RADA revelation

RS 169 million meant for tsunami reconstruction misappropriated :

by Manjula Fernando

The Police Special Investigation Unit (SIU) officers have gathered documentary evidence that Reconstruction and Development Agency (RADA) heads have pocketed or shared with the LTTE over Rs.124 million. of the funds set out for tsunami re-construction in the North and East.

Dr. Saliya Wickremasuriya

However, a top investigation officer said they were still struggling to demarcate the margins of the total amount of pilfered wealth, adding that they hoped to uncover the whole truth as soon as possible.

The SIU probing into RADA’s missing tsunami housing funds allocated to the North and the East in 2006, have found enough proof that the missing millions may have fallen into LTTE hands and did not reach the tsunami stricken.

The Director of Police Special Investigation Unit, SP Mevan Silva told Court that when the case was heard on Tuesday before Fort Magistrate, Priyantha Liyanage that four people in connection with the case were arrested.

The SIU is under the direct purview of the IGP, N.K. Ilangakoon.

The investigation involves the transfer of a whopping Rs.169 million to two bogus companies, Everest Civil Engineering Pvt. Ltd, Grandpass and B & K Holdings, Dehiwala, to construct tsunami houses in the North and the East under a special project called ‘Jaya Lanka’ in 2006. The funds involve Treasury allocations to, founded under Presidential Secretariat during President Mahinda Rajapaksa’s regime. The Agency was meant to coordinate and implement operations of various institutions undertaking post-tsunami reconstruction.

The former Chief Operations Officer of RADA, Dr. Saliya Wickremasuriya, who signed the cheques ‘drawn in favour of the two bogus companies, is among the four who have been remanded. The others arrested are Shanthikumar Gajankumar (1st accused), Anandi Shanthikumar (2nd accused), and Kandasami Sodiraja, a director of Everest Civil Engineering. Two other directors of B&K Holdings, Shanthikumar Kishorkumar and Barkavy Shanthikumar, a brother and a sister of the first accused, are currently overseas. They are wanted by the SIU for questioning. Anandi is the mother of Gajankumar.

Misappropriation

The case of misappropriation of State assets is heard under the Public Properties Act. Hence the offences are non-bailable and the suspects could be given up to a 20 year jail term with RI, if convicted. The suspects will have to pay three times the value of the stolen funds to the State in the event of a conviction. Former COO Dr.Wickremasuriya was arrested and remanded on May 9 and then re-remanded on May 12.

Former Chairman of RADA, Tiran Alles, parliamentarian and businessman was questioned in this connection on April 9 and Former Presidential Secretary, Lalith Weeratunga was questioned on May 13. As the President’s Secretary it was Weeratunga who appointed Dr.Wickremasuriya to RADA. RADA was allocated Rs. 2,441 million for reconstruction of houses islandwide after the Boxing Day tsunami. Of this Rs.169 million, part of the funds was allocated to tsunami ravaged Jaffna, Trincomalee and Batticaloa in the North and the East were found to be missing according to the complaint lodged by the Anti-Corruption Front.

The case remained underground until the Anti-Corruption Front lodged a complaint with the Police on March 26, 2015. The complainant has raised the issue that some of these funds may have ended up with the LTTE. There has been no proper accounting and auditing of RADA funds.

Evidence

According to the evidence given in Court, RADA was set up in 2006 headed by Alles to coordinate tsunami reconstruction work. Somewhere in early 2006, Alles and Dr.Wickremasuriya visited LTTE-controlled areas escorted by former LTTE intelligence member, Emil Kanthan to inspect tsunami ravaged areas in Kilinochchi.

Emil Kanthan is wanted by Interpol. He is accused of carrying out arms deals for the LTTE. He also has an arrest warrant in a case of attempted murder on Minister Douglas Devananda. The visit to Kilinochchi by RADA officials was partly to discuss ways to channel funds to rebuild houses in the then-LTTE controlled territory.

During the tour, Emil Kanthan had introduced two building contractors to RADA officials. Investigations have revealed these contractors were in the garment business and, not in the construction business as claimed.

The first accused in the case Gajankumar, under whose name one of the companies, B&K Holdings was registered, acted as the main contractor. He later took over all the financial transactions of the other construction company Everest Civil Engineering Pvt. Ltd.

Despite registrations the investigating officers found the two companies to be bogus and the addresses and telephone numbers given were fake. While the B&K was owned by Gajankumar, his mother, brother and sister were named board members of the company. Three bank accounts in two leading private banks in Wellawatte and Reid Avenue were opened to receive checks from RADA. A probe on transactions of these now defunct accounts has shown millions of rupees from RADA being funneled in, to be withdrawn promptly by Gajankumar. He has claimed the ies ere returned to Emil Kanthan and Tiran Alles.

The cheques were signed by Wickremasuriya as the COO of RADA. Although a total of Rs.169 million was transferred to the bank accounts of the contractors, not a single housing unit has been built and there are no records as to what happened to these funds.

Funds funnelled to LTTE

JHU Parliamentarian and Convenor of the Anti-Corruption Front, Nishantha Sri Warnasinghe:

‘‘We made the complaint based on a file that we came across, containing some shady transactions of RADA. After an in-depth perusal ,we realised that there has been a major financial fraud and state money seemed to have been funnelled to the LTTE. Tsunami funds have been utilized to strengthen the military arm of the LTTE which suffered a setback after the tsunami devastation. Documentary evidence shows that the LTTE had been supplied with a large number of vehicles by RADA during the period in question.

Our effort is to ascertain the nature of the union with the LTTE, what role the former LTTE member, Emil Kanthan played, whether the monies had fallen into terrorist hands or if RADA heads pilfered the funds for their own welfare. We presume these people joined the LTTE to further their political goals. There are many accusations surrounding the 2005 presidential election where the Northern Tamils were barred from casting their vote by the LTTE, which was a decisive factor in winning the election.

No matter how professionally qualified officials must be held accountable.In that sense we are not satisfied with the way investigations were proceeding.

No link with LTTE

MP and businessman, Tiran Alles:

“I can assure you that the facts in the police statement are false. I was jonly the Chairman of RADA but I know for certain that the COO,.Saliya Wickremasuriya, handled the organization to perfection. He informed me that all payments made to contractors were according to stipulated norms. The payments had been made to the contractors at different stages when the certificate of completion was submitted to him by the GA. As to why no houses have been built although payments were made, should be posed to GAs. The houses were to be built in LTTE controlled areas in 2006. No government organisation could supervise work in LTTE territory. We had to depend on the GA or officials working in their territory. The initial decision was when the houses were built, payments will be released in separate tranches and the DS of the area had to certify. I was not involved in operational matters I was involved in Board.matters as the Chairman. As far as RADA was concerned, we had no one liaising with the LTTE. The GAs looked after that responsibility. About five GAs were involved in the Jaya Lanka project. If I remember correct all of them were Tamil GAs.