News
Suspension of Bimputh Finance and Rs 69 mn loss for HDFC: Ex-COPE Chief admits lapses
By Shamindra Ferdinando
Former Chairman of Committee on Public Enterprises (COPE) Prof. Charitha Herath yesterday (13) said that undue delay on the part of a particular parliamentary watchdog committee to call certain state enterprises should be inquired into against the backdrop of some hidden facts and perhaps political interference.
In the case of HDFC Bank, massive loans had been granted to some politicians though the Auditor General’s Department and COPE failed to ascertain the situation, the rebel SLPP lawmaker claimed. The MP found fault with what he called the COPE review committee.
Prof. Herath said so when The Island sought his explanation as to how COPE, during his leadership, conveniently failed to summon HDFC Bank under investigation for suffering Rs 69mn loss by granting a special interest rate to a fixed deposit of the CEB and releasing a loan amounting to Rs 350 mn to Bimputh Finance PLC (BPF) on July 18, 2018.
During COPE proceedings in respect of HDFC Bank late last month, it was revealed that it hadn’t been summoned before the watchdog committee for a period of nine years. According to Director Legislative Services, the bank last appeared before COPE on Nov 04, 2014 in the run-up to the presidential election won by Maithripala Sirisena.
JVP MP Sunil Handunnetti served as Chairman COPE during the Yahapalana administration. After Gotabaya Rajapaksa was elected President in Nov 2019, Prof. Herath succeeded Handunnetti. Following Gotabaya Rajapaksa’s ouster in July 2022, Parliament elected Prof. Ranjith Bandara as the new COPE Chief. Former MP Handunnetti didn’t answer his phone.
Responding to another query, Prof. Herath said there are 214 corporations and nearly 20 other institutions subjected to scrutiny by COPE though the parliamentary watchdog missed HDFC Bank. The MP claimed that there were no other problems in HDFC bank other than the issues at hand.
MP Herath said that now latest statistics were available and therefore COPE could go into HDFC Bank. “I believe special measures should be adopted to investigate hidden cases in some state enterprises. We should implement a special review process to identify cases which required special attention,” Prof. Herath said.
Stalled investigations have revealed that disciplinary action hadn’t been taken in respect of an employee of the HDFC bank in spite of him being found guilty of playing the role of a clandestine agent in the deal with CEB.
COPE, under the leadership of Prof. Ranjith Bandara, has recommended to the Finance Ministry to inquire into the issue at hand and take tangible action against the HDFC employee within a month, according to a statement issued by Janakantha Silva, Director Legislative Services / Director Communication (Acting).
Against the backdrop of COPE declaration that the HDFC Bank faced problem in recovering Rs. 350 mn loan given to BPF, the Central Bank has announced that BPF had been prohibited from operating with effect from Sept. 01, 2023. Prof. Herath, in his response to The Island query, referred to this particular case when he mentioned some politicians being granted massive loans.
Prof. Bandara is on record as having said that the BPF matter would be referred to the Commission to Investigate Allegations of Bribery or Corruption (CIABOC).
According to a Central Bank statement dated Oct 27, 2023, the troubled finance company had been stopped from operating in terms of Section 37 of the Finance Business Act No 42 of 2011. The Director, Resolution and Enforcement Department has assured depositors of BPF that all depositors would be compensated in line with the provisions of the Sri Lanka Deposit Insurance and Liquidity Support Scheme (SLDILSS) Regulation No 02 of 2021.
News
Namal remanded until Sept. 18 over Airbus deal investigation
Sri Lanka Podujana Peramuna (SLPP) National Organiser and Parliamentarian Namal Rajapaksa was yesterday remanded until September 18 by the Colombo Chief Magistrate’s Court following his arrest by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) in connection with an investigation into the controversial SriLankan Airlines Airbus aircraft transaction.
Rajapaksa appeared before the CIABOC at around 9.15 am yesterday to record a statement after being summoned over the transaction. He was taken into custody following several hours of questioning and subsequently produced before the Colombo Chief Magistrate.
The investigation centres on allegations surrounding the acquisition of six Airbus A330 and eight A350 aircraft by SriLankan Airlines in 2013, in connection with an alleged USD 2 million bribe.
Former SriLankan Airlines Chief Executive Officer Kapila Chandrasena and his wife, Priyanka Niyomali Wijenayake, had previously been named in connection with the alleged bribery.
Chandrasena was arrested on March 12 as part of an investigation launched by the CIABOC under the Anti-Corruption Act and was subsequently released on bail. He was later found dead on May 8 while on bail, with police suspecting that his death was a suicide.
Open warrants have been issued for the arrest of Wijenayake, who is named as the second suspect, and Shamindra Rajapaksa, named as the third suspect, in the case pending before the Fort Magistrate’s Court in connection with the Airbus transaction.
The investigation has also received assistance from Airbus, with a delegation from the company’s parent group in France visiting Sri Lanka during the first week of August. The delegation provided statements and other assistance to the CIABOC as part of the ongoing inquiry.
Rajapaksa’s arrest and remand yesterday mark a further development in the widening investigation into the controversial aircraft deal.
News
Dengue cases surpass 96,000 this year
The number of dengue cases reported in Sri Lanka this year has risen to 96,040, with 72 deaths recorded so far, according to the National Dengue Control Unit.
The Unit said 10,155 cases were reported in August alone, highlighting the continuing spread of the disease across several parts of the country.
The Western Province has recorded the highest number of cases at 50,760, followed by the Southern Province with 13,931, the Central Province with 8,788 and the Sabaragamuwa Province with 7,910.
At district level, Gampaha has reported the highest number of cases at 20,444, followed by Colombo with 19,008.
Kandy has recorded 7,043 cases, while Kalutara and Matara have reported 6,181 and 6,154 cases,a respectively.
The National Dengue Control Unit said 50 Medical Officer of Health (MOH) areas across the country have been identified as high-risk areas for dengue.
Health authorities have continued to urge the public to take measures to prevent mosquito breeding, particularly in areas where a high incidence of dengue has been reported.
News
PM Harini, Bhutan King explore closer ties
Prime Minister Dr. Harini Amarasuriya met King Jigme Khesar Namgyel Wangchuck of Bhutan at the historic Tashichhodzong, in Thimphu, last Wednesday (02), with discussions focusing on Bhutan’s development priorities and ways to strengthen bilateral relations with Sri Lanka.
The meeting took place during Dr. Amarasuriya’s official visit to Bhutan.
The Bhutanese King expressed interest in drawing on Sri Lanka’s experience and expertise in areas relevant to the country’s long-term development plans, according to a statement issued, following the meeting.
The two sides also discussed opportunities to expand investment cooperation, including a proposal to establish an investment zone in Bhutan.
The discussions further covered demographic challenges facing Bhutan, particularly the increasing migration of young people and its potential impact on the country’s future workforce and population.
Both sides underscored the importance of sustainable development and creating greater opportunities for young people to contribute to national economic growth and development.
The meeting formed part of efforts to broaden cooperation between Sri Lanka and Bhutan beyond traditional areas of bilateral engagement, with investment, development expertise and demographic concerns emerging as areas of common interest.
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