The Sri Lankan government today ordered an investigation into a USD 2.3 billion aircraft deal after allegations of corruption and impropriety against former top officials of the country's national carrier, including ex-president Mahinda Rajapaksa's brother-in-law.
A press release from Prime Minister Ranil Wickremesinghe's office said an inquiry panel "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 the former government".
The board of inquiry probing the functioning of SriLankan Airlines - 'SriLankan' - under the government of Rajapaksa, has also found fault with his brother-in-law and former airline chairman Nishantha Wickramasinghe for gross abuse of power.
The panel headed by senior lawyer J C Weliamuna has handed over its report to the premier this week.
The report recommends criminal investigations into the entire USD 2.3 billion re-fleeting process of buying 10 Airbus planes for the airline under Rajapaksa's government. It has also recommended that former airline chairman Wickramasinghe be prosecuted.
The inquiry had found evidence of Wickramasinghe and ex-SriLankan CEO, Kapila Chandrasena, falsifying documents to lease a luxury sports utility vehicle for the use of Wickramasinghe in addition to other luxury vehicles he used.
Airline staff knowingly ignored conflict of interest in companies and individuals hired to advise the national carrier on procurements leading to a reasonable assumption that they were all corrupt deals, the report said.
A cabin crew member had been released from the airline to work at the presidential secretariat following a request that she be released for political work for Rajapaksa's son.
The report said she had been paid over Rs 4.2 million by the airline, including allowances for cabin work although there is no explanation of what services she provided.
The former chairman had also created a post of 'SLA Brand Ambassador' and appointed his known companion, an airhostess, even though no such official designation was known to the national carrier. The couple had travelled abroad on tickets bought by SriLankan from other airlines too, it said.
The report also lists major fraud in the awarding of tenders and singles out a duty free deal and the sale of wine as one of the blatantly corrupt deals of SriLankan requiring a criminal investigation.
The inquiry also points out the corrupt manner in which General Sales Agents were appointed in many countries on behalf of the airline and manipulations made.
