Financial Fraud Investigation Unit targets MiG-27 deal; Ex-Air Force Chief questioned
Saturday, 28 March 2015 01:36
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The Financial Fraud Investigation Division has begun investigation into the controversial MiG-27 procurement deal carried out by the Defence Ministry in 2007.
The Financial Fraud Investigation Unit informed the Colombo Fort Magistrate on Thursday that it had commenced an investigation following a complaint lodged by senior journalist Iqbal Athas who wrote a series of articles in this regard in 2007.
The Colombo Fort Magistrate yesterday allowed the Police Financial Fraud Investigations Unit to check the Letters of Credit (LCs) pertaining to this deal from the Import Bill section of People’s Bank.
On 26 July 2006, the Sri Lanka Air Force (SLAF), on behalf of the Government of Sri Lanka (GOSL) signed an agreement with Ukrainmash, a Government subsidiary of the Republic of Ukraine for the supply of four MiG-27 aircraft at a cost of $ 2.5 million each as well as for the overhauling of four existing SLAF MiG-27 aircraft at a cost of $ 4.6 million.
In 2007 it had been alleged that the deal was not the best option and not a Government-to-Government transaction as the Government claimed. The payments had allegedly been made to a third party company based in London called Bellimissa Holdings
In this regard, former Chief of Defence Staff and former Air Force Commander Air Chief Marshal Roshan Goonatileke has been questioned by the Police over the controversial MiG aircraft deal.
Goonatileke was questioned by the special unit of the police investigating financial fraud which was established by the Government recently.
Goonatileke was the Air Force Commander when the MiG-27 fighter jets were purchased from Ukraine.
