The Attorney General yesterday filed indictments against the former President’s Chief of Staff Gamini Sedara Senarath and three others in the first special corruption High Court established to try high-profile financial fraud and corruption cases.
This is for illegally investing Rs. 500 million of Public Funds at Helanco Hotels and Spa. The funds had been originally given by Litro Gas Company to Canwill Holdings Ltd.
Gamini Senarath, former Sri Lanka Insurance Corporation Managing Director Piyadasa Kudabalage, former Samurdhi Commissioner Neil Bandara Hapuwinna and Lasantha Bandara had been charged regarding the offences under the Public Property Act, Penal Code and Prevention of Money Laundering Act.
The investigation reports pertaining to these offences have been forwarded to Chief Justice Priyasath Dep for his approval prior to the Attorney General’s decision to file indictments against the accused. According to a B report filed before the Colombo Fort Magistrate’s Court regarding this incident, the four accused have been accused of misusing Government funds by illegally investing Rs.4 billion from the Rs.18.5 billion approved by the Cabinet in 2012.
The prosecution maintained that Canwill Holdings Ltd is a state-owned public enterprise set up during the former regime with Rs. 18.5 billion in equity secured from its major shareholders, Sri Lanka Insurance Corporation, which invested Rs. 8.5 billion and Litro Gas and the Employees Provident Fund (EPF) with Rs. 5 billion each.
The funds in question had been the allocation for the Kollupitiya Grand Hyatt Regency Hotel, to be constructed by Canwill Holdings Ltd, a company affiliated to the Sri Lanka Insurance Corporation, but had instead been invested in the Hambantota Hyatt Regency Hotel project.
The Attorney General has listed 92 documents as production items in the case and a further 63 individuals have been named as witnesses.