Chief Justice Sarath N.Silva this week queried whether money laundering or some illegal means were involved in the transaction by a ‘mystery’ company relating to the April 2003 privatisation of Sri Lanka Insurance Corporation (SLIC).

When Nihal Sri Ameresekere, former PERC Chairman and a respondent in a case filed by Presidential Advisor Vasudeva Nanayakkara against the SLIC privatisation, informed court that the company, Greenfield Pacific had been floated in Gibraltar with an address in Singapore to present its bid to clinch the privatization deal, the Chief Justice asked Nihal Jayamanna, PC, counsel for this company, as to who the shareholders of this company were and where this money had come from; whether it was from money laundering or any other illegal means. The counsel had said he was unaware who the shareholders were.

Court was hearing submissions on Wednesday in Nanayakkara's fundamental rights application filed in January 2008 to cancel and annul the privatization. Mr. Nanayakkara filed the application on behalf of himself and all Sri Lankan citizens, prompted by the Committee on Public Enterprises (COPE) 2007 report, claiming the public had been defrauded and state assets had been plundered.

Oral submissions were heard in the Supreme Court on July 3, 8, and 10 on the conduct of the two audit firms, PricewaterhouseCoopers and Ernst & Young as well as the conduct of Dr. P.B. Jayasundera, the Treasury Secretary and former Chairman of the Public Enterprises Reform Commission (PERC).
According to notes handed over to the court by Mr Ameresekere, 17th respondent in the case, both audit firms have 'evaded responding to queries raised' despite having obtained 16 extensions between June 2003 and October 2004 to conclude the purchase pric adjustment.

Mr. Ameresekere further stated that Dr. Jayasundera, the 7th Respondent, had not pursued to protect the interest of the government when the Attorney General and the then Minister of Public Enterprises Reform, the 3rd Respondent, had submitted a Cabinet Memorandum setting out the conduct and action of PwC and E & Y, and recommending that the Attorney General expedite legal action against the two firms. Greenfield Pacific is part of a consortium setup by businessman Harry Jayawardena to buy SLIC..