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| Tuesday, 23 March 2004 |
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Politics | |
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| Rs. 3 b transferred illegally to private company : Great Mahapola Trust fund swindle The United People's Freedom Alliance (UFPA) has bared another massive racket involving monetary assets of the Mahapola Trust Fund where Commerce and Consumer Affairs Minister Ravi Karunanayake has allegedly transferred these funds to a private company named, "National Wealth Corporation Ltd" which is said to be operated by a close associate of the United National Party. The Mahapola Trust Fund was established by Minister Karunanayake's political mentor, the late Lalith Athulathmudali when the latter was the Minister of Trade in the J.R. Jayewardene Government. Informed sources said the value of the monetary assets transferred to this company in March 2003 had been valued at Rs 3,160.7 million. The Directors of this company are said to be Dr Wickrema Weerasooria ( Former Secretary to the Ministry of Plan Implementation in the J.R. Jayewardene government), R.T. Wijesinghe, A. Kadirawelupillai, Dhamsiri Fonseka, Dammika Ranawana and Dilruk Ranatunga. Sources said this board of directors are the owners of shares of this company. Recipient students of the Mahapola Trust Fund alleged that the transfer of funds to this company of which Dr Weerasooria is a director, is an erosion of all ethical norms as Dr Weerasooria was a member of the Mahapola Trust Fund and claimed to be a co-pioneer of this valuable project launched by the late Lalith Athulathmudali. The transfer of the funds to this company has been reportedly done ignoring all legal tender procedures and the said company has had no financial stability to operate a Trust Fund of this nature, the sources said. "Minister Karunanayake has granted a loan to this company to buy shares worth Rs. 200 million and also offered another loan of Rs. 10 million allegedly as operational expenditure in last August," investigations have revealed. According to the agreement reached with this company which had no experience in the administration of a Trust Fund all resources of the Mahapola Trust Fund had been transferred to this company on March 2. The agreement does not provide any provisions for the Mahapola Trust Fund to call for a re-transfer of its funds if and when necessary and the Students' Organisation of the Mahapola Trust Fund has pointed out this deficiency to the UPFA. The students claimed that this company has taken measures to invest Mahapola funds in the share market with no guarantee to those funds which may lead to the abolition of the Mahapola Scholarship Scheme in the future, the students have warned. The Mahapola Higher Education Scholarship Trust Fund was set up by Act No. 66 of 1981 with the main source of funding emanating from the President's Fund to the tune of Rs. 250 million on an annual basis. The late Lalith Athulathmudali inaugurated this fund to be operated at a minimum cost limiting the staff to nine. In 2001 December, salaries and administrative expenditure only cost Rs. 58,000 which was borne by the Mahapola Trust Fund. Under the stewardship of Minister Ravi Karunanayake, the staff had been increased to 39 in 2002 with the monthly expenditure rising to Rs 639,000 which was a 300% increase. Those recruited after 2002 had been paid salaries ranging from Rs. 20,000 to Rs. 65,000 and the 'expert' manager who had drawn a salary of Rs. 65,000 had not been able to operate the Mahapola Scheme efficiently, student sources revealed. Mrs Srimani Athulathmudali, the wife of late Lalith Athulathmudali, who is an official member of the fund is learnt to have refused to attend Mahapola Trust Fund meetings claiming that transactions of the fund were not being conducted in a proper manner. |
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