Probe continues amidst claim that official is under threat

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The probe into allegations of a pay-off in the mega Krrish mixed development deal in Colombo Fort widened this week after the United National Party (UNP) alleged that a key official involved was under threat. The government however challenged the UNP to name the official.

The UNP at a media briefing on Wednesday said the official, whose name was not mentioned, had allegedly collected the money for two others and was now under threat.

The party was alluding to an alleged pay off of Rs. 400 million first reported in the Business Times (BT) two weeks back, over the approval of the Krrish project last year. The paper had also reported that the official concerned, whose name has been withheld for legal reasons, took a smaller share of the alleged payment while the larger part went to 2-3 others.

This week emissaries of the embattled official, who has neither stepped down nor given any indication of doing so from a top regulatory position, met BT journalists in an effort to persuade the newspaper to ‘slow down the criticism’. Efforts by the BT over the last two weeks to speak to the official have failed despite telephone calls, sms and emails.

There were indications that the report on the investigation may eventually turn in favour of the official due to the high personalities concerned, the BT learns. Reports from the Urban Development Authority (UDA) and the Board of Investment (BOI) on the Krrish transaction and other connected details were handed over to the Finance Ministry this week. The reports were in turn given to President Mahinda Rajapaksa, the BT learns.

The BT also learns that pressure is mounting from the Finance Ministry for the official to step down from a top institution that he heads. He has also been reprimanded by the President.

“There is a possibility that he may go abroad till the matter settles down,” one source said.

Staggered payment terms agreed with Govt. – says Krrish

The Krrish Group of India says there was agreement with the Sri Lankan Government on a staggered payment schedule for the lease rental of its Colombo mega development project
“From the very first MOU we made it clear that Krrish would require a staggered payment plan for land as we have the commitments to meet with in several multi billion dollars on going property development activities in India,” its chairman Amit Katyal said following growing, negative media attention over the project.

He said Krrish has been making payments according to the schedule agreed and so far Rs.4250 million has been paid to the Urban Development Authority (UDA) which constitutes 85 per cent of the total payments. The statement said the company was disheartened by the constant adverse publicity initiated by certain parties about this project without clarifying facts with “us’ or the relevant authorities.
“Constant efforts to highlight that there is a payment delay and other unfounded controversies around the project could discourage not only us but also many other potential investors who were looking positively at Sri Lanka. This has shaken confidence of the investors with whom we were in discussion for the financial closure,” he said.

Krrish said it has dealt with Sri Lankan Government and its officials in an extremely transparent manner and all transactions have been above board. “We categorically deny any allegation of otherwise as there was no need for it. While thanking all officials who advised us on the investment decision and supported our entry we would request those who have been raising concerns understand the correct facts and to support this project by appreciating the positive contribution it will make to the country in terms of foreign direct investment employment generation and economic contribution to the country,” the statement said.

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Probe continues amidst claim that official is under threat

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