Rajapaksa Era Ghosts Continue Deadly Haunt

Fingara Town and Country Club is one such private business where no one less than a Rajapaksa namesake still continues its deadly and freighting haunt.

The Fingara Town and Country Club which the showpiece of not only the then Ceylinco Consolidated ruled by now defamed and disgraced business tycoon – Deshmanya Deshabandu Dr. Jeewaka Lalith Bhupendra Kotelawala but even within the Finance & Guarantee (F&G) Group.

In the late 1980s when the finance industry was in turmoil, at the request of the Central Bank, The Finance Company (TFC) took over the failed finance companies The Finance & Guarantee Co. Ltd. (TFGL) along with Panadura Finance and Enterprises Ltd., and turned them around to be viable, profit making ventures within a short time. Later the F&G was admitted to the Ceylinco Consolidated.

2008 Global Financial Crisis

Although it weathered the 1998 collapse of Sri Lankan finance companies, F&G was not so lucky exactly two dacades later.

TFGL too suffered liquidity constraints in the wake of the collapse of the Golden Key Credit Card Company and the resultant crisis in the Ceylinco Group. The Central Bank of Sri Lanka appointed Merchant Bank of Sri Lanka PLC as the Managing Agent of TFGL with effect from 31.03.2009, in order to strengthen TFGL and restore public confidence in the company.

Consequent to the fundamental rights application bearing SCFR Case No. 317/09 filed by some investors of Finance & Guarantee Property Developers (Pvt) Ltd (PDL) and F&G Real Estate Co Ltd (RECL), the Supreme Court issued a stay order to TFGL on 01.06.2009. These developments restrained the day to day business operations of the company.

However two other entities within the F&G Group that accepted deposits – Finance & Guarantee Property Developers (Pvt) Ltd. (PDL) and F&G Real Estate Co. Ltd. (RECL) were not companies registered with the Central Bank of Sri Lanka to carry on finance business.

Some investors of the aforementioned companies filed a fundamental rights application bearing SCFR Case No.317/09 on the failure of the said companies to honour their obligations to investors.

When the fundamental rights application was considered in the Supreme Court on 23.10.2009, following Central Bank’s instructions Attorney General informed court that operations along with assets and liabilities of Finance & Guarantee Property Developers (Pvt) Ltd. (PDL) and F&G Real Estate Co. Ltd. (RECL) be severed from those of The Finance & Guarantee Co. Ltd. (TFGL). AG also informed Court that the representatives of the F&G Depositors’ Association, having considered the options available to them to recover the investments made with the said companies, had agreed to form a trust in order to protect the assets and secure the interest of the investor-depositors.

The Supreme Court, having considered the representations, granted approval to form a trust each for FGPD and FGRE (Later these two were combined). It was also ordered that the trustees of those trusts should include 3 individuals among the members of the F&G Depositors’ Association and 3 others nominated by the F&G Depositors’ Association, including a lawyer, accountant and a valuer subject to approval from the Supreme Court. The SC further ordered that the functioning of the trusts would be under the supervision of the Supreme Court.

Appointment of Rajapaksa 

After nearly two years from following the dissolution of the former trust the Supreme Court in 2015 named four new members namely -  Upali Rajapaksa, Ashley Vilathgamuwa, C. Caldera and Mahinda Wijesuriya to the new Board of Directors of the two previously unregistered companies of Finance and Guarantee – RECL and PDL with the approval of the Central Bank. The new Directors were empowered to control all assets and to work out a repayment scheme to depositors. The same directors were appointed to the F&G subsidiaries such as Fingara Town and Country Club (Pvt) Ltd, Fingara International Cricket academy, F&G Housing (Pvt) Ltd and F&G Management Services (Pvt) Ltd.

Insider sources said that with Upali Rajapaksa bringing a capital infusion into F&G, he always was open about ultimately buying out the Fingara Town and Country Club (Pvt) Ltd.

“He’s a billionaire and how he earns his money no one knows. But one thing for sure he is very cordial with Inland Revenue Department chief Kalyani Dassanayake so it is unlikely that Inland Revenue will ever investigate as to how he gets his funds,” he told The Sunday Leader.

“However he is well connected. He has lot of Police contacts and is a close confidante of the Rajapaksas. The problem is he still brags that he has the backing of a former Defence Secretary and even the Police are afraid of him.”

Norochcholai deal-maker

According to several sources Upali Rajapaksa was the deal maker who brought the Norochcholai Coal Power Plant deal to Sri Lanka initially during the Presidency of Chandrika Bandaranaike Kumaratunga.

It is learnt that in 2005 August 30 then President Chandrika Bandaranaike Kumaratunga inked the deal to put up 300MW Coal plant at a cost of US$ 300 million and it is speculated that immediately after signing this, US$ 1.5 million was given to Upali Rajapakse, the project promoter then, as a token of appreciation. Some sources say he remained a director of Lakvijaya Power Station (i.e. Norochcholai Coal Power Plant) till at least 2009.

“He was also the producer of the film Gamini and always brags that he is good friend of a former Defence Secretary,” a Fingara Club source told The Sunday Leader.

“He was open about his motives to take over the Fingara Club and mentioned it openly not only among the staff but also among the directors. However, since his motive was to buy this at very low cost, always tried to bring down this property and never wanted to see any betterment.”

“As the company was going down, for the first time since its inception in 2002, the employees set up a trade union and his oppression and suppression aggravated with it.”

It is learnt that his son – Neranjan Rajapakse who is neither a director or a depositors interferes with the management of the Club. He ‘takes’ decisions at times and has tried many instances to execute them.

Oppression and suppression

“Few weeks back when a meeting was called between the directors and the employees, he boycotted the meeting but all the other directors were present. Since Rajapakse wasn’t present some employees aired their views openly. However one of Rajapakse’s cohorts who had been in fact recruited by him, had surreptitiously recorded the whole event and had handed the video footage to him.”

“The next day his son – Neranjan Rajapakse walked in and threatened several employees who had expressed their disgust at Rajapakse’s oppression and suppression openly at the previous day’s meeting. What is laughable is that thereafter he went to the Mirihana Police and lodged complaints against the employees stating that he was threatened with death. No doubt he has close links with a highly corrupt Police bigshot. Our question is as to why complaints are accepted at the Mirihana Police when the Fingara Club is located within the jurisdiction of the Borelesgamuwa Police”

He added that not only several complaints had been lodged with the Mirihana Police but the Police was forced to institute prosecution before Gangodawila Magistrate Kanishka Wijeratne.

“Thereafter the Magistrate who dismissed action against two Directors issued orders against 19 employees of Fingara. In another instance Niranjan almost assaulted Ashley Vilathgamuwa. The oppression is so much that our cheque books were taken away by the Rajapakses and so we are unable to make payments to suppliers now.”

According to him, Rajapakse once got two of his henchmen to put up posters against the management and informed the Police that employees have put up those posters.

Retired Brig. Ranjan de Silva, President of Depositors’ Society of F&G PDL and RECL, earlier told media that he was removed due to oppression and suppression by Rajapakse.

Police connections

It is learnt that Rajapakse has close links with a highly corrupt Police bigshot who had previously allowed Sri Lanka’s biggest billion-rupee fraudster Chandana Weerakumara alias Sakvithi  Ranasinghe, who was the mastermind of the biggest financial scams to rock the country second only to the Ceylinco debacle; to fly out of Sri Lanka. In addition it is learnt that he has strong links with a former Inspector General of Police (IGP) who was a close confidante of former President Mahinda Rajapaksa. After the former IGP was posted as Ambassador to the United Arab Emirates, Upali Rajapaksa had attempted to push several deals with the ex-IGP including two hotel projects at Kalpitiya. (See emails)

Moves to appoint new directors

In July 2016, several media reported that a secret mission is underway to get Inland Revenue Department Commissioner General Kalyani Dassanayake, retired SC judge Nimal Dissanayake and another person presumed to be the former IGP, to the director board of F&G.

“This has come to light when a motion filed on July 06 in the Supreme Court by Upali Rajapakse, a director of the company, was taken up for hearing on July 27. The motion, seeking Dassanayake’s appointment to the director board, was put off, as one member of the three-judge panel was on leave. Senior officials of the Department question the appointment of their Commissioner General to a company, in which certain persons have invested money they had allegedly earned through inappropriate means,” Sri Lanka Mirror reported.

A high-ranking Inland Revenue Department speaking to The Sunday Leader said that all five Trade Unions had opposed this move and submitted a petition to President, Prime Minister and the Finance Minister raising concerns over appointing Inland Revenue Department Commissioner General Kalyani Dassanayake to the board of a private company, whilst holding the post of IRD CG.

In an email dated 15^th September 2015 which is in the possession of The Sunday Leader, the ex-IGP too is slated to have intimated to Upali Rajapakse his displeasure over this move. (See image)

“Sir, with regard to my job request, I think it is not good to go for a open Supreme Court session. Because the media will create a problem definitely. After the change of power in January the media attacked me severely. Now for the last 7 months everything is quiet. I do not want the media to focus attention on me again…. Therefore please do not forward my CV to the Supreme Court. We will drop this matter please…”

Kalyani refutes allegations 

However speaking to The Sunday Leader, Inland Revenue Department Commissioner General Kalyani Dassanayake dismissed allegations  raised by media and department officials.

“This has become a major pain to me. What can I do if a third party nominates my name? These are concerted efforts to create problems for me. Trade unions always want to show bad side of me. I am really disheartened. Extremists and parties with vested interests can write whatever they want, but I as CG am responsible and held accountable to government.”

Trade Unions petition authorities

Convener of the Voice Against Corruption Movement and President of the Inter Company Employees Union (ICEU) Wasantha Samarasinghe told The Sunday Leader that the Fingara Town and Country Club is in grave danger because of oppression and suppression carried out by Upali Rajapakse.  (See image)

“We have submitted a petition to the Governor of the Central Bank of Sri Lanka and its Director in charge of the Department of Supervision of Non Bank Financial Institutions citing the arbitrary, capricious actions and unilateral decision making by Upali Rajapakse disregarding even the other three directors appointed by the Supreme Court.”

“In addition we have requested the Registrar of the Supreme Court bring this to the notice of Court,” Samarasinghe added.