News
Mobitel hierarchy at loggerheads within
There’s trouble brewing at Mobitel with differences breaking out among some of its Board members. Unresolved disputes have pitted a group led by Mobitel Chairman P.G. Kumarasinghe against another which has been protesting against the continued presence of certain officials in senior positions.
The problems started several months ago, after the Presidential election, when objections were raised against Mobitel Chief Executive Officer Ranjith Rubasinghe by certain Board members.
Earlier, there had also been hostility towards the CEO of Mobitel’s parent company, Sri Lanka Telecom, on the grounds that he had supported former President Mahinda Rajapaksa’s political campaign while employed at the company.
Mr Rubasinghe’s presence was opposed on the basis that the Financial Crimes Investigation Division (FCID) was investigating a long list of allegations against him. Some of these are related to the use of Mobitel funds for political activities on behalf of the former Government.
For instance, Mr Rubasinghe reportedly authorised the expenditure of around Rs. 2 million in sponsorships for Carlton Sports and Nil Balakaya; sending LED trucks for rallies of the Rajapaksa presidential campaign; authorising the use of half of Mobitel’s hoardings to promote Mr Rajapaksa’s political comeback.
According to internal sources, Mr Rubasinghe had the backing of the Chairman Kumarasinghe and another director who has since been removed from the Mobitel Board (that too, after a long and unpleasant fight).
Mr Rubasinghe has also been suspended for three months pending inquiry, but not before the dispute reached a hiatus with a senior leader of the current administration exchanging words with two Board members.
Mr Kumarasinghe told the Sunday Times that the problems were internal and that he was willing to answer any question, provided it was related to the company’s business matters.
When it was pointed out that Mobitel was a public company he said, “Even in public companies, there are internal matters”. He accused “dirty rascals” and “extortionists” of being behind the ongoing problems.
Regarding allegations against Mr Rubasinghe, he said, “Just because there are allegations, it does not mean he is guilty. They have to be investigated.”
As a result of these arguments, Board meetings have turned into unpleasant and protracted affairs complete with shouting matches. The opposing members accuse the Chairman of siding with allegedly corrupt individuals.
They said a Finance Director was forced to resign recently after he was threatened. They also said the Chairman submitted a Board paper to increase his salary and that of other directors by three times the present scale.