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| Sunday, 20 February 2005 |
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Saudi funds for tsunami 'swept away' by a Staff Reporter Some directors of the Sri Lanka Islamic Centre (SLIC) yesterday exposed a financial racket allegedly perpetrated by Chairman of the SLIC and Colombo District UNP MP M. H. Mohamed and his family members in the guise of helping tsunami victims. They allege that about Rs. 10 million tsunami aid of the Rs. 40 million assistance from the Islamic Development Bank (IDB) in Saudi Arabia was now missing. When the directors pressurised the Chairman and his relatives to inform the Board about financial transactions for tsunami victims, they had produced bills to the tune of about Rs. 2.4 million. According to available bills they had purchased Rs. 2.4 million worth of goods for tsunami victims from "The Crescent Trading Co." at 189, Keyzer Street, Colombo 11. When the Sunday Observer visited this shop we learnt that such a shop had been in existence 19 years ago. A wholesale shop selling onions, garlic, etc. is in operation now on these premises. Named "Kavico Traders" it has been operating from 1986. The present shop owner R. Maheshwaran told the Sunday Observer that before he bought the building in 1986 there was a hardware business operating there known as Crescent Trading Co. However, SLIC got three quotations from a timber merchant M. P. W. Jayawardene & Sons Ltd., UNIFAB Trading (Private) Ltd. (Aluminium Fabricator) and non-existent Crescent Trading Co. to supply items for tsunami victims. The tender was awarded to the Crescent Trading Co. to supply cooking pots, utensils and stationery. Accordingly, the Company had supplied 1,250 packages each costing Rs. 1,920 amounting to Rs. 2.4 million. However it is alleged that some racketeers had distributed some packages among victims to deceive the Board members. The Directors believe that these racketeers had purchased some items for a lower cost from another trader and priced a package at Rs. 1,920. According to the prices in the market, each package does not cost more than Rs. 1,100. They doubt whether these racketeers really purchased 1,250 packages. When Directors challenged the prices of items purchased at the February 07 Board Meeting, Chairman Mohamed had explained that the IDB officials themselves selected the tender. The Directors also said that without the approval of the Board, the Chairman of the SLIC had opened a Bank account at the Hatton National Bank, Maligawatte Branch to receive tsunami financial aid from abroad. They said that half the Director Board of 20 members in the SLIC were relatives of Mohamed. They had held a seven hour meeting on 11/01/05 when IDB officials rushed to Sri Lanka with an emergency assistance package of Rs. 40 million to assist tsunami victims. Mohamed had only called six Directors, two of whom were his grandsons, a son-in-law, private secretary and another person for this meeting. But two of them Dr. Ruvaiz Haniffa (grandson) and M. I. M. Haniffa who attended the meeting were not even Board members. However, the Directors will hold an urgent meeting tomorrow and possibly decide to complain to the Fraud Bureau. When contacted Chairman Mohamed denied all allegations and said that already this issue had been handed over to the CID to investigate. When asked whether he was running a secret Bank Account at the Hatton National Bank Maligawatte branch he denied it. But the Sunday Observer learns that in addition to the SLIC official account another account has been opened and Mohamed is the signatory. When asked why he invited only his close relatives to meet IDB officials he could not give a clear answer. He said that disgruntled members in the SLIC are trying to defame his character.
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