President appoints Two Commissions of Inquiry to probe ETI sale and allegations against CIABOC, FCID and SIU under previous Govt

The President on Friday appointed two Commissions of Inquiry (CoI) to look into several matters--including the sale of the assets of ETI Finance Ltd--that took place under the aegis of the previous Government.

One body will inquire into whether the Commission to Investigate Allegations of Bribery and Corruption (CIABOC), the Police Financial Crimes Investigation Division (FCID) and the Police Special Investigations Unit (SIU) had ulterior political motives in the manner in which they conducted business.

And the other will look into whether there had been wrongdoing, irregularities and malpractice in connection with ETI Finance Ltd (ETI), a Central Bank-regulated finance company which faced serious financial problems leading to the CBSL intervention and the sale of its assets to settle its depositors.

The CoIs were both gazetted on Friday. The first must determine whether there has been “any malpractice or irregularity, or non-compliance with or disregard of the proper prudence, norms, guidelines, procedures and best practices” applicable in relation to the administration of CIABOC, FCID and SIU.

It will look at whether any investigations by these bodies “had been influenced or obstructed or prevented in any manner, resulting in loss, damage, injury or detriment, either direct or imputed to any person or persons”.

It will see whether any officer entrusted with the conduct of investigations by either body has “acted under undue influence by third parties, including by the said Anti-Corruption unit”; and also whether any person “had committed any act of political victimization, misuse or abuse of power, corruption or any fraudulent act” in relation to the functions of the said bodies, or in relation to the administration of any law or of justice.

This Commission is headed by Upaly Abeyrathne, retired Supreme Court Judge. Its other members are Retired Court of Appeal Judge Daya Chandrasiri Jayathilaka and Retired Inspector General of Police Chandra Fernando. They have six months to complete the task.

In a long preamble, the gazette says public officers, employees of public corporations, and members of the armed forces and police service, who held office before the Presidential and Parliamentary elections of 2015 have alleged that they were subject to political victimisation between January 2015 and November 2019.

It was reported that several persons, including public officers who have held or continue to hold office in these institutions, “are alleged to have been manipulated in furtherance of the alleged political victimisation” and that they have publicly said that “such process of political victimisation was institution through a special unit dealing with Anti Corruption, operating under the purview of the Prime Minister” during the period in question.

“...it has been brought to my notice that the alleged process of political victimization has created a substantial negative impact on the performance of public officers, employees of public corporations and members of the armed forces and police service, and, as a result, such officers, employees and members have shown and show reluctance to take decisions while discharging their duties and prefer to adopt a passive approach towards work, thereby causing a prejudicial impact on the functions of Government”.

The second Commission is headed by retired Supreme Court Judge K T Chithrasiri. The other members are retired Solicitor General Suhada Gamalath and D M Gunasekara, a senior banker.

It has been assigned with looking at whether there has been any violation of the law in the administration, management, functions and conduct of the affairs of the Central Bank of Sri Lanka (CBSL) in relation to the sale of ETI and its assets including Swarnamahal Financial Services Plc, EAP Broadcasting Company Limited with its subsidiaries; EAP Films and Theatres Ltd (and its subsidiaries); Hotel Sapphire (Pvt) Ltd; Swarnamahal Jewelers Ltd, etc.

It will also make a determination on the sale of these establishments to a consortium of Blue Summit Capital Management (Pvt) Ltd, and Ben Holdings (Pvt) Ltd in violation of restrictions under laws on ownership of media institutions by foreigners; and whether the sale of the ETI assets violated any of the laws of Sri Lanka prohibiting the purchase of immoveable properties by foreigners.

This Commission has been given three months to carry out the job.

(Namini Wijedasa)