Evidence continues in Ravi K case

Hiran H. Senewiratne

Deputy Exchange Controller Sisira Kumara Perera giving evidence before Colombo High Court Judge Deepali Wijesundera in the indictment against former UNP MP Ravi Karunanayake, said that wife of the accused Ravi Karunanayake forwarded a letter to Deputy Exchange Commissioner in response to a show cause with regard to the controversial financial deal to purchase shares in the Union Bank.

He said Karunanayake's wife's letter was the 3rd letter sent in response to the Exchange Control Department for show cause during investigations into the ex MP's financial transaction involving US$ 3 million. The State Counsel leading the evidence said Mrs Karunanayake's will therefore be summoned Court to give evidence.

The Deputy Controller said the Exchange Controller instructed him to conduct an investigation into this matter and the letter which was sent to him was signed by Mrs Karunanayake on the instructions of Ravi Karunanayake and written on official stationery with the national emblem on September 8, 2008. The reason being that Karunanayake's wife signed on his behalf since he was out of the country.

Perera giving evidence before the High Court Judge said Mrs Karunanayake mentioned in the letter that a non resident account has been opened in the Standard Chartered Bank to transfer money of the prospective Union Bank investors.

The Deputy Exchange Controller said the letters of explanation were also sent to Standard Chartered Bank and to the Chief Financial Manager of Gallion International Master Fund with regard to this transaction. Having received letters from them they found the sensitivity and the complexity of the transaction and were compelled to forward it for the Attorney General's perusal, he said.

Ravi Karunanayake's lawyers informed the Deputy Exchange Controller to submit the case before the Attorney General, said the Deputy Exchange Controller giving evidence before the High Court Judge.

He said Karunanayake has also explained to the Director Bank Supervision Division of the Central Bank of this transaction. The US based Nexia company being the first accused was called to give an explanation to the Exchange Controller because Raja Rajaratnam transferred Rs 250,100,000 to that company to purchase shares in the Union Bank, Perera said giving evidence. This took place between December 28 , 2006 to November 29, 2007.

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

Further, Karunanayake made arrangements as an investment promoter to purchase 10 percent Union Bank shares for Raja Rajaratnam and another five percent shares in Gallion International's name.

Karunanayake stated in his letter, that Ajith Zoysa, Malik Samarawickrama and the Sampath Bank acted as promoters of the Union Bank. But this agreement was mainly entered into verbally without written documents, Karunanayake had told the Deputy Controller.

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.

State Counsel Dileepa Pereis appeared for the Attorney General and Rienzie Arsakularatne PC, Anil Silva and Ananda Wijesekera PC along with Sudath Jayasundera and K Ganeshalingam appeared for the three accused.