By Dilrukshi Handunnetti
The
goings on at the Gymkhana Club, a foremost sports and
recreation club in Sri Lanka is such that people may
just conclude that the place is anything but sporty,
given all its foul play.
The
premier club is again in the eye of a storm with the
Criminal Investigations Department (CID) probing into an
alleged criminal misappropriation of over Rs. 30.3
million.
With
the Club’s Annual General Meeting (AGM) just five days
away, the members are busy battling it out and are
having to contend with bitter legal disputes, Bribery
Commission investigations, CID probes and internal
inquiries. And the latest concerning Gymkhana is the CID
report filed before Colombo’s Chief Magistrate with
regard to Case No: 9592/01/08 based on a complaint
lodged by incumbent Gymkhana Club President, Ranjan
Kanagasabai.
According to the “Final Further Report” on the CID
investigation filed by Officer In Charge, Preliminary
Investigations Branch, Criminal Investigations
Department, IP Rohan Masibula, investigations so far
have revealed that ‘a few members of the past committee
of the club have connived in issuing memberships to
various people on submission of falsified information
thus depriving the club of a proportion of its revenue
due to the stealthy issuing of membership on falsified
data.’
Legal action
Besides, the CID report states that following an
investigation in respect of some dishonoured cheques to
the value of over Rs. 11 million issued to the Inland
Revenue Department (IRD) for payment of VAT, the
Department was now contemplating pursuing legal action.
The
CID report also does not mince words as to the possible
motive behind the issuing of cheques at a time when the
club’s fortunes have dwindled. The report adds: “Further
investigation is being carried out to establish the
motive behind the issuing of cheques for such a large
sum, when the persons who signed the cheques were well
aware that there were no funds in the club’s accounts at
that time.”
There
is more to the Gymkhana story than a few cheques
bouncing. The CID probe also unearthed the fact that a
cheque bearing No: 048427 to the amount of Rs. 232,500
issued in May 2007 for the purchase of electrical and
wiring equipment was returned to the club account in
July 2008 without being utilised for any club purchases.
What’s
more, when the matter was further investigated, it has
transpired, according to the CID, the said amount was
removed by the Past Vice Chairman Shane Dullewa, with
approval of the Past Chairman Shammi Silva and Past
Secretary Shiran Anthony.
The
CID report adds that the money was kept with them for
almost one year without being utilised for any Gymkhana
Club activities and thereafter Shammi Silva had
deposited the same amount to the club account and handed
over the payment slip to the club accountant.
Motive
Since
the dates of withdrawing and depositing of the money had
been closer to the election period of the club, an
investigation is now being carried out to identify the
motive behind the withdrawal and reimbursement of such
amount, the CID report adds.
Besides, there are other scandals that have surfaced in
the CID report.
Accordingly, even though the Proprietor of Propel
Advertising Company, one Suneth Saputhanthri in his
statement confirms that as per the agreement reached
between them and the Gymkhana Club, he had issued
cheques to the value of Rs. 250,000 in five instances to
the club with the intention of having a hoarding put up,
the Club Accountant Nishanthi Dhammika Perera had
confirmed to the CID investigators that the club had
received only Rs. 45,000 from the above mentioned total
amount.
“So
far, we have not received any response to the request
made to the Bank of Ceylon Branch at Katubedde to obtain
details of the persons who have withdrawn the balance
amount,” adds the CID report.
Then
there are other matters concerning this premier sports
and recreation club. Investigations are also being
carried out in respect of the purchase of an electrical
cable to the club from M/s. S A S Engineering Company.
The
CID report clearly states that the findings have
revealed that M/s. S A S Engineering Company had
purchased this cable from M/s Alucom Engineering Company
for a sum of Rs. 2.12 million. The very same day, it was
sold to Gymkhana Club by S A S Engineering for Rs. 2.83
million.
Incidentally, the Proprietor of M/s S A S Engineering
Company had served in the previous committee of the
Gymkhana Club as Bar and Restaurant Secretary.
Two camps
As the
club prepares for its AGM on July 31 with the past and
present administrators clearly forming themselves into
two camps, an interim investigation report is expected
from the CID anytime soon. For the moment, the CID has
also issued a statement that nobody is being faulted for
any criminal act.
Meanwhile, based on a complaint made by Sandra Jayamaha,
a club member for the past eight years, the club
administrators called for explanation from three key
members. Their memberships too were suspended.
On
June 19, 2009, S. Muralidharan who was especially
appointed to co-ordinate matters in this regard wrote to
the Club’s Past Secretary Shiran Anthony, Past Vice
President Shane Dullewa and Past Pavilion Secretary,
Prashantha Wimalasena requesting them to show cause with
regard to some allegations leveled against them.
However, on
July 5, 2009, the original complainant, Jayamaha, wrote back to
the club administrators calling for the abandoning of
the internal inquiry based on her letter as ‘another
forum’ was looking into the same matter.
While
a sports and recreation club with a private membership
does not concern this newspaper, it is of public
interest when its financial dealings become contentious,
placed before bribery authorities for investigation or
the conduct of the membership may beckon criminal
action.
Multiple controversies
In
recent times, the leading club has been embroiled in
multiple controversies including a controversy regarding
a third party running a nightclub called Zetter on the
club premises followed by the controversy over fund
raising in a ‘questionable manner’ by the present Club
President, Ranjan Kanagasabai by allegedly exerting
influence to secure sponsorship money for the club.
The
Gymkhana Club is the parent club of the Colombo Cricket
Club (CCC), Colombo Hockey and Football Club (CH&FC) and
Queen’s Club.
Amidst
all this, the club will hold its Annual General Meeting
(AGM) on Friday, July 31 and the mud slinging is sure to
reach fever pitch.
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I got the best deal for Gymkhana — Former Secretary
Former
Club Secretary Shiran Anthony insists that he got the
‘best deal’ for the club when he purchased an expensive
cable from S A S Engineering and refuted all charges of
corruption leveled against him.
“I
personally handled this matter. We got three quotations
and selected the best offer. Not only did I get the best
quotation but also I got it reduced by another 20%. We
also offered it to a senior club member with a history
of 40 years in electrical business,” he said.
Anthony also said besides being the lowest and the best
offer and another 20% reduction in price being worked
out, it came with a credit period of two months.
“The
committee approved this deal and that’s why we went
ahead with it. Ironically, this was not paid for just by
the club but by three other parties. We agreed to share
the cable after they independently called for quotations
and accepted that what I had was the best offer anybody
could think of. The other parties included Sentra,
Zetters, another club and a swimming pool.”
Anthony further said the other parties would not have
reimbursed the money if they felt he (Anthony) was
making a quick buck on the said deal.
“We
offered them the option of getting quotations but
everything was well above the S A S Engineering offer.
The price we paid for this cable was less than a
contractor’s price which is not available for mere
purchasers like us,” he explained.
“I am
still challenging anybody to get anything lower than
this from the market,” he further added.
Anthony added that the club had no idea as to any profit
margin the agent company may have enjoyed and insisted
despite the difference of purchasing and selling price.
The market price would have been much higher. “We don’t
know about their business understanding etc. and the
club was not privy to such knowledge.” “Gymkhana did not
foot the entire bill. Others would not have shared the
expenses if they felt there was a discrepancy. Nobody
could match the price at which we purchased the cable,”
he added.
Alleging an attempt to bring him to disrepute, Anthony
said at the very first committee meeting held after
these allegations were floated, he requested for the
appointment of a special committee by the club to probe
any malpractice. “I wanted my name cleared. At this
meeting, committee members together with Club President
Ranjan Kanagasabai felt there was no need probe the
matter. I am surprised that a month later, the same Club
President has lodged a complaint with the CID with
regard to the same cable purchase.
If he
had any doubts, the matter should have been taken up at
the very first club meeting at my request. He didn’t do
his part then and later complained to the CID. I still
challenge anybody to make a better offer than what I got
for our club,” Anthony said.
As for
approving the payment of Rs. 232,500 by cheque No:
048427 for the purchase of electrical and wiring
equipment, Anthony added that the entire committee
approved payment. “But the equipment did not reach us on
time after which we asked for a reimbursement as our
purpose had not been served. The committee knew that
money went out and that the same amount returned to the
club account,” he added.
CID to continue with investigation
When
contacted by The Sunday Leader, CID officials involved
in the investigations confirmed that they were ‘going
ahead’ with the probe. “There is ample scope for an
investigation,” they said, adding that nobody could be
imputed with criminal motive as yet. “We have to wait
till the investigations are over,” they said.
President declines to comment
President, Gymkhana Club, Ranjan Kanagasabai when
contacted by The Sunday Leader, declined to comment. He
stated that the law has been set in motion and it was
inappropriate for him to comment.
CID has not inferred any criminality — Past President
Past
President, Gymkhana Club, Shammi Silva told The Sunday
Leader that the membership wanted a re-audit on certain
items that were subject to qualification by the original
auditors. These items form the basis for the CID
inquiry. Ernst & Young carried out this special audit
but many documents were missing as some club members
have removed some documents. “In fact, these documents
accounted for some Rs. 15 million no less. The auditors
need them to carry out their re-audit,” explained Silva.
He
said the ‘maligned’ members had to obtain copies of the
documents from the suppliers to assist the special
audit. “Now I think the astronomical Rs. 30 million has
been reduced to some Rs. 700,000,” he said.
As for
the ongoing CID investigations into dishonoured cheques
to the value of over Rs. 11 million to the Inland
Revenue Department (IRD), Silva said the amount was Rs.
6 million while the rest was the penalty sum.
“Every
time we renew the bar licence, we have to pay VAT. The
agreement was to pay Rs.420, 000 to cover the Rs. 6
million. Three cheques bounced after the new
administration took over. They did not honour the
existing cash flow plan with the IRD. Naturally our
signatures had no value after we went out of office and
the cheques bounced,” he added.
Silva
said the unwritten rule for 150 years was for
administrators to honour the existing agreements. It is
a club requirement to pay. This money was spent for this
Club’s benefit.
“We
had a cash flow plan with the rent payment of Sopranos
to pay IRD Rs. 420,000 per month until we settle Rs. 6
million,” he added. He also refuted the charge that he
subsequently deposited Rs. 232,500 in the club account
meant for the purchase of electrical and wiring
equipment. I never handed over payment slips either, Mr.
Dullewa did.”
As for
some Rs. 250,000 paid by Propel Advertising Company to
erect a hoarding, Shammi Silva said only Rs. 45,000 has
reached the club. “The said company had spent money but
when cheques were being verified, only some cheques have
reached us. They must have given the rest of the money
to somebody else, and certainly not this club or any one
of its committee members,” he said. |
