Three key officers of RADA to be arrested shortly
by Manjula Fernando
The Police Special Investigations Unit probing alleged shady
transactions of the Reconstruction and Development Agency (RADA) where
Rs.124 to Rs.169 million of State assets believed to have been stolen or
transferred to the Liberation Tigers of Tamil Eelam (LTTE) and other
parties, is expected to arrest three key suspects shortly, authoritative
sources said. Last week, the SIU was on the verge of arresting
businessman, parliamentarian and former chairman of RADA, Tiran Alles,
when he moved the Supreme Court to obtain a stay order on May 18,
preventing imminent arrest.
The sources said the suspects to be arrested shortly, were closely
associated with the RADA transactions, either in transferring or
receiving the funds.
“They have aided and abated the alleged siphoning off of millions of
State funds allocated to tsunami reconstruction in the LTTE- held areas
in the North and East in 2006, under the pretext of building housing
units for the tsunami stricken,” source said.
Among the many government officials who recorded statements in
connection with the case are, Secretary to the former President, Lalith
Weeratunga, Director National Budget Department Anoma Nandani and two of
the five Government Agents entrusted with reporting the progress of the
houses being built, to release the funds.
Alles who was also the Chairman of Airport and Aviation Services (Sri
Lanka Ltd) at the time, alleged in his statement that he was only
heading board meetings of RADA and was not involved in any operational
matters.
However, the statements of the Government Agents have refuted this
claim, the sources said.
Initiated on a complaint by the Anti Corruption Front recently, the
Police SIU which is directly under the Inspector General of Police (IGP)
is investigating the transfer of Treasury allocations to the tune of
Rs.169 million by RADA to two bogus construction companies, Everest
Civil Engineering Pvt. Ltd of Grandpass and B & K Holdings of Dehiwala.
The twocompanies were supposed to construct tsunami houses in the North
and the East under a special project called ‘Jaya Lanka.’
The Agency which replaced Post Tsunami Operational Management
Structure (P-TOMS) functioned during President Chandrika Kumaratunga’s
time, was meant to coordinate and implement operations of various
institutions undertaking post-tsunami reconstruction.
As the Chairman of RADA, Alles was overseeing the transfer of
billions of rupees for various activities including the Jaya Lanka
project.
The Treasury has allocated RADA a total of Rs.2441 million for post
tsunami reconstruction work.
Meanwhile, it is alleged that two bogus companies have been
established with the connivance of RADA officials and an LTTE point man,
Emil Kanthan, to siphon off some of the tsunami reconstruction funds
during the period from January to August 2006.
Three directors of the bogus companies and the Chief Operations
Officer of RADA, Dr. Saliya Wickremasuriya, who signed the cheques for
non-existing housing units under the Jaya Lanka Project, are now in
remand custody. Authoritative sources said the arrest of Tiran Alles,
the former Chairman of RADA would have expedited the investigations to
unravel where the missing Rs.124 - 169 millions went.
Sources said, SIU was on the verge of arresting Alles when the
Attorney General issued instructions on Thursday (21) against attempts
to take him in. Alles field a Fundamental Rights petition before the
Supreme Court and secured an interim order to halt any action to arrest
him.
In the Petition, Alles claimed the SIU investigation was politically
coloured and a certain Minister who charged him of being a ‘wheeler
dealer’ that caused a split in his party during the January Presidential
election, was behind the whole ‘drama’. He pleaded the Police went on to
impound his passport without even recording a statement.
The Parliamentarian added that the government was taking revenge from
its political opponents and as a result, he too faced the risk of being
arrested.
At the time, the SIU had sought the Attorney General’s advice to
arrest Alles based on the evidence gathered. On May 18, the Supreme
Court noticed the SIU of the pending FR case. Subsequently, the AG
issued instructions stalling Alles’ arrest.
When the RADA case was taken up before the Fort Magistrate on May 19,
the SIU sleuths produced a fifth suspect, Ponmudi Seehara Sudan. He was
remanded till the next hearing, scheduled for June 1.
Ponmudi allegedly received Rs.10 million from one of the bogus
contractors. He had claimed that the money was handed to Emil Kanthan
who is wanted by the Interpol for arms deals with the LTTE and is
missing since the end of war. He was traced to Dubai and the
investigators believe the man may have transited via Dubai to another
country.
So far, the Police sleuths have remanded five suspects in connection
with the RADA case.
The arrested are three directors of the bogus companies –
Shanthikumar Gajankumar, the first accused, Anandi Shanthikumar, second
accused and mother of first accused, Kandasami Sodiraja and Ponmudi
Seeharan Sudan and Dr. Saliya Wickremasuriya. Two other directors of B&
K Holdings, wanted for questioning are currently living overseas. |