JO goes to CID against Kabir’s $ 98 m SriLankan deal

Joint Opposition MP Kanaka Herath addressing the media yesterday in Colombo - Pic by Ruwan Walpola

• Claims made Rs. 150 billion loss to Govt. in renegotiating Airbus deal, alleges $ 10 m commission  

By Chamodi Gunawardana

The Joint Opposition yesterday filed its sixth complaint against a top member of the Government at the Criminal Investigation Department (CID) and Bribery Commission, alleging that Public Enterprise Development Minister Kabir Hashim incurred a Rs. 150 billion loss while renegotiating the cancellation of Airbus planes for SriLankan Airlines. 

The complainant, JO MP Kanaka Herath, told reporters Minister Hashim had been involved in cancelling the deal without Cabinet approval or seeking the advice of the Attorney General, thus raising questions of transparency and due process. 

Previous allegations of corruption have been levelled against Prime Minister Ranil Wickremesinghe, Development Strategies and International Trade Minister Malik Samarawickrama, Finance Minister Ravi Karunanayake, former Central Bank Governor Arjuna Mahendran and Foreign Employment Minister Thalatha Athukorale. 

According to Herath, the previous Government ordered 21 planes for SriLankan Airlines through a foreign leasing company called Aer Cap. However, SriLankan Airlines has noted that it only ordered eight A350s, six Airbus A330-300s and four Airbus 321 NEOs in a deal that was estimated to cost $ 2.6 billion. 

The airline has already taken delivery of all the A330s and is likely to also keep the Airbus 321 NEOs. Four of the eight A350s that were to be delivered in 2019 were provisionally cancelled by the current Government. Of the remaining planes, one has been delivered and the Government negotiated a payment of $ 98 m to Aer Cap for the cancellation of three A350 planes.  

Herath claimed that instead of negotiating with another airline to sell the unwanted planes, the national carrier had heeded an alleged order from Prime Ministerial Adviser Charitha Ratwatte and paid the penalty.  

“The first payment of the compensation has already been made by the Government without the approval of the Cabinet,” Herath claimed. 

Accordingly, the JO lodged the complaint against Minister Hashim, Prime Ministerial Advisor Ratwatte, SriLankan Airlines Chairman Ajith Dias, Chief Executive Officer Capt. Suren Ratwatte and the entire Board of Directors at the CID and Bribery Commission demanding an immediate investigation.  

Earlier the Joint Opposition had announced that it would lodge cases against the “Top Ten” most corrupt members of the current administration. Despite little progress being made with the previous cases, the JO has insisted that it would carry forward its efforts. All the officials the JO has lodged complaints against have denied any wrongdoing.