LTTE international presents an enduring threat, July 3, 2011

Lakbima news staffer Ranga Jayasuriya asked terrorism expert Prof. Rohan Gunaratna about the LTTE's missing assets and as to how realistic are the government's efforts to trace LTTE assets.
Excepts:
According to your estimates, what was the net worth of the LTTE assets worldwide, when it was militarily defeated in May 2009?
At its peak the LTTE was worth USD 300 million.
The LTTE is believed to have owned numerous business ventures, owned by third party individuals and organizations on behalf of the LTTE. Can you name a few such ventures?
The LTTE had multiple sources of income. The principal sources were individual collection and LTTE businesses. The businesses included investment in real estate, shipping, grocery stores, gold and jewellery stores, gas stations, restaurants, production of films, mass media organizations (TV, radio, print), industries, and in several other sectors. By creating front, cover and sympathetic organizations, the LTTE accessed government and NGO funding under the guise of reintegrating new migrants to host society. For example, LTTE affiliates in Canada used deception to access several million dollars from metro, provincial and federal governments. The LTTE’s premier front Tamil Rehabilitation Organization raised millions of dollars that went into procuring arms, ammunition and explosives from North Korea, the principal supplier of weapons to the LTTE since 1997. Unfortunately, it took several years for governments worldwide to work together to dismantle the LTTE international network. Largely due to the good work of the western security and intelligence services in the West, the LTTE international network was rendered almost bankrupt by early 2009. Although unacknowledged, the LTTE cells were disrupted globally starting with the US. The disruption of the three LTTE fundraising and procurement cells in the US monitored by the FBI even before 9/11 created the impetus for Canada, Europe and Australia to share information and intelligence on the LTTE. This spate of operations led the US, India and a few other countries to share intelligence on the LTTE ships transporting weapons from North Korea to the LTTE leading to their destruction. Due to financial difficulties, the LTTE found it exceptionally difficult to organize even the last shipment of weapons transported on board MV Princess Easwary in early 2009.

How much money did the LTTE raise per year on average when it was waging war in Sri Lanka?
Based on debriefing of LTTE activists detained or cooperating, and LTTE financial reports recovered by governments worldwide, the LTTE was a very wealthy terrorist and insurgent group. The LTTE raised USD 25 million to 50 million per year from 1987 to 1993, USD 50 to 75 million per year from 1993 to 2002 and USD 200 million per year from 2002 to 2008.

What is the situation of those LTTE owned business ventures after the decimation of the LTTE in Sri Lanka?
After the LTTE was defeated in Sri Lanka, 90% of the Tamils in the diaspora do not wish to contribute money to the LTTE. The ordinary Tamils who were put under pressure to contribute have seen for their own eyes how LTTE activists live in luxury homes and driving one or two cars. Because LTTE internationally was so desperate for revenue after the LTTE was defeated in Sri Lanka, the new LTTE leadership has moved into criminal activity to raise funds. For instance, the LTTE renamed the arms ship MV Princess Easwary as MV Ocean Lady and used it for human smuggling in 2009. This ship’s Captain - Kamalraj Kandasamy alias Hamalraj Handasamy was arrested in Canada recently. The LTTE also engaged in another human smuggling venture via the MV Sun Sea in 2010. The post-war LTTE raised USD 20 million from human smuggling operations and other criminal activity alone. This money is now used by the LTTE to lobby and campaign against Sri Lanka and to tarnish Sri Lanka’s image through propaganda.

The LTTE’s former chief arms procurer and Prabakaran’s successor as the leader, Kumaran Pathmanathan alias KP has said that he knows where the LTTE’s funds are, and that he is trying to trace and bring them back to Sri Lanka to reinvest in the North and East. How realistic is his assurance?
After KP’s arrest in Malaysia and deportation to Sri Lanka in August 2009, KP has rejected violence and embraced peace. KP repents the role he played as the principal architect and long time operator of the international network of the LTTE from 1984-2002. He regrets the role he played in disseminating false propaganda, terrorist fund raising, clandestine procurement and illegal shipping. Today, KP has dedicated his life towards rebuilding the north and the east devastated by insurgency and terrorism. He has emerged as a champion of peace. After the death of Prabhakaran, KP’s new mission is to rebuild the traditional friendship between the Tamils and Sinhalese and Tamils and Muslims. Although it is difficult for many to accept, for both Sinhalese and Tamils, KP’s biggest contribution has been his transformation. It is because the Government of Sri Lanka developed the understanding that LTTE cadres including its leaders must be rehabilitated. Rather than prosecuting and punishing the LTTE for the crimes they have committed, the Sri Lankan leaders - Gotabaya Rajapaksa and Milinda Moragoda developed a strategy to guide the misguided and mainstream the extreme. Today, KP is engaging LTTE activists globally and inviting them to come and work with him to rebuild the north and the east. KP’s message to the Tamils driven by LTTE propaganda is not to waste their time and resources on campaigning against Sri Lanka but to spend the rest of their life in a meaningful way by doing good. As most Tamils were tired of the LTTE, the response to return to Sri Lanka and contribute to rebuild the north and the east has been exceptional.As the LTTE financial network evolved, KP’s knowledge of current assets of the LTTE is limited. First, the LTTE international network has reorganized itself after the death of Prabhakaran and the arrest of KP. The new LTTE functions under three leaders - Rudrakumaran, Father Emmanuel, and Nediyawan. These factions and their fronts maintain LTTE interests globally - from the US to Canada and from the UK to Australia. Second, KP was removed by Prabhakaran in December 2002 and Castro who was appointed as the international chief replaced most of KP’s appointees. After a hiatus of six years, KP was reappointed by Prabhakaran in January 2009 but he was arrested in August 2009. During his second stint, KP was not given the responsibility for finance, procurement or shipping but only propaganda. As such, KP had to rely on historical (1984-2002) knowledge and new information (2009) to track LTTE finances. However, there are others who have abandoned the LTTE and they have provided significant information on the LTTE’s financial sources and methods recently.

When KP was arrested, the government promised to trace those LTTE assets and bring them back to Sri Lanka. According to your observation, how far is the government successful in that endeavour?
The Sri Lankan government launched a comprehensive strategy to recover LTTE assets. The key element of that strategy was to give an opportunity for LTTE activists managing LTTE assets to hand over their assets to the Sri Lankan government or use it for development in the north and the east. Those who did not comply and decided to continue to work with the LTTE factions overseas to radicalize another generation of Tamils were issued with arrest warrants. Today, these LTTE activists cannot travel and eventually they will be arrested and prosecuted. The wheels of government moves slowly and steadily and those who fund terrorist and extremist organizations, individuals and activities will be arrested sooner or later.

We are yet to see any tangible progress in tracing LTTE assets overseas. Why is that?
The LTTE’s assets in Sri Lanka have been recovered. However, the procedure for recovery of assets overseas takes meticulous planning and preparation. For instance, due to comingling of funds, there is a need to distinguish between LTTE funds and the individual’s personal funds. Furthermore, recovering assets overseas involves working with foreign governments. Sri Lanka has been working closely with several governments worldwide at two levels. First to arrest LTTE activists holding on to LTTE assets, and second, to recover assets under their control.A brilliant example of an operation mounted to recover one such LTTE asset was that of the LTTE ship “Princess Chrisantha” from a Southeast Asian country in December 2009. The LTTE ship - Princess Chrisantha was used for arms smuggling across international waters. The LTTE also planned to use a helicopter on board this ship to rescue Prabhakaran. The ship was brought to Sri Lanka by the Sri Lankan intelligence and the Marine Special Forces on December 21, 2009. The well-coordinated national level operation coordinated by the Ministry of Defence was led by Defence Secretary Gotabaya Rajapaksa.

Was there any central organization, or a person (KP, Castro, Pottu Amman, etc.,) entrusted with handling funds collected by the LTTE through its numerous fund raising efforts? Is that central organization still active?
Handling of LTTE funds was under Ranjith Appah in Sri Lankan, and internationally under Sana Chandran in Holland who has now been arrested. Sana Chandran sent millions of dollars of money raised in North America and Europe to East Asia for procuring weapons from North Korea. Sana Chandran’s links to Nediyawan are well established. It is a question of time before Sana Chandran’s associates will also be arrested. The international security intelligence services are also on the look out for Ponniah Anandarajah, the former LTTE auditor and accountant who is a US citizen.

Do the fundraising efforts of the LTTE continue even after its military defeat? (For instance, six Tiger suspects arrested in Germany last year were alleged to have threatened Tamils to pay 50 Euro a month even after the defeat of the LTTE).
The LTTE was dismantled in Sri Lanka but the LTTE international, remains intact. Although LTTE international has fractured, the group presents an enduring threat. Today, the strategy of the three LTTE factions is to revive the LTTE, organizationally. The first phase of this strategy is propaganda. At a time when the Sri Lankan government was reaching out to the Tamils worldwide, the Darusman Panel report has given the LTTE the required oxygen to revive. The next stage for the LTTE is to revive their fund raising operations. Although Rudrakumaran is unlikely to go down the road of violence, the Nediyawan group is likely to use the funds to resume a campaign of terror. Nediyawan has not yet rejected the Tiger flag, Prabhakaran or the armed struggle (terrorism). As such, it is paramount for Sri Lanka to sustain its efforts to dismantle the LTTE international network.

Compared to the fund raising efforts during the LTTE’s hey days, how successful are fundraising efforts of the LTTE that are being carried out right now?
During the last 20 years the LTTE exercised implicit and explicit coercion to raise funds. At least 90% of the Tamils overseas do not wish to contribute to the LTTE today. They question, with a LTTE army, LTTE navy, LTTE air force, when Prabhakaran could not win the fight. How can Nediyawan, Father Emmanuel or Rudrakumaran do this? In the past, the Tamils had no option because their extended family lived in LTTE controlled areas and the LTTE treated the family members of those who did not pay with incarceration. Today, with the LTTE dictatorship dismantled and democracy restored, the LTTE cannot exercise collateral coercion on the Tamils. LTTE fund raising has dropped to 10% of its past but may revive unless the government maintains its sights on the LTTE’s international network.

During the LTTE’s military campaign, the objective of fund raising efforts, stated or otherwise, was to finance its war chest. With the military phase of the Tamil separatist campaign appearing to have passed, where would these funds and any additional funds being raised now, be invested? Are there any indications that funds previously raised or extorted from diaspora Tamils to beef up the LTTE’s armoury are now being diverted to “anti-Sri Lanka propaganda” campaigns waged against the Government of Sri Lanka? If so, who are the main recipients of those funds?
Even at the height of the LTTE’s terrorist and insurgent campaign, the LTTE invested money in propaganda. The LTTE had a dedicated account called Geneva account for lobbying the human rights NGOs and they have been successful. Today, the LTTE spends most of its funds in lobbying and campaigning western NGOs, political leaders and international organizations. Operating under GTF and BTF, the LTTE leaders in the UK visited the US State Department in Washington DC and the UN in New York, recently.

The Transnational Government of Tamil Eelam (TGTE) projects itself as a government in exile. What are the main funding sources of the TGTE? How far are those funding sources of the TGTE linked to sources which formerly funded the LTTE’s war?
TGTE is the new face of the LTTE. TGTE was the creation of Rudrakumaran and KP. Although KP believes in promoting moderation, toleration and coexistence, Rudrakumaran is still spreading hatred and intolerance. TGTE is supported by the same group of hardliners that supported the LTTE in the past. The link between the LTTE and TGTE is irrefutable.

International cooperation to tackle terrorist fundraising and money laundering was instrumental in nettings some key LTTE arms smugglers such as Pratheepan Thavaraja who was arrested in Thailand and extradited to US and Murugesu Vinayagamoorthy who was arrested by FBI with seven suspects when trying to procure anti aircraft missiles, etc. According to your observations, is there a decline in international attention to LTTE activities after the defeat of the LTTE in May 2009?
Based on US intelligence, Pratheepan Thavarasa, the deputy procurement chief of the LTTE was arrested in Indonesia and flown to the US through Thailand. His arrest was the first major breakthrough to dismantle the LTTE shipping network. The US was interested in Pratheepan because of his links to a network of LTTE activists who arranged for a US Congressman to visit the LTTE. The US did not like the LTTE flirting with their politicians. Although the Congressmen may have not known, the US government knew that the funding for this Congressman’s travel was organized by Nediyawan. The LTTE and its current leader Nediyawan will remain the target of governments worldwide until they are active internationally.


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