Fraud and corruption:

Investigations moving at snail’s pace

By Ranil Wijayapala

Corruption and fraud were rampant during the former regime but no action was taken to curb it. Many state officers and former Ministers were allegedly involved in these offences. After President Maitiripala Sirisena's victory, the the National Unity Government was given a mandate to investigate large scale fraud and corruption by the previous regime and also against those engaged in corrupt deals when implementing development projects.

Although all mechanisms were in place, investigations seem to be moving at snail's pace. This is the public view because action should be taken against fraudsters and should be completed before the100-day program of the Government ends.

The public was eagerly awaiting speedy action against those responsible for these acts of fraud and corruption but were disappointed with the slow movement of cases. The public hoped that those responsible for alleged massive corruption will be arrested by the authorities and punished after a speedy hearing of their cases, but this has not materialised.The Government has put in place several mechanisms to investigate the corrupt deals, fraud and were also acting on complaints of unethically earned undeclared assets by politicians of the previous regime and the recommendation of the National Executive Council, a political body representing the stakeholders of the present government, also appointed an Anti Corruption Committee headed by Premier Ranil Wickremesinghe to take decisions to probe large scale corruption during the tenure of the previous government.

Committee

The Committee comprises Ministers Mangala Samaraweera, Patali Champika Ranawaka and Rauff Hakeem, parliamentarians Anura Kumara Dissanayake, R. Sampanthan, M. A. Sumanthiran and Democratic Party Leader Sarath Fonseka along with President's Counsel Dr. Jayampathy Wickramaratne, J. C. Weliamuna and Malik Samarawickrema.To support investigations, the Government also set up an Anti Corruption Secretariat attached to the Prime Ministers office.The Government has also set up a Financial Crimes Investigation Division attached to the Sri Lanka Police on February 26 with Deputy Inspector General Ravi Waidyalankara as the head of it.

This unit will investigating massive financial crimes, corruption and unauthorized projects, crimes against public funds and property, grievous crimes against national security, public finance, health and environment, unlawful enrichment and misuse of official powers and to investigating into the money laundering funding of terrorists and illegal transactions. The Commission to Investigate Allegations on Bribery or Corruption which has been entrusted with the task of conducting investigations on alleged bribery or corruption cases under the 17th amendment to the Constitution also received a large number of complaints against politicians of the previous regime.

In a bid to expedite the process, the Government appointed Dilrukshi Dias Wickramasinghe as the Director General of the commission replacing the previous Director General.

However, Premier Ranil Wickremesinghe expressing his view on investigations of corruption stressed that his government was not prepared to usurp the legal process when conducting investigations in search of quick results, although some people expressed dissatisfaction over the delays in taking action against persons accused of corruption and malpractices.

Track

The Premier also stressed that already the Government had sought help from several foreign governments and international financial institutions to track down large scale financial frauds.

The Anti Corruption Secretariat was handling around 20 major cases on financial crimes. Out of the 20 major complaints, 15 cases were ready to be handed over to the Fraud and Corruption Investigation Division or the Financial Crime Investigation Unit of the Police.

The Secretariat has received around 50 to 60 minor cases. newspaper articles highliting fraud were also brought to the notice of the Secretariat.

The Anti Corruption Secretariat forwards the files to the Financial Crime Investigation Unit of the Police after reviewing the complaints.

According to sources, there is no mandate for the Secretariat to conduct investigations on its own. The legal authority lies only with the Police Department.

The Commission has received more than 1000 complaints after the presidential election. According to reliable sources 50 to 60 percent of the cases were not substantial to be pursued.

“People cannot be punished in kangaroo courts like the earlier regime did. We have to follow the correct procedure to investigate those complaints and punish them” JHU spokesman and member of the Anti Corruption Movement, Nishantha Sri Warnasinghe

Police officers required for this purpose were recruited from the Police Department. The Commission has only 16 officers attached to the Commission to facilitate the process.

The newly formed Financial Crime Investigation Division (FCID) has commenced investigations into 12 major financial frauds that had taken place during the previous regime. According to Police Spokesman ASP Ruwan Gunasekara the FCID is investigating into the hedging transaction of the Ceylon Petroleum Corporation - fraud amounting to 200 million US dollars took place.. The Police has already recorded a statement from former CPC Chairman Asantha de Mel in this regard.

FCID is also conducting investigations on fraud over the construction of the Kerawalapitiya power station. Though the construction could have been completed at a cost of US $ 210 million a staggering US $ 332 million has been spent.

Another complaint on the Divi Neguma Department which came under former Economic Development Minister Basil Rajapaksha, is also under investigation in which a fraud amounting to Rs.63 million had taken place in 2014 by spending on the Jathika Maha Sammelanaya, ASP Ruwan Gunasekara said.

The purchasing of four aircraft in 2006 in which US $146,000,00 has been spentis also under investigation, he added.

Colombo district JVP MP Sunil Handunnetti, told the Sunday Observer as a political party the Janatha Vimukthi Peramuna was not satisfied with the process of investigations carried out by the Government on fraud and corruption charges against the previous regime.

“The public too has expressed dissatisfaction with the process as the authorities were taking action against the 'Lilliputians' while the 'Gullivers' were roaming freely ”, he said.

Coup attempt

A case in point is the CID not taking any action on the coup attempt of the previous regime on election night. The complaint was lodged by non other than External Affairs Minister Mangala Samaraweera to the CID” JVP MP Sunil Handunnetti

“A case in point of the snail's pace approach of the authorities is the CID not taking any action on the coup attempt of the previous regime on election night. The complaint was lodged by non other than External Affairs Minister Mangala Samaraweera to the CID”, he said. The investigations on the Wele Suda case and other drug dealers were also moving at a terribly slow pace. The major obstacle the Government was facing was the political instability of Parliament. “They have to take legal action against the fraudsters in Parliament. The SLFP still has the majority in Parliament. The Government is not in a position to take action fearing the political instability of the Government”, he added.

“There is nothing the committees can do to investigate fraud and corruption charges. Only government institutions were authorized to investigate those charges”, he added.

To speed up the process, there should be political stability and the institutions engaged in these investigations should be given the freedom to handle those cases independently", he said.

“What we suggest is to have the required constitutional reform to give the authorities an independent hand to handle the issues by setting up Independent Commissions as stipulated in the election promises”, he said.

JHU Spokesperson and member of the Anti Corruption Movement, Nishantha Sri Warnasinghe said that the authorities investigating into complaints said that many of the complaints were not investigated during the past few years, thus creating a huge backlog of 1600 files which have to be investigated.

“We must see if the Commission has the capacity conduct these investigations or whether there was political influence not to carry out the investigations”, he said.

He said the technical capacity of the commission also has to be improved if they were to carry out investigations effectively. To investigate into financial crime, a technical audit and a management audit were paramount.

He said 21 complaints were lodged with the Anti Corruption Secretariat and they have been informed that 20 cases were being considered for investigations and were vigilant about the investigations.

Warnasinghe said no one can expect all investigations to be completed within 100- days. “People cannot be punished in kangaroo courts like the earlier regime did. We have to follow correct procedure to investigate those complaints and punish them”, he said.

He also noted that with an election in the offing, there was an attempt to bury these investigations. We need to establish Independent Police, Judiciary and Public Service Commissions as stipulated in the election promises, if investigations are to be speeded up.

“We should go for elections after completing that constitutional reforms to speed investigations and also to establish a civilized society as stipulated in the election manifesto”, he said.

However, he said it is sad that even within the the 100- day tenure of the present government, cases of corruption were taking place. “This is unfortunate where Central Bank Governor Raja Mahendran is involved in the Treasury Bond issue. We have urged the Government to hold a fair inquiry and to suspend the Governor until inquiries were over”, he said.

'Justice hurried can be Justice buried’

The Sunday Observer spoke to a cross section of people to feel their pulse about the on-going investigations into fraud and corruption.

Good governance still to be seen!

If people waste time digging fraud and corruption over everything, leave alone 100 days, even if it takes 100 months investigations will not take place. Though we voted for good governance we cannot see it happening.

They won't even abolish the executive presidency. Wining the war was great. The SLFP has the majority in Parliament. I think it's not working out.

Upali Ranawansha, from Kottawa

Both sides are the same!

Investigating fraud and corruption is good but what we see on TV is they have accused certain people, but were unsure. Both political sides are the same.

I hope that something will happen in the future but it will be good if they proceed without hatred.

Hema, 60 years, self- employed from Seeduwa

Nothing palpable has taken place

There is no difference from the previous government. It is pretty much the same as the earlier regime. Nothing has happened. Though we voted for good governance as far as we can see, still nothing palpable has taken place.

We are waiting for it. Since there is time, let us see.

S. Kuruppuarchchi, 50 years, hometown Anuradhapura

We are still waiting...

What we expected has still not come to pass. Though they are attempting to investigate fraud and corruption, nothing has come out as yet. We are still waiting.

Ranga Prasad , 33 years, lotteryticket vendor from Colombo

Wrongdoers should be punished

Nothing much has happened so far. They are attempting to investigate fraud and corruption but this is a lie. All that they are doing is only to gain political mileage. Those who are responsible for fraud and corruption should be punished in front of the public.

If there are accusations, they should be punished. I think these cases will drag on forever!

Mohommed Shafi, 64 years- vendor at the Asia Market from Mawanella.

A JVP government is the answer

There is nothing to say about investigations into fraud. It doesn't seem to work. They keep on talking but nothing has happened. They are just lying by saying that they are arresting people. They arrest and release them again.

I think a JVP government is the answer. If that happens it will be good.

Punyadasa, 73 years, hometown Matara

A matter of time...

All I can say is the new government is carrying out all what it has promised. It is just a matter of time befor we reap the results.

Jayanthi, 58 years, an employee of the Housing Development Authority

Justice can’t be hurried

People ask why no action has been taken when allegations are made. But alleged suspects are being questioned, committees have been appointed and the CID and Bribery Commission are investigating. Yet there can be a delay and chances are high for certain culprits to get away, manipulate or destroy evidence.

This is the risk. It is said that “justice delayed is justice denied. On the other hand 'Justice hurried can be Justice buried.”

Raveendra Sumathipala, attorney- at -law from Colombo