🔺 What to do when markets are at an all-time high? Find smart bargains, like these.See Undervalued Shares

Sri Lanka probes deals by ex-president, brothers amid graft concerns

Published 21/01/2015, 17:29
© Reuters. Sri Lanka's newly elected President Maithripala Sirisena arrives for his swearing-in ceremony in Colombo

By Shihar Aneez

COLOMBO (Reuters) - Sri Lanka's new government will investigate all financial deals sealed by former president Mahinda Rajapaksa and his brothers during his term as head of state and will take legal action if they involved any corruption, a minister said on Wednesday.

Rajapaksa lost his bid for a third term in an election on Jan. 8 after a campaign that had focussed on misuse of public funds and on his powers and those of his family members, many of whom held public office during his decade in power.

"All the alleged deals by the Rajapaksas will be investigated," government spokesman Rajitha Senarathne, who is also health minister, told reporters.

Rajapaksa and his brothers have denied any wrongdoing.

Senarathne said former defence secretary Gotabaya Rajapaksa, who oversaw the military defeat of Tamil Tiger separatists after a 26-year war, was alleged to have maintained a "private military" with a floating armoury, something he has denied.

On Sunday police seized more than 3,000 weapons in 20 containers from the armoury, run by private security firm Avant Garde Maritime Services (Pvt) Ltd and docked in the southern port of Galle.

The police also found 151 arms in a cache on Tuesday maintained by state-owned Rakna Arakshaka Lanka Ltd (RALL) in a Colombo convention centre where Pope Francis attended an inter-faith meeting during his visit to Sri Lanka last week.

Senarathne said a further 3,000 weapons had gone missing from the Colombo cache.

"A private firm can't have so many weapons ... They could stage an armed rebellion very easily. We have stopped these operations," he said.

In a local daily The Island, the former defence secretary rejected the allegations against him.

"(RALL) is a profitable enterprise and the profits go to the government. It became the foremost organisation providing security for ships in this region. Destroying this enterprise is a crime," he was quoted as saying.

A second brother of the ex-president, former economic development minister Basil Rajapaksa, faces allegations of misusing state resources during the election, Senarathne said.

Basil Rajapaksa, who left for the United States where he has citizenship soon after the election, was not immediately available for comment on the allegations.

The government is also reviewing all large Chinese-funded infrastructure projects signed under Rajapaksa to check whether their prices were inflated.

© Reuters. Sri Lanka's newly elected President Maithripala Sirisena arrives for his swearing-in ceremony in Colombo

Sri Lanka's Marxist opposition filed a corruption complaint last week against Rajapaksa and his relatives and asked the anti-graft body to stop them leaving the country.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.