Sri Lanka's Entrust Securities fraud ignored by Rajapaksa regime while sons were funded: Kabir
Jan 25, 2017 11:44 AM GMT+0530 | 2 Comment(s)
ECONOMYNEXT - Sri Lanka's ousted Rajapaksa regime stood idle while 12 billion rupees was robbed from bond investors at Entrust Securities, despite central bank examiners finding fraud, while the firm funded sons of the former President Mahinda Rajapaksa, a senior minister said.
State Enterprises Minister Kabir Hashim said 12 billion rupees from pension funds, co-operative societies and other investors were robbed who had bought bonds from the primary dealer.
This included at least 2.5 billion rupees from the Employees Provident Fund of Ceylon Electricity Board, the central bank's own provident fund and at least 600 million rupees from Mutli-Purpose Co-operative Societies, Hashim told parliament.
"Then finance minister (Mahinda Rajapaksa) and the Central Bank Governor did not take any action," he said.
"This was despite irregularities being uncovered by a central bank on-site report."
He said Entrust was controlled b by Isira Dassanayake who had 66 percent of the stock, and Chanuka Ratwatte who had 21 percent of the shares.
Hashim said Entrust had funded the Carlton Rugby Tournament connected to ex-President Rajapaksa's son Namal with millions of rupees.
It owned the Western Warriors club.
"The Captain of his rugger club was Yoshitha Rajapaksa (another son of ex-President Rajapaksa). He was bought from an auction paying 11 million rupees.
"From whose money is Entrust paying this 11 billion rupees?" Hashim said.
Hashim said at the time no politician including the Janatha Vimukthi Peramuna raised concern because the Rajapaksa regime was a dictatorship where there was no rule of law.
But under the current administration there was freedom to speak.
(COLOMBO, Jan 25, 2016)