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Shocking details of corruptions at SriLankan-PM office

4 April 2015 03:52 pm - 27     - {{hitsCtrl.values.hits}}

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A Board of Inquiry has found shocking details of corruption running into billions of dollars, manipulations of service contracting, recruitment of unqualified staff and major security breaches at Sri Lankan airlines under the former government, the Prime Minister Office said today.

Issuing a statement the PM office also stated: The panel headed by anti-corruption advocate and senior lawyer J. C. Weliamuna found instances of gross abuse of power by former chairman Nishantha Wickramasinghe whose penchant for young air hostesses cost the debt-ridden airline even more problems.

The former government of President Mahinda Rajapaksa made management changes to carry out a re-fleeting of the airline with brand-new aircraft costing $2.3 billion despite the availability of more cost effective alternatives.

The Weliamuna report recommends criminal investigations into the entire re-fleeting process and have noted instances where former chairmen Wickramasinghe, a brother-in-law of Mahinda Rajapaksa, should be prosecuted.

The Board of Inquiry (BOI) found evidence of Wickramasinghe and Sri Lankan CEO, Kapila Chandrasena falsifying documents to lease a luxury sports utility vehicle for the use of Wickramasinghe. This was in addition to a luxury Mercedes Benz vehicle and a Prado super luxury vehicle.

The purchase of vehicles pales into insignificance when compared to irregularities in the re-fleeting exercise and a fiasco involving the launch of an air taxi service which was eventually abandoned causing millions of dollars in losses to Sri Lankan airlines.

The management of Sri Lankan staff knowingly ignored conflict of interest in companies and individuals hired to advise the national carrier on procurements leading to a reasonable assumption that they were all corrupt deals.

A Cabin crew member had been released from the airline to work at the Presidential Secretariat following a request from the then Presidential Secretary Lalith Weeratunga, but she was actually released for Namal Rajapaksa‘s political work.

She had been paid by the airline, including allowances for cabin work although there is no explanation of what services she provided except that she had been over paid more than 4.2 million rupees.

The BOI recommends that the Sri Lankan airlines take action to recover the overpaid amounts from the staff member who has been identified in the report and direct prosecutions of those who authorized misappropriation of public finance.

The BOI also found that several applicants who repeatedly failed entrance tests were eventually recruited on verbal requests from the management.

The former chairman had also created a post of “SLA Brand Ambassador” and appointed his known companion, an airhostess even though no such designation was known to the national carrier. The couple had travelled abroad on tickets bought by Sri Lankan from other airlines too.

“In our investigation, we can conclusively hold that former Chairman’s association with cabin crew members exposed Sri Lankan Airlines to abuse of power, causing reputational risks as well as financial losses.

“BOI can also hold that there was no corporate culture in the board or the top management to raise such issues when a senior officer or the chairman was involved in such behavioral issues adversely affecting the company” the report said.

The BOI has found CEO Chandrasena unsuitable for the job and was surprised to discover that he was paid a minimum monthly salary of 1.5 million rupees on top of other perks and he had also enjoyed salaries simultaneously from his other appointments.

There had been a time when he drew a salary as Mobitel CEO as well as Mihin Lanka CEO. The BOI recommends criminal prosecutions of Chandrasena as well as Wickramasinghe, among other senior management staff.

The BOI also found that a London station manager who tried to stop the illegal practice of sending motor spare parts for the use of former president’s son Yoshitha had been suddenly transferred out on the direction of the former President Rajapaska.

The airline had also tried to hush up two serious flying mishaps involving the chief pilot Druvi Perera and Captain U. A. V. Pathirana.

Two staff members involved in alleged human smuggling had got off lightly raising serious concerns whether few employees continue to support a criminal human smuggling ring.

The BOI also raised questions about the suitability of appointing a retired army major general, P. Chandrawansa, who did not have aviation security experience on a salary of 450,000 rupees, without following recruitment procedure and accused him of engaging in political activities while in the employment of Sri Lankan airlines.

The BOI recommends the termination of services, or immediate disciplinary action for breaching company rules. Security Department was among the most politicized.

The BOI praised two senior pilots — Patrick Fernando and Ranga Amadoru — who had resigned in protest against attempts to lower pass marks of recruit pilots.

“Their resignation effectively prevented the selection of unsuitable candidates in the 2013 Cadet Pilot intake. In view of their bold stand taken to protect professional standards, BOI recommends that they be commended.” the report said.

The report also lists major fraud in the award of tenders and singles out a duty free deal and the sale of wine as one of the blatantly corrupt deals of Sri Lankan requiring a criminal investigation. BOI points out the corrupt manner in which General Sales Agents were appointed in many countries on behalf of the airlines and manipulations made. BOI also recommends criminal investigations on the involvement of Udayanga Weeratunga former Ambassador to Russia and Dilan Ariyawansa in several GSA appointments.

Finally the BOI has concluded that the management culture was a major contributory factor for abuse of power and external interference into the business of Sri Lankan airlines.

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  Comments - 27

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  • Waco Sunday, 05 April 2015 09:44 AM

    Why the Priminister Mr.Wickramasinghe is very silent? I am sure he does not covers up for these toughs.

    patriot Friday, 10 April 2015 05:54 PM

    Hopefully ACTION will be taken. Not just reports

    cristo Wednesday, 08 April 2015 06:31 PM

    Despite wanting to support air lanka over the years ..the rapid decline in service and poor maintainance forced us to use other carriers ..I am so sad to say

    cristo Wednesday, 08 April 2015 06:28 PM

    Who in their right mind votes against what you have so correctly said...its like voting against freedom in support of slavery ..are they stupid !

    Raymond JPUPS Monday, 06 April 2015 04:48 PM

    Why no any action against the Masters ?????

    Lakahman DeSilva Monday, 06 April 2015 10:46 AM

    It is more shocking the corruotion during post 1977 UNP era and Premadasa era

    AR Monday, 06 April 2015 09:53 AM

    She had been paid by the airline, including allowances for cabin work although there is no explanation of what services she provided except that she had been over paid more than 4.2 million rupees - See more at: http://www.dailymirror.lk/68429/shocking-details-of-corruptions-at-srilankan-pm-office

    boy boy Sunday, 05 April 2015 04:02 PM

    Yes the two pilots are outstanding with good professional records, love the Air Line hats off the these gentlemen. there was another lady, Ms. Thimbiripola the head of HR, who resign, within 2 months of her appointment , as she did not agreeable to do what ever the chairman wanted , requiriting unsuitable persons she also stood up to maintain the standards ,

    Waco Sunday, 05 April 2015 10:22 AM

    Mr.Priminister, are you not trying hard to condition the minds of people to accept all Currupt activities of the previous regime?

    southpaw Sunday, 05 April 2015 10:20 AM

    This is the outcome when you replace ' the very successful Emirates Management' with your Family and Friends and turn a profit making Airline in to a tax payers burden

    sds Sunday, 05 April 2015 10:07 AM

    we must not be missled by this type of rubbish that a shameless PM talks of! the man has lost 30 elections and is funded by EU and America. typical UNP colonial politics

    Lima Sunday, 05 April 2015 10:05 AM

    MANY COUNTRIES PUT THEIR PRESIDENT TO GUILLOTINE OR FOR LIFE BEHIND BARS ALONG WITH THEIR HENCHMAN FOR ROBBING THE COUNTRY , BUT ONLY SRI LANKA JUST LEAVE THEM ALONE , WHY NOT THE PUBLIC GIVE THAT GALLOW PUNISHMENT FOR ALL THESE CULPRITS STARTING FROM THE FORMER FIRST CITIZEN

    Waco Sunday, 05 April 2015 09:57 AM

    Commissions, Investigations, Reports, Inquiries, etc,etc,etc,Hon: Priminister what will happen next ? Lay a wet blanket on it?

    karu Sunday, 05 April 2015 09:47 AM

    First and foremost, the present GOVT. Should hold a referendum to do away with the absolute immunity guaranteed to the President in the constitution and prosecute everyone involved in robbing the wealth of the nation. Otherwise it will be a useless talk.

    samanabedda Saturday, 04 April 2015 09:41 PM

    Sorry to say, all of you including the present president and prime minister are all NATO (No Action Talk Only) members. Investigations are limited to talking and reports.

    Patriot Sunday, 05 April 2015 09:27 AM

    Appoint the same commission to investigate the Central Bank to find shocking details of mega bond corruption :) ha ha ...

    willowsd Sunday, 05 April 2015 09:14 AM

    so when are we going to see these robbers behind bars? is it just talk only?

    Dimutha Saturday, 04 April 2015 09:59 PM

    Finally! Everyone knew what was going inside the Airlines while it was costing millions of dollars of taxpayer moneyNow time for Justice!

    Mevan Saturday, 04 April 2015 09:57 PM

    It looks lile the previous regiem made a mess of everything it handled very efficiently.

    J Palitha Saturday, 04 April 2015 09:54 PM

    With all the losses, former President had ordered a VVIP plane via Air Lanka, similar to President of America.

    Vijith Pieterz Saturday, 04 April 2015 09:52 PM

    Lot of secret deals been hidden with regard to Air Lanka and this is the cause for its down-fall

    Kiris Baba Amaray Saturday, 04 April 2015 09:51 PM

    The fact is, 90% of Air Lanka staff been recruited by the former President, mostly his relations for higher positions.

    Horri Jimonis Saturday, 04 April 2015 09:50 PM

    Air Lanka was totally mis-handled by MR

    Hiran Saturday, 04 April 2015 09:49 PM

    If the government does not prosecute those who blatantly robbed this country of its wealth, it will set a very bad precedent. Politicians and the higher ups will think that they can loot this nation and get away with it.

    Desmond Jeromme Saturday, 04 April 2015 09:48 PM

    Former President has offered lot of jobs for UN-suitable people so-called relations. This is a known story.... but where the action?

    Bubble Banda Saturday, 04 April 2015 09:46 PM

    We have noted somany charges against the former Ministers but not a single action taken. Something fishy !!!!

    DHA Saturday, 04 April 2015 09:45 PM

    The day the 100 day program came into effect we have been constantly hearing the word "corruption" but none of them seems to be taken into custody......its time we saw some results not talk......


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