MIHIN INCURRED LOSS OF RS.17.2 BN THROUGHOUT ITS TENURE: PWC

Mihin Lanka had incurred a loss of Rs.17.2 billion throughout its nine year period (2007-2016) until the liquidation of the company and the funds which had pumped into the company’s capital was insufficient to pay for the losses incurred; a Managing Partner of Pricewaterhousecoopers (PWC) Sujeewa Mudalige informed the Presidential Commission on alleged irregularities at Srilankan Airlines yesterday.

During his testimony he informed the PCOI that the then government had pumped Rs.14.2 billion of tax payers’ money to the capital of Mihin but at the end the company had incurred a Rs. 17.2 billion loss. When Additional Solicitor General (ASG) Neil Unambowe PC questioned him about the financial issues occurred within Mihin Lanka he said that the company had leased out three aircraft without following a proper tender procedure and that was the biggest financial issue that occurred in the company.

He informed the Commission that Mihin Lanka had not owned any aircraft .

He informed the Commission the Mihin Lanka had failed to produce necessary documents regarding the recommendations and technical evaluations which should be conducted before leasing the three aircraft to the international audit firm PWC. Mr. Mudalige informed the Commission that according to the Companies Act, if a company do not have their own expertise into a particular field that company could hire external expertise but the Mihin Lanka had not sought any external expert assistance when leasing these three aircraft.

He further said that from the commencing day of Mihin, the company had continued many unusual transactions and the company do not have supporting documents to these unusual transactions. ASG, Neil Unamboowe along with State Counsel Sajith Bandara led the evidence.