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Monday, 6 April 2015 00:00 - - {{hitsCtrl.values.hits}}
Prime Minister Ranil Wickremesinghe receives the report on SriLankan Airlines from the Board of Inquiry Chairman J.C. Weliamuna as Minister of Ports, Shipping and Aviation Arjuna Ranatunga looks on
A Board of Inquiry has found shocking details of corruption running into billions of dollars, manipulations of service contracting, recruitment of unqualified staff and major security breaches at SriLankan Airlines under the former Government, the Prime Minister’s office said in a statement.
The panel, headed by anti-corruption advocate and senior lawyer J. C. Weliamuna, found instances of gross abuse of power by former Chairman Nishantha Wickramasinghe whose penchant for young air hostesses cost the debt-ridden airline even more problems.
The former Government of President Mahinda Rajapaksa made management changes to carry out a re-fleeting of the airline with brand-new aircraft costing $ 2.3 billion despite the availability of more cost-effective alternatives, the PM’s statement said.
The panel’s report, which was handed to the Prime Minister on Thursday, recommends criminal investigations into the entire re-fleeting process and has noted instances where former Chairman Wickramasinghe, the brother-in-law of Mahinda Rajapaksa, should be prosecuted.
The BOI also recommended criminal prosecutions of SriLankan Airlines CEO Kapila Chandrasena as well as Wickramasinghe, among other senior management staff.
Full Text of the Prime Minister’s statement:
A Board of Inquiry has found shocking details of corruption running into billions of dollars, manipulations of service contracting, recruitment of unqualified staff and major security breaches at Sri Lankan airlines under the former government.
The panel headed by anti-corruption ad
vocate and senior lawyer J. C. Weliamuna found instances of gross abuse of power by former chairman Nishantha Wickramasinghe whose penchant for young air hostesses cost the debt-ridden airline even more problems.
The former government of President Mahinda Rajapakse made management changes to carry out a re-fleeting of the airline with brand-new aircraft costing $2.3 billion despite the availability of more cost effective alternatives.
The Weliamunareport recommends criminal investigations into the entire re-fleeting process and have noted instances where former chairmen Wickramasinghe, a brother-in-law of Mahinda Rajapakse, should be prosecuted.
The Board of Inquiry (BOI) found evidence of Wickramasinghe and SriLankan CEO Kapila Chandrasena falsifying documents to lease a luxury sports utility vehicle for the use of Wickramasinghe. This was in addition to a luxury Mercedes Benz vehicle and a Prado super luxury vehicle.
The purchase of vehicles pales into insignificance when compared with irregularities in the re-fleeting exercise and a fiasco involving the launch of an air taxi service which was eventually abandoned causing millions of dollars in losses to SriLankan Airlines.
The management of Sri Lankan knowingly ignored conflict of interest in companies and individuals hired to advise the national carrier on procurements leading to a reasonable assumption that they were all corrupt deals.
A cabin crewmember had been released from the airline to work at the Presidential Secretariat following a request from the then Presidential Secretary Lalith Weeratunga, but she was actually released for Namal Rajapaksa’s political work.
She had been paid by the airline, including allowances for cabin work although there is no explanation of what services she provided except that she had been overpaid by more than Rs. 4.2 million.
The BOI recommends that SriLankan Airlines take action to recover the overpaid amounts from the staff member who has been identified in the report and direct prosecutions of those who authorised misappropriation of public finance.
The BOI also found that several applicants who repeatedly failed entrance tests were eventually recruited on verbal requests from the management.
The former Chairman had also created a post of ‘SLA Brand Ambassador’ and appointed his known companion, an airhostess, even though no such designation was known to the national carrier. The couple had travelled abroad on tickets bought by SriLankan from other airlines too.
“In our investigation, we can conclusively hold that former the Chairman’s association with cabin crewmembers exposed SriLankan Airlines to abuse of power, causing reputational risks as well as financial losses.
“The BOI can also hold that there was no corporate culture in the board or the top management to raise such issues when a senior officer or the Chairman was involved in such behavioral issues adversely affecting the company,” the BOI asserted.
The BOI has found CEO Chandrasena unsuitable for the job and was surprised to discover that he was paid a minimum monthly salary of Rs. 1.5 million on top of other perks and he had also enjoyed salaries simultaneously from his other appointments.
There had been a time when he drew a salary as Mobitel CEO as well as Mihin Lanka CEO. The BOI recommends the criminal prosecutions of Chandrasena as well as Wickramasinghe, among other senior management staff.
The BOI also found that a London station manager who tried to stop the illegal practice of sending motor spare parts for the use of the former president’s son Yoshitha had been suddenly transferred out on the direction of former President Rajapaksa.
The airline had also tried to hush up two serious flying mishaps involving the Chief Pilot Druvi Perera and Captain U.A.V. Pathirana.
Two staff members involved in alleged human smuggling had gotten off lightly, raising serious concerns over whether few employees continue to support a criminal human smuggling ring.
The BOI also raised questions about the suitability of appointing a retired army major general, P. Chandrawansa, who did not have aviation security experience on a salary of Rs. 450,000, without following recruitment procedure and accused him of engaging in political activities while in the employment of SriLankan Airlines.
The BOI recommends the termination of services, or immediate disciplinary action for breaching company rules. The Security Department was among the most politicised.
The BOI praised two senior pilots - Patrick Fernando and Ranga Amadoru - who had resigned in protest against attempts to lower pass marks of recruit pilots.
“Their resignation effectively prevented the selection of unsuitable candidates in the 2013 Cadet Pilot intake. In view of their bold stand taken to protect professional standards, the BOI recommends that they be commended.”
The report also lists major fraud in the award of tenders and singles out a duty-free deal and the sale of wine as one of the blatantly corrupt deals of SriLankan requiring a criminal investigation. BOI points out the corrupt manner in which General Sales Agents were appointed in many countries on behalf of the airlines and manipulations made.
The BOI also recommended criminal investigations into the involvement of UdayangaWeeratunga former Ambassador to Russia and Dilan Ariyawansa in several GSA appointments.
Finally the BOI has concluded that the management culture was a major contributory factor for abuse of power and external interference into the business of SriLankan Airlines.
