Image from Infolanka |
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 advocate and senior
lawyer J. C. Weliamuna found instances of gross abuse of power by former
chairman NishanthaWickramasinghe 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 Weliamuna report 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 Sri Lankan 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 to 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 Sri Lankan airlines.
The management of Sri Lankan staff 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 crew member 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 over paid more than 4.2 million rupees.
The BOI recommends that the Sri Lankan 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 authorized 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 Sri Lankan from other airlines too.
“In our investigation, we can conclusively hold that former
Chairman’s association with cabin crew members exposed Sri Lankan Airlines to
abuse of power, causing reputational risks as well as financial losses.
“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 has found CEO Chandrasena unsuitable for the job and
was surprised to discover that he was paid a minimum monthly salary of 1.5
million rupees 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 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 former
president’s son Yoshitha had been suddenly transferred out on the direction of
the former President Rajapaske.
The airline had also tried to hush up two serious flying
mishaps involving the chief pilot DruviPerera and Captain U. A. V. Pathirana.
Two staff members involved in alleged human smuggling had
got off lightly raising serious concerns 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 450,000 rupees, without following recruitment procedure and accused
him of engaging in political activities while in the employment of Sri Lankan
airlines.
The BOI recommends the termination of services, or immediate
disciplinary action for breaching company rules. Security Department was among
the most politicized.
The BOI praised two senior pilots -- Patrick Fernando and
RangaAmadoru -- 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, 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 Sri Lankan 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. BOI also recommends
criminal investigations on the involvement of UdayangaWeeratunga former
Ambassador to Russia and DilanAriyawansa in several GSA appointments.
Finally the BOI has concluded that the management culture
was a major contributory factor for abuseof power and external interference
into the business of Sri Lankan airlines.
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