Corruption commission fast tracks probe on former NSB chief
A controversial National Savings Bank (NSB) share transaction involving its former chairman Pradeep Kariyawasam is being probed by the Commission to Investigate Allegations of Bribery or Corruption on a priority basis, but its chairman has declined comment on why this particular inquiry is being fast tracked.
The Commission’s Chairman D.J.de S. Balapatabendi, a former Supreme Court judge, said the probe was related to share transactions between the NSB and The Finance Company.
He said the investigation branch of the Commission was carrying out the probe on a complaint and a statement had been recorded from Mr. Kariyawasam.
The Commission was awaiting the report of the investigators to decide on further action.
The staggering Rs. 390 million stock market transaction by the stateowned NSB triggered a major row five months ago.
The deal involves a 13 per cent stake of The Finance Company (TFC) being bought by the NSB on April 27 at around Rs. 50 a share. This was through four separate transactions involving two TFC directors and the former NSB Chairman, when the share market price was hovering around a mere Rs. 30-31 a share. The Securities and Exchange Commission is also probing the deal.
Mr. Balapatabendi said the commission was investigating around 60 complaints of corruption and illegal assets acquisition against politicians, including MPs, Provincial Councillors (PCs) and members of local authorities, as well as several senior public officials including departmental heads.
Despite this heavy workload, investigations into NSB-TFC share purchase deal were being given priority and would be concluded soon, he said.
He noted that a legal report would be called from the legal branch of the Commission in the event the officers probing the case were faced with any legal issues.
The controversial NSB-TFC share purchase at inflated prices was reported in April this year.
The NSB had purchased 7,863,362 shares from TFC for nearly Rs. 394 million, despite objections by several members of the NSB board.
However, the transaction was later cancelled by the government. The controversy resulted in the resignation of Kariyawasam and several other members of the NSB board.
The commission launched investigations on the NSB-TFC share deal following a complaint by ‘ Voice Against Corruption,’ an organisation believed to be backed by the JVP.
JVP Parliamentarian Sunil Handunneththi said the organisation would continue to act against an alleged plan to hand over public funds of the EPF and NSB through the share market to pro- government businessmen and stock market racketeers.
Meanwhile United National Party parliamentarian Sujeewa Senasinghe, has complained to the Bribery and Corruption Commission against the investment of Employees' Provident Fund (EPF) and Employees' Trust Fund (ETF) money in the stock market. Mr. Senasinghe in his complaint said questionable investments of EPF and ETF money had resulted in the two funds incurring losses amounting to about Rs.12 billion.
He has accused Central Bank Governor Ajith Nivard Cabraal, Treasury Secretary P.B. Jayasundera and some others of being responsible for the losses incurred by the EPF and the ETF.