Yoshitha’s Waterloo
Last week’s arrest of the Rajapaksa progeny along
with CSN top executives peels the lid off one of the more murky
financial foul plays of the former first family:
 A
week ago, it was curtain fall of sorts for Lieutenant Yoshitha Rajapaksa,
the second son of former President Mahinda Rajapaksa, when the Kaduwela
Magistrate remanded him till February 11, in connection with serious
financial fraud.
Though there had been many allegations floated about, until the Court
decision, everything appeared to be mere hearsay with no evidence to
demonstrate actual complicity of any Rajapaksa family member.
In Yoshtha’s case, the links are multiple and complex, and finally,
he was remanded for allegedly violating the Prevention of Money
Laundering Act of 2006.
The arrest brought to an end, much speculation about the former first
family’s alleged involvement in large-scale corruption and other
malpractices –most of which provided a political springboard for the
incumbency and the basis for a series of investigations by the Financial
Corruption Investigations Division (FCID). It also resulted in strong
protests and counter arguments about a son having to pay the price for
being Mahinda Rajapaksa’s son.
Undaunted, the young wisecracking VIP who does not consume prison
food and has many political visitors turning up to check on him with
such regularity that the prison authorities had to limit his visitors to
three family members, has said the prison was a better place than the
Navy Camp. His father, the war-winning former president, whose tenure
was deeply tainted by allegations of corruption called the arrest “the
ultimate revenge of President Sirisena.”
According to Police Media Spokesman, ASP Ruwan Gunasekera, once the
FCID investigation is concluded, the Attorney General is likely to
indict Rajapaksa, one of the four suspects, in the High Court, if
substantive evidence existed.
Irrespective of what was shown to the world, the arrests made a week
ago has much to do with the ownership of the Carlton Sports Network(CSN),
according to top FCID sources.
Funding sources
Others remanded with Rajapaksa, CSN Chairman Rohan Welivita and CSN’s
CEO, Nishantha Ranatunga, under the Prevention of Money Laundering Act
2006, are also being probed for a number of transactions as well as the
actual ownership of the company.
The probes are likely to next lead to the funding sources of this
company, believed to be owned by a family that continues to claim they
have no wealth amassed during a decade of powerful family rule.
Meanwhile, it is alleged that Rs.230 million had been invested to
commence the CSN channel without full disclosure of the investors.
At the outset, it was said that Cosmos Technology and Cosmos
Printing, owned by former President Mahinda Rajapaksa’s ally and travel
companion, and former Monitoring MP, Sajin Vass Gunawardena, had
invested a sum of Rs. 50 million, with Nimal Perera, Chairman of Pan
Asia Bank, another Rajapaksa loyalist, investing another Rs. 50 million.
In addition, some Rs. 25 million, reportedly went into the making of CSN
from Chesmy Consolidates, owned by Himal and Rangani Hettiarachchi, a
nephew and niece of the former president. The rest, another Rs. 50
million was supposedly raised through a loan obtained from Lanka Orix
Leasing Company (LOLC), to give life to CSN.
The Rajapaksas have always implied that they made no investment in
the CSN venture and definitely did not possess the kind of wealth
required to start a company.
It is learnt that while recording a statement with the FCID, Chairman
of Pan Asia Bank, Nimal Perera, had claimed that Yoshitha Rajapaksa had
once obtained a signed document from him, though the bank had made no
investment in the company.
This statement gave rise to questions about actual investment in the
company.
Among the claims disputed is also the fact that Sajin Vass
Gunawardena’s two companies also forked out Rs. 100 million, with
Gunawardena reportedly informing the FCID that only Cosmos Printing had
donated to the CSN kitty –Rs.50 million – to operationalise a television
station.
Disputed claims
Meanwhile, it is also learnt that the loan obtained for the launch of
the company too has not been paid back, with the money being recovered
by the guarantor, a Singaporean company.
The signatory for the guarantor was the General Manager of TPL (Pvt.)
Ltd, Tiana Diyanthi Anthonis, also Sajin Vass Gunawardena’s wife.
Chesmi Consolidates too has, according to sources, made claims of not
having invested in the company, all of which brought about a saga of
millions being poured into a new sports channel but with serious
questions about some of its sources.
With most of the so-called investors having washed their hands of the
venture, the FCID has begun probing the actual investors and the
possible reasons for the CSN management to blatantly lie about their
funding sources.
CSN has a registered office at No: 260/12, Torrington Avenue, Colombo
5, the former residence of President Mahinda Rajapaksa. It should come
as no surprise that Siriliya Saviya, an NGO headed by the former first
lady Shiranthi Rajapaksa, and Namal Rajapaksa’s Tharunyayata Hetak, too
have the same address as their registered address. If not the money, at
least the business premises are owned by the Rajapaksas!
It is needless to mention that both the Carlton Pre School and
Carlton Sports Club also share the same address.
It is important to note here that this property was originally not
owned by the Rajapaksa family but by a businessman named Prabath
Nanayakkara.
In 2005, the property had been purchased by one Mary Lourdes
Wickramasinghe for Rs. 35 million. The ownership was transferred on
April 5, 2013. The lady in question, who bears the NIC No: 535233314V is
the former first lady, Shiranthi Rajapaksa.
Wheels within
The FCID has also discovered that not only do disputes exist with
regard to the actual ownership and funding sources of CSN, its main
office – located at 236/1, AB 15, Denzil Kobbekaduwa Mawatha,
Battaramulla, to be a plot of land released, on request, to construct a
Rajapaksa Educational and Cultural Centre. This request was granted in
2003 by the government at the time, by Cabinet Paper 10/ 8/ 1/602.
Obtained for a public purpose, it soon became the premises of the CSN
headquarters. It was registered in February 2011 and operationalised in
March.
The country has a fair idea about the revenue loss suffered by the
country’s national television station, the Sri Lanka Rupavahini
Corporation (SLRC), when telecast rights of Sri Lanka Cricket were given
to CSN.
The disparity was alarming. SLRC, according to sources, paid Rs.143
million to broadcast the 2011 Cricket World Cup, garnering Rs. 556
million as revenue, whereas the right to exclusive telecast was given to
CSN for Rs.125 million, that too for three years.
Though it was the prerogative of the SLRC to broadcast, as the
national telecaster, all international matches following the
introduction of broadcasting laws, a Cabinet decision was taken,
allowing private channels also to do the same. This was done primarily
to facilitate CSN. As far as CSN went, there was no competitive bidding
either! To boot, there was then Secretary of Sri Lanka Cricket,
Nishantha Ranatunga, offering the contract to CSN, in a stark
demonstration of conflict of interest.
Meanwhile, it is now learnt that the remanding of the three key
persons involved in the controversial company, there is much to be
unravelled, including the massive losses to the national broadcaster due
to the preferential treatment meted out to a privately-owned channel of
the then president’s son (amounting to abuse of power) as well as
acquisitions and violations of tender procedures.
As a senior FCID official said: “The dramatic interpretations of one
Rajapaksa been taken into remand prison cannot dilute the truth about
the CSN probe. The details are murkier than what is currently known.”
Law applies to all: JVP Leader
 There
is no heroism in being arrested for violating the country’s financial
regulations.
It only proves what had been said from the opposition platforms to be
true, said Leader of the Janatha Vimukthi Peramuna and Deputy Opposition
leader, Anura Kumara Dissanayake, responding to claims by Rajapaksa
loyalists that Yoshitha Rajapaksa’s arrest as a vengeful political act.
“Why should the former president’s son be called a political prisoner
when, from what we know so far, he has violated the laws.
He should be treated like anyone else and he is not a politician or a
political activist be referred to as such.
Just being the former president’s son does not qualify him as a
political prisoner. Our understanding is that he has been a businessman
under the guise of a Navy officer,” Dissanayake said, warning that
people should be mindful of the new interpretations, portraying Yoshitha
Rajapaksa as a victim, when in actual fact, there is every possibility
of abuse of office committed by the powerful offspring of the former
president.
Tried for travels
As things stand, though the FCID inquiry would continue to ascertain
Yoshitha Rajapaksa’s suspected involvement in money laundering, it will
not have an immediate impact on his career in the Navy.
Navy spokesman, Captain Akram Alavi has gone on record that Yoshitha
Rajapaksa is linked to a number of matters currently probed by the FCID,
though he is yet to be charged.
While the FCID inquiry remains a civil probe under the Police
Department, the Navy too appointed a special board of inquiry, to
inquire into his foreign travels; Some 25 times without the approval of
the Navy Commander, while he was attached to the Presidential
Secretariat and his father was the president as well as the
Commander-in-Chief.
“The proceedings are continuing after which, a summary trial will be
conducted,”Alavi said.
Managing visits
 The
dissident opposition group loyal to former president Mahinda Rajapaksa
has announced their decision to boycott all state events, to protest
against Yoshitha Rajapaksa being taken in and well as other probes,
which they believe to be ‘politically motivated.’
At a recent media meet in Colombo, leader of the Mahajana Eksath
Peramuna (MEP), Dinesh Gunawardene said, the boycott would continue
until freedom and democracy are restored in the country. “UNP’s
political opponents are being systematically hunted down,” he alleged.
Among Yoshitha Rajapaksa’s key defenders, MP Wimal Weerawansa went on
record, having said that there was no proof to remand the young naval
officer.
“The truth is, they are trying Mahinda Rajapaksa by seeking to hurt
his children,” Weerawansa reportedly said. |
