News
Clandestine offshore transactions: Finally, Nirupama’s statement recorded
By Shamindra Ferdinando
The police have questioned former MP Nirupama Rajapaksa as regards revelations made by Pandora Papers pertaining to secret offshore financial transactions.
Authoritative sources told The Island that the police unit assigned to the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) recorded the former Deputy Minister’s statement on Dec 1, though the outfit was not aware of the development.
When The Island asked Secretary to the CIABOC Apsara Caldera on Dec 3 whether the former MP had been questioned, the official said they were yet to record her statement.
However, sources close to the investigation yesterday (9) confirmed that Rajapaksa’s statement had been recorded on the morning of Dec 1 at the CIABOC. She had been there for about three hours. However, the media hadn’t been informed of the development in spite of the CIABOC being accused of not recording her statement.
The CIABOC consists of retired Supreme Court Justice Eva Wanasundera, retired Appeals Court Justice Deepali Wijesundera and retired DIG Chandra Nimal Wakista, one-time head of the State Intelligence Service (SIS).
Pandora Papers alleged that Nirupama Rajapaksa and Thirukumar Nadesan together controlled a shell company the couple used to acquire luxury apartments in London and Sydney and to make investments.
It is alleged that Nadesan set up other shell companies and trusts in various jurisdictions, and he used them to secure lucrative consulting contracts from foreign companies doing business with the Sri Lankan government and to buy artwork.
According to the Pandora Paper leaks, in 2018, one of the companies, Pacific Commodities, transferred 31 paintings and other South Asian art pieces to the Geneva Freeport, an ultra-secure warehouse where assets are not subject to taxes or duties.
In confidential emails to Asiaciti Trust, a Singapore-based offshore services provider, a long-time adviser of Nadesan’s put his overall wealth, as of 2011, at more than $160 million. The International Consortium of Investigative Journalists acknowledged that it couldn’t independently verify the figure. It was alleged that Asiaciti Trust managed some of Nadesan’s offshore companies and trusts, with assets valued at about $18 million, according to an ICIJ analysis.
Subsequently, Pandora Papers revealed transactions carried out by R. Paskaralingam, one-time Ministry Secretary and advisor to late Presidents Ranasinghe Premadasa, and D.B. Wijetunga and former Prime Minister Ranil Wickremesinghe using similar loopholes
The CIABOC questioned Nirupama’s husband, Thirukumar Nadesan twice as regards the Pandora Papers revelations. Nirupama Rajapaksa first entered Parliament at the 1994 general election on the PA ticket. Nirupama served as deputy minister of water supply and drainage during the presidency of Mahinda Rajapaksa between 2010 and 2015.
Authoritative sources said that the CIABOC handled the investigation, having submitted an interim report to President Gotabaya Rajapaksa as requested. Sources said that the CIABOC hadn’t been able to record Nirupama Rajapaksa’s statement before compiling the interim report for President Rajapaksa’s perusal.
Transparency International Sri Lanka (TISL) has written to the President, the Speaker of Parliament and the Elections Commission of Sri Lanka calling for the Declaration of Assets and Liabilities of Former Deputy Minister Nirupama Rajapaksa. The request was made under the Declaration of Assets and Liabilities law (1975) and the Declaration of Assets and Liabilities (Amendment) law (1988).
According to the Declaration of Assets and Liabilities law (1975), candidates contesting for office in local government, provincial council, Parliament or for the post of President should submit their Declaration of Assets and Liabilities to the Elections Commission of Sri Lanka.
TISL pointed out that the Election Commission has expressed concerns over campaign expenditure. Similarly, it should be concerned about failure on the part of many lawmakers to declare their assets and liabilities.
The law further states that Members of Parliament should submit their Declarations of Assets and Liabilities to the Speaker of Parliament while Ministers and Deputy Ministers should submit their asset declarations to the President.
News
US$ 2.5 mn cyber heist exposes system failures
COPF final report on USD 2.5 mn cyber fraud recommends action against all responsible
The US$2.5 million loss incurred during Sri Lanka’s foreign debt repayment to Australia was a clear case of a cybercrime and theft, Committee on Public Finance (COPF) Chairman Dr. Harsha de Silva told Parliament yesterday.
Presenting the COPF final report on the cyber fraud, Dr. de Silva said the incident amounted to a serious financial crime and called for a comprehensive investigation, by law enforcement authorities, to identify and prosecute all those responsible.
The report revealed serious governance, procedural and operational failures that enabled the fraudulent transfer of public funds, while recommending sweeping reforms to strengthen cybersecurity, financial controls and public debt management systems.
According to the report, officials of the Treasury and the Central Bank bore responsibility for governance lapses that contributed to the failures. It also highlighted the fact that the Ministry of Finance was operating an outdated Microsoft Exchange Server after security support had ended, while basic safeguards, such as multi-factor authentication, had not been implemented.
The COPF said suspicious payment instructions linked to debt repayments involving India, the United Kingdom, Germany and Belgium had also been detected, preventing further losses. However, the US$ 2.5 million fraud materialised only in the repayment transaction involving Australia.
The report has noted that officials had failed to verify lender email domains, relied on unverified email communications and lacked adequate internal controls, allowing the fraud to continue for months.
Although the investigation uncovered system-wide weaknesses across several institutions, only four mid-level Finance Ministry officials had been suspended so far, the report said.
The COPF has recommended a special audit of the foreign debt repayment process, strengthened cybersecurity measures across state institutions, updated financial regulations and improvements to public debt management systems.
by Saman Indrajith
News
Opposition signs no-confidence motion against Justice Minister for dereliction of duty over Negombo Prison deaths
Opposition Leader Sajith Premadasa, together with Opposition MPs, yesterday signed a No-Confidence Motion (NCM) in Parliament against Justice Minister Harshana Nanayakkara.The move comes in response to the unrest at the Negombo Prison, where both prison officers and inmates were killed.
Opposition members said the Minister had failed to fulfill his responsibility and accountability regarding their safety.According to the Opposition group, the NCM seeks to hold the Minister directly accountable for lapses in ensuring protection within the prison system.
News
AG informs SC of e-visa agreement review
The Attorney General yesterday informed the Supreme Court that the government has decided to review the legality of agreements entered into by the previous administration to hand over the country’s electronic visa issuance operations to private companies.
Additional Solicitor General Viveka Siriwardena, appearing for the Attorney General, made the submission when the Supreme Court took up the fundamental rights petitions filed by former MPs President’s Counsel M.A. Sumanthiran, Patali Champika Ranawaka, and Rauff Hakeem, challenging the previous Cabinet’s decision to outsource the e-visa system.
The petitions were heard before a three-judge bench, comprising Chief Justice Preethi Padman Surasena and Justices Achala Wengappuli and Arjuna Obeyesekere.
The Additional Solicitor General informed court that the current Cabinet had appointed a subcommittee to examine the legality of the agreements with the private companies and requested time to report on its findings, stating that the review was still underway.
President’s Counsel Sumanthiran, appearing as one of the petitioners, told the court that although the present government had indicated its intention to cancel the transaction, the petitioners wished to proceed with the case.
He noted that members of the current Cabinet had been named as respondents in the petitions.The Supreme Court directed the petitioners to issue notice on the members of the current Cabinet, named as respondents, and fixed September 29 for further proceedings.
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