Spotlight

New twist in Ceylanka story

By Dilrukshi Handunnetti

The travails of Ceylanka Publications, a Ceylinco subsidiary floated after the collapse of the Ceylinco empire are such that it is courting controversy yet again.

The initial controversy was over the launching of a fresh company while the entire Ceylinco Group crash-landed leaving thousands of investors high and dry, but now there is an issue of non payment of editorial and support staff that had caused five out of a 26 member staff to resign in protest while others claim that they have been paid between Rs. 5,000 to Rs. 10,000 for the past three months.

It is also learned Nadee Wasalamudali, one of the highest paid executives too has handed in her resignation last week citing ‘inability to work in a failed company.’

Independent Financial News & Views (Pvt) Ltd, one of the many companies founded by Lalith Kotelawala publishes three magazines namely Aratuwa,  Akura and Sports Today.

There are other publications such as Kedapatha largely meant for the Sinhala reading Sri Lankan immigrants while another, Aratuwa Italia is published purely for Sri Lankans living in Italy. While these magazines are largely for promotional purposes and to boost Kotelawala’s ego, staff admit to these publications being unprofitable.

The board of directors of the original company included Sicille Kotelawala, Mervyn Jayasinghe (Deputy Chairman), Chamil Waduge (Executive Director) and seven others.

Adding a fresh twist to the tale was the launching of a new company named Ceylanka Publications (Private) Limited. Jayasinghe is also the co-chairman of F & G Co. Ltd., an organisation presently under a cloud with depositors crying foul.

No option

While duped investors are left with no option but to organise protests and pickets demanding their monies back, those from the original Ceylinco publishing house have ably managed to carve out a new publishing company from the former.

The new company was registered as recently as on March 18, 2009 but its directors defend that they have every right to form new companies under the Articles of Association (AoA), especially when the objectives of the original company were not fulfilled.

The new company’s board of directors are D.M. Jayasinghe (Chairman), Chamil Waduge (Managing Director) and T.K. Weerasinghe (Director Legal). The company has its registered office at 26/1, Dr. Lester James Peiris Mw, Colombo 5 which is also the address provided in the publications of the original company, Independent Financial News & Views (Pvt) Ltd.

 Following The Sunday Leader expose on the floating of a new company named Ceylanka (Private) Limited, its Executive Director/ Editor in Chief, Chamil Waduge has sealed the computer room of the publication house alleging leaking of information and claimed the Criminal Investigations Department (CID) sealed the unit as the Ceylinco group is now under its microscopic gaze.

Further, employees told The Sunday Leader that Waduge has taken staff to task for leaking information to the newspaper and instructed data should not be shared with media organisations.

Reserved for Kotelawala

An insider told this newspaper that one computer had only stored information and images of Ceylinco Chief Lalith Kotelawala and that is specially secured after The Sunday Leader expose.

When contacted, Chamil Waduge said it was an internal matter and claimed there was ‘unnecessary bad publicity’ being given to Ceylanka. He further defended the legal right to launch a fresh company which is not precluded by the Articles of Association (AoA). He ruled out any transfer of funds from one company to another while adding that it would not be illegal to do so.

If the truth be known, insiders claim that there is no money within the organisation to transfer and quoted an instance of a clay till kept inside the executive director’s office being broken and some Rs. 13,000 being culled from the till.

Amidst fears that Ceylanka (Private) Limited is processing a loan with the Merchant Bank of Sri Lanka (MBSL) fuelling further fears amongst duped depositors, MBSL Chairman, Janaka Ratnayake denied it, claiming that if any company requesting for a loan is linked to Ceylinco or Seylan, such loan would not be processed.

Managing Director, Ceylanka Publications, Chamila Waduge told The Sunday Leader that the original company had not been liquidated and was still in operation.

Apathy over parliamentary committee reports

By Dilrukshi Handunnetti

The Commission to Investigate Allegations of Bribery and Corruption has submitted a progress report to parliament in January after conducting investigations into 16 public institutions, based on the findings of two reports by the Committee on Public Enterprise (COPE).

The progress report seeks to inform the House the overall status of the investigations into the 16 public institutions but legislators are skeptical about concrete action being taken against culpable institutions due to lack of interest to push for stringent action.

The scope of these probes included the acquisition of 621 acres in Passara by the Yashoda Group of Companies, the sale of eight acres of land to John Keells Holdings after alleged devaluation of the property, the take over of filling stations by Indian Oil Company and several others.

The Director General, Commission Investigating Allegations of Bribery and Corruption, Lakshmi Jayawickrema has written to Deputy Secretary General of Parliament, Dhammika Dassanayake on January 15 (Ref: BC/2950/07) informing that the Commission currently investigated some 13 public institutions based on the first COPE report and three others based on the second report.

Inform parliament

Jayawickrema sought to inform parliament of the various stages of the investigations conducted by the bribery authorities in connection with the two COPE reports.

The institutions under probe are the Peoples’ Bank, Sri Jayewardenepura Hospital, Petroleum Corporation, Telecommunications Regulatory Commission (TRC), Board of Investment (BOI), National Water Supply and Drainage Board (NWSDB), Land Reforms Commission (LRC), National Lotteries Board, Bank of Ceylon (BoC), Ceylon Electricity Board (CEB), Sri Lanka State Enterprise Restructuring Commission, Geological Survey and Mines Bureau (GSMB) and Sri Lanka Ports Authority (SLPA).

According to the progress report, investigations still continue with regard to People’s Bank and the legal report on Sri Jayewardenepura Hospital is complete while the probe on CPC is at its last stage.

The Commission is probing the CPC with regard to the handing over of filling stations to an Indian oil company.

Investigations into the TRC have been concluded and the legal unit is studying the file while probes have been concluded with regard to the Board of Investment (BoI) and National Water Supply and Drainage Board (NWSDB).

District secretaries statements are being recorded with regard to the investigations that are still being conducted on the Land Reforms Commission (LRC). Here, the probe concentrates on the acquisition of 621 acres in Passara by the Yashoda Group of Companies. The matter is currently before a mediation board and the Bribery Commission now awaits the mediation board report.

Some probes concluded

The probe on the National Lotteries Board (NLB) has been concluded though investigations into the activities of Bank of Ceylon (BoC) are partially completed.

The Commission has also concluded that evidence was insufficient to file action with regard to the Kerawalapitiya combined power plant under the Bribery Act.

The Commission has also looked into domestic electricity meters and aluminum rod purchasing contracts by the CEB as well.

Among the key probes undertaken were the inquiries into activities of the Sri Lanka State Enterprise Restructuring Commission. Here, the commission probed the sale of over eight acres of land to John Keells allegedly after devaluing the prime property situated in Colombo 13.

Under the activities of the Geological Survey and Mines Bureau, the Commission conducted inquiries into the sale of its building situated in Bauddhaloka Mawatha, purchasing of a land in Orugodawatte belonging to the State Timber Corporation (STC) and the acquisition of Vilasitha Nivasa.

Further, investigations have been completed in connection with three specific incidents relating to SLPA.

The Bribery Commission has also probed three other institutions based on the second COPE report.

According to Director General of the Commission, probes have commenced on allegations concerning National Housing Development Authority (NHDA), Ruhunu Development Bank and Mahapola Scholarship Trust Fund.

Under scrutiny

In a letter dated January 15, 2009, (Ref: BC/972/2008), Director General of the Commission, Lakshmi Jayawickrema has informed parliament that the three named institutions are under scrutiny at present. 

Accordingly, there had been six irregularities within the NHDA, currently being probed by the anti graft commission and statements are being recorded at present from relevant NHDA officials.

Likewise, two irregularities committed by the Ruhunu Development Bank too are being currently gone into.

It has transpired, according to the Commission, an amount of Rs. 102 million had been deposited in Vanik Incorporation which has provided the basis for a probe on officials not just from the Ruhunu Development Bank but also from the Central Bank and Finance Ministry. Besides a fraud relating to the printing of passbooks too was gone in to based on a complaint received while investigations continue with regard to the Mahapola Scholarship Trust Fund.

But legislators now feel, the surge of interest and action taken by the legislature while Wijedasa Rajapakshe headed the parliamentary committee has significantly dulled and COPE may not be proactive in the way it previously was.

Take action

Commenting on the bribery probes, former COPE Chairman Wijedasa Rajapakshe said it was the duty of the relevant authorities to take necessary action against the institutions in the event of any contravention of the law.

He said the parliamentary committees such as COPE and PAC could be used to ensure transparency but it required political will.

However, a top parliament official said the anti graft body would continue to report to parliament on the state of its various probes and the legislature would press for action when the probes are completed.

“There is so much of talk about good governance and transparency. A fully functional PAC and COPE would be the best evidence of the state’s commitment to higher ideals,” noted Democratic Peoples’ Front Leader and Parliamentarian, Mano Ganesan.