• Former Bribery Commission Chairman Dhammika
  Jagath de Silva Balapatabendi

by Nirmala Kannangara

The new government after the January 8 election appointed Senior State Counsel Dilrukshi Dias Wickramasinghe as the Director General of the Commission. However, she has been facing many impediments to carry out investigations against certain individuals as well as politicians in the Rajapaksa regime and their cronies. Allegedly, some of the main obstacles were then Chairman of the Bribery Commission Dhammika Jagath de Silva Balapatabendi and the two other Commissioners, including Jayantha Wickremaratne – a former Inspector General of Police (IGP).

At a recent press conference, Director General Wickramasinghe explained that she is planning to net, after the appointment of the new Commissioners, not only ‘sprats’ but also ‘sharks’ involved in alleged bribery or corruption disregarding their positions or party affiliations. This was a direct indication that she had been suppressed by then commissioners and prevented from discharging her duties and future plans to give ‘life’ to the Commission under the new Commissioners.

RMV Document dated June 27, 2013 that shows the current owner of KG-9321 is Jagath Balapatabendi. RMV document dated September 18, 2013 which contradicts with the June 27 document and The revenue license of KG-9321 from the time of its first registration untill 2013 taken under Sampath Weligalla

It is now up to the new Bribery Commission led by former Supreme Court Judge Justice Titus Bodhipala Weerasuriya as its Chairman and former Judge of the Court of Appeal Justice Lal Ranjith Silva and former Senior Superintendent of Police (SSP) Neville Guruge as the Commissioners together with the Director General to reopen all closed files that provide substantial proof of all received complaints.

Amongst the foremost complaints received by the Bribery Commission – that was never inquired into – is the complaint lodged by JVP Parliamentarian Sunil Handunnetti about former Chairman of the Commission Jagath Balapatabendi. This course of action was a result of the exposé made by the then Opposition MPs, Sujeewa Senasinghe, Karu Jayasuriya, and Dayasiri Jayasekera of Balapatabendi in parliament that he had allegedly obtained a ‘gift’ – a motor car by a vehicle spare parts importer – by giving a court verdict in his favour.

Credible complaints

Although it is the responsibility of the Bribery Commission to investigate credible complaints they receive, the Commission under Balapatabendi deliberately failed to act on the complaint lodged on January 1, 2014 about the Chairman of the Commission.

Meanwhile, Handunnetti questioned how can the Commission could state the complaint he lodged is baseless, devoid of truth, malicious and without substantial evidence when he had submitted all relevant documents.

Instead of following the general procedure, the former Commission carried out an ex-parte hearing by a one-man commission to the surprise of the complainant Handunnetti.

“Although substantial evidence was submitted to prove that Balapatabendi was corrupt, the former Commission deliberately failed to summon me for its inquiry. Instead, it had carried out an ex-parte hearing by a one-man Commission. There is no such rule in the Bribery Act. If the Commission wants to carry out an investigation, they have to summon me – the complainant – to the Commission to see whether my complaint contains adequate material to proceed with the matter,” Handunnetti said.

Under the Bribery Act of No. 19 of 1994 and the Declaration of Assets and Liabilities Law, No. 1 of 1975, the Bribery Commission is vested with primary power to investigate alleged offences committed and direct the institution to proceed against such persons and offences. If an offence is disclosed, the Bribery Commission directs its Director General to institute criminal proceedings against such persons in an appropriate court.

Since such procedures were not followed by the previous Bribery Commission under Balapatabendi, its reputation has been harmed over the years. As a result the public confidence in the Commission had hit zero level because the public knew that the entire Commission had been politicised and that no purpose of lodging complaints with it.

The Sunday Leader, however, is in possession of documents that pertain to the said vehicle obtained by Balapatabendi from the importer – Chairman of Vehicles Lanka (Pvt) Limited Harsha Prabath De Silva -  as a ‘gift’ for receiving a court verdict in his favour. It is this same De Silva along with Balapatabendi had allegedly fixed K. Ranjan, then Director (Preventive) Sri Lanka Customs for a bribe in 2013. This they did because he (Customs officer) became an obstacle to Balapatabendi’s good friend De Silva to allegedly import vehicle body parts illegally thereby evading Customs duty to the value of millions of rupees.

De Silva had entered into an agreement with BOI to import vehicle parts to set up/conduct and operate a business to assemble vehicles with second hand body parts for the local market.

Although the agreement was as such, de Silva had not imported car parts. Instead, he allegedly had imported full units without their engines with gear boxes and axels. These parts had been imported in separate containers.

De Silva’s alleged illegal importation process had prompted the Department of Motor Traffic to withhold registration of these vehicles. As a result, De Silva had filed a Writ of Mandamus in the Court of Appeal (CA WA 1492/2006) against the Minister of Transport, the Commissioner of Motor Traffic, and the Secretary to the Transport Ministry in 2006 to get a directive to the Commissioner of Department of  Motor Traffic to accept and entertain the applications to register the vehicles that De Silva assembled.

Justice Jagath Balapatabendi was a member of the panel of judges on eight sittings in the cases of Harsha De Silva. Balapatabendi was one of the Judges presented, together with the then Chief Justice, S. N. Silva and Justice Somawansa on June 2, 2008 when the order was given to the Commissioner Department of Motor Traffic to consider registering 145 of De Silva’s locally assembled vehicles. In the same judgment, De Silva was ordered to sell the vehicles under the ‘Emperor’ brand and not to use any other popular brand for his assembled vehicles.

According to the order, the chassis number of AT211-6018287 was one of the 145 vehicles that had been ordered to be registered with the Department of Motor Traffic Department. It was later allegedly owned by Balapatabendi.

Being a judge who was on the bench when the Department of Motor Traffic was given the option to consider the registration, and to trade vehicles with Emperor’ brand but not with any other, it is questionable why Balapatabendi had changed the car brand to Toyota. This is a clear violation of the conditions of the given order. Therefore, the assembler could have been charged with contempt of court.

According to the documents with The Sunday Leader, Jagath Balapatabendi had got this vehicle in question registered under his name on January 13, 2013, but had never obtained a revenue licence to his name.

An excerpts of vehicle registration details obtained on June 27, 2013 from the Department of Motor Traffic shows that Balapatabendi was the owner of this vehicle as of that date but when another excerpt was taken on September 18, 2013, shows that  by June 27, 2013 (the date first one was obtained), the said motor vehicle had been sold by Balapatabendi to Jahinge Senarath Jayasinghe on April 22, 2013 and Jayasinghe had transferred the vehicle to Sampath Mudiyanselage Sujeeva Navodya Weligalle on June 6, 2013.

According to reliable sources from the Department of Motor Traffic who wished to remain anonymous, the department had committed this crime along with Balapatabendi.

“Vehicle registrations, transfers, and all other details are not done manually but fed them to computers as and when these changes are made. So, how can the excerpts we obtained in June state the current owner as at that date was Balapatabendi and when another excerpts was obtained after three months, names of two more owners have ‘got entered’ on the document. This is a manipulation,” sources alleged.

Meanwhile, it had also come to light that the period which Balapatabendi had owned this vehicle, the revenue licence was under the name of Sampath Mudiyanselage Sujeeva Navodya Weligalle. According to the Department of Motor Traffic documents, Weligalle had got the vehicle transferred under his name on June 6, 2013, but the revenue licence had been under his name since June 10, 2008. The Certificate of Insurance had issued by Union Assurance PLC also shows that Weligalle had got the vehicle insured on June 5, 2013 – one day prior to his actual ownership of the vehicle, according to RMV details.

“This is food for thought. How can Weligalle get a revenue licence and insurance for a vehicle that he does not own? This is now up to the new Bribery Commission to find out whether Balapatabendi was behind this manipulation and interference. If not his influence, Weligalle couldn’t have obtained a revenue licence and insurance to a vehicle which he did not own,” source added.

Sources from Sri Lanka Customs also confirmed that they are in possession of documents to prove that the KG-9321 ‘Emperor’ motorcar had been owned by Jagath Balapatabendi as of June 25, 2013.

Meanwhile, in his complaint to the Bribery Commission, MP Sunil Handunnetti had given all bank details of Balapatabendi to show that he did not have money in his accounts to purchase this vehicle.

Empty bank accounts

“At the time Balapatabendi ‘purchased’ this vehicle, he had been maintaining several bank accounts in which he had no money to the value of the said vehicle. I had submitted all details of his bank account numbers to the Bribery Commission. If Balapatabendi claims that he paid money to purchase this car, let him show from where he got the money,” Handunnetti said.

While raising the question that Balapatabendi suppressed and covered up bribery and corruption charges lodged against politicians in the Rajapaksa government, then opposition MP Sujeewa Senasinghe said in parliament in 2013 that Balapatabendi aided and abetted to arrest former Director of Preventive Office, Sri Lanka Customs for an alleged bribery charge as a personal favour to his closest friends – the owner of Vehicle Lanka Pvt. Ltd., Harsha Prabath de Silva.

According to Senasinghe, an arrest should be made when accepting a bribe. But in the case of former Director of Preventive Office K. Ranjan, the bribery officials had not been present in the Director’s room to see whether the bribe was accepted, but had entered the room only after the alleged bribe was ‘taken’.

Balapatabendi was also accused of violating the provisions of the Bribery Commission which he was bound to comply with.

According to Section 17 of the Bribery Act, every member of the Commission, the Director General and every officer or servant appointed to assist the Commission, shall, before entering upon the duties of their office, sign a declaration that they will not disclose any information received by them, or coming to their knowledge, in exercising and discharging their powers and functions, except for purposes of giving effect to the provisions of this Act.

During the time, former Chief Justice Shirani Bandaranayake had been taken into task by the former regime and an investigation had been carried out against her at the Bribery Commission. At that time, Balapatabendi released several statements to the media about the plans of the Commission to take against the former Chief Justice.

According to Section 22 of the Bribery Act, any person who breaches the secrecy provisions in Section 17 of the Act is liable to imprisonment.

Every person who acts in contravention of the duty imposed on him by Section 17, to maintain secrecy, shall be guilty of an offence and shall, on conviction after summary trial before a magistrate, be liable to imprisonment for a term, not exceeding five years, or to a fine, not exceeding Rs 100, 000, or both and imprisonment, the sources said.

Although Balapatabendi had openly violated Section 17 of the Bribery Act, no action had been taken against him by the then Ministry of Justice simply because of his support towards the Rajapaksa regime.

No Comment From Balapatabendi

When The Sunday Leader tried to contact Balapatabendi on his land line, the person who answered the call claimed he was Balapatabendi’s brother, but later during the conversation, it was suggested that he was none other than Jagath Balapatabendi himself.

This person asked this newspaper to contact the Bribery Commission Secretary or former Commissioner of the Bribery Commission Justice L. K.Wimalachandra and inquire why the Commission did not investigate the complaint about Balapatabendi.  When this newspaper told him that it was necessary to get Balapatabendi’s comment, not that of Justice Wimalachandra who is no more in the Commission, the person from the other end said, “I am also no more in the Commission,” which suggests that it was Jagath Balapatabendi who answered to the call in the guise of his brother.

Nevertheless, this reporter gave her mobile number to Balapatabendi seeking his comment on the allegations levelled against him. But he did not return the call.

• Threatening call to the CID Officer

By Nirmala Kannangara

Following the threatening call received by the Criminal Investigation Department (CID) officer conducting investigations into the killing of The Sunday Leader Founder Editor Lasantha Wickrematunge, it is learnt that further investigations are being carried out on the telephone number from which the threatening call had originated.

The CID inspector, who was present at Mt. Lavinia Courts on October 23, told the Magistrate that the CID officer who conducts the investigation into Wickrematunge murder had received a threatening call on Wednesday, October 21 at 7.42am while on his way to the Attorney General’s Department for official work. Under the instructions of the Director CID, it is learnt that another investigation is now underway to get more information into the murder and the CID is hopeful of a breakthrough immediately from the telephone number of the threatening call.

“No sooner this officer informed the Director CID about this call, call details were obtained immediately from the particular telecommunication provider. These vital details we hope will help our investigation immensely,” sources said.

Sources further stated that investigations are now being conducted on the note books and the other documents that were found from the passenger seat of Wickrematunge’s vehicle. When asked whether it is true that the note book and the other documents found from the passenger seat of Wickrematunge’s vehicle have gone missing after taking into police custody, CID sources said they were not aware of it but know for certain that these documents were produced as evidence to the murder soon after the murder took place.

Meanwhile, sources further said that the public response towards the CID’s call to provide information in respect to Wickrematunge’s murder is encouraging and added that former Minister Mervyn Silva’s complaint to the CID too will be taken into consideration for an early breakthrough.

Questions have also been raised as to why the army is not cooperating with the investigation by preventing further questioning of one of their intelligence officers Kandegedara Piyawansa. He was earlier arrested in connection with Wickrematunge’s murder.

Piyawansa together with Pitchai Jesudasan were arrested for Wickrematunge killing by the Terrorist Investigation Department (TID) on February 26, 2010 and Jesudasan ‘died’ while in custody, and the second suspect Kandegedara Piyawansa was given bail by the police due to insufficient evidence.
Piyawansa, claimed in open court that he wants to make a dock statement on Wickrematunge assassination and had reportedly made the statement he wanted, after which he was released on bail.
All attempts made by the lawyers appearing for Wickrematunge to get a copy of Piyawansa’s statement failed and the CID claimed that the statement had been referred to the IGP for further investigations.

When questioned the CID sources, on Piyawansa’s statement made in front of the Mt. Lavinia Magistrate, declined to give any details claiming that any details that will hamper the Wickrematunge investigation cannot be revealed.

“The details that cannot be revealed are treated as strictly confidential. We have now accelerated the Wickrematunge investigation and as and when we inform the courts about the investigation progress the media can obtain the details but till then we have to maintain the confidentiality. If not our hard work will go in vain once the murderers and those who aided and abetted the killing get to know what the CID’s next step would be,” sources claimed.
Less than three weeks after Wickrematunge’s death, the then Defence Spokesman Keheliya Rambukwella on January 28, 2009, at a media briefing said that the government was aware of the identity of Wickrematunge’s killers and that Mahinda Rajapaksa was anticipating to uncover ‘some very important details’ on February 15, 2009, into the assassination of The Sunday Leader Editor in Chief Lasantha Wickrematunge. However, these Tvery important detailsv never came to light although Wickrematunge s widow Sonali Samarasinghe Wickrematunge repeatedly made written requests to the then President and the Inspector General of Police (IGP) to get an impartial investigation carried out to arrest the murderers of her husband and those who were given orders for the massacre.

Meanwhile Cabinet Spokesman and Minister of Health, Dr. Rajitha Senaratne at a press briefing has stated recently that the names of those who had ordered Wickramatunga’s murder has now surfaced. According to Dr. Rajitha Senaratne former minister Mervyn Silva’s complaint to the CID levelling allegations on the former Defence Secretary Gotabaya Rajapaksa is linked to the murder.

Wickrematunge was stabbed on his neck and head in broad daylight in close proximity to the high security zone Air Force Base, Ratmalana and succumbed to the brain injuries he sustained, at the Colombo South Teaching Hospital in Kalubowila the same afternoon.
It is no secret that The Sunday Leader under Wickrematunge became the biggest headache to Rajapaksa’s regime which was plagued with nepotism, corruption and frauds, and The Sunday Leader exposed them one after the other.

Police Spokesman ASP Ruwan Gunasekera said that the investigation is conducted by the CID and details into the latest stages of the inquiry are not given for security reasons. “The investigations details are not revealed by the CID but are in the process of taking evidence from the general public,” the Spokesman said.

by Nirmala Kannangara

The Sunday Leader is in possession of the relevant documents. The Sri Lanka Land Reclamation and Development Corporation (SLLRDC) which comes under the purview of the Defence and Urban Development Ministry had met the entire cost for this ceremony and Rs.27.614 million had been paid only to Showtown Entertainment, owned by Bhathiya Jayakody of Bathiya Santhush fame for event management services.

It is alleged that on the directive of the then Secretary of the Ministry of Defence and Urban Development Gotabaya Rajapaksa, the SLLRDC had to offer the Event Management contract to Bathiya Jayakody without calling for quotations and had not obtained board approval.

“It is under the Weres Ganga development project this walkway and the cafeteria area was constructed adjoining the Bellanwila Raja Maha Viharaya by the SLLRDC. Although the SLLRDC built the walkway, it is the Urban Development Authority (UDA) which oversaw the work under the guidance of the then Defence Secretary. Since the then government was targeting an early presidential election and knowing this opening could be a good event for them to show how Mahinda Rajapaksa was ‘developing’ the country, Gotabaya Rajapaksa had wanted the opening ceremony to be an impressive event,” SLLRDC sources said on condition of anonymity.

Although some of the higher officials had wanted to call quotations to give the Event Management contract for a reasonable amount, on the directives of Gotabaya Rajapaksa, the programme was entrusted to Bathiaya Jayakody.

Meanwhile, sources further said that although the government auditors after an audit query on this issue had wanted the SLLRDC to send their answers, proper answers had not been sent to the Auditor General’s Department.

Sources further accused the former Chairman of SLLRDC, Harshan de Silva, General Manager Srimathi Senadheera and Deputy General Manager (Drainage and Reclamation) S.T. Muthumala for this excessive spending knowing that the Corporation was running with bank loans.

“The SLLRDC became cash strapped institution under the previous regime as they withdrew money on many occasions under the guise of utilising the funds for development projects. The most recent instant where under the instructions of Rajapaksa was the initiative of the ‘Weeraketiya project’ to which the SLLRDC had to give Rs. 33 million. It was this same Chairman Harshan de Silva, General Manager Srimathi Senadheera and DGM S.T. Muthumala who released RS. 33 million for the Weeraketiya Project. Other than the management, no one else at SLLRDC knew what this Weeraketiya Project was. Some believed it was a land filling project in Weeraketiya while some thought that it was another project. Without any hesitation the then General Manager and the DGM who is still holding office to the annoyance of SLLRDC employees released the funds,” sources alleged.

According to sources, it was only later that the employees had come to know that the SLLRDC funds have been utilised to renovate the monuments of D.A. Rajapaksa and Dandina Samarasinghe Dissanayake (Mrs. D.A. Rajapaksa) which was allocated under the Weeraketiya project. These renovations had been carried out under the supervision of the UDA and this graveyard memorial consists with ponds, an underground museum, flower railings and a road network to reach the grave sites.

“The same way how the Rajapaksas obtained money for the Weeraketiya Project, he wanted Bathiya to manage the event without calling quotations from any other party and offered Rs. 27.614 million,” sources alleged.

According to reports, SLLRDC had paid Rs.11.954 million to Showtown Entertainment for the cultural events on the day of the opening ceremony on September 9, 2014 while the balance of Rs. 15.66 million on September 17, 2014.

It is learnt that for the opening dance including the main event and for the compeers in three languages a staggering Rs.13.845 million had been paid through invoice no: 1438 while for cultural events, sound and light system another Rs. 11.1 million had been  paid by invoice no: 1439. For the musical show that was followed after the opening ceremony, stage décor and advertising cost Rs.1.831 million had been paid by invoice no: 1440 and another Rs. 837,400 for marquees, VIP chairs, water pumps and special dresses by invoice no: 1441.

The report further states that out of the total event management cost of Rs.27.614 million, Rs.25.783 million had been paid only for the service and the events held between 5.30pm and 7.50 pm on September nine which indicates that SLLRDC had paid Showtown Entertainments a staggering Rs. 200,000 per minute.

“Because of the misuse of SLLRDC funds after being taken over by the Defence and Urban Development Ministry, this institution had to obtain a loan from the National Savings Bank for Rs. 14.5 billion which we have to pay Rs. 592.791 million once in every six months in 24 installments. The Bellanwila expenses and the Weeraketiya project expenses were all paid from this loan. If not for the fall of the Rajapaksa regime, we would have had to take another loan to pay for some other white elephant projects also,” sources alleged.

According to sources, SLLRDC has an event management section, it is puzzling as to why the former ministry secretary had specifically instructed the Chairman to give the contract to Showtown Entertainment without considering the charges.

“Those who are at SLLRDC can organise any event for a mere few lakhs of rupees. We have a doubt whether part of this Rs. 27.614 million had been gone to the pocket of one of these higher officials like how Channa Wijewardena and Upuli Panibaratha claim that they did not take Rs. 15 million for their dance presentations at the opening ceremony of the Hambantota harbor. Although a payment had been done for Rs. 15 million, Channa-Upuli Performing Arts Foundation had been paid only Rs. 6.8 million. It is now up to the Presidential Commission of Inquiry to investigate in to Frauds and Corruptions (PRECIFAC) and the Financial Crime Investigation Division (FCID) to hold an inquiry,” sources added.

Although a message was left with General Manager SLLRDC, Srimathi Senadheera’s Personal Assistant to find out as to why the government procurement guidelines were not followed to select an event management organisation, Senadheera did not respond to the message till the paper went to press.

All attempts to contact Bathiya Jayakody for a comment failed. A message was sent to Jayakody seeking a comment but he did not respond to the message at the time the paper went to press.

• R. Premadasa International Cricket Stadium and A night race

  Rs. 200 mn worth floodlights issued from Premadasa Stadium

By Nirmala Kannangara

It is being alleged now that the Sri Lanka Cricket (SLC) had generously gifted floodlights to the value of over Rs. 200 million to the Carlton Motor Sports Club for the use of the controversial night motor races.

Despite the Rajapaksa family’s claim that they have never misused public property during their time in office, The Sunday Leader last week exposed how the Rajapaksa regime had constructed a palatial bunker in the compound of the President’s House in Fort spending over a billion of rupees of tax-payers money on providing the pleasure for the Rajapaksa offspring.

The Sunday Leader today exposes further details of the alleged misuse of taxpayers’ money by the Rajapaksas for holding night races – the hobby of their siblings and children.

This newspaper is in possession of documents to support this accusation. They clearly show that the Carlton Motor Sports Club had removed nearly 240 floodlights worth over Rs. 200 million from R. Premadasa International Cricket Stadium on November 2, 2012 employing Presidential Security Division (PSD) personnel attached to the Army Commando Regiment.

This ‘gift’ had allegedly been made by the SLC on the request from President of Carlton Motor Sports Club Dinesh Jayawardena.

Jayawardena in a letter dated October 23, 2012 with the Carlton Motor Sports Club letterhead to, Air Commodore (Rtd) Ajith Jayasekera, Chief Executive Officer, Sri Lanka Cricket Board, Colombo 7, asked the SLC to give the floodlights at Sri Lanka Cricket to use for the night races in and around Colombo.

The letter further states, “the Carton Motor Sports Club which is an emerging Motor Sports Club in Sri Lanka wish to promote Sri Lanka as a vibrant motor sports destination, plans to conduct various motor sports events in and out of Colombo in the near future.

“Towards this endeavour, we want the floodlights available with the SLC to be used at the upcoming motor race events. We would be grateful if the floodlights are handed over to Shehan Dean of the Carlton Sports Network.

“We trust this request will receive your approval to make the planned motor race events a resound success.”

President of the Carlton Motor Sports Club Dinesh Jayawardena, however, first refuted the allegations levelled against the Carlton Motor Sports Club of taking floodlights from the SLC. “This is a blatant lie. We did not take SLC lights,” Jayawardena said. When this newspaper told him that we are in possession of a letter he had sent to then CEO SLC Ajith Jayasekera requesting for floodlights to use for the night races, and the gate pass that issued the lights to a PSD officer, Jayawardena said that he has to check with the club as he cannot recall whether he requested floodlights from the SLC or whether the club obtained them. Jayawardena, however, said he will come back with all details. But he did not keep his promise until this newspaper went to print.

 

On receipt of this letter, Chief Engineer, SLC Prasanna Jinaratne in a letter dated November 2, 2012 to Manager Works of the R. Premadasa International Cricket Stadium Godfrey Dabare has requested to release the available flood lights to the Carlton Motor Sports Club for the night races. The letter states, “To bring to your notice that the Carlton Motor Sports Club has organised to conduct motor sports events in and out of Colombo, and therefore, they have requested Sri Lanka Cricket to cooperate with them by giving the available floodlights to them for the night races.“Please be good enough to release these items and your earliest attention in this regard is highly appreciated. Copy of the request letter is attached herewith”.Acting promptly, the Stadium had released the necessary stocks to the Carlton Motor Sports Club the same day following instruction given by the Chief Engineer.

The Sunday Leader is in receipt of one of the gate passes of the SLC (serial number A 5187) dated November 2, 2012 by one of its officers to M.M.I..S.  Bandara (NIC No: 810843950V) attached to the Presidential Security Division (PSD) of the Army Commando Regiment. According to this gate pass, 100 floodlights, 50 of lamp fitting, 2000w lights, and 50 of choke type 2000w lights, had been taken away in army vehicle No: 23136.

However, Minister of Sports Dayasiri Jayasekara confirmed to this newspaper that out of the 247 floodlights the SLC had, 242 lights had been given to Carlton Sports Club, and only five lights are there with the SLC at present.Meanwhile, inside sources at the SLC who wished to remain anonymous told The Sunday Leader that Head of the Carlton Motor Sports Club MP Namal Rajapaksa, the son of Kurunegala District MP, Mahinda Rajapaksa, had allegedly telephoned the Premadasa Stadium storekeeper around 2 a.m. instructing him to come to the Stadium immediately and had got these lights removed secretly. It is said that this storekeeper residing in Maharagama had left for the Stadium by about 2 a.m. Although documents are available to prove that 100 floodlights were removed by the Carlton Motor Sports Club, it is alleged that another 145 floodlights too were taken away from the entire stock of 247 lights.

When information about this scam came to light, the new Sports Minister had allegedly appointed a committee to investigate and the report has now been handed over to the Minister and the Chief Executive Officer (CEO) SLC, Ashley de Silva, but no action seems to be taken since then Cricket Board Chairman Upali Dharmadasa and Secretary Nishantha Ranatunga must be the ones against whom the actions must be taken.

Nishantha Ranatunga has been accused of being behind this scam since he is part and parcel of all Carlton work, being the CEO of Carlton Sports Network – another business venture of Rajapaksa family established with illegal money which is being investigated now.

The Minister of Sports is accused of trying to cover up the issue without taking any action against Dharmadasa or Ranatunga because of the Minister’s personal friendship with them.

When this newspaper contacted Minister of Sports Dayasiri Jayasekera in this regard, he said the commission report has been given to the SLC CEO to take action against those responsible for the fraud.

“Of the nine findings of the investigation, the commission report does not level allegations against anyone other than against the storekeeper and two more people who were present at the time of the removal of the floodlights from the Premadasa Stadium. These lights have been given away without any approval from the SLC. On the directives of a VVIP son, this storekeeper had to give away these lights. Anyhow, the CEO will hold an inquiry and take action against those responsible,” Jayasekera said.

According to Jayasekera, none of the higher officials at the SLC were aware of this scam until recently. But they had not come forward to lodge any complaint in fear of their lives.

“After the fall of the Rajapaksa regime, these frauds are coming to light but earlier nothing came out. This storekeeper and the security guards are innocent, and they have carried out a VVIP son’s order. They had to obey the instructions knowing very well what will happen if they turned down the instructions,” Jayasekera said.

However, it is surprising that the Minister of Sports is denying the involvement of any of the SLC higher officials in this scam even though The Sunday Leader pointed out that the newspaper is in possession of official documents to prove that the SLC had given their approval to release the floodlights to Carlton Sports Club.

“Any documents we have do not say the SLC has given its approval. This has done on the verbal instruction of the VVIP son, and the storekeeper had no options but to go to the Stadium to release the stock,” the Minister claimed.

When asked how many floodlights had been removed from the Premadasa Stadium, Jayasekera said that according to the inventory, there had been 247 lights and only five remain at present.

According to the Minister, SLC had also given floodlights to  the Dalada Maligawa in 2011.

“The lights given to the Carlton Sports Club had been used for Kandy and Colombo night races during the previous regime,” Jayasekera alleged. Although the Minister claims that higher officials of the SLC are not aware of this alleged ‘gift’, the official seal of the CEO’s office is on the letter sent to the then CEO Ajith Jayasekera. It clearly shows the letter was received by the CEO’s office. There is yet another footnote on this letter written in Sinhalese by an unidentified officer requesting the relevant officials to release the stock of lights immediately.

The SLC sources, however, said that a stock of these floodlights were available for sale at a leading shop in Kandy recently and had gone missing after this issue was exposed.

“Each of this light carries the SLC logo. The stock of the lights that were to be sold in Kandy too carried the SLC logo. It is alleged that pictures of these lights have been taken by an interested party and had given it to the Financial Crime Investigation Bureau (FCID). Upon the complaint, when the FCID made a visit to this shop, the lights had not been on their shelves,” sources alleged.

According to the sources, as per Clause 23 (3) of the Cricket Constitution, the SLC Secretary is duty-bound to protect movable and immovable assets of the institution, and if any theft takes place, he is held accountable. “When the law clearly states as such, it is disheartening that the Sports Minister is ‘relaxing’ and not taking any action.”

When contacted SLC CEO Ashley de Silva to know about what action would be taken against those involved in this fraud, De Silva asked what grounds we are making allegations about a scam implying the information the media has received is incorrect.

However, when The Sunday Leader informed that the newspaper is in possession of all documents to show that the SLC had released floodlights officially not only to the Carlton Motor Sports Club but also to Dalada Maligawa, De Silva said he cannot make any comment as the matter is now under investigation. “The Minister appointed a committee, and we are now in receipt of this committee report. If there had been a fraud, action would be taken,” De Silva said.

All attempts to contact R. Premadasa Stadium Works Manager Godfrey Dabare and Chief Engineer SLC Prasanna Jinaratne for comments failed, as the calls were not transferred to them claiming they were ‘busy’.

• Blunder by the former regime  – Defenfe Secretary

by Nirmala Kannangara

PT-6 aircrafts

Startling revelations have come to light that the Sri Lankan Air Force (SLAF) is struggling to get approval from the Ministry of Finance and Planning to make a down payment amounting to a staggering US$ 10 million bypassing government financial regulations and procurement guidelines to offer a contract for a project initiated by former Defence Secretary Gotabhaya Rajapaksa.

The incumbent government however maintains that the project has to be re-examined due to many areas of concern.

It was during Rajapaksa’s tenure in 2012 a decision had been taken to establish a Chinese aircraft overhaul workshop in Trincomalee, and the initial cost for the proposed project was US$ 41.818 million.

However, after negotiations in 2013, it was brought down to US$ 40.3 million, and at the time of signing the contract by the former regime, the cost was further reduced by US$ 4.5 million because the project location was changed from Trincomalee to the Katunayake Sri Lankan Air Force base since Katunayake had hanger facilities for the workshop.

It is alleged that the initial project site had to have changed to Katunayake because of the objections raised by the Indian Government over Chinese presence in Trincomalee.

A letter dated December 11, 2014 by N. J. P. Gunasekera, the Chief Accountant of the Secretary Ministry of Defence and Urban Development, to the Commander of the Air Force has stated that the Cabinet of Ministers on May 29, 2014 had granted approval to establish a base maintenance center for overhaul of Chinese origin air craft of Sri Lanka Air Force (SLAF) through M/s China National Aero Technology Import Export Corporation (CATIC) at a total project cost US$ 39.85 million subject to terms and conditions agreed at the negotiation.

Fundes for the project

The Cabinet of Ministers have also given their approval to provide required funds for the project from year 2015 to 2019 through the Ministry of Finance and Planning on the recommendation of the (then) Standing Cabinet Appointed Procurement Committee (SCAPC).

However, according to highly reliable Defence Ministry sources who wished to remain anonymous, it is an unnecessary expenditure of tax payers’ monies as the country does not need a costly overhaul workshop at present, especially since there was no need for such a facility even during the height of the war.

Sources alleged that this is a project that the former Defence Secretary had mooted to please the Chinese government.

According to sources, the proposed project was to overhaul 16 Chinese aircrafts with the SLAF. But the PT-6 aircrafts and F-7 aircrafts are now not in production. The sources further said the total value of these 16 aircrafts are US$ 16.12 million, and it is profitable for the SLAF to purchase second hand K-8 fighter trainers which cost US$ 5 million each and Y-12 transport aircrafts which cost US$ 1.5 million each in the present market.

“There is no necessity to establish a PT-6 and F-7 overhaul workshop as these aircrafts are not in production now. To establish of F-7 series A/C overhaul facility, it costs US$ 26.491 million of tax payers’ monies, and for the establishment of PT-6 A/C overhaul facility, the public will have to bear a cost of US$ 3.196 million.

Why should the country spend such a colossal amount of foreign exchange on establishing an overhaul workshop for aircrafts that are not in production now? The reason the SLAF was trying to get the Finance Ministry approval for this project is because it was mooted by Gotabahaya Rajapaksa,” sources alleged.

The sources further stated that the head of the SLAF is pressurized by one of the SLAF Directors who is a brother of one of the ‘famous’ top army officers. He was alleged to have played a role in the arrest of Field Marshal Sarath Fonseka in 2010. This former army officer was later promoted to a high post at a Sri Lankan mission overseas because of his close ties with the former regime.

According to Defence Ministry sources, it is alleged that Rajapaksa is pressurizing this SLAF Director through his brother to get this workshop initiated in the country.

The sources further queried as to why the SLAF wanted to pay a colossal amount of money to spend to construct fully air-conditioned 30-room pre-fabricated block with kitchen, dining, and TV facilities for the Chinese apart from being paid for the project. According to the project breakdown, to build and provide the necessary facilities to the Chinese, the cost is US$ 1.499 million, and it is equivalent to Sri Lankan Rs.202.495 million. “For each Chinese officer’s accommodation, the tax payers have to bear Rs. 6.749 million,” the sources alleged.

According to the proposed plan, a down payment of US$ 10 million has to be paid to the supplier- M/s CATIC.

According to the government Financial and Administration regulations and government procurement guidelines, when a down payment is made – the receiver has to give a bank guarantee for the down payment and another bank guarantee for the Performance Bond.  However, the supplier although has agreed to give a bank guarantee for the down payment, they have not agreed to give a bank guarantee for the performance bond but a mere company guarantee which the SLAF has agreed to accept, but the Department of Public Finance of the present government has turned down the SLAF request. According to letter dated September 18, 2015 addressed to the Secretary, Ministry of Finance and Planning by the Sri Lanka Air Force, the initial cost of the establishment of the Chinese aircraft overhaul facility (AOF-China) proposal submitted in 2013 was US $ 41,818,899.71 and was reduced to US$ 40,300,000.00 with validation up to July 15, 2015. Subsequently the total value of the project was further reduced to US$ 39, 850,000.00.

The letter further states, “Secretary, Ministry of Finance and Planning, The Secretariat, Colombo, Establishment of Chinese Aircraft overhaul facility (AOF-China).

“It is wished to inform that the Sri Lanka Air Force had progressed establishment of AOF- China from the year 2012 and the Cabinet of Ministers had approved the project by the cabinet paper 14/ 0124/ 503/ 009/ TBR on May 29, 2015 as per the recommendations made by the standing cabinet appointed procurement committee. Further, the cabinet of ministers had approved funding of this project through annual estimates from 2015 to 2019. “The initial cost of the proposal submitted in 2013 was US$ 41, 818, 899.71. During the negotiations carried out in 2013, the cost of the project was reduced to US$ 40, 300,000.00 with validation up to July 15, 2013. Approval of the Cabinet of Ministers was granted for this value.

“Subsequently at the time of singing the contract, the total value of the project was further reduced to US$ 39, 850, 000 .00 by reducing US$ 450, 000.00 which was budgeted for construction of a hanger, due to change of location to SLAF base Katunayake where already constructed hanger facilities available.

“The contract in respect of this project was signed between the government of Sri Lanka and M/s CATIC China on June 29, 2015 with a deferred payment terms through a letter of credit as follows.

“Down payment by 31-08-2015, US$ 10 million- upon presentation of commercial invoice and the second payment by 31-08-2016 another US$ 10 million –as per the work performed and its acceptance. The third payment by 31-08-2017 of another US$ 10 million –as per the work performed and its acceptance and the fourth payment by 31-08-2018 of US$ 8 million as per the worked performed and its acceptance while the fifth and final payment by 31-08-2019 of US$ 1.85 million upon handing over of AOF to SLAF. “Provisions for settlement of down payment in 2015 have been allocated in the SLAF estimate 2015. It has been observed that the condition of obtaining bank guarantee for the down payment and performance bond for 10% of the total contract value are not included in the contract.

It is understood from M/s CATIC China that these conditions were omitted in the contract as they have agreed to held on to the 2013 quoted price in 2015 without correcting it for inflation.

“In order to progress the signed contract the SLAF procurement entity re-negotiated with M/s CATIC China to obtain a bank guarantee for the down payment as well as a Performance Bond. It has been agreed to provide a bank guarantee for the down payment and a company guarantee in lieu of the Performance Bond. Acceptance of company guarantee was inquired from the Department of Public Finance and it was turned down. However it is pertinent to state that the milestone payments due from 2016 to 2019 are released only on completion of agreed work scope and acceptance of it by the SLAF.

“It has been planned to overhaul six PT-6 Basic Trainer Aircrafts, one K-8 Fighter trainer Aircraft, four Y-12 Transport Aircrafts, three F-7BS Fighter Jets and two F-7 Advenced Fighter Jets through this project. However due to delay in progressing the project, the serviceability of Chinese aircraft fleet has been depleted beyond acceptable level hindering training of pilots at basic and advanced levels while impending the air defence capability of the SLAF due to reduced fleet of fighter jets. The medium transport capability of the SLAF has also been fettered owing to grounding of Y-12 transport aircraft.

The Air Force letter to the Secretary, Ministry of Finance seeking approval for a company guarantee in lieu of Performance Bond

Performance Bond

“Considering the facts enumerated above, approval is earnestly solicited to accept a company guarantee in lieu of a Performance Bond exclusively to progress the AOF China contract as a win-win strategy for both parties. Further, there is no financial risk to the Government of Sri Lanka at the milestone payments are settled only after completion of overhauls and acceptance by the SLAF. Forwarded for your kind consideration and approval please.”

When contacted a higher official at the Auditor General’s Department to find out whether the SLAF’s stand is correct, the senior official said that the SLAF has violated the government Financial Regulations and procurement guidelines.

“The SLAF is a government department under the Defence Ministry. It is questionable who has given them the authority to bypass these government regulations and guidelines? If the SLAF has agreed to pay US$ 10 million as a down payment, that is also against the government financial regulations. Only 20% of the total cost of the project can be given as a down payment but not a single cent more than that amount. If the total project cost is US$ 39.85 million, then a down payment of US$ 7.97 million is permitted to pay but not US$ 10 million which is US$ 2.03 more than the accepted amount.  In regard to the Performance Bond, there is no way they can accept a company guarantee. After all this is tax payers’ money the SLAF is trying to misuse hopefully for a favour,” Auditor General’s Department sources said.When contacted, Secretary of the Defence Ministry Karu Hettiarafchchi as to why the SLAF is attempting to violate the government financial regulations as well as procurement guidelines, Hettiarachchi said that it was a blunder by the previous regime.

“When the previous regime signed this contract, there were many loopholes and this issue is one of them. Since the country need aircraft overhaul workshop, I will be presenting a cabinet paper to disclose the cabinet of ministers as to what M/s CATIC’s stance is – not to give a bank guarantee but a mere company guarantee in lieu of the Performance Bond.   “It is up to the Cabinet of Ministers to decide whether to go ahead with the project accepting the company guarantee for the performance bond. In the event this is not accepted, we will have to renegotiate with the company and enter into a new contract,” Hettiarachchi said.

by Nirmala Kannangara

Testing emission level of vechcle

Questions have been raised as to why the previous as well as present governments have allowed two private companies to earn profits amounting to millions of rupees from motor vehicle owners in the country from the vehicle emission tests (VET).

It was in 2008, the then government through a cabinet decision  no: 08/ 1514/ 358/ 054, made it compulsory for all motor vehicle owners to obtain the VET certification for the annual vehicle revenue licenses to ensure the vehicle emissions are not hazardous to the environment. Hence the Rajapaksa government offered a five year contract to Laugfs Eco Sri (Pvt) Ltd and Cleanco Lanka (Pvt) Ltd to establish motor vehicle emission testing centers in the country. The contract was signed on July 26, 2008 and the programme was initiated from November 17, 2008 –from the Western Province and subsequently extended to the other provinces.

Although the five year contract period lapsed in November 2013, the previous government did not take any action to call new bids for the emission testing allowing the two companies to continue in their work without any hindrance.

Though certain officials at the Transport Ministry and Department of Motor Traffics (DMT) had made repeated requests to call tenders to give the contract to parties that have modern equipment to test the vehicle emissions nothing had been done allegedly because of Rajapaksa family’s close connection to one of the two companies according to Transport Ministry sources.

The VET fee varies from vehicle category, and from the fee charged, 13% has to be paid as taxes and from the remaining amount 10% has to be remitted towards the DMT Emission Trust Fund and 90% for the service provider. It is questionable as to why the government is only getting a mere 10% while allowing the two private companies to obtain 90% for the service they provide.

“After reducing the VAT and NBT taxes amounting to 13%, from the remaining amount 10% goes to the Emission Trust Fund (ETF) and 90% to the service providers. Although the vehicle owners assume that the money they are charged goes to the government it is not so. They are unaware that 90% of what they are charged goes to these two service providers. The respective governments had allowed these two companies which are alleged to have close connection with the Rajapaksa regime, to earn billions of rupees as profits out of the vehicle owners. True these emission testing is a necessity to protect the environment but why cannot the government amend the contract and get a higher potion of the income towards the ETF to carry out programmes to safeguard the environment?” a higher official at the Transport Ministry told The Sunday Leader.

However refuting allegations, the two service providing companies said that their contract was to provide the service to the entire country for five years and they were only able to cover the entire country in 2013 and the contract expires only in 2018.

However, the Transport Ministry sources said that there was no such clause in the agreement as claimed, but added that these companies had to cover the entire country.

“I would like to ask these two companies to come and show whether there was a clause as to when they had to cover the entire country? If it is yes, by which year had they got to cover the entire country and if the answer is no, then had they failed to provide the service to the entire country even by 2020, does the contract is then valid until 2025? This is ridiculous. Why is the Transport Ministry so silent in this regard? We thought that these frauds will end after the yahapalanaya government came into power but they too turn a blind eye to this and has allowed these two companies to earn profits in billions of rupees from vehicle owners,” sources alleged.Although the service providers claim that their contract period lapses only five years after they covered the entire country, the Transport Ministry official said that the programme they started off in November 2008 cannot be further extended as they wish.

Outdated method

“If they covered the western province in 2008 that contract lapsed in 2013 and likewise the time has to be calculated. If they took time to cover the entire island in 2020 then according to what these two companies claim, we have to give them time till 2025. Who had made these calculations for them? It is completely the fault of certain officials at the then Transport Ministry and DMT,” sources added.

According to sources, it is disheartening to understand how the corruptions and fraud initiated by the previous regime have extended even to the yahapalanaya regime and queried as to why this process cannot be handled by a state institution such as the Divisional Secretariats island- wide.According to sources, the present method the tailpipe emission test which is checked on a dynamometer is an archaic method and added that many countries in the world had changed their emission testing programme to an electronic method the On- Board Diagnostics (OBD 11) system.

“OBD 11 is the latest system in emission testing which is more accurate than the tail pipe testing method now used by Cleanco Lanka and Laugfs Eco Sri. OBD 11 is a simple plug-in testing that takes only seconds and can detect emission problems which are significantly higher than the method what we have in Sri Lanka now. It is also less costly than the dynamometer tests,” sources claimed.Sources further said how important it is now to switch on to the new emission testing method. “The way these companies do the emission testing is wrong and could cause damage to the engine as they press the accelerator for a few seconds although the standard time is less than one second,” sources said.According to sources, the two companies have allegedly got the 2008 introductory charges increased thrice up to December, 2011 without obtaining the proper approval to which the DMT nor the Transport Ministry took any action.“Although the emission test charges can be increased considering the income and the expenditure, with the approval of the ETF Board, these two companies had got the charges increased with the blessings of some DMT officials, first in sixteen months after the inception, the second increment after eight months since the first increment and the last, one year after the second increment. According to the statistics, they have increased the charges by 47% from the initial charge,” sources added.

According to the DMT data, this 47% is equal to Rs.168.619 million which was an additional profit for Laugfs and Cleanco companies.

Excluding the VAT, NBT taxes and the 10% payable to the ETF, as at the date this was introduced on November 17, 2008, a motor cycle had to pay Rs.225, Three Wheeler Rs.275, Motor car Rs.600, dual purpose vehicle Rs.650, Motor lorry  Rs.850, motor coach Rs.550, bus Rs.550 and prime movers Rs.900.

However, after 16 months on March 15, 2010, they got these rates increased and the motor cycle charge went to Rs.279.83 in March 2010 and was further increased to Rs. 283.65 in November 2010 and finally to Rs.330.07 in December 2011. Likewise the rates for Three wheelers went up to Rs.342.01 to Rs.346.68 to 403.20, motor cars to Rs.746.20 to Rs.756.40 to Rs.880.20, dual purpose vehicles to Rs.808.38 to 819.43 to Rs.953.54, motor lorries to 1,057.12 to Rs.1,071.56 to Rs.1,246.94, motor coach to Rs.684.02 to Rs.693.36 to 806.85, buses to Rs.684.02 to Rs.693.36 to Rs.806.85 and prime movers to Rs.1,119.30 to Rs.1,134.60 and to Rs.1,320.29n respectively.

Govt. vehicles exempted

“The reason why this emission testing made compulsory was to ensure that the vehicles on our roads do not contribute unhealthy air by emitting excess pollutants to the environment. Although it is as such the government made a decision to omit government vehicles from obtaining the emission test. What made the government to take such a drastic decision when it is only the state vehicles including the Sri Lanka Transport Board (SLTB) buses that emit the most dangerous black smoke to the air? This shows how the former regime allowed these two companies to earn money through private vehicle owners,” sources alleged.

Meanwhile, he said how the private bus organisations to object to get this emission test to which the Transport Ministry and the DMT is silent. “Although these two service providers have had to remit the ETF money to the DMT every seven days and failing which 3% penalty had to be paid for each day as per Section 4.7 of the agreement, the DMT did not take any action to recover the late charges from these two companies. In some months they have failed to remit the money for nearly one month. Although we raised this issue with the relevant officials they did not take any action. When the government auditors exposed this racket and instructed the RMV to recover the penalty immediately Rs.19.529 million was recovered from Laugfs Eco Sri while Rs.3.134 million was recovered from Cleanco Lanka,” sources alleged.    However refuting the allegations, Chief Executive Officer of Laugfs Eco Sri (Pvt) Ltd, Damayantha Dharmasiriwardhana said that as per the agreement they entered into with the Transport Ministry, their contract period lapses only in 2018.

“True our contract is for a five year period but the five years calculated from the date we covered the entire country. We first covered the Western Province in 2008 and last in the Northern Province in 2013. So we have three more years,” Dharmasiriwardhana added.When asked as to why they got an allegedly illegal price hike in vehicle emission testsDharmasiriwardhana said that he was not employed at Laugfs during the period in question, but added that it was due to the losses his company incurred. “The government brought a new regulation that state vehicles do not have to take this emission test. Then again there was another regulation that any brand new vehicle need not obtain this test for three years since its first registration. Now the hybrid vehicles too have been omitted from this testing. When most of the vehicles do not have to obtain this test we automatically incurred losses,”Dharmasiriwardena said.

He however said that his company had never delayed in sending the 10% towards the ETF within seven weeks. When asked as to why Laugfs Eco Sri violates the agreement they have entered with the DMT by giving the VET certification covertly to vehicles that emit thick smoke, Dharmsiriwardhana refuted the allegations and added that his company has never issued a single certificate without carrying out the VET accurately. “Baseless allegations can be levelled by anyone but I know none of our employees carry out such illegal work. How can we do it when the DMT can monitor all our activities within few seconds?” he added.

When contacted, Operations Manager Cleanco Lanka (Pvt) Ltd, Mr. Surendra for his comments, he too said that they have three more years as they too have finished covering the entire country in 2013 June. “We entered into an agreement with the DMT and started the operation in November 2008 from the Western Province. Except for the north and east provinces we covered all other provinces by June 2009 and the eastern province in July 2011 and the northern province in June 2013. When tenders were called our company  and another company was selected,” Surendra said.However he further declined to answer any other questions but gave an assurance that he will talk to his Director/ General Manager Rajiv de Alwis and took this reporter’s mobile number to be given to De Alwis.

All attempts to get De Alwis’ mobile number to contact him for further clarifications failed. Surendra gave an assurance that the Director/General Manager will submit all details to this newspaper. However till the paper went to press, neither Surendra nor the Director/General Manager returned the call to give further details.

All attempts to contact Commissioner General Motor Traffics for a comment failed as he was attending back to back meetings according to his office staff.

• Oil Fraud Causes SLPA US$ 20 Million Loss

by Nirmala Kannangara

Oil storage facilities in Magampura Port

Stern action will be taken against the perpetrators who were allegedly responsible for the losses incurred by the Sri Lanka Ports Authority (SLPA) running into billions of rupees during the previous regime, Ports and Shipping Minister Arjuna Ranatunga said.

The latest addition to the numerous irregularities that had allegedly taken place at the SLPA came to light recently when Ranatunga was informed how the oil bunkering facility at the controversial Hambantota Port had suffered a huge set back due to a loss of US$ 19.9 million to the SLPA.

According to Ranatunga, the losses incurred were due to the purchasing of a ship load of diesel which had been rejected by the Ceylon Petroleum Corporation (CPC) due to its substandard quality.

“We have received information how the rejected shipload of substandard diesel was purchased by the then management of the Sri Lanka Ports Authority (SLPA) for oil bunkering at a time when the world oil prices had hit the highest. It has been estimated that a staggering US$ 19.3 million had been spent to purchase 17,818 tons of diesel as a substitute for Marine Gas Oil (MGO), which has the lowest demand in the marine industry. Had there been urgency to purchase diesel for bunkering even when the prices were high, there wasn’t an issue. But in this instance when there wasn’t a necessity, a purchase had been done which was more than what was needed. Hence what made the then SLPA management purchase such a huge stock is the question,” Ranatunga said.

According to Ranatunga, from the time the purchase had been made by the SLPA, up to now an additional US$ 6 million had been paid as interest for the US$ 19.3 million and will incur more losses in way of interest even in the future. It is learnt that a three-member committee appointed to look into the alleged irregularities and misappropriation of SLPA funds that had taken place during the Rajapaksa regime had submitted a preliminary report to the Ports and Shipping Minister to which action would be taken against those who were responsible without considering their affiliations or status.

Meanwhile, reliable SLPA sources on conditions of anonymity said that the appointment of an ally of Kurunegala District MP, Mahinda Rajapaksa to the post of Deputy General Manager (DGM) Magampura Port Management Company after the last presidential election, announced for a salary of Rs. 1 million had also raised questions among the SLPA staff and added that all these irregularities had allegedly occurred under former SLPA Chairman Dr. Priyath Bandu Wickrema. According to sources, when the CPC had refused to accept the ship load of diesel due to its substandard quality, the SLPA, somewhere in 2013 or 2014, purchased it for oil bunkering purposes.

“When the ship berthed at the Colombo Port and tested the samples and was refused to be accepted by the CPC, it was revealed how the SLPA bought the entire stock of 17,818 tons that was directed to the Hambantota Port and unloaded it without considering the standard of the oil,” sources said.

Sources further said that MGO is slow moving oil and does not need to store huge stocks like other fuels – IFO 380 and IFO 180 – which are fast moving as they are used for operation of the ship engines.

“MGO is used only to operate small boats and for ship generators but not for any large vessels. This particular fuel is not purchased in large quantities like IFO 180 and IFO 380. Hence it is a question as to why the previous administration purchased 17,818 tons of fuel to be used as MGO. From the time of this purchase only a little more than 3,000 tons of MGO had been sold and there is more than 12,000 tons remaining. This is a loss to the country as the purchase was made at the time when the prices had hit the maximum in the oil market. This is a scam. What made the then Chairman SLPA to take such a decision to purchase such a large stock when the prices were so high and there was no necessity to purchase such a large stock,” sources alleged.

Secretary, Jathika Sevaka Sangamaya (Petroleum Branch), Ananda Palitha meanwhile said that it is high time for Minister Ranatunga to hold a proper investigation into the Hambatota oil bunkering programme and take legal action against those who have misused the public money for a mere white elephant project.

“The SLPA does not have any permit to import fuel to the country but still imported with the blessings of the Rajapaksas. It is only the CPC that has the permit to import the required fuel to the country and supply to any institution. It is the CPC that supplies fuel to the Ceylon Electricity Board (CEB) power stations and even to Katunayake and Ratmalana airports. What made the SLPA build five marine gasoline oil tanks and two aviation oil tanks at the Hambantota port” Palitha queried.

Palitha agreed to what Ranatunga said about the losses to the SLPA and added that it is now high time for the minister to find out as to who gave orders to the SLPA to construct a pipeline from the harbour to the Mattala Rajapaksa Airport, which was a wastage of public money into billions of rupees.

“Aviation fuel cannot be kept for so long as its quality reduces. When the airport and aviation authority informs the CPC how many flights are landing at Katunayake and how much aviation oil is needed for them daily, we dispatch them to Katunayake but there are no bunkering facilities at Katunayake. Likewise we send the aviation fuel stocks to Ratmalana domestic airport as well. Without any knowledge about this subject, what the Rajapaksa regime did was to get two huge tanks built to stock aviation oil. To an airport where aircraft do not arrive, what is the use of having oil tanks? We have to spend about Rs. 65,000 as transport cost to take aviation oil to Mattala and store them and bring them back after its standard drops and sell them as kerosene oil. This is a huge loss to the country,” Palitha said.

Meanwhile, Palitha said how the SLPA got the oil bunkers constructed at the Hambantota Port without getting the expertise knowledge from the CPC. “Without obtaining the expertise knowledge from us, they got these seven tanks built and five of them are now on the verge of sinking. Some tanks are leaking,” Palitha claimed. According to Palitha, the stocks of fuel the SLPA had imported could be substandard as they do not have the necessary technology and lab facilities to check the standard of the fuel once it reaches the port.

“When the oil stock is loaded to the ship, a report is taken to check its standard and once it reaches our port, CPC officers test the stocks to find out whether their findings tally with the report they have obtained at the time of the loading.

During the previous regime when substandard stocks arrived Colombo, CPC officers were instructed to unload the stock by the politicians, which we had to follow,” Palitha said. Palitha further said that SLPA has all the documents to prove how they imported fuel for a higher price when the world market price was much less and added that it is now up to Minister Ranatunga to act swiftly with the proven documents.

According to Palitha, had the proper procedure been followed by the SLPA from the very inception, the Hambantota port could have supplied fuel to many vessels that pass Hambantota.

Chairman SLPA, Dhammika Ranatunga too was uncontactable. Although a text message was sent seeking a comment, Ranatunga too did not respond. Chairman CPC, T. G. Jayasinghe when contacted said that it is the Ceylon Petroleum Corporation that has the permit to import fuel and that the Sri Lanka Ports Authority has no authority as such.

“It is we import the required fuel to the country and supply the fuel to the CEB and even aviation fuel to Katunayake, Ratmalana and Mattala.

What Minister Arjuna Ranatunga claimed that the SLPA had bought the shipload of fuel the CPC rejected was true,” Jayasinghe said.

• Another deal of the former Rajapaksa regime exposed

By Nirmala Kannangara

Financial losses incurred by the country during the former Mahinda Rajapaksas regime are now being revealed. One such incident that has recently surfaced is how the long planned project on the conversion of analog radio and television broadcasting technology into the digital technology system was to be adopted from Japan allegedly for personal benefits.

The former Rajapaksa regime when opening the Kokavil tower in the Northern Province in 2011 assured that Sri Lanka would be adopting the European DVB-T2 television standard, which had already been implemented in most countries in the world. According to radio and television broadcasters in the country, adopting the DVB-T2 method will reduce the cost on television stations and provide better reception for local television viewers. Despite the pre-planned European adoption system, the sudden decision allegedly taken by the Rajapaksa regime to adopt the Japanese technology – ISDB-T after the visit of the Japanese Prime Minister to the country last year, not only raised eye brows in those in the radio and television broadcasting sphere but, later came to light how a son of a VVIP in the previous regime was to be benefitted through the much controversial Japanese technology.

As a result, without holding discussions with the parties concerned and taking their view into consideration, the government of Sri Lanka had allegedly entered into an agreement with the government of Japan to adopt the ISDB-T technology to this country as the Japanese Government had agreed to provide a soft loan amounting to Yen 13 billion through Japan International Corporation Agency (JICA) for digitalization of terrestrial television broadcasting. This loan agreement was signed at the Ministry of Finance and Planning on September 23, 2014 by then Secretary Dr. P.B. Jayasundera and Kiyoshi Amada, the Chief Representative of JICA.

Before signing the aforementioned agreement, the then opposition MP, Dr. Harsha de Silva raised this issue in parliament on September nine, 2014 and queried as to why the Japanese system was selected haphazardly when a national roadmap team comprising members from the Telecommunication Regulatory Commission (TRC), Ministry of Defence and Urban Development, University of Moratuwa and representatives of private TV channels together with the International Telecommunication Union made a roadmap and selected the DVB-T2 system which had been adopted in most of the countries in the world.

According to highly reliable sources from among engineering experts in radio and TV industry in the country, the DVB-T2 system is the most sought after system in the world where it had been deployed in 36 countries and is to be adopted in another 37 countries in the world while, the Japanese ISDB-T system is to be tried in Sri Lanka as a test bench (test run).

“The Japanese technology has been implemented in nine countries and to be adopted by 15 countries.

Thailand and South Africa first adopted the Japanese technology but later switched on to DVB-T2 because of the failure of the Japanese technology”, sources who wished to remain anonymous told The Sunday Leader.

According to our sources, if the European technology is adopted, Sri Lanka can be covered with less frequency and the remaining frequencies could be sold for telecommunication purposes which would be an additional income to the country. “In the event the Japanese technology is adopted, minimum eight frequencies is needed to cover the entire country.”

Sources further added, “Since all private radio and TV channels became so vociferous wanting to adopt the European technology for greater benefits to the country and its people, the Japanese were lobbying to get their support and was offering various incentives including free holidays to Japan for those who were against the Japanese technology. There were a few who grabbed these incentives but the majority refused to accept any benefits.”

According to sources, although it was a big question as to why the Rajapaksa regime informed the industries concerned that the government had decided not to adopt the long planned European technology and instead have decided to accept the Japanese method as the best option to the country, it was later revealed how a son of a VVIP was going to be benefitted heavily by adopting the Japanese technology.

“They were not interested on how the country and its people are to be benefitted by implementing the European technology but they were interested in looking after themselves. When we switched on to the digital system most of our TVs are old and do not support digital signals and the additional hardware in the form of set-up-boxes have to be connected for the old TVs to be compatible to support the digital signals.

These set-up-boxes for the European method does not cost more than US$ 12 per one unit while for the Japanese method a set-up-box costs around US$ 40 which the difference is more than US$ 28 which is around Rs.4,000.

The reason why the previous regime wanted to switch on to this Japanese system was that a company owned by this VVIP’s son was to get the sole authority to import these costly Japanese set-up-boxes to the country and was alleged to have another plan to become the sole agent for all TVs imported with in-built set-up-boxes in future,” sources alleged.

Sources further stated as to how the then government planned to adopt this Japanese method by taking the soft loan amounting to Yen 13 billion (approximately US$ 108 million) when the European technology cost was approximately US$ 35-40 million.

“Out of the Japanese loan, Yen 3 billion was to be used to build a studio and an outside broadcast system for Sri Lanka Rupavahini Corporation and the rest for the implementation of the ISDB-T system. Together with is another soft loan agreement was signed to construct a flyover from Pettah to Peliyagoda through Kollupitiya to connect to the Katunayake Highway.

This flyover has two entrances from Kollupitiya and Borella. As the country now knows that commissions were taken from each road project, the previous regime knew that it was yet another good opportunity for them to make a few more millions in the form of commissions to be pocketed and without considering the impact to the country announced their plan to adopt the Japanese technology instead of the European,” sources claimed.

They further queried as to why the former regime wanted to adopt the costly Japanese project when the country could have saved US$ 60 million by getting the European technology.

Meanwhile, sources also said how the Japanese had wanted to introduced NTSC system to Sri Lanka when they gifted Sri Lanka Rupavahini Corporation.

“When the Japanese gifted us the Rupavahini Corporation they proposed to introduce the NTSC system. Had we got the NTSC system, we would have to buy TV sets with the American standard which is extremely costly. Knowing what would happen if the country opted for the NTSC system the then Director Engineering, Rupavahini Corporation Rukman Wijemanne and Head of Engineering, Sri Lanka Broadcasting Corporation Mr. Buwel had opposed to the NTSC system and wanted the Japanese to give the country the PAL system which is what is currently being used. Japan has been a good friend of Sri Lanka over the years but when it comes to these issues, they want to make this country a test bench,” sources added.

According to sources, the fall of the previous regime in January this year was a blessings in disguise for them as when this brought this to the notice of Prime Minister Ranil Wickremesinghe, he had immediately appointed a Technical Evaluation Committee (TEC) comprised of selected members who has the knowledge in this seeking a report to find out what the best technology for the government would be.

“If not for the change of government, the Rajapaksas would have already implemented the Japanese technology in the country by now. Because of the fall of the previous regime, the project is now at a standstill and once the report is submitted to the Prime Minister, we are sure that the European standard would be implemented which is also a less burden to the country,” sources said.

Sources further said that the newly appointed TEC Committee had asked the Japanese to show their technology as well as a request had been made to a German company through the German Embassy in Sri Lanka to demonstrate on the European Standard and to show their technology as well in order to submit the recommendations to the Prime Minister to decide what technology is the best to be adopted here. Meanwhile, Chairman, Telshan Network, Shan Wickremesinghe said that it is better to move forward with the analog system than converting it to digital system  in the country.

“Once it is converted to digital people have got to spend money to buy a set box to view the programs. This will cost them. If the country adopts the Japanese system the set box is much expensive than that of the German set boxes,” Wickremesinghe.

According to Wickremesinghe, after the fall of the previous government, TV Engineers who were really concerned about the change of conversion had informed the government that the Japanese system is not good for the country and the German system which had been used in many countries in the world has to be adopted by Sri Lanka as well. Hence the government appointed a committee in which he too is a member to check what the best system to the country is.

“When we asked the Japanese to show us a trial, with about 20 members, they presented it to us. What I understood was that they were well prepared for it and had better coordination that that of German group. The German group is now in the process of doing their presentation and we are planning to submit the report in two weeks,” Wickremasinghe said.

Minister of Parliamentary Reform and Mass Media Gayantha Karunathilake also confirmed that a committee had been appointed to select what the best Technology that could be adopted in Sri Lanka. “Once the committee report is submitted the final decision will be taken according to the recommendations,” Minister Karunathilake said.

Director General TRC, Sunil Sirisena said that it is prtemeature for him to say as to whether it is the Japanese technology or the European technology that is the best to Sri Lanka.

“It is the government that has to take a decision in this regard but not the TRC. We have not negotiated with any of these two parties,” Sirisena said

• Millions Of Public Funds Saved

by Nirmala Kannangara

Kumarasinghe’s letter to Mobitel seeking a salary hike

Startling revelations have now come to light as to how the Chairman of Sri Lanka Telecom (SLT) PLC and Mobitel (Pvt) Ltd  allegedly attempted to get a threefold salary increment, soon after assuming duties in January this year, although the initial proposal was rejected by the Board Members.

The Sunday Leader’s expose below is written with the best interest of the general public at heart.

P. G. Kumarasinghe Sirisena, brother of President Maithripala Sirisena was appointed Chairman of SLTand Mobitel (Pvt) Ltd in January this year. However, a few weeks after assuming duties, Kumaraisnghe Sirisena had allegedly presented a proposal to the Board of Directors of SLT and Mobitel Remuneration and Nomination Committees, seeking board approval to revise the remuneration of Board Members.

When Kumarasinghe Sirisena was appointed Chairman SLT and Mobitel, he had allegedly received two salaries from both institutions each reportedly amounting to a gross salary of Rs. 444,444 and after the applicable taxes, the net salary came to Rs.400,000. Notwithstanding to what he was receiving from both institutions which amounted to Rs.800,000 per month together with all other perks, Kumarasinghe Sirisena had allegedly gone to the extent of making a request to get his and other board members salaries increased by three folds and on the second attempt tried to get it increased at least by 100% to which the Sri Lankan and Malaysian Board Members had objected and rejected the proposal.

According to statistics, although Kumarasinghe as the Chairman had received Rs. 400,000 each from the two institutions  per month, the other board members had received only Rs. 40,000 per month. “The gap between the Chairman’s and the Directors salaries is 10% and had the requested salary increments were approved the Chairman would have received Rs.1.2 million and the board directors Rs. 120,000,” reliable SLT sources told on grounds of anonymity.

Three-fold

The Sunday Leader is in possession of documents to prove how Kumarasinghe had allegedly attempted to get his salary and that of the other board members increased by three fold, stating that he has undertaken  responsibility of full-time basis for the position of the Chairman while sacrificing a permanent employment opportunity in the state sector in the capacity of Chief Executive Officer (CEO)/General Manager while having worked as a dedicated government servant for 30 years.

SLT sources queried as to why Kumarasinghe had sacrificed a lucrative job in the state sector and joined the SLT as its Chairman if he had thought the former job is better than his current occupation. “Has he received a big salary in the state sector like what he is getting at SLT now? He is now entitled to a monthly remuneration of Rs.800,000 from SLT and Mobitel. If this request was granted by the board of directors of SLT and Mobitel would he have enjoyed a monthly salary of Rs.2.4 million?” sources queried.

According to sources, at a time the salaries of the SLT and its eight other subsidiary venture employees are increased only from five to ten percent.

“There were times our previous board of directors got their salaries increased by a higher margin but to get the salary increased by 300% is unbelievable. The Chairman in his proposal stated that he needs a salary increment as he oversees SLT operations on a full-time basis and sometimes even during weekends as he is involved in business and regulatory related discussions and negotiations. Not only the chairman, but all other employees also work full-time and not on free-lance basis. It is the Chairman’s duty to oversee the entire SLT operations and to hold discussions even on weekends. If the SLT chairman seeks a threefold salary increment for working long hours when he was getting an enormous Rs.800,000 from public money, then how much of a salary increase does a specialist doctor in this country or even an intern doctor who works round the clock saving the lives of patients would need to demand. Kumarasinghe knows that this is the high time he can earn money for a better tomorrow,” sources alleged.

Reasons

Be that as it may, in the proposal made on March 30, 2015, to the Board of Directors, SLT Remuneration and Nomination Committee by the Chairman SLT in order to get the Board Members remuneration revised, Kumarasinghe giving reasons for seeking a salary increment has stated as thus, However due to the following reasons, it is now requested to consider a review of the present remuneration structure entitled to the Chairman and other board members of SLT, its subsidiaries and director board members of the respective sub committees.

“The above proposal was brought to the remuneration committee meeting held on February 24, 2015, and accordingly the committee has recommended that a survey has to be carried out to benchmark the fees to a non-executive Chairman in the other listed companies and to report back to the committee for the final decision to be considered.

“However, it has been revealed that it is not realistic to benchmark the remuneration paid to the chairman of SLT with the other companies due to the following reasons-

(A)It is difficult to select other listed companies which are in the similar nature/ structure of SLT nature in operation. Though SLT is a listed company, SLT is also operated under different government agencies and boards.

(B) SLT operates in an environment where over 30 trade unions are  not active, therefore one of the SLT Chairman’s main roles would be to deal with them for industrial peace

(C) Role of the current chairman is unique when compared to the previous chairman’s roles

“According to the administrative and management models that are adapted by the Chairman, he oversees the operation of SLT on a  full-time basis and sometime even during the weekends as he is involved in business and regulatory related discussions and negotiations. Remuneration structures of both private and public sectors in the country have been changed considerably since 2007 due to the inflation, micro/macro- economic conditions, statutory directions, global trends and industry benchmarks with completion etc.”

He has also stated that he has foregone permanent employment in the state sector from the capacity of CEO/ General Manager to take over the responsibility as the Chairman SLT. The letter further states thus, “In view of the foregoing, I would be greatly appreciated if you could consider to revise the present remuneration of the Chairman and all the other director board members of SLT preferably an amount in the range of around three times of what is paid presently. Also it is proposed to pay all director board members of SLT subsidiaries and all director board members of the respective sub-committees with an amount equivalent to 50% of their fees after the proposed revision. Kumarasinghe Sirisena, Chairman Sri Lanka Telecom PLC”.

Kumarasinghe meanwhile has indicated indirectly as to how important he is to SLT as its Chairman claiming he could make use of his personal and all other relationships with the Urban Development Authority,  Sri Lanka Railways, National water Supply and Drainage Board, Board of Investment, Ceylon Electricity Board and Lanka Electricity Company to resolve issues related to SLT matters.

In a similar letter to the Chairman Remuneration and Nomination Committee of Mobitel, Kumarsinghe Sirisena in his capacity of Mobitel Chairman on April 2, 2015 had allegedly sent a proposal seeking a restructure of the remuneration for Mobitel board members.

According to the letter to Mobitel, Kumarasinghe had proposed two options – first option was to increase the salary by two fold and the second option by two and a half fold. According to the proposed structure table, when his net basic salary is increased by two folds it becomes Rs. 800,000 and if increased by two and a half fold it increases up to Rs 01 million. However, other Mobitel board members’ salaries reach Rs. 100,000 only if they get a threefold increment. If the salaries of the Audit Board Sub Committee members are increased by threefold, still their salaries are a mere Rs. 55,000 per month.

Meanwhile, Kumarasinghe had allegedly requested the Mobitel Remuneration and Nomination Committee to consider the deduction of payee tax from his salary to be borne by Mobitel.

The letter to Mobitel further states as thus, “It is noteworthy to mentioned that there are number of strategically important issues to be solved which needs urgent attention of the board. Matters with the Ministry of Finance, regulatory commission, Information Communication Technology Authority of Sri Lanka (ICTA) are amongst the top of the list. Hence I believe that the present Chairman and the Board could make use of their personal and all other relationship with the respective agencies/ authorities which could help Mobitel to resolve such issues mentioned above and other issues in most effective manner to achieve a higher performance level of Mobitel as a Team. I would be greatly appreciated if you could consider to revise the present remuneration of the Chairman Mobitel and all other board members of Mobitel and all members of the director boards of the respective subcommittees as per the proposal. Kumarasinghe Sirisena, Chairman Mobitel (Pvt) Ltd”.

“Although we can meet Chairman Kumarasinghe Sirisena, none of the promises he has given have been fulfilled over the past 11 months. We were very disappointed when we got the letters the Chairman has sent to the remuneration and nomination committees seeking salary hikes. When we came to know the Chairman’s attempt to get his salary increased we gave a letter to the President in this regard in April, but so far the President has not replied us. Although these politicians promises to clean the society and to put a stop to nepotism and corruption, once they come into power they forget their promises but walks on the same path their predecessors took,” sources claimed.

All attempts to contact Chairman Kumarasinghe Sirisena over his mobile phone for a comment failed as he did not answer the calls. A text message was then forwarded to him requesting for a comment but Kumarasinghe did not return the call nor send a message until the newspaper went for publication.

• Authorities contemplating leveling criminal charges

by Nirmala Kannangara

A well known mobile service provider in the country is currently embroiled in a controversy with law enforcement authorities over the company’s alleged failure to cooperate in ongoing investigations of several high profile cases.

The Sunday Leader learns that the authorities are contemplating bringing criminal charges against the respective company over its alleged failure to cooperate in the investigations. The following expose by The Sunday Leader this week is aimed at shedding light on many questions in the minds of the general public over the delays witnessed in some of the investigations carried out in to high profile assassinations during the former regime and is not intended at making any malicious comments at private business entities or individuals.

Highly reliable sources from the Attorney Generals Department told The Sunday Leader that mobile service provider, Dialog Telekom’s continuous failure to provide certain important mobile call details vital to make breakthroughs in some of the controversial assassinations that took place during the former Rajapaksa regime could even lead to the arrest of the company’s Chief Executive Officer.

Sources who wish to stay anonymous said that Dr Shridhir Sariputta Hansa Wijayasuriya also known as Hans Wijayasuriya will be called to respond over the company’s alleged failure to cooperate with the country’s law enforcement authorities to make a breakthrough to the murders where the military intelligence unit members are alleged to have been involved directly.

Amongst the most controversial investigations that are now hampered to a large extent allegedly due to Dialog Telekom’s failure to provide mobile call details of some of the suspects involved in the murder the founding Editor of The Sunday Leader newspaper Lasantha Wickrematunge, disappearance of Lanka E  news journalist Prageeth Eknaligoda, murders of national rugby player Wasim Thajudeen, Tamil politicians N. Raviraj and Joseph Pararajasingham and several more such cases. According to sources, startling revelations have now come to light as to how members of the military intelligence unit were allegedly involved in all the above mentioned incidents and how the military intelligence unit member’s alleged direct access to Dialog had prevented the release of the necessary call details either to the Criminal Investigation Department (CID) or even to the respective courts.

“When talking about scientific evidence to make a breakthrough to any murder does not mean that there is forensic or Judicial Medical Officer’s (JMO) reports only. Call details of the victim too is considered as scientific evidence as those details can certainly make a breakthrough easily. If any telecom service provider purposely hampers the police investigations, the law of the country can take such parties into custody and get the necessary call details,” the sources said. According to sources, all the above investigations are now at a standstill where the respective investigative teams have tried their best to get the details of the telephone calls the victims had received and taken but have failed so far. “How can Dialog Telekom say that they have not stored any call data of more than three months, when we have all records to prove that this same service provider had cooperated with us to make breakthroughs in many more cases by giving us mobile call details spanning several years. The CID has given us all these details including the case numbers and the nature of these crimes. In such a backdrop it is surprising as to why Dialog is now coming and saying that they do not store any records after three months which is a joke,” sources alleged.

Meanwhile, inside sources at Dialog Telekom who wished to remain anonymous confirmed to The Sunday Leader that all call details of any Dialog number spanning to 10 to 15 years can easily be taken as all records are with the company and raised questions as to why their company claims that mobile call details over three months cannot be retrieved. “All our past records are being zipped up (stored) and if there is a necessity to get these details this can be opened and taken. It is not a big issue for a company to get these details but it is surprising as to why our higher officials are claiming otherwise. We are sure our management does not want to reveal who the connected suspects are in these cases where the entire country is eagerly waiting to see who were behind these murders,” Dialog Telekom sources said.

Highly reliable sources from Mobitel Telecom also confirmed this and said their call details of over 15 years are with them for any future reference. “We do store all these past records as it is vital for us. I do not agree with what Dialog Telekom says. It is misleading. A company such as Dialog says that they do not have the facilities to keep the past records with them is the ‘Joke of the Year’,” Mobitel sources claimed.

Meanwhile, questions have now been raised as to what the Telecommunication Regulatory Commission (TRC) that had given licenses to the mobile phone companies would do if one of their clients – Dialog Telekom further hampers police investigations. “If any telecom operator had violated the agreement they have entered into with the TRC, and if the agreement says that they have to cooperate with the government in regard to issues pertaining to the national security, the service providers are bound to help out in such cases by providing call details. In the event if they violated the agreement conditions, the TRC has the authority to suspend the license forthwith,” AG’s Department sources added.

It has now transpired how military intelligence unit members were involved in the disappearance of Prageeth Ekneligoda and in the murder of Lasantha Wickrematunge, Wasim Thajudeen, N. Raviraj and Joseph Pararajasinghm. According to sources, since many arrests have now been made in to these murders where most of the suspects have been identified as military intelligence members, it can be assumed that the respective mobile service provider wants to hide the telephone call data in order to safeguard these intelligence officers.

“Senior officials at the respective mobile service providing company are known to have had close links to senior officials of the country’s defence establishment during the former regime,” sources said.

Sources further said that when President Maithripala Sirisena was informed of Dialog Telekom’s failure to provide the vital details to make a breakthrough to the suspected murders, the President had allegedly called the Dialog officials to his office and had reprimanded them. “Despite the warning, Dialog is very stubborn and do not want to give any details,” sources added.

Kandegedara Piyawansa, a military intelligence unit member who was arrested for Wickrematunge’s brutal assassination in 2009 was released on bail after he claimed in open court that he needs to make a dock statement on Wickrematunge’s assassination. He was then allegedly taken to the Magistrate’s chamber where he had reportedly made a ‘statement’, after which bail was granted.

Following the arrest of the former LTTE cadre, Sudha, who was taken into custody for the killing of former TNA parliamentarian, Nadaraja Raviraj, the CID arrested 11 suspects for the Ekneligoda abduction on evidence unraveled during Sudha’s interrogation.

It was on Sudha’s information that two former LTTE cadres were arrested, who later allegedly revealed who was behind Eknaligoda’s disappearance. It is also alleged 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 also taken in to custody.

The two LTTE intelligence carders were attached to the Karuna faction and it was they who have allegedly abducted Eknaligoda from Rajagiriya on January 24, 2010 and had dropped him off at the 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 allegedly brought in 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 the then Defence Secretary Gotabaya Rajapaksa although there were allegations leveled against him (Wijesuriya) for a cattle theft. It is alleged that this promotion was given because of the friendship between the then Defence Secretary and Wijesuriya.

Meanwhile, Lieutenant Colonel Shammi Kumararatna is also accused of in the operation to abduct Ekneligoda 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 Ekneligoda was rigorously interrogated by Lt. Col. Ratnayake and his staff for several days before his fate was decided.

It was same with the death of national rugby player Wasim Thjudeen. He too had been murdered allegedly by members attached to the Presidential Security Division (PSD) on the instructions of sons of a VVIP. Military officers are also accused of being directly involved in the murders of former parliamentarians Joseph Pararajasinghm and N. Raviraj as well.

Meanwhile reliable CID sources told The Sunday Leader that it is questionable as to how Dialog Telekom claims that they do not have certain call details although they have call details of the days before these murders took place and from the day after the murders took place. In most of these cases, Dialog does not have call details of the victims and suspects the days the incidents took place but before and after the incident all call details could be retrieved. As we do not want to hamper the investigations carried out by our Department we will not reveal certain details but they continue to fail to provide the details we want we will take action against its CEO for aiding and abetting these murders by safeguarding the murders, sources said.

“Now the Dialog Telekom license is under threat and senior officials can be arrested if they do not cooperate with the investigations. Not that we cannot take a court order and go to Dialog Telekom with IT experts and check all the stored call details, but we do not want to do that as they can accuse us claiming that we damaged their systems or even the data,” sources further added. Meanwhile sources further stressed the need to change the military intelligence unit members immediately as the present intelligence unit members have been appointed by the then Defence Secretary and their loyalty is still for Rajapaksas.
Meanwhile Director General of TRC, Sunil Sirisena when contacted said that he cannot make any comment with regard to Dialog Telekom’s failure to provide call details of certain victims and the suspects but added that if the court orders to the TRC to take action against Dialog, he has no other options but to abide by the court ruling.

When asked whether the agreement Dialog Telekom has entered into with the TRC says that call details have to be stored for any future reference, Sirisena said that he is unaware of it as he has to go through the agreement since he is new to the TRC.

“I was appointed to this post a few days ago and have not gone through these agreements. All what I can say is that in an even I get a court order, I have to stand for the court ruling,” Sirisena added.

Many attempts by The Sunday Leader to contact Dr. Wijesuriya from Dialog Telekom failed and he even failed to respond to the questions emailed by the newspaper to highlight the company’s explanation on the issue mentioned above.

All attempts to contact CEO, Dialog Telekom, Hans Wijesuriya for a comment failed as Darshana Abayasingha the Group Corporate Communication Manager, Dialog Telekom nor did the CEO’s Secretary Tanya give any contact number for Wijesuriya.

Abayasingha insisted that he cannot connect me to Wijesuriya as the authorised spokesman only he is authorised to response to the media pertaining to matters which are already before courts. Hence on his request, an e-mail was forwarded to get answers from Wijesuriys to the questions this newspaper posed. However instead of Wijesuriya, Dialog Telekom sent its reply stating that they continue to provide their fullest cooperation for the investigations in question.

“Dialog has and continues to provide its fullest cooperation to Law Enforcement Agencies and the Courts of Sri Lanka in the discharge of their duties. This uncompromised level of support provided by the Investigations Division of the company is extended without exception to all matters on which assistance is requested. The company maintains the highest degree of confidentiality with respect to all its engagements with law enforcement agencies and the courts of Sri Lanka.

Hence we regret being unable to provide any further information with regard to any specific investigations. This response to your query is provided on behalf of the Company by its authorised spokesperson, who is the only officer of the company authorised to respond to media queries as pertaining to matters  already before the Courts of Sri Lanka” Abayasingha has stated on behalf of Dialog Telekom.

by Nirmala Kannangara

Prageeth Eknaligoda

The Habeas Corpus and ‘B’ report cases filed in Court of Appeal and Homagama Magistrate’s Court respectively in the disappearance of Lanka e-news journalist Prageeth Eknaligoda are to be taken up for hearing this week, Sandya Eknaligoda, the wife of the journalist said. The Habeas Corpus case will be taken up Friday (18) in Colombo Court of Appeal while the ‘B’ report case filed by the Criminal Investigation Department (CID) is to be taken up Thursday (17) at Homagama Magistrate’s Court.

Meanwhile, reliable sources from a law enforcement authority told The Sunday Leader that few more military intelligence officers are to be arrested for the abduction of Eknaligoda while five more are now held in Welikada remand prison. Eknaligoda, abducted January 24, 2010, is alleged to have murdered by certain military intelligence members and thrown away to the deep seas off Trincomalee on the directives of a high rank official at the Defence Ministry during the previous regime. It is alleged that Eknaligoda had been killed at the Trincomalee Plantain Point Army Camp and buried in a marshy land closer to the beach. However, a flash flood had caused the body to emerge, and later the body had been allegedly thrown to the deep seas off Trincomalee.

Suda arrested

Following the arrest of former LTTE cadre Suda, who was taken into custody for the killing of former TNA parliamentarian Nadarajah Raviraj, the CID detained 11 suspects for Eknaligoda abduction on evidence that Suda gave during the CID interrogations. It was on Suda’s information, two former LTTE cadres were arrested and they later revealed who were behind Eknaligoda’s disappearance. These two, Sumathipala Suresh Kumar and Sathya Master, were attached to the LTTE intelligence unit, and it was on their information, Sergeant Major Ranbanda, of the Military Intelligence Corps was arrested at Kurunegala. This was followed with the arrest of two colonels of the Military Intelligence Corps along with seven others.

The two LTTE intelligence carders were attached to the Karuna faction, and they had allegedly abducted Eknaligoda at Rajagiriya on January 24, 2010 and had dropped him at the Giritale Army Camp. Later he was transferred to another camp before his murder was carried out. Amongst the arrested members of the Military Intelligence Corps are Lieutenant Colonel Kumararatne, 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 taken away after rigorous interrogation by Major Jagath Wijesuriya. Ranbanda has further confessed that a colonel attached to the same army camp was aware of Eknaligoda’s fate.

Friendship promotion

Major Jagath Wijesuriya, who was in charge of the Giritale Army Camp, had been promoted to the rank of Major General by the then Defence Secretary although there were allegations levelled against Wijesuriya of a cattle theft. This promotion is said to have been effected because on the friendship the former Defence Secretary had with Wijesuriya.

However, according to the latest information, Lieutenant Colonel Shammi Kumararatna is also accused of abducting Eknaligoda. He was taken to his farm at Dambulla 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. According to reliable information, Eknaligoda was detained one week in Giritale and taken to the Sorivila Army Camp at Manampitiya in the Dimbulagala Police Division. The landmines in Sorivila are yet to be cleared. Further reports state that Eknaligoda is alleged to have been transferred to the Plaintain Point Army Camp in Trincomalee where Eknaligoda is believed to have breathed his last. It is also reported that the CID who went to the Giritale Army Camp carrying the suspects had recorded statements from army personnel at the camp and had gone through all the documents to get more details to know when Eknaligoda was brought to the camp and by whom.

The CID officials have also obtained the relevant details of those who visited the Giritale Army Camp at the time Eknaligoda was brought in there. Details of the camp attendance register and those who were on leave and the registration numbers of the vehicles that had entered the camp during this period also have been taken.

Attempts to know contacts

The CID is said to have taken mobile phone details of certain army intelligence officers to know about whom they have contacted and from whom they received calls during these days. Those who have worked in the camp at that time had also been questioned to get more details, it is learnt. It is believed that Eknaligoda, who was a critic of the Rajapaksa regime, was abducted and murdered for compiling ‘The Family Tree’ – a book on Rajapaksa and his family members in politics and on those who held high posts in the government. He had also produced a 40-minute documentary portraying the former presidential candidate General Sarath Fonseka titled ‘Secrets of winning the war’.

Meanwhile, it is also learnt that the CID is now conducting an investigation to retrieve an audio tape – a conversation that the LTTE intelligence cadres who worked hand-in-glove with the Military Intelligence Corps had with Eknaligoda at his farm at Dambulla.

Meanwhile, the military connection with the murder of former MP N. Ravirajah has now surfaced because the weapon used for the murder had been given to the killer by one of the colonels arrested for Eknaligoda’s disappearance. According to the information received, it was this particular colonel, now in custody, who had allegedly given the weapon to Pillayan – the former Chief Minister of the Eastern Province, who in turn had given it to Ravirajah’s assassin.

by Nirmala Kannangara

President Maithripala Sirisena and Prime Minister Ranil Wickremesinghe’s exposé during the second reading of the budget in parliament early this month as to how Kurunegala District MP, former President Mahinda Rajapaksa had allegedly exploited even the dead to misuse public monies during his tenure as the country’s executive president has further revealed the extent to which state funds had allegedly been misused.

The Sunday Leader’s expose this week is written with the best interest of the general public to show how highly placed officials during the former regime had allegedly looted tax payers hard earned money.

According to Prime Minister Ranil Wickremesinghe, Rajapaksa had allegedly ‘spent’ Rs.15 million during the year 2014 for funeral wreaths while President Maithripala Sirisena has spent only Rs.363,000 during 2015 for the same purpose. According to details this newspaper is in possession, there were instances where funeral wreaths had been sent even to Nuwara Eliya from Colombo spending several thousands of rupees as transport charges and overtime payments in addition to the cost of the funeral wreath.

A senior official at the Presidential Secretariat on condition of anonymity said that she cannot believe whether these wreaths had actually been sent from Colombo, claiming that the flowers would have got withered by  the time it reached the far away destination.

“Unless these wreaths were made out of artificial flowers, fresh flowers would have got withered by the time they reached Nuwara Eliya. Taking a wreath all the way from Colombo to Nuwara Eliya is a waste of money and cheaper to buy from a florist in that area,” sources added.

It is learnt that the incumbent President Sirisena had given strict instructions to his staff that, in future contracts cannot be given to any florist to supply funeral wreaths to funeral houses on behalf of the President.

“Although the previous regime gave this contract only to two florists, President Sirisena told his staff that he does not want to give any contract to any florist nor to send the funeral wreath to the funeral house in a hired vehicle spending colossal amounts of public money. Hence he instructed the relevant officers to inform all District Secretaries/ Government Agents in the country to send funeral wreaths to funeral houses in their respective areas if instructions are given from the Presidential Secretariat. In a letter dated June 22, 2015 by President’s Additional Secretary Rohana Keerthi Dissanayake on behalf of President’s Secretary P. B. Abeykoon issued a circular to all District Secretaries/Government Agents in the country, that if instructions are given from the President’s office, the respective District Secretary has to offer the floral tribute to the dead on behalf of the President and the bill to be sent to the President’s Secretary for reimbursement.

The letter further states as thus, “In an event where floral tributes has to be sent for funeral houses on behalf of the President, the District Secretary of the particular administrative district has to place the wreath on behalf of the President. Hence in future, once instructions are received from the President’s office, the particular District Secretary has to pay the floral tribute made with fresh flowers and it should be more than four and a half feet in height. The bill has to be submitted to the President’s Secretary for reimbursement”.

The Sunday Leader is in possession of December 2014 bills amounting to Rs.531,050 spent for funeral wreaths and the transport fees borne by the Presidential Secretariat. Although there are many florists in the country, questions have been raised as to why the Presidential Secretariat bought funeral wreaths only from Jayaratne Florists of No. 432, Deans Road, Colombo 10 and Rayland Florists of No. 27, Station Road, Matara. Going through the December 2014 bills, submitted to the Presidential Secretariat by Jayaratne and Rayland Florists, it is very clear that serious irregularities had been taken place from the funeral wreaths as told by President Sirisena in parliament.

According to the bill numbers of these two florists, all bills in their bill books had been issued only to the Presidential Secretariat but not to any other party.

“If that is the case then Jayaratne and Rayland florists may have got orders only from the President’s Office not from anyone else if not they seems to have maintained separate bill books for the Presidential Secretariat orders as all the bill numbers are clearly in order,” sources alleged.

According to Jayaratne Florist bills, bill number 8991 had been written either on December 27 or 29 (the date is not clear) but the next bills – number 8992, 8993, 8996 and 8997 – had been drawn on December 26. It was the same with December ten and 31 bills as well. The bill number 9090 shows that it had been issued on December ten but on the same date yet another bill had been issued under bill number 8903. On December 31 bill numbers 9032, 9033, 9034 and 9035 had been issued but surprisingly from December 2 to December 10 the issued bills have been numbered from 9051 to 9090.

“This clearly shows that Jayaratne florists have haphazardly written the bills may be after the fall of the previous regime without even assuming that questions would be raised about the bill numbers,” sources claimed.

Although the standard cost of a Jayaratne floral wreath was Rs.1,500, there were few instances where expensive wreaths which had cost Rs.6,000 and Rs.5,000 had been dispatched – all to funeral houses at Medamulana which was Rajapaksa’s constituency.

“When going through the Jayaratne bill details other than for a few, most of the funeral wreaths had been sent to Kandy, Bandarawela, Nittambuwa, Avissawella, Anamaduwa, Galaha, Galle, Devinuwara, Hanguranketha, Kurunegala, Polonnaruwa, Deniyaya, Aluthgama, Rambukkana, Hakmana, Ratnapura, Walasmulla, Kegalle, Monaragala, Matale and Trincomalee.

In addition to the cost of the wreath, how much of money the presidential secretariat had spent on transport and overtime to dispatch the wreaths? Why couldn’t they send these wreaths from a florist closer to the funeral houses and save millions of rupees of public money,” sources added.

It was the same with Rayland Florists, Matara where  not a single day has passed without a wreath being placed  in December 2014, on behalf of the then President Mahinda Rajapaksa. Refuting the allegations, Chairman Jayaratne Florists, Upali Jayaratne said that not only Mahinda Rajapaksa but also former President Chandrika Kumaranatunge had purchased funeral wreaths from them.

“This is not a big issue for us as consecutive Heads of Government had bought funeral wreaths from us. Although we have supplied funeral wreaths to the former President’s request we were not paid for the months of October, November and December,” Jayaratne said.

When asked whether former President Chandrika Kumaratunge too bought funeral wreaths every day like her successor Mahinda Rajapaksa, Upali Jayaratne was unable to give a proper answer.

In regard to the issuance of bills without an order which is a clear indication of a serious irregularity, Upali Jayaratne while dismissing the allegation said that his staff may have used various bill books to issue the bills. “My staff may have not taken the bill books in order but may have taken it unsystematically. Other than that there isn’t any scam into our billing system,” Jayaratne said.

When contacted Manager Rayland Florist, Samantha said that they have been supplying funeral wreaths to the Presidential Secretariat over the past 10 years.

“We supplied funeral wreaths to many places around Matara on the request of the Presidential Secretariat. The Presidential Secretariat has to pay us Rs.880,000 for October, November and December and another Rs.75,000 up to January 8, 2015. Even on January 8, 2015 we sent a funeral wreath to President Mahinda Rajapaksa’s Weeraketiya office,” said Samantha.

According to Samantha, it was either the President’s Office in Colombo or Murthi Kodithuwakku from the Weeraketiya office that gave orders and had charged Rs.1,750 to deliver the funeral wreath to Weeraketiya.

by Nirmala Kannangara

Wasim Thajudeen

The private telecommunications service provider, Dialog Telekom, which earlier maintained that their automated system cannot retrieve the unrated (incoming) call details of their customers, the company it is learnt has made a sudden decision to revert on their former stance and agreed to corporate with the Criminal Investigation Department (CID) in the investigation into the murder of Mohamed Wasim Tahjudeen.

Speculations was earlier rife that the head of Dialog Telekom, Dr. Hans Wijesuriya  would be arrested for his failure to provide call details of the former Sri Lanka national rugby player and Captain of Havelock’s Sports Club, Wasim Thajudeen to cooperate in his murder investigation.

However a legal luminary who wished to remain anonymous told The Sunday Leader that if not for the speculated news report on the possible arrest of the CEO, Dialog Telekom, the service provider wouldn’t have assisted the CID investigations to provide the rated and unrated call details of Thajudeen. “From the time Thajudeen’s murder case was reopened in February after the fall of the Rajapaksa regime, Dialog was stern, claiming that they do not have call details which are over three months old. For them to come up now to say that they are in the process of retrieving these call details clearly shows that they wanted to hamper the CID investigations for personal reasons known to all. Anyhow we are now thankful to Dialog Telekom for their given assurance to corporate with the investigations,” the legal luminary said.

When The Sunday Leader questioned Attorney-at-law Ranil Samarasooriya who appears for Dialog Telekom in the Thajudeen murder case as to why the company had first said the service provider has the call details only up to three months and now have agreed to provide the necessary call details, Samarasooriya said that Dialog had to try new methods to get the old records and had only recently succeeded in their attempt.

When Samarasooriya was informed that Mobitel had confirmed to this newspaper that they have all past records with them from the time their service had commenced, the Attorney-at-law said that he agrees with it as Dialog being the largest mobile telecom service provider in the country is unable to keep all data as their clientele is over 10 million and more than 100 million calls and SMS are routed through Dialog network daily.

“Although we can get all rated (outgoing) call details from the billing department there was no way we could get the unrated call details. That’s why we informed the court that we do not have the past records. However later, Dialog IT staff tried to retrieve the unrated details through Technologically Complex and Investment Intensive Process which is a costly method. The Dialog team was successful in their attempt and that was why we decided to help out the investigation process of Thajudeen murder case,” Samarasooriya said. According to him, that was the reason why Dialog could not help the investigations into the murder of Founding Editor of The Sunday Leader Newspaper Lasantha Wickrematunge and the disappearance of Journalist Prageeth Ekneligoda.

Thajudeen’s charred body was found near Shalika Grounds in Narahenpita on May 17, 2012 and the police pronounced it to be an accidental death although speculation was rife that it was a murder and alleged that family members of the former first family was behind the murder. As a result, the case was swept under the carpet. With the fall of the Rajapaksa regime in January this year, the case was reopened in February and the investigations were handed over to the CID. It was in May this year, the Colombo Additional Magistrate ordered the JMO to hand over all pictures relating to Thajudeen’s death to the CID for further investigations. Later in June the CID informed the court that the Government Analyst report and the former JMO’s report contradict each other and sought the Attorney General’s views. It was at this juncture, the Colombo Additional Magistrate gave an order to the former JMO and his team who conducted the post mortem on May 17, 2012 to submit their report to courts and ordered Dialog Telekom and the Telecommunication Regulatory Commission (TRC) to submit Thajudeen’s mobile records of the day he met with the accident.

However, in July, Dialog informed courts that they cannot retrieve past call records of their customers due to technical and practical limitation. Since the CID on July 27 informed courts that Thajudeen has not died due to an accident and that it was a murder, the court ordered the CID and Colombo Chief JMO to exhume the body on August 10, 2015.

Meanwhile, the Narahenpita police who conducted the investigations in May 2012 are accused of deliberate attempts to hide the facts following their claim that Thajudeen died due to burn injuries confirmed by the then Colombo Chief JMO Prof. Ananda Samarasekera in his initial and interim post mortem reports. However, the Government Analysts report states carbon monoxide had not been found in Thajudeen’s lungs, which shows that Thajudeen has not inhaled carbon monoxide as he was dead at the time of the vehicle going into flames.

Meanwhile, Senior Attorney at law appearing for Thajudeen family, Misbha Sathar told courts, how former DIG Anura Senanayake who allegedly has taken personal interest to identify the death as an accidental death had informed Thajudeen’s father the day after the accident that this was an accident and there are no evidence to proceed with the  matter further.

When the case was taken up on Thursday, December 10, the noticeable absentee was the Attorney General’s Representative- Senior State Counsel Dilan Ratnayake who represented the Attorney General’s Department on earlier occasions. It was questionable as to why Senior State Counsel Ratnayake was not present on Thursday since it was a crucial day for the case.

All attempts to contact Senior State Counsel to find out as to why he was not present in court failed as the Attorney General’s Department did not connect the call to Ratnayake.

The OIC (Homicide) of the CID, Chief Inspector (CI) Ravindra Wimalasiri told the Colombo Additional Magistrate Nishantha Peiris that the CID is expecting the Colombo University Information Technology Unit to give clear details of the CCTV footages obtained from Kirullapone and Narahenpita junctions. According to CI Wimalasiri, although the CCTV footages are not clear the Colombo University had given an assurance that they can get them cleared and provide the details to the investigation team.

“From the visuals we can see a vehicle similar to that of Thajudeen’s is moving in two places and some vehicles speeding behind it. Until we get the visuals cleared, we cannot come to a conclusion,” the Chief Inspector said.

On December four the Chief Judicial Medical Officer (JMO) Dr. Ajith Tennakoon and his expertise team had handed over the JMO report which was conducted from the exhumed charred remains of Thajudeen to the court and according to the findings, the late rugby player supposedly may have succumbed to death either a few minutes before or soon after the car in which he was travelling was set ablaze.

According to the JMO’s findings, Thajudeen was seated in the passenger seat at the time of the ‘accident’ and he had received multiple injuries to his head, legs, stomach and neck before his lifeless body was placed in the vehicle. According to the findings, there were horizontal fractures in Thajudeen’s thigh bones which cannot be sustained by a motor accident but certainly due to assaults from a blunt weapon.

The report also says that the DNA test carried out from the samples taken from the victim’s remains tally with the deceased’s mother’s to prove the charred remains exhumed in August was that of Wasim Thajudeen. The report further states that the wounds sustained to Thajudeen’s chest, neck and head looked as if somebody has pierced these areas with a sharp weapon and there had been heavy bleeding from the neck which could have been the cause of death. The CID meanwhile had informed the Additional Magistrate that two thigh bones and some parts of sternum said to be stored in the deep freezer had gone missing. The Chief JMO, Dr Ajith Tennakoon had also told the court that the bone samples and bone fragments obtained from Thajudeen’s remains at the time of the accident have gone missing.

In the earlier post-mortem, conducted by the then Chief JMO Prof. Ananda Samarasekara states that though he made a request to two employees to place the bone samples in the deep freezer in the JMO’s office they had gone missing and there were no evidence of action taken to ensure the safety of the parts of the charred remains.

However, the two employees had told the CID that they were not instructed by the three doctors to hold the bone samples. The procedure of the institute is to label such samples, number them, record the samples, and place them in the deep freezer under the supervision of laboratory officials.

Meanwhile, Mohomed Samsudeen Thajudeen father of Wasim Thajudeen was present in court when the case was taken up on Thursday.

According to family members, this was the first time Samsudeen Thajudeen had come to courts to witness his son’s murder case proceedings. According to family members, they had no other options but to bring the father to courts as he had insisted that he wanted to be present in courts when the case was taken up. Although Samsudeen Thajudeen did not want to speak to the media, he was seen shedding tears silently when the CID and the Senior Attorney-at-law Misbha Sathar informed court how the latest investigations have revealed that his younger son’s death was not an accidental death but a murder. The CID officer meanwhile requested the Additional Magistrate to give orders to the Director General Health Services and the Chairman Sri Lanka Medical Council (SLMC) to question the former JMO for his alleged attempt to mislead the investigation process by giving false details that Thajudeen had died due to burn injuries.

Colombo Additional Magistrate meanwhile gave orders to the Director General Health Services and the Chairman SLMC to question the former JMO and to submit the reports to court.  When the Additional Magistrate instructed the CID to get foreign expertise help to get the CCTV footages cleared if there is a necessity, Senior Attorney at law Misbhar Sathar informed courts that the Thajudeen family is ready to assist the CID financially to get the foreign expertise help.

The Magistrate also wanted the CID to give the CCTV report to courts within 14 days and if more time is necessary for the investigation to inform the courts about the matter.

Meanwhile Thajudeen’s maternal uncle, Fayaz Latheef, told The Sunday Leader that the family is planning to lodge a complaint against the Narahenpita police team that conducted the investigation in 2012 and DIG Anura Senanayake with the police team in near future.

“Wasim’s sister Ayesha left for Australia a few weeks ago with her mother for a change as Wasim’s mother was finding it difficult to cope up the son’s demise. They will be returning to Sri Lanka on the 15th and will take the final decision, Latheef said. Latheef further thanked the media for not allowing Thajudeen’s murder investigation to be swept under the carpet and said that the Thajudeen family has confidence with the present judiciary system in the country and added that they are confident that justice will prevail to their departed nephew.

Meanwhile according to a reliable source from the CID, three former Presidential Security Division (PSD) personnel have now been identified as probable suspects and said they will be arrested within a few days.

“The CID is now following these suspects and we have taken all steps to arrest them once the order is given and they will not be able to leave the country,” sources said

Former DIG Anura Senanayake, who was a close confidant of the former President and his brother, the former Defence Secretary, will also be grilled by the investigators.

• Fraud allegation levelled at Justice Ministry deal during former regime

by Nirmala Kannangara

Startling revelations have come to light that the Justice Ministry during the former Rajapaksa regime had allegedly misappropriated Rs.136.3 million of public funds to form an international arbitration center.

Although a Cabinet approval had been allegedly granted to the former Justice Minister to commence an international arbitration center, the Justice Ministry under its former Minister Rauff Hakeem, had allegedly misappropriated tax payers’ hard-earned money amounting to millions of rupees arbitrarily.

It was on August 17, 2012, former Justice Minister Hakeem presented a Cabinet paper to obtain approval to start an international arbitration center in Colombo. Minister Hakeem had sought Cabinet approval to lease Level 6, West Tower of the World Trade Center (WTC) which belongs to the Board of Investment (BOI) for three years for a monthly rental of Rs.2,721, 597.76 (approximately Rs. 2.721 million). The former Justice Minister had also sought the Cabinet approval, to offer the overhaul contract of the Arbitration Center to the Sri Lanka Handicraft Board for an estimated cost of Rs.122 million.

However, the Cabinet had not granted the approval to offer the overhaul contract to the Sri Lanka Handicraft Board but given permission to the Justice Ministry to enter into a lease agreement with BOI to obtain 6,076 square feet from Level 6, West Tower for three years for carrying out the proposed plan. Meanwhile, the Cabinet had also instructed the Justice Ministry to find a suitable property in Colombo Fort, Kollupitiya or in Slave Island to construct an arbitration center and report the progress to the Cabinet which was never adhered to date.

Since the Cabinet approval was granted to obtain Level 6, West Tower of the WTC until a permanent place is constructed, it is questionable why the Justice Ministry had entered into an agreement with Overseas Realty (Ceylon) Private Limited, a Singaporean Company, to obtain Level 22, West Tower of the WTC to start the arbitration center and had paid a sum of Rs.69, 404, 229 (approximately Rs. 69.404 million) disregarding the September 13, 2012 Cabinet decision.

Cabinet decision disregarded

It is revealed that a Senior Additional Secretary (Legal) of the then Justice Ministry was directly involved in this alleged scam with or without the knowledge of former Justice Minister Hakeem. As a result, the Justice Ministry had openly disregarded the Cabinet decision (Cabinet paper No: 12/1160/ 518/ 016 dated September 13, 2012) that had granted approval to lease 6,076 sq. ft. on Level 6, West Tower at a rate of Rs. 218 per sq. ft., but entered into an agreement with the Singaporean Company for a higher rate incurring a huge loss to the country.

As per the Cabinet approval, the Justice Ministry had initially entered into an agreement with BOI on November 29, 2012 and had paid Rs.7.622 million as a security deposit and the rent for the month of December was paid through the voucher No. 398 dated February 21, 2013. Meanwhile, the said Senior Assistant Secretary had allegedly released Rs. 8.212 million more from the Ministry to pay Overseas Reality (Ceylon) as a security deposit misleading the Ministry Secretary that the Cabinet had granted permission to rent Level 22, West Tower.

“When the said Senior Assistant Secretary was questioned on September 21, she had submitted a written letter to the government auditors that there was no such Cabinet approval. Then what made this officer mislead the Ministry Secretary and obtain money to pay for the Singaporean Company. She has not only acted against the Establishment Code but also has violated government financial regulations which a government servant has no right whatsoever to do. We assume that a politician was involved in this scam. Otherwise, this lady officer could not have the ‘strength’ to cheat the government in such a big way. As a result, the Justice Ministry had paid a staggering Rs.15.834 million to both BOI and Overseas Realty (Ceylon),” sources added.

When the Cabinet approval was granted to get Level 6, West Tower from BOI, instructions had been given to pay Rs. 218 per square feet for the floor area of 6,076 sq. ft. for three years.

However, the Justice Ministry in its agreement with Overseas Realty (Ceylon) Private Limited, had allegedly agreed to pay Rs. 214 per square feet for the first year and Rs. 242 and Rs. 272 for the second and third years respectively. As a result, an additional sum of Rs. 5.395 million had been paid for 6, 076 sq. ft. floor area. Had the Justice Ministry obtained the building for Rs. 218 per a square feet, it would have cost the Justice Ministry only Rs. 47.684 million but as per the agreement, the Justice Ministry had to pay Rs.15.603 million for the first year, Rs.17.644 million for the second and Rs.19.832 million for the third year which amounted to a total sum of Rs.53.079 million. The difference between the Cabinet approved rate and the payments made to Overseas Realty (Ceylon) was Rs. 5.395 million.

According to Justice Ministerial sources, all government institutions have to obtain the Attorney General’s views when they enter into agreements and before they make payments. But in this instance, the advice of the Attorney General’s Department which comes under the Justice Ministry had not been taken. “According to clause 8C of the lease agreement, the Justice Ministry had paid Rs.14.436 million as service charges for a floor area of 6, 076 sq. ft. as at October, 2015. This is a clear violation of Section 237(a) of the government financial regulations. It is also interesting to find out as to why the Justice Ministry allowed the Overseas Realty (Ceylon) to draft this agreement and made a fee of Rs. 52, 000 as its drafting charges. Hence the Justice Ministry had violated financial regulation 835(iii) as well,” sources alleged.

“When the Justice Ministry first entered into an agreement with BOI, the Attorney General had instructed the Ministry to amend most of the clauses of the agreement. According to the Attorney General’s recommendation, the security fee has to be deposited once the agreement is implemented, and both parties have to bear cost of the stamp duty, AG’s fee, registration fee, and agreement charges as per the Clause 24 of the said agreement,” sources further said.

Meanwhile, questions have also been raised as to why the Justice Ministry had made an allegedly illegal advance payment of Rs.8.212 million through voucher No. 1384 to the Singaporean Company well before they entered into the agreement.

“This agreement is valid till July, 2016 and the rent in full had been paid, although it is two and a half years since the contract was signed, this office space had not been used for any purpose,” the sources said. Meanwhile, the contract given to refurbish Level 22 also shows that the Justice Ministry had allegedly failed to follow the proper government guidelines thus making losses to the government further.

ICTAD standards scoffed at

According to the sources, when Rs. 100 million worth of government contracts are awarded, the relevant authorities have to follow the standard bidding specification imposed by the Institute of Construction and Training Development (ICTAD). However, the Justice Ministry allegedly had not followed this procedure and offered the overhaul contract to Sri Lanka Handicraft Board.

“According to Clause 2(i) and 8(i) of Public Contracts Act No: 3 of 1987, any government contract that values more than Rs. 5 million has to be offered to those who have registered under the Registrar of Public Contracts. But surprisingly, the Justice Ministry had ignored these regulations and offered the contract to Sri Lanka Handicraft Board which is not a registered company,” the sources claimed. Meanwhile, controversy also surrounds over the decision the Board of Directors of the Handicraft Board had taken to sub contract this project to a company, which is a registered company under ICTAD C7 category. According to ICTAD regulations, the companies registered under C7 category cannot be awarded contracts worth more than Rs.10 million. But this overhaul contract was valued Rs.122 million.

“The contract to the Handicraft Board from the Justice Ministry had been offered through a letter dated on December 21, 2012 (Ref. MOJ/ B4/ Inter/ ARBI/ Center) but entered into an agreement on April 21, 2013 to the value of Rs.107.148 million. However, Handicraft Board had offered the sub-contract to Jat Holdings on April 30, 2013 for Rs.122.406 million,” the sources said.

It has also been revealed that the contractors had allegedly purchased refurbishment materials for extraordinary higher prices although they are available in the open market between 357 per cent and 947 per cent lower than that of the paid prices.

“The price of a type 1 Aeron Chair in the open market was Rs.19,950 and type II of the same was Rs. 26,600. However, the Justice Ministry had paid Rs.189,000 and Rs.196,000 respectively for the two types disregarding the market prices. The price paid for type 1 chair was 947 per cent higher and type II was 736 per cent higher than the market value. It was the same for Tampere glasses as well. Although the market value was Rs.1,555 per square feet, Rs.5, 555 and Rs.6,064 per sq. ft. the Justice Ministry had allegedly paid 357 per cent  and 390 per cent higher than that of the market price.

When questioned as to why the Justice Ministry did not take the building standard rates (BSR) into considerations when payments were made, the Chief Engineer in charge of this subject at the Ministry said he too did not agree with the estimated cost and when this was brought to the notice of the top management of the Ministry, no action was taken and had given instructions to continue with the work without any issue,” the sources alleged.

The sources meanwhile said that although they were left in dark, all details of this scam came to light after the new government came into power.

“After completing a part of the contract, the Handicraft Board had made a request for Rs. 87.606 million from the Justice Ministry to which the Ministry had released Rs. 66.839 million without obtaining the financial progress reports either from the contractor or from the Ministry Engineering Department.  A consultant fee of Rs.7 million too had been included in this payment although the contractors had not sought the service of a consultant,” the sources claimed.

Additional Secretary Ministry of Justice Sunil Samaraweera confirmed to The Sunday Leader that a scam had taken place at the Justice Ministry during the former regime and all details into this fraud had been given to the Presidential Commission of Inquiry to Investigate and Inquire into Serious Acts of Fraud, Corruption and Abuse of Power, State Resources and Privileges (PRECIFAC).

“It was a huge scam and we submitted its details to PRECIFAC and it is now under investigations. Since the matter is now being probed, I cannot make any comment about it,” Samaraweera said.

Several text messages were sent to former Justice Minister Rauff Hakeem seeking a comment. But Minister Hakeem neither sent a comment nor returned the call.

Although messages were left with the incumbent Justice Minister Wijeyadasa Rajapakshe’s personal staff seeking a comment, Minister Wijeyadasa too did not return the call nor sent a comment until the newspaper went for publication.

• Arrests of former Chief, sitting Director and DG send shockwaves to already fragile Colombo Bourse

by Santhush Fernando

Dr. Nalaka Godahewa and Dhammika Perera and Thilak Karunaratne

Sri Lanka’s capital market watchdog – the Securities & Exchange Commission of Sri Lanka (SEC) which has seen many a controversy and sent shockwaves to all corners of the investor community during the last few years shook the markets yet again when its former Chairman, sitting Deputy Director General along with another former Director/Board Member were taken to custody over an alleged financial fraud exceeding five millions rupees.

Former SEC Chairman Dr. Nalaka Godahewa was arrested along with SEC Director/Board Member Ronnie Ibrahim over an alleged financial fraud this week whilst the SEC’s suspended Deputy Director General Dhammika Manjira Perera was arrested on December four, by the Financial Crime Investigating Division (FCID) in connection with a donation of Rs. five million towards – Tharunyata Hetak, the one-time de-facto youth wing led and run by Hambantota District parliamentarian Namal Rajapaksa – son of former President Mahinda Rajapaksa.

Highly placed SEC sources told The Sunday Leader that these recent developments were due to an ongoing tug-of-war and difference of opinion between the SEC’s sitting Chairman Tilak Karunarathne, who himself was forced to resign allegedly under pressure by the former President Mahinda Rajapaksa for difference of opinion.

The Sunday Leader is in possession of documents which point that difference of opinion between the SECs two heads may have led to sitting Chairman Tilak Karunaratna to seek intervention from law enforcement authorities against the arrested trio.

It is believed that Karunaratna is a member of a committee known as the Anti-Corruption Secretariat, appointed by the Cabinet or Prime Minister’s Office to look in to and advise on matters handled by FCID. It is also learnt that Dhammika Perera is to institute legal action against Karunaratna for impropriety of procedure in sending him on compulsory leave.

Tharunayata Hetak debacle

Tharunyata Hetak Organisation is incorporated under and in terms of the Tharunyata Hetak Organisation Act No. 7 of 2011 and the objectives of the said Tharunyata Hetak are laid down in Section 3 of the said Act. These include, the following:-

(e) Identify the talents of students at rural and provincial levels in areas such as sports and music and to encourage them to excel in them by providing the infrastructure required therefore;

The Director Sports of Tharunyayata Hetak by letter dated  August six,  2013, addressed to the then Chairman of the SEC, requested a sponsorship a Rs. 5 million to defray the cost of workshops/programmes undertaken by it with the view to empowering youth in rural areas. The applicant had stated that a capital market awareness component too was included in the said workshops/programmes.

Upon receiving the said letter, Dr. Nalaka Godahewa, the then Chairman of SEC had directed Dhammika Perera to look in to the viability of granting the said sponsorship in his then capacity as the Deputy Director General/ Officer in Charge.

Thereafter, Perera and Thushara Jayaratne  Director, External Relations and Market Development of the SEC, who was then in charge of public awareness, had assessed the said request and after having discussed the matter with the then Chairman of SEC and obtained his concurrence. Perera along with Jayaratne also submitted a Board Paper recommending the proposal made by Tharunyata Hetak but limiting the sponsorship only to Rs. 3 million although Rs. 5 million had been sought stating that the said recommendation was well within the approved budget for the year 2013.

SEC approves payment

Accordingly, the Commission at its meeting held on  August 13,  2013 considered the said Board Paper and the members who attended the meeting unanimously approved the grant of the entire amount of Rs. 5 million sought as a sponsorship by Tharunyata Hetak instead of Rs. 3 million recommended (as depicted in respective minutes of the Commission meeting)

On the following day, as per the usual procedure, a memorandum dated August 14, 2013 was submitted to the then Chairman, notifying him of the implementation of, inter alia, the aforesaid board decision. The Chairman signified his approval by placing his signature on the said memorandum.

Perera by his letter dated August 14, 2013 as the Deputy Director General/Officer in Charge of the SEC informed the Director Sports of Tharunyata Hetak that the Commission had approved the grant of the said sponsorship and called for relevant particulars for arranging the sponsorship cheque as per the request of the Finance & Administration Division of the SEC since the cheque payment details were not clear and provided in the sponsorship request.

In response to the said letter, the said Director Sports of Tharunyata Hetak by an undated letter accepted the grant of the said sponsorship by conveying ‘the gratitude of the organisation and requested that the relevant sponsorship cheque be made out in favour of Ceylon Premier Sports Limited.’

Accordingly the cheque payment voucher was prepared by the Finance and Administration Division of the SEC in terms of the said Board decision and checked by the Accounts Executive as well as authorised by the Director Finance and Administration which payment voucher was then approved by the former Chairman of the SEC on August 16, 2013.

In terms of the said payment voucher prepared by the Finance & Administration Division of the SEC, the cheque was to be drawn out in favour of Ceylon Premier Sports Limited as designated by the Director of Sports of Tharunyata Hetak and crossed account payee.  Accordingly both the then Chairman and DG had signed the cheque.

By letter dated August 19, 2013, the said cheque drawn upon the Bank of Ceylon bearing No.699096 in favour of Ceylon Premier Sports Limited had been forwarded to the Director Sports of Tharunyata Hetak.

Although in the said letter an acknowledgment of the said cheque from Tharunyata Hetak was requested and an acknowledgement had not been received by the SEC, Perera by a further letter dated September 10, 2013 addressed to the said Director Sports of Tharunyata Hetak called for an official acknowledgment.

Subsequent to the said letter the Director Sports of Tharunyata Hetak submitted an official acknowledgement of the receipt of the said cheque by an undated letter.

At a meeting of the Commission of the SEC held on September 24, 2014 the decisions taken at the meeting held on August 13, 2013, inclusive of the decision to grant the said sponsorship were ratified (as depicted in the respective commission minutes).

Thereafter, by letters dated January 20, 2014 and October 30, 2014 addressed by the Director Sports of Tharunyata Hetak, to Thushara Jayaratne the Assistant Director of SEC who was responsible for public awareness, Tharunyata Hetak submitted the details of the Seminars held by Tharunyata Hetak in terms of the said sponsorship.

Sources claimed that in terms of the Section 14 B of the Securities and Exchange Act No. 36 1987, the Commission has the authority to disburse funds of the Cess fund for the purposes mentioned in the said Section and the sponsorship to Tharunyata Hetak was approved as well as disbursed by the Commission in accordance with the provisions of the SEC Act.

Similar sponsorships have also been granted by the SEC to other organisations as well during the same time of Tharunyata Hetak sponsorship following the same procedure, they claimed.

On August 10, 2015 the Financial Crimes Investigations Division (FCID) in a B report filed made Perera a suspect (with a travel ban) for alleged criminal misappropriation of funds granted to TharunyataHetak.

Sent on leave

Thereafter SEC by its letter  dated November 11,  2015 (reference SEC/DG/15/10/110) signed by the Director General of the SEC sent to Dhammika Perera by post placed the DDG on compulsory leave.

It was alleged in the letter that Perera in his capacity as the former Director Investigations and subsequently overseen by him in his capacity as Deputy Director General/ Officer in Charge has ‘failed to investigate the market malpractices (including market manipulation and insider dealing) highlighted by Surveillance Referrals, and that he has ‘failed to exercise due care and diligence in carrying out duties’ and ‘not discharging duties to achieve the core objects SEC’.

SEC sources claimed that there was absolute possibility where Perera can be singled out in respect of the conduct of any investigation by the SEC. Perera claims that the above allegations have been made against him without giving him a single opportunity of being heard violating the rules of natural justice ostensibly based on a report by a panel of Attorneys-at-Law and adds that he vehemently denies the (report in its) entirety of such unjust, unsubstantiated allegations leveled against him in the aforementioned letter due non-compliance with the following procedure:-

Alleged impropriety

In terms of the established, documented, approved procedure which is published on the SEC Website as well as long implemented practice, no single person at the Secretariat or the Commission of the Securities and Exchange Commission (SEC) either commence, conduct, terminate an investigation and/or decide on any enforcement action in respect of such an investigation as the case was always in the history.

It is common knowledge that when a surveillance referral is raised on a suspected irregularity, it should be first referred to the Surveillance Committee which comprises several senior members of the SEC Secretariat as approved by the Commission.  (i.e. up to November 2012 Director General, Director Legal, Director Capital Market Development, Director Corporate Affairs & a rotating member and from November 2012 Director General, Deputy Director General, Director Supervision and Director Surveillance were on the committee)

The said Surveillance Committee is responsible as a collective body to determine as to whether a fully-fledged investigation in to the subject matter is warranted or any other action is required.

If the Surveillance Committee decides to proceed with a full investigation, then the matter is referred to the Commission for a determination. If the Commission too approves a full investigation, then the matter is referred to the Investigation Division for commencement of an investigation.

Under usual protocol, an Investigation Officer below the rank of the Director is assigned to carry out the investigation with the assistance of any other officer/s in the Division if required and under the supervision of the Director. The investigations are conducted in accordance with a Commission approved Investigation Manual which depicts the procedure in detail.

During the course of an investigation, the Commission is kept informed of the progress of the same at the Commission meetings by way of the Divisional Report of the Investigations Division.

On completion of the investigation, a detailed investigation report is prepared by the respective investigation officer setting out the findings and evidence elicited during the investigation together with the recommendations and is submitted the same to the Investigations Committee for consideration and an appropriate determination.

The Investigations Committee is vested with the responsibility to peruse the findings and the recommendations in the investigations report and make a determination as to whether or not the Committee agrees with such findings/recommendations.

The Investigations Committee would advise the Investigations Division to conduct further investigations or improve the report if deemed necessary or refer the investigations report to the Commission for an appropriate decision if the Investigation Committee is in agreement with findings/recommendations contained in the final report.

The final decision on the investigation is then made by the Commission as to whether any enforcement action should be contemplated or such investigation to be terminated. The Commission may at this stage even direct the SEC Secretariat to conduct further investigations or any other course of action as deemed necessary.

Perera claims that it is manifestly clear that vague, unsubstantiated allegations leveled against him are baseless and can be sustained as neither he nor any other officer/member of the SEC Secretariat or the Commission can be singled out in respect of the investigations conducted by the SEC.

Allegations of harassment

Sources close to Perera cited the following as malicious treatment and harassment against the DDG.

As a long standing, well experienced professional with technical know-how, the DDG had to not only advise the SEC Chairman (i.e Karunaratna) on certain regulatory concerns but also sometimes argue and disagree with him on some issues of importance in the best interests of the industry and the institution, which ‘seemingly annoyed him’ as he was reportedly on a strict pre-conceived notion and an agenda of his own regarding the marketplace and certain investors.

In this backdrop, Karunaratna used to ridicule the DDG (i.e. Perera) at meetings where senior officials of SEC Secretariat were present particularly at the Investigations Committee meetings wherein Perera explained the evidence elicited during the course of some ongoing Investigations as well as the mitigatory factors and possible defenses, if any, which could be taken up by the parties who were under investigations.

“This was done as a part of my duty as the then Director Investigations and also as an experienced as well as an impartial investigator who had gathered at least 16 years of direct service pre dominantly in the area of investigations in relation to the securities market,” he claims. “Even though the above was done in good faith and in line with the duties and responsibilities cast upon me in my official capacity, it appeared to me that Karunaratna was on a different personal agenda which is not in line with the advice/opinion expressed by the professionals who were involved in the subject area.”

Perera added that this was nothing but personal vendetta against him and claims that a few days prior to issuing of the letter imposing compulsory leave (dated November 11, 2015), Karunaratna sent a message to him through Mrs. Ayanthi Abeywickrama, Director Legal of the SEC, to the effect that the ‘harassment’ caused to him would halt if he tendered his resignation and step down from his position at the SEC. Moreover, on November 11, 2015, the SEC had reportedly made a similar intimation that no action will be instituted against Perera if his resignation letter is handed over.

Meeting with President

It was in this scenario that the former President Mahinda Rajapaksa called for an industry meeting around July23,  2012, whereat all the Chief Executive Officers, Senior officials of both SEC and the Colombo Stock Exchange, certain high net worth investors, senior officials of the Government as well as some politicians had been present.

Perera claims that during the course of this meeting, responding to certain queries raised by the former President regarding the role of the SEC as well as suspected leakage of important, confidential information, Karunaratna had attempted to implicate Perera at which stage the former President had reportedly disagreed with the SEC Chief in front of the entire audience.

Thereafter, Karunaratna was compelled to resign in or around August 2012 and started slamming the market watchdog.

Under these circumstances, the above situation was brought to the notice of the then Acting Director General for necessary action to safeguard the interests of the Institution as well its Staff and therefore an Internal Memo to that effect  was submitted to the ADG with a copy to Director Finance & Administration of the SEC.

Deprivation of  SEC DG position

Further, vide SEC’s letter dated  August 15, 2013 addressed to the Secretary, Ministry of Finance & Planning, the Commission, having followed the due process in a fair and transparent manner had recommended Dhammika Perera to be appointed as the Director General of the SEC in terms of section 42 of the SEC Act based on his suitability for the said position and the assessment of his performance in the then capacity of Deputy Director General and the Officer in Charge (i.e. de facto Director General). As per Section 42 of the SEC Act which is the applicable law in respect of appointment of the Director General, “the Minister shall on the recommendation of the Commission, appoint a Director General who shall be its Chief Executive Officer”. In the circumstances, once the recommendation is made by the Commission, the Minister doesn’t have a discretionary power over the decision. The said recommendation was in effect even when Karunatatna was reappointed as the Chairman of the SEC in January 2015, claims Perera.

However, the Commission had advertised in the Sunday Newspapers on February 22, 2015 inviting applications for the position of the Director General despite the fact that Perera had been already recommended by the Commission for the said post. Thereafter Perera had officially intimated to Karunaratna as the Chairman and the Commission members on February 26, 2015 informing them of the above situation and claimed that he had been ‘unjustly and unlawfully deprived’ of his due position

Furthermore, on assumption of duties by Karunaratna as the Chairman of the SEC for the second tenure in January 2015, he had already publicly announced through media his intention of appointing a ‘new Director General’ and claimed that this signified his intention of depriving Perera of his purported lawful position.

Tilak Karunaratna Hits Back

Refuting speculation that Dhammika Perera and /or Dr. Nalaka Godahewa could sue the SEC, Commission Chairman Tilak Karunaratna said that any citizen in Sri Lanka could seek course of justice. “Every person has the right to go to Courts.”

Answering a query as to whether SEC’s probes into these frauds will continue he had this to say.

“Investigations against Perera (and others) were conducted by the FCID independent of the SEC. The Commission will continue investigations into these irregularities. SEC decided to send him (Perera) on compulsory leave considering the seriousness of the charges,” opined Karunaratna.

“However we have not removed him. He is still receiving his full salary along with all allowances,” retorted the SEC Chief.

Riddled with interference

• Anyone who merely looks into the timeline of SEC can ascertain whether it was able to function without any hindrance.
• 2015 December 7- Former SEC Chairman Dr. Nalaka Godahewa and two others were remanded until December 14 by Colombo Fort Magistrate Priyantha Liyanage
• 2015 December 4- Ex-DDG – Dhammika Manjira Perera along with another former Director- Ronny Ibrahim arrested over the fraud
• 2015 April – Colombo Stock Exchange (CSE) is requested by SEC to provide information on suspicious transactions conducted prior to 2013
• 2015 March – The Media reports of a former Commission official traded in stocks whilst holding office in breach of SEC laws.
• 2015 February – Former Secretary to the President Lalith Weeratunga’s wife Indrani Sugathadasa reappointed as the Chairperson of the Insurance Board of Sri Lanka, which she headed along with the SEC, prior to being forced to quit.
• 2015 January – The UNP Government announced its intentions to reappointed once beleaguered SEC chief Tilak Karunaratne. After taking over the reins, Karunaratne noted that the Commission had a ‘poor record’ with the archaic SEC Act being one reason for this. The new SEC Act would not allow serious frauds to be ‘compounded’ or settled with a fine.
• 2013 September- Dr Harsha de Silva (currently the Deputy Minister of Policy Planning) charges that SEC was planning to compound undisclosed securities fraud by some billionaire investors… we nevertheless believe it is the SEC’s duty, as the regulator, to take swift action against fraudulent activities… says the Deputy Minister.
• 2013 March 23 – Dr Hareendra Dissa Bandara tenders his resignation stating reasons ‘based on principles’
• 2013 March – Amidst charges that Commission was turning a blind eye to rampant market manipulations and dragging probes, the parliamentary watchdog – Committee on Public Enterprises (COPE) summons top SEC officials and was informed that the proposed amendments to the SEC Act were forwarded for the Attorney General’s opinion. 2012 September – Karunaratne alleges ‘daylight robbery’ by a ‘stock market mafia’ closely connected to leaders of previous Government, including Rajapaksa.
• 2012 August 28 – Dr Nalaka Godahewa is appointed as the new Chairman under highly controversial circumstances. He is alleged to being well-connected to the Government.
• 2012 August 17- Thilak Karunaratne resigns reportedly under duress less than one year after taking over the reins of SEC.
• 2012 May- Current Finance Minister Ravi Karunanayake writing to COPE Chairman DEW Gunasekera pays a glowing tribute to deposed SEC Chief Mrs. Indrani Sugathadasa, who resigned in protest of the workings of the alleged stock market mafia and implores that she and others responsible should be summoned before COPE.
• 2012 April – Dr D. B. P. Hareendra Dissabandara appointed as Acting Director General of the SEC
• 2011 December 8 – Former parliamentarian Thilak Karunaratne appointed as SEC chief. 2011 December 1- Karunaratne’s predecessor Indrani Sugathadasa, who was the wife of the then Secretary to President Lalith Weeratunga quits citing a matter of principle and conscience.
• 2011- With allegations of manipulation intensifying SEC imposes limits on the transaction of shares of several counters and later on commences investigations into alleged frauds. However, just as probes began the then SEC Director General Malik Cader was ‘kicked upstairs’ and made Senior Advisor on Capital Market Development at the Ministry of Finance.
• 2002 February – SEC creates history when it became the first capital market regulator in the world where its own incumbent Chairman (Michael Mack) was being investigated for alleged insider dealing in a company in which he was once a Chairman (i.e. Aitken Spence). Two other former Aitken Spence Directors – Norman Gunewardene and Manil de Mel are also probed into. SEC also inquires into the stock transactions of Gunewardene’s son – Ajit Gunawardene, who was then the Colombo Stock Exchange Chairman. 2001- Out of seven allegations of insider dealing probed by SEC, five cases were terminated due to lack of evidence.

• Presidential directive ignored at NGJA

by Nirmala Kannangara

National Gem and Jewellery Authority and Circular sent by the President’s Secretary

Pasikudah, the famous tourist destination in the Eastern Province now appears to have become a location where public servants are expected to gain ‘motivation’.

As such, the National Gem and Jewellery Authority (NGJA) is reportedly taking 121 employees and 169 family members, amounting to a total 290 people, to Pasikudah for the sole purpose of ‘motivation’, allegedly under the instructions of Director General M.P.N.M. Wickremesinghe and allegedly spending over a staggering Rs.3.5 million of tax payers money.

To add to this motivation, the Director General has allegedly requested gem miners and gem businessmen in the country to assist this motivational programme with liquor, buses for transportation and cash to which the Regional Managers and Field Officers have reportedly shown their displeasure.

“When we ask them to provide us with buses, liquor and cash for the annual trip, they willingly assist us but later they seek undue advantages from us which the DG cannot understand,” one Field Officer said on grounds of anonymity. Director General Wickremesinghe who was appointed to the NGJA a few months before the general election has come under severe criticism for allegedly spending gem authority funds unnecessarily from the time he assumed duties and according to the employees, if he is allowed to spend the institution funds lavishly, the NGJA would become another cash strapped state institution soon.

Meanwhile, NGJA employees who are against this wasteful expenditure, told The Sunday Leader that although on record it says the journey will cost Rs.3.5 million, off the records the expenditure has been estimated as Rs.4.5 million. According to sources, even though there are more than 300 employees at the NGJA, most of them have allegedly objected to this expense. Reportedly, only 121 employees had agreed to join the trip along with their family members.

The Director General of the Gem Authority confirmed to The Sunday Leader that the authority has planned to spend Rs.3.5 million for the annual trip and added that it is an annual event which was carried out over the years.

“This is not a new programme which I initiated. Even the previous managements had spent on annual trips. Earlier, the annual trip was a day trip and I wanted to make a difference and to take the staff and their families for a two day trip in order to motivate them,” the Director General said. When asked as to why the authority has decided to spend such an amount for a trip, Wickremesinghe said that it is the best way to motivate the staff members. “Money is not everything and we have to spend lavishly to make our staff and their families happy. Only by making them happy we can expect the employees to work hard and bring more revenue to the institution,” Wickremesinghe said.

Despite President Maithripala Sirisena’s recent directive to all Ministry Secretaries, that all government institutions – Ministries, Departments and Corporations should refrain from spending unnecessarily, NGJA has taken steps to spend lavishly on the proposed annual outing which is scheduled to take place after Christmas.

From four directions

The journey is to commence on December 26 and proceed to Pasikudah from four directions. One journey will start off from the Colombo Head Office via Fort, Peliyagoda, along Kandy Road to Ambepussa, Kurunegala, and Polonnaruwa to the final destination while the second route is scheduled to start off from the head office to Pasikudha via Kollupitiya, Rajagiriya, Battaramulla, Kaduwela, Delgoda, Belummahara, Ambepussa, Kurunegala and Polonnaruwa. The third route will be taken from Katubedda, Panadura, Horana, along the high way through Gelanigama entrance, Kottawa, Awissawella, Galigamuwa along the Kandy Road to Ambepussa, Kurunegala, Polonnaruwa to Pasikudha while the fourth rote will be taken from Ratnapura, Awissawella, Galigamuwa, along Kandy Road to Ambepussa, Polonnaruwa to Pasikudha. According to sources, all married employees can join the trip with their spouses and children while unmarried employees can bring their parents. When asked as to why the Director General of NGJA had allegedly violated the Presidential directive which was sent to all government institutions in September, Wickremesinghe said that there is nothing wrong in taking the employees on a trip if the institution can afford the expenses. “There is nothing wrong in taking our employees a trip. We are not borrowing money but spend from our budgetary allocation,” Wickremesinghe said.

It is surprising to note as to how an institution that comes under President Maithripala Sirisena who is the Minister of Environment has ignored the circular issued by the President’s Secretary P.B. Abeykoon on September 25, 2015 that made a directive not to spend extravagantly for any occasion including state occasions. The circular (No: SP/SB/ 07/ 15 ) dated September 25, 2015 which had been sent to all Ministry Secretaries further states as thus, To all Ministry Secretaries on holding state functions, seminars and other occasions. It has now become a practice that all ministries, state departments and institutions hold state functions, seminars or any such occasion in luxury hotels spending exorbitant amounts of state money.  It has been the same practice even in projects that are functioning from foreign grants/ loans too. This money is meant for the countrys development purposes but not for tamashas in super luxury hotels.

“If there is a genuine necessity to have a function, there are hotels and seminar halls in all districts of the country that can be used for a nominal fee. For the functions in the Colombo district Sri Lanka Foundation Institute, the BMICH or Sirimavo Bandaranayake Conference Hall could be used.

“Hence, I request you to inform all institutions that come under your purview to follow these guidelines strictly and to minimise the state expenses and to make use of the saved funds for the country’s development purposes”,  said P.B. Abeykoon, Presidents Secretary.

Accounts department unhappy

Meanwhile, it is learnt that the Accounts Department at NGJA is also unhappy with these expenses.

“We have learnt that the Head of Finance had told the board of directors that this amount cannot be borne by the institution and to minimise the expenses. We have a Rs.2 million budgetary allocations for recreation programmes per year. Up to now Wickremasinghe has spent another Rs.1 million to give army training to the employees which was a total failure.

This budgetary allocation is not only for the annual trip but including the January first celebration, the New Year celebration, Vesak Festival and other religious festivals. To spend Rs.4.5 million for a trip is questionable. If buses are given free by gem businessmen and liquor and cash are being collected from gem miners it is hard to believe that such a large amount of money is being spent for a two day trip.

We also came to know that the organisers are getting a commission from the hotel where they are going to stay over night on December 26,” sources said.

According to sources, the breakfast on December 26 will be taken from Hotel Sudu Araliya in Polonnaruwa which belongs to President Sirisena’s brother while they will stay overnight at one of Amaya chain of hotels in Trincomalee. When contacted, Head of Finance Ms. Nalini to find out whether she has informed the board of directors that it is difficult to bear the cost for the trip, Ms. Nalini said that she is not aware of it and cannot make any comment.

“I do not know about this matter and cannot make any comment,” she said. Meanwhile, further allegations have been leveled against the Director General for allegedly spending over Rs.1 million to give army training to NGJA employees and also for travelling abroad for a gem exhibition without the Chairman’s approval.

“Our Chairman Asanka Welagedara was in hospital with dengue a couple of days ago and he wanted the Director General not to go abroad as he (Chairman) was unable to attend to official duties. Despite this request, the Director General still went ahead and travelled to China and returned only three days ago. In addition the DG is further accused of spending more than Rs.1 million to give army training for our employees. This is a waste of money,” sources added. Refuting allegations, Director General Wickremesinghe said that the army training was successful and added that the money the NGJA paid had been remitted to the disabled soldiers’ fund.

“Isn’t it a good deed to help out the disabled solder’s welfare? Those who underwent the army training say it was a good idea but those who refused to take part in this training are now leveling allegations against me,” he added. Meanwhile, Additional Secretary Ministry of Environment N.K. Nemmawatte when contacted said that the ministry is unaware of the NGJA’s plan to spend Rs.3.5 million on a two day trip, despite the Presidential Secretary’s circular.

“Although, the state institutions have to comply with the Presidential Secretary’s circular, if the board of directors has taken such a decision, the Ministry cannot intervene. We can report this to the President who is the subject minister and ask them to send us a clarification as to why they failed to comply with the guidelines,” Nemmawatte said.

• Delay in implementing recommendations of  Weliamuna report

by Nirmala Kannangara

Questions have been raised as to what action has been taken by the management of SriLankan Airlines to implement the ‘Weliamuna report’, prepared by eminent advocate J.C. Weliamuna which specifies corruptions that had taken place at the airlines during the former Mahinda Rajapaksa regime.

It is over eight months since the report had been submitted to the government but any action taken to implement the Weliamuna recommendations is yet to be seen.

“Although some say actions have been taken to implement the Weliamuna recommendations and they are being carried out very slowly, some are accusing Chairman Ajith Dias and the Board of Directors of not taking any steps to hold inquiries against those who were involved in corruptions hand in glove with the Rajapaksa family,” sources at the airline said.

According to the sources, other than removing Captain Druvi Perera who was once accused of a serious flying mishap and was later promoted to a newly created position – Chief Operations Officer – by the former Chairman Nishantha Wickremasinghe, no other transfers or disciplinary actions have been initiated to date.

“Although some claim that strict action will be taken against those whose names have been highlighted in the Weliamuna report, there are a few instances where plans have been mooted to give certain Rajapaksa loyalists further promotions by the airline Chairman, Ajith Dias,” the sources alleged.

According to the sources, a former military officer who had walked into the SriLankan Human Resources Department a few years back with a letter from the then Defence Secretary, Gotabhaya Rajapaksa, was allegedly recruited immediately even though he had not possessed the required qualifications. He is now tipped to be promoted as General Manager, Airport Services by Chairman Ajith Dias. “Although a few board members have opposed the Chairman’s decision, it is said that some have given approval for this promotion. If the news we get is true, how can we say Weliamuna recommendations are being implemented,” the sources claimed.

The sources further accused Chairman Dias of not taking any actions against those who were canvassing for the members of the former first family during the previous elections under the Rajapaksa regime.

“A particular officer, who was once the manager In-flight Services and Head of Cabin Crew was involved in many charity projects during the previous regime and was accused of funding a youth organization of a UPFA MP from the Hambantota District from the money he had collected from charities. As a token of appreciation, the MP had allegedly got him promoted to a high post at International Aviation Academy (IAA). The officer allegedly had in turn promised to get the IAA to the Hambantota region. This officer is still in the same post and no action had been taken even against him,” sources said.

According to the Weliamuna report, a young cabin crew member had allegedly been released to work at UPFA MP Namal Rajapaksa’s Colombo office but had been paid by the airline including allowances for cabin work.

“Although she was attached to the Namal Rajapaksa’s office and never stepped into airline work, the report says, she had been paid Rs. 4.2 million. The airline has failed to recover the overpaid salary so far, and they had not even questioned the officers who released her for Rajapaksa political work,” the sources alleged.

It is also learnt that action had not been taken against the appointments of certain officials to the airline security department. According to the sources, a retired army officer, a loyalist of former Defence Secretary Gotabhaya Rajapaksa, had allegedly been recruited for a higher salary, but he engaged full time in Rajapaksa’s political work. “Although the Weliamuna inquiring panel recommended terminating the services of those who have been recruited on the request of members of the former regime without following the stipulated requirements, none of them have yet been removed. It is these employees who are now jeopardizing the airline activities and giving inside information to the Rajapaksas. When selecting cabin crew members, those who repeatedly failed the tests were allegedly employed as the airline had to accommodate the names on lists sent by several like Namal Rajapaksa, Sajin Vass Gunawardena, and former SriLankan Chairman Nishantha Wickremasinghe. There are about 25 cabin crew members from the Hambantota District who cannot understand English nor can speak English with foreign travellers. Even to date, the pre-flight briefings are conducted in Sinhala for these crew members if they are going on board. This is the plight of SriLankan Airlines today. Although we expected this to be changed after Yahapalanaya government came into power, nothing has been done up to now,” the sources alleged.

However, another group of employees said they are happy with the way the present management is carrying out the Weliamuna recommendations, but they added that it will take few more months to conclude implementing the recommendations.

The sources praised the management for posting the penalized airline official to Dubai as Sri Lankan country manageress. “This lady officer who worked in London was genuine but was brought back to Sri Lanka by President Mahinda Rajapaksa as she wanted to stop Yoshitha Rajapaksa’s motor spare parts being sent to Sri Lanka for free from London. After the fall of the Rajapaksa regime, when the new management took over office, this officer was posted to Dubai as the airline country manager,” the sources said.

The sources further said the airline website which was earlier maintained by a company owned by UPFA MP Namal Rajapaksa was taken back by the airline and is now operated by the IT Department. “The airline call center – Hello Corp – too had been operated by this same company, but the management cannot take it back as the agreement lapses only in October 2016. Until then this company will carry out the call center work and once their contract lapses, new contracts would be offered to,” the sources claimed.

Many attempts by The Sunday Leader to contact SriLankan Airlines Chairman, Ajith Dias failed. Although a message was left with Dias’ secretary seeking his comment, there was not a telephone call or a message until the newspaper went in for publication.

However, Senior Advocate J.C. Weliamuna said that although he submitted the report to the government a few months ago, he knew nothing whether the recommendations were implemented. “Whatever the task I was entrusted, I carried out to the best of my ability with the help of the airline staff. It is now up to the Ministry and the Chairman and Board of Directors of SriLankan Airlines to do the needful to bring the culprits to book and recover the unnecessary expenses done by the respective individuals,” he added.

When asked whether he thinks that the report had been ignored by the SriLankan Airlines Board of Directors, Weliamuna said it is possible as nothing can be seen to suggest that the recommendations are being implemented.

by Dinuk Samarasinghe

Colombo Stock Market

New probes are to be initiated against errant officials of Sri Lanka’s capital market watchdog – Securities & Exchange Commission of Sri Lanka (SEC) – including its defamed Former Chairman Dr. Nalaka Godahewa, several other officials and numerous high net-worth individuals by several law enforcement agencies and regulatory bodies.

According to a highly-placed source, fresh multi-pronged investigations are to be initiated by several agencies into alleged frauds and corrupt activities of onetime Chairman Dr. Nalaka Godahewa, sitting Deputy Director General Dhammika Manjira Perera, former Director/Board Member Ronnie Ibrahim and several other individuals for inter alia insider trading.

“SEC, FCID (Financial Crimes Investigations Division) probes will continue. In addition authorities will see the possibility of initiating action with the Bribery Commission and/or Presidential Commission Investigating into Large Scale Corruption and Fraud (PRECIFAC). Separate probes would be initiated by the Inland Revenue Department to see whether these individuals were engaged in any tax evasion activities. In addition, authorities will look into the possibility of instituting fresh prosecution with the Colombo Magistrate’s Court and/or continuing existing criminal action,” he added.

In July, Colombo Magistrate’s Court directed SEC to submit detailed report on share transactions since 2008 of Dr. Godahewa, along with three other individuals, in relation to alleged irregularities in Lanka Hospitals shares.

Appointment causes uproar

On September 2, 2012, The Sunday Leader exclusively reported that the appointment of Dr. Nalaka Godahewa as Chairman of the Securities Exchange Commission far from putting the controversy surrounding pump and dump and market manipulation at the Colombo Stock Exchange at rest, has caused an uproar amongst seasoned investors. (See www.thesundayleader.lk/2012/09/02/new-sec-chairman-a-pawn-of-the-stock-market-mafia/)

In the Annual Report for 2011 of Colombo Land & Development Plc, Godahewa is listed as the seventh largest shareholder holding 2,301,000 shares – valuing the shares at the end of 2011 at Rs 126.3 million. The shares are listed as being on lien to Seylan Bank.

The Quarterly Report of Colombo Land & Development Plc for March 2012 shows Godahewa holding the same portion of shares but the value of the shares had crashed to Rs. 39 from the 2011 close of Rs. 54.90. A notional loss of Rs. 36.5 million, however, should only have made Seylan Bank become alert as a tranche of 2,301,000 shares are on lien to them. If Seylan Bank was exposed to 50 per cent of the holding in 2011 and lent Rs. 60 million to Godahewa by March 2012, the value of those shares had dipped by Rs. 36.5 million or more than half of the amount Seylan Bank lent Godahewa – one time Director of the bank. The Quarterly Report for June 2012 shows Godahewa still holding to his 2,301,000 shares but the share value had dropped below March 2012 levels. In June 2012, the share was trading at Rs. 32.20 and Godahewa was staring at a notional (paper) loss of a staggering Rs. 52.3 million – perilously close to the Rs. 60 million he obtained from Seylan Bank. On the basis that Seylan Bank granted a loan of Rs. 60 million when the shares were worth Rs. 126.3 million, (keeping in line with the norm of 50 per cent although we cannot establish whether as a Director of Seylan Bank at the time Dr. Godahewa received preferential treatment).

In 2012, according to documentation publicly available from the Colombo Stock Exchange under statutory disclosure rules, Dr. Godahewa is reported as having made several purchases of stock in Colombo Land: 9,100 shares at Rs. 30.00; 35,300 shares at Rs. 30.50. None of these shares are listed as having a lien to any bank. According to the Inland Revenue Department, whilst capital gains realized on investments on the Stock Exchange are not ordinarily subject to income tax, monies utilized to service loans will be deemed to be income and taxed accordingly.

The Sunday Leader also reported at the time that many concerned citizens were of the view that Dr. Godahewa’s continuation as Chairman at the Sri Lanka Tourism Development Authority was unconstitutional and that his appointment at SEC displayed a very high degree of ‘conflict of interest’.

Errant officials arrested

On December 7, Dr. Nalaka Godahewa was arrested along with onetime SEC Director/Board Member Ronnie Ibrahim over a major financial fraud whilst SEC’s suspended Deputy Director General Dhammika Manjira Perera was arrested on December 4.

They were arrested by the FCID in connection with a donation of Rs. five million towards – Tharunyata Hetak, the one-time de-facto youth wing led and run by Hambantota District Parliamentarian Namal Rajapaksa- son of former President Mahinda Rajapaksa.

However, The Sunday Leader reported last week that these recent developments were apparently due to an ongoing tug-of-war and difference of opinion between SECs sitting Chairman Tilak Karunarathne, who himself was forced to resign allegedly under pressure by the former President Mahinda Rajapaka for difference of opinion. (See http://www.thesundayleader.lk/2015/12/13/sec-controversy-heats-up/)

SEC probes to continue

Last week speaking to The Sunday Leader, Incumbent SEC Chairman Tilak Karunaratna said investigations against Perera (and others) were conducted by the FCID independent of SEC, whilst Commission’s probes into these frauds will continue.

“The Commission will continue investigations into these irregularities.” (See http://www.thesundayleader.lk/2015/12/13/sec-controversy-heats-up/)

However, a Finance Ministry official was unable to confirm whether any investigations would be initiated by the Ministry. Finance Minister Ravi Karunanayake was unreachable at the time the paper went into press.

• Hirunika’s Defender Jeep Abduction Saga

by Nirmala Kannangara

Hirunika’s security personnel abducting the employee of Lucky Star

After the revelation of how Colombo District UNP Parliamentarian, Hirunika Premachandra was involved in an abduction in broad day light, questions have been raised whether the much feared white van syndrome has now been replaced with Defender Jeep phobia.

While those who knew former MP, late Bharatha Lakshman Premachandra claim that it is case of like father like daughter while some accuse the junior Premachandra as taking the law unto her own hands. “It was Hirunika who criticised the previous regime most, for their white van culture and now she has proved that she too is equally the same by abducting people in her own black coloured Defender Jeep,” a resident of Gothatuwa, Premachandra’s constituency said.

Meanwhile the Police Department had come under severe criticism for not arresting Premachandra but arresting the others who carried out the MP’s instruction on December 21. Amila Priyanga – a salesman at Lucky Star, Baseline Road, Dematagoda was dragged by Premachandra’s underworld goons and had been taken away in a black colour Defender Jeep bearing registration number 62-1859 allegedly owned by the MP.

According to the owner of Lucky Star clothes shop, Abdul Carder Mohommed where Amila is employed, one of the employees had informed him that a group of men were trying to drag Amila forcibly.

“I heard Amila shouting and rushed to the scene and asked them as to why they were trying to take him away and wanted my employees to stop these people. It was at this moment those people told me that they were from the Special Task Force (STF). Knowing how decent the STF personnel are, I wanted them to show me their identity cards to which they shouted at me and dragged Amila towards a black coloured jeep. I too followed Amila to the Jeep and saw weapons in the vehicle in which they abducted the youth,” Mohommed said.

Mohommed who got this abduction ‘drama’ recorded on his mobile had immediately called the police emergency to inform of the abduction. “Three police teams came immediately and when I gave them the registration number of the Defender Jeep, and going through the surrounding CCTV camera images, they had learnt from the Department of Motor Traffic that the vehicle was registered under MP Hirunika Premachandra’s name. They helped me to trace where Amila had been taken and wanted me to lodge a complaint with the Dematagoda Police,” Mohommed said.

Mohommed further said that he is planning to file a case against Premachandra seeking compensation for the loss he incurred on that day. “Since it was Christmas time, there were many customers in my shop. With this incident all of them had left without purchasing goods which was a big loss to me. I am a person who has helped Bharatha Lakshman in his election campaign and I know the underworld goons who worked for him. In fact I have given them money. Since I had a good rapport with Bharatha Lakshman, I named my cloth shop after him- Lucky Star. When his own daughter was involved in harassing one of my own employees I was disheartened and I will not withdraw my complaint as urged by Hirunika Premachandra,” Mohommed claimed.

However a high ranking Senior Police Officer on conditions of anonymity said the reason why the police did not arrest Premachandra was that her intention was not to harm anybody but to settle a family matter amicably.

“Since her intention was not harmful, the police cannot arrest her, and rightfully they have sought the Attorney General’s advice for further action,” the official said.

Meanwhile a leading lawyer who wished to remain anonymous told The Sunday Leader that MP, Premachandra who is an attorney at law has acted beyond her powers to settle complaints like how her father did.

“If this person whom Premachandra and her underworld gangs abducted eloped with a married woman, it is up to the two families to lodge complaints and get the matter solved with police interference. Who is Hirunika to get involved in this? It is said that one of her underworld goon’s wife was living with Amila. They are not babies but adults. If Amila did not force this woman to live with him and if she had come willingly no one can force them. Hirunika is now showing his father’s colours and wants to become yet another ‘thug’ in Kolonnawa,” sources added.

According to sources, when the police have clear evidence how Hirunika contradicted her own statement given to the police and then later at the press briefing, the police should have arrested her immediately without seeking the Attorney General’s opinion.

“Had this was done by a layman, will the police allow the person who gave orders to go scot free? Now there is an independent police commission. Why cannot the police commission take action against those who have failed to arrest Hirunika for aiding and abetting this abduction which is a criminal offence,” sources claimed.

Soon after this incident occurred, Hirunika held a press conference where she admitted that one of her supporters complained to her that his wife had eloped with a man with mutual consent and had wanted her to get back his wife claiming that he had not lodged a police complaint as he believes that the Police too cannot interfere as they have eloped with mutual understanding.

“She openly contradicted with what she told to the police regarding her involvement in the abduction. Was it because she is a lawyer and now a MP, that she has taken the law unto her hands? It was not so long ago she came to power promising to uphold good governance. Instead of resorting to the jungle law, she should have got the Police to settle the matter,” sources added.

Meanwhile Amila Priyanga told The Sunday Leader as to how three well- built men came to his work place on December 21 around two pm and dragged him to a Defender Jeep without telling him where they were taking him.

“Since I saw the man who is my girl friend’s husband with those who came to drag me, I knew why they were taking me but it was a puzzle as to where they wanted to take me. My boss who was busy at that time immediately rushed to the scene when he heard me shouting. If not for him, the thugs would have killed me. They got scared to kill me as the police started calling Hirunika on her mobile to find out as to why I was abducted in her jeep,” he added.

According to Amila, he had received many hard blows to his head while he was taken to Hirunika’s Kolonnawa office and still very often gets dizzy and nauseous whenever he bends his head down.

“Except for the driver I can remember all the other eight who assaulted me. When the Defender stopped in front of Hirunika’s Kolonnawa office there were many people who have come to meet the MP. They bear testimony as to whether Hirunika was in her office or not as claimed by her that she was not aware of this and was taking part at a ceremony at the Colombo Municipal Council function. This is all lies. She was in the office and was talking to some people. No sooner she saw her underworld thugs dragging me to her office she wanted those who were in her office to go out and took us in. She was wearing a saree and was seated on a chair. She then came towards me and sat on the table like a man and asked several questions about my affair.  She then wanted me to bring my girl friend  to her and threatened me not to run away on my way to bring my girl friend and also said that if I continue to have an affair  with her, she knows what to do and she is not bothered about the police, claiming that she has the ‘power’ to do what she wants. I was also told that they will get me arrested claiming that I was in possession of illegal drugs,” Amila said.

Amila had met this lady six months ago and she had continuously told him that she cannot stay with her husband as he sexually abuses her after watching porn films every day. “She wanted to stay with me a few months back but I did not persuade her. It was on December 20, she came to stay with me with her belongings claiming that she cannot stay with the husband anymore. Even when Hirunika questioned her she said that she cannot go back to her husband,” Amila claimed. Amila further said that Hirunika had allegedly threatened him to abduct him again from any corner in the country if he continues to have an affair with her.

According to Amila, Hirunika had told him that she is a lawyer and she knew how to escape from the law and will abduct him once again even if he goes hiding.

“When she received calls from the police about my abduction, she told me that my boss had lodged a complaint with the Dematagoda Police and wanted me to get my boss to withdraw it. She wanted me to tell the police that they didn’t hurt me nor threatened me and sent me back safely,” he said.

According to police reports, this is not the first time Hirunika had threatened and intimidated people. In March 2013 a businessman in Borella had allegedly been threatened and assaulted by Hirunika and her underworld thugs at his business premises. She was later arrested and released on bail.

Hirunika and her loyalists involved in the Borella incident were issued noticed to appear in Magistrate Court number 2 on  March 27, 2013, where she was warned by the then Colombo Additional Magistrate to appear in court in a decent attire when she appeared in courts dressed in pants and a see-through top which was inappropriate for court.

Meanwhile, UNP General Secretary, Minister Kabir Hashim said that disciplinary action will be taken by the UNP against its member Hirunika Premachandra if she found guilty of being involved in the abduction.

When asked whether the UNP can take disciplinary action against Premachandra, the minister said the party has that right because she contested under the UNP ticket.

Meanwhile police Spokesman ASP Ruwan Gunasekera said that the police department would not hesitate to take legal action against Premachandra if the investigations found evidence that she had aided and abetted the Dematagoda abduction. “We have to follow the proper procedure to find out how she was involved in this abduction. Since she was not in the CCTV footages we cannot arrest her but we have sought the Attorney General’s opinion in this regard,” the Police Spokesman said.

Meanwhile a senior Customs Officer who wished to remain anonymous said as to how Hirunika’s father attempted to get certain illegal drugs cleared from customs. “The late Baratha Lakshman Premachandra on two occasions sent messages to us to meet him when we were in the process of detaining Kerala ganja, babul and even other illegal drugs at the Colombo airport. We got messages from the airport staff that Premachandra was asking us to come and meet him. Knowing why he was calling us we never went to meet him and had detained large haul of these illegal drugs. This is how senior Premachandra acted and now his daughter too is following the father’s footstep which is not a good move,” the customs sources said. All attempts to contact Hirunika Premachandra for a comment failed. Later a text message was sent to her seeking her side of the story about the allegation leveled against her. However Premachandra did not respond to the text message until the newspaper went for publication.

Hirunika Premachandara and Mervyn Silva

Just like the infamous former Rajapaksa confidante and court jester Mervyn Silva, Hirunika Premachandra has also made news. However, there is a stark difference between Hirunika Premachandra and Mervyn Silva.  Although Hirunika states that there was no ‘forced abduction,’ CCTV footage shows a person being dragged forcibly and being pushed into a defender. Thereafter,  her security  ‘did not’ forcibly abduct him but she nevertheless presented her bodyguards and the defender to police. T

This is one big difference between Hirunika and Mervyn Silva. Hirunika does not have a track record of committing habitual offences and  she accepted her mistake in public. This shows that she is a cut above Mervyn Silva.

However, she is no different to former MP Silva from being a ‘Law’ unto herself. Mervyn Silva always thought that he was sent to Kelaniya by the gods to administer justice. As such the opening and closure of bars, punishing public officials who do not engage in dengue mitigating activities, resolving issues at Sri Lanka Rupavahini Corporation, stoning MTV/ Sirasa, punishing journalists, holding temple possessions were aLl carried out under his purview. He had a mercenary army under the guise of bodyguards during the Rajapaksa regime.

The United National Front for Good Governance (UNFGG) was brought into power in order to throw Mervyn Silvas into the dustbin. People wanted a true change in the system. However, remnants and relics of the previous regime are still existing.

When a married woman elopes with another man her husband goes to police. This is in accordance with the Law. If someone elopes on his/her own  the police cannot interfere and that falls into the ambit of Civil Law. Options available for a beleaguered spouse would be to opt for separation or divorce or mediation. However, during the previous regime the police engaged in all and sundry. Politicians like Mervyn Silva and were mere pawns in his game.

One such husband left ‘high and dry’ by his reply to the  police went to meet Hirunika’s security detail as she had gone for the 150th anniversary celebration of the Colombo Municipal Council.

Security  thought it is best to take the Law into their own hands and went looking for the ‘criminal’ in the Parliamentarian’s defender. Hirunika repeatedly stated that all this happened without her knowledge.

The bodyguards went to the clothing store where the alleged criminal is employed and ask him to come outside to resolve the matter. Possibly after the alleged criminal refuses to go along with them he is hauled forcibly into a defender. The abducted person later on states that he was taken before Hirunika.

Hirunika states that she made all parties sit together in order ‘to administer justice.’ According to her ‘the criminal’ had abandoned his wife along with two innocent children and she had a moral right to resolve the issue.

From ancient times people sought intervention from the elders of the village to resolve grievances and conflicts that arose between them, voluntarily. There is nothing wrong in this. However, this is different. The ‘security detail’, forcibly kidnapped a person and brought him before ‘judge’ Hirunika. She apparently has a clear judgement on this issue and issued an ‘order’.

Being a Law student herself one can marvel as to how she got powers to resolve issues on her own. Unfortunately, she messed up from the beginning.

By  mistake she falls into the same category as  Mervyn Silva. If she was duly studying Law she ought to know that by trying to resolve matters in the abodes of MPs instead of Courts of Law would lead to ‘kangaroo courts’  that  ‘mushroomed’ during the Rajapaksa regime and the parliament too was charged to have engaged in encroaching into the domain of the judiciary.

Although Hirunika may not be directly implicated as she is not the one who ordered this person to be abducted her mere intervention in trying to resolve the issue for ruling out that the abducted person has committed an offence by breaking down a marriage and for eliciting another woman with the purpose of leaving his previous marriage, he cannot go scot free. She further stated that the police should take action against the abducted person for eliciting another woman.

When asked as to why she did not lodge a complaint with the police Hirunika retorted saying that the officials of the Police Women and Children’s Bureau cannot even properly converse in Sinhala as the police and the bureau was not duly executing their duties.

People should condemn this act for in the  very statement which Hirunika states – “we opposed the Rajapaksa regime in order to bring good governance.”

True enough, it was deadly to oppose the Rajapaksa regime at the time. However, she went to and fro in defenders and with bodyguards.

In fact, her conduct overlaps with the behaviour of her opponent Duminda Silva. Her ‘vehicle convoy’ that went on the road reminded people of Duminda Silva’s ‘vehicle processions.’

If she had indeed truly fought for good governance this should not have taken place. When former President Mahinda Rajapaksa was asked for his opinion on this he quipped saying that defenders have now replaced white vans.

Black marks such as this had created ‘come backs’ for the Rajapaksas. However, Mahinda Rajapaksa who speareheaded one of the worst regimes ever in Sri Lanka has no moral or ethical right to justify his misdeeds by pointing at Hirunika.

Knowingly or unknowingly Hirunika and her security  added a ‘new chapter’ to the Rajapaksa-Mervyn Silva tradition. Although, during Rajapaksa’s era, abduction by white vans at gun point was a common sight one is yet to see the use of fire arms and disappearances under this good governance administration possibly because it is transitional.

The use of bodyguards and close confidantes has become a salient feature of ‘terror politics’ in recent times. Speculation is rife that the police are focusing on the infamous ‘Capt. Tissa’ who is said to have been a driver working under Mahinda Rajapaksa in relation to Wasim Thajudeen’s murder.

Evidence has surfaced that he was the same person who de-activated the CCTV at the Odel car park and organised an attack on Mervyn Silva’s infamous son Malaka Silva.

This is nothing new as people still remember how bodyguards of former President Chandrika Bandaranaike Kumaratunga including underworld kingpins such as Baddagana Sanjeewa forcibly entered the Rukantha-Chandralekha residence, cut their hair and doused them with kerosene oil threatening to burn them.

In the name of good governance nipping these issues in the bud is important. Confidantes of politicians hurting the public usurping the rights of politicians should be put to stop right away if not within a year or two.

The UNFGG would become an ‘extension’ of the Rajapaksa regime.

The Law must be implemented to the letter against the perpetrators of this abduction. Incase Hirunika is also implicated for aiding and abetting this crime, the law must be  duly  enforced.

It is a good start that Hirunika  has accepted that  she is also an ordinary citizen of this country. However, it must not be merely limited to the gallery but must be shown in action.

‘Not only must Justice be done; it must also be seen to be done.’ The question here is not whether it is Hirunika or not. Hundreds and thousands of people in this country opposed the Rajapaksa regime despite appeals from their loved ones and brought the good governance administration into power without any material benefit whatsoever at the cost of their own lives whilst ‘Hirunikas’ traverse from one regime into another in defenders. Such people want to see the enhancement of good governance and not make it into an extension of the Rajapaksa regime.

(Courtesy: Ravaya)