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Court rejects ex-SEC chief’s FR plea
The Supreme Court on Friday turned down a fundamental rights (FR) petition filed by the former Chairman of the Securities and Exchange Commission (SEC) seeking the court’s order preventing the police arresting him over an alleged illegal financial transaction.
Dr. Nalaka Godahewa, former Chairman of SEC filed the petition soon after the Criminal Investigation Department (CID) initiated investigations on the alleged financial transaction where the SEC transferred Rs. five million to Tharunyata Hetak, a youth organisation headed by MP Namal Rajapaksa.
The petitioner cited the Inspector General of Police (IGP), Attorney General (AG) and Director and Officer-in-Charge (OIC) of the Financial Crimes Investigation Department (FCID) as respondents.
The petitioner’s counsel argued that when the proposal was made to the SEC by the youth organisation seeking funds, it was approved by the Board of Directors of the Commission, therefore was a collective decision.
He argued that State operations are politically motivated and his client is being targeted in the process of a political witch hunt by this Government since he has been a supporter of the former President Mahinda Rajapaksa.
Justifying the actions by the CID as genuine investigations as part of a series of investigations by FCID, State Counsel Azard Navavi argued that when the Board of Directors learnt that the allocated money was to be transferred to a third party bank account in the United States of America, they refused to endorse the decision.
He informed the court that bypassing the Board of Directors’ decision not to allow such transaction, the then SEC Chairman Dr. Godahewa and Deputy Director General Dhammika Perera went ahead and approved the transaction.
The monies which was said to be allocated for an awareness programme among the rural youth on investing in the stock market was transferred to a third party bank account in US as a payment for a Hiphop dancing group that performed at the ‘Carlton Super Sevens Rugby Tournament 2014.
The petitioner’s lawyer Kalinga Indatissa PC cited that in a recent judgment of a FR case filed by former Parliamentarian Tiran Alles seeking an order preventing his arrest, the Supreme Court determined that there was no reasonable or justifiable cause to arrest him and asked the police not to arrest Mr. Alles till investigations were concluded.
Mr. Alles, the former Chairman of the Reconstruction and Development Agency (RADA) was facing a police investigation in connection with an alleged financial misappropriation case amounting to Rs. 640 million at RADA.
The Court overruling the argument held that if Dr. Godahewa and the other official approved the transaction they had to be held accountable.
Considering the facts presented in court, the Bench dismissed the petition and said the investigations by the FCID could proceed.
The Bench comprised Acting Chief Justice Eva Wanasundara, and Justices Upali Abeyratne and Anil Goonaratne.