UL awarded CCO post without due process: Official

By Maleesha Sulthanagoda 

SriLankan Airlines awarded the Chief Commercial Officer (CCO) post to Siva Ramachandran in 2015, without approval from the airline Board of Directors, the Presidential Commission of Inquiry (PCoI) into alleged frauds and misconduct in SriLankan Airlines, SriLankan Catering, and Mihin Lanka heard yesterday. 

SriLankan Airlines Company Secretary Dalrene Thirukumar, presenting evidence on appointments of officials into Grade 13 posts of the national carrier, told the PCoI that Siva Ramachandran was appointed as the CCO of the airline on 16 November 2015. However, the Board decision stating not to appoint him to the position, on the grounds that he was above the 60 year age limit, was given on 26 January 2016. 

“The letter of appointment presented to CCO Ramachandran on 16 November 2015, was signed off by the former Chairman Ajith Dias, and was accepted by Ramachandran on 20 November 2015. The board Meeting on appointing the CCO was held on the November 2015, where it was called for a vote. The vote held at the Board Meeting in November did not give definite results, as Chanaka de Silva did not vote. The vote held at the subsequent Board Meeting on 26 January 2016 ruled in favour of not appointing Siva Ramachandran as the CCO, as he was past the maximum age limit of 60 years of the carrier at the time,” she said. 

She noted that Ramachandran had also applied for the position of Chief Executive Officer (CEO) of the airlines, after ads for the job had been published on several newspapers on 13 May 2015 and 17 May 2015, where there were 59 applications. Ramachandran’s application was one of the 14 applications that were shortlisted. After interviews through Skype were conducted, he was deemed fit for the role of CCO, rather than the role of CEO. 

“In a board minute during the conducting of interviews for the position of CEO, it states that he was deemed more suited for the role of CCO, rather than CEO. There is also a correspondence sent from Siva Ramachandran to Chairman Ajith Dias on 28 June 2015, stating that his intention was to join the airline as the CEO, as it was a step-up in his career. He also mentions in the email that he is more suited for the role of CCO, as his expertise is in that field,” she added. 

When the Commission queried from Thirukumar whether Ramachandran continued to be employed although there was no board decision, she said he was. 

Company Secretary Thirukumar also presented evidence before the PCoI on the appointment of Suren Ratwatte as the company CEO in 2015, and extensions given to him after his initial contract period.

She said that Ratwatte was appointed the CEO of SriLankan Airlines for a probation period of six months, with a taxable income of Rs. 3 million, and a bonus of Rs. 10 million if all company targets were achieved. 

“After Suren Ratwatte’s initial term as CEO ended on 15 April 2015, he was given an extension of six months to his probation period through a Board Meeting. At the time of the CEO’s probation extension, the Articles of Association of the airline states that it should be awarded after a performance appraisal. CEO Ratwatte’s personal file doesn’t include any performance appraisals leading up to this. Suren Ratwatte was finally awarded confirmation as CEO of SriLankan Airlines on 28 April 2016,” she continued. 

The Commission stated the evidence provided by Thirukumar points to Ratwatte’s confirmation as CEO getting fast tracked due to influence from the Prime Minister and Minister Kabir Hashim. 

“The Chairman informed the Board of Directors at a Board Meeting that the Prime Minister and Minister Kabir Hashim had requested that Suren Ratwatte to be confirmed as the CEO in the earliest, as the Government was the major shareholder of the airline,” she elaborated. 

It was also highlighted to the PCoI by the documents provided by Thirukumar that no performance appraisals were done by the Board before or after confirming Suren Ratwatte as the CEO of the national carrier.

Suren Ratwatte is currently the CEO of SriLankan Airlines, but he is set to leave office on 31 July 2018. He will be resigning from the position as premature retirement. Thirukumar presented an email from Chairman Ranjith Fernando to Ratwatte, stating that the Board of Directors had agreed to compensate him by paying the salary for three months, and two months’ salary as appreciation for falling in line with the new agendas of the newly appointed Board. This would be a Rs. 15 million golden handshake. His family would also be given free air tickets to Australia as part of the severance package. 

The evidence provided by the Company Secretary also contained documents relating to former SriLankan CEO Kapila Chandrasena failing to inform the airline about his positions in Mobitel Ltd during his tenure at the carrier.

Kapila Chandrasena was appointed as CEO of the airline in 2011, and held office until 2015. The documents submitted by Thirukumar stated that Chandrasena served as the acting CEO, and as a Consultant for Mobitel Ltd, through 2013 and 2014. According to company guidelines, the CEO should notify the airline if they are holding office as CEO in another company, but Kapila Chandrasena had failed to mention it.