Contracts worth Rs.130mn approved against formality - PCOI

Rs.130 million worth contracts which could not be granted without the General Manager’s approval has been approved by the then General Manager of Srilankan Catering in 2014, it was revealed at the Presidential Commission of Inquiry (PCOI) on irregularities at Srilankan Airlines, Srilankan Catering and Mihin Lanka yesterday. Srilankan Airlines and Srilankan Catering, Senior Manager Group Assurance and Advisory Mahesh Nanayakkara informed the Commission that the General Manager of Srilankan Catering had approved Rs.15 to 30 million worth contracts which should have been approved by the tender board and also beyond Rs.30 million that should have the approval of the Board of Directors. He told the Commission in Srilankan Catering that there was a manual of disciplinary action for the lower grade staff but nothing for senior management officials. He also informed the Commission that his division had noticed that Srilankan Catering’s senior management staff had not followed the recommendations made by the Group’s Legal Division and especially Catering had not sent its contract papers to the internal Legal Division.

In 2015, the then Srilankan Catering CEO Sarath Fernando had appointed five individuals to higher grade positions, which were not in the organizational structure of the Srilankan Catering, Mr. Nanayakkara told the Commission.