Government Regulations strictly forbid ATN withdrawal of public funds. The balanceof about Rs, 30 million had been misappropriated by him by withdrawing the funds,from time to time, from the bank accounts of the Centre and diverting such funds toaccounts in Dubai which he had opened in his personal name. Thereafter, such monieshad been transferred by him to personal accounts of his in Canada. The Canadianconnection arose because since the late 1990’s, Professor Nanayakkara had also been working as an academic in Canada. He had earlier invested in a house and his family – wife, two adult sons and his daughter live in Canada.The funds that Professor Nanayakkara had wrongfully taken and siphoned off toCanadian bank accounts have apparently been used by him to purchase anotherresidence as an investment in Canada. This is revealed in the CID inquiry now underway.The Ernst & Young Inquiry report also reveals that Professor Nanayakkara had forgedpayment receipts for substantial sums of money showing that well-known namedindividuals had received money for services rendered at the Dubai InternationalCenter such as the delivery of lectures to students. Many of these individuals havegiven evidence and given sworn affidavits that the signature on the Receipts are nottheirs. In other words their signatures have been forged and the relevant documentsshow by the handwriting that the forgery has been done by Professor Nanayakkara.These documents and evidence and is also before the CID.The pending CID inquiry on Professor Nanayakkara has been authorized by the Attorney General’s Department because PIM’s International Centre at Dubai wasoperated as a State institution of the government of Sri Lanka. Also, this large fraud atthe Dubai Centre was highlighted by the Parliamentary Committee on PublicEnterprises (COPE) and the Chairman of COPE – Senior Minister Mr. Dew Gunasekera has strongly advised the University Grants Commission and the University of Sri Jayewardenepura (under whom Professor Nanayakkara functioned) to give allmaterials and documents and assistance to the CID in the conduct of its investigations,COPE had also advised that this fraud be reported to the Bribery Commission not as amatter of bribery but as a matter of corruption in a public sector institution. The COPEhad also noted that during his tenure as the Managing Director of PIM’s DubaiInternational Centre Professor Nanayakkara had not filled up and submitted hisDeclaration of Assets and Liabilities though obliged to do so.Coming on the heels of the CID Inquiry into Professor Nanayakkara formisappropriation of money, there is also a court case which has now found itself in theProvincial High Court of Appeal of Colombo, The court case arose in the following way.