News
Thico scam draws Monetary Board’s attention, abuse of banking system under scrutiny
One of the alleged masterminds had been on prez’s delegation to Libya in 2009
By Shamindra Ferdinando
Secretary to the Finance Ministry Mahinda Siriwardena yesterday (07) said that the ongoing investigation into the alleged Thico scam haD received the attention of the Central Bank and Monetary Board.
Siriwardena, one of the five members of the Monetary Board said that the issues at hand would be appropriately dealt with. The Monetary Board consists of Central Bank Governor Dr. Nandalal Weerasinghe (Chairman of the Board), Dr. Ranee Jayamaha, Sanjiva Jayawardena, PC, and Nihal Fonseka.
The Finance Secretary said so when The Island raised the alleged abuse of the banking system by the Thico Group of Companies based at the World Trade Centre (WTC) over a period of time.
The official said that although periodic warnings were issued, some people continued to be deceived by high interest rates and other benefits.
Former Governor of the Western Province (January-June 2019) Azath Salley told The Island that he invested Rs 80 mn and one of his close associates Rs 226 mn in Thico Group of Companies run by Thilini Priyamali only on the assurance given by Janaki Siriwardena, Chief Executive Officer and Director of The One Transworks Square project meant to build 92 storeyed commercial and residential tower.
The One Transworks Square in late February 2019 announced the launch of phase II of the project (JW Marriott Hotel & Residences). The top management declared that the second phase would be completed in two and a half years.
Salley emphasised that he had absolutely no reason to have any doubts as regards the investments as the influential businesswoman was known to him since 2002. According to Sally, the leader of the National Unity Alliance (NUA) formerly led by Mrs. Ferial Ashraff, at the time they first met he served as the Deputy Mayor of the UNP-run Colombo Municipal Council (CMC).
Responding to another query, Salley said that when the Criminal Investigation Department (CID) had recorded his statement as regards the investment that had gone awry, he brought to the notice of the investigators the complicity of bank officials in the abuse of the banking system.
Specific reference was made to the female manager of a branch of a private bank located at the WTC as regards issuance of instructions by Thilini Priyamali to stop payments after having issued cheques to be cashed at that particular bank, Sally said. How that particular bank could allow her to irresponsibly issue cheques continuously in spite of not having sufficient funds in her account, Salley asked.
Salley emphasised that he wouldn’t have invested money nor encouraged his associate to commit as much as Rs 226 mn with Thilini Priyamali without Janaki Siriwardena’s guarantee.
So far, the Fort Magistrate has remanded five persons arrested in connection with the Thico scam till Nov 16 pending further investigations. The CID arrested Waduwaarage Thilini Priyamali on Oct 05. On Oct 17, the police arrested one of her associates, Dissanayake Mudiyanselage Isuru Shammika Bandara. Several days later, the police apprehended Wijesuriya Arachchige Kasun Harshana Perera, a director of Thico Construction Company, Ven. Borelle Sirisumana, who has reportedly declared as having attained arahathood and Janaki Siriwardena were taken in on Nov 01 and Nov 04, respectively.
A female officer, Chief Inspector Niroshani Hewapathirana, the officer in charge of the Financial Crimes Investigation Division of the CID, leads the investigation.
Appearing on ‘Truth with Chamuditha,’ Salley recently said that Janaki Siriwardena was so influential the slain Libyan leader Col Muammar Gaddafi had provided a special aircraft to fly her home. The Libyan leader intervened after she sought to return home claiming an emergency, the former Western Province Governor told the interviewer. According to Salley, Janaki Siriwardena had been part of the government delegation led by President Mahinda Rajapaksa.
President Rajapaksa visited Libya in April and August 2009. Rajapaksa is on record as having said that Sri Lanka’s economy could have collapsed before the war was brought to a successful conclusion in May 2009 if not for Muammar Gaddafi agreeing to lend 500 million USD to Sri Lanka in response to a single phone call from him.
Salley said that he had first met Thilini Priyamali at Janaki Siriwardena’s office situated at the One Transworks Square project building on May 03, this year. Declaring that he hadn’t even heard of Thilini Priyamali prior to that, Salley said that the meeting took place on Ramazan Day. The NUA leader said that within a week he gave Rs 45 mn to Janaki Siriwardena and Thilini Priyamali. “Of that amount, Janaki Siriwardena collected Rs 5 mn from me at my home and subsequently Thilini Priyamali received Rs 19 mn and 21 mn on two days. On both days, she came with Isuru Banadara who drove a 7 series Benz.”
Later, Janaki Siriwardena accepted Rs 20 mn and 15 mn on two days at her office, Sally said, altogether he invested Rs 80 mn. “I haven’t received my money back,” Salley said, acknowledging his associate, too, was in a dilemma. Although Salley declined to name the associate or what business he was involved in, he didn’t deny when Chamuditha Samarawickrema repeatedly asked whether the unnamed investor was Abdul Shattar. Attorney-at-Law Maithri Gunaratne yesterday told The Island that he represented Abdul Shattar, who was one of the few persons to lodge complaints in this regard.
Salley questioned the reportage of the Thico scam by two social media commentators in a way he alleged was meant to influence the ongoing investigations. Claiming the duo did so at the behest of Janaki Siriwardena, Salley said that some of those who were duped by the duo didn’t lodge complaints fearing repercussions. Salley said that one of the commentators referring to his military background warned the public of his shooting prowess, both in side arms and assault weapons. That was meant to scare those struggling to recover their money, Salley said, adding that The One Transworks project was now in serious trouble.
Disclosing that he got in touch with Janaki Siriwardena’s boss based in India, Salley said that the project was unlikely to be completed against the backdrop of growing controversy over this matter.
Commenting on the involvement of Ven. Borelle Sirisumana thera in the Thico ‘operation,’ Salley said that after a dispute over the failure on the part of the two women to settle money taken from him and his associate, the monk on at least six occasions assured the quick return of their money. But, so far not a single cent had been returned, Salley said, revealing that part of the money taken from them seemed to have been given to a Galle based Kattandiya, a former member of the Southern Provincial Council who is the custodian of a devalaya in Bataduwa.
Salley recalled a ceremony conducted by this particular kattandiya at One Transworks complex at the request of Janaki Siriwardena.
Salley dismissed accusations that he had an affair with Thilini Priyamali. Various Tamil social media platforms exploited unsubstantiated allegations and claims made by a particular social media activist with a military background. Those platforms would be dealt with appropriately through legal means, Salley said, warning he wouldn’t give up until he recovered the money stolen from him. Sally estimated the total amount misappropriated by Thilini Priyamali and Janaki Siriwardena at over Rs 4 bn. However, others speculated the total amount could be as much as Rs 10 bn.
An Attorney-at-Law familiar with the case told The Island that former minister who had served Chandrika Bandaranaike Kumaratunga’s cabinet is believed to have made quite a substantial investment with Thico. However, he hadn’t lodged a complaint with the police so far. Salley also claimed that he knew three other persons who lost money but they were scared to disclose their plight fearing retaliation by Janaki Siriwardena.
Under the guidance of President Anura Kumara Disanayake, the “Clean Sri Lanka” programme, implemented as a key government initiative is set to launch 34 new projects this year, and work on many of these projects is scheduled to commence by the end of this April.
In line with this, a one-day workshop was held on Thursday (10) at the “Clean Sri Lanka” Secretariat located in the Lotus Building at the Temple Trees, under the leadership of Secretary to the President Dr. Nandika Sanath Kumanayake. The workshop provided technical guidance on preparing project proposals in accordance with the formats required by the Department of National Planning for submission and approval.
The “Clean Sri Lanka” programme aims to foster social, environmental and ethical transformation across the country, with the active participation of all stakeholders. A sum of Rs. 5 billion has been allocated from this year’s national budget for its implementation.
Once the Department of National Planning grants approval for the proposed projects, detailed action plans will be developed in line with prescribed formats. It was agreed that projects deemed ready for implementation will commence before the end of April.
During the workshop, Secretary to the President outlined the government’s expectations and the intended outcomes of the “Clean Sri Lanka” programme.
Senior officials representing the Ministry of Public Administration, Provincial Councils and Local Government, Ministry of Foreign Affairs, Foreign Employment and Tourism, Ministry of Health and Mass Media, Ministry of Education, Higher Education and Vocational Education, Ministry of Transport, Highways, Ports and Civil Aviation, Ministry of Public Security and Parliamentary Affairs, Ministry of Agriculture, Livestock, Lands and Irrigation, Ministry of Digital Economy, Ministry of Urban Development, Construction and Housing, Ministry of Environment, Ministry of Industries and Entrepreneurship Development, Sri Lanka Police, and the Western Provincial Council were in attendance.
Also present were Engineer S.P.C. Sugeeshwara, Additional Secretary to the President (Clean Sri Lanka Programme) and G.M.R.D. Aponsu, Senior Additional Secretary to the President (Finance and Economic Affairs), along with other senior officials.
[PMD]
The Government of Sri Lanka has extended financial assistance amounting to USD 01 Million to provide relief to the people of Myanmar affected by the recent earthquake.
The relevant cheque was officially handed over by the Secretary to the President, Dr. Nandika Sanath Kumanayake, to the Ambassador of Myanmar to Sri Lanka, Marlar Than Htaik.on Thursday (10) at the Presidential Secretariat.
Despite the prevailing economic challenges in Sri Lanka, the Ambassador of Myanmar expressed her deep appreciation to President Anura Kumara Disanayake and the Government of Sri Lanka for this gesture of solidarity and support towards the disaster-stricken people of Myanmar.
Furthermore, the Ambassador extended her gratitude for Sri Lanka’s decision to deploy relief teams and medical personnel during this difficult time. She also noted that such acts of compassion further strengthen the longstanding religious and cultural friendship between Sri Lanka and Myanmar.
The Ambassador also briefed the Secretary to the President on the current situation in Myanmar following the earthquake.
Senior Additional Secretary to the President, Roshan Gamage, along with officials from the Embassy of Myanmar, Winh Wint Khaus Tun and Ms. Lei Yi Win, were also present at this occasion.
[PMD]
…of seven SOCs only one constituted so far
Sri Lanka’s controversial MoU on Defence Cooperation with India was unlikely to be taken up any time soon in Parliament in spite of the House Sectoral Oversight Committee (SOC) on Governance, Justice and Civil Protection that has been assigned defence, authoritative sources told The Island.
Of the seven SOCs only one was activated with the recent election of Dr. Najith Indika, MP, as the Chairman of the Sectoral Oversight Committee on Governance, Justice, and Civil Protection of the Tenth Parliament.
The inaugural meeting of the current parliament was held on 21 Nov., 2024.
Sources said that the parliament had met for the last time yesterday (10) before the Sinhala and Tamil New Year holiday. It is scheduled to meet again on May 8.
The UNDP that has financially backed the establishment of the SOC system to help strengthen the role of the parliament recently reached a consensus with the government to reduce the number of SCOCs from 17 to seven. The Island, in writing, asked for the UNDP’s reaction to the operation of SOCs but had not received a response at the time this edition went to press.
The SOCs have the power to examine any Bill, except the Bills defined in Article 152 of the Constitution, Treaty, Reports including the Annual and Performance Reports relating to the institutions coming under its purview or any other matter referred to the Committee by Parliament or any Committee or a Minister relating to the subjects and functions within their jurisdiction.
Sources said that out of the seven SOCs only one had been activated during the past five months though the government and the Opposition agreed to share the leadership of them.
Accordingly, it was agreed that the government would appoint chairpersons to four SOCs –– Economic Development and International Relations, Health, Media and Women’s Empowerment, Science, Technology and Digital Transformation and Governance, Justice and Civil Protection .
It was also agreed that the Opposition would appoint chairpersons to the SOCs on Infrastructure and Strategic Development, Education, Manpower and Human Capital, and Environment, Agriculture and Resource Sustainability to the Opposition.
India and Sri Lanka on April 5 signed six MoUs on HVDC interconnection for import/export of power, cooperation in the field of sharing successful digital solutions implemented at population scale for digital transformation, defence cooperation, multi sectoral grant assistance for Eastern province, health and medicine and pharmacopoeia cooperation. In addition to them, India, Sri Lanka and UAE signed a tripartite MoU cooperation in development of Trincomalee as an energy hub.
The Island asked Ali Sabry, PC, who served as foreign minister during Ranil Wickremesinghe’s tenure as the President (July 2022 to Sept 2024) whether the seven MoUs had been discussed during that period. We also asked him whether those MoUs should have been discussed at SOCs before finalisation.
Sabry said: “Most of the MOU to my knowledge were discussed except the one on Defence Cooperation, which I am unaware of. General procedure is the relevant line ministry prepares the initial draft and gets the input from the Foreign Ministry and goes for stakeholder consultation of all ministries and agencies involved. Then the President’s Office grants its sanction and with the approval of the AG, it goes before the cabinet of ministers. With Cabinet approval, the government could sign the MOU.”
Sabry said that he was of the opinion that once the government signed a particular MoU, it should be placed before the parliament. “MOU’s are generally not legally binding and only signify the desire to work together. If the signed MoUs were to be implemented, then they have to be followed by agreements or laws.”
He emphasised the pivotal importance of transparency in the whole process. The ex-minister said: “I think transparency is crucial in these matters. Concealment leads to speculation and assumption of the worst. The MOUs should be tabled in Parliament for public information. Discussion at the relevant SOCs would have been helpful. There are growing fears fueled by lack of information in the public domain. This is a private comment, not to be attributed to me.
Asked whether MoUs, particularly the ones on defence and energy had to be approved by the Attorney General, the former minister said that the AG has to advise the MoUs compatibility with the Constitution. “But Article 157 of the Constitution does not apply; the 2/3 majority stipulated there envisages only investment treaties.” Foreign Minister Vijitha Herath assured Parliament on April 8 that the AG had cleared all seven MoUs and none of them were inimical to the country.
By Shamindra Ferdinando
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