Action taken to address issues highlighted in Weliamuna report: SriLankan

• Says “comprehensive response” on actions taken on issues highlighted by the report submitted
• But fails to specify any action the board committee was said to have taken based on the report findings
• Forensic audit on the financial dealings highlighted in the report abandoned due to high cost by minister 

Hot on the heels President Maithripala Sirisena announcing his intention to appoint a committee to probe SriLankan Airlines and Mihin Air, the struggling national carrier, SriLnkan Airlines yesterday said contrary to the popular belief, the airline’s board of directors has taken all action possible to address the internal and disciplinary issues highlighted in the J.C. Weliamuna report. 

In 2015 February, the then Ports, Shipping & Aviation Minister Arjuna Ranatunga appointed Board of Inquiry headed by activist and attorney-at-law J.C. Weliamuna to inquire into the alleged gross abuse of power by the then board of directors and the top management and misappropriation of public funds, particularly with regards to the procurement and leasing of new aircraft. 

Issuing a statement, Prime Minister Ranil Wickremesinghe’s office on April 04, 2015 said the Board of Inquiry (BoI) has found shocking details of corruption running into billions of dollars, manipulations of service contracting, recruitment of unqualified staff and major security breaches at Sri Lankan airlines under former government.

The report of the BoI had also recommended criminal prosecution of the then Chairman, CEO and said the management culture at the airline was a major contributory factor for abuse of power and external interference into the business of SriLankan Airlines.

SriLankan Airlines in their statement yesterday said they prepared a “comprehensive response” on the actions taken by a three-member board committee in respect of the observations and recommendations made in the Weliamuna report under the instruction of Cabinet Sub Committee on Economic Affairs chaired by the Prime Minister.

However, the statement stopped short of specifying the said actions the board committee was said to have taken. There was also no mention of any disciplinary action taken against any airline official.

The airline said its “comprehensive response” was submitted to President, Prime Minister, key public officials and to the relevant ministers. 

“It is to be noted that whilst simultaneously the internal investigation were being carried out by a three member Board Committee of SriLankan Airlines, some of the employees were also summoned to the PRECIFAC (Presidential Commission of Inquiry to Investigate and Inquire into Serious acts of Fraud, Corruption and abuse of power, state resources and privileges), CID (Criminal Investigation Department), FCID (Financial Crimes Investigation Division) and the Bribery commission (Commission to investigate allegations of Bribery or Corruption) to provide Statements and submit documents and information and to this date, investigations continue with the CID, FCID and Bribery Commission,” the SriLankan statement said.

“The external investigations on the matters referred to above are not within the capability or the mandate of the board of directors,” it added.

It also noted a forensic audit of Public Enterprise Development Minister Kabir Hashim requested in July 2016 on the financial transaction and affairs referred to in the Weliamuna report was abandoned by the minister due to high costs. 

However, the recently resigned SriLankan Chairman Ajith Dias made public comments several times dismissing the findings of Weliamuna report to the dismay of many.