The Supreme Court has ordered Treasury Secretary Dr. P.B. Jayasundara to pay Rs. 500,000, the highest ever compensation in a fundamental rights case, after finding him guilty of having concealed facts to the Cabinet and being party to an act of massive corruption. The case relates to the sale of a 90 per cent stake of Lanka Marine Services Ltd. by the Ceylon Petroleum Corporation to John Keells Holdings for Rs. 1,200 million in 2003.
In February 2005, an 8.5 acre land at the Colombo Harbour was handed over to JKH.
The court verdict, which came today (July 21st) held Dr. Jayasundara accountable on 16 counts.
The SC ruled that as the then PERC Chairman, Dr. Jayasundara and Executive Director of JKH Susantha Ratnayake had acted with dishonest intent in the sale of LMSL shares.
They had not carried out proper estimation of value of the sale and went ahead in the transfer without cabinet approval, causing millions of rupees in loss to the Sri Lankan state and people, the court ruled.
The Committee on Public Enterprise has also highlighted this transfer in its deliberations.
Further, the SC annulled the transfer of 8.5-acre Harbour land
that had been made without any payment, although the Treasury Secretary had got former President Chandrika Kumaratunga to transfer the land, and had prepared a fake deed for Rs. 1,200 million.
JKH has been ordered to vacate the land and hand it back to the harbour within a month.
The court also found Dr. Jayasundara guilty of having misled the Board of Investment in an agreement for a tax holiday sought by JKH, and declared void all such agreements between the two parties since 2003.
The SC ordered the Commissioner General of Inland Revenue to take measures to recover all tax dues from John Keells.
JKH has also been ordered to pay Rs. 250,000 as costs to petitioner Vasudeva Nanayakkara.
Nihal Sri Ameresekere, successor chairman of PERC and cited as a respondent, personally appeared before the court and submitted lengthy explanations regarding the discrepancies in the LMSL transfer to JKH.
In another development, the Bribery Commission is looking into the possibility of filing action against Dr. Jayasundara, Ministers Milinda Moragoda (PERC was under him) and Karu Jayasuriya (CPC was under him) on the charge of abusing public property in connection with this deal.
Progress of the parliament-approved measure is being reported on a fortnightly basis to the Speaker.
LD
In February 2005, an 8.5 acre land at the Colombo Harbour was handed over to JKH.
The court verdict, which came today (July 21st) held Dr. Jayasundara accountable on 16 counts.
The SC ruled that as the then PERC Chairman, Dr. Jayasundara and Executive Director of JKH Susantha Ratnayake had acted with dishonest intent in the sale of LMSL shares.
They had not carried out proper estimation of value of the sale and went ahead in the transfer without cabinet approval, causing millions of rupees in loss to the Sri Lankan state and people, the court ruled.
The Committee on Public Enterprise has also highlighted this transfer in its deliberations.
Further, the SC annulled the transfer of 8.5-acre Harbour land
that had been made without any payment, although the Treasury Secretary had got former President Chandrika Kumaratunga to transfer the land, and had prepared a fake deed for Rs. 1,200 million.
JKH has been ordered to vacate the land and hand it back to the harbour within a month.
The court also found Dr. Jayasundara guilty of having misled the Board of Investment in an agreement for a tax holiday sought by JKH, and declared void all such agreements between the two parties since 2003.
The SC ordered the Commissioner General of Inland Revenue to take measures to recover all tax dues from John Keells.
JKH has also been ordered to pay Rs. 250,000 as costs to petitioner Vasudeva Nanayakkara.
Nihal Sri Ameresekere, successor chairman of PERC and cited as a respondent, personally appeared before the court and submitted lengthy explanations regarding the discrepancies in the LMSL transfer to JKH.
In another development, the Bribery Commission is looking into the possibility of filing action against Dr. Jayasundara, Ministers Milinda Moragoda (PERC was under him) and Karu Jayasuriya (CPC was under him) on the charge of abusing public property in connection with this deal.
Progress of the parliament-approved measure is being reported on a fortnightly basis to the Speaker.
LD
