The other members of the Commission, Gazetted on Friday, will be Gamini Rohan Amerasekera (Judge of the Court of Appeal), Piyasena Ranasinghe (retired Judge of the High Court), Don Anthony Harold (retired Deputy Auditor General) and Jayaseeli Kapugama Geeganage, (Director General of the Sri Lanka Accounting and Auditing Standards Monitoring Board).
The probe will cover nine different aspects. They are:
• The management, administration and conduct of affairs of SriLankan Airlines Limited, SriLankan Catering Limited and Mihin Lanka (Private) Limited.
• Whether there has been any malpractice, irregularity or non-compliance with or disregard of the proper economic and financial prudence, norms, guidelines, procedures and best practices applicable in relation to such management, administration and conduct of affairs resulting in loss, damage or detriment, either direct or imputed, to the Government, any statutory body or any other entity including SriLankan Airlines, SriLankan Catering, Mihin Lanka and the nature and magnitude of such losses;
• Whether any contractual obligations related to SriLankan Airlines, SriLankan Catering, and Mihin Lanka relating to the said matter referred to in the said schedule hereto have been entered into or carried out, fraudulently, recklessly, negligently, imprudently or irresponsibly, without due professional care or due diligence, considering accepted norms, guidelines and best practices resulting in loss, damage or detriment, either direct or imputed, to the Government, any statutory body or any other entity including SriLankan Airlines, SriLankan Catering, Mihin Lanka and the nature and magnitude of such losses;
• Whether proper economic and financial prudence, norms, guidelines, procedures, best practices and adequate safeguards have been adopted to ensure that the matter referred to resulted in obtaining optimum benefit, to the Government, any statutory body or any other entity including SriLankan Airlines, SriLankan Catering, Mihin Lanka and the nature and magnitude of such losses.
• The person or persons responsible for the act, omission or conduct, which has resulted in such loss, damage or detriment, either direct or imputed, to the Government, any statutory body or any other entity including SriLankan Airlines, SriLankan Catering, Mihin Lanka in respect of the said matter;
• Whether any inquiry or probe into the aforesaid matter referred to in the said schedule hereto had been obstructed or prevented in any manner, resulting in loss, damage or detriment, either direct or imputed, to the Government, any statutory body or any other entity including SriLankan Airlines, SriLankan Catering and Mihin Lanka, and, if so, the person or persons responsible for such obstruction;
• The procedures and guidelines which should be adopted in the future to ensure that such matter referred to in the said schedule hereto are carried out with transparency and with proper professional care and accountability with a view to secure optimum benefit to the Government, any statutory body or any other entity including SriLankan Airlines, SriLankan Catering and Mihin Lanka;
• Whether there has been misuse or abuse of power, influence, interference, fraud, corruption and nepotism or any other action or omission in relation to the said matter referred to in the said schedule hereto;
• Make recommendations with reference to the said matter referred to that have been inquired or investigated into under the terms of this warrant.
The Gazette notification signed by Presidential Secretary Austin Fernando said that the Commission’s investigation is in addition to and without prejudice to any measures that have been taken or which may be taken by relevant authorities including the Police, the Commission to Investigate Allegations of Bribery or Corruption and the Attorney General.
Ten vital issues in warrant
The warrant issued to the Commission seeks a probe into alleged irregularities in:
(a) Infusion of funds through share capital and borrowings including funding by the General Treasury, Bank of Ceylon, People’s Bank and any other financial institution or entity, and investment of such funds.
(b) Establishment, operations, and winding up of Mihin Lanka.
(c) Termination of agreements between Sri Lankan Airlines and Emirates, the International Airline of the United Arab Emirates, including reasons and ramifications thereof.
(d) Entering into, extension, and cancellation of agreements pertaining to the purchase, sale, lease, sale and leaseback, transfer, exchange, release, and disposal of aircraft and any other assets.
(e) Procurement of goods and services and re-fleeting of aircraft, including purchase, sale, lease, sale and leaseback, transfer, exchange, release, and disposal of aircraft and any other assets, value of which exceeds Rs. 50 million.
(f) Hiring and appointment of agents, brokers, consultants, firms and any other individual or entity for the provision of goods, services or any other task.
(g) Opening, maintenance and discontinuation of route network and offices in other countries.
(h) Transactions between SriLankan Airlines, SriLankan Catering and Mihin Lanka.
(i) Human resource management including recruitment, appointment, remuneration, promotion, transfer, retrenchment, and retirement of personnel, appointment of Boards of Directors, Chief Executive Officers, Chairmen, and other senior management.
(j) Financial reporting, compliance with applicable accounting and auditing standards, and financial and operational performance and condition.
