Srilankan paid allowances to ex-chairman without board approval

Presidential probe

Srilankan Catering had agreed to pay a monthly allowance of Rs.250, 000 to former Srilankan Airlines Chairman Nishantha Wickremasinghe for three years starting from June 2009 without any board paper, Head of Corporate Secretarial Services, Srilankan Airlines Company Secretary, Dalarene Thrikumar told the Presidential Commission of Inquiry (Pcol) on alleged irregularities at Srilankan Airlines, Srilankan Catering and Mihin Lanka yesterday.

During her testimony she informed the Commission that Srilankan Airlines Board of Directors had agreed to pay Rs.500,000 as a monthly allowance to the former Chairman. This allowance was equally borne by Srilankan Airlines and Srilankan Catering.

She informed the Commission that after the resignation of Srilankan Airlines Chairman P.B. Jayasundara in September 2008, Mr. Nishantha Wickremasinghe was appointed as the acting Chairman of Srilankan Airlines.

“In a minute noted in October 2008 by the board of directors they stated that according to article 110 of Article of Association in Srilankan Airlines Nishantha Wickramasinghe was an acting director but in the Articles of Association in Srilankan Airlines there is no article specifically stating to an appointment of acting chairman,” she informed the Commission.

She also informed the Commission that before appointing Srilankan Airlines Chairman, Nishantha Wickremasinghe, he was a Superintendent attached to Finlays Tea Estate Limited.

Further she informed the Commission that the Board of Directors had been appointed to Srilankan Airlines only considering the Articles of Association in Srilankan Airlines without considering the Public Enterprises Guide Lines issued in 2003.

“In the Public Enterprises Guidelines issued in 2003, it has specified the compositions of board directors but the Articles of Association in Srilankan Airlines had not specified the qualifications which the directors should possess,” she informed the commission.