Garlic scam: Trade Minister Bandula says Govt. must exonerate him

Two Pettah businessmen who were arrested over their alleged involvement in the Lanka Sathosa “garlic scam” were remanded in custody till October 5 after being produced before the Wattala Magistrate’s Court on Friday.

The two suspects, identified as Velayutham Sridharan and Sinnaiah Kamalakumar, were arrested by the Criminal Investigation Department (CID) over their alleged role in the illegal transaction of 56,000 kilograms of garlic from a Sathosa storehouse in Welisara.

Investigations conducted thus far have revealed two container loads of garlic were taken from the Sathosa wholesale outlet and sold to a private trader at Rs 135 a kilo. The market price for a kilo of garlic is around Rs. 445. The stock of garlic had been bought for about Rs 7.4 million without submitting any invoices. The garlic was reportedly abandoned at the port and had been cleared for sale to consumers via Sathosa outlets. The two suspects are alleged to be those who had purchased the garlic illegally.

These items cannot be sold wholesale. Thushan Gunawardena, former Executive Director of the Consumer Affairs Authority (CAA) told the Sunday Times in an interview last week that Sathosa officials who were involved had sold the garlic to the trader for Rs 135 a kilo and pocketed the money. The trader was a supplier of goods to Sathosa. The trader would in turn sell the same garlic stocks back to Sathosa at Rs 445 a kilo. He said it was someone inside the Sathosa head office who actually tipped off the CAA about the scam.

Mr Gunawardena, who resigned as the CAA’s Executive Director last month, has alleged that he had been subjected to political pressure to resign after the CAA exposed the scam. Four Sathosa officials were subsequently interdicted over the matter while its Deputy General Manager (Finance), who had been arrested by the CID over the incident, was granted bail by court.

Trade Minister Bandula Gunawardana told the Sunday Times that his lawyers had sent a letter of demand to Thushan Gunawardena claiming damages amounting to Rs 1 billion over the harm caused to his reputation due to the allegations leveled against him by the former CAA official. He claimed if he wins the case, the monies would go to a trust that he had started for Advanced Level students by depositing Rs 10 million of his own funds.

Minister Gunawardana also expressed disappointment at the way he had been treated in the media following the allegations. “I belong to this Government, and these accusations are being made by someone who was appointed by the government. Therefore, the Government has to exonerate me,” he said.

He said this was the first time that he was faced with such allegations, and pledged to resign not just from his ministerial portfolios but quit politics altogether if they are proven true.

The minister also said he had decided hereafter to stick only to subjects gazetted under his purview.