June 04, 2018 (LBO) – Presidential Commission appointed to look into alleged malpractices at SriLankan Airlines, SriLankan Catering, and Mihin Lanka commenced witness hearings today.
The Commission will record statements from the head of Company Registrar and another official today.
The IMF completing its 4th review, last Friday said it is essential for the authorities to implement a restructuring plan for Sri Lankan Airlines, as well as further strengthening SOE governance and transparency.
President Maithripala Sirisena signed the Gazette notification appointing this Presidential Commission, in February 2018.
Retired Supreme Court Judge Anil Gunarathna, Court of Appeal Judge Gamini Rohan Amarasekara, Retired High Court Judge Piyasena Ranasinghe, Retired Deputy Auditor General Mallawa Arachchige Don Anthony Harald, the Director General of the Sri Lanka Accounting and Auditing Standards Monitoring Board Wasantha Jayaseeli Kapugama serving as the members of the Commission.
The Commission under the mandate from President is expected to look into the following irregularities in the relevant companies.
01. monetary allocations, loans, shares, investments and other finances from the Treasury, Central Bank, People’s Bank, Bank of Ceylon or any other financial institution.
02. The establishment, operation, and cessation of Mihin Lanka (Pvt) Ltd,
03. The reasons for the termination of the agreement entered between the SriLankan Airlines and Emirates Airlines, which is the international Airlines Company of the U.A.E. and its complex results,
04. Entering, extending and termination of agreements to purchase of aircraft and other assets, selling, leasing, selling and re-renting, conveyance, exchange, releasing and disposal.
05. Purchase, hire, lease, charter, sale, and transfer of aircraft or any assets valued more than Rs 50 million.
06. Consigning and appointing of sub-agents, brokers and consultants, companies, individuals or entity to supply goods, services or any other function
07. Opening, maintenance and suspension of networks and offices in other countries
08. The interactions between SriLankan Airlines, SriLankan Catering and Mihin Lanka.
09. Human Resource Management including selection, appointment, remuneration, promotions, transfers, employee restructuring and retirement of the Board of Directors, CEOs, Chairman and other senior management.
10. Financial reporting, compliance with relevant accounting and auditing standards, and financial and operational performance and standards.