven days later she was due to repay but her expenses still hadn’t been paid, so she borrowed from another app and then another. The debt and interest spiralled until she owed about two million rupees ($24,000; £19,655).
Soon the recovery agents started calling. They quickly turned nasty, slamming Bhoomi with insults and abuse. Even when she had paid, they claimed she was lying. They called up to 200 times a day. They knew where she lived, they said, and sent her pictures of a dead body as a warning.
As the abuse escalated they threatened to message all of the 486 contacts in her phone telling them she was a thief and a whore. When they threatened to tarnish her daughter’s reputation too, Bhoomi could no longer sleep.
She borrowed from friends, family and more and more apps – 69 in total. At night, she prayed the morning would never come. But without fail at 07:00, her phone would start pinging and buzzing incessantly.
Eventually, Bhoomi had managed to pay back all of the money, but one app in particular – Asan Loan – wouldn’t stop calling. Exhausted, she couldn’t concentrate at work and started having panic attacks.
One day a colleague called her over to his desk and showed her something on his phone – a naked, pornographic picture of her. The photo had been crudely photoshopped, Bhoomi’s head stuck on someone else’s body, but it filled her with disgust and shame. She collapsed by her colleague’s desk. It had been sent by Asan Loan to every contact in her phone book. That was when Bhoomi thought of killing herself.
We’ve seen evidence of scams like this run by various companies all over the world. But in India alone, the BBC has found at least 60 people have killed themselves after being harassed by loan apps. Most were in their 20s and 30s – a fireman, an award-winning musician, a young mum and dad leaving behind their three- and five-year-old daughters, a grandfather and grandson who got involved in loan apps together. Four were just teenagers.
Most victims are too ashamed to speak about the scam, and the perpetrators have remained, for the most part, anonymous and invisible. After looking for an insider for months, the BBC managed to track down a young man who had worked as a debt recovery agent for call centres working for multiple loan apps.
Rohan – not his real name – told us he had been troubled by the abuse he had witnessed. Many customers cried, some threatened to kill themselves, he said. “It would haunt me all night.” He agreed to help the BBC expose the scam.
He applied for a job in two different call centres – Majesty Legal Services and Callflex Corporation – and spent weeks filming undercover. His videos captured young agents harassing clients. “Behave or I will smash you,” one woman says, swearing. She accuses the customer of incest and, when he hangs up, she starts laughing. Another suggests the client should prostitute his mother to repay the loan.
Rohan recorded over 100 incidents of harassment and abuse, capturing this systematic extortion on camera for the first time. The worst abuse he witnessed took place at Callflex Corporation, just outside Delhi. Here, agents routinely used obscene language to humiliate and threaten customers. These were not rogue agents going off-script – they were supervised and directed by managers at the call centre, including one called Vishal Chaurasia.
Rohan gained Chaurasia’s trust, and together with a journalist posing as an investor, arranged a meeting at which they asked him to explain exactly how the scam works.
When a customer takes out a loan, he explained, they give the app access to the contacts on their phone. Callflex Corporation is hired to recover the money – and if the customer misses a payment the company starts hassling them, and then their contacts. His staff can say anything, Chaurasia told them, as long as they get a repayment.
“The customer then pays because of the shame,” he said. “You’ll find at least one person in his contact list who can destroy his life.”
We approached Chaurasia directly but he did not want to comment. Callflex Corporation did not respond to our efforts to contact them.
One of the many lives destroyed was Kirni Mounika’s. The 24-year-old civil servant was the brains of her family, the only student at her school to get a government job, a doting sister to her three brothers. Her father, a successful farmer, was ready to support her to do a masters in Australia.
The Monday she took her own life, three years ago, she had hopped on her scooter to go to work as usual. “She was all smiles,” her father, Kirni Bhoopani, says.
It was only when police reviewed Mounika’s phone and bank statements that they found out she had borrowed from 55 different loan apps. It started with a loan of 10,000 rupees ($120; £100) and spiralled to more than 30 times that. By the time she decided to kill herself, she had paid back more than 300,000 rupees ($3,600; £2,960).
Police say the apps harassed her with calls and vulgar messages – and had started messaging her contacts.
On the day that she died Mounika was due to travel to her best friend’s wedding (pic BBC)
Mounika’s room is now a makeshift shrine. Her government ID card hangs by the door, the bag her mum packed for a wedding still lying there.
The thing that upsets her father the most is that she hadn’t told him what was going on. “We could have easily arranged the money,” he says, wiping tears from his eyes. He’s furious at the people who did this. As he was taking his daughter’s body home from the hospital her phone rang and he answered to an obscenity-laden rant. “They told us she has to pay,” he says. “We told them she was dead.” He wondered who these monsters could be.
Hari – not his real name – worked at a call centre doing recovery for one of the apps Mounika had borrowed from. The pay was good but by the time Mounika died he was already feeling uneasy about what he was part of. Although he claims not to have made abusive calls himself – he says he was in the team that made initial polite calls – he told us managers instructed staff to abuse and threaten people.
The agents would send messages to a victim’s contacts, painting the victim as a fraud and a thief. “Everyone has a reputation to maintain in front of their family. No-one is going to spoil that reputation for the measly sum of 5,000 rupees,” he says.
Once a payment had been made the system would ping “Success!” and they would move on to the next client.
When clients started threatening to take their own lives nobody took it seriously – then the suicides started happening. The staff called their boss, Parshuram Takve, to ask if they should stop. The following day Takve appeared in the office. He was angry. “He said, ‘Do what you’re told and make recoveries,'” Hari says. So they did. A few months later, Mounika was dead.
Takve was ruthless. But he wasn’t running this operation alone. Sometimes, Hari says, the software interface would switch to Chinese without warning. Takve was married to a Chinese woman called Liang Tian Tian. Together, they had set up the loan recovery business, Jiyaliang, in Pune, where Hari worked.
Liang Tian Tian and Parshuram Takve in their police mugshots (pic BBC)
In December 2020, Takve and Liang were arrested by police investigating a case of harassment and released on bail a few months later. In April 2022 they were charged with extortion, intimidation and abetment of suicide. By the end of the year they were on the run.
We couldn’t track down Takve. But when we investigated the apps Jiyaliang worked for, it led us to a Chinese businessman called Li Xiang. He has no online presence, but we found a phone number linked to one of his employees and, posing as investors, set up a meeting with Li.
With his face shoved uncomfortably close to the camera, he bragged about his businesses in India. “We are still operating now, just not letting Indians know we are a Chinese company,” he said.
Back in 2021, two of Li’s companies had been raided by Indian police investigating harassment by loan apps. Their bank accounts had been frozen. “You need to understand that because we aim to recover our investment quickly, we certainly don’t pay local taxes, and the interest rates we offer violate local laws,” he says.
Li told us his company has its own loan apps in India, Mexico and Colombia. He claimed to be an industry leader in risk control and debt collection services in South East Asia, and is now expanding across Latin America and Africa – with more than 3,000 staff in Pakistan, Bangladesh and India ready to provide “post-loan services”.
Then he explained what his company does to recover loans. “If you don’t repay, we may add you on WhatsApp, and on the third day, we will call and message you on WhatsApp at the same time, and call your contacts. Then, on the fourth day, if your contacts don’t pay, we have specific detailed procedures.
“We access his call records and capture a lot of his information. Basically, it’s like he’s naked in front of us.”
Bhoomi Sinha could handle the harassment, the threats, the abuse and the exhaustion – but not the shame of being linked to that pornographic image.
“That message actually stripped me naked in front of the entire world,” she says. “I lost my self-respect, my morality, my dignity, everything in a second.”
It was shared with lawyers, architects, government officials, elderly relatives and friends of her parents – people who would never look at her in the same way again. “It has tarnished the core of me, like if you join a broken glass, there will still be cracks on it,” she says.
She has been ostracised by neighbours in the community she has lived in for 40 years. “As of today, I have no friends. It’s just me I guess,” she says with a sad chuckle.
Some of her family still don’t speak to her. And she constantly wonders whether the men she works with are picturing her naked.
The morning that her daughter Astha found her she was at her lowest ebb. But it was also the moment she decided to fight back. “I don’t want to die like this,” she decided.
She filed a police report but has heard nothing since. All she could do was change her number and get rid of her sim card – and when Astha started receiving calls her daughter destroyed hers too. She told friends, family and colleagues to ignore the calls and messages and, eventually, they all but stopped.
Bhoomi found support in her sisters, her boss and an online community of others abused by loan apps. But mostly, she found strength in her daughter.
“I must have done something good to be given a daughter like this,” she says. “If she hadn’t stood by me then I would have been one of the many people who’ve killed themselves because of loan apps.”
We put the allegations in this report to Asan Loan – and also, through contacts, to Liang Tian Tian and Parshuram Takve, who are in hiding. Neither the company nor the couple responded.
When asked for comment, Li Xiang told the BBC that he and his companies comply with all local laws and regulations, have never run predatory loan apps, have ceased collaboration with Jiyaliang, the loan recovery company run by Liang Tian Tian and Parshuram Takve, and do not collect or use customers’ contact information.
He said his loan recovery call centres adhere to strict standards and he denied profiting from the suffering of ordinary Indians.
Majesty Legal Services deny using customers’ contacts to recover loans. They told us their agents are instructed to avoid abusive or threatening calls, and any violation of the company’s policies results in dismissal.
(BBC)
by Dr Gotabhya Ranasinghe
Senior Consultant Cardiologist
National Hospital Sri Lanka
When we sought a meeting with Hon Dr. Ramesh Pathirana, Minister of Health, he graciously cleared his busy schedule to accommodate us. Renowned for his attentive listening and deep understanding, Minister Pathirana is dedicated to advancing the health sector. His openness and transparency exemplify the qualities of an exemplary politician and minister.
Dr. Palitha Mahipala, the current Health Secretary, demonstrates both commendable enthusiasm and unwavering support. This combination of attributes makes him a highly compatible colleague for the esteemed Minister of Health.
Our discussion centered on a project that has been in the works for the past 30 years, one that no other minister had managed to advance.
Minister Pathirana, however, recognized the project’s significance and its potential to revolutionize care for heart patients.
The project involves the construction of a state-of-the-art facility at the premises of the National Hospital Colombo. The project’s location within the premises of the National Hospital underscores its importance and relevance to the healthcare infrastructure of the nation.
This facility will include a cardiology building and a tertiary care center, equipped with the latest technology to handle and treat all types of heart-related conditions and surgeries.
Securing funding was a major milestone for this initiative. Minister Pathirana successfully obtained approval for a $40 billion loan from the Asian Development Bank. With the funding in place, the foundation stone is scheduled to be laid in September this year, and construction will begin in January 2025.
This project guarantees a consistent and uninterrupted supply of stents and related medications for heart patients. As a result, patients will have timely access to essential medical supplies during their treatment and recovery. By securing these critical resources, the project aims to enhance patient outcomes, minimize treatment delays, and maintain the highest standards of cardiac care.
Upon its fruition, this monumental building will serve as a beacon of hope and healing, symbolizing the unwavering dedication to improving patient outcomes and fostering a healthier society.We anticipate a future marked by significant progress and positive outcomes in Sri Lanka’s cardiovascular treatment landscape within the foreseeable timeframe.
by Fr. Emmanuel Fernando, OMI
Jesuit Fr. Aloysius Pieris (affectionately called Fr. Aloy) celebrated his 90th birthday on April 9, 2024 and I, as the editor of our Oblate Journal, THE MISSIONARY OBLATE had gone to press by that time. Immediately I decided to publish an article, appreciating the untiring selfless services he continues to offer for inter-Faith dialogue, the renewal of the Catholic Church, his concern for the poor and the suffering Sri Lankan masses and to me, the present writer.
It was in 1988, when I was appointed Director of the Oblate Scholastics at Ampitiya by the then Oblate Provincial Fr. Anselm Silva, that I came to know Fr. Aloy more closely. Knowing well his expertise in matters spiritual, theological, Indological and pastoral, and with the collaborative spirit of my companion-formators, our Oblate Scholastics were sent to Tulana, the Research and Encounter Centre, Kelaniya, of which he is the Founder-Director, for ‘exposure-programmes’ on matters spiritual, biblical, theological and pastoral. Some of these dimensions according to my view and that of my companion-formators, were not available at the National Seminary, Ampitiya.
Ever since that time, our Oblate formators/ accompaniers at the Oblate Scholasticate, Ampitiya , have continued to send our Oblate Scholastics to Tulana Centre for deepening their insights and convictions regarding matters needed to serve the people in today’s context. Fr. Aloy also had tried very enthusiastically with the Oblate team headed by Frs. Oswald Firth and Clement Waidyasekara to begin a Theologate, directed by the Religious Congregations in Sri Lanka, for the contextual formation/ accompaniment of their members. It should very well be a desired goal of the Leaders / Provincials of the Religious Congregations.
Besides being a formator/accompanier at the Oblate Scholasticate, I was entrusted also with the task of editing and publishing our Oblate journal, ‘The Missionary Oblate’. To maintain the quality of the journal I continue to depend on Fr. Aloy for his thought-provoking and stimulating articles on Biblical Spirituality, Biblical Theology and Ecclesiology. I am very grateful to him for his generous assistance. Of late, his writings on renewal of the Church, initiated by Pope St. John XX111 and continued by Pope Francis through the Synodal path, published in our Oblate journal, enable our readers to focus their attention also on the needed renewal in the Catholic Church in Sri Lanka. Fr. Aloy appreciated very much the Synodal path adopted by the Jesuit Pope Francis for the renewal of the Church, rooted very much on prayerful discernment. In my Religious and presbyteral life, Fr.Aloy continues to be my spiritual animator / guide and ongoing formator / acccompanier.
Fr. Aloysius Pieris, BA Hons (Lond), LPh (SHC, India), STL (PFT, Naples), PhD (SLU/VC), ThD (Tilburg), D.Ltt (KU), has been one of the eminent Asian theologians well recognized internationally and one who has lectured and held visiting chairs in many universities both in the West and in the East. Many members of Religious Congregations from Asian countries have benefited from his lectures and guidance in the East Asian Pastoral Institute (EAPI) in Manila, Philippines. He had been a Theologian consulted by the Federation of Asian Bishops’ Conferences for many years. During his professorship at the Gregorian University in Rome, he was called to be a member of a special group of advisers on other religions consulted by Pope Paul VI.
Fr. Aloy is the author of more than 30 books and well over 500 Research Papers. Some of his books and articles have been translated and published in several countries. Among those books, one can find the following: 1) The Genesis of an Asian Theology of Liberation (An Autobiographical Excursus on the Art of Theologising in Asia, 2) An Asian Theology of Liberation, 3) Providential Timeliness of Vatican 11 (a long-overdue halt to a scandalous millennium, 4) Give Vatican 11 a chance, 5) Leadership in the Church, 6) Relishing our faith in working for justice (Themes for study and discussion), 7) A Message meant mainly, not exclusively for Jesuits (Background information necessary for helping Francis renew the Church), 8) Lent in Lanka (Reflections and Resolutions, 9) Love meets wisdom (A Christian Experience of Buddhism, 10) Fire and Water 11) God’s Reign for God’s poor, 12) Our Unhiddden Agenda (How we Jesuits work, pray and form our men). He is also the Editor of two journals, Vagdevi, Journal of Religious Reflection and Dialogue, New Series.
Fr. Aloy has a BA in Pali and Sanskrit from the University of London and a Ph.D in Buddhist Philosophy from the University of Sri Lankan, Vidyodaya Campus. On Nov. 23, 2019, he was awarded the prestigious honorary Doctorate of Literature (D.Litt) by the Chancellor of the University of Kelaniya, the Most Venerable Welamitiyawe Dharmakirthi Sri Kusala Dhamma Thera.
Fr. Aloy continues to be a promoter of Gospel values and virtues. Justice as a constitutive dimension of love and social concern for the downtrodden masses are very much noted in his life and work. He had very much appreciated the commitment of the late Fr. Joseph (Joe) Fernando, the National Director of the Social and Economic Centre (SEDEC) for the poor.
In Sri Lanka, a few religious Congregations – the Good Shepherd Sisters, the Christian Brothers, the Marist Brothers and the Oblates – have invited him to animate their members especially during their Provincial Congresses, Chapters and International Conferences. The mainline Christian Churches also have sought his advice and followed his seminars. I, for one, regret very much, that the Sri Lankan authorities of the Catholic Church –today’s Hierarchy—- have not sought Fr.
Aloy’s expertise for the renewal of the Catholic Church in Sri Lanka and thus have not benefited from the immense store of wisdom and insight that he can offer to our local Church while the Sri Lankan bishops who governed the Catholic church in the immediate aftermath of the Second Vatican Council (Edmund Fernando OMI, Anthony de Saram, Leo Nanayakkara OSB, Frank Marcus Fernando, Paul Perera,) visited him and consulted him on many matters. Among the Tamil Bishops, Bishop Rayappu Joseph was keeping close contact with him and Bishop J. Deogupillai hosted him and his team visiting him after the horrible Black July massacre of Tamils.
Sri Lanka-Singapore Free Trade Agreement
By Gomi Senadhira
senadhiragomi@gmail.com
“You might tell fairy tales, but the progress of a country cannot be achieved through such narratives. A country cannot be developed by making false promises. The country moved backward because of the electoral promises made by political parties throughout time. We have witnessed that the ultimate result of this is the country becoming bankrupt. Unfortunately, many segments of the population have not come to realize this yet.” – President Ranil Wickremesinghe, 2024 Budget speech
Any Sri Lankan would agree with the above words of President Wickremesinghe on the false promises our politicians and officials make and the fairy tales they narrate which bankrupted this country. So, to understand this, let’s look at one such fairy tale with lots of false promises; Ranil Wickremesinghe’s greatest achievement in the area of international trade and investment promotion during the Yahapalana period, Sri Lanka-Singapore Free Trade Agreement (SLSFTA).
It is appropriate and timely to do it now as Finance Minister Wickremesinghe has just presented to parliament a bill on the National Policy on Economic Transformation which includes the establishment of an Office for International Trade and the Sri Lanka Institute of Economics and International Trade.
Was SLSFTA a “Cleverly negotiated Free Trade Agreement” as stated by the (former) Minister of Development Strategies and International Trade Malik Samarawickrama during the Parliamentary Debate on the SLSFTA in July 2018, or a colossal blunder covered up with lies, false promises, and fairy tales? After SLSFTA was signed there were a number of fairy tales published on this agreement by the Ministry of Development Strategies and International, Institute of Policy Studies, and others.
However, for this article, I would like to limit my comments to the speech by Minister Samarawickrama during the Parliamentary Debate, and the two most important areas in the agreement which were covered up with lies, fairy tales, and false promises, namely: revenue loss for Sri Lanka and Investment from Singapore. On the other important area, “Waste products dumping” I do not want to comment here as I have written extensively on the issue.
1. The revenue loss
During the Parliamentary Debate in July 2018, Minister Samarawickrama stated “…. let me reiterate that this FTA with Singapore has been very cleverly negotiated by us…. The liberalisation programme under this FTA has been carefully designed to have the least impact on domestic industry and revenue collection. We have included all revenue sensitive items in the negative list of items which will not be subject to removal of tariff. Therefore, 97.8% revenue from Customs duty is protected. Our tariff liberalisation will take place over a period of 12-15 years! In fact, the revenue earned through tariffs on goods imported from Singapore last year was Rs. 35 billion.
The revenue loss for over the next 15 years due to the FTA is only Rs. 733 million– which when annualised, on average, is just Rs. 51 million. That is just 0.14% per year! So anyone who claims the Singapore FTA causes revenue loss to the Government cannot do basic arithmetic! Mr. Speaker, in conclusion, I call on my fellow members of this House – don’t mislead the public with baseless criticism that is not grounded in facts. Don’t look at petty politics and use these issues for your own political survival.”
I was surprised to read the minister’s speech because an article published in January 2018 in “The Straits Times“, based on information released by the Singaporean Negotiators stated, “…. With the FTA, tariff savings for Singapore exports are estimated to hit $10 million annually“.
As the annual tariff savings (that is the revenue loss for Sri Lanka) calculated by the Singaporean Negotiators, Singaporean $ 10 million (Sri Lankan rupees 1,200 million in 2018) was way above the rupees’ 733 million revenue loss for 15 years estimated by the Sri Lankan negotiators, it was clear to any observer that one of the parties to the agreement had not done the basic arithmetic!
Six years later, according to a report published by “The Morning” newspaper, speaking at the Committee on Public Finance (COPF) on 7th May 2024, Mr Samarawickrama’s chief trade negotiator K.J. Weerasinghehad had admitted “…. that forecasted revenue loss for the Government of Sri Lanka through the Singapore FTA is Rs. 450 million in 2023 and Rs. 1.3 billion in 2024.”
If these numbers are correct, as tariff liberalisation under the SLSFTA has just started, we will pass Rs 2 billion very soon. Then, the question is how Sri Lanka’s trade negotiators made such a colossal blunder. Didn’t they do their basic arithmetic? If they didn’t know how to do basic arithmetic they should have at least done their basic readings. For example, the headline of the article published in The Straits Times in January 2018 was “Singapore, Sri Lanka sign FTA, annual savings of $10m expected”.
Anyway, as Sri Lanka’s chief negotiator reiterated at the COPF meeting that “…. since 99% of the tariffs in Singapore have zero rates of duty, Sri Lanka has agreed on 80% tariff liberalisation over a period of 15 years while expecting Singapore investments to address the imbalance in trade,” let’s turn towards investment.
Investment from Singapore
In July 2018, speaking during the Parliamentary Debate on the FTA this is what Minister Malik Samarawickrama stated on investment from Singapore, “Already, thanks to this FTA, in just the past two-and-a-half months since the agreement came into effect we have received a proposal from Singapore for investment amounting to $ 14.8 billion in an oil refinery for export of petroleum products. In addition, we have proposals for a steel manufacturing plant for exports ($ 1 billion investment), flour milling plant ($ 50 million), sugar refinery ($ 200 million). This adds up to more than $ 16.05 billion in the pipeline on these projects alone.
And all of these projects will create thousands of more jobs for our people. In principle approval has already been granted by the BOI and the investors are awaiting the release of land the environmental approvals to commence the project.
I request the Opposition and those with vested interests to change their narrow-minded thinking and join us to develop our country. We must always look at what is best for the whole community, not just the few who may oppose. We owe it to our people to courageously take decisions that will change their lives for the better.”
According to the media report I quoted earlier, speaking at the Committee on Public Finance (COPF) Chief Negotiator Weerasinghe has admitted that Sri Lanka was not happy with overall Singapore investments that have come in the past few years in return for the trade liberalisation under the Singapore-Sri Lanka Free Trade Agreement. He has added that between 2021 and 2023 the total investment from Singapore had been around $162 million!
What happened to those projects worth $16 billion negotiated, thanks to the SLSFTA, in just the two-and-a-half months after the agreement came into effect and approved by the BOI? I do not know about the steel manufacturing plant for exports ($ 1 billion investment), flour milling plant ($ 50 million) and sugar refinery ($ 200 million).
However, story of the multibillion-dollar investment in the Petroleum Refinery unfolded in a manner that would qualify it as the best fairy tale with false promises presented by our politicians and the officials, prior to 2019 elections.
Though many Sri Lankans got to know, through the media which repeatedly highlighted a plethora of issues surrounding the project and the questionable credentials of the Singaporean investor, the construction work on the Mirrijiwela Oil Refinery along with the cement factory began on the24th of March 2019 with a bang and Minister Ranil Wickremesinghe and his ministers along with the foreign and local dignitaries laid the foundation stones.
That was few months before the 2019 Presidential elections. Inaugurating the construction work Prime Minister Ranil Wickremesinghe said the projects will create thousands of job opportunities in the area and surrounding districts.
The oil refinery, which was to be built over 200 acres of land, with the capacity to refine 200,000 barrels of crude oil per day, was to generate US$7 billion of exports and create 1,500 direct and 3,000 indirect jobs. The construction of the refinery was to be completed in 44 months. Four years later, in August 2023 the Cabinet of Ministers approved the proposal presented by President Ranil Wickremesinghe to cancel the agreement with the investors of the refinery as the project has not been implemented! Can they explain to the country how much money was wasted to produce that fairy tale?
It is obvious that the President, ministers, and officials had made huge blunders and had deliberately misled the public and the parliament on the revenue loss and potential investment from SLSFTA with fairy tales and false promises.
As the president himself said, a country cannot be developed by making false promises or with fairy tales and these false promises and fairy tales had bankrupted the country. “Unfortunately, many segments of the population have not come to realize this yet”.
(The writer, a specialist and an activist on trade and development issues . )
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