COIs to probe political victimisation by CIABOC, FCID, SIU and ETI sale

• President appoints two three-member commissions under Commissions of Inquiry Act
• One to probe alleged wrongdoing, irregularities and malpractice in connection with ETI Finance (ETI)
• Conduct of affairs of the CBSL in respect of ETI also to be probed
• Second COI to inquire into political victimisation against public officials
• Inquiry to cover period between 8 January 2015 and 16 November 2019
• Conduct of CIABOC, FCID and SIU during this period under special scrutiny

By Chandani Kirinde

President Gotabaya Rajapaksa appointed two Commissions of Inquiry (COI) last Friday, one to inquire into alleged wrongdoing, irregularities and malpractice in connection with ETI Finance Ltd. (ETI) and the role of the Central Bank of Sri Lanka (CBSL) in this respect and a second COI to inquire into alleged instances of political victimisation against public officials by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC), Financial Investigations Divisions (FCID) or the Special Investigations Unit (SIU) of the Police.

The COI looking into the ETI matter is headed by retired Supreme Court Judge K.T. Chithrasiri while its members are retired Solicitor General Suhada Gamalath and Esquire Senior Banker D.M. Gunasekara.

This COI will probe alleged wrongdoing, irregularities and malpractice in connection with ETI, a finance company which was regulated by the CBSL and which faced serious financial problems, leading to the CBSL’s intervention and a sale of the assets of ETI to settle its depositors.

These assets included Swarnamahal Financial Services PLC, EAP Broadcasting Company Ltd. with its subsidiaries; EAP Films and Theatres Ltd. (and its subsidiaries); Hotel Sapphire Ltd., Swarnamahal Jewellers Ltd. and other immoveable assets owned by ETI.

The COI will look into the sale of the above establishments to a consortium consisting of Blue Summit Capital, Management Ltd. and Ben Holdings Ltd. in violation of restrictions under the laws of Sri Lanka on ownership of media institutions by foreigners and the sale of the assets of ETI to the said party in violation of the laws of Sri Lanka, prohibiting the purchase of immoveable properties by foreigners.

The Commissioner will investigate, inquire into and report on whether there has been any violation of the law in the administration, management, functions and conduct of affairs of the CBSL in respect of ETI, whether any contractual obligations were entered into or carried out, fraudulently or dishonestly or negligently, resulting in damage or detriment to the Government and/or public and if there has been misuse or abuse of power, influence, interference, fraud, malpractice, nepotism or any act or omission connected with corrupt activity in relation to this matter.

The second COI which will look into alleged instances of political victimisation will be headed by retired Supreme Court Judge Upaly Abeyrathne while its other members are retired Court of Appeal Judge Daya Chandrasiri Jayathilaka and retired Police Inspector-General Chandra Fernando.

This COI will inquire into and obtain information in respect of the alleged political victimisation during the period commencing 8 January 2015 and ending 16 November 2019.

The inquiry will centre on any malpractice or irregularity, or non-compliance with or disregard of the proper prudence, norms, guidelines, procedures and best practices applicable in relation to the administration of the CIABOC, FCID and the SIU, if the Police had been influenced or obstructed or prevented in any manner, resulting in loss, damage, injury or detriment, either direct or imputed to any person or persons and if the Police have acted under undue influence by third parties.