Finance Ministry to take Hyatt hotel to FCID

Hyatt HotelOn the instruction of the Minister of Finance Ravi Karunanayake, the Finance Ministry has taken the necessary initiatives to make a formal complaint to the Police Financial Crime Investigation Division (FCID) on the large scale misappropriation of funds and malpractices said to have taken place in the construction of the Hyatt Hotel projects in Colpetty and Hambantota during the last regime, the Ministry said in a statement today.

The Hyatt hotel project is owned by M/S Canwill Holdings Ltd which is a fully government owned public enterprise. 46 percent of its shares are held by Sri Lanka Insurance while the rest is equally shared by the EPF, and the Litro Gas Company under the finance ministry each holding 27 percent of the shares.

Soon after the new government came into office, the new management of the Canwill Holdings conducted a forensic audit on the affairs of the company.

This out sourced forensic audit firm has uncovered mass fraud and malpractices inclusive of the doubling the initial cost of the construction to Rs 27 billion from Rs 13 billion. Canwill  Holdings was previously managed by the former President’s Chief of Staff Mr. Gamini Senarath who has also held several other high profile offices in several other public enterprises inclusive of Litro Gas which is a stake holder of the owning company of the Hyatt Hotel project.

According to Mr Shalila Moonasinghe, the present chairman of the Litro Gas Lanka Ltd who is also Director at the Canwill Holdings, a host of irregularities and mismanagements have been highlighted in the forensic audit which warrants further investigations by Police.

The forensic audit report points out that the company of which Mr Gamini Senarath was at the helm has had no regards  to the laid down tender procedures and has engaged in surreptitious transactions blatantly violating all norms and regulations.

A payment of Rs 10 million has been made to a lawyer without any agreement, Rs 16 million losses were reported in steel purchases. Rs 80 million payment to a fitting supplier without the  Board of Directors approval   and entering into an international tender for US dollar 37 million the day before the January 08, Presidential election are among the host of irregularities unearthed by the forensic audit.

Hyatt Hotel project has two components with other being the construction of another hotel in Hambantota. It has been revealed that Rs 300 million has been spent from the Rs 5 billion earmarked for the Hambantota Hyatt project even without the foundation stone being laid for the project

Shalila Moonasinghe, the Director of the Canwill  Holdings said that on the instruction of the Minister Ravi karunanayake, the company would make the formal complain to the Police FCID next week with reported incidents of irregularities for further investigation by the Police.

3 COMMENTS

  1. How about this list – any activity to complete findings?
    1) Computer purchases for Mahindodaya labs. in Rs. 5.87 Bil..
    2) Issue of 1000 diplomatic Passports during 9 yrs. of Rule.
    3) 3 PSD Officers: Brig. Capt. & Major in Money Laundering during MR Regime
    4) Tourist Board Officials Rs. 5.7 Mil. . transactions
    5) SL Insurance re involvement of a Doc. & ex-Minister
    6) S.E.Corp Rs.4.7 Mil. Transaction
    7) Diary Printing by an ex-Minister Rs. 1.4 mil.
    8) D.A.Rajapakse Museum construction Rs. 110 Mil. under Def. Secy. Signature, undertaken by Navy
    & LR&D Com. Read details: http://www.lankaenews.com/news/1703/en
    9) Purchase of Gowers Pvt. Ltd. by a Parliamentarian
    10) 40 luxury vehicles rented by S.Eng.Corp.
    11) Rs. 3117 Mil paid by a Chinese Engineering Co. into 6 Banks A/cs.
    12) Commonwealth Games Trip of 140 persons & exp. of Rs. 358 mil. thereof
    13) Rs. 12,500 mil. found dumped in Temple Trees during Dec.2014/Jan.2015
    14) Prof. S.Wijeyasooriyas allegation re the sale & distribution of 40 Kg. Gold, also Siriliya A/c.
    15) Air Force Commanders dealings in the hire of Helicopters to Crain Ltd.
    16) J.C.Weliamuna Committee Rpt. on Lanka Airlines still in the hands of the PM of Sri Lanka.
    17) An ex-CJ admitting corrupt (?) verdict on “Helping Hambantota” Case! Read: http://www.thesundayleader.lk/2016/08/28/helping-hambantota-appeal-to-a-fuller-bench/
    18) An MR Co-ordinating Secy. holding multiple jobs arrested with 10 Gold Biscuits,(1106 gm) by FCID
    19) CICT paid Rs.19.41 mil. to Pushpa Rajapakse Foundation on 21-5-12 before Cololmbo South
    Terminal Contract commenced.
    20) JVPs petition filed in Supreme Court re 193 charges against K.P. & his assets disposed during MR Regime
    21) Min. Rambukwella`s Rs. 20 Mil. Ex Presidents Fund plus Insurance obtained over Med. Treatment in 2012.
    22) illegal renting of Fisheries Harbour by then Minister of Fisheries R. Senaratne, under previous Govt.
    23) One man Commission Report by ex- S.C Judge Nimal Dissanayake on Elephant Robbery
    24) Rs.372 Mil. Fraud by Diplomat U.Weeratunga in 2006 in MiG purchases under Gota then.
    25) White vanning by the past regime: https://www.youtube.com/watch?v=vgn0k-V31Q0&feature=youtu.be&noredirect=1
    26) Vihanage Rpt. Re Security Forces Headqrts.Bldg. and overpayment of Rs.173Mil.by D.Secy.
    27) 11 Dept./Com./Board/State Secretaries (incl.Gota) for corruptions, as detailed hereunder:- http://www.lankaenews.com/news/1423/en
    28) Auditor Gen. Rpt.on SLBFE under Dilan Perera spending Rs.925,309/- on balloons ex-Mattegoda
    29) The real value of Suriyawewa Cricket Stadium estimated at Rs. 852 mn by valuation officers though the previous government claimed to have spent a staggering Rs. 4,500 mln. on the project, says Hon.Ravi K.
    30) Over-valued rice purchases by K.Attapattu of Sathosa and related malpractices.
    31) FCID updates – No.64/15 Basil R. Rs.396 Mil. In 3 Property purchases
    32) FCID No.17/15 Yoshita R in 8 Transaction totalling Rs. 707 Mil.,
    33) FCID 138/15 Namal R in 16 transactions totalling Rs. 347 Mil.,
    34) FCID 82/15 Champika Karunarathna Rs. 5 Mil involving Extortions.
    35) Dr.PB.Jayasundera questioned over an allegation of importing 100,000 metric tons of rice from an Indian Company against the Cabinet Decisions, incurring loss of Rs. 5 billion. (see 42 below)
    36) Ministry of Agriculture building rent of Rs. 21 Miln. a mth. and Rs. 402 Mil. sought now for furniture and conversions, owned by Jayasinghe Tours & Transp. with an mishandled Agreement.? See details: http://www.ceylontoday.lk/print20160701CT20161030.php?id=3940
    37) Rs. 315m of government funds spent on the Grand Hyatt Hotel construction in Hambantota, but with no construction!
    38) Rajapakse Regime`s 2 visits to Seychelles costing Rs. 100 Mil., using 3 charted flights with 97 members and hiring of 68 luxury vehicles etc. etc.
    39) Tiran Alles & others in approx.. Rs.650 Mil. misappropriation of 2004 Tsunami (RADA) Housing Funds- Colombo H.C 5.No.8377/16. Details here: http://www.lankaenews.com/news/1669/en by its Courts Correspondent
    40) COPE Report on CB Rs.1396 Mil. for 3 Foreign Consultation Firms, Rs.6100 Mil. lent to failed Financial Institutions & Rs. 122 Mil. building purchased in Brazil. etc- etc. during previous Regime.
    41) Charges by COPE on Media Secy. Bopage involing Rs. 100 mil. of corrupt transactions at NHRDC in 2014
    42) Sathosa Rice imports worth Rs. 17 Billion from India by previous Govt and present Govt as reported here:
    http://lankanewsweb.net/news/item/4040-rishard-educates-with-a-technique-to-consume-an-enhanced-meal-from-rice
    43) Encashment of 18 cheques totalling Rs. 218 Million by Presidential Staff during MRs rule. (10/9/16 LankaTruth
    44) Two CEB Deputy General Managers in charge of Uthuru Wasanthaya under investigation in approx.. Rs.40 Million fraud.
    45) C.Ratwatte & 4 others in alleged financial frauds of Rs. 10,720 million under Public Property Act, under
    Arrest by FCID. Details: http://www.lankaenews.com/news/1630/en
    46) Diyawana Nilame FCID file No. CR5/27/2015.M. C of Kandy Case No. E 34983/15 re selling of lands belonging to the Maligawa etc, http://www.thesundayleader.lk/2016/09/26/fcid-hands-tied-on-allegations-against-dela/
    47) Deputy Minister of Home Affairs Nimal Lanza is alleged to have accumulated a large sum of wealth during a short period and hence he has been accused under the money laundering Act.
    48) Daisy Forrest (94 yrs) aunt of Shiranthi re purchase of lands for Rs. 49.52 Mil from 9 others – see http://www.thesundayleader.lk/2016/10/10/probe-on-how-yoshitha-grand-aunt-built-palaces-in-mt-lavinia/
    49) Hon Dilan MPs alleged corrupt activities totaling aprox. Rs. 66 Million involving 12 matters: Details in: http://www.lankaenews.com/news/1688/en
    50) Commodore Boyagoda had allegedly obtained Rs. 100 million from a Maldivian businessman to give him the albino turtle, which was stolen on 6-12-2013. Army Sampath involved in the robbery claimed that the stolen white turtle had died. He & 3 other suspects had been paid Rs. 4 million.

    .
    G.G/Y.P. success stories –
    1) Rs. 157.5 Million back to the Govt. Treasury confiscated ex Yoshitas Money Laundering Case.
    2) Two properties (one 16 acs- Rs.190 Mil.) & a Matara House (Rs.56 Mil.) held by Basil to be reverted as ownerless, for Govt. use.
    3) Carlton Sports Network Outside Broadcasting Vehicle valued at Rs. 93 Mil. to SL Rupavahini Corp. with high valued equipment missing! e.&. o.e

  2. now they might say this is also witch hunting and politically motivaated. When MR and gang come to power they can scrap easily.Rajitha and gang also need this.

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