Ravi K case:

Deal to purchase Union Bank shares unravels

Hiran H. Senewiratne

Deputy Exchange Controller Sisira Kumara Perera giving further evidence before Colombo High Court Judge Deepani Wijesundera in connection with charges against former UNP MP Ravi Karunanayake said the third accused, Karunanayake came to see him with two lawyers in respect of the letter sent to him with regard to the financial deal to purchase shares in Union Bank.

The Deputy Controller said the Exchange Controller instructed him to conduct an investigation into the ex MP's financial transaction involving US$ 3 million.

Second accused Linton Piyasena and Karunanayke have had a discussion to purchase shares of Union Bank shareholders the reason being Piysaena was a professional with experience in the field. Karunanayake had stated this in a letter, to the Deputy Controller.

Perera said Karunanayake in his letter stated that he was acting as a promoter for foreign investors to purchase shares in the Union Bank.

Certain leading investors expressed their interest in this transaction including Raj Rajaratnan, Gallion International, Dubai Bank and Abans.

During that period Karunanayake stated that Ajith Zoysa, Malik Samarawickrama and Sampath Bank acted as promoters of the Union Bank to get them to enter into an agreement. But this agreement was mainly entered into verbally without any written documents, Karunanayake had told the Deputy Controller.

Karunanayake had stated that he has investments in those prominent companies, the Deputy Controller said. K.C.M.G Ford Rhodes and Sea Air Worldwide did the Due Diligence report study on the bank. Karunanayake promoted foreign investors to broad base the operation of Union Bank. Leading companies including John Keells and DFCC Bank hold shares in Union Bank, he said.

He said Gallion International sent US$ 3 million to purchase Union Bank Shares to the US based Nexia Corporation Service Ltd's account. All details of Nexia company were given to Karunanayake by second accused Linton Piyasena , Karunanayake stated in the letter, the Deputy Controller said.

Perera giving evidence before the High Court said Linton Piyasena was involved in every discussion they made on this deal and Karunanayake was directly involved in this transaction as a promoter.

President's Counsel Ananda Wijesekera, President's Counsel Rienzi Aresakularatna, Anil Silva with Rasika Balasuriya and Shan Senanayake instructed by G.P Arulpragasm appeared for the defence.