Rs. 500 million spent from EPF to buy SriLankan Airlines’ shares

Employees’ Provident Fund (EPF) Superintendent Nalini Malkanthi Bandara told the Presidential Commission of Inquiry that Rs 500 million has been spent from the EPF to purchase SriLankan Airlines’ shares belonged to Emirates in 2010 violating all rules and regulations. She had revealed this on 28 September before the Presidential Commission of Inquiry appointed to investigate corruptions in SriLankan Airlines, SriLankan Catering and Mihin Lanka.

It was also revealed through the inquiries carried out by Additional Solicitor General Neil Unamboowe that the above transaction had been approved without required proposals, recommendations and estimations. 

Nalini Malkanthi Bandara had further disclosed before the commission that this transaction had taken place at the discretion of Assistant General Manager of Bank of Ceylon, B.A. Lionel and several Central Bank officials, and that Ajith Nivard Cabraal served as the Central Bank Governor at that time. She had further stated that neither the cabinet nor the Treasury had granted approval to spend EPF money to purchase SriLankan Airlines’ shares.

Former Finance Minister and President Mahinda Rajapaksa on 4 May 2010 had presented a cabinet paper regarding purchasing shares belonged to Emirates, and the cabinet paper said that Bank of Ceylon and Sri Lanka Insurance Corporation must purchase the shares in question, not EPF, she had further stated. However, on 6 July 2010, Assistant General Manager of Bank of Ceylon, B.A. Lionel, had written to the Funds Management Committee of the Central Bank informing to credit Rs 500 million from the EPF to the current account of the corporate branch of the Bank of Ceylon to purchase the shares. No relevant documents with regard to this investment are available, and it indicates that this transaction took place without an agreement or any other legal proof, she added. (Lankanewsweb)