‘SRILANKAN CEO APPROVED ON BOARD LIQUOR SALES VIA PHOENIX’

Srilankan Airlines CEO Kapila Chandrasena had given Phoenix Duty Free Services Company approval to handle on board liquor sales without any proper tender procedure, Senior Manager Commercial Procurement, Sri Lankan Airlines, Gihan De Silva told the Presidential Commission of Inquiry (Pcol) on irregularities at Sri Lankan Airlines, Sri Lankan Catering and Mihin Lanka yesterday.

He informed the Commission that the CEO of Srilankan Airlines had appointed a special panel for a quality analysis and testing of liquor with the participation of several members from the Phoenix Duty Free Services company itself, whereas it should have been an independent panel.

Witness also informed the Commission with regard to the liquor sales, an agreement was entered between Phoenix Duty Free Services and Srilankan but the payments had to be made to a Canadian company named Phoenix Rising Ventures (Pvt) Limited.

Another witness, a Chartered Accountant at Srilankan Airlines, Upeka Abesekara in her testimony informed the Commission that during the relevant contract period the Srilankan Airlines Board of Directors had changed the minimum guarantee from Per Passenger basis to Origin and Destination Passenger basis.

“In order to the change a loss incurred to the Srilankan Airlines as changing the passenger numbers and the particular board paper was signed by Sri Lankan Airlines CEO, Kapila Chandrasena, CMA, G.T. Jayaseelan and Head of Finance, Yasantha Dissanayake,” she informed the Commission.

During the previous Commission hearing the Manager In-flight Services, Administration and Duty Free, Rashmore Ferdinands told the Commission that the Phoenix Duty Free Services company, the concessioner for in-flight duty free services had ordered alcohol worth USD 175,107.85 on tax free basis between 2012-2017 period, without having the necessary authority to make such a purchase.

Earlier also it was revealed that the Srilankan Airlines Board of Directors had granted Phoenix Duty Free Services Company a contract for in-flight duty free services for Sri Lankan Airlines between 2012 -2017 period, without any tender procedure.