SriLankan denies alleged malpractice in contracting Phoenix Rising Ventures

By Maleesha Sulthanagoda 

SriLankan Airlines yesterday sought to set the record straight on its activities with Phoenix Rising Ventures Ltd. and its inflight duty free services issue. 

SriLankan Airlines Inflight Services, Administrations and Duty Free Manager Rashmore Ferdinands appeared before the Presidential Commission of Inquiry (PCoI) into fraud and corruption to clarify details on the contract that was signed on 25 January 2012 with Phoenix Rising Ventures that was allegedly awarded ignoring tender procedure. 

He stated that the contract signed on the 25 January 2012 only appointed Phoenix Rising Ventures as the supplier of cosmetics and fragrances for SriLankan Airlines although there was evidence found of Phoenix Ventures supplying other items such as whisky. 

“We didn’t enter into any contracts with Phoenix before this regarding the supply of duty free whisky. It was only for fragrances and cosmetics. We later found an invoice containing items that were supposed to be shipped to the SriLankan Airlines bulk stores in Katunayake,” he added. 

When asked about the dates of the surfaced invoice in accordance with the date of the signing of the contract, it was revealed that the whisky products were ordered by Phoenix Rising Ventures on 10 November 2011, which was before the board paper was submitted to make Phoenix Ventures a contractor, on 14 November 2011. 

When asked about the re-export of large shipments to Hong Kong by Phoenix Rising Ventures through mid-March of 2012, Ferdinands noted that the re-exports were done with the approval of the Board of Investment (BOI) and it was under BOI concessions. 

“An email sent by a senior official of Phoenix Rising Ventures notes that the goods shipped to Hong Kong in mid-March were excessive quantities of items that were D-listed. Items are D-listed when they are not incurring sales and that they were entirely fragrances and cosmetics,” he added. But according to Ferdinands, the items re-exported also consisted of non D-listed items which was revealed through investigations.