Case on alleged Rs. 260 m misappropriation at LECO referred to AG

By Lakmal Sooriyagoda

The Criminal Investigations Department yesterday informed Court that it has sought the Attorney General’s advice regarding the case on alleged misappropriation of Rs. 260 million at Lanka Electricity Company (Private) Limited (LECO), and his advice over the matter is yet to be received.  

When the LECO case came up before Magistrate Kanishka Wijeratne, the CID informed Court that extracts of investigations regarding the case had already been sent to the Attorney General. The CID had earlier informed Court that future legal action regarding other persons who involved in the incident would be taken after receiving the AG’s advice.

In this case, the CID had told the Colombo Fort Magistrate that Secretary to the Ministry of Power and Energy M.M.C. Ferdinando had lodged a written complaint with the CID regarding an alleged misappropriation valued at Rs. 260 million on 24 November 2010.

In the complaint he had alleged that several properties purchased by LECO had incurred losses to the tune of Rs. 260 million. According to the complaint, the former chairman of the LECO and its administrative officials were alleged to have defrauded monies belonging to Lanka Electricity Company (Private) Limited.

The prosecutors had told court that they had already recorded statements from several witnesses in this regard.   Furthermore, several employees of LECO had also a complained to the Commission to Investigate Allegations of Bribery or Corruption about the alleged misappropriation of funds.

However, a businessman who was allegedly involving in LECO business transactions was produced in Court and subsequently released on bail at a previous magisterial inquiry. The CID had charged that the businessman had allegedly misappropriated Rs. 191 million belonging to LECO and transacted business with LECO in purchasing houses and properties on behalf of them.

Lanka Electricity Company (Private) Limited (LECO) is a private limited liability company registered under the Companies Act No. 17 of Sri Lanka.

Further magisterial inquiry into the matter was postponed for 22 May next year.