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A fresh team now assigned by the Government to take over the task to freeze and later recover the assets of the son of a former VVIP in a Dubai bank has just returned to Colombo after extensive talks in that emirate.

The team comprised senior DIG Ravi Waidyalankara, head of the Financial Crimes Investigation Division (FCID), Dilrukshi Dias Wickremesinghe, Director General of the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) and Yasantha Kodagoda, Additional Solicitor General. A fourth member Kalyani Dahanayake, Commissioner General of Inland Revenue, was unable to join.

This team is the outcome of exclusive disclosures made in these columns. As revealed earlier, Sri Lanka’s request to freeze the amount had been turned down by Dubai authorities. This was on the grounds that the VVIP’s son had neither been convicted nor even questioned on the existence of this account and how he inherited vast amounts of money. Nor had proof been adduced that this was ‘black money’ earned through illegal means. Original accounts placed the amount at more than US$ 1 billion but transfers, after it became known that a probe of sorts was under way, had caused the balance to dwindle to just over US$ 500 million. The Government’s original initiatives in this regard were spearheaded by Attorney J.C. Weliamuna who has been designated as the President of the Task Force on Stolen Assets Recovery. He, however, was not a member of the delegation to Dubai.

Debate on corruption
The three-member Sri Lanka delegation had extensive talks with officials of the Dubai Ministry of Interior and senior representatives of law enforcement agencies. Conspicuous by their absence were representatives of a foreign law firm hired earlier. An authoritative source said, “The delegation apologised over the previous approach and explained the circumstances under which a new request is being made.” It was a frank and cordial discussion where there was a friendly exchange of views, the source added, pointing out that “each side appreciated the other’s position.” Hence, the source claimed, the visit was a ‘very successful first step’ and they learnt the correct procedural approaches to follow. The source declined to elaborate saying it would hamper the future strategies. Other sources, however, hinted that several measures are to be initiated locally as they proceed with their task to build a case.

Ahead of the departure to Dubai the previous week, the four-member team made a thorough study of all developments since the Government first received information regarding the bank account. Contrary to earlier reports, it has now been established that the money had been deposited in the Mashreq Bank. The UAE Government has awarded this institution the title of the Best Regional Retail Bank for the current year. It has 12 overseas offices in Europe, the United States, Asia and Africa. It also has a branch in Colombo. It is the bank that offered a loan to SriLankan Airlines under the former administration to buy new aircraft.

The issue over the young politician’s alleged bank account figured in Parliament on Tuesday during an hour-long speech JVP leader Anura Kumara Dissanayake delivered on corruption. He said that despite assurances of dealing with corrupt activity, this was one of the instances when the Government had failed to produce results. The thrust of his speech, however, was focused on the operations of Avant Garde Maritime Services Limited (AGMSL). As revealed in these columns on January 25, a tie-up between Rakna Arakshaka Lanka Limited (RALL), a Government-owned security firm, and the privately owned Avant Garde Maritime Services Ltd. (AGMSL) operated a monopoly in providing security to ships against international piracy. There were accusations that this private company was given the task without calling for competitive tenders.

The AGMSL website said that its role is “provision of Sri Lanka Government Owned Weapons and Associated equipment to PMSCs (Private Maritime Security Companies)” which are returnable to ports in Muscat and Mauritius, both, as is clear, outside Sri Lanka. Among the weapons are Chinese made T-56, Russian Kalashnikovs (AK 47s) assault rifles, 7.62 ammunition for these weapons, Light Machine Guns (LMGs), ballistic helmets, body armour, Night Vision Goggles, Radio Sets (for communications) and flashlights. The Galle Police raided a floating armoury operated within the port in the southern city by AMGSL on board the vessel MV Mahanuwara. The investigations were to spark a controversy as some politicians stoutly defended the firm which is known to have enormous financial resources.

Thai Prime Minister Prayut Chan-o-cha (L) and Sri Lanka President Maithripala Sirisena (R) review a guard of honour during a welcoming ceremony at Government House in Bangkok on November 2. AFP

Anura Kumara Dissanayake said in Parliament, “…….. The UNP in its 2015 general election manifesto pledged to take action against corruption. The people entrusted you with the task of dealing with these corrupt people but what has happened now? First there were serious allegations against the Government on the Central Bank bond issue. There is a fundamental rights case in connection with a coal tender. Today you are taking the same path. Instead of bringing those who are accused of corruption to book, you have become their saviours. In the Avant Garde case, Government ministers and officials have intervened to shield the company. You have started to hide files, officials are intimidated, and you have begun to stifle the investigations. The Government that came to power to fight bribery and corruption is today engaged in the same.

Today there are many in the Cabinet who were accused of corruption. A person linked to ethanol is a deputy minister; a person who was engaged in narcotics trade is also a deputy minister. A particular former provincial council member whose house in Negombo was raided by the Anti-Narcotics officers was soon visited by the former President Mahinda Rajapaksa. He went there in a helicopter and hugged the person. He sent a clear message not to touch his men. Today this Government is now shielding these same people. How can we expect this Government to act against these corrupt people?……”

Marapana’s statement triggers debate
Replying the JVP leader, Law and Order and Prison Reforms Minister Tilak Marapana said, “……… If I reveal to the House the facts my “client” (Avant Garde Chairman Nissanka Senadhipathi) has revealed to me, a lot of people here may feel ashamed. There is a concept of floating armouries in this world. A lot of misconception has been created here because there is little understanding about these floating armouries. The operations take place according to UN sanctioned laws. It was the Sri Lanka Navy that first carried out this operation but it could not do it properly. Then Rakna Lanka, a 100 per cent Sri Lanka Government owned entity was set up. The weapons from the Defence Ministry were handed over to Rakna Lanka but even then, the Navy could not do this job properly…….”

Marapana’s statement in Parliament was to see the first ever explosive session of the nearly year-old Cabinet of Ministers on Thursday. The Cabinet meeting was delayed on account of President Sirisena’s absence from Sri Lanka as he was on a four-day visit to Thailand. Minister Patali Champika Ranawaka protested strongly that it was improper for his colleague Marapana to have defended Avant Garde and charged that he had spoken in Parliament as company’s legal consultant and not as a minister in the Cabinet. He argued that the Law and Order Minister’s remarks were not representative of the Government’s official position. Joining in was Minister Rajitha Senaratne who said a great sacrifice was made by many to elect Sirisena as President. If he had lost, they would have been placed at a suicidal situation.

We have made pledges to deal with large-scale corruption whilst some were defending the corrupt mega players. Senaratne asked Sirisena whether he had in fact met the AGMSL Chairman, retired Major Nissanka Senadipathy, as revealed in Parliament by the JVP leader. The President replied that hundreds had come to wish him after the presidential election but he could not recall this instance. In fact, Sirisena did call JVP leader Anura Kumara Dissanayake to clarify what he said about this meeting. Both Ranawaka and Senaratne threatened to take decisive political decisions if no action was taken over Marapana’s statement. Later, Senaratne, the official Cabinet joint spokesperson, told a news briefing on Friday that Marapana’s remarks and those by Justice Minister Wijeyadasa Rajapakshe in Parliament did not represent the official view of the Government.

Minister Rauff Hakeem declared that Minister Marapana had made the statement without any reference to the Cabinet of Ministers. Others who made angry protests were ministers Gamini Jayawickrema Perera and Ravi Karunanayake. Marapana defended his speech saying he had done no wrong. He said he had merely stated the legal position and said a case of that nature could not be proved in a court of law. His views, he said, were also supported by those of the Attorney General. President Sirisena who found that the arguments were becoming heated said he would summon another ministerial meeting. It has now been fixed for tomorrow (Monday). Prime Minister Ranil Wickremesinghe’s early departure from the meeting after whispering in the ears of the President was to cause some confusion. He had in fact said that he was leaving since he had to present the Medium Term Economic Strategy in Parliament that afternoon.

The Avant Garde issue surfaced again at the Government Parliamentary Group meeting on Friday. Ports and Shipping Minister Arjuna Ranatunga produced documents and alleged that they had been falsified by AGMSL. However, he did not make clear what the documents were. Ministers Ranawaka and Senaratne were more critical. There was applause from some sections of the group as they criticised Marapana. Once again, the Law and Order Minister reiterated that he looked at the legal aspects in making the statement. He said he was not a politician and therefore did not see the political nuances.

Minister Ranawaka told the Sunday Times, “Giving a clean certificate to Avant Garde or RADA deals when investigations are still under way is going against the mandate the people have given us to fight corruption. We will not allow such things to undermine the Government. If not for the alleged Central Bank bond issue, we would have won 300,000 more votes. The President and Prime Minister should be aware of the political costs of mounting corruption and not let these situations recur. There is serious concern among the people. Added JVP leader Dissanayake to the Sunday Times ; “We will move a vote of no-confidence against the Law and Order Minister. We have asked our lawyers to prepare the text”.

The crisis over Avant Garde deepened after the Sri Lanka Navy raided one of its vessels last month. Here are edited highlights of a statement (translated from Sinhala) made to the Harbour Police, Galle by Commodore N. Heenatigala, Deputy Commander of the Southern Naval Area. He was acting Southern Naval Area Commander on October 5, the day when the Navy detected the vessel MV Avant Garde with a haul of weapons on board. He made the statement on October 13 in the company of Commodore J.A.P. Jayasinghe and Attorney Asanga Karunaratne. It was in the presence of the Officer-in-Charge and ASP II Sathis Gamage.

I was informed at 1645 hours (4.45 p.m.) on October 5 that the Avant Garde merchant vessel bearing serial number IMO 8107036 had arrived close to the Galle Port and was not responding to communication signals. The Operations Room of Navy Headquarters was informed. I have certified it. On inquiries made from the Galle Port Deputy Manager, D.H.M. Sajeewa, he said that a request to permit a group of Sea Marshals to disembark at the outer port limit had been rejected. He said the Coordinating Officer of international ships and port security also had been informed by phone.

“An agent providing weapons to MALSHIP Ceylon Ltd had requested to receive three of its security persons (with weapons) in the outer ports limit. The request had been made from the Deputy Harbour Master Captain Sajeewa. The next destination of MV Avant Garde was mentioned as Colombo. (Produces relevant certified documents). Meanwhile naval observations revealed that small vessels Galle Express and Commander Seven had been launched for the transportation of Sea Marshals. However, none of them went towards the Avant Garde vessel. According to Naval records which are recorded automatically, this vessel was under the Sri Lankan flag and the last Port had been Sudan and the next port Colombo. On October 05, the vessel approached the Galle Port, but on September 21 it had left from the Red sea area. (The route of the vessel is documented and submitted).

On my instructions two naval patrol craft which left from Colombo were sent towards the vessel around 1730 hrs on October 5. This particular vessel was heading North West. I had instructed another Fast Attack Craft (FAC) to be on alert. The reason — the exchange of Sea Marshals had been turned down. Inquiries were made from Navy Headquarters around 1910 hrs (7.10 p.m.) from the Chief Executive Officer of the Merchant Naval Operations of Avant Garde Sea operations and we were told that the particular vessel was due to enter the port for replacement. Since it had arrived ahead of schedule permission was sought for the vessel until October 6 morning. On inquiries regarding weapons and ammunition on board, he had said there were no weapons and ammunition on board. On October 5 around 2000 hrs (8 p.m.) the Avant Garde ship was anchored off the Hikkaduwa area. On inquiries made by the Navy they were told that a Ukrainian national was the captain of the vessel and they were awaiting instructions from the principals. They declined to give details of the cargo in the vessel. Instructions were given for the vessel to move to a position where it could be observed, but that was turned down. He had claimed that there was insufficient fuel. The Automatic Identification System (AIS) indicated that the next port was Colombo.

“Therefore it was not logical to say that fuel was insufficient. Due to this disparity there were questions about the next move. Thereafter, on my instructions a special team (VBSS TEAM) led by Lt Weerasinghe boarded the vessel on Oct 06 at 0720 hrs (7.20 a.m.). They found that there were a large number of weapons and ammunition on board. This was contrary to the claim made by the Avant Garde Maritime Services Pvt Ltd that there were no weapons or ammunition on board. (Certified copy of details of the weapons and ammunition on board submitted). Orders were given to the vessel to approach the Galle Port for further inspection. The vessel was guarded by the Navy after deploying personnel on board. The vessel had sailed for 15 days through the Indian Ocean with weapons and explosives without informing the Sri Lankan authorities. It was the responsibility of Avant Garde to inform the Navy as the patrol craft are deployed in Dondra and in the deep sea.

“It has been observed that there is no request letter or a copy of a letter from the Avant Garde regarding the transportation of the 816 rifles of different types and 202,674 rounds of live ammunition from the Red sea area to the Galle Harbour. In the application by MALSHIP the Captain’s name is mentioned as M.D.D.S. Nanayakkara. Inquiries revealed that the Captain on the vessel was Ukrainian national Gennady Gavrylov and the next Port as Colombo.

“While the Navy was on the vessel, the Navy Headquarters received a letter where the Defence Ministry had given approval and attached with it was an application for the Avant Garde vessel to enter the Galle Port. Until late October 5, 2015 the next Port of destination was mentioned as Colombo. The Automatic Identification System (AIS) indicated that the Defence Ministry had granted permission for the vessel to sail to the Galle Harbour with three Sea Marshals and three weapons. The names and the weapon numbers too were mentioned. The passport numbers too were mentioned. That letter had not given permission to transport a large amount of weapons and ammunition.

Though copies of that letter should have been sent to the Navy commander as well, no such letter was received. A copy of the letter was found by the naval team which inspected the vessel. According to records available with the Navy, the Avant Garde Maritime Service Pvt Ltd has previously not sought permission for the movement of a floating Armoury or to enter a Port of Sri Lanka. In this case this vessel had entered the Sri Lankan territorial waters without legal permission or documentation. Therefore this journey is illegal. While the Naval team was on board on October 6 for inspection, the Defence Ministry had sent a letter to the Navy Headquarters granting permission for the vessel to enter the Galle Port. The letter was signed by the Defence Ministry’s Senior Assistant Secretary D.M.S. Dissanayake (MOD/UD/CS/FA/AT/2013). (Certified copies submitted).

“Further investigations and inspection of documentation revealed that there has been communication between the Sri Lanka Shipping Corporation and the vessel. (A copy attached). It is clear that until permission was obtained that the vessel cannot be anchored. It is reported that the Captain was not fully aware of the final destination. However, in the letter dated October 6 to the Defence Ministry it clearly states the intention of entering the Galle Port. This is a disputed subject according to the letters. According to the letter, the Rakna Arakshaka Lanka Limited (RALL) had made a request, but a copy was not received by the Navy Headquarters.

“An attempt has been made to evade naval checks by claiming that that there were no weapons and ammunition in the vessel. There is no importance to the statement that it was out of the Lankan territorial waters. Checking a vessel flying a Sri Lankan flag is the responsibility of the Sri Lanka Navy. If the journey was genuine the details of the cargo should have been declared to the Sri Lanka Navy and the Sri Lanka Ports Authority. During the inspection it was revealed that there was a discrepancy. There were 819 weapons out of which the identification of 59 weapons was not clear. Some had been altered or disfigured. The Police should investigate the reasons for disfiguring them. Steps are underway to mark these weapons and produce them. There is a discrepancy about the weapons and ammunition in comparison with the letter issued by the Defence Ministry. There is suspicion about the reasons and who provided this vessel with the weapons and ammunition. Nobody is aware as to how these weapons were obtained and when they were received. There is no information about that. It is important for the Police to find this out. There is no evidence within the vessel about the purpose of using these weapons.

“Granting permission to the vessel after it reached Sri Lanka is also questionable — in the letter dated September 23 (TO WHOM IT MAY CONCERN) permission has been granted only for three weapons. The application by RALL dated September 23 bears no annexures. There is no mention in the letter as well. There is doubt whether a forged letter has been submitted. It is noteworthy to mention that the issue of maritime security was highlighted during the Indo-Lanka dialogue recently. Therefore, the IGP should be requested to investigate the failure to provide information about weapons and ammunition and the violation of maritime laws.

Q: What is the first step you took?
A: I too went to the Operations Room and looked into the matter and informed the Navy Headquarters.
Q: What were the instructions received?
A: I was instructed from the Operations Room at Navy Headquarters to monitor the movements and deploy a guard. From Colombo the Navy vessel Nandimitra was despatched with a Fast Attack Craft. I despatched Lt Weerasinghe and his team.
Q: Who inspected the vessel first?
A: Lt Weerasinghe and team. They informed me and obtained instructions from me over the phone. It was inspected on October 6 at 0720 hrs (7.20 a.m.).
Q: Thereafter what steps were taken in respect of the vessel?
A: The Navy Headquarters and the Commanding officer in the area were informed and security was provided since then. Lt Weerasinghe and his team are stationed in the vessel.
Q: Did the Harbour Master of the Galle Port inform you?
A: No. When I inquired he gave details.
Q: Did you get any instructions to release this vessel which came in illegally with the weapons?
A: On October 6 a letter signed by D.M.S. Dissanayake (MoD) had been received by the Navy Headquarters. It is in English and says to provide assistance for the vessel to approach the Galle harbour.
Q: What are the details you have obtained from this investigation?
A: There is suspicion about the vessel which claimed it had no weapons and tried to enter the port with a large quantity of weapons without informing the Navy. The letter from the Defence Ministry which requests that the vessel be allowed to the Port should be investigated.
Q: What action is being taken?
A: I have handed over this to Police for further action.
Q: Do you have suspicion about the weapons and the Defence Ministry letter?
A: Yes. Yes the Police should investigate the arrival of such a large quantity of weapons without permission.
Q: How many persons including the Captain were on board?
A: Thirty three persons. (I also submit a copy of the application by Avant Garde to the Defence Ministry seeking permission for the transportation of weapons. This application has many shortcomings).

“According to the annexures, the vessel had sailed from the Red Sea on September 21. The application has been submitted on September 24. The Defence Ministry letter is dated October 6 and is after the Navy took into custody the vessel. It claims that that there were 60,000 rounds of ammunition, but in violation the vessel had 202,674 rounds. (Certified copy presented). According to the declaration, permission has been sought to anchor the vessel outside the Galle Port. The Defence Ministry letter of October 6 requests to permit the storage of the weapons in the RALL (Rakna Lanka) armoury within the Dhakshina Navy camp in Galle. Permission is granted only for the storage of foreign weapons at the RALL armory for which a payment is made. I request that further investigations be carried out on this. The declaration clearly indicates that the Defence Ministry has not forwarded the application to the Navy. All documentation indicates that the next port is Colombo. This shows that the information provided to the Defence Ministry is false. I am calling for an investigation.”

It is in this backdrop that the Ministry of Defence urged the Police to conduct a fuller investigation. Police Chief N.K. Illangakoon placed the task in the hands of the Criminal Investigation Department (CID) and the probe is still under way.

A Defence Ministry source said yesterday that records show that MV Avant Garde had sailed close to the territorial seas of several countries. Thus they were exposed to interception by foreign navies which may want to inspect the cargo. One such area sailed by the vessel is said to be the waters off Minicoy Island, part of India’s territorial waters. The source said operations of private maritime security companies (PMSC) in the region figured at the recent annual Sri Lanka-India defence dialogue in New Delhi. The relevant minute, the source said, notes “Presence of Floating Armouries and PMSCs: DS highlighted Indian concern on the large number of Private Maritime Security Companies (PMSCs) flourishing to counter Maritime piracy. He noted that in the absence of a regulatory mechanism to curb the growth of PMSCs, the unlawful use of these armouries cannot be ruled out. SLDS stated that his government is reviewing the existing regulations on this issue and assured that the Indian concerns would be adequately addressed.”

The source added that the Sri Lanka Navy had expressed concern to the MoD that if the large quantity of arms and ammunition on board had fallen into the wrong hands, it would have posed a serious threat to maritime security in the Indian Ocean region. They have also pointed out that the weapons where the numbers have been tampered with could be of dubious origin.

This is the first time since parliamentary elections on August 17 that the United Front Government for Good Governance (UFGG) is facing a serious challenge. Tomorrow’s special ministerial meeting will no doubt be important for both, President Sirisena and Premier Wickremesinghe, for it will point the direction in which the UFGG is headed. Even more importantly, it will be a pointer to how the Government’s anti-corruption drive would continue.