JICA scandal: Special committee finds BASL President failed to act transparently

• Says BASL Chief Kaushalya Nawaratna PC has violated trust placed in him
• Finds BASL Deputy President Nalinda Indatissa PC has failed to exercise meaningful oversight over process
• Recommends establishment of financial manual to define clear procedures relating to financial management within BASL
• Says BASL members should not receive financial or other pecuniary benefits from BASL matters unless disclosed and approved by Executive Committee and Bar Council

The five-member Special Committee appointed by the Bar Council to investigate the alleged misappropriation of funds designated for an anti-corruption initiative funded by the Japan International Cooperation Agency (JICA) has determined that Bar Association of Sri Lanka (BASL) President Kaushalya Nawaratna PC failed to act transparently regarding the contract between the BASL and JICA, thus violating the trust placed in him as the BASL President.

The Special Committee conducted eight sittings starting on 29 May before reaching their final findings.

Chaired by Faisz Musthapha PC and comprising Dr.  K. Kanag-Isvaran PC, Rienzie Arsekuleratne PC, Ikram Mohamed PC, and Geoffrey Alagaratnam PC, the committee found that the evidence presented revealed a lack of transparency in the contractual process and the selection of resource persons and researchers for payment, which was almost entirely handled by Nawaratna.

The committee concluded that, given the circumstances of the contract, the obligations imposed on the BASL, and the substantial payments made to resource persons chosen by Nawaratna, it was his duty—being in a position of trust representing the membership—to ensure transparency, if not during the contract’s negotiation, then at least immediately afterwards.

Additionally, the committee found that BASL Deputy President Nalinda Indatissa PC had failed to exercise meaningful oversight over the process. However, the Special Committee found no wrongdoing by Shavindra Fernando PC and two others including Indatissa’s niece who were paid as resource persons under the project.

The committee unanimously recommended the establishment of a financial manual to define clear procedures for documentation, financial management, and payments within the BASL. They identified deficiencies in procedures and reporting that allowed the highlighted transactions to occur. 

This recommendation was made with the understanding that BASL office bearers, holding honorary positions of trust, are expected to maintain the highest standards of transparency and integrity, particularly concerning financial matters.

Furthermore, the committee agreed that BASL members should not receive financial or other pecuniary benefits from BASL matters unless such benefits are specifically disclosed to and approved by the Executive Committee and the Bar Council. This requirement also applies to family members and individuals closely associated with BASL members.

The controversy began in May when a group of legal professionals, including ten Presidents’ Counsel and over 80 attorneys-at-law, demanded a thorough investigation into the JICA project scandal. The group accused five BASL members, including President Kaushalya Nawaratna PC, of misappropriating funds allocated for the anti-corruption initiative funded by JICA. JICA had reportedly allocated Rs. 21 million for the project, with allegations suggesting that at least Rs. 19 million was misappropriated by the five accused.