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CID widens probe into Rs. 900 m fraud: Former Rubber Corp Chief detained

by Sarath Malalasekera

The Criminal Investigation Department (CID) investigating the alleged massive fraud at the Sri Lanka Rubber Manufacturing and Export Corporation during the past six years yesterday detained the Corporation's former Chairman Sarath Wickremasinghe.

The former Chairman was detained when he appeared before the CID on notice yesterday morning. He will be produced before court today, after recording his statement, CID officials said.

The CID also took into custody Ms. V. G. Nanda Delduwa, an accountant and Upula Nanda Munasinghe, factory manager of the Corporation in connection with the alleged fraud.

Later the two of them were produced before Colombo Fort Magistrate and Additional District Judge Priyantha Fernando who remanded them till August 27.

Earlier the CID questioned several leading opposition politicians to record their statements in connection with the alleged fraud.

The CID special team investigating the racket questioned several VVIP's in connection with the misuse of the funds released to the Corporation when President Chandrika Bandaranaike Kumaratunga was the Finance Minister.

The CID officials also recorded statements from several senior and junior officers in the Plantation Industry.

IGP Lucky Kodituwakku said that he directed the Acting DIG, CID to inquire into the alleged fraud on the instructions of the Cabinet.

Investigations revealed that Rs. 900.34 million had been released by the Treasury to the Rubber Manufacturing and Export Corporation during the last regime.

A sum of Rs.541 million is alleged to have been misused by the officials of the Rubber Manufacturing and Export Corporation. Investigators are trying to ascertain as to what had happened to another Rs.152 million which had not been accounted for, the investigators said.

The Treasury had allocated this amount for the building of a factory in Bulathsinhala. But upto date no construction work had commenced at the site.

The CID team also questioned the company that handled the import of equipment for the proposed factory in Bulathsinhala and recorded their statements.

Panduka Keerthiratne, Jayantha Dias Nanayakkara, Prasanna Weerasekera and Kingsley Hettiarachchi appeared for the suspects. 

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