The Sunday Leader

Mass Fraud At Hayleys

By Nirmala Kannangara

Former Managing Director Hayleys MGT, Bandula Weerasinghe and former General Manager Logistics Hayleys MGT, Roshan Gunaratne have been taken into custody for alleged misappropriation of Hayleys MGT funds.
Extensive evidence gathered thus far in the MGT Knitting Mills investigation was reported as amounting to over Rs. 350 Million by the CID’s Commercial Crimes Division. The CID cited former Joint Managing Director Bandula Weerasinghe as the chief suspect responsible for and masterminding an unprecedented fraud in the fabric industry of Sri Lanka along with the former General Manager of Stores Roshan Gunaratne.
When contacted, by The Sunday Leader, Deputy Chairman Hayleys MGT, Sarath Ganegoda confirmed the massive fraud that had taken place and added that the company has incurred huge losses over the years.  It was reported to the Magistrate that vast quantities of fabric were unaccounted for, had been sold illegally, that accounts had been falsified and numerous other allegations were currently being investigated into, at present. The Magistrate refused bail to both suspects and placed them in remand custody until June 13.
The defrauding of the public quoted company led to quick responses by the company to its shareholders, and a further investigation by the Hayleys MGT Board in December 2010. Hayleys has since reported that corrective measures have been put in place at MGT. Meanwhile The Sunday Leader spoke to Attorney-at-Law Jeevantha Jayathilake who is looking after the interests of Hayleys MGT and according to him, the two accused ha illegally sold vast quantities of fabric to the local market but have failed to remit the money to the company accounts.

13 Comments for “Mass Fraud At Hayleys”

  1. Bossa

    These frauds are happening at many public companies but go unnoticed…. even in the other the largest conglomerates…

  2. Kapilavastu

    It is very very strange that the former Managing Director Sam Spezza, the biggest rogue who had initiated this and groomed Bandula Weerasinghe is left out. He used to under-invoice and the difference on the actual value had been credited to his private account overseas by his buyers. In addition, he is the only Managing Director in the entire Universe who demanded a commission on all local purchases as well as overseas business. Moreover Sam Spezza, an Italian, gets domicile in Australia and doing business in Sri Lanka. Wonder where he is now!!!

  3. Max Headroom

    I do not know the alleged first accused in this fraud but I know well of the alleged second accused – Roshan Gunaratne. At the outset, I must mention that this man is a bumptious fellow. He thinks no end of himself.

    I have known him for a long time. The last time I met him was at a dental clinic,in early January this year. He was seated next to me and we would have been there for over an hour. He neither smiled with me nor spoke to me. He was unusually preoccupied with him. Knowing that he normally pretends not to see anyone, I knew that he did not want to speak to me and introduce me to his wife. But now I think the man was sufferring because he would have known that he had got himself into a real quagmire. I think his pride would have kept him away from blowing the whistle and seeking help. What a fool? After all he is a MBA from PIM!

    Nevertheless, I am surprised that Roshan Gunaratne could be part of such a massive fraud. He need not do that because he had the money; a nice family and connections that could take him anywhere in Sri Lanka or overseas.

    • Kapurala

      My friend Max Headroom, ” nice family and connections that could take him anywhere in Sri Lanka or overseas” , this type of people are the Biggest Cheaters in the world. In sinhalese language we call them “Nambukara Horu”. You can see bunch of them in the parliament to find out more.We are in world records,
      Tsunami donations Fraud,
      Temple Trees Blue Saphare Fraud,
      10% in Tender fraud,
      LTTE funds in the foreign banks fraud,
      Gold found in the operation fraud. Not only that when the war against LTTE every bullet which ever killd either terrorist or civilian some one gaind money to his bank account and whole fortune invested in “Caribian”. This records today with the hands of God Kataragama

  4. Serious Auditor

    What was the external auditors were doing until this took place. Hayleys should sack them and issue a statement to the Media.
    All the other companies should refrain from using this auditors since if they has not detected this in a very successful conglomerate like Hayleys what will they bother about a small company.

    • Simple Sydney

      I fully agree. For too long external auditors have taken their job lightly and approved anything and everything put in front of them just to make sure they will continue as auditors for the following year. Name them and shame them.

  5. mala

    My husband told me that this sort of thing is happening at the dipped products factory also. But nobody takes him seriously.

    • Rosha Meewala

      We can develop this country if the people of this country take initiatives to get rid of corrupted politicians from the parliament.

      • God will judge them for what they have done, Personally as a former senior employee I saw it coming. It takes particular self absorbed individuals with little respect for anyone other than their own hidden agenda. Career development should be scrutinized for personality traits.

  6. Nihal

    They employ rogues without checking their credentials. there is another one at Hayleys Agro who was working for Emirates NBD bank in Dubai, who has taken massive loans & utilized credit cards from many banks to the maximum & has fled back to Sri lanka & is holding a good position there now!

  7. Peiris

    During the latter part of the 80′s a certain prominent Manager of the Freight company within the Hayleys group which is located at Foster Lane, was found to have misappropriated huge sums of money from that company and was immediately asked to resign by the management. In spite of the failed intervention by a powerful government minister at that time who had a “very close connection” to this man through a “certain family member” of his, this man eventually resigned under pressure due to the “zero tolerance” of such corrupt activities by the then Chairman of Hayleys group, the late Mr Lal Jayasundera. The irony of it all is that this man is now a very prominent figure in politics in Sri Lanka and every now and then is heard crying “corruption” against the present government!

  8. kudu

    do not worry the Raja pakshes will get them
    let this be a lesson to all the corporate crooks
    bleeding this country to death
    at the expense of the poor and abused workforce
    of these big companies
    teach them a lesson
    make an example

  9. Babaanis

    Nobody care about corporate frauds in Sri Lanka, the reason is today in SL legislators are not parliamentarians, laws constituted in boardrooms of top corporate offices and booty shared by both-Politikkas and corporate men.

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