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Fraud at Rubber Corporation: CID to quiz Ratnasiri

by Sarath Malalasekera

A statement from former Prime Minister Ratnasiri Wickremanayake will be recorded this week by the CID in connection with the alleged large scale fraud at the Sri Lanka Rubber Manufacturing and Export Corporation which came under the purview of the ex-premier as the Minister of Plantation Industry.

"We tried to contact Wickremanayake last week, but as he was indisposed we were unable to record his statement," a senior CID officer told the Daily News yesterday.

Earlier the CID produced three suspects before the Colombo Fort Magistrate and Additional District Judge Priyantha Fernando. They are factory manager Upul Nanda Munasinghe, corporation accountant V.G. Delduwa and former Chairman Sarath Wickremasinghe

Later they were granted bail, while Munasinghe and Delduwa were ordered to furnish Rs. 1 million bond with three sureties each. Wickremasinghe was ordered to furnish cash bail in Rs.100,000 and a bond of Rs.50,000 with three sureties.

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

Investigations also revealed that out of this, Rs.541 million is alleged to have been siphoned off while another Rs.152 million had disappeared.

Granting bail for the suspects, 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.

At the last occasion, President's Counsel D.P. Kumarasinghe who appeared with Suneetha Nanayakkara for Wickremasinghe, moving for bail submitted to court that this case does not come under the Public Property Act. Citing several authorities, Kumarasinghe said 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 does not come 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 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 Munasinghe said he would associate himself with the submissions made by the 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 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 per cent shares of the company are reserved for employees. This is Government money, the State Counsel added.

The Acting DIG CID commenced the inquiry on a directive by former IGP Lucky Kodituwakku, into the alleged fraud on the instructions of the Cabinet. The Treasury had allocated this 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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