SriLankan Airlines had to pay a fine of Rs. 84.5 million in US dollars in 2012 in repsect of a dollar loan obtained from the Mashreq Bank on the instructions of former Treasury Secretary Dr. P.B. Jayasundera.
SriLankan Airlines Chief Finance Manager Yasantha Dissanayake disclosed this in his evidence before the Presidential Commission investigating alleged Fraud Corruption and Misappropriation of State Funds and property at SriLankan Airlines, SriLankan Catering Services and Mihin Lanka on October 5.
Cross examined by Senior State Counsel Yasli Rafeek, witness Dissanayake submitting the relevant documents said the fine was imposed for failure to abide by the conditions stipulated by the Mashreq Bank.
Dissanayake said the Airline had to incur heavy expenditure on fuel during the relevant period.
Although SriLankan Airlines Chief Executive Officer Kapila Chandrasena and members of the higher management knew in advance about the possibility of escalating fuel prices, their main attention was on the Via Capital Business Plan. The Airline had to bear excessive expenditure on fuel due to the nonchalance and disinterest shown by the higher management.
He said Bank loans too were used to pay for fuel.
The Presidential Commission is chaired by retired Supreme Court Justice Anil Gooneratne. Its other members are retired High Court Judge Piyasena Ranasinghe, retired Deputy Auditor General H.D.L. Harold and Sri Lanka Accounting and Auditing Standards Bureau Director General Miss Vasantha Geeganage. State Counsel Sajith Bandara assisted the Commission.
Courtesy: Daily News