The Finance Manager of Sri Lankan Catering Nalaka Sanjeewa said equipment was bought at a cost of Rs.56 million for a company named M.R.I.A.Kitchen which was to be set up at Wattala in 2012 but at least half of these items had not been utilized and were still in storage.
This was disclosed before the Presidential Commission investigating alleged fraud, corruption and misappropriation of state funds and property in SriLankan Airlines, SriLankan Catering Services and Mihin Lanka during its sittings yesterday.
He said the construction of M.R.I.A.Kitchen had started but was later abandoned over profitability issues.
He added that some of the equipment bought for M.R.I.A.Kitchen had been given to the Sri Lankan Catering Company.
Sanjeewa said a letter had been issued by the Director Board seeking a loan of US $ 3 million to set up M.R.I.A.Kitchen but added he did not know whether this had been finally approved by the Director Board.
He said however a loan amounting to US $847,000 had been obtained from the Commercial Bank for the project.