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Rubber Corp. fraud suspects granted bail

The Colombo Fort Magistrate and Additional District Judge Priyantha Fernando yesterday granted bail for the three suspects who had been remanded in the massive fraud at the Sri Lanka Rubber Manufacturing and Export Corporation.

The first suspect factory manager Upul Nanda Munasinghe and the second suspect, Corporation accountant V.G. Delduwa were ordered to furnish Rs. one million bond with three sureties each.

The third suspect former Corporation chairman Sarath Wickremasinghe was ordered to furnish cash bail in Rs.100,000 and a bond of Rs.50,000 with three sureties.

The Judge directed them not to interfere with any of the prosecution witnesses and report to the CID on first Sunday and third Sunday of every month between 9 a.m. and 12 noon.

The suspects were directed to appear in court again on November 25.

President's Counsel D.P. Kumarasinghe who appeared with Suneetha Nanayakkara, for the third suspect Wickremasinghe, moving for bail submitted to court that this case is not coming under the Public Property Act.

Citing several authorities, Kumarasinghe said that the Treasury released funds to the company under certain conditions.

Once the funds are released that money belonged to the company and not to the Government. The money given to the company as a loan is not coming under the Public Property Act. Kumarasinghe submitted several medical certificates in respect of his client's health condition.

President's Counsel Srinath Perera, senior counsel for the second suspect Delduwa, citing authorities told court that this is not coming under the Public Property Act and moved court to grant bail for his client.

Jayantha Dias Nanayakkara, Senior Counsel for first suspect Munasinghe associated himself with the submissions of two senior counsel and moved that his client be granted bail as he was suffering from several ailments.

On the last hearing day State Counsel Haripriya Jayasundera who appeared for the prosecution with the CID and on the request of the Court vehemently objected to the suspects being released on bail and said that the suspects are alleged to have misappropriated a colossal amount of money belonging to the Government.

This money had not been released by the Treasury to an individual but to the Corporation. Only .02 percent shares of the company are reserved for employees. This is Government money, the State Counsel added.

Investigations revealed that a sum of 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 Treasury had allocated this amount of money for the building of a factory in Bulathsinhala. But upto date no construction work had commenced at the site earmarked for the factory building.

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