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WB detectives here to probe multibillion-rupee frauds
WB detectives here to probe multibillion-rupee fraudsA high level team from the World Bank’s Stolen Assets Recovery Initiative (StAR) is due in the country early next month to assist local investigators probing frauds running into billions of rupees and involving leaders of the former regime, a senior police official said yesterday.
He said the assistance of StAR was sought since the bulk of the allegedly stolen assets had been stashed in foreign banks in countries such as the United Arab Emirates, the United States, Britain, India, the Seychelles and European capitals during the Mahinda Rajapaksa regime. The StAR team was expected to undertake the probe at their end once the local investigators handed over evidence, he added.
A similar team was also in the country earlier this month and was provided with material evidence to assist in the probe overseas.
At present the newly set up Police Financial Crimes Investigation Division (FCID) is probing allegations into three fresh cases that surfaced over the recent days.
The cases involve the controversial MiG fighter jet deal, the Road Development Authority (RDA) Project on the Southern Highway and the alleged fraudulent acquisition of a private land to construct a seven star hotel at Kollupitiya, the official said.
He said that in the MiG case, investigators were probing an alleged fraud of around US$ 10.5 million.
He said the cost of the jets was much less than the figure quoted to the Cabinet and a large sum was channeled into a private account overseas.
The police are also investigating an alleged fraud of some Rs. 2.5 billion during the construction of the Southern Expressway that came under the purview of former President Mahinda Rajapaksa.
Investigations are also centered on the alleged fraudulent acquisition of valuable land bordering the Galle Road at Kollupitiya for the construction of a seven-star hotel belonging to an international chain.Meanwhile the Presidential Secretariat has also complained to the FCID about a large sum of money allegedly channeled to several banks in foreign capitals.
Meanwhile Finance Minister Ravi Karunanayake has also alleged that there was a Rs. 30 billion fraud during the construction of the armed forces headquarters at Akuregoda in Battaramulla. He said while the actual cost for the construction was about Rs. 20 billion, the former Cabinet had been told that the cost had exceeded Rs. 50 billion.
Earlier, the Government also sought the assistance of the World Bank to track down illegal deposits that has been allegedly stashed by members of the former Rajapaksa regime in the Indian Ocean Island of the Seychelles. The focus on the Seychelles followed reliable information that members of the former government had made hurried and clandestine monetary transfers of a gigantic nature through the Bank of Ceylon Branch that in the Seychelles.
Seychelles Foreign Minister Jean Paul Adam has, however, denied allegations that his country allowed illegal deposits by members of the Rajapaksa regime. He has offered his government’s fullest cooperation in any probe if there is a formal request from Sri Lanka. In 2013 the Organisation for Economic Co-operation and Development (OECD) raised concerns regarding Seychelles’ tax transparency laws, as was the case in Switzerland and Cyprus.