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CID informs court that UK citizen pocketed part of broker’s fee

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Alleged misappropriation of Rs 195 mn:

The CID informed Fort Magistrate Court that British citizen Kathiravelpillai Satkunam admitted to have pocketed the broker’s fee in a case involving approximately Rs 195 mn, which been fraudulently obtained from a group of shareholders following the sale of a plot of land at Kollupitiya, the majority shareholder being a UK-based limited liability company.

Latest court papers filed indicated that the accused Kathiravelpillai Satkunam of 43, Hays Walk, Sutton, an affluent suburb in the United Kingdom, in his statement to the CID’s Commercial Crime Investigation Division, admitted that he misappropriated a large portion out of a sum of LKR 131mn in 2010.

Further to our report on 31 May 2023 on the alleged misappropriation of LKR 195mn, a further hearing was held of case reference 8919/2018 at the Fort Magistrate Court on 13 September 2023. The hearing was held in open court with the primary suspect Kathirvelpillai Satkunam physically present in the dock.

The B Report submitted by the CID states that according to the statement recorded from K. Satkunam the land owned by Access Direct Colombo Limited was sold to DR Industries (Private) Limited, and Milroy Perera was the broker. The suspect stated that after the land sale, Rupees 131,718,000/- was allocated to Milroy Perera as broker fees and only a part of it was paid. The remaining money was deposited in the Nationwide Bank account in England believed to be K. Satkunam’s.

The B Report further states that on 17 August 2023, the suspect K. Satkunam came to the Criminal Investigation Department with Mr Gayan Kalatuawa, Attorney-at-Law and Mr. Buddhika Karunananda, Attorney-at-Law and gave a voluntary statement, in addition to the statements recorded earlier.

In that latest statement following facts were revealed: the land at No. 586, Galle Road was sold for 3.6 million rupees a perch and it has been stated that an amount of Rupees 595,507,571/- was transferred to Access Direct UK Limited.

The 17 May 2023 hearing Court papers revealed that the CID had recorded a statement from another fellow shareholder of Access Direct UK Ltd, Mr Shanmugasunderam Surendran known as Shawn Surendran. At present he works for Riverstone Corporation Ltd, SPC House, Restmor way, Wallington, Surrey, United Kingdom. His statement was recorded at Bogala Court, Colombo 5. He invested hundred thousand pounds initially at Access Direct UK Ltd and then a further thirty seven thousand pounds. He reported on February 23, 2011 to the rest of shareholders on behalf of the primary suspect Mr. K. Satkunam that the land was disinvested for Rs 658m. He told the CID that he got the figure from Mr Ron Smith of Wilkins Kennedy a firm of accountants in the UK. He also told the CID that he wasn’t aware that the land was actually sold for Rs 790m.

The Magistrate granted permission to the CID to continue with the investigation. Travel ban on Mr K Satkunam was lifted temporarily, until the next court appearance on December 13, 2023 on condition that two sureties of Rs 10m and property bail worth Rs 10m to be placed in addition to the existing two sureties, each value of Rs 5m, in total of Rs 30m.

The CID’s Commercial Crime Investigation Division has been investigating the complaint about purchasing 219.5 perches of land on Galle Road, Kollupitiya, in 2004. Ten shareholders of a UK-based company, Access Direct UK Ltd, had invested 1.3 million sterling pounds in purchasing the land through a wholly-owned registered subsidiary company in Sri Lanka, Access Direct Colombo Ltd. This land had then been sold in July 2010.

The CID’s investigation uncovered that the land was sold for Rs 790 million. It has been established that only Rs 595,507,721 of the money received from the sale of the land was sent to Access Direct UK Ltd. It is alleged that the remaining Rs 194,800,279 had been obtained fraudulently, and the amount had been misused in a criminal breach of trust.



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French Navy Ship PROVENCE arrives in Port of Colombo

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The French Navy Ship PROVENCE arrived at the Port of Colombo on a formal visit on Sunday (16 Mar 25) morning.

She was welcomed by the Sri Lanka Navy in compliance with the time-honoured naval traditions.

The 142.20m long Destroyer is Commanded by Captain Lionel SIEGFRIED and manned by a crew of 160 members.

During the stay in the island, crew members of PROVENCE will visit some tourist hotspots in the country and the ship is scheduled to depart the island on 20 Mar.

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Court of Appeal dismisses Ex-IGP’s writ petition

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The Court of Appeal this [17] morning  dismissed the writ petition filed by former Inspector General of Police (IGP) Deshabandu Tennakoon, seeking an interim injunction to prevent the execution of the arrest order issued by the Matara Magistrate’s Court against him.

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Project to distribute smart boards for 1,000 schools with the goal of enhancing education has completely failed to meet its objectives and the investment of LKR 1.7 billion has been underutilized -PM

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Prime Minister Dr. Harini Amarasuriya stated that the project to distribute smart boards for 1,000 schools with the goal of enhancing education has completely failed to meet its objectives and the investment of LKR 1.7 billion has been underutilized.

The Minister of Education, Higher Education and Vocational Education, Prime Minister Dr. Harini Amarasuriya made these remarks in the Parliament complex on Saturday [March 15, 2025] while discussing the project to establish networked classrooms by facilitating smart boards to the school system.

The Cabinet Memorandum No. AMP/24/0385/601/027 and the Cabinet decision dated March 4, 2024 has been presented for the approval of the provision of digital smart boards and other related equipment to 1,000 selected schools, with the objective of enhancing education through the establishment of a systematic network of smart classrooms within the school system funded by the Sri Lanka Telecommunications Regulatory Commission (TRCSL).

Subsequently, an additional Cabinet Memorandum, No. AMP/24/0978/630/009, dated May 14, 2024, was presented, proposing the implementation of this project in alignment with the project proposed by Chinese government for digitalizing Schools. Under this Chinese-funded project, plans were made to establish a centralized control center and a studio facility, along with the provision of an additional 500 smart boards. Accordingly, the integration of both projects was proposed to create a network of smart classrooms across 1,500 schools.

The cabinet decision has been presented requiring Sri Lankan Government to purchase smart boards with specifications identical to the smart boards which were proposed to be distributed by the Chinese Government.

In line with the Cabinet decision of May 14, 2024, the procurement for the 1,000 smart boards began in July 2024. However, at the time of purchase, the project proposed by the Chinese Government was still at the discussion stage, and no official agreement had been reached regarding the technical specifications of the smart boards.

However, the procurement was carried out through the Sri Lanka State Trading (General) Corporation without a competitive bidding process, relying on price quotations obtained from a single supplier based on unclear sources that were not officially verified by the Chinese government. The Sri Lanka Telecommunications Regulatory Commission incurred the full cost of LKR 1.7 billion, with an additional LKR 430 million allocated for services and installation.

The aforementioned procurement appears to have been conducted at an unusually accelerated pace when compared to the standard procedure typically followed for high-value procurements. Specifically, price quotations were requested on July 5, 2024, opened on July 15, 2024, and by July 16, 2024, the Technical Evaluation Committee had completed and submitted the report. Subsequently, the report was reviewed by the Standing Procurement Committee appointed by the Cabinet on July 17 and 18, 2024, with recommendations being provided on the same day. These recommendations were then submitted to the Cabinet on July 23, 2024, and approval was granted on July 30, 2024. Followed by this, the purchase requisition was issued to the supplier on August 5, 2024. Accordingly, the entire procurement process was completed within a span of one month.

As part of this procurement, a Letter of Credit was opened to facilitate the payment of USD 3,135,392.50 for 1,000 smart boards to Intelligent Express Limited Hong Kong, which has been identified as a representative of Huawei. While the relevant Cabinet paper indicated Huawei as the designated manufacturer supplying the smart boards under the Chinese funding project, the Chinese government has not yet confirmed the selection of such a supplier for this project.

According to aforementioned purchase requisition, the purchased smart boards and related equipment were delivered to the Ministry of Education in October 2024 and are currently stored at Pattala Gedara Teacher’s Training College. Although the procurement of the aforementioned Smart boards by the Sri Lankan Government has been finalized, the relevant project, which was intended to be implemented under the funding of Chinese government, has not yet commenced and a final agreement regarding its implementation has not been reached.

Prior to reaching a final agreement on the network integration facilities and centralized system proposed by the Chinese government, the procurement of these smart boards has resulted in the inability to utilize the equipment for the intended purpose. It is expected that the Chinese aid project is at the discussion stage, and the implementation may extend until the end of this year. Further, no official decision has been made regarding the selection of a supplier for the project.

Given this situation, if the 1,000 smart boards and other equipment currently stored in warehouses are to be distributed to schools, school principals must be provided with clear instructions on their proper use. However, due to the delay in implementing the project under the funding of the Chinese government, specific guidelines on the installation and utilization of the equipment cannot yet be issued.

Since network integration cannot be carried out at this stage, these smart boards can only be used as standalone classroom units. As a result, the objectives of the project will not be met, and the investment of LKR 1.7 billion made might be considered to be underutilized.

A formal investigation has been initiated to determine whether financial and procedural irregularities have occurred in this procurement. Additionally, discussions are currently continued with the Chinese government, and efforts are being made to secure the proposed facilities from China at the earliest convenience.

[Prime Minister’s Media Division]

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