SriLankan Airlines probe:
Call for ‘criminal prosecution’ of former Chair, CEO
The Government-appointed Board of Inquiry into operations of
SriLankan Airlines has called for the ‘criminal prosecution’ of its
former Chairman and the Chief Executive Officer and also for inquiry and
action against several other company officials and airline staff.
The Board of Inquiry, headed by well known anti-corruption activist
and constitutional lawyer J. C. Welimuna was appointed by the Minister
of Ports, Shipping and Aviation, Arjuna Ranatunga, to report on any
abuse of power by the former Chairman and Board, as well as violations
of rules and regulations, in Sri Lanka’s national carrier between 2006
and 2014.
The Board of Inquiry found instances of gross abuse of power by
former Chairman, Nishantha Wickramasinghe.
“The former government of President Mahinda Rajapaksa made management
changes to carry out a re-fleeting of the airline with brand-new
aircraft costing US$ 2.3 billion despite the availability of more cost
effective alternatives,” a press statement issued by the Prime
Minister’s Office said.
The Weliamuna report recommends criminal investigations on the entire
multi-billion rupee re-fleeting process and have noted instances where
former Chairmen Wickramasinghe, a brother-in-law of Mahinda Rajapaksa,
should be prosecuted, it said.
“The Board of Inquiry (BOI) found evidence of Wickramasinghe and
SriLankan 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 statement said.
The statement in full:
The former government of President Mahinda Rajapaksa made management
changes to carry out a re-fleeting of the airline with brand-new
aircraft costing US$ 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 SriLankan 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 authorised
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 SriLankan
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 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 Rajapaksa.
The airline had also tried to hush up two serious flying mishaps
involving the chief pilot DruviPerera 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 SriLankan Airlines.
The BOI recommends the termination of services, or immediate
disciplinary action for breaching company rules. Security Department was
among the most politicised.
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 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
UdayangaWeeratunga former Ambassador to Russia and DilanAriyawansa 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 SriLankan Airlines. |