BOI recommends criminal prosecution of

ex-SriLankan Airlines Chairman & CEO

April 4th, 2015

A Board of Inquiry has found shocking details of corruption running into billions of
dollars, manipulations of service contracting, recruitment of unqualified staff and
major security breaches at the SriLankan Airlines under the former government.

In February, the Minister of Ports, Shipping and

Aviation Minister Arjuna Ranatunga appointed the Board of Inquiry (BoI) to report
on any abuse of power by the former Chairman and Board, as well as violations of
rules and regulations, in Sri Lankas national carrier between 2006 and 2014.
The panel headed by anti-corruption advocate and senior lawyer J. C. Weliamuna
says it has found instances of gross abuse of power by former chairman Nishantha
Wickramasinghe.
The former government of President Mahinda Rajapakse made management
changes to carry out a re-fleeting of the airline with brand-new aircraft costing
$2.3 billion despite the availability of more cost effective alternatives, a press
statement issued by the Prime Ministers Office said.

The Weliamuna report recommends criminal investigations into the entire refleeting process and have noted instances where former chairmen
Wickramasinghe, a brother-in-law of Mahinda Rajapakse, should be prosecuted, it
said.
The Board of Inquiry (BOI) found evidence of Wickramasinghe and Sri Lankan
CEO, Kapila Chandrasena falsifying documents to lease a luxury sports utility
vehicle for the use of Wickramasinghe. This was in addition to a luxury Mercedes
Benz vehicle and a Prado super luxury vehicle, the statment said.
The BOI recommends criminal prosecutions of Chandrasena as well as
Wickramasinghe, among other senior management staff.
Read Full Statement Below:
Press Statement
A Board of Inquiry has found shocking details of corruption running into billions of
dollars, manipulations of service contracting, recruitment of unqualified staff and
major security breaches at Sri Lankan airlines under the former government.
The panel headed by anti-corruption advocate and senior lawyer J. C. Weliamuna
found instances of gross abuse of power by former chairman
NishanthaWickramasinghe whose penchant for young air hostesses cost the debtridden airline even more problems.
The former government of President Mahinda Rajapakse made management
changes to carry out a re-fleeting of the airline with brand-new aircraft costing
$2.3 billion despite the availability of more cost effective alternatives.
The Weliamuna report recommends criminal investigations into the entire refleeting process and have noted instances where former chairmen
Wickramasinghe, a brother-in-law of Mahinda Rajapakse, should be prosecuted.
The Board of Inquiry (BOI) found evidence of Wickramasinghe and Sri Lankan CEO,
Kapila Chandrasena falsifying documents to lease a luxury sports utility vehicle for
the use of Wickramasinghe. This was in addition to a luxury Mercedes Benz
vehicle and a Prado super luxury vehicle.
The purchase of vehicles pales into insignificance when compared to irregularities
in the re-fleeting exercise and a fiasco involving the launch of an air taxi service
which was eventually abandoned causing millions of dollars in losses to Sri Lankan

airlines.
The management of Sri Lankan staff knowingly ignored conflict of interest in
companies and individuals hired to advise the national carrier on procurements
leading to a reasonable assumption that they were all corrupt deals.
A Cabin crew member had been released from the airline to work at the
Presidential Secretariat following a request from the then Presidential Secretary
Lalith Weeratunga, but she was actually released for Namal Rajapaksas political
work.
She had been paid by the airline, including allowances for cabin work although
there is no explanation of what services she provided except that she had been
over paid more than 4.2 million rupees.
The BOI recommends that the Sri Lankan airlines take action to recover the
overpaid amounts from the staff member who has been identified in the report
and direct prosecutions of those who authorized misappropriation of public
finance.
The BOI also found that several applicants who repeatedly failed entrance tests
were eventually recruited on verbal requests from the management.
The former chairman had also created a post of SLA Brand Ambassador and
appointed his known companion, an airhostess even though no such designation
was known to the national carrier. The couple had travelled abroad on tickets
bought by Sri Lankan from other airlines too.
In our investigation, we can conclusively hold that former Chairmans association
with cabin crew members exposed Sri Lankan Airlines to abuse of power, causing
reputational risks as well as financial losses.
BOI can also hold that there was no corporate culture in the board or the top
management to raise such issues when a senior officer or the chairman was
involved in such behavioral issues adversely affecting the company
The BOI has found CEO Chandrasena unsuitable for the job and was surprised to
discover that he was paid a minimum monthly salary of 1.5 million rupees on top
of other perks and he had also enjoyed salaries simultaneously from his other
appointments.
There had been a time when he drew a salary as Mobitel CEO as well as Mihin

Lanka CEO. The BOI recommends criminal prosecutions of Chandrasena as well as

Wickramasinghe, among other senior management staff.
The BOI also found that a London station manager who tried to stop the illegal
practice of sending motor spare parts for the use of former presidents son
Yoshitha had been suddenly transferred out on the direction of the former
President Rajapaske.
The airline had also tried to hush up two serious flying mishaps involving the chief
pilot DruviPerera and Captain U. A. V. Pathirana.
Two staff members involved in alleged human smuggling had got off lightly raising
serious concerns whether few employees continue to support a criminal human
smuggling ring.
The BOI also raised questions about the suitability of appointing a retired army
major general, P. Chandrawansa, who did not have aviation security experience on
a salary of 450,000 rupees, without following recruitment procedure and accused
him of engaging in political activities while in the employment of Sri Lankan
airlines.
The BOI recommends the termination of services, or immediate disciplinary action
for breaching company rules. Security Department was among the most
politicized.
The BOI praised two senior pilots Patrick Fernando and RangaAmadoru who
had resigned in protest against attempts to lower pass marks of recruit pilots.
Their resignation effectively prevented the selection of unsuitable candidates in
the 2013 Cadet Pilot intake. In view of their bold stand taken to protect
professional standards, BOI recommends that they be commended.
The report also lists major fraud in the award of tenders and singles out a duty
free deal and the sale of wine as one of the blatantly corrupt deals of Sri Lankan
requiring a criminal investigation. BOI points out the corrupt manner in which
General Sales Agents were appointed in many countries on behalf of the airlines
and manipulations made. BOI also recommends criminal investigations on the
involvement of UdayangaWeeratunga former Ambassador to Russia and
DilanAriyawansa in several GSA appointments.
Finally the BOI has concluded that the management culture was a major

contributory factor for abuseof power and external interference into the business
of Sri Lankan airlines.
Posted by Thavam