Presidential Commission investigating SriLankan and Mihin starts hearings

The Presidential Commission of Inquiry investigating the irregularities at the Sri Lankan Airlines and Mihin Lanka airlines kicked off its hearings yesterday (4 June) at the BMICH.

Giving evidence before the Presidential Commission of Inquiry (PCoI) on irregularities at SriLankan Airlines, SriLankan Catering and Mihin Lanka yesterday, the Department of the Registrar of Companies revealed that the issue of 10 million preference shares in SriLankan Catering Limited had not followed due process.

The shares, issued in 2010 with a nominal value of Rs. 100 each, had not been registered formally with the Department of the Registrar of Companies, Department of the Registrar of Companies Management Assistant Deeptha Gunawardena told the Commission, which commenced formal hearings yesterday.

According to the evidence given, the company had failed to prepare the documents required for the registration according to the standardised format introduced by the Companies Act, No. 07 of 2007.

Outlining the procedure, Gunawardana said that in the event where a company makes errors in such documents, his institution issues instructions on how it should be corrected. However, as per the documents maintained by the Registrar of Companies, he said that despite instructions being issued, no corrections have been made.

The company had been informed of the changes to be made in writing, he said.

As a result, the particular share issue had not been granted the formal approval of the Department, Gunawardana said before the PCoI, stating that no record exists in the Registrar of Companies on granting approval for the particular Preference Share issue.

The hearing will continue tomorrow, where the Registrar of Companies is expected to come before the Commission.