• A fleet of 40 vehicles hired for State Engineering used by ex-minister’s cronies

by Nirmala Kannangara

Weerasangilige Wimal Weerawansa who mouths slogans and gives breast-beating displays of patriotism from political platforms despite his involvement in large-scale corruption and undercover activities, has once again been exposed as a corrupt politician. This time around, details have emerged of how he allegedly hired a fleet of 40 luxury vehicles spending millions of rupees of taxpayers’ hard-earned money, to have relatives and friends travel in luxury.

The Sunday Leader this week exposes how Weerawansa misused State Engineering Corporation (SEC) funds to pay the hiring charges for this fleet of vehicles when he was Housing and Construction Minister in the Rajapaksa regime. Earlier this newspaper exposed how Weerawansa who was operating a small telecommunication centre in Kadawatha and whose sole asset was a four perch land in Millegahawatte, Pahala Biyanwila in Kadawatha at the time he entered parliament in 2000, became a multi-millionaire in no time after he extended his support to Mahinda Rajapaksa in 2008. Despite portraying himself as a patriotic, clean politician, the renegade Marxist has now been exposed as a wheeler-dealer who made money through various nefarious deals.

When accused of hiring vehicles using state funds for his relatives, Weerawansa had responded that none of these vehicles were used by his relatives or friends but were used for official work.

Wimal Weerawansa

Be that as it may, The Sunday Leader is in possession of details of the 40 SEC vehicles hired during Weerawansa’s tenure. However the details of how some of these vehicles were assigned to are not known as all the detailed files relating to this fraud have been taken over by the Commission to Investigate Allegation into Bribery or Corruption, said Deputy Chairman SEC, Mahen Pelpola.

According to the SEC Sectional Heads, although they requested vehicles for official purposes, mainly for its site work, the then Deputy General Manager (Human Resources and Administration) Samantha Lokuhennadige allegedly hired the vehicles without calling for tenders and assigned them to Weerawansa’s relatives and friends instead of to the SEC officials who had made the requests. According to them, Lokuhennadige maintained records to show that those vehicles were used for SEC work.

According to the sources, it was Samantha Priyanath Lokuhennadige that was responsible for releasing vehicles for Weerawansa’s family and friends but the then Ministry Secretary Wimalasiri Perera had not taken any action although he was informed of what was happening at the SEC.

“Wimalasiri Perera was a stooge of Weerawansa and he gave his blessings to this racket as he too obtained one of these 40 luxury vehicles for his wife’s use. Lokuhennadige was loyal to the minister as it was Weerawansa who had offered the job as Deputy General Manager (Human Resources and Administration) to Lokuhennadige at the SEC after he (Weerawansa) became the subject minister. Lokuhennadige was an Army Captain who had been sacked for a financial fraud,” sources who wished to remain anonymous alleged.

Weerawansa was appointed as the Housing and Construction Minister in 2011 and according to the documentary evidence, those vehicles had been hired in 2012. For the year 2014 alone, SEC paid Rs. 41.073 million for the 40 vehicles.

The sources further said SEC should hold a separate inquiry to find out how these 40 vehicles were hired without calling for tenders.

“Although the normal procedure is to call tenders and obtain the vehicles for a fixed rate, on the instructions of Weerawansa, Lokuhennadige obtained most of these vehicles from parties known to Weerawansa and even from his relations,” sources alleged.

KR-7730 (Suzuki Alto car) had allegedly been used by Dushmantha Abeysinghe who was the Parliamentary Affairs Secretary to Weerawansa. According to 2014 running charts, this car has never been used for any SEC head office work or at any of its sites. Although Deputy General Manager (Constructions) A. A. Piyadasa had made a request on February 10, 2012 for a vehicle for the SEC Angulana site and the Transport Officer had recommended the request, Lokuhennadige had allegedly hired the vehicle from Nuwan Indika Perera on February 14, 2012 and had given it to Weerawansa’s Parliamentary Secretary instead of to the Construction Division. On March 13, 2014, Rs. 38,000 had been paid as February hiring charges while Rs. 56,240 had been paid on May 2, 2014 for the month of March through cheque Nos: 172314 and 172506 respectively.

KQ-7961 had allegedly been given to a private party (name unknown) and according to the running charts this car has never been used by a SEC official and not driven by their drivers but by Sampath Kumara who was not a SEC employee. This vehicle had been hired from Isuru Travels and Tours who had been paid Rs. 42,620 on March 11, 2014 as hiring fees for the month of January. This vehicle too had not been used for any official work.

JO-5953 (Nissan car) had allegedly been used by Udaya Devamulla, Weerawansa’s Co-ordinating Secretary from June 9, 2012. On the request of Ruwan Nayanananda, the hiring charge which was Rs. 38,000 had been increased to Rs. 45,000 by the then Chairman Jagath Perera and Lokuhennadige. This car has not been used at any SEC sites or at the head office.

KT-2884 (motor car) had allegedly been used for private work at Pannipitiya, Bellanwila, Horana, Wadduwa and Colombo areas and according to the running charts, the drivers of this vehicle were Ariyawansa and Vishwa Wanshanath. At the inquiry held at SEC in May, 2015, Ariyawansa had stated that he has never driven this vehicle although his name had been put on the running chart to mislead the SEC. On the request of U. E. R. Hettiarachchi, Deputy General Manager (Special Operations), this vehicle had been obtained from N. Sriyani Perera, but had never been released to Hettiarachchi to be used at the Horana SEC site or for any other official work but had been given to an unknown party.

GQ-4894 (Mitsubishi motor car) had allegedly been used for private work at Matara, Kekenadura, Kamburugamuwa, Tangalle and Beliatta. This vehicle had been requested on January 10, 2012 by Deputy General Manager (Constructions) K. A. Shantha Kumara to be used at construction sites. However, Lokuhennadige had obtained the vehicle from N. A. Dayananda for a monthly rental of Rs. 45,000 and given it to an unknown outsider. According to the running charts, this vehicle had never been used for any official work in Colombo or at any of the SEC sites in the country.

GI- 4501(motor car) had allegedly been assigned to Weerawansa’s Co-ordinating Secretary Ranjith Wickremasinghe and had been hired from the latter’s sister, Vajira Manohaari Wickremasinghe on October 24, 2012 for a monthly rental of Rs. 45,000. This vehicle too had not been used for any official work but for Wickremasinghe’s private work.

KQ-9762 (motor car) had allegedly been used by A. N. S. Mendis, Public Relations Officer of Weerawansa. The vehicle had been obtained from Isuru Travels and Tours who had charged Rs. 425,700 from January to October, 2014.

PE-3626 (double cab) had never been driven by SEC driver Chaminda Kumara according to the inquiry report but his name had been mentioned in the running chart fraudulently. This vehicle had allegedly been hired on May 8, 2013 for a rental of Rs. 90,000 from Isuru Travels and Tours. Rs. 1.131 million had been paid from January to September, 2014. It has been revealed that this vehicle too had never been used for SEC work.

KU-9867 (motor car) had allegedly been used by the then Director, Urban Development Authority (UDA) Suresh Indika but had never been used for SEC work, according to the running charts. This had been hired from K. S. E. G. M. Kulathilake on November 5, 2013 for a monthly rental of Rs. 38,000. On a request made by Kulathilake on May 28, 2014, the monthly rental had been increased to Rs. 45,000 by former Chairman Jagath Perera without consulting any official. JE-6557 (motor car) had allegedly been driven by Sampath Madhuranga who was not a SEC employee. This vehicle had been assigned to an unknown party but the payments had been made by the Engineering Corporation and Rs. 478,004 had been paid for January to October 2014. This vehicle too had not been used for any SEC work.

KB- 0638 (motor car) had allegedly been hired from M. B. D. N. Gunawardena on May 9, 2011 for a monthly rental of Rs. 38,000 but on October 1, 2014, the same vehicle had been hired through a new agreement from S. T. Edirisinghe for Rs. 50,000 which had been approved by Lokuhennadige. This vehicle too had not been used for SEC work but had been given to an unknown party.

PD-2563 (motor car) had allegedly been used by Ven. Ittekande Saddhatissa Thera of Ravana Balakaya who was the then Director, National Housing Development Authority NHDA). Although he had been given a separate vehicle from NHDA, he had been given this vehicle as well. This had been obtained from D. S. V. R. Karunaratne for a rental of Rs. 38,000 but through another agreement this had been increased to Rs. 69,000. This vehicle too had not been used for any SEC work. In 2014, SEC had paid Rs. 689,000 from January to October.

KD-4049 (Jeep) had allegedly been obtained from Isuru Tours and Travels on August 1, 2012 for a monthly rental of Rs. 90,000. It had been used by Lalith Pushpakumara who was not a SEC employee. This vehicle too had not been used for SEC work.

HN-4098 (Nissan motor car) had allegedly been used by Weerawansa’s Co-ordinating Secretary Dharmapala. This vehicle had been obtained from D. V. S. R. Karunaratne but had never been used for any SEC work. The Engineering Corporation had paid Rs. 310,000 as hiring charges from January to August, 2014.

GI-0001 (Nissan motor car) had allegedly been used by Sumith Chanaka, Co-ordinating Secretary to the Housing Ministry. This had been obtained from K. G. C. Damayanthi for Rs. 35,000 but had not been used for any SEC related work. Rs. 139,000 had been paid for this vehicle for four months from June to September, 2014.

GN-5767 (van) had allegedly been given to Manju, Private Secretary to the Secretary, National Freedom Front (NFF) Piyasiri Wijenayake. This had been obtained from Ted Lanka on May 13, 2013 and had not been used for any State Engineering Corporation work. SEC had paid Rs. 611,156 as hiring charges from January to October, 2014.

PC- 2896 (double cab) allegedly had been given to an unknown party and had not been driven by any SEC driver. The monthly rental for this double cab was Rs. 90,000 and had been hired from Ruwan Technologies. This vehicle too had not been used for any SEC work. The SEC had paid Rs. 1.275 million as hiring charges from January to November, 2014.

KC-2431 (motor car) had not been used for any SEC work and had been obtained from Isuru Travels and Tours, Moratuwa for a monthly rental of Rs. 38,000. It had allegedly been given to an unknown party and the rental from January to March 2014 was Rs. 124,822.

GQ-9528 (motor car) had allegedly been used by Pradeep Wijesekera, Co-ordinating Secretary to the Housing Ministry. The vehicle had been hired from Isuru Travels and Tours and Rs. 76,411 had been paid as rental for January and February, 2014.

KL-0812 (Toyota motor car) had allegedly been used by Housing Ministry Secretary Wimalasiri Perera but had not been used for any SEC work. Hired from Ted Lanka (Pvt) Ltd, its monthly rental was Rs. 90,000. From January to October, 2014, the CES had paid Rs. 899,000 as its rental.

PC-9097 (double cab) had allegedly been used by Indika, the Co-ordinating Secretary to the Housing Ministry but not used for any SEC work. This had been obtained from K. G. Siripala for a monthly rental of Rs. 45,000. The State Engineering Corporation had paid Rs. 360,000 as its rental from January to August, 2014.

KK-8491 (motor car) had allegedly been given to an unknown party and also had not been driven by any SEC driver. The vehicle had been obtained from Shyamalee Diluka Senanayake on January 12, 2012 and had not been used for any SEC work. Rental fees amounting to Rs. 342,000 had been paid from January to September, 2014 by SEC.

KI-4648 (motor car) had not been driven by a SEC driver and had been given to an unknown party. This vehicle too had allegedly been hired from Isuru Travels and Tours for a monthly rental of Rs. 43,411. This had not been used for any SEC work and Rs. 477,523 had been paid as its rental fee from January to November 2014.

JR-5353 (motor car) had allegedly been used by Ms Isika in the Housing Ministry and had been obtained from G. P. C. C. Weerasuriya for a rental of Rs. 38,000. This vehicle too had not been used for any SEC work.

GY-4635 (Nissan motor car) had allegedly been hired from Gayani Padmaperuma for Rs. 38,000 but who the vehicle was assigned to is unknown. This vehicle too had not been used for any SEC work.

KH-0883 (motor car) had allegedly been given to an unknown party and according to SEC driver A. D. P. Hemachandra, although his name had been written in the running charts, he had never driven this vehicle nor knows to whom it had been assigned. The car had been hired from M. B. H. Muthukumara for Rs. 60,000 but had not been used for SEC work.

Toyota Corolla 301-6830 had allegedly been given to the Deputy Minister, Lasantha Alagiyawanna for his official work in Nittambuwa, Mahara and Gampaha. The vehicle had been obtained from W. M. P. Bandara of Yakkala for Rs. 38,000 but interestingly, the latter’s name had been noted as the vehicle driver. Although this had been used for Lasantha Alagiyawanna’s official work, it had never been used for SEC work.

KO-5871 (Toyota motor car) too had allegedly been used for the Deputy Minister’s official work and had been driven by W. G. Gamini who is not a SEC driver. This had been hired from K. D. U. Jayasena for Rs. 69,000 on March 21, 2014. From March to May, 2014 this vehicle had been used by Deputy General Manager (Finance) and had been driven by SEC driver Sumith Priyantha.

JL-8058 (Toyota Corolla motor car) had allegedly been given to an unknown party and had not been used for any SEC work.

HA-0800 (motor car) had allegedly been hired from Sumudu Enterprises for a monthly rental of Rs. 38,000. It had been assigned to an unknown party and the driver Thushara Mendis was not an SEC employee. This vehicle too had not been used for SEC work or at any of its sites.

KO-1375 is said to have been used for the Chairman’s work but no details were given in the running charts as to where this vehicle had gone. However, according to details available, more than 200km had been run every day. The driver of this vehicle was A. I. Vitharana. According to the Transport Manager I. D. Dayananda, Vitharana was not a SEC employee. Although it says that this vehicle had been used for the Chairman’s work, it has been revealed that this vehicle had not been used for any SEC work.

CAB-9727 (Toyota motor car) had allegedly been used by an unknown party. According to the Transport Manager, the driver Sampath Sigera was not an SEC employee. The vehicle had been hired from A. R. Wickremasinghe of Athurugiriya on February 3, 2014 for Rs. 45,000. However Rs. 555,252 had been paid to Wickremasinghe as its rental from February to November, 2014. This vehicle too had not been used for SEC work. 250-4713 (van) had allegedly been driven by R. S. Perera and R. Eranga but according to Transport Manager I. D. Dayananda, both drivers were not attached to the SEC. This had been hired from D. M. Karunaratne on August 13, 2012 for Rs. 38,000. The vehicle had not been used for any SEC work and had been given to an unknown party.

GF-0787 (motor car) had allegedly been hired from Ajith Sisira Kumara for Rs. 38,000 on April 1, 2014. The vehicle had been given to an unknown party and had not used for any SEC work.

54-5678 (van) too had been given to an unknown party and had not been used for Engineering Corporation work. It had allegedly been hired from L. C. Kumara on July 1, 2013 for a monthly rental of Rs. 43,320.

KM- 0882 (Micro motor car) had allegedly been given to an outsider and the drivers that had driven the vehicle are not SEC employees according to the Transport Manager. The vehicle had been hired from D. B. R. Jayawardena for Rs. 47,820 per month. This had not been used for any official work. LJ- 7909 (lorry) had allegedly been hired from A. H. Kulathunge for Rs. 165,000 per month but had not been used for any SEC work.

According to a letter dated May 2, 2012, Deputy Minister Lasantha Alagiyawanna had made a request to Chairman SEC Jagath Perera to hire the lorry for SEC work and to release it to his Mahara office for Gampaha District Development work.

252-1933 (van) had not been used for SEC work and had been hired from Senaka Priyadharshana Ramanayake on March 3, 2011 for Rs. 36,000. Although running charts had not been maintained, Deputy General Manager (Human Resources and Administration) Lokuhennadige had requested Additional Transport Manager through letter dated January 1, 2012 to hire this vehicle for the Deputy Minister’s official work. Later this had been used for monitoring work of Basil Rajapaksa’s Maganeguma project.

PE-3072 (Navara double cab) had allegedly been given to an unknown party and had been driven by an outsider. There are no details as to how much the hiring charges and from whom the vehicle had been hired. However it states that this vehicle had not been used for SEC work.

Deputy Chairman SEC, Mahen Pelpola said that due to mismanagement of State Engineering Corporation funds by Wimal Weerawansa and his group of henchmen, SEC has faced a huge financial crisis and they are struggling even to pay the employees’ monthly salaries.

“The way the previous management obtained vehicles without calling tenders is a fraud. It was the SEC that had to bear the rental, fuel costs and the salaries and overtime of the drivers who had been hired from outside. For the year 2014 the entire cost for these 40 vehicles was more than Rs. 40 million,” Pelpola said.

Wimal Weerawansa did not answer his telephone when we attempted to get his response to the allegations. Although a text message was sent seeking a comment, Weerawansa had not responded at the time of going to press.

• Mr. Paint to get the chop as Minister Hashim promises bigger yield for Vauxhall Street land

by Nirmala Kannangara

At a time when Sri Lanka is seeking to attract large-scale investors, a situation has arisen where a couple of Japanese investors have been ‘kicked out’ due to an insane act of a senior government minister.

Minister of Public Enterprise Development Kabir Hashim has come under fire for ‘inspiring’ the two Japanese investors, who came to the country to invest in a US$ 200 million mixed development project in Vauxhall Street, Colombo, to leave the country last week. The investors are said to have decided not to come back and part of their investment amounting to a few million US Dollars, now lying at the Seylan Bank, will be withdrawn.

Mr. Paint Lanka (Pvt) Ltd., in collaboration with Procon Development (Hong Kong) Ltd., submitted a proposal to the Board of Investment (BOI) on March 21, 2013 to set up a US$ 200 million mixed development project. Hence Procon MAG Hong Kong (Pvt) Ltd. was established in 2013 and upon receiving all government approvals including cabinet approval, the Japanese investors deposited part of their investment on an Escrow Account (a temporary pass through account held by a third party during the process of a transaction between two parties) at Seylan Bank.

Despite having obtained all approvals, Minister Kabir Hashim’s recent letter to R. Paskaralingam, Advisor to the Prime Minister/ Ministry of Policy Development, requesting not to allow the Japanese investors to invest in the proposed mixed development project at 175, Vauxhall Street, Colombo 2, claiming that there are two parties willing to pay a higher price than the Japanese investors had prompted the investors to leave the country.

Hashim in his letter to Paskaralingam had stated that it is irregular to grant the said land at a price of Rs. 4.2 million per perch, as the two buyers are willing to buy at Rs. 8 million per perch.

“According to Minister Hashim, the buyers are willing to buy the land at a rate of Rs. 8 million per perch when our investors had obtained the land on a 99-year lease agreement where we have to pay JEDB Rs. 4.2 million per perch for 99 years. Obtaining this land on outright purchase is not a profit to the government but a loss as after 99 years the government still can lease the land,” a high ranking officer at Mr. Paint who wished to remain anonymous said.

The land in question is 253 perches in extent and is owned by the Janatha Estate Development Board (JEDB). In 2003, the Kandy Tyre House (Pvt) Ltd, the parent company of Mr. Paint Lanka (Pvt) Ltd. entered into a 30-year lease agreement (agreement No: 6952 dated April 1, 2003) with the JEDB at a value of Rs. 0.6 million per perch according to the then government valuation report.

However, in 2008, the Kandy Tyre House requested for leasehold rights of 99 years to undertake a mixed development project, agreeing to surrender the unexpired leasehold rights back to JEDB. The JEDB, in a letter dated April 3, 2013 extended their concurrence to the proposal subject to the Board of Directors approval. The 99-year lease was to be confirmed based on the then valuation determined by the government chief valuer with the approval of the cabinet of ministers.

The proposed mixed development project consists of a luxury centered high-rise building with shopping, office and residential apartments together with a vehicle park. Kandy Tyre House meanwhile gave its written consent to surrender the unexpired term of the leasehold rights back to JEDB on the specific understanding of obtaining the new 99-year lease to undertake the mixed development project in favour of its subsidiary, the new investor M/s Mr. Paint Lanka (Pvt) Ltd.

The Board of Directors of JEDB, on a resolution taken on April 11, 2013, decided to transfer the total extent of the 253-perch land to Mr. Paint by extending the leasehold period of 99 years subject to revision of the rental on government valuation. It was in this backdrop that the Ministry of State Resources and Enterprise Development and Ministry of Investment Promotion on October 3, 2013 submitted a cabinet memorandum on the proposal for the mixed development project.

The cabinet of ministers at the cabinet meeting held on November 29, 2013 decided to refer the proposal to the Standing Cabinet Appointed Review Committee (SCARC) for appraisal and based on its recommendation, to consider the transfer of the land concerned to the Board of Investment (BOI) for the proposed project.

After the proposal was referred to the SCARC on March 5, 2014 (Ref: No: MSRED/4/5/Mixed.Dev.Pro), the SCARC on March 18, 2014, recommended the transfer of the said land to the BOI on free grant basis, enabling the BOI to lease the same to Mr. Paint Lanka on a 99-year lease subject to the upfront payment of the lease value to be determined based on the Chief Valuer’s valuation in terms of the Land Alienation Policy of the Government.

The upfront lease payment has to be made to the BOI and will be transferred subsequently to the JEDB in order to settle the long outstanding statutory liabilities of the JEDB. It was also recommended that in the event a condominium unit is transferred from lease basis to freehold basis by the project proponent, the difference of the value of the property shall be remitted to the JEDB.

Following cabinet approval and the SCARC recommendation, a government valuation was carried out in 2014 and the valuation for the entire land at 175, Vauxhall Street, Colombo 2 was Rs.1.15 billion at a rate of Rs. 4.5 million per perch.

However, after the present government came into power in 2015, they suspended all major projects involved with the government. This issue continued to be discussed at the cabinet sub-committee on economic management and they decided to call for a new valuation report and wanted the project proponent to pay on the latest value and not the 2014 value. According to G. S. Wijewardena, Provincial Valuer (Colombo) in the valuation report dated February 29, 2016 the present value of this land is Rs.1.4 billion which is Rs.5.6 million per perch.

“When the new valuation report was handed over, the project proponent agreed to pay Rs.1.4 billion as the outright price for the entire land. So how can Minister Hashim say that we have got an underestimated price? According to a valuation carried out on the direction of the Colombo District Court on the adjoining land in 2015, the value per perch was Rs.5 million. If we have got the government valuer to underestimate the land in question, then we could have got the valuation report for a lesser amount,” sources added.

It is learnt that at a Cabinet Committee on Economic Management, Prime Minister’s Advisor R. Paskaralingam had stated that the Japanese Ambassador was also concerned about the delay in implementing the project and had further stated that this project should go ahead as the project proponent had obtained all relevant approvals including cabinet approval.

When this newspaper contacted Chairman JEDB Prof. Kennedy Gunawardena to find out whether they have any investor who will pay Rs. 8 million per perch as he stated to the Cabinet Committee on Economic Management, Prof. Gunawardena said he cannot make any comment as he is new to the post and needed more time to study the issue. When asked whether he made a representation to the Cabinet Committee to speak about this land, Prof. Gunawardena said he has plans to go back to the University one day as a lecturer and did not wish to tarnish his name by getting embroiled in scandalous issues.

“After I took over office I removed all senior staff who were over 60 years of age and there is no one now for me to direct you to, to give a comment on this issue,” Prof. Gunawardena added.

However, when contacted, former Chairman JEDB, Dr. S. B. R. Rekogama said that the land in question has to be given to Procon MAG Hong Kong (Pvt) Ltd as per the 2013 cabinet approval and all other approvals.

“The JEDB is facing a financial crisis due to mismanagement over the years. There were many court cases against the JEDB for non-payment of gratuity, EPF and ETF and the court had issued warrants even to the Board of Directors. In order to settle these, I got cabinet approval to receive Rs. 1.2 billion but I was given only Rs. 350 million to make these payments. Since there were consultants and older staff, I gradually removed all of them and saved a lot of money which was used to pay the outstanding monies to a certain extent. As the JEDB is in debt, this is the best offer and if the JEDB wants more money, it would be difficult for them to settle their debts.”

All attempts to contact Chaminda Gunathilake, the local investor of Procon MAG Hong Kong (Pvt) Ltd. failed as he did not wish to make any comment to the media.

Although a message was left with Minister Kabir Hashim’s office seeking a comment, the Minister had not responded at the time of going to press.

• Presidential Secretariat spent billions of rupees for hiring luxury vehicles for ex-President’s friends, family and cronies

by Nirmala Kannangara

Following last week’s expose titled ‘Weerawansa Family and Friends’ Joyride at State Expense’  shocking revelations have now come to light as to how the Presidential Secretariat under former President Mahinda Rajapaksa spent several millions of rupees to lease luxury vehicles for those who were near and dear to him.

Similar to how the State Engineering Corporation (SEC) under Wimal Weerawansa hired vehicles without following government tender procedure, the Presidential Secretariat under former President Mahinda Rajapaksa too had hired vehicles from parties known to them without following tender procedure. Amongst the beneficiaries of these vehicles were former Defence Secretary Gotabaya Rajapaksa, former Speaker Chamal Rajapaksa, former Economic Development Minister Basil Rajapaksa, the Youth Affairs Unit which is alleged to be the arm of Namal Rajapaksa’s Nil Balakaya, Mahinda Rajapaksa’s younger brother Chandra Rajapaksa, brother-in law Dr. Lalith Chandradasa and nephews Malaka Chandradasa and Himal Hettiarachchi.

Apart from the immediate family members, certain parliamentarians, temples, Rajapaksa’s party offices in the Hambantota district, close relatives and even the National Freedom Front (NFF) of Wimal Weerawansa have benefitted from the Presidential Secretariat.

According to the vehicle lease report The Sunday Leader is in possession of, five motor cars bearing registration numbers KM 8583, KP 2383, KR 5382, KP 2382 and GY 9384 were leased on November one, 2013, January one, 2014, November one, 2013, October 24, 2014 and May one, 2014 for close relatives to the tune of Rs. 50, 000, Rs.45,000, Rs.120,000, Rs.50,000 and Rs.50,000 per month respectively.

 Relatives get Vehicles

Meanwhile a relative of Weerawansa had been given a Montero Sport bearing registration number KT 5335 which was leased for Rs.150,000 per month while five NFF members were given a Toyota Allion 240, double cab, a Navara cab a  double cab, a Toyota Allion 260 and Toyota Premio respectively. These vehicles bearing numbers KO 1375, PB 0645, PE 6432, JP 4312, KO 9480 and KO 9416 were leased for Rs.80,000, Rs.120,000, Rs.120,000, Rs.120,000, Rs.80,000 and Rs.80,000 per month respectively.

Although Gotabaya Rajapaksa as the then Defence Secretary used a fleet of Defence Ministry vehicles, he was allegedly allocated five Defender Jeeps and a High-Security vehicle from the Presidential Secretariat. The former Defence Secretary was given a Range Rover High – Security Jeep bearing registration number KC-8511 and five Defender Jeeps bearing registration numbers WPKX-2439, WPKX-2352, WPKX- 2440, WPKX- 2415 and WPKX- 2454.

“What made the Presidential Secretariat issue these vehicles to him despite him being provided enough and more high-security vehicles and back-up vehicles for his use from the Defence Ministry? This shows how the Rajapaksas were misusing public property for their whims and fancies at taxpayers’ expense,” reliable sources from the Presidential Secretariat who wished to remain anonymous said.

Former Speaker gets vehicles

Former Speaker Chamal Rajapaksa too was given vehicles from the Presidential Secretariat although the office of the Speaker had allocated a fleet of vehicles for him from Parliament.Although Basil Rajapaksa obtained a fleet of vehicles from the Economic Development Ministry he was also allegedly given a high-security Range Rover WPKC-8510 from the Presidential Secretariat. Even younger brother Chandra Rajapaksa had been given a Defender Jeep bearing registration number WPKX 2423 all borne by public expense. Meanwhile, former Chief Minister of Uva Province Sasheendra Rajapaksa who was Mahinda Rajapaksa’s Private Secretary and is alleged to not have physically carried out duties but was there in name-only had been given an unregistered Benz car (A-362396) and three Defender Jeeps bearing registration numbers WPKC-2274, WPKX- 2426 and WPKX 2435.

Rajapaksa’s sister’s husband Dr. Lalith Chandradasa had allegedly been given a Nissan Double Cab (PD-8011) and a Toyota Corolla car (KV-4295) for his use while his son Malaka Chandradasa who was the then Defence Secretary’s Coordinating Secretary was allegedly given a Nissan Sylphy car (WPKX- 8232) although he was provided vehicles from the Defence Ministry as well. Another nephew of Rajapaksa who was one of the alleged investors of the Carlton Sports Network (CSN) Himal Hettiarachchi too had allegedly been given a Defender Jeep WPKX- 2451 from the Presidential Secretariat.

Meanwhile former Monitoring MP to the Ministry of Foreign Affairs who was also a close confidant of Mahinda Rajapaksa, Sajin Vass Gunawardena, too had been given a fleet of luxury vehicles although he had used yet another fleet of luxury vehicles obtained from the Foreign Affairs Ministry. Vass Gunawardena had used a High Security vehicle bearing registration number WPKD-3218 and Toyota Land Cruiser Jeep KE-0610, Defender Jeep KC-2280, Bolero Jeep PA-7086, Toyota Hilux LG-8732, BMW KB-9240 and Defender Jeep- WPKX- 2457.

The Youth Affairs Unit alleged to be an arm of Nil Balakaya had been given a Nissan Sunny (301-2859), Toyota van (WPKC- 0107), Toyota Land Cruiser Jeep (WPFZ- 9170), Toyota Hilux (LH-1670), Commando Jeep (KI-6569), Nissan Double Cab (PD-8001) and another Double Cab (PF-5829).

The former President’s Senior Advisor meanwhile had been given not only high-security vehicles but also an Ambulance bearing registration number LW-0962. The Senior Advisor had been assigned a Tata Single Cab (LC-6632), Defender Jeeps bearing numbers WPKB-7604, KC-2271, WPKX- 2239 and WPKX -2368 while an unregistered Benz car (A-385178), High Security Jeep (KL-0336), Land Rover (KH-4184) and Benz High Security Car (KY-1090) too were allocated to him.

Meanwhile President Rajapaksa’s Secretary Lalith Weeratunge who did not face any security threats had been given a Volvo High- Security vehicle (KD-5285), another vehicle bearing registration number KI-3092, a Defender Jeep (WPKX-2396) and a Ford Everest Jeep (WP CAB 3462) while the former Chief of Staff who is now under investigation for accumulating a vast wealth whilst in office had been given Defender Jeep (KC-2275), Bolero Cab (CH-72061524), Trisler Wagon (PB-6265), Toyota Hilux Cab (PE-1632), Lexus (KP-3937) and Defender Jeep (WPKX -2451) from the Secretariat.

Rajapaksa’s Cousin Upul Dissanayake who was the Co-ordinating Secretary was given a Mitsubishi Montero Jeep (KG-5473) while Kithsiri Ganganatha Abeygunawardena, another Coordinating Secretary, had been assigned a Nissan Petrol Jeep (GD-7263), Toyota Land Cruiser Jeep (KE-0826), Tata Cab (LD-1103), Tata Cab (LD-1125) and Toyota car (KC-0952).

Amongst the other Co-ordinating Secretaries who had received vehicles from the Presidential Secretariat were Ananda (Hambantota Party Office) – Pajero Jeep (65-1097), Amarasiri Kudagalara  – Suzuki Liana (WPKA -9813), Co-ordinating Secretary (Hambantota District Office) – Defender (WPGE- 1789), Chaminda Rajapaksa – Defender Jeep (WPGE-1790), Bindu (Eastern Province) – Nissan Petrol (WPGD- 7209), Chaminda Kularatne – BMW (WPGF – 1092), Kapila Dissanayake – Defender Jeep (WPKB-7613), Kithsiri Sepala Defender Jeep (WPKB-7601), Rasanga Gunaratne (Tangalle Office) – Volvo S80 Car (65-5974), Daya Gallage – Toyota Merc (KH-9067), S. A. Rafeel (District Co-ordinator Pasikudha) Toyota Hilux (LH-1661), Cyril Munasinghe (Beliatta Office) – Pajero Jeep (32-0962), Mahesh Vidanapathirana – Toyota Cab (WPPC- 3362), Mrs. Bharatha Lakshman Premachandra – Toyota Land Cruiser Jeep (GP-3121), Keerthi Dissanayake – Toyota Land Cruiser (WPKX- 5289), Chaminda Gamage – Double Cab (WPPF- 6493) and Sudharsha Ganegoda  – Double Cab (WPPF 6495).

MPs get vehicles

Although MPs are given duty free permits to purchase vehicles and all parliamentarians do have their own vehicles, certain MPs were still given vehicles from the Presidential Secretariat vehicle pool. They are V. K. Indika (MP for Hambantota District) – Benz WPHJ 8859, P. Dayaratne (MP for Ampara District) – Defender WPGE  2036, Minister Nirmala Kothalawala (Kalutara District) – Defender WPGE 1809, Deputy Minister Susantha Punchinilame, (Ratnapura District) –Bolero Cab WPPA 7079 and  Bolero Cab WPPA 7084, Sri Rangha – Toyota Land Cruiser Jeep KE-0604 and Micro Car KI-2663, Vadivel Suresh – Toyota Land Cruiser KE-0829, Wimal Weerawansa (Colombo District)  – Scorpio Jeep PA-1369, Nishantha Muthuhettigama (Galle District) – Bolero Cab LG-7493, S.B. Dissanayake – Nissan Teana KI-2484, Bandara – Toyota Hilux LH-1671, Manusha Nanayakkara (Galle District) – Kyron Rexton Jeep KJ-0703 and Earl Gunasekera (Polonnaruwa District) Kyron Rexton Jeep KJ-0796.

Meanwhile Buddhist temples and Chief Incumbents who were supporters of Mahinda Rajapaksa too benefitted from the Presidential Secretariat. They were Ven. Elle Gunawansa – Chevrolet Double Cab WPPA-6063, Ven. Bengamuve Nalaka – Tata Sumo Jeep (KE-9174), Mahanayaka of the Rohana Sect – Land Rover Jeep (KJ-2067), Chief Incumbent Ruwanweli Maha Seya – Nissan Double Cab (PD-7984), Ven. Ellawala Medhalankara – Toyota Double Cab (PF-0053), Ven. Pallattara Sumanajothi – Hyundai Accent (WPKA- 9784), Ven. Matale Amarawansa – Toyota Carina (WPGJ-8390), Sithulpawwa Temple – Double Cab (252-6539) and Ambulance (LW-0575) , Gangaramaya Temple – Toyota Land Cruiser Jeep (WPKC- 0279), Deniyaya Temple – Bolero Cab (LG-7483), Hellala Temple – Bolero Cab (LG-7488), Siyambalanduwa Temple – Bolero Cab (LG-7492) and Kataragama Devalaya (PB-9872).

Captain Tissa

It is also interesting to note that Captain Tissa who is alleged to have been involved in Wasim Thajudeen’s murder too was given a Tata Safari (CUZN-00902), Tata Safari (CUZN 01006) and a high-security Defender Jeep (KD-2047).  “If Captain Tissa was in the Presidential Security Division (PSD) what made the Presidential Secretariat issue him two Tata Safari Jeeps and a high-security Defender? Was Capt. Tissa’s life in danger to provide him with a high-security vehicle and was he discharging his duties in Colombo or in wildlife sanctuaries?” sources queried.

Despite the fact that all tri-forces have their own vehicles, the Navy Commander under whom Yoshitha Rajapaksa was working too had been given a BMW high-security (WPGD-7072) while Ranna Navy Camp, Hakmana and Nuwara Eliya Army Camps were given Bolero Cab (LG-7496), Bolero Cab (LG-7485) and Bolero Cab (LG-7495) respectively.

Dullas Alahapperuma had been given Nissan Sunny WPGH-7830 and Toyota Land Cruiser Jeep KE-0791 while Jackson Anthony had used China Double Cab PB-8004, Rohan Welivita Toyota Corolla KE-8607 and Milinda Moragoda Defender Jeep KB-7607.

Rajapaksa’s political offices in Tangalle, Hambantota and Beliatta had been using Double Cab 252-6491, Land Rover Jeep KH-1173, China Double Cab PB-8000, Chevrolet Double Cab WPPA 6062, Volvo S80 Car 65-5973, Toyota Jeep KI-1678, Toyota Hilux LH-1679, Double Cab WPPF- 6497,Toyota Van WPPA-7176, Bolero Cab WPPA-7073 and UR-6012 for Rajapaksa’s and his son Namal Rajapaksa’s political campaign work. Even Chairman Pradeshiya Sabha, Embilipitiya had been given a Defender WPGE-2035 from the Presidential Secretariat vehicle pool.  Although as per government financial regulations it is a mandatory requirement to call for tenders when obtaining vehicles on lease, the Presidential Secretariat had violated all norms and rules when obtaining vehicles on lease.
“Although there are strict regulations on how to issue vehicles on lease agreements, these procedures had never been followed,” sources said.

It is almost one year and four months since President Maithripala Sirisena took over office from Mahinda Rajapaksa but it is surprising as to why officials at the Presidential Secretariat have so far failed to hold inquiries and bring the former officials who have violated government rules and regulations for personal benefit, to book.

When The Sunday Leader checked out the list of names of the recipients of these leased vehicles and from whom they were leased, there were many instances where the recipients had leased vehicles from their own family members, close relatives or even friends.

“This is why we say that officials during the Rajapaksa regime never obeyed government rules but carried out their work on the directives of their superiors,” sources added.

Meanwhile highly reliable sources from the Auditor General’s Department who wished to remain anonymous said that it is highly irregular not to follow tender procedure when a government department wants to obtain vehicles on lease agreements.

Audits not carried out

“Although the Auditor General’s Department has an office at the Presidential Secretariat, none of the officers wanted to carry out proper audits during the previous regime, as they knew what the consequences would be. If the AG’s department was allowed to carry out proper audits, these public officers would have known that they would be exposed and wouldn’t have engaged in any irregularity in fear,” sources said.

According to the sources, if a vehicle is leased, the maximum price that can be paid to the lessee cannot exceed Rs. 40,000 although there are many instances where the Presidential Secretariat had paid even Rs.130,000 per vehicle.

“If our audit officers were allowed to carry out audits, our officers could have unearthed these irregularities and would have gone to the extent of checking who the real owner of the vehicle was and the relationship to the recipient.

As they wanted to carry out these illegal activities, our officers were barred from carrying out proper audits,” sources alleged.

Sources meanwhile added that it is up to President Sirisena to appoint a committee to find out as to why high security vehicles were given to certain parliamentarians and other officials spending millions in public funds when there was no war in the country from May, 2009.

Meanwhile it is questionable as to why ambulances were given to Shiranthi Rajapaksa’s Carlton Pre-Schools on government expense when government hospitals in the country do not have enough ambulances to transport patients.

“This is daylight robbery. It is surprising as to why the government has still failed to inquire into these irregularities and take legal action against those who were responsible for misusing public money for their own pleasure,” sources said.

• International Civil Aviation Organisation – (ICA) gets involved after failure to hold inquiry into Pilot’s unlawful termination by Mihin Lanka

by Nirmala Kannangara

The Civil Aviation Authority of Sri Lanka (CAASL) is facing the risk of being blacklisted by the International Civil Aviation Organisation (ICAO) for its failure to take action against Mihin Lanka for allegedly violating international flight regulations.

In the event CAASL is blacklisted by the ICAO, there is a possibility that SriLankan Airlines and Mihin Lanka flights will be banned from landing in certain countries while some other countries will even ban these two airlines from flying over their states, it is learnt.

CAASL’s failure to hold an inquiry against Mihin Lanka for unlawfully terminating the contract of a senior Captain as he refused to undertake a flight due to adverse weather conditions at the landing destination, had led to the Captain in question lodging a complaint with ICAO against CAASL.

Meanwhile accusations have also been levelled against Minister of Public Enterprise Development Kabir Hashim for not holding an inquiry into the unlawful termination and instead merely relying on the airline’s explanation.

Meanwhile, with revelations as to how Director General CAASL, Director Flight Safety CAASL and Director Operations CAASL authorised a proposal for an ‘Alternate Method’ submitted by Manager Flight and Ground Safety Mihin Lanka/ SriLankan Airlines Captain Keminda Yahampath to fly Mihin Lanka flights even when bad weather conditions are forecast, most regular Mihin Lanka travellers are now questioning whether it is safe to travel on an airline that does not follow safety measures but seem to be flying for economic benefit at the risk of passenger lives.

Despite CAASL, which is the only authority in the world to approve such a dangerous procedure violating worldwide accepted safety standards of civil aircraft, Captain Charles Sirimanne still decided to obey the accepted safety standard and refused to undertake Colombo-Seychelles-Colombo flight MJ 707/8 on August 29, 2015 due to set-out legal limits for departure.

Refused to take off

“Taking a sensible decision not to put the passenger and crew members’ lives in danger, Captain Sirimanne refused to take off which led to his termination. We know why, instead of being rewarded for following safety standards, Captain Sirimanne’s service was terminated. He obviously became a threat to senior officials at Mihin Lanka and CAASL as he stood up against the corrupt activities in the airline and brought it to the notice of CAASL. Instead of taking action, the CAASL too secretly helped out the corrupt officials. It is these corrupt officials that got rid of Sirimanne although there is one fine example where no action was taken against another Captain who too refused to take off on a Seychelles flight on an earlier occasion due to bad weather conditions,” a senior Mihin Lanka official said on condition of anonymity.

Following Captain Sirimanne’s termination, Director General CAASL, H. M. C. Nimalsiri, Public Enterprise Development Minister Kabir Hashim and President Maithripala Sirisena had been informed about the unaccepted termination. The offices of President Sirisena and Minister Hashim ordered Mihin Lanka to report why this termination was carried out. However it is indeed surprising that the Director General CAASL who is legally bound to maintain aviation safety standards in the country, failed to take any action against the airline officials who wanted Sirimanne to violate the worldwide accepted aviation safety standards.

Cantract terminated

Captain Charles Sirimanne who was former Manager, Flight Safety and Ground Safety and also a former certified Meteorologist at the Department of Meteorology of Sri Lanka had his contract terminated on September 10, 2015 by Captain Pujitha Jayakody, then Head of Flight Operations, Mihin Lanka.

Be that as it may, in a letter dated October 20, 2015, President’s Senior Additional Secretary Samanthi Ranasinghe had written to the Secretary Public Enterprise Development Ministry to inquire into the matter and to report the outcome of it. Hence Additional Secretary to the Public Enterprise Development Ministry J. M. A. Douglas had written to the Chief Executive Officer, Mihin Lanka, asking that a report on the matter be submitted.

Misleading the Public Enterprise Development Ministry and the Presidential Secretariat, Manager Human Resources and Administration, Mihin Lanka, Piuma Kandaragama in a letter dated January 21, 2016 to Additional Secretary, Public Enterprise Development Ministry had stated that Captain Sirimanne’s service was terminated following the lapse of his contract period which was from June 11, 2011 to September 10, 2015.

According to Captain Sirimanne’s fixed term of contract which The Sunday Leader is in possession of, it ends only on June 10, 2017 and not September 10, 2015 as stated by the Manager Human Resources and Administration, Mihin Lanka.

The letter of contract signed on May 21, 2015 (Ref: ML/ HR 0496/ 15) states: ‘Dear Captain Sirimanne, Mihin Lanka (Private) Limited has pleasure in offering you, employment as Captain and Cockpit Crew Line Training Instructor A 320 of the Company on the following terms and conditions. Your contract of employment will commence on this 11^th day of June and end on 10^th day of June 2017.’

Captain Sirimanne joined Mihin Lanka on June 11, 2011 on a two year contract. The contract was later renewed on June 11, 2013 for yet another two year period and for the third time it was further renewed on June 11, 2015 up to June 10, 2017.

It is thus a serious issue as to why Mihin Lanka’s Manager Human Resources and Administration Piuma Kandaragama misled the Subject Ministry and the President’s Office.

“Kandaragama has misled the President’s office and the subject minister’s office. Although Mihin Lanka sacked Sirimanne illegally, why cannot the same officials take action against this lady officer who misled the country’s Executive and the Minister in charge of the airline,” sources claimed.

Offices misled

Since the airline misled the President’s and Minister’s offices, Captain Sirimanne made repeated appeals to the Ministry and the President’s Office claiming that his contract is due to lapse only in June 2017 and not on September 10, 2015 as stated by the airline Human Resources and Administration Manager and that he was subjected to illegal harassment. However no attempts were made to hold an impartial inquiry which led Sirimanne to lodge a complaint with Officer in Charge (Flight Safety), ICAO Headquarters, Montreal, Canada on March 16, 2016 on flight safety and regulatory violations of Mihin Lanka. His letter states, ‘As a responsible license holder (ATPL 434- Sri Lanka) my concern of non-compliance/ violation of flight safety was ignored by Mihin Lanka and the regulatory authority – CAASL’.

Meanwhile it is interesting to note how Captain Sirimanne has received four different letters of termination from Mihin Lanka. The first letter served by Piyuma Kandaragama, Manager Human Resources states that Sirimanne has been terminated with immediate effect with the airline providing him with three months wages as he has completed his contract period. The second letter from Director Human Resources Sunil Peiris states that his contract has ended on May 21, 2015, when his contract was to end on June 10, 2017. Another letter sent by Piyuma Kandaragama once again strangely states that his contract ended on September 10, 2015 which actually was the date his service was terminated. After Sirimanne went to courts seeking justice, Captain Pujitha Jayakody lodged an affidavit at the Supreme Court stating that Sirimanne was removed due to an act of sabotage but for some unknown reason, the case was dismissed without hearing.

“I assume I am the only person in the world to get four different reasons for my termination. Since they did not have a proven reason to charge me, Mihin Lanka had to give four different explanations for my removal,” Sirimanne claimed.

According to Sirimanne, all he was interested in was to ensure that international standards of safety that airlines are governed by, were met. He further said that the sabotage he was accused of carrying out was to avert a possible air crash to save the lives of all passengers and crew members.

“As there was no other option, I had to write to ICAO directly as the CAASL was turning a blind eye to the serious lapses Mihin Lanka is following. Even the recent Fly Dubai crash that killed all on board was due to a similar bad weather related issue. I have personally sent in many reports that warranted immediate investigations in the past, but the CAASL always brushed it under the carpet. As a Captain, I am responsible for many lives that are seated behind the cockpit,” Captain Sirimanne said.

He further told this newspaper how the top management of Mihin Lanka planned to take revenge from him after he questioned Director General CAASL and the then Chairman/ CEO Mihin Lanka Nishantha Ranatunga as to why the airline had called prospective applicants for line training whose qualifications were well below the CAASL requirement.

“As an Instructor Captain, while I was on a flight with an Indian trainee who came from Flight Stimulation Technic Centre (FSTC) in New Delhi, the trainee observer pilot told me the Chief Pilot (Training and Standard) of Mihin Lanka was a part-time instructor at FSTC. Unless the management sends captains for any official work abroad, it is against airline rules and regulations to engage in any other aviation duties. I was also told that their qualification to get Mihin Lanka training was a multi-engine Commercial Pilot License with Instrument Rating (CPL-IR) which was below the CAASL requirement to fly a Sri Lankan registered aircraft. It was only later I knew that this Captain had called for applications for line training from those with lower qualifications to enable his students to get a chance to receive Mihin Lanka training. As the Manager Flight/ Ground Safety I had to take up the matter with the CAASL as it was not advisable to give lower qualified candidates the training which is unauthorised by CAASL. So when I took up the matter on January 29, 2015, Director General CAASL, H.M.C. Nimalsiri emphasised that the knowledge requirement for all flight crew training with regard to the issuance of Type Rating is to be the Air Transport Pilot License (ATPL) which is a higher license than the CPL-IR and all requirements to be eligible for the training programme shall be similar to all, be it locals or foreigners, and priority must be given to locals,” Sirimanne added.

Fraudulent activities

Sirimanne said that as Mihin Lanka and CAASL knew he was well aware of the fraudulent activities going on, they had tried to find fault with him and as a first step, he was immediately removed from the post of Manager Flight/Ground Safety.

“In a letter dated June 26, 2013, the then CEO Mihin Lanka, Kapila Chandrasena appointed me to the said post with effect from July 1, 2013. This appointment was confirmed by CAASL and in a letter dated August 10, 2013, DG Nimalsiri wrote to the CEO Mihin Lanka that Captain Charles Sirimanne shall not be removed from the post of Manager, Flight Safety without making alternate arrangements acceptable to DG’s office in advance. However since I became an obstacle for Mihin Lanka top officials, I got a letter from Druvi Perera, the then Chief Operating Officer (COO) on February 13, 2015 removing me from the said post with effect from February 16, 2015 although he had no authority to issue such a letter. It clearly showed how he abused his power. Since in my letter of appointment, the CAASL stated that I cannot be removed without taking alternate arrangements acceptable to DG’s office in advance, when I contacted the CAASL, I was told that they had not appointed any person to my post and wanted me to continue in it but appointed Captain Keminda Yahampath Manager Flight/ Ground Safety of Sri Lankan airlines,” Sirimanne said.

However he had been officially removed on May 21, 2015 but from February 16, 2015, Mihin Lanka had not allowed Sirimanne to discharge his duties as Manager Flight/ Ground Safety.

It is questionable as to how CAASL appointed Captain Druvi Perera as Chief Operating Officer and Captain Keminda Yahampath as Manager Flight/Ground Safety after they were accused of landing their respective aircraft in Chennai and Trivandrum respectively, in a manner construed as dangerous. When Captain Druvi Perera was landing the Sri Lankan flight in Chennai, the aircraft had gone out of control and skidded off the runway, damaging the runway lights. He had continued to taxi the aircraft to the parking bay which was illegal. Although the CAASL should have taken action against Perera, it was swept under the carpet and he was subsequently promoted as Chief Operating Officer. Captain Keminda Yahampath, due to unsafe landing of the Sri Lankan aircraft at Trivandum airport, burst several tyres of the aircraft. Instead of not moving the aircraft, he too taxied with burst tyres to the parking bay. Miraculously a catastrophic situation was averted despite continuing to taxi on shredded tyres and bare steel rims, where the slightest friction could have had the aircraft in a ball of flames. He was subsequently promoted as Manager Flight/Ground Safety of Sri Lankan Airlines and also of Mihin Lanka since 21, May 2015. This was after the orchestrated removal of Captain Sirimanne. He was also instrumental in providing a questionable proposal to gloss and facilitate an illegal operation to Seychelles when the weather is below safety requirements. He has proved that he does not have the basic knowledge on this subject.

The CAASL is also accused of not taking any action against Captain Pujitha Jayakody who told courts that Captain Sirimanne’s removal was due to an act of sabotage after he (Captain Jayakody) was arrested and remanded in Singapore by the Singaporean Police for shoplifting whilst on duty. Since he was under arrest, a set of pilots had to be flown to Singapore to bring back the aircraft and the stranded passengers and cabin crew. “As the sole regulatory authority, the CAASL failed to take any action against Captains Perera and Yahampath for landing their respective aircrafts dangerously and against Captain Jayakody for his involvement in a robbery whilst on duty. After Captain Sirimanne had carried out a remarkable job by not putting lives in danger, CAASL had approved Mihin Lanka’s course of illegal action,” sources added.

Meanwhile Director General CAASL, H.M.C. Nimalsiri when contacted confirmed that ICAO had sent him a letter seeking a response to the complaint and said he had forwarded it to Chairman Sri Lankan/Mihin Lanka Ajith Dias to send his observations in this regard.

When asked why CAASL did not hold an inquiry into the allegations levelled against Mihin Lanka for violating air safety regulation and why Captain Sirimanne who decided not to take off considering the bad weather forecast at the landing destination, was sacked, Nimalsiri said that according to the contract, either party can terminate it giving three month notice. “Mihin Lanka had paid three months salary and terminated the service. So what is the issue there?” he asked.

Once again when asked as to why action was taken against Sirimanne for following air safety measures, Nimalsiri said that according to the ‘Alternate Method’ the Captain should have taken off since the passengers were boarded at the time he took the decision and could have taken the flight to an alternative place if the weather condition at Seychelles was bad at the time the aircraft was to be landed.

“How can a captain refuse to take off after the passengers were boarded and the cargo was loaded?” Nimalsiri said. “This ‘Alternate Method’ has benefitted us. Upto now no adverse incidents have taken place even though aircrafts have taken off when the landing destination weather condition was bad,” Nimalsiri claimed.

When asked what action had been taken against Captains Perera and Yahampath after they landed their aircraft dangerously, but were later assigned to more responsible positions, Nimalsiri said that he has nothing to do with it and that it should be asked from the airline. In regard to Captain Jayakody’s shoplifting case, Nimalsiri said that it is the airline that has to take action and not the CAASL.

Although Nimalsiri is the DG of CAASL, he it seems is yet to learn that passengers are boarded only after the captain gives his approval. In the event the Captain does not accept the flight without signing the dispatch release form, not a single passenger is boarded.

Meanwhile Chairman, SriLankan/Mihin Lanka, Ajith Dias said he will be sending his observations to the ICAO letter. In regard as to why Sirimanne was removed, Dias said that Sirimanne’s contract was terminated with the concurrence of the Director General CAASL.

“This Captain had not followed the airline regulations by not taking off the Seychelles flight. I am not an expert to explain on what grounds the Captain refused and why the airline terminated his contract. However, the airline had followed the due procedure and removed him. There is no hidden agenda to it,” Dias claimed.

• FCID conducts probe into Rajapaksa son’s palatial mansions and other assets

by Nirmala Kannangara

CSN building

Following the money laundering charges filed against Yoshitha Rajapaksa over his alleged involvement in Carlton Sports Network (CSN) investment, the Financial Crimes Investigation Division (FCID) has commenced two fresh probes into the ownership of two palatial houses in Dehiwala worth over several hundreds of millions of rupees and the Carlton Sports Network (CSN) building in Battaramulla worth around Rs. 200 million.

The property at 173/2, Mihindu Mawatha, Dehiwala is said to be 66 perches in extent out of which 38 perches are owned by Yoshith Rajapaksa and 28 perches by Daisy Forest of 210/12, Torrington Avenue, Colombo 05.

It is alleged that Daisy Forest is an aunt of Shiranthi Rajapaksa and the Torrington Avenue, Colombo 5 property in which she resides is owned by the former First Lady. Although the Rajapaksas have claimed that CSN is not owned by Yoshitha or has any connection to the Rajapaksa family, not only CSN but also Carlton Pre-School, Carlton Sports Club, Tharunyata Hetak and even the controversial non-governmental organisation Siriliya, which too is under investigation by the FCID for financial fraud, are registered under the Torrington Avenue Colombo 5 address.

This property in Colombo 5 was originally owned by Prabath Nanayakkara. After Mahinda Rajapaksa became President in 2005, this property had been bought over by Mary Laud Wickremasinghe alias Shiranthi Rajapaksa bearing National Identity Card No: 535233314V on April 5, 2013 for Rs. 35 million.

According to a reliable FCID informant, the FCID officials together with government valuers from the Valuation Department had inspected the CSN building at Denzil Kobbekaduwa Mawatha, Battaramulla early this month which is said to be worth over Rs. 200 million.

In regard to the two houses in Dehiwala, which are alleged to be owned by the Rajapaksas, the FCID had obtained a search warrant from the Mt. Lavania Magistrate (Warrant No. 828/16) and had conducted a search a few weeks ago.

“The two-storeyed house at Mihindu Mawatha is still under construction and carries a name board ‘Madam Shiranthi Wickremasinghe Rajapaksa’. It is said that the 60 perches had cost the Rajapaksas Rs. 49.02 million while another five perch land belonging to the Dehiwala-Mt. Lavinia Multi-Purpose Cooperative Society had been sold to the Rajapaksas for Rs. 4.5 million,” sources said.

When this newspaper contacted the Dehiwala-Mt. Lavinia Multi-Purpose Cooperative Society at Nugegoda to find out how much they had received from the Rajapaksas for the five perch land, the lady officer who answered the call said that she could not make any comment but to call one hour later to speak to their General Manager from whom all these details could be obtained.

“Madam has gone out and will be back in one hour’s time. She will be able to furnish all the details you want,” she said. However all attempts thereafter to contact the General Manager were futile as no one answered the call.

According to sources, an underground apartment similar to the underground bunker at the Presidents House in Fort, which was also built for the Rajapaksa offspring, had been built at the four-storeyed house believed to be used as an armoury.

“The government valuers are yet to conduct a valuation of these two buildings but it appears that both houses are worth not less than Rs. 1,000 million as they are equipped with all the luxurious facilities and comforts,” sources claimed.

Meanwhile, questions have been raised as to how Yoshitha Rajapaksa who is a public servant that draws a government salary could accumulate such a large wealth unless he has won a huge jackpot.

“The FCID will investigate how a Navy Lieutenant could spend such an amount of money to purchase a land and to build luxurious palaces worth several millions of rupees. Our records do not show that Rajapaksa had ever won a jackpot, nor any other fortune. If so he has to inherit an enormous wealth from his parents. That too is ruled out as both Mahinda and Shiranthi Rajapaksa were not so rich when the former entered politics in the early 1970s. The FCID can check their wealth at the time Mahinda Rajapaksa entered politics and their wealth now to ascertain the difference,” sources claimed.

Meanwhile it is learnt that these houses were built for Yoshitha Rajapaksa to live after his marriage to a former girlfriend. “They were to be married but for some reasons it did not take place. It is up to the FCID to question this particular friend and they would be able to get more details about this property and how the Rajapaksas bought it,” sources added.

Further, the FCID is to investigate who funded the CSN building at Battaramulla which was given by the Urban Development Board (UDB) on a lease to the D. A. Rajapaksa Foundation.

“FCID, after an investigation on the controversial CSN under the Money Laundering Act, has unearthed how the D. A. Rajapaksa Foundation has breached the agreement reached with the UDA when obtaining the state-owned land, where the CSN building is now situated. Although this land had been given on condition, that it should not be used for any purpose other than for the D. A. Rajapaksa Foundation, the building in question had been constructed to house the CSN TV network in 2010, and it is alleged that after the fall of the Rajapaksa regime on January 8, a lease agreement has been signed by the Rajapaksa Foundation with CSN hurriedly, to show that this land had been taken over legally from the Foundation. Although the government valuers have valued this building at Rs. 200 million, they are yet to submit the accounts as to how they obtained the money. Chief Executive Officer of the Rajapaksa Foundation, Upul Dissanayake, had said that the money had been given by W. Karunajeewa, the former Chairman, People’s Bank whose daughter-in-law was one of the Directors at CSN.”

According to the sources, in the event the Rajapaksa offspring fails to explain how he amassed wealth which runs into several hundreds of millions of rupees to purchase the Dehiwala land at Mihindu Mawatha and to build the two palatial luxury houses, and also to construct the CSN office building at Denzil Kobbekaduwa Mawatha, Battaramulla, the FCID is once again planning to charge him under the Money Laundering Act which he was earlier charged under and placed under arrest for more than one month for his failure to reveal who invested in CSN.  

by Easwaran Rutnam

Lack of adequate funds is hampering work at the Ministry of National Co-existence, Dialogue and Official Languages.

The Minister in charge, Mano Ganesan, said that the lack of funds for the subjects of national coexistence and official languages “scare” him.

The Ministry was established after the new government took office with the promise of ensuring the issues between the communities are addressed.

However, while addressing the issue of reconciliation, the government is bent on developing the country and boosting the economy.“The government needs to bring material successes to the podium urgently. So the ministries building bridges, houses, highways are prioritised. We are a developing nation. That’s understandable under the normal conditions. But we are just after a bloody war and started to build a new nation.  The scars and suspicions are there. So the lack of funds for the subjects of national coexistence and official languages scare me. Therefore I am looking towards the international donor agencies who support cohesion, coexistence, reconciliation and language policy implementations in Sri Lanka,” the Minister said when asked by The Sunday Leader about the funding issue.

Ganesan’s ministry is critical because it handles two key subjects, coexistence and official languages, both interlinked.

The successful implementation of the official languages policy (OLP)

would be the preamble to ethnic coexistence and coexistence is the prelude to a political solution.

“While my colleagues build material infrastructures, I am building hearts and minds of the peoples. The basic truth is that, the material development will last only if the hearts and minds of the people are strongly placed within the national coexistence road map. Sinhala, Tamil and English languages have obtained references in the constitution of Sri Lanka. Constitutional clauses of Sri Lanka recognises Sinhala and Tamil as (i) official (ii) administrative (iii) national languages and English language as the Link language. That’s fine. But it remains only in the papers today,” Ganesan said.

This is the first time a trilingual minister has taken charge of the ministry and he is planning to implement the official languages policy with a new vigour.

That would make the Tamil speaking community confident. It would be a message of hope to the Tamils and all progressive people.

“The national question has two segments. It is the language issue and the power sharing issue.  We are discussing the concept of power sharing. It is a continuous process to achieve national consensus. But the language policy has the relevant references already in the constitution. We have to make only certain minor modifications in the law books and go for the implementation. I am confident that even the friends in the so called joint opposition  will support me on the official languages policy. Former minister of this subject my friend Vasudeva Nanayakkara is a stalwart in the opposition. But he is with me in this. The JVP is all out to support me in this subject. So we have a national consensus on the real time parity between Sinhala and Tamil languages and also to treat English as the link language as spelt in the constitution,” the Minister said.

Asked if the official language Policy of the State of Sri Lanka is a failed policy until now the Minister said that the policy has not failed but it is the implementation mechanism which has failed.

The current law prescribes the state employees on an all island blanket basis to learn the second official language after coming into the state services. Sinhala employees must learn Tamil and Tamil employees must learn Sinhala.

The year 2007 circular of the public administration ministry on the matter gave a five year period to the employees obtain efficiency in the second language. The efficiency is mandatory for incentives and promotions. But it was extended by another two years later and again by another two years now.

“Now some use various dubious methods to obtain the language efficiency certificates. Now almost ten years have passed since the first circular. They have to read, write, speak and understand the second language. But they are not doing this. If otherwise the Chief minister Wigneswaran would not complain. Similarly our children are put to learn the second national language at schools. Most don’t learn the second national language with motivation. But they learn other foreign languages with motivation. And also there is a shortage of 6,000 language teachers at schools. I can’t be a minister sitting at the ministry and keep dreaming of a trilingual new generation of Sri Lankans and a trilingual state service. I know under the current conditions it won’t happen. And the Tamil speaking people and leaders will keep on complaining. And common Tamils and Muslims would ask me that ‘if you cannot implement what is in law how on earth you are going to solve the power sharing subject by bringing new laws?’ Therefore the implementation mechanism has failed. I am reviving it,” he said.

Ganesan says his Ministry is planning to bring a few cabinet papers. There are 332 subdivisions of the administrative districts. They are divisional secretariat areas, within which 41 are officially declared as bilingual divisions as there are sizable numbers of Sinhala and Tamil speaking people living.

“I don’t believe in the all island blanket policy of bilingualism. That shall be anybody’s personal desire. But I plan to seek laws to the effect that all prospective state employees shall be bilingual before they take up jobs, at police offices, divisional secretariats, state health centers, local government legislatures etc located within all lawfully specified bilingual divisions. I look forward that it would come into force from next two years. Until then I plan to nominate translators and interpreters at such offices on a contract basis for two years. Such translators and interpreters would also be nominated at other state offices located in non-bilingual divisions too. It would serve the Tamil and also Sinhala speaking people who seek services at state offices anywhere in the island. This will also give motivation to the children at schools to learn the second national language as they have opportunities for state employment at bilingual divisions,” he said.

Ganesan wants to upgrade the National Institute of Language Educations and Training (NILET) into a Academy of National Languages.

He also plans to develop language teachers in the country. The teachers would be provided to the ministry of education.

“I have started discussions with the minister of education on this. We have a policy acceptance for a MoU. The teachers while teaching at schools can also go into the country and provide language tuition classes to the prospective and current state employees. And also to the private sector employees. The proposed academy also will produce translators and interpreters.  It is the need of the hour. I also seek support for the two year scheme of contracted translators and interpreters.  We require more modern language labs at out department of official languages to conduct language efficiency oral and hearing tests. We have already obtained support from the UNDP for this. We need to have more such labs at districts outside Colombo. I also plan to seek cabinet support for Tamil and Sinhala speaking benches at the courts so that the cases are heard in relevant languages.

I also plan to strengthen my ministry’s official languages commission to monitor and prosecute the official language policy violations in the state sector and also extend it the private sector.  I am also very keen to develop English, the link language education to the commoners in a rapid manner,” he said.

Even in the coexistence concept Ganesgan’s Ministry requires support. The Minister is planning to open up 16 districts dialogue centers. These centers would be operated with the support and involvement of non-governmental organisations.

“The national secretariat for civil societies is under my ministry. I have given instructions to the newly appointed DG of the secretariat on this. I want the civil society as the partners in the coexistence road map. Already the NGO/INGO registration and visa processes are in the stage of revamping.

The district dialogue centers would be used to bring ethnic, religious, local legislative and all marginalised segments of the community together under the concept of discussions, sports, art, culture and social activities. The Sinhala, Tamil and English classes to the commoners and state and private employees at district levels are planned to be coordinated at these district centers,” he said.

During the period of (2001-2004) ceasefire by the peace accord between government and the LTTE in the pre-war era, the negotiations were mostly at the highest level between the political leaderships with the support of international community.

The efforts taken to educate the people at the ground level on the necessities for peace and coexistence were inadequate.

“Thus the people-to-people peace campaign was a nonstarter. The stakeholders failed to provide necessary patronage to the peace education. Extremist forces of both south and north took advantage of this situation to destroy the peace momentum. Peace talks were labeled as ‘sellout’ in the south and ‘peace strap’ in the north. Extremists of both south and north outmaneuvered peace when their distort campaign were not countered with an adequate coexistence campaign. We need to keep the commoners engaged in the dialogue at the bottom ground level. My ministry through the cabinet subcommittee on Sri Lankan Identity has formed two action committees.  One is the national action committee of inter religions and other is national action committee of Artistes. We are now approaching the university student communities. I wanted to bring all such into dialogue and cohesion,” Ganesan explained.

The issue of bridging the language gap between the communities is moving forward but at a slow pace.

“I note a positive sense of realisation amidst the Sinhala and Tamil speaking communities.  As I said above we need to start the real-time ground level activity of coexistence by bridging the language gap. It is the prelude. I have over 2,000 language societies registered at this ministry. I have transformed into coexistence societies with language and coexistence tasks given to them,” Ganesan added.

Ganesan is in talks with former President Chandrika Kumaratunga to work together with her office wherever possible.

Ganesan is also a member of the Prime Minister’s action group on the Geneva resolution process.  There are four pillars. Out of the four pillars, the truth commission, judicial process, reparations, non-recurrence, and Ganesan’s ministry is keen to take up the non-recurrence pillar.

To do all this Ganesan’s Ministry needs funds. And that is the issue at hand. Ganeshan says he has had discussions with some foreign donors to obtain assistance and agreements are expected to be signed soon. But at the moment that is not enough.

• CBSL requests for original documents from the Panamanian Central Bank

by Amavasya Sirisena

The exposures of Panama Papers, which have stirred up many a hornet’s nest in Sri Lanka and elsewhere, will result in investigations by both the country’s banking watchdog as well as Sri Lanka Police criminal investigation arm, The Sunday Leader learns.

Speaking to The Sunday Leader, Governor of the Central Bank of Sri Lanka Arjuna Mahendran stated that the banking watchdog had requested original documents from Panamanian counterpart for further investigations. As such, the CBSL was awaiting for original documents from the National Bank of Panama or ‘Banco Nacional de Panamá’. However, Panama does not have an ‘official’ Central Bank.

When questioned on the kind of investigations that have been commenced over Sri Lankan individuals and companies exposed by Panama papers, the governor stressed that the CBSL would be contacting relevant authorities such as the Department of Inland Revenue etc., to ascertain whether any Sri Lankan individuals or entities have actually take part in the scandals, under principal laws such as Inland Revenue Act and the Exchange Control Act when conducting investigations. He further pinpointed that they are taking action to mitigate such activities in the future by making the public aware of the minuses of tax evasion etc.

Earlier, Finance Minister Ravi Karunanayake speaking to the media said he was awaiting green light from President Maithripala Sirisena and Prime Minister Ranil Wickremesinghe prior to directing the Central Bank to launch investigations into Sri Lankan individuals and companies revealed in the Panama Papers leak.

Massive leak

According to The International Consortium of Investigative Journalists, the Panama Papers is a global investigation into the sprawling, secretive industry of offshore that the world’s rich and powerful use to hide assets and skirt rules by setting up front companies in far-flung jurisdictions. In terms of size, the Panama Papers is likely the biggest leak of inside information in history – more than 11.5 million documents – and it is equally likely to be one of the most explosive in the nature of its revelations.

Based on a trove of more than 11 million leaked files, the investigation exposes a cast of characters who use offshore companies to facilitate bribery, arms deals, tax evasion and financial fraud and drug trafficking. Offshore corporations have one main purpose  – to create anonymity. Recently leaked documents reveal that some of these shell companies, cloaked in secrecy, provide cover for dictators, politicians, and tax evaders. Behind the email chains, invoices and documents that make up the Panama Papers are often unseen victims of wrongdoing enabled by this shadowy industry.

Key figures of the leak

When exploring the key figures, the Panama Papers expose the internal operations of one of the world’s leading firms in incorporation of offshore entities, Panama-headquartered Mossack Fonseca, that has branches in London, Beijing, Miami, Zurich and more than 35 other places around the globe. The 2.6 terabyte trove of data at the core of this investigation contains nearly 40 years of records, and includes information about more than 210,000 companies in 21 offshore jurisdictions. The firm is one of the world’s top creators of shell companies, corporate structures that can be used to hide ownership of assets. The law firm’s leaked internal files contain information on 214,000 offshore companies connected to people in 200 countries and territories.

It is the largest cross-border media collaboration ever undertaken. Journalists working in more than 25 languages dug into Mossack Fonseca’s inner affairs and traced the secret dealings of the law firm’s customers around the world. They shared information and hunted down leads generated by the leaked files using corporate filings, property records, financial disclosures, court documents and interviews with money laundering experts and law-enforcement officials.

The data include emails, financial spreadsheets, passports and corporate records revealing the secret owners of bank accounts and companies in 21 offshore jurisdictions, from Nevada to Hong Kong to the British Virgin Islands.

Mossack Fonseca

The leak contains more than 11.5 million internal files of the company. It includes nearly 40 years of data, from 1977 through the end of 2015. The data contains a few incorporations before 1977, but they are sporadic and represent less than 1% of the companies.

Although the data within the leak stretches back to 1977, Mossack Fonseca only came into being under its current name and structure in 1986, when Ramón Fonseca merged his small, one-secretary law firm in Panama with another local firm headed by Jürgen Mossack, a Panamanian of German origin.

The data shows that Mossack Fonseca worked with more than 14,000 banks, law firms, company incorporators and other middlemen to set up companies, foundations and trusts for customers.A database leak at the Mossack Fonseca law firm in Panama exposes how it hides money for its clients.

Mossack Fonseca co-founder Jurgen Mossack has claimed he was surprised to learn that clients of his firm had ties to Russian President Vladimir Putin and the current and former members of China’s Communist Party Politburo Standing Committee.

Mossack told CNBC television in an interview that his firm does not regularly monitor the actions of companies it has helped set up for clients. Had Mossack Fonseca & Co. been aware of such connections, “normally in a case like that we would resign, we would stop dealing with that client and with that company,” he said.

It was one of a handful of interviews that Mossack and his partner Ramon Fonseca have given since the publication of the Panama Papers, an investigation into the leaked files of the firm. Mossack said in an interview with the Wall Street Journal that the firm would continue forward. “We’re not going to stop the services and go plant bananas or something,” he said. “People do make mistakes. So do we, and so does our compliance department. But that is not the norm.”

One question that has been raised since the publication of the Panama Papers has been about the relative absence of rich and powerful Americans. Fonseca told the Associated Press in an interview that their law firm has only a handful of American clients; most of them were members of Panama’s growing expatriate retirement community. It’s not out of any anti-Americanism or fear of the Internal Revenue, according to the AP.

In other developments, U.S. Senators Elizabeth Warren and Sherrod Brown wrote Treasury Secretary Jacob Lew seeking assurances that Treasury is investigating “any potential involvement of U.S. or U.S.-linked banks, financial services institutions, or other companies or individuals with Mossack Fonseca & Co.” They mentioned as a particular concern “whether companies or individuals involved with or utilizing the services of this firm may have facilitated money laundering or terrorist financing.

The leak exposes the offshore holdings of 12 current and former world leaders and reveals how associates of Russian President Vladimir Putin secretly shuffled as much as US$2 billion through banks and shadow companies.

The files contain new details about major scandals ranging from England’s most infamous gold heist, an unfolding political money laundering affair in Brazil and bribery allegations convulsing FIFA, the body that rules international soccer.

They also provide details of the hidden financial dealings of 128 other politicians and public officials around the world and show how a global industry of law firms and big banks sells financial secrecy to fraudsters and drug traffickers as well as billionaires, celebrities and sports stars.

The Panama Papers expose offshore companies controlled by the prime ministers of Iceland and Pakistan, the king of Saudi Arabia and the children of the pPresident of Azerbaijan. They also include the names of at least 33 people and companies blacklisted by the U.S. government because of evidence that they’ve done business with Mexican drug lords, terrorist organizations like Hezbollah or rogue nations, including North Korea and Iran.

Most of the services the offshore industry provides can be used for legal purpose and are by law-abiding customers. But the documents show that banks, law firms and other offshore players often fail to follow legal requirements to make sure clients are not involved in criminal enterprises, tax dodging or political corruption. The files show that these fixers and middlemen protect themselves and their clients by concealing suspect transactions. In some instances, they work to head off official investigations by backdating and destroying documents.

The Panama Papers make it clear that major banks are big drivers behind the creation of hard-to-trace companies in the British Virgin Islands, Panama and other offshore havens. The files list more than 15,600 paper companies that banks set up for clients who wanted to keep their finances under wraps, including hundreds created by international giants UBS and HSBC.

Heads of States, their associates, ministers, elected officials etc. from 140 countries all over the world have been accused of their connections to offshore companies in 21 tax havens. The main service provided by tax havens is simply that — since they’re not bound by other countries’ laws — they don’t report the income of foreigners to the relevant tax authorities.

According to The Intercept, tax havens serve two functions: tax evasion, which involves hiding assets and is illegal, and tax avoidance, which is done by multinational corporations in the open and is legal (since the same corporations have conveniently made sure the laws work that way). Eliminating them requires different strategies.

Panama Papers hit political agendas around the world

The office of U.K. Prime Minister David Cameron issuing a statement recently said that “there are no offshore funds/trusts which the Prime Minister, Mrs. Cameron or their children will benefit from in future.” It was the most recent in a string of responses about Blairmore, an investment fund run by his father Ian and incorporated in the Bahamas, which avoided paying tax in Britain, as disclosed in the Panama Papers.

Previously the Prime Minister’s statements about whether he or his family benefitted from his father’s offshore firm Blairmore had been in the present tense, prompting speculation about future benefits. For instance, a spokesperson said Tuesday that “the prime minister, his wife and their children do not benefit from any offshore funds.” That was after trying to dismiss it as a “private matter” on Monday.

Labour Party leader Jeremy Corbyn had pushed back. “It’s a private matter insofar as it’s a privately held interest. But it’s not a private matter if tax is not being paid. So an investigation must take place, an independent investigation, unprejudiced, to decide whether or not tax has been paid.

“I think the Prime Minister, in his own interest, should tell us exactly what’s been going on.”

He also called for the Cameron government to take a stronger stance with British crown territories such as the Cayman Islands and British Virgin Islands. They should be told, “You must obey U.K. tax law; you must not become a harbour for tax avoidance and tax evasion.”

President Barack Obama spoke out about tax havens. In announcing new U.S. Treasury rules designed to make it harder for corporations to reduce their taxes by merging with foreign firms, he also noted, “We’ve had another reminder in this big dump of data coming out of Panama that tax avoidance is a big, global problem. It’s not unique to other countries.

Sen. Bernie Sanders, battling his Senate colleague Hillary Clinton for the Democratic nomination for presidency, meanwhile used the Panama papers to attack her. “I was opposed to the Panama Free Trade Agreement from day one,” he said in a statement released by his campaign.

“I predicted that the passage of this disastrous trade deal would make it easier, not harder, for the wealthy and large corporations to evade taxes by sheltering billions of dollars offshore.

I wish I had been proven wrong about this issue, but it has now come to light that the extent of Panama’s tax avoidance scams is even worse than I had feared.

“My opponent, on the other hand, opposed this trade agreement when she was running against Barack Obama for president in 2008. But when it really mattered she quickly reversed course and helped push the Panama Free Trade Agreement through Congress as Secretary of State. The results have been a disaster.”

In Pakistan, opponents of Prime Minister Nawaz Sharif, including retired cricket star and politician Imran Khan, hammered him with demands that the country’s corruption watchdog open an investigation. Sharif announced that he would do so.

Three of his children owned London real estate through offshore companies according to files examined by the International Consortium of International Journalists and its partners.

 

Football Pro Messi Gets Nervous

The Panama Papers now reveal that Lionel Messi, the 28-year-old Argentinean, widely considered being the world’s greatest footballer apparently holds a fifty percent share of a shell company, the existence of which was unknown until now, and which Mossack Fonseca temporarily looked after. This is in addition to the offshore companies that Spanish investigators have already uncovered. The company is called Mega Star Enterprises, a fitting name for the most popular footballer on the planet, who could have gone anywhere but always stayed in Barcelona. After the tax evasion charges were made public, there was widespread concern in the city that Messi might leave the club on bad terms. His fate would then have been similar to that of football stars past, among them Johan Cruyff, Bernd Schuster, Diego Maradona, Ronaldo, Luis Figo, and Ronaldinho.

The Football France sports journal estimated that Messi’s gross income amounted to EUR 65 million in 2015. According to the report, he earns an annual salary of EUR 36 million in Barcelona; the rest of his income is from advertising revenues. In comparison, Cristiano Ronaldo, the Real Madrid striker, apparently earns “only” EUR 54 million. And Neymar, Messi’s Brazilian teammate at FC Barcelona, has an annual salary of EUR 36.5 million.

People who earn a lot can also save a lot, especially when they invest their money wisely. As the Panama Papers data proves, five sham directors head Mega Star Enterprises, which was still active as recently as a few weeks ago. However, Lionel Andrés Messi and his father and manager Jorge Horacio Messi appear to be the company’s true owners, as a Panama Papers document from June 2013 shows. In it, an employee of a Uruguayan law firm explains to the offshore provider Mossack Fonseca (Mossfon) that the Messis are the ultimate beneficiaries of decisions relating to Mega Star Enterprises.

This is in addition to the already well-known allegations about Messi’s approach to managing his finances, which was already enough to get him into trouble. In October 2015, a Spanish examining magistrate decided that Lionel Messi and his father Jorge Horacio would be put to trial for suspected tax evasion. Previously, the public prosecution’s office had argued in favour of dropping all charges against Messi and prosecuting his father only. However, the Spanish ministry of finance insisted on pressing charges against the Argentinean national player. Messi must now also appear in court. (Source – sueddeutsche.de)

Global Topdogs In Panama Papers Leaders of countries

 

•         President of Argentina, Mauricio Macri

•         Former Prime Minister of Georgia, BidzinaIvanishvili

•         Iceland’s Prime Minister, Sigmundur Davíð Gunnlaugsson (Resigned)

•         Ex-prime minister of Iraq, Ayad Allawi

•         Prime Minister of Jordan and Minister of Defense, Ali Abu al-Ragheb

•         Prime Minister of Qatar, Hamad bin Jassim bin Jaber Al Thani

•         King of Saudi Arabia, King Salman bin Abdulaziz bin Abdulrahman Al Saud

•         President of Sudan, Ahmad Ali al-Mirghani

•         President of the United Arab Emirates and emir of Abu Dhabi,  Khalifa bin Zayed bin Sultan Al Nahyan

•         Prime Minister of Ukraine(1996-1997), Pavlo Lazarenko

•         President of Ukraine (2014 present), Petro Poroshenko

Relatives/associates of leaders

 

•         Azerbaijan’s Prime Minister Ilham Aliyev’s wife, children and sister

•         Deng Jiagui, brother in-law of China President

•         Li Xiaolin, daughter of Former Chinese Premier

•         Arkady and Boris Rotenberg, childhood friends of Russian President Putin

•         Sergey Roldugin, close friend of Russian President Vladimir Putin

•         Rami Makhlouf, cousin of Syrian President Bashar Assad

•         Ian Cameron, father of British Prime Minister, David Cameron

•         Alaa Mubarak, son of Former Egyptian President, Hosni Mubarak

•         Mounir Majidi, Personal Secretary to the King of Morocco, Mohammed VI

•         Mariam Safdar, Hasan and Hussain Nawaz Sharif,  children of Pakistan’s Prime Minister, Nawaz Sharif

•         John Addo Kufuor, son of Ghana’s former president, John Agyekum Kufuor

•         Mohd Nazifuddin bin Mohd Najib, son of Malaysia’s Prime Minister, Najib Razak

•         Daniel Muñoz, Aide to former Argentine Presidents Kirchner

•         Juan Armando Hinojosa, “Favourite contractor” of Mexico’s President

•         Pilar de Borbón, Former king of Spain’s sister

•         Jean-Claude N’Da Ametchi, Associate of Cote d’Ivoire’s former president, Laurent Gbagbo

•         Clive Khulubuse Zuma, Nephew of South African president, Jacob Zuma

•         Mamadie Touré, Widow of Ghana’s former dictator, Lansana Conté

(Source: ICIJ)

• Controversial Chinese Co. behind Norochcholai offered major contract by Good Governance Administration

by Nirmala Kannangara and Ifham Nizam

The proposed plan to offer the contract for the Gampaha-Attanagalle integrated water project to the controversial China Machinery Engineering Corporation (CMEC) has raised questions as to why such an unsolicited contract has been offered. The then opposition criticised the Rajapaksa government for offering unsolicited contracts to obtain huge commissions. It was the same CMEC that constructed the Norochcholai power plant which failed on several occasions since it was commissioned a few years ago.

Despite the Norochcholai coal power plant’s regular breakdowns which resulted in interrupted supply to the national grid, the Rajapaksa regime still entrusted CMEC with the water projects in Kurunegala and Gampaha-Attanagalle.

Although the UNP then wanted to know what procedure the Rajapaksa administration had followed in selecting this Chinese company to offer the contract to and what the reasoning was behind overlooking reputed companies for a much lesser amount and who the local agent of CMEC was, questions have been raised as to why the same company is now being offered the contract by the UNP-led national government as well.

Foreign grants

“Earlier most of the projects were done through foreign grants. When loans were sought from foreign companies, the local engineers prepared the estimate and requested for the loan which was generally a government-to-government loan. The interest rates of government-to-government loans which are soft loans were from the ranges of 0.5% up to a maximum of 2%. However in recent times, instead of following this procedure, the government opted to offer unsolicited contracts for major projects with the aim of obtaining commissions.

It is the middlemen close to the government that makes the estimate and offer the ‘package’ including the loan to the government and get the contract which is three to five times more than the local engineers’ estimate,” highly reliable sources from the National Water Supply and Drainage Board (NWSDB) said on condition of anonymity.

According to the sources, all unsolicited contracts come with commercial loans with interest rates of more than 6% which is an enormous amount of money for a country such as ours.

“These contractors don’t mind taking commercial loans at higher interest rates as it is paid back by us. During the Rajapaksa regime, several unsolicited contracts were given by the National Water Supply and Drainage Board amounting to Rs. 63 billion.

When the Board found it difficult to repay the loan installments, the Water Board rates were increased passing the burden on to the consumers. For the rulers this is not an issue as they get commissions amounting to billions of rupees from the contractors, but it is the consumers that have to bear the cost,” the sources added. The sources also explained how the former Water Supply and Drainage Minister Dinesh Gunawardena presented a proposal to the Cabinet for a clean water supply project for the Gampaha District covering Attanagalle, Minuwangoda and Gampaga electorates which was Basil Rajapaksa’s constituency. “It was made to be understood that the Rajapaksa Cabinet approved the granting of the contract to CMEC for a higher estimate.

There are many foreign companies that had carried out water supply projects in Sri Lanka for lesser amounts. In that backdrop, what made the Rajapaksas’ offer an unsolicited contract to a company that has a bad track-record in Sri Lanka?” the sources alleged.

According to these sources, it was a surprise to Water Board employees when the contract of US $ 230 million was given to CMEC when the entire country knew what their standard was, following the failed Norochcholai project.

“Had the Water Board called tenders to offer the Gampaha-Attanagalle water project, even if CMEC made the lowest bid, our Technical Evaluation Committee would certainly have rejected their application after going through their earlier project records in Sri Lanka.

Just as the then government obtained huge commissions from the Norochcholai power project, this contract was verbally offered to CMEC to obtain commissions. But since the government changed unexpectedly, we believe they could not get the commission they were eyeing,” the sources said.

According to the sources, as CMEC had a good rapport with the Rajapaksas, they had initiated the Gampaha-Attanagalle project only on verbal approval which is highly scandalous.“CMEC got mobilized for the project and even had to obtain a building on rent for its office in Gampaha at a higher price.

This building was obtained from former Petroleum Resources Deputy Minister Sarana Gunawardena. Although CMEC had the opportunity to go for a lower price rental, it is alleged that they were forced to take Gunawardena’s building at a higher rate. Since Basil and Mahinda Rajapaksa were in the background offering the contract and were the beneficiaries too,  CMEC had no other option but to adhere to the conditions,” the sources claimed.

Unsolicited contract

The sources accused the Ranil Wickremesinghe government of planning to sign the unsolicited contract with CMEC and said that the Water Board is eagerly waiting to find out whether the initial estimated cost would come down since the Yahapalanaya government is not ‘supposed’ to obtain commissions from any project.

“They promised to put a stop to bribery and corruption and that when offering a contract, it would be done transparently. If so, what has happened now? We want to find out why they went ahead with the unsolicited contract which was promised by the Rajapaksas,” the sources said.

According to the sources, unlike the Port City project where the Rajapaksa administration had signed agreements with the Chinese companies, the NWSDB has not signed any agreement with CMEC and can offer the contract to competitive bidders following government tender procedure.

“The present government promised to stop the Port City project, and it was stalled for a few months, but there was no other option but to go ahead with the project as the agreement had already been signed with the Chinese. In this water project, neither the former Water Supply and Drainage Ministry nor the then government signed any agreement with CMEC but initiated the project on verbal assurance.

Hence, the present government who was very critical of granting the unsolicited contract to CMEC has got a good opportunity to call tenders and offer it to the lowest bidder with previous good record. Instead, they too are planning to award the contract to the same company, most probably for them to get the commission,” the sources alleged. Meanwhile, Convener Anti-Corruption Front, Wasantha Samarasinghe said the proposed water project would be yet another sub-standard construction like the Norochcholai plant and added that he wished to find out whether the present government was able to get the US$ 230 million reduced.

Initial estimate

“Good governance means no commission or corruption. If so, they could have got this amount reduced. As Mangala Samaraweera when in opposition said, the initial estimate for this project was US $ 150 million. The local agent of CMEC and its chairman is accused of being involved in many frauds and was a middleman in the Norochcholai coal power plant as well,” Samarasinghe added.

Meanwhile, Chairman the NWSDB, K. Alahudeen Ansar said that there was no other option but to allow CMEC to continue with the project as Gampaha- Attanagalls is in dire need of drinking water supply.

When asked why the Water Board could not cancel CMEC project and call for new tenders for a lower price, Ansar said that he too agree that the project price given by CMEC is much higher but added that the consequences that has to be faced by the people in the Gampaha District in delaying initiating a drinking water supply project is enormous.

“If we stop CMEC, then we will have to call tenders and once the entire process if followed, it will take at least another nine years to finish this project from the beginning. CMEC had already spent US $ 20 billion on this work. They have taken a risk by spending such an amount. If we stop this, they will have to bear the loss,” Ansar added.

According to the Chairman, the project value had not been changed. He added that the contractor had agreed to increase the amount of the work they initially agreed during the Rajapaksa regime.

“They agreed to rehabilitate the Basnagoda reservoir and to construct a dam and to increase the water supply coverage in the district. In addition they agreed to bear the cost escalation due to delay in implementing the project and to bear the loss of the rupee deprivation,” Ansar said.

by Nirmala Kannangara

Should all crimes of a wharf clerk turned CEO Mihin be ignored just because he now turns state witness against the Rajapaksas?

Sajin de Vass Gunawardena, former Monitoring MP, External Affairs Ministry, who stands accused of mass-scale fraud, unpaid loans, criminality and unfulfilled promises during the Rajapaksa regime, is back in the spotlight, this time for enjoying ministerial privileges from taxpayers hard-earned money despite not being an MP, a minister or even a local government member.

Despite pledges being made by President Maithripala Sirisena and Prime Minister Ranil Wickremesinghe prior to the 2015 presidential election, that stern action would be taken against all those who syphoned public money and were involved in fraud and corruption, the ‘good governance’ government has provided Sajin Vass with police guard instead of taking legal action against him for the alleged large-scale corruption he was involved in.

Sajin Vass had come to an agreement with the Criminal Investigation Department (CID) to turn state witness in all investigations carried out against alleged Rajapaksa family corruption. In return, immediately after he was granted bail last year, the Defence Ministry provided Vass with security from the Ministerial Security Division (MSD) together with back-up vehicles.

Questions have been raised as to why the CID or the Financial Crimes Investigation Division (FCID) have failed to take any action against Sajin Vass on the alleged mass-scale frauds he was engaged in, other than taking action only on the relatively minor matter of allegedly misusing 23 vehicles at the Presidential Secretariat.

Vass was arrested on May 11, 2015 for misusing 23 Presidential Secretariat vehicles during the Rajapaksa regime and was granted bail after four months on September 23.

A leading legal luminary who wished to remain anonymous queried as to why the government provided this accused with back-up vehicles and MSD protection when he was one of the most prominent personalities who not only misused public money but also is alleged to have been involved in money laundering and other criminal acts.

“Any person can become a state witness but in Sajin Vass’ case, he was given MSD security because he had agreed to spill the beans on the Rajapaksas. He was bailed out in September and we would like to ask the law enforcement authorities in this country, how much details against the Rajapaksas has Sajin Vass provided over the past seven months? If he did indeed provide details on Rajapaksa family deals, why has the CID or the FCID so far failed to take action against any Rajapaksa family member?” sources ask.

It is also surprising, these sources say, why no action against Sajin Vass has been taken under the Prevention of Money Laundering Act No:5 of 2006 when there is ample evidence against him in this regard.

“If Sajin Vass’ wealth and businesses are taken into account, it is well known that his assets will be worth billions of rupees. From where did he get this money? Even someone holding a high post cannot accumulate such vast wealth in less than a decade. Just because he had promised to be a state witness against the Rajapaksas, this government does not want to proceed with the cases in which Sajin stands accused of. This is bad precedence,” sources claimed.

It was an open secret that Sajin Vass who did not inherit any huge wealth, became a multi billionaire after Mahinda Rajapaksa took office as President in 2005. Vass previously had worked as a wharf clerk in Dubai at Trico International, one of the largest freight forwarding companies. His duties entailed assisting VIPs with their formalities. It was in Dubai that Sajin Vass met Rajapaksa when the latter travelled to Dubai and the two formed a close friendship.

Vass was also accused of ignoring Ceylon Petroleum Corporation’s (CPC) continuous requests to pay the Rs.170 million he owed for the fuel he had obtained for his fuel stations in the south during the previous regime. He settled the outstanding bills in fear after the present government came into power to prevent a possible arrest.

“What made Sajin Vass refuse to pay the money he owed the CPC during the Rajapaksa regime and pay it immediately after the fall of the former regime?” sources added.  After Mahinda Rajapaksa became President, Sajin Vass was appointed Chief Executive Officer (CEO) Mihin Lanka in 2006 where he is accused of involvement in many controversies and mismanagement of Mihin Lanka funds which led to the airline suffering huge losses and eventually became bankrupt.

Whilst at Mihin Lanka, Vass formed his own company in Singapore under his wife’s initials, TPL, Inter Pvt LTD, and allegedly got  this company to provide ground handling work for Mihin Lanka. It is also alleged that this company procured ground handling equipment on outright payment and leased them to the airline where Vass was  CEO for Colombo operations at US $ 223,000 per month.It is also learnt how Sajin Vass had got the airline to pay TPL a two month’s rental as a security deposit. It was during this time that Mihin Lanka had obtained a five-year loan to the tune of US $500,000 from TPL at a higher interest rate of 18% and an additional 4% as a penalty for any delayed payments of rental on ground handling equipment to TPL.

On the instructions of Sajin Vass, it is alleged the airline obtained two aircrafts from Bulgaria on a wet lease for a high rental. Mihin Lanka leased one A320 aircraft from Bulgaria for 300 block hours and paid US $3,800 per block hour. However according to airline experts, although Mihin Lanka paid such an enormous amount per block hour, the same aircraft could have been leased for US$ 1,990. The sources further said the second aircraft which too was on a wet lease incurred more losses to the company.

“The agreement was to use the second aircraft for a minimum of 350 block hours at a rate of US $ 2,300 per hour. This aircraft was brought to the country in a rush but the airline was unable to get the necessary clearance for its operation which led Mihin Lanka to house the 24 member crew in a hotel in Katunayake for seven weeks until the first commercial flight took off on April 24. It is estimated that the total loss to the airline by not operating these 49 days was US$759,000 whilst the crew members had to be paid an allowance of US$71,040 and the accommodation cost for the hotel in Katunayake was US$53,280,” sources claimed.

Meanwhile there are also questions about how Sajin Vass obtained money to purchase small aircraft and helicopters for Cosmos Aviation Services (Pvt) Ltd. According to details this newspaper is in possession of, Cosmos Aviation had purchased a 4R RVG Cessna 152 for US$ 46,900 on June 10, 2014 while a second-hand 4R AVG Cessna 172 had been purchased on January 15, 2014 for US$ 60,000. Meanwhile, another 4R TDA Cessna 152 aircraft had been purchased by Cosmos Aviation for US$ 38,000 while a 4R SAV RA 34 200T had been purchased for US$ 80,000 and a 4R SAK Robinson 66 for USD 1,000,000.

“For a person who was leading an ordinary life before entering politics, it is questionable as to how he could accumulate such a large wealth as to own a fleet of aircraft and to operate a flying school of his own. Why cannot the CID, the FCID and the Commission to Investigate Allegations of Bribery or Corruption take action against Sajin Vass? It is surprising as to why no action against this suspect is being taken simply because he has become a state witness. Have the Police provided any other state witness in this country with at least one police constable to ensure their safety?” sources queried.

The controversial former Monitoring MP for the External Affairs Ministry is also accused of slapping former Sri Lankan High Commissioner in UK, Dr. Chris Nonis in September 2014 in the USA but no action was taken against Vass by his friend Mahinda Rajapaksa.

Many attempts were made to contact Secretary Law and Order and Prisons Reforms Jagath Wijeweera to find out as to why MSD security and backup vehicles had been provided to Sajin Vass and whether all other state witnesses are also given such security, Wijeweera was not available for comment. Although a text message was sent to him seeking a comment, he did not respond till the paper went to print.

Defence Secretary Karunasena Hettiarachchi when contacted wanted this paper to call him later but he never answered the calls thereafter.

by Nirmala Kannangara

A former Air Force Chief and an infamous big business wheeler-dealer are attempting to influence the Sri Lanka Air Force (SLAF) to acquire multi-role JF-17 ‘Fierce Dragon’ fighter aircraft jointly developed by China and Pakistan, at a higher rate, an Air Force inside source said.

The source, who wished to remain anonymous, said a JF-17 will cost the SLAF a staggering US $ 29 million while the same aircraft from a reputed manufacturer in Russia would cost between US $ 20-25 million.

“Despite knowing full well that the China-Pakistan jointly developed aircraft are not used by any other air force in the world, these middlemen want to promote this aircraft and get a commission of more than US $ 4 million per aircraft,” the source alleged.

According to the source, the JF-17 has so far not been a proven aircraft nor been used by any other air force in the world. Unless 300 to 400 aircraft are sold by the manufacturer, the source says, no one can guarantee as to how long they would function without giving troubles.

“This is an indigenous product and a country like ours cannot invest a huge amount of our foreign reserves to purchase ‘unknown’ jet fighters. When these middlemen were promoting the JF-17, the Indian government was concerned and offered an Indian manufactured aircraft which is still in experimental stages. The Light Combat Aircraft (LCA) ‘Tejas’ is a multi-role light fighter and is manufactured by Hindustan Aeronautics Limited (HAL). If Sri Lanka goes on to purchase the Indian manufactured aircraft, we will never get proper fighter aircraft because India does not want us to have good jet fighters but only fighter aircraft that do not perform well,” the source added.

Both Pakistan and India are said to have been keen to show that Sri Lanka has agreed to be their export customers. The source further said that unless the SLAF purchases jet aircraft from a reputed manufacturer, when it comes to overhauling the aircraft, it will be a serious issue for the Air Force.

“However, there is a dire need to purchase jet aircraft for the Air Force, so that Air Force pilots to be occupied. After the war ended, many of the pilots and other staff have been confined to offices. The SLAF should purchase new aircraft and give the proper training to its officers without confining them to offices,” the sources added.

According to the SLAF sources, the Air Force has failed to get the jet fighters purchased during the Rajapaksa regime overhauled as the aircraft have been purchased through shady deals and from disreputable companies. As a result, most of the jet fighters are now grounded. This is the reason that the SLFA is now planning to purchase eight fighter aircraft.

“Had these jet fighters been purchased from reputable suppliers, we could have got all these aircraft which still have life-span, overhauled in a foreign country without any difficulty. To overhaul one jet aircraft, it costs about US$ 3 million and much less than the price of a new aircraft,” the sources added.

According to the sources, former Air Force Commander Air Marshal Jayalath Weerakkody had visited Pakistan many times to hold discussions with the Pakistani Air Force Chief for purchasing JF-17 aircraft; the present Commander Gagan Bulathsinhala too had made a few visits to Pakistan for the same reason.

It is also alleged that this Air Marshal who was later posted to Pakistan as Sri Lanka’s High Commissioner had continued to discuss the JF-17 purchase with the Pakistani officials. Recalled to Sri Lanka after the fall of the previous regime, Weerakkody is still a frequent visitor to the SLAF Headquarters to get this deal through.

The sources further explained that the Sri Lankan Government has come under severe pressure over the proposed plan to purchase JF-17 from Pakistan, and they claimed that India is very much against the idea.

“The single engine multi-role JF-17 which was jointly manufactured by Pakistan Aeronautical Complex and Chengdu Aircraft Corporation of China is better than the light combat aircraft ‘Tejas’ that Hindustan Aeronautics Limited is manufacturing now. In the event the government seals the deal with Pakistan to purchase eight fighter aircraft, there will be serious repercussions. But how can India lay terms and conditions to us? If we need to purchase aircraft, we should have the independence to buy from any country; neighbouring India cannot ask the SLAF not to buy from Pakistan but from India. Anyhow, if we go to any of these two countries to purchase the fighter aircraft, it is our country that will have to face the loss,” the sources added.

However, owing to the pressure mounted on Sri Lanka, it is now learnt that President Maithripala Sirisena has decided to put off the purchase of the JF-17 fighter aircraft from Pakistan and go for a viable deal with Russia instead.  According to media reports, the Cabinet last week took a decision to put off the purchase of the Sino-Pakistan JF-17 fighter jet aircraft indefinitely to prevent possible India’s ill-feelings towards Sri Lanka.

According to the sources, the present Air Force Commander, the Army Commander, the Sri Lanka Navy Chief of Staff, and a representative from Sri Lanka Logistics are currently in Russia to discuss whether Sri Lanka can purchase the necessary aircraft for the SLAF from them.

“If we can come to an agreement with Russia, neither India nor Pakistan will get angry with us. The Russian jet fighters are cheaper than the Pakistani aircraft and since they are reputable manufacturers, there is no need of looking for any other place for overhauling the aircraft,” the sources added.

Meanwhile, the Air Force sources said the government’s decision to consider Russia for jet fighters had upset the wheeler-dealers.

“Other than the former Air Force Chief, the other wheeler-dealer is a big businessman who was in the elite list of businessmen during the Rajapaksa regime. These middlemen have now panicked since they will be losing the commission,” the sources said.

Air Force Spokesman Group Captain Chandima Alwis, however, said the Air Force had never proposed to purchase aircraft but was carrying out a study of potential fighter aircraft suppliers in the event the SLAF needed to add to the existing fleet.

“The SLAF have Russian manufactured MiG 27 and Israel manufactured Kafir fighter aircraft. We never had any discussions either with India or Pakistan to buy their aircraft. Most of our fighter aircraft are over 30 years old but can be used for a longer period if they are overhauled. But we will have to pay a high price to overhaul these aircraft. It is better to purchase brand new fighter jet aircraft rather than overhauling the old aircraft which will have to be refurbished over and over again which is an extra cost to the SLAF,” Group Captain Chandima Alwis said.

When asked whether new fighter jet aircraft are to be purchased because the existing aircraft do not have modern technology, de Alwis said all SLAF aircraft have modern technology, and they needed to replace these aircraft simply because it would cost the SLAF more money to overhaul them.

All attempts to contact Defence Secretary Karunasena Hettiarachchi failed because he was at meetings continuously. Several messages were left for the Defence Secretary for this newspaper to obtain his comment, but he did not respond to any of our messages.

by Ashanthi Warunasuriya and Hafsa Sabry

The Supreme Court decision not to pass the much anticipated Right to Information Bill is yet another setback to the country’s media freedom. Not only media personalities and media institutions, even the general public were hoping the bill that would enable them to have information on how taxpayers’ money was spent, would see the light of day.

The Supreme Court last week determined that certain clauses of the Bill were in violation of the Constitution and instructions were given to amend the Bill accordingly. In the event the Bill is to be passed in its present form, it should get a 2/3 majority in parliament and approval through a referendum.

Media freedom in this country took a battering, especially during the Rajapaksa era when journalists who exposed bribery and corruption and named the bigwigs behind these came under attack, went missing or were murdered in cold blood.

Although they rode to power promising media freedom and constructive criticism, there are fears this government too is now moving towards the Rajapaksa path as there have been several instances where President Maithripala Sirisena has reportedly requested heads of media institutions not to carry certain news items relating to his family.

Even though many promises were made on election platforms, it seems the administrators have little courage to implement their promises relating to media freedom. It is in this backdrop that the Ministry of Parliamentary Reforms and Mass Media which has spoken a great deal about how this government has allowed media freedom in the country, called upon all news websites to get registered with the ministry or face the risk of being banned.

During the Rajapaksa regime, the media had very little freedom to expose corruption among government officials and powerful politicians. It was not only the media that was suppressed but also the general public whose right to information was censored. To ascertain their personal views on media freedom in the country today, The Sunday Leader spoke to a number of media heads, and to the Deputy British High Commissioner to Sri Lanka and Maldives, many of them refused to make any comment which proved they were still uncertain as to whether media freedom is a reality today.

One of the Chief Editors of a leading weekend English newspaper who wished to remain anonymous said the present government had given ample freedom to journalists compared to the former regime.

“Although there is media freedom, the government should further give an assurance that they will not be questioned nor any action taken against those who criticize the government or politicians. The government should also implement the Right to Information Act as soon as possible which will be an added advantage to media freedom in the country,” he said.

Lasantha in critical condition in Kalubowila hospital a few minutes before his death

Deputy British High Commissioner to Sri Lanka and Maldives Laura Davies

Davies complimented Sri Lanka’s media freedom and said there is no freedom more worth defending than Freedom of Expression.

“It is the rock on which most other freedoms are built, and from which they are defended. Investigative journalism is at the cutting edge of freedom of expression. At its best, it doesn’t just report events, but takes pains to uncover truths that are profoundly in the public interest,” Davies stated.

Speaking further, Davies said that the Inquirer awards ceremony held on April 30 with media personalities clearly reflects how much Sri Lanka’s media environment has moved on over the last 18 months or so. According to her, the last awards ceremony was held in 2014 under very different circumstances, with only the winners and the High Commissioner meeting in a private room, with no cameras and certainly no publicity. This change is reflected in Sri Lanka’s upward jump to 24th place in the 2016 Reporters Sans Frontiers press freedom index.

Sukumar Rockwood, Chief Executive Officer, Press Complaints Commission of Sri Lanka (PCCSL)

Rockwood says giving journalists the freedom to investigate, criticize politicians and their policies and expose shortcomings is part of the good governance administration.

He  said the Code of Professional Practice of The Editors’ Guild of Sri Lanka, which the PCCSL helps to implement, focuses on accuracy in reporting and advocates the importance of professional integrity as integral steps towards making media personalities hold responsibility and be sensitive to the needs and expectations of its readers.

“Media Freedom and Social Responsibility are the cornerstones of the PCCSL. Journalists must strive to work in the interest of the public, unfettered by improper pressure, or by narrow self-interest, which conspires against press freedom,” he said.

Rev. Shantha Sagara, Editor, Gnanartha Prdeepaya Newspaper

Rev. Sagara sees no threat to media freedom under the present administration and added that both politicians and journalists have to take the responsibility equally.

“I won’t agree with anyone that says this government too has not given media freedom. That is incorrect. Compared to the previous regime, I have seen how journalists have criticized the President, the Prime Minister and ministers without any fear.

However, this media freedom does not give journalists a license to be biased and report news irresponsibly; they have to be impartial which would be beneficial to the people of this country,” Rev. Sagara said.

Victor Ivan, Veteran Journalist

According to senior journalist Victor Ivan, as much as the print and electronic media have the right to criticize the conduct of the government, they too has a right to criticize the conduct of the media. However, he said that when governments criticize the media, the weight of it depends on the portfolio the person who criticizes holds. “There might be issues regarding the manner Prime Minister Ranil Wickremasinghe expressed his views. But my view is that there was some fairness in the issues that were raised by the Prime Minister in parliament. There are many instances where the Sri Lankan media has behaved irresponsibly. Our journalists do not follow journalistic ethics.

C Dodawatta, Secretary, Free Media Movement

According to the Secretary of the Free Media Movement, just as journalists criticize the government and its administrators, the administrators too should have the freedom to criticize media personnel and media institutions but they should refrain from threatening them.

“As the Free Media Movement, anyone should have the freedom to criticize others but not to threaten each other,” Dodawatte said.

Sampath Deshapriya, Editor, Daily Lakbima Newspaper

Relating to recent comments and statements made by Prime Minister Ranil Wickremesinghe, Sampath Deshapriya said that such criticism cannot be accepted.

“The Prime Minister or any other person in the country has a right to make comments in regard to news articles but as the Prime Minister of this country who has spoken against media suppression when in opposition, the way certain criticisms were made is surprising.

Such criticism cannot be accepted. The way good governance rulers promised media freedom, and the way they are now behaving is conflicting and requires clarification,” Deshapriya said.

Deshapriya further said that the Prime Minister’s comments in parliament give his own interpretation of media freedom and added that it shows in which direction the good governance administration too is heading. “This is not a good sign. The comments the Prime Minister made in parliament are a threat to media freedom. From these comments it can be deduced that the government is trying to control the media. However, it is too early to say that.

I can see how media institutions are suffering silently. I cannot see why editors are remaining silent instead of taking this up,” Deshapriya claimed.

Whereabouts of Eknaligoda yet to be revealed

“It has come to light to confirm that Eknaligoda was murdered and thrown to the deep seas off Trincomalee on the directives of Gotabhaya Rajapaksa.

The investigations into the disappearance of Senior Journalist Prageeth Eknaligoda now confirm the alleged involvement of Rajapaksa regime higher officials. Eknaligoda was made disappeared two days before the 2010 presidential election which has now come to light following the arrest of former LTTE cadre, Sudha, who was taken into custody for the killing of former UNP parliamentarian, Nadaraja Raviraj. Following this, the CID arrested 11 suspects in connection with the Eknaligoda abduction on evidence unraveled during Sudha’s interrogation.

It was on Sudha’s information that two former LTTE cadres were arrested, who later revealed who was behind Eknaligoda’s disappearance. It is also said that these two, Sumathipala Suresh Kumar and Sathya Master, were attached to the LTTE intelligence unit, and it was on their information, Sergeant Major Ranbanda who was attached to the army intelligence unit was arrested in Kurunegala. This was followed with the arrest of two Colonels attached to the army intelligence unit and seven others were taken in to custody.

The two LTTE intelligence cardres were attached to the Karuna faction, and it was they who have abducted Eknaligoda from Rajagiriya on January 24, 2010 and had dropped him off at Giritale camp, and is alleged to have drowned Eknaligoda in the seas off Trincomalee.

Amongst the arrested are Lieutenant Colonel Kumararatne who was in charge of the Giritale army camp, Lieutenant Colonel Siriwardena, Staff Sergeant Rajapakse and Corporal Jayalath.

According to Sergeant Major Ranbanda, who was attached to the Giritale Camp at the time, Eknaligoda was brought for interrogation and after a rigorous interrogation by Major Jagath Wijesuriya, Eknaligoda had been taken away and he (Ranbanda) had not seen the journalist thereafter. He has further confessed as to how a Colonel attached to the same army camp was aware of Eknaligoda’s fate.

Major Jagath Wijesuriya who was in charge of the Girithale camp where Eknaligoda was brought and questioned was later promoted to the rank of Major General by then Defence Secretary Gotabhaya Rajapaksa although there were allegations levelled against him (Wijesuriya) for a cattle theft. This promotion is said to have been given because of the friendship the then Defence Secretary had with Wijesuriya.

It is also learnt, Lieutenant Colonel Shammi Kumara Ratnayake is also accused of being in the operation to abduct Eknaligoda where the latter was taken to his personal agricultural farm in Sigiriya and later to the army intelligence headquarters at Giritale in the Polonnaruwa District. It is alleged that Eknaligoda was rigorously interrogated by Lt. Col. Ratnayake and his staff for several days before his fate was decided. (NK)

No breakthrough in Lasantha’s murder

by Nirmala Kannangara

The Sunday Leader newspaper faced a horrifying start in the year 2009 as its founding Editor Lasantha Manilal Wickrematunge was brutally murdered on January 8 because he was one of the staunchest critics of the then President Mahinda Rajapaksa and his government.

Two days before Wickrematunge was assassinated, an arson attack was carried out on MTV/MBC network in Depanama, Pannipitiya. Following these two incidents, Rivira Editor Upali Tennakoon and his wife was assaulted causing them injuries. In 2007 Deputy Editor and Defence Columnist of The Nation newspaper Keith Noyahr was abducted and assaulted allegedly for insightful reporting on the conflict. So many other journalists also came under physical attack during the Rajapaksa regime.Wickrematunge, was a vocal critic of abuse of power and corruption of the then government, and was subjected to intimidation on several occasions. The newspaper was once sealed followed by continuous bomb attacks on the press to stop him from carrying out investigative reporting on nepotism, corruption and abuse of power in the country. It was not a secret that The Sunday Leader under Wickrematunge became the biggest threat to Rajapaksa regime which was plagued with nepotism, corruption and frauds and exposed all corruption and fraud one after another.A few months ago, the Police Headquarters released a draft sketch of two suspects of Wickrematunge’s murderers seeking public assistance to make a breakthrough.According to the police, the sketches were drawn based on the statements given by witnesses. With the much anticipated investigation is now underway, there are new hopes that the Police Department would bring the murderers and those who gave instructions for the killing to book very soon irrespective of their statuses or their political affiliations.

Meanwhile, former Inspector General of Police (IGP) Jayantha Wickremaratne was interrogated by the Criminal Investigation Department (CID) for concealing evidence related to Wickrematunge’s murder. The CID also questioned former TID Chief, ASP, Prasanna Alwis and few more TID officers to find out as to why the military intelligence personnel that were taken into custody for the Wickrematunge’s murder were released. However the investigators are yet to question then Defence Spokesman MP, Keheliya Rambukwella. Three weeks after The Sunday Leader Editor’s death, Rambukwella at a media briefing said he and then President Mahinda Rajapaksa is aware of the identity of the murderers and that Rajapaksa would make the facts known on February 15, 2009. Neither Rajapaksa nor Rambukwella revealed the names of the killers as promised.

“No one with genuine intentions will oppose the Right To Information Bill”

Gayantha Karunathilake, Media Minister

“Media Minister Gayantha Karunathilaka said that media freedom prevails in the country and the government’s move to bring the Right to Information Bill has now faced a setback after last week’s Supreme Court ruling.

“The Supreme Court has laid down its ruling on the Right to Information Bill. Accordingly, we have to wait to get this sorted out. If it requires the support of the majority in parliament then we will move to do so. No one with genuine intentions would oppose this bill. However, when it comes to information relating to national security and personal information there are limitations. This bill is going to be very important to the media,” Karunathilake said.

Speaking on the Press Complaints Board, the Minister said that any person can lodge a complaint to the Press Complaints Board against any newspaper article.

“There is media freedom in the country today which cannot be refuted. During the previous regime, even the cartoonists came under threat and were barred from drawing cartoons of certain individuals. But today, the cartoons criticize not only the President, the Prime Minister and the ministers but even the Media Secretary as well. Under the pretext of media freedom, false information is circulated; I cannot understand why some media organisations are hell bent on getting the previous regime back to power knowing full well how they had to suffer at the hands of the previous rulers,” Karunathilaka added.

According to Minister Karunathilake, the Broadcasting Authority Bill will be able to maintain broadcasting standards in the country.

Subramaniyam Sugirdharajan (Sugitharajah), a journalist attached to the Sudar Oli newspaper, was shot dead in Trincomalee near the governor’s secretariat on 24 January 2006. Sugirdharajan had provided photographic evidence to the media of the murder of five students by Sri Lankan security forces. The day before his death, Sugirdharajan had written an article in the Sudar Oli exposing abuses committed by the EPDP, a government backed paramilitary group, in the Trincomalee area.

Suresh Kumar (B. G. Sahayathasan) and Ranjith Kumar, two employees of the Uthayan newspaper, were killed on 2 May 2006 when armed men burst into the newspaper’s offices and opened fire indiscriminately. The attack followed the newspaper publishing a cartoon mocking Douglas Devananda, the leader of the EPDP.

On the night of  July 1, 2006 Sampath Lakmal de Silva, a freelance journalist working for Sathdina was abducted and his body found in Dehiwala the following day. He had been shot three times in the head and once in the chest. De Silva had written several articles critical of all sides, including corruption in the military intelligence unit and financial irregularities and internal disputes in the Janatha Vimukthi Peramuna and Jathika Hela Urumaya. Several people, including military personnel, were questioned about de Silva’s murder but no action was taken against them.

S. Sivamaharajah, the publisher of the Namathu Eelanadu newspaper was shot dead at his house in Tellippalai on  August 20, 2006. Namathu Eelanadu was considered to be pro-LTTE and Sivamaharajah was a member of the Tamil National Alliance, a political alliance with links to the LTTE. Sivamaharajah’s house was inside the Valikamam North High Security Zone controlled by the Sri Lankan military and there was a curfew at the time.

Chandrabose Suthaharan (Subash Chandrabhose), Editor of Nilam magazine was shot dead at his residence in Thirunavatkulam near Vavuniya on April 16, 2007. His home was inside government controlled territory.

Selvarajah Rajivarnam, a journalist for Uthayan was shot dead in Jaffna close to a military checkpoint on April 29, 2007. The EPDP, a government backed paramilitary group, was blamed for Rajivarnam’s murder.

Sahadevan Nilakshan (Sahathevan Deluxshan), Editor of the student-run Chaalaram magazine, was shot dead outside his house in Kokkuvil on August 1, 2007. The killing occurred inside an area controlled by the Sri Lankan military, and there was a curfew at the time of the murder.

Isaivizhi Chempiyan (Subajini), a broadcaster on the Voice of Tigers radio station, and technicians Suresh Linbiyo and T. Tharmalingam were killed when the Sri Lanka Air Force dropped dozens of bombs on the station in Thiruvaiaru near Kilinochchi on November27, 2007. The bombing occurred shortly before the station was to broadcast LTTE leader Velupillai Prabhakaran’s annual policy address.

P. Devakumaran, a journalist for News First, was hacked to death in Navanthurai near Jaffna on May 28, 2008. Devakumaran is believed to have been murdered by the LTTE after he criticised the LTTE in his reports.

Rashmi Mohamed, a journalist for Sirasa TV, was killed by a suicide bombing at the opening of a new United National Party office in Anuradhapura on October 6, 2008. The bombing was aimed at Major General Janaka Perera and is believed to have been the work of the LTTE.

Lasantha Wickrematunge, Editor of The Sunday Leader newspaper was shot dead on January 8, 2009 in Colombo. Three days later an editorial appeared in The Sunday Leader written by Wickrematunge in which he predicted his own murder, stating “it will be the government that kills me”. Wickrematunge had been highly critical of the government and he had been attacked before. He had been assaulted twice before and his house sprayed with machine-gun fire. A number of people including 17 army personnel were arrested in relation to Wickrematunge’s murder but later released. To date, no one has been brought to justice for Wickrematunge’s murder.

Puniyamoorthy Sathiyamoorthy, a freelance journalist with links to the LTTE, was killed by artillery barrage in Theavipuram near Mullaitivu on February 12, 2009.

Shoba (Isaippiriyaa), a broadcaster on the LTTE’s O’liveechchu programme, was raped and murdered by Sri Lankan soldiers in Mullivaikkal near Mullaitivu in May, 2009.

• How a blacklisted airline licence holder was permitted to run an international cargo operation from Sri Lanka

by Nirmala Kannangara

Rescue workers look for victims trapped under the wreckage of Antanov-12 cargo plane that crashed on March 24, 2000. Photo:AFP

Following our exposé  a few weeks ago titled ‘How Civil Aviation May Have Landed Itself In Big Trouble’where the Director General Civil Aviation Authority of Sri Lanka (CAASL) was accused of not taking action against Mihin Lanka for violating international flight regulations which compromised international safety standards, new details have now come to light that he (Director General) had allegedly authorised an illegal wet lease aircraft to run an international cargo operation from Sri Lanka without meeting the mandatory requirements.

CAASL Director General H.M.C. Nimalsiri has come under fire for his alleged failure to adhere to international safety standards, for alleged fraud at the Civil Aviation Authority and for violating the Chicago Convention which could now lead to CAASL and its registered aircraft being blacklisted.

This newspaper is in receipt of documents to substantiate all alleged frauds that had taken place at CAASL under Nimalsiri’s administration which will be exposed in weeks to come. This week we expose how a blacklisted airline licence holder in Sri Lanka was permitted to run an international cargo operation from Sri Lanka without following proper procedures. These alleged frauds are being highlighted by The Sunday Leader with no malice against Nimalsiri, but in standing by the principle of the people’s right to know that CAASL is violating the International Civil Aviation Authority (ICAO) rules and regulations.

Wet lease

Sky Cabs (Pvt.) Limited had made application to start a wet lease international cargo operation from Sri Lanka in late 1999 using an AN-12 Russian made aircraft supposed to have been registered in Russia. Although Sky Cabs was earlier blacklisted by the Airworthiness Division for not being airworthy and their two AN-8 aircraft grounded, Nimalsiri had granted permission to this same blacklisted company to run an international cargo operation from Sri Lanka, accepting forged Certificate of Airworthiness and Certificate of Registration without checking the authenticity of these documents from the registered country which is a compulsory requirement.

At the time this illegal authorisation was made in 1999, Nimalsiri was the Assistant Director Operations and was second in command at the Department of Civil Aviation – now CAASL. It was Nimalsiri’s prime duty to authorise wet lease operations and to sign the Memorandum of Understandings (MoU) on safety oversight functions, only after establishing direct communication with the country of registration of the aircraft, as stipulated by Section 83 of the Chicago Convention. However, Nimalsiri had no direct communication with Federal Air Transport of Russia as the aircraft in question was a Russain aircraft, nor took any steps to verify the authenticity of these documents when he knew very well that the operator in Sri Lanka, Sky Cabs (Pvt.) Limited, had been blacklisted in 1999 by the Civil Aviation Authority for operating non-airworthy aircrafts.

It was only after this particular aircraft, Russian registered Antonov AN-12 RA 11302, crashed at Kadirana in Negombo on March 24, 2000, it came to light how Nimalsiri had hoodwinked even experts of the International Civil Aviation Authority (ICAO) who were in Sri Lanka at the time this illegal permission was granted to Sky Cabs (Pvt,) Ltd.

“As the Head of Operations Division of the then Department of Civil Aviation, Nimalsiri has to take sole responsibility for giving the authorisation to Sky Cabs to operate from Sri Lanka, an aircraft that did not have the Certificate of Airworthiness, Certificate of Registration, Certificate of Insurance, or no objection certificate on wet lease operation issued by the Federal Air Transport of Russia.

In fact, Nimalsiri had gone to the extent of allowing Sky Cabs (Pvt.) Limited to operate this aircraft in March, and it operated until the crash took place although they did not have the route approval from the Civil Aviation for March 2000,” a higher official at CAASL said on condition of anonymity.

Investigation report

“It has also been revealed that the Investigation Report of the Antonov AN-12 crash submitted by Assistant Director Civil Aviation A.W.K. Senaratne on September 19, 2000 had been changed by the Civil Aviation Authority because the report had given detrimental details as to how the Operations Division which was headed by Nimalsiri had accepted the forged photocopies from the wet lease aircraft and had granted Sky Cabs to run an international cargo operation from Sri Lanka.

“The investigation was carried out by one of our former Assistant Directors and submitted to the authority. But when we go through our website, we see that the original report has been changed since it contained details that the Operations Division of the CAASL had not followed the required standard. It is certain that if not for any personal benefit, Nimalsiri would not have given permission to Sky Cabs to operate a Russian wet lease aircraft from Sri Lanka when the CAASL Airworthiness Division grounded two AN-8 Sky Cab aircraft prior to this blunder for not being airworthy and stopped their cargo operations,” sources added.

The sources further said that this situation had become worse after Nimalsiri became the Director General in 2002. He still continues in office even after 14 years. “There are many alleged frauds that Private Pilot Licences (PPL) were given by Nimalsiri to the offspring of politicians during the former regime and that examination papers were leaked out for money.

We are in receipt of all these documents to prove our allegations. We want to expose them, so the people will know that CAASL is ‘offering’ licences for money and to bring it to the notice of the good governance regime, so that immediate action against Nimalsiri will be taken,” the source alleged.

According to sources, at a periodical safety audit on CAASL by the ICAO in 1997, it came to light that CAASL had given permission to two local cargo operators – Sky Cabs (Pvt,) Limited and Expo Aviation, to operate AN-8 aircrafts registered in Liberia in Africa to operate from Sri Lanka on a wet lease. “ICAO during a periodic safety audit on the Department of Civil Aviation (DCA) found these Liberian registered aircraft having bogus registrations and ordered the DCA to blacklist them and all Sri Lankan registered aircraft because of the poor safety standard practice followed by the DCA by violating the Chicago Convention. In fear, the DCA got these AN-8 cargo aircraft to transfer their Liberian registration to DCL registry without following the proper procedure,” the sources added.

Violating Chicago Convention

As the DCA has allegedly violated Chicago Convention and was following poor safety standard practices, the ICAO commenced a project in Sri Lanka in 1998 to rectify the shortcomings on which the DCA had to spend Rs. 20 million.

“It is during this time the Airworthiness Division found out that Sky Cabs (Pvt.) Limited aircraft were running with expired spare parts and immediately grounded them and blacklisted the company. As a result, Sky Cabs got these two AN-8 aircraft deregistered from the Sri Lankan registry and flown out of the country. Although Nimalsiri knew about this deregistration and blacklisting, within a few months he once again allowed Sky Cabs Russian ‘registered’ AN- 12 aircraft to operate international cargo from Sri Lanka, once again not following the legal requirements,” the sources alleged.

It is alleged that Nimalsiri had given the approval for this illegal operation for the second time for personal benefit without considering the safety of the crew on board as well as the cargo it was carrying and even the people and their properties on the ground.

According to the sources, the AN-12 aircraft that crashed had been manufactured on October 8, 1968 and was owned by Antey Avia Company, Inzhenernaya Street 644103, Omsk, Russia and had been de-registered and its airworthiness had been removed on October 11, 1999 by FAAR (Federal Air Transport Authority Russia).

“The aircraft was owned by AnteyAvia Company and had been wet leased to Sky Cabs who were once an authorised operator in Sri Lanka. The investigation team found out that a ‘No Objection’ letter had been forwarded to the DCA by FAAR validating the aircraft wet lease agreement. In the agreement, the safety oversight had been retained by the state of registry – FAAR. The Air Operator’s Certificate (AOC) issued to AnteyAvia Company by the Russain Federal Aviation had been suspended on March 20, 2000. After the crash, when the investigation team inquired from FAAR about this aircraft, they informed the DCA on July 7, 2000 that the ‘No Objection’ certificate that had been forwarded by AnteyAvia Company through Sky Cabs (Pvt,) Limited had been forged. FAAR also informed the DCA that the registration of the crashed aircraft had been cancelled in October 1999 and that the Certificate of Airworthiness and Certificate of Registration had not been issued to AnteyAvia Company but to Elbrus Aviation Company. These two certificates had been returned to FAAR on the day of deregistration by Elbrus Aviation Company. Later AnteyAvia Company had taken photocopies of these two certificates, forged them in their name and forwarded to DCA,” the sources claimed.

On duty without a break

Meanwhile, according to the investigation report which this newspaper is in possession of, the Captain and the Co-Pilot of the crashed aircraft had been on duty for 34 hours and 10 minutes without having a legal rest period before it crashed at Kadirana. It was revealed that both Captain and Co-Pilot had flown four sectors between Colombo-Bangkok- Colombo, totaling 24 hours and 25 minute flight time during this 34 hours and 10 minute period. It had also been revealed that both Captain and Co-Pilot had done 155 hours and 45 minutes of flight hours during their last 30 days.

“It is illegal for a Captain or a Co-Pilot to fly an aircraft for 24 hours at a stretch. The maximum period they can fly is eight hours within a 24-hour period. In this instance, the Captain and the Co-Pilot together with the other crew on board had been in the aircraft for 34 hours and 10 minutes – including the flying hours and the time taken to load and unload the cargo. According to the report, these two have done 155 hours and 45 minutes during their last 30 days which too was a serious offence. Neither a Captain nor a Co-Pilot can exceed 90 flight hours for 30 days,” the sources added.

Meanwhile, it has also been revealed that this aircraft had taken off from Bangkok on this fateful day with more than the maximum take-off weight.

“According to the flight manual of the aircraft, the maximum take-off weight was 61,000 kg. But the weight of the aircraft at departure from Bangkok was 62,804kg. The fuel on board at departure was 14,981kg and the weight of cargo was 13,428 kg.

Instead of carrying enough fuel to divert the aircraft to an alternate airport in the case if there was an issue at the landing destination, this aircraft had opted to bring more cargo instead of fuel. The aircraft had not complied with the international fuel requirements as per ICAO.

Sky Cabs were looking to gain more revenue by allowing the crew members to fly with less fuel and more cargo. Had Nimalsiri given the authorisation to a legal airline licence holder accepting original documentations, such a crash would never have happened,” the sources claimed.

However, refuting allegations Director General CAASL H.M.C. Nimalsiri said that it was not his responsibility to accept the Certificates of Airworthiness and Registration but the Assistant Director (Airworthiness Division) A.W.K. Senaratne’s. “You are talking about an investigation report done by Senaratne, but it is not the official report.  But I consider the gazette notification as the official report. How can Senaratne state in the report that it was my responsibility to check these documents? It is the Airworthiness Division that has to go through these documents. I was in charge of the Operations Division, and it is I who gave the Air Operation Certificate (AOC) to Sky Cabs. Before issuing the AOC, I went through the originals of Airworthiness and Registration Certificates,” Nimalsiri said. When asked whether he was sure that Certificates of Airworthiness and Registration Certificates were originals as Senaratne Investigation report states that they were all forged documents, Nimlsiri said that he as a responsible officer would know the difference between a forge document and an original document.

“All the certificates that Sky Cabs had submitted were originals, not forged ones. How can Senaratne says that he did the investigation, as he left the Department before the completion of the investigation and compilation of the official final report?” Nimalsiri queried.

Although Nimalsiri vehemently refused to accept that the Airworthiness and Registration Certificates that he accepted were forged documents, the gazette notification to which Nimalsiri referred to as the correct final report, (page 22A of the gazette notification No: 1302/36 of August 2003), clearly states that the aircraft in question did not have a valid Certificates of Airworthiness and Registration and Sky Cabs have produced photocopies of these documents to the Civil Aviation which were forged documents. Meanwhile, the then Assistant Director (Airworthiness Division) A.W.K. Senaratne who conducted the AN-12 crash investigation, when contacted said that he submitted the investigation report to the then DG L. Liyanarachchi and he accepted the same. “After my retirement and that of the then DG’s, Nimalsiri who assumed duties as the DG had changed most parts of my report which were detrimental to him.

How can Nimalsiri say that it was my duty to check the Sky Cabs documents? It was my duty to check the documents related to all Sri Lankan registered aircrafts. But since this AN-12 was a wet lease aircraft, it was Nimalsiri’s duty to check the authenticity of the certificates of such aircrafts. If Nimalsiri does not know the rules and regulations, how can he serve as the DG at CAASL? This itself shows how ‘qualified’ Nimalsiri is to hold that post now. It is up to the Subject Minister to look into credentials of Nimalsiri and decide whether he is competent enough to hold the post,” Senaratne said.

by Nirmala Kannangara

Director General, Civil Aviation Authority of Sri Lanka (CAASL) continues to be in the public eye, aligning himself as he does, with  successive governments in order to safeguard his position. This is despite the numerous malpractices he has allegedly been involved in over the years.

It is surprising indeed that the good governance administration which came into power 17 months ago promising to take action against all state officials who misappropriate public funds and give relief to the general public, has so far failed to take action against CAASL which continuous to be a den of corruption. Despite the assurances given, the present government too has allowed the same old shady state officials to continue in corruption and in some instances given them more facilities to misappropriate public funds in the guise of providing ‘better services’ to the industry.

Following our continuous exposes on alleged malpractices taking place at the CAASL, it has now been revealed how its Director General had allegedly hoodwinked the Department of Management Services of the General Treasury during the latter part of the previous regime to get a new post created at the Authority specially for the then subject minister’s offspring. This he saw as a means by which he could gain immunity from being investigated for the malpractices he was engaged in, at the expense of public money.

In order to safeguard his position at CAASL and to be in the good books of the then Aviation Minister Priyankara Jayaratne, Director General H.M.C. Nimalsiri allegedly deceived the Department of Management Services in order to get the minister’s daughter, Sachini Nayanathara Jayaratne, employed at CAASL as the International Relationship Officer.  The latter did not possess any prerequisite qualifications nor the basic qualification CAASL looked for, to hold such a responsible position. Nimalsiri had got the Jayaratne sibling recruited without following the scheme of recruitment (SOR).

Although there wasn’t any need for such a post to be created at CAASL, Nimalsiri and the then Ministry Secretary had showed undue urgency to recruit an International Relationship Officer at Civil Aviation to facilitate bilateral agreements with foreign airlines.

“Nimalsiri showed the importance of having an International Relationship Officer at Civil Aviation and got the post approved by the Management Services Department although such a post was not necessary for CAASL. Such a post could only be necessary to Sri Lankan Airlines, our national career, which always holds bilateral negotiations with foreign airlines and finalises bilateral agreements which is not the subject of the Civil Aviation Authority. The sole responsibility of the Civil Aviation Authority is to monitor the air safety standards but not to facilitate bilateral agreements or any other work related to the national carrier. It is the national carrier that drafts bilateral agreements and sends these for approval by the Attorney General before the agreement is signed. In such a backdrop, what made Nimalsiri and the then Ministry Secretary mislead the Department of Management Services seeking its approval for a post that is not relevant to this Authority?” reliable CAASL sources who wished to remain anonymous told The Sunday Leader.

All attempts to get a comment from the Department of Management Services to find out as to why approval was granted for a post that was not required for CAASL and what action they could take against Nimalsiri for deceiving them, failed as none of the officials wished to make any comment.

However, although Nimalsiri showed urgency to get the International Relationship Officer’s services for CAASL, it is surprising indeed  how flexible the CAASL Director General was as he allowed the selected candidate to discharge the duties of the post from home without reporting for duty even for few minutes. There are no records at CAASL to show that the International Relationship Officer has attended any of the bilateral negotiations that had taken place during her tenure from December 1, 2013 until the fall of the previous regime,” the sources claimed.

According to the sources, although CAASL’s request was to create two posts for the said position, the Department of Management Services through circular no: 30(1) had given approval only to have one post under MA3-2016A salary scale.

“According to the circular, although the recruitment and promotions should be carried out according to the scheme of recruitment, the Civil Aviation Authority had disregarded the recruitment instructions given by the Department of Management Services but recruited the candidate of their wish without following the scheme of recruitment,” sources alleged.

There is speculation as to why Nimalsiri wanted to create two International Relationship Officer posts although there wasn’t need even for one post at CAASL

“What Nimalsiri would have wanted was to employ a qualified candidate together with the minister’s daughter and get the work from the qualified candidate, so no one would know that she was not competent to discharge her duties. Failing to get two posts created, Nimalsiri had no other option but to offer the job to the minister’s offspring,” sources added.

Meanwhile, the government audit report states how CAASL failed to follow the scheme of recruitment and obtained only one application which was from Sachini Nayanathara Jayaratne, daughter of the subject minister, on November 18, 2013 and interviewed her on the same day and was recruited on casual basis from December 1, 2013, two weeks before the Department of Management Services granted their approval.

“Although Nimalsiri made the request to the Department of Management Services to create the post of International Relationship Officer, this post has to be created for the national carrier as it is the national carrier and not the Civil Aviation Department that signs bilateral agreements with other airlines. Nimalsiri got the approval to create such a post on December 13, 2013; however CAASL Board meeting records shows that the Board of Directors had given their approval for Nimalsiri’s request for this post at their 98^th Board Meeting held on October 10, 2013,” sources alleged.

According to the sources, although the selected candidate should be conversant in aviation law, Jayaratne junior did not have any qualification in aviation law but merely a foreign degree in Human Resources Management and had not followed any course in international affairs.

“All those who are recruited to CAASL cardre should possess a credit pass in mathematics but in Jayaratne’s case she had only an ordinary pass for mathematics,” sources claimed.

Although Nimalsiri urgently wanted to get the post in question created with the Management Services Department’s approval and got the post filled with the minister’s daughter, on the request of Aviation Minister Priyankara Jayaratne, the CAASL’s International Relationship Officer was positioned to the Civil Aviation Ministry on December 23, 2013.

“After this employees was positioned at the ministry well before one month from the time she was hurriedly recruited, Nimalsiri did not take any action to fill the much needed vacant post. Since then thirty months had passed but Nimalsiri’s failure to appoint another International Relationship Officer to handle bilateral negotiations or agreements of the CAASL clearly shows that there was no necessity to get such a post created. Nimasiri purposely duped the higher officials at the Department of Management Services to get personal benefits from the then Aviation Minister,” sources alleged.

According to the audit report Ref. No: AVA/ A/ CAASL/ 2016/ 02 dated March 23, 2016, this International Relationship Officer had not carried out a single day’s work since she was recruited on December 1, 2013 and there was no proof that she had ever reported for duty according to the attendance registry. However, from December 1, 2013 up to December 31, 2014, she had been paid Rs. 609,560 as her remuneration for thirteen months by CAASL. Although she had been recruited as a casual worker for a basic salary of Rs. 15,600 plus allowances she had also fraudulently been paid a travelling allowance of Rs. 20,000 by the Civil Aviation Authority.

The report has also revealed how the Civil Aviation Ministry Additional Secretary R.M.P.S. Ratnayake had given this employee a separate attendance book to mark her daily attendance although she has had to sign her attendance in the company registry.

“Since she was not attached to the minister’s personal staff, she too had to mark her attendance like the other employees, but since there wasn’t a need for her to report for duty neither Nimalsiri nor the Ministry Additional Secretary wanted her to mark her attendance in the common registry but in a special ‘book’ which was in her possession,” sources alleged.

All attempts to contact Director General Civil Aviation Authority, H.M.C. Nimalsiri failed as he did not answer our calls.

Although a text message was sent on Thursday requesting Nimalsiri’s comment as to why he duped the Department of Management Services to employee the minister’s offspring, Nimalsiri had not responded to the message at the time of going to press.

• Field Marshal Sarath Fonseka is among those racking up multi-million rupee rental bills while office space in government-owned Suhurupaya remains empty

by Nirmala Kannangara

Astonishing revelations have confirmed how the national government formed to wipe out unnecessary expenses in government institutions is now spending millions of public money to rent out office buildings for its ministers.

It is surprising to note that the cabinet of ministers has granted approvals to ministers to rent-out office space from private parties when there are 16 vacant floors which can be used for ministries and other government departments at the newly built Suhurupaya in Battaramulla which is a government building.

In February this year, the cabinet gave its approval to a proposal presented by Prime Minister Ranil Wickremesinghe to allocate Agriculture Minister Duminda Dissanayake a building in Rajagiriya to house the Agriculture Ministry at a rate of a staggering Rs. 21 million per month and two months later in April, the same cabinet had given its approval to Minister of Regional Development, Field Marshal Sarath Fonseka to rent out a building for a sum of over Rs. 10 million per month including VAT.

Despite the government’s continuous claim that the value added tax (VAT) had to be increased to beef up the cash-strapped national coffers due to heavy loan installments and interest the country has had to pay, it is indeed baffling to see the government giving free rein to its ministers to rent out office spaces that cost the public dearly.Minister Fonseka had submitted a cabinet memorandum (No: 16/ 0617/ 754/ 001/ TBR) on April 1, 2016 to which cabinet approval had been granted on April 6, 2016 to rent out 49,556 square feet at Sino Tower building at No: 1090 Sri Jayawardenapura Mawatha, Rajagiriya owned by Sino-Lanka Properties (Private) Limited at a rate of Rs.163.20 per sq. ft. and another Rs. 30.60 per sq.ft as service charge on a five year lease agreement.

Accordingly, the monthly rental for the proposed 49,556 sq ft Regional Development Ministry office comes to an astounding Rs. 9,603,952.80 (Rs. 9.603 million) plus VAT which will be more than Rs.10 million per month.

In addition, cabinet had also granted approval to pay Sino-Lanka Properties owned by B. W. Kundanmal a twenty four month lease rental as an advance which comes to Rs.194,100,940.80 (Rs. 194 million) plus VAT which will be almost Rs. 200 million. This will be deducted from the monthly rental at the end of the lease agreement. Cabinet had also granted approval to pay six months rental as a refundable security deposit of Rs.48,525, 235.20 (Rs.48.525 million) plus VAT and also to get all these payable money remitted to the Regional Development Ministry from the national treasury.

Following this cabinet approval, questions have been raised as to whether the cabinet got a government valuer to value the sq ft rental or whether it was agreed to pay what the minister quoted.

The Prime Minister’s proposal for the Agriculture Ministry’s building was to be one in Rajagiriya and the quoted value was Rs.165.50 per sq. ft. and another Rs. 60.50 per sq. ft. as service charges, the government valuation was Rs.150 per sq. ft. However still, the Prime Minister’s proposal received cabinet approval to pay Rs. 227 per sq. ft. including service charges to the selected building at Rajagiriya. It is still unknown whether cabinet got a government valuation for Sino Tower building or granted approval for the price Minister Fonseka has quoted.

Although the Technical Evaluation Committee and the Government Procurement Board appointed by the cabinet had not recommended to pay Rs. 245, 846.52 plus VAT for 85% out of 9452 sq. ft. common area at a rate of Rs. 30.60 per sq. ft. and 24 month service advance of Rs. 42, 294,242.88 (Rs.42.294 million), Minister Fonseka in a cabinet memorandum dated April 19, 2016 had once again made a request to the cabinet to grant approval to the said bid. In addition Minister Fonseka had further made a request for permission to amend the rental and service charges by increasing 15% once every two years.

In a letter dated April 18, 2016 by Sino-Lanka Properties Chairman B. W. Kundanmal to the Secretary, Ministry of Regional Development he had reiterated the request for service charges for the common area and the 24 month service charge advance.

The letter states: ‘We have undertaken the responsibility to maintain the several common areas and to provide a series of services covered by the service charges in our letter dated March 21, 2106. In light of the fact that the government of Sri Lanka will be leasing 85% of the demised premises, payment of service charge for 85% of the common area in addition to exclusively rented areas is justifiable. Our quotation includes an advance payment of 24 months of service charges exclusive of VAT and NBT based on the service charges for the first two years and this advance is to be set off against the service charges payable for the last two years of the lease.’

Meanwhile, highly reliable senior government audit officer from the Auditor General’s Department on condition of anonymity said that although the cabinet of ministers assumes that the decisions taken at cabinet meetings cannot be audited, the Auditor General has been vested with powers to audit the decisions taken by the cabinet of ministers.

The sources said that it is questionable as to why the cabinet did not ask these ministers to follow the government procurement guidelines and call for quotations to rent out buildings for a lesser amount.

“These politicians are sent to the legislature not to play out public money but to make full use of the funds lying in the treasury and give relief to the people. The building leased out for the Agriculture Ministry in Rajagiriya is a super luxury building but there are not enough parking spaces and no facility for the disabled. The Agriculture Ministry is meant for the farmers in the country and if there are no proper access facilities for the disabled, then what is the use of getting a building with no facilities for the farmers?” sources queried.

The sources meanwhile said that the government audit officers have already sent an audit query in regard to the high rental when the government valuation was much less.“When this was taken up at COPE on April seven, MP Bimal Ratnayake said that this was a scam and wanted the ministry secretary to review this immediately. However the agreement was signed the following day without considering the COPE recommendation. The ministry had already paid a two year advance of Rs. 504 million at a rate of Rs. 21 million per month for this building. They have also paid Rs. 21 million each for the months of April and May although the ministry is yet to move to the building. We are in receipt of the letters the owner of the building, D. P. Jayasinghe sent to the ministry quoting their prices which had been submitted to the cabinet without changing even one letter. This shows the government’s duplicity. The government claims that the former regime left an empty treasury for them and the economy is in the doldrums. Having said that and increasing the VAT andputting more burden on the people, the government is allowing the ministers to play out public money which is a daylight robbery,” sources claimed.

According to the sources, of the 18 floors only two floors of the newly built Suhurupaya at Sri Subuthi Road, Battaramulla have been occupied by the Ministry of Megapolis and Western Development. Sources queried as to why the good governance administration cannot instruct its ministers to move to this building instead of making private parties richer.

“If the Agriculture Ministry and Regional Development Ministry can be housed at Suhurupaya which is a few kilometres away from where these two ministries are to be located, several millions of rupees of public money could have been saved,” sources added.

Although a message was left with Regional Development Minister Field Marshal Sarath Fonseka’s Media Secretary Mahinda Kumara seeking a comment from the minister, Minister Fonseka had not responded to the call at the time of going to press. Although a text message was sent to former Aviation Minister Priyankara Jayaratne for a comment, he did not respond to the message.

• It is indeed mind-boggling to note how the Bank of Ceylon disregarded the trust placed in them and violated standard banking protocol by responding to a scam e-mail originating from Nigeria

by Nirmala Kannangara

Following a fraudulent third party wire transfer carried out by Bank of Ceylon (BoC) leaving the account holder in total darkness, questions have now been raised as to how safe it is to maintain a bank account with BoC and what assurance this bank can give its depositors that their money is safe with them.

Subsequent to the revelations of how BoC had obeyed and acted on a fraudulent e-mail request for a wire transfer amounting to US$ 750,000 from a SFIDA FD account, it has now come to light how the BoC clearly violated standard banking protocols and norms by acting purely on e-mail instructions.

BOC had called a mobile number provided by the Nigerian fraudster by e-mail but it had never been answered. Criminal Investigation Department (CID) investigations have revealed the mobile number was registered under a one Ejike Henry Egwim, a Nigerian national. Although it is standard banking practice that if a call back to the number given cannot be contacted, a wire transfer should not be carried out, BoC had not followed the basic rudimentary protocols. As a result, the client has instigated legal action against the bank to recover his money, due interest and compensation running into more than Rs. 350 million.

After this illegal and fraudulent wire transfer in January 2014, the account holder who is domiciled in Canada, had made several requests to the bank to get his defrauded money remitted to his account together with the due interest paid.

The bank however had declined claiming that there are no reasons to suspect this transaction and that they had acted with due diligence and care in effecting the transaction. The account holder instigated a law suit in the Colombo District Court.

Although initially the bank had refused to comply with the depositor’s request, following the release of the investigation report conducted by the CID which reveals that the account holder was not directly or indirectly involved in this fraud, it is understood that the BoC has verbally offered to settle the matter out of courts.

According to the CID report, the bank officers’ inattentiveness, irresponsibility, lack of supervision from high ranking officials, not being updated on modern technology and violation of banking practices had resulted in them being caught to a third party’s bait.

However, the account holder now claims that he is not willing to accept only the deposit money and the due interest but that he also needs to be compensated for costs and damages.

Legal expemses

Manohar Alexander says he has spent millions of rupees in legal expenses, on air tickets to travel up and down to Colombo from Canada and incurred multiple other expenses. Following this situation, it is alleged that the Attorney General’s Department, who looked after the BoC interests in the lawsuit, has now refused to appear on their behalf, and the bank has now sought private lawyers to appear for them.

Manohar Alexander, although domiciled in Canada, had deposited his hard earned money in two separate accounts, a US Dollar Fixed Deposit (SFIDA account No. 0073775973) and Sri Lankan Rupee Fixed Deposit (account No. 0073032896). It is indeed mind-boggling to note how the bank disregarded the trust placed in them and violated standard banking protocol by accepting a scam e-mail originating from Lagos, Nigeria which gave instructions to wire-transfer Alexander’s dollar account funds to an account in the United States which was heeded by the bank on January 1, 2014.

Alexander had deposited US $ 750,000 on September 14, 2012 in a FD for three years at an interest rate of 5.5 % per annum while in the Sri Lankan Rupee FD account he had a balance of Rs. 34,467,825  (closer to Rs. 35 million) which by March 14, 2013 got renewed for a further one year with an interest rate of 15% per annum.

Since Alexander was living abroad he had obtained e-banking facilities from BoC to check his bank details online which helped him to discover the wire transfer.

Speaking from Canada, Alexander told The Sunday Leader that he had been in Dubai when he opened these two accounts and when he moved to Canada in early 2013, he had duly provided his new contact numbers and postal address to the BoC.

“I gave my Canadian address to BoC on March 18, 2013 and the contact number on October 23, 2013 and once again on December 27, 2013. When I wanted to check my bank account details in mid-October 2013, I could not log on to the site, hence, I sent an application to BoC Colombo requesting them to reset my e-banking password. Although I filled and sent the e-banking application to reset the password enclosed with my contact details on December 27, 2013, the bank sent me the online password on January 30, 2014. When I got the password, I checked my account details on January 31, 2014 and was shocked to find that both my USD FD and LKR Fixed Deposit details were not shown. I immediately contacted the BoC representative in Colombo to find out the reason why I could not get my account details online to which he informed me that they had wired my USD FD money to a USA bank and the LKR Fixed Deposit money was in the process of being transferred to a bank in Johannesburg, South Africa. Acting immediately on the information I managed to stop the LKR FD money being transferred,” Alexander added.

Failing to understand why his funds lying in the USD FD account had been wired without his knowledge, Alexander, not only spoke to multiple BoC senior managers but also sent them letters seeking their explanation as to how his USD FD fund was wire transferred and on whose instructions it was made and to whose account.

“In a letter dated February 4, 2014, I wrote to the bank demanding my USD FD funds be reinstated with accrued interest. In a letter dated February 6, 2014, the bank responded stating: ‘As per our records, there are no reasons to suspect this transaction and the bank had with due diligence and care, and had acted bona fide in effecting the transaction.’

Since the bank did not want to rectify the wrongful act they had committed, I had to send my mother to Colombo at my expense to take action against the bank as I was not in a position to leave Canada without running a real risk of irreversibly jeopardising my pending permanent residency visa status in Canada,” Alexander claimed. Alexander’s mother after arriving Sri Lanka, on her son’s instructions had lodged a complaint with the CID.

“Following the complaint to the CID, I was compelled to file a case in the District Court of Colombo (Case No. DMR 2608/2014) seeking my initial deposit in the USD SFIDA FD account amounting to US $ 750,000 and further a sum of US $125,468.75 being the interest component that I am entitled to,” Alexander said.

Meanwhile, on August 21, 2015 a comprehensive 18 page CID investigation report was released which has revealed that this money had been transferred to Aegis Capital Enterprises at 4012, South Rainbow Boulevard, Suite K 460, Las Vegas, Nevada, USA (Ac. No. 501015392626) on January 2, 2014 and from US, it had later been transferred to China Merchants Bank at 7088, Shennan Blud, Shen Zen, China and the account holder was Hero Quickly International Co. Ltd. (Ac. No. OSA 755914690832201). The CID report has further stated that according to the evidence they have unearthed, the plaintiff of the case (account holder) was not involved in the fraudulent transaction and the bank had acted inattentively, irresponsibly, without due care and in violation of general banking protocols and norms. The CID report has further stated how the BoC used an unsecure e-mail address boc.rep2uae@yahoo.com to correspond with account holders in UAE and although the account holder has never corresponded e-mails from his personal email address, manoharalexander@yahoo.com to the BoC’s unsecure yahoo e-mail address, BoC had acted on instructions received from a fake mailer, www.emkei.cz and from an e-mail address similar to the account holder’s but with an additional ‘r’ in the middle of the address, manoharralexander@yahoo.com.

The report had also revealed that the bank had received the initial scam e-mail on or around December 17, 2013 and an e-mail wire transfer instruction on December 20, 2013 and negligently and in breach of its duties the bank had acted on the alleged transfer although the scam e-mail contained a forged or a cut-and-paste signature of Alexander.

Further the University of Colombo had carried out forensic investigation on BoC’s laptops and the account holder’s yahoo email and after a 13-month investigation, had submitted their findings to CID and the criminal court.

“The fraudulent money transfer had been done on January 1, 2014 which is now over two years and four months. The CID investigations also revealed that the bank e-mail systems were hacked and vital account holders’ confidential information had been compromised. Meanwhile BoC after their internal investigation have interdicted several employees including managers and had reorganised these internal policies after this massive fraud. The bank failed to protect its client’s money and is in breach of trust and contractual relationship. I have suffered and continue to suffer immense losses from exorbitant legal fees, travel expenses and also suffer physically and mentally, agony, panic and depression caused by the wrongful, illegal, unlawful conduct and breach of duties towards me by the bank. No one is aware of the hardship the BoC has caused me, breaching its obligations and not replacing my money,” Alexander claimed.

All attempts to contact Chairman BoC, Ronald Perera for a comment failed as he did not answer the calls. A message was left with Chairman’s Secretary Mrs. Samuel seeking a comment regarding the allegations levelled, but neither the Chairman nor any official from BoC made a comment at the time this newspaper went to press.

by Nirmala Kannangara

Mahinda Rajapaksa and Chandrika Kumaratunga

Following MP Mahinda Rajapaksa’s Private Secretary Uditha Lokubandara’s claim that the former president is entitled to travel expenses for official trips as per the Presidents’ Entitlement Act No. 4 of 1986, it has now been revealed how Rajapaksa when in office pruned most of the facilities enjoyed by former President D. B. Wijetunge and his predecessor Chandrika Kumaratunga.

It is surprising that the office of Kurunegala District Parliamentarian Mahinda Rajapaksa now speaks of entitlements of a former President,  when he personally got involved in filing a lawsuit through the then Chief Justice Sarath N. Silva to get the entitlements of past presidents pruned.

Although Uditha Lokubandara claimed that the Foreign Affairs Ministry had not given any undue preference to Mahinda Rajapaksa by paying for the latter’sfirst class air ticket to Uganda a fortnight ago, and that it is an entitlement as per the President’s Entitlement Act No. 4 of 1986, it is understood that there is no such clause in the Act regarding state sponsorships for official tours abroad for former presidents.

When The Sunday Leader contacted P. Dissanayake, former Chief of Staff and Private Secretary to former President Chandrika Kumaratunga to find out whether Kumaratunga’s official tours too were sponsored by the Rajapaksa government, Dissanayake said that although several requests were made, none of them were granted.

According to Dissanayake, there is no such clause as stated by Lokubandara in the Act that says former presidents are entitled to state sponsorship when touring abroad on official matters.

“I challenge Uditha Lokubandara to show what clause says this, as, to my knowledge there is nothing related to foreign official tours that former presidents undertake. Unlike former President Rajapaksa, who associated with only small countries sidelined by European nations, former President Kumaratunga was well recognised by most western rulers and receives many official invitations even to date. Although she received these official invitations, when I, as her secretary made requests to get state sponsorship during the Rajapaksa regime, nothing was done to pay for her air travel. She either spent from her personal money for the air ticket or got the funds from the host country,” Dissanayake told The Sunday Leader.

According to Dissanayake, when President Kumaratunga used the VIP Lounge at the Heathrow International Airport on three occasions soon after she went on retirement, the Sri Lankan High Commission had to pay 150 Pounds to the airport which too was asked to be remitted.

“When I was asked to pay this 150 Pounds back to the Sri Lankan High Commission in London, I made a request to the national Treasury and the Presidential Secretariat to settle this bill from government funds, but the request was vehemently disregarded. Following this, Mahinda Rajapaksa went on a media campaign to sling mud at Kumaratunga for asking the government to pay for a service she had obtained in London.  After this, Kumaratunga did not use any of these facilities. However this money was later waived off by the then External Affairs Ministry,” Dissanayake added.

Dissanayake further stated that Advocate Peter Jayasekera who appeared for a fundamental rights application filed by three lawyers in the Supreme Court to get the entitlements of former Presidents pruned, told him that the case was filed on the instructions of the then President Mahinda Rajapaksa.

“Advocate Jayasekera confessed this personally to me in court. According to him, on the instructions of Mahinda Rajapaksa, the then Chief Justice Sarath N. Silva got three of his lawyers to file a Fundamental Rights application in the Supreme Court (Case No. SC/FR/503/2005) to reduce the entitlements and facilities a retired president is entitled to,” Dissanayake claimed. According to Dissanayake, although President Kumaratunga was provided nine vehicles for her use and an office with a number of staff members after her retirement, Mahinda Rajapaksa had it reduced to two official vehicles and one security vehicle and removed the entitlement to function an office and staff through the Supreme Court ruling dated May 3, 2007.

In a letter dated May 14, 2007, by W. J. Ananda, Senior Additional Secretary (Administration) to the former Private Secretary and Chief of Staff to former President Kumaratunga states that as per the Supreme Court directives and President’s Entitlement Act No. 4 of 1986, vehicles and security details can be allocated to Kumaratunga similar to that of a cabinet minister and that the additional vehicles be released back to the Presidential Secretariat.

The letter further states: ‘S. M. Wickremasinghe, DIG in charge of President’s Security Division, has informed me that former President Chandrika Kumaratunga had been provided with a 301-8647 bullet proof BMW car, 201-8656 bullet proof BMW car, HJ-8859 VIP Benz car, GD-6948 Nissan Petrol VIP Jeep, GD-7249 Nissan Petrol VIP Jeep, JP- 2591 VIP Montero Jeep, GE- 2035 Defender Jeep, 65-1081 Pajero Jeep and 253-3090 Mitsubishi Double Cab. As per the court verdict and President Entitlement Act, the security and vehicles for a former president could be granted similar to that of a cabinet minister. Hence out of the vehicles allocated to her, retain one bullet proof car and return other vehicles to the Presidential Secretariat. Also retain one back-up vehicle obtained from the police department to provide security’.

Further, on September 20, 2007, the then President’s Secretary Lalith Weeratunge in a letter to the Secretaries of Presidents D. B. Wijetunge and Chandrika Kumaratunga instructed that the two respective offices be closed down and all government servants attached to them be released back to the Ministry of Public Administration and Home Affairs and the services of those who have been recruited on temporary and contract basis be discontinued with immediate effect and also that all additional vehicles and furniture used by these offices be released to the Presidential Secretariat.

Meanwhile, a highly respected retired SSP who wished to remain anonymous queried how former President Rajapaksa, who did not provide military security detail to the former presidents, could now ask for army protection claiming his life was in danger.

“It is President Kumaratunga that almost lost her life but ended up losing an eye in an LTTE bomb attack that has threats to her life. Even a few months before the fall of the previous regime, Rajapaksa once again reduced Kumaratunga’s security to take revenge from her. After retirement she was not given any army personnel but only one ASP and 64 police officers. Since most of the high-ranking police officers that provided security for Kumaratunga were not given any promotions, they left her service and it is an IP who now heads her security detail,” the source added.

The sources further queried as to why the present government has given more security to Rajapaksa by-passing the court verdict and President’s Entitlement Act.

“If a former president is entitled only to the facilities of a cabinet minister, then why has this government given more than what he is entitled to? If there is a court ruling that a former president is entitled to two official vehicles and a back-up vehicle, the court can take action against the government for contempt of court,” sources alleged.

• They robbed me of my contract – senadhipathi

by Camelia Nathaniel

Nissanka Senadhipathi

With the Sri Lanka Navy concluding its first contract with the Nigerian Navy for manufacturing and supplying six Arrow Boats and three Inshore Patrol Craft worth approximately USD 4.2 million, Avant Garde Chairman Nissanka Senadhipathi has accused the Navy of having stolen the contract that he signed earlier this year with the Nigerian Navy.

Speaking to The Sunday Leader, Senadhipathi said that during the Commonwealth Heads of Government Meeting (CHOGM), he spoke with the Nigerian Vice President, and as a result, Senadhipathi and 10 officers including retired Navy Commander Admiral Jayantha Perera went to Nigeria and discussed this contract.

“It was Admiral Rosairo who did the presentation. In fact, we went to Nigeria 26 times in spite of the Ebola outbreak prevalent in that country at the time. Admirals Dissanayake, Illangakone and the rest of us went and after contesting 26 other countries, we finally clinched the contract. Initially we were to manufacture 200 boats, and Naval Commanders of seven countries visited Sri Lanka in this regard. These were all documented, so we have solid proof to prove our claims. The current Navy Commander served Yoshitha Rajapaksa during the previous regime, and now he is trying to curry favour with the current regime. He is lying that the Navy signed this agreement with the Nigerian Navy,” he added.

He also pointed out that it was Avant Garde that signed the agreement for a pilot project with the Nigerian Navy on February 18 for $4.5 million.

“I have letters given by the Navy with regard to these boats. There are about 10 such letters. These boats were manufactured and the relevant test runs were carried out as well. For the first time in the history of this country, I facilitated the arrangements to bring in Sri Lanka the Second in Command of the Nigerian Navy along with a ship, and we conducted test runs. This was done entirely at our expense, and we spent Rs. 310 million on this exercise,” said Senadhipathy.

He further stated that there are also letters sent by the Ministry of Defence in Sri Lanka and the letters sent by the Ministry of Defence to this government as well. He claims to have all those letters. “This government lied about our ships that they carry illegal arms on-board, and so on. This is a lie and everything we did was done legally and with utmost transparency. The Navy Commander too is now lost for explanations as he has been caught in lying. The Navy deceived the people and the government and tried to steal our business. The same way, they have robbed this contract too.

Final presentation

“Admiral Rosairo went for the final presentation of this contract. We have no issue even if the Navy wants to take over our business, but the Navy did it very fraudulently in order to loot the commissions.

“This is a project that I obtained after 2 ½ years of hard work. I went on 26 trips to Nigeria in order to get this contract. When I went once the Ebola outbreak was on and people advised me not to go, but I went. That was the commitment I had, because I wanted to obtain this project. Until I brought this contract, our Sri Lankan Navy did not have the capacity or ability to construct even a canoe and sell it. I am the one who worked hard for it and somehow got this contract,” he said and added that countries like America, New Zealand, England, and China contested for this contract, but I managed to get the contract to manufacture and supply 200 boats.

He claims that all this was done not to fill in his pockets. The Naval Dockyard was established with his own money and that provided jobs for about 600 retired officers of the security forces who were finding it tough to survive after retirement.

“I have all the letters to prove that we had agreed to provide jobs for 600 personnel and that the Navy received Rs. 4 million of profits from every boat that we manufactured. Each boat is worth Rs. 1 billion. I got together with the government and carried out these deals. I have legal documents to substantiate my claims. These parties are now trying to brand us as rogues and levelling false allegations against us.” According to Senadhipathi, the government has also gone out of their way to point out that they (Senadhipathi and his personnel) are rogues and illegal arms dealers.

“Ironically it was the Navy that guarded these weapons. It was the Sri Lankan Navy that carried these weapons from the ships to shore and vise versa. If these are illegal weapons, how come the Navy transported these weapons to ships and back?  If what we were doing was illegal, how could the Navy take over and continue this business?”

Fraudulent act

He pointed out that this was nothing but a huge fraudulent act that the government and the Navy did in order to grab this business from him, and in order to sling mud at the former Secretary of Defence Gotabhaya Rajapaksa. He said that this was a dirty deal. “What has happened now is that the Navy is unable to engage in the business effectively. The job of the Navy is to protect the country, and not to do business,” pointed out Senadhipathi. He also said he has documents to prove that the Navy has been an utter flop in this business.

“Moreover, I gave so many jobs to retired service personnel or war heroes. The Navy is not in a position to do such a huge service. I had provided employment to 135 officers and 4,400 other youth. This government and the navy destroyed all that and now these people have no jobs.

“This Navy Commander too was a supporter of the previous regime, and now he is trying to be a hero with the current government. When the Navy took over MV Avant Garde, it was said that no one would lose their jobs. However, 11 admirals have lost their jobs, and they are unemployed now and finding it difficult to manage.

I used to pay them salaries ranging from Rs. 1.5 million to Rs. 2.5 million. You can ask any of these prominent officers who worked for me how they were taken care of. Today they are back to that pathetic state of having to survive with a meagre pension. This is what the Navy Commander did to them,” Senadhipathi charged.

When asked about the statement made by the Navy Commander to The Sunday Leader earlier that the Navy, after taking over Avant Garde, was making more profits, he said he will challenge the Navy Commander to an open debate about this issue. “I am willing to confront him with all the documentation to prove that the Navy has not been able to run this operation as well as we did. When it was under my control, we had 10 projects and from each of these projects, we have brought in $ 3.8 million every month on average from each of these projects. In some months, we have brought in 6, 8 and even 10 million dollars as well.

“What Sri Lanka is earning today is just $ 1.2 million. If the Navy Commander disputes this fact, I challenge him to confront me with documentation to prove me wrong. Currently, the Navy has lost 60 per cent of what we were bringing into this country. I can prove all these claims,” said Senadhipathi.

He further stated that Avant Garde also introduced many other projects such as the Rangala weapons deposit, Sea Marshal hiring and Sea Marshal firing, etc. that the Navy had not even though of doing. These were all new projects introduced to the Navy. “They never had these projects earlier. All these were destroyed for the Navy Commander to score points with the government,” he said.

According to the Navy, the deal is a milestone in the annals of the Sri Lanka Navy as this is the very first transaction, where the Navy involved internationally in earning foreign exchange to the country.

Issuing a press release, the Navy stated that the Sri Lanka Navy is the pioneer in the country in the sphere of manufacturing Arrow-class patrol boats and Wave Rider Craft. The concept was developed through SLN’s Asymmetric Naval Warfare experience. The foreign navies and the sister services avidly seek the assistance of the Sri Lanka Navy in asymmetric warfare exercises/training because of her world-wide fame gained through the victories in sea battles by employing these Arrow-class patrol boats and Wave Riders.

USD 4.2 million

As a result, today the Navy is privileged to carry out this USD 4.2 million worth contract with the Nigerian Navy. The first prototypes of these arrow boats were developed in 1994 by the Navy Special Boat Squadron, and they have produced approximately 120 craft thus far in the country.

The Navy will continue to engage in this assignment as it would boost the economic stabilisation of the country The earnings of this USD 4.2 million will be used for upgrading the Inshore Patrol Craft Project of the Navy at Welisara, and it is expected to lift the standards of the work station through advanced researches and technical know-how to deliver a quality output according to the international standards.

The Sunday Leader made several attempts to obtain a response from Navy Commander Vice Admiral Ravindra Wijegunaratne regarding these allegations, but our attempts were proved futile. The Navy Commander was not prepared to respond to our queries when he was contacted on Friday. He said he cannot comment since he was engaged in relief operations for those affected by the inclement weather.

As reported last Sunday in The Sunday Leader, the Navy Commander, Vice Admiral Wijegunaratne refuted the allegations and added that there was no necessity for Sri Lanka Navy to take over any business illegally. He, however, added that they entered into an agreement with Nigerian Navy three months ago to supply small boats.

Senadhipathi also highlighted that the income from maritime operations had dropped drastically under the Sri Lanka Navy. He added that when it was done by the Avant Garde, the monthly average income from each of the 10 projects was US $ 3.8 million.

In response to the claim that the Navy is now losing 60 per cent of what was earned by Avant Garde, Navy Spokesman, Capt. Akram Alavi said that from the time the Navy took over maritime operations from Avant Garde, the average income they earn per month is well above US$ 2 million.

When asked if it is a drop compared to the time the Avant Garde was operating the maritime services, Capt. Alavi said that the government consolidated fund received only 20 per cent of what Avant Garde earned, but now the entire income goes to the fund.

by Camelia Nathaniel

Chrishantha de Silva

It is yet to be announced whether the tenure of incumbent Army Commander Chrishantha de Silva would be re-extended once his current extension expires on August 21. If the current Commander’s extension is not granted, then the next Army Commander will have to be chosen from the six most senior Major Generals.

However there is word within military circles that in spite of several Major Generals being eligible for this prestigious post, due to politics within the army and the government, there is a plan to extend the present Army Commander’s tenure in order to allow the six most senior Major Generals to retire this year and allow for the selection of the next Commander from the second batch which includes favourites of certain government ministers.

From the current list of eligible candidates for the post of Army Commander, the first in line is Major General Milinda Pieris who turns 55 on August 11, 2016 and is rightfully next in line.

Next is Major General Sumedha Perera who completes 55 in September. However his chances of being considered for the post are remote as he was implicated in a land issue and was out of the Army for around five years. His name was also mentioned when there was talk that the Army was prepared to take over in case the Rajapaksa regime lost the election.

Then comes Major General Channa Gunatillake who is scheduled to retire next year. He is an officer with a clean record. However according to internal sources, he did not play a pivotal role during the war. But being a Royalist, he could be favoured by certain prominent politicians. It is very likely that the current Commander will be given an extension and once the other senior candidates have retired this year, Gunatillake will be in a good position to take on the post of Commander. According to military sources, current Vanni Commander Major General Boniface Perera is also another suitable candidate. But The Sunday Leader reliably learns that when the current regime had decided to transfer him to Colombo, Perera had encouraged some Buddhist monks to protest and demand that he be allowed to remain as Vanni Commander. He is also due to retire in November. Next is Major General Nandana Udawatte. He is also due to retire in November. He was actively engaged in the war and successfully commanded the troops in the last operation upto Mullaitivu. However in the Puthukudiruppu area he faced severe attack from the LTTE and suffered heavy losses. He was then transferred to Anuradhapura as the coordinating officer. Mullaithivu was then taken over by Major General Chagi Gallage and at the latter stages Major General Prasanna Silva took over.

Major General Upul Withanage is also a contender for the position but in comparison to the others, he is a rather low-profile officer. He is due to retire next year.

The next in line is Major General Kamal Gunaratne who is well known to the media and was reportedly responsible for getting some prominent LTTE big wigs including Prabhakaran, Susei, Bhanu and Ratna Master. He is due to retire in September this year and is also no doubt a suitable candidate for the position of Commander. Similarly Major General Sudantha Ranasinghe is also a suitable candidate for the position and he is due to retire next year. Then there is Major General Lasantha Wickremasuriya who is also due to retire next year.

The next most eligible and one who would have the backing of Field Marshal Sarath Fonseka is Major General Mahesh Senanayake. He was a target of the previous regime as he was considered to be supportive of Field Marshal Fonseka.  However while Major General Senanayake is seen as a candidate who will be supported by Fonseka in his bid to be the next Commander of the Army, others are concerned that if that happens Field Marshal Fonseka will have total control of the Army, which might be somewhat disturbing for the government. However Senanayake being a quiet man is considered a good candidate. He too is due to retire next year.

Similarly Major General Janaka Welgama who is also to retire next year is also in line. Last but not least, Major General Udaya Perera who is also due to retire next year is another potential candidate. A hard worker and meticulous officer, he expects maximum output from those under his command. While some are terrified of his iron fist rule, others claim that he is an example of how the military should work. However it is anyone’s guess as to who might be chosen as the next Commander.

In the military, the usual rule is that seniority is determined based on when one was enlisted. However an officer can be promoted above another, as long as he is not yet confirmed in that rank. However if that officer is in the substantive rank, then even if an enlistment officer is promoted, he cannot be put above in seniority.

Although this was the case, former Commander Daya Ratnayake defied this rule and promoted certain junior officers over the senior Major Generals who were in substantive ranks. As a result, these senior officers lost their seniority and some served over seven years as Major General. They claim it was a huge injustice to them, as they could not be considered for senior positions as they were put further down on the seniority ladder.

Meanwhile it was reported that military intelligence is looking into an incident where four serving Major Generals, a retired Army Commander and an ex-Major General had allegedly gone for a meeting with former Minister Basil Rajapaksa. This is said to have taken place despite circulars and orders given to Army Officers that prior permission from the Commander must be obtained in order to meet politicians as well as top officials of the Defence Ministry and other state institutions.

However an officer who was said to have met the former minister, on condition of anonymity denied these allegations and said that no such meeting had taken place. He told The Sunday Leader that this was nothing but a mud-slinging campaign by certain parties who are threatened by these officers.

“They are probably afraid that they might lose their chance of becoming Commander if we remain,” he added.

For some of the senior officers who played a pivotal role in the war, their only reward was a very ordinary retirement. They feel that having served the Army and the country whole-heartedly, their efforts and selfless contribution has not been acknowledged or appreciated. They also denied allegations that a group of Generals who were engaged in the war had gone to meet the President and pleaded with him to extend their terms. However one of the officers who did not want to be named confirmed that the President had invited a group of Major Generals who had been engaged in the war for lunch at Onreach Hotel in Seeduwa. The invitation had been extended to these Generals by the PA of the Defence Secretary.

“In fact Major General Shavendra Silva took time off from a course he was following in India to be there at this lunch with the President. But he had also informed the Commander and obtained permission to attend this meeting. Further, all the Generals who went to meet the President did obtain permission from the Commander. We did not ask the President for any extensions, but when the President asked us what was on our minds, we spoke with him regarding the war crime allegations against us in Geneva and about the situation faced by military intelligence officers currently, where they are being targeted and blamed for various incidents. We told him that as a result of the way they are being let down, intelligence officers are now afraid to commit as no one stands by them.

The Sunday Leader contacted the Army Commander with regard to the speculated extension and he said he too had no clue as to whether or not his term would be extended.

However according to internal military sources, the present Army Commander’s term is most likely to be extended and except for a few, many are said to be in favour of an extension.  Lieutenant General Chrishantha de Silva is also said to have rooted out politics from the Army during his term as the Commander and is well regarded as a forthright military officer.

by Nirmala Kannangara

A section of the CICT Terminal in Colombo Port

Commissions obtained from projects by the Rajapaksa family during their reign have been confirmed following the release of the Auditor General’s report on the Sri Lanka Ports Authority. The report dated March 1, 2016 under Ref. No. POS/A/SLPA/2016/04 states how Colombo International Container Terminals Limited, (CICT) the company that got the contract to build, operate and transfer (BOT) the terminals of the Colombo South Port had remitted Rs. 19.41 million to a ‘charity organisation’ well before they started their container handling operations.

This charity body is none other than the Pushpa Rajapaksa Foundation, and details have now come to light of how the funds obtained in the guise of ‘donations’ have allegedly been utilised only for personal expenses of the Chairperson of the foundation, Pushpa Rajapaksa, wife of former Economic Development Minister Basil Rajapaksa.

Through Hongkong and Shanghai Banking Corporation cheque No. 594691, CICT had remitted Rs. 19.41 million to Pushpa Rajapaksa Foundation (Peoples Bank Headquarter Branch account No. 204-1-001-5-0003290) on May 21, 2012, 14 months before the Colombo South terminal started their container handling operations.

Although this Chinese company has claimed they paid this large amount to the foundation in question for charity purposes, it has been revealed that this amount has been included in their accounts as part of the Colombo South Port Development Project expenditure.

Highly reliable SLPA sources, who wished to remain anonymous, told The Sunday Leader how a certain percentage of this ‘donation’ towards the Rajapaksa family will have to be paid back to CICT by the Ports Authority after the completion of the contract as per clause 62.3 of the agreement.

“According to Clause 62.3 of the BOT agreement, at the time CICT hands over the container handling operation to SLPA in 35 years or in the event the Government of Sri Lanka prematurely cancels the agreement, the Ports Authority has to pay a certain percentage of the money the Chinese company has invested in Colombo South port movable assets and on what they have spent to provide services for the terminal operations. Since the ‘donation’ towards Pushpa Rajapaksa Foundation too had been accounted as part of the Colombo South Port Development Project expenses, the SLPA has to re-pay a certain percentage of this money to CICT,” sources added.

The payment made to Pushpa Rajapaksa Foundation was confirmed by the Chief Financial Officer of CICT to the Director Finance, SLPA last year.

Director Finance, SLPA in a letter dated November 27, 2015 (Ref: FD/ FA/C/ 82-XV/ 17/ 2015) had requested CICT to provide details of the ‘donation’ they have made to Puhspa Rajapaksa Foundation on May 21, 2012 and whether they have accounted this money as part of the construction work of the Colombo South Port Project.

In reply, Chief Financial Officer of CICT in a letter dated November 27, 2015 to Director Finance, SLPA has confirmed this payment and also confirmed that this amount too had been accounted as part of the port development project expenses. The letter states:

‘The Director Finance,

Sri Lanka Ports Authority,

No. 19, Chaithya Road, Colombo 1.

Dear Madam,

Rs. 600 MN given to Pushpa Rajapaksa Foundation.

‘We write with reference to your letter FD/ FA/ C/ 82-XV/17/ 2015, dated November 27, 2015 and wish to clarify as follows. The amount indicated in the above letter is incorrect and the correct amount is LKR 19, 410,000 and this had accounted in construction in progress account in 2012. Copy of the above cheque and the payment voucher is attached herewith for your information.

Thanking you,

Yours faithfully,

Colombo International Container Terminals Limited, Chief Financial Officer’.

According to the sources, none of the SLPA employees were aware of this ‘donation’ and had never requested CICT to make any payment towards any charity.

“When international bids were called to offer the Colombo South Port contract, SLPA did not receive any bids. Hence the contract was offered to a Chinese company that was engaged in the Hambantota Port Project. It is this company that formed the CICT to construct the Colombo Port Southern Terminal and to fix the gantry cranes. It is alleged that it was the Rajapaksas that introduced this Chinese company for the Colombo South Port Project as the middlemen and had obtained the commission from the Chinese.

It was a known secret that the Rajapaksas obtained commissions from each project that was started during their time of rule. But in this instance, there is proof of how they obtained money. Although the Rajapaksas benefitted from this project, it is the general public that has to pay for it,” sources claimed. Speaking further, the SLPA sources accused the former Chairman Ports Authority, Priyath Bandu Wickrema for aiding and abetting the CICT to ‘donate’ the said funds to Pushpa Rajapaksa Foundation and added that it is up to the Financial Crimes Investigation Division (FCID) and the Bribery Commission to take action against all those involved in this scam.

“The Auditor General’s report, which was released on March 1, 2016, has comprehensively given details how this Rs. 19.41 million had been remitted to the Pushpa Rajapaksa Foundation. Based on this report, the two law enforcing departments can swiftly take action but although the FCID and Bribery Commission have already gathered evidence and questioned certain parties on this scam, nothing has been done,” sources added.

The sources further accused the Rajapaksa administration of giving the contract to construct the South Port terminal to CICT and transfer the container handling process to SLPA only after 35 years when this project could have been given to SLPA in order to generate more income for the country.

“The most difficult task in the port expansion project is the construction of the breakwater.

This contract was offered to a Korean company with an investment of Rs. 85,000 million from a loan obtained from the Asian Development Bank (ADB). After the construction of the breakwater, there was no necessity for the Ports Authority to give the contract to build the south port terminal and to install the gantry cranes to CICT but could have been done by them. Although Priyath Bandu Wickrema and a few of his loyalists in the SLPA Director Board, treasury representatives and the Attorney General’s representatives who were involved in the dialogues to hand over the terminal construction and build, operate and transfer the work to SLPA only after 35 years, the treasury representatives should have interfered and showed them what losses the country would suffer if this project was given for a 35-year period.

By the time CICT completes 35 years and hands the container operation service to the SLPA, the gantry cranes would be needed to be replaced. In such an event the SLPA will have to once again invest heavily to get new gantry cranes installed. There again our politicians could once again give it to a foreign company to invest and operate the container handling work and Sri Lanka would never be able to prosper,” sources claimed.

According to the sources, a 15 per cent share of this Colombo South port project is owned by the SLPA and most of the larger ships that come to the Colombo Port enter the CICT terminal because of its depth.

“The SLPA terminals cannot accommodate the larger vessels as its depth is much lesser than that of the CICT. Hence most of the larger vessels enter CICT terminal and SLPA gets an income of US$ 4 from each container as royalty. The income generated through this royalty is not even sufficient to pay the loan interest. Had this project been given to SLPA instead of to the CICTL, we would have by now settled the loan with the huge income generated from the south terminal,” sources said.

The sources further accused a VVIP in the good governance government of a recent claim that the east terminal too should be given to a foreign company instead of providing the necessary funds to construct the terminal and install the gantry cranes. “Although people voted this government into power seeking relief, only the faces changed but the same old method is still continuing. Why cannot this government provide enough funds for the east terminal project and settle the loan and the interest within a few years and then generate massive revenue like the CICT is now generating,” sources added.

Although a message was left with the Media Secretary to Ports and Shipping Minister Arjuna Ranatunga seeking a comment either from the Minister or Chairman, SLPA, Dhammika Ranatunga, neither the Minister nor the Chairman responded.

by Nirmala Kannangara

With the revelation of how Rajapaksa siblings have obtained the radio and television transmitters donated by the Chinese government to the government of Sri Lanka to start their own private broadcasting station, the Financial Crimes Investigation Division (FCID) has reportedly commenced investigations on the former First Sons over the alleged violation of the Public Property Act and the Money Laundering Act.

The Rajapaksas have continuously come under fire for allegedly obtaining commissions from all major projects initiated during the former regime and now it has been revealed how the multi-billion-rupee worth transmitting equipment, donated by the Chinese government, had allegedly been taken to start their own broadcasting network – the VIS Broadcasting Network (Pvt.) Ltd.

According to FCID sources, the police investigations had commenced after they obtained the Taxpayer Identification Number (TIN).

“Most of the information were obtained with the TIN No. 114638323 and according to details we are now in receipt, the country has received this stock of transmitters on July 9, 2009 and the customs duty had been waived off on a written request by the then Secretary to the President, Lalith Weeratunge,” sources added.

VIS Broadcasting Network (Pvt.) Ltd. was registered as a company with the Registrar of Companies on April 11, 2008 (Reg. No. PV 63832) and its first Board of Directors were former Chairman of National Youth Council, Nedigamuwa Lalith Piyum Perera, Kapila Gamini Samarasinghe Dissanayake, Vindya Rangani Hettiarachchi – daughter of Mahinda Rajapaksa’s sister and Kassapa Senarath Dissanayake. The Company Secretary was H. C. Perera and its registered office was at No. 12, De Fonseka Road, Colombo 5 and the city office was at 17A, Ocean Tower, Station Road, Colombo 4. According to FCID revelations, the then Media Minister, Anura Priyadharshana Yapa had given a temporary licence to VIS Broadcasting on May 16, 2008 a few days after it was registered with the Registrar of Companies.

“After the Chinese donation of these transmitters to the government of Sri Lanka on July 9, 2009, VIS Broadcasting Network had entered into an agreement with China Central Television on November 23, 2009 and had funded the VIS Broadcasting Network. Although China Central Television funded VIS Broadcasting after the agreement, it is also learnt that the same Chinese company had funded CSN unofficially,” sources added.

It has been revealed that Kassapa Senarath Dissanayake, when questioned by the FCID two weeks ago had alleged that the transmitter consignment was taken straight to the President’s Office from Sri Lanka Customs.

“When the FCID questioned Kassapa Senarath Dissanayake two weeks ago, he had told the FCID how the transmitter consignment was taken to the Presidential Secretariat from Sri Lanka Customs and later how the ‘President father’ had handed over the consignment to his siblings although it was received on behalf of the people of Sri Lanka,” FCID sources said on condition of anonymity.

According to sources, charges can be levelled not only against the Rajapaksa siblings but also against Mahinda Rajapaksa on Public Property Act, as it now clearly transpires how the former President had misused public property for his children’s welfare which is strictly against the Public Property Act.

The sources further said how two board directors from the initial VIS Broadcasting Network Board, Nedigamuwa Lalith Piyum Perera and Kapila Gamini Samarasinghe Dissanayake resigned and Narendra Seelanatha became a board member in August 2010.

“In November 2011, VIS Broadcasting Network worked hand-in-glove with Carlton Sports Network (CSN) and the FM frequencies VIS was granted. Singha FM and Red FM were started in 2012 and the Tamil radio channel was started in 2013.

Kassapa Senarath Dissanayake and Narendra Seelanatha then resigned from the director board and Kavishan Dissanayake becomes a Director.

In 2012, Menaka Liyanage, son of former Lotteries Board Chairman Upali Liyanage, became a Director but one year later together with Vindya Ranganee Hettiarachchi, Menaka Liyanage too resigned from the board in 2013,” sources added. When the Rajapaksa regime was ousted on January 8, 2015 and since the CSN channel had to face many obstacles and failed to carry on with the Carlton Sports Network further, VIS Broadcasting Network started off their own radio station ‘Sith’ FM closing down Singha, Red and the Tamil FM stations.

“In order to give a new face, Niranga Indrajith Hettiarachchi and Sanka were appointed to the Board of Directors of VIS Broadcasting Network,” FCID sources further claimed.

According to FCID revelations, it was the then Chief Executive Officer (CEO) of CSN Nishantha Ranataunga who had managed VIS Broadcasting Management as well. According to FCID sources, although Kavishan Dissanayake had promised to invest in VIS Broadcasting Network, he had failed to invest what he had promised but had invested only less than one sixth of what was promised.

“Kavishan Dissanayake is said to have invested Rs. 150 million in VIS Broadcasting. When the FCID asked Dissanayake to show how he obtained money amounting to Rs.150 million to invest in this broadcasting network, he had failed to do so but has submitted details into his investment amounting to Rs. 24 million. Questions now arise as to how the CSN failed to show how they obtained money to invest the capital. The VIS Broadcasting Network too is now struggling to show how they got the money to start this broadcasting network,” sources alleged.

The sources further said how the FCID had questioned the entire board members of VIS Broadcasting from its inception and also the CSN board members, but added how strange it is that one of the CSN Directors, Dinesh Jayawardena, was not arrested when Yoshitha Rajapaksa, Rohan Welivita, Nishantha Ranatunga and two others were arrested in January this year, on Money Laundering Act.

“The FCID is now in the process of obtaining details from all board members as to how the capital investment was made and by whom. The FCID is also in the process of obtaining Vindya Ranganee Hettiarachchi’s bank accounts as to how she has earned money to invest on CSN and VIS Broadcasting Network and in the event she fails to show how she earned that money, she will have to say who gave her the money,” sources added.