The Attorney General’s Department this week indicted three individuals in the Colombo High Court including the former Securities and Exchange Commission (SEC) Chairman Nalaka Godahewa over alleged financial fraud at the SEC during the tenure of the previous Government. Along with Dr. Godahewa, the Attorney General (AG) indicted the SEC’s former Deputy Director General Dhammika [...]

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Arrested trio indicted for financial fraud

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The Attorney General’s Department this week indicted three individuals in the Colombo High Court including the former Securities and Exchange Commission (SEC) Chairman Nalaka Godahewa over alleged financial fraud at the SEC during the tenure of the previous Government.

Along with Dr. Godahewa, the Attorney General (AG) indicted the SEC’s former Deputy Director General Dhammika Perera and Tharunya Hetak organisation’s Sports Director Ronnie Ibrahim for alleged illegal fund transfers amounting to Rs. five million from the SEC fund to the organisation.

While three of them were charged under three categories of the Public Property Act, the third accused Ronnie Ibrahim was charged with aiding and abetting the others to commit the offence. The indictment details how the SEC funds allocated to be spent on an awareness programme for rural youth on the operation of the stock market, were mishandled by these senior officials of the two different institutions and funds were transferred to the account at the Bank of Ceylon of Premier Sports Limited for the promotion of the Carlton Super Sevens Rugby tournament in 2013.

The three suspects were arrested early this month and are in remand custody after bail options were rejected by the court. The Colombo Magistrate’s Court ordered on Monday to further remand them until December 23. Following a preliminary investigation by the Financial Crimes Investigation Department (FCID), it was established that the three of them manipulated the Board of Directors of SEC and the money was transferred as a payment for a hip-hop dance group which took part in the tournament promotion.

Dr. Godahewa was arrested on December 7 by the FCID after he arrived at the SEC to record a statement. The others were arrested on December 4. In October, the SEC’s former chief who was facing imminent arrest at that time filed a fundamental rights (FR) petition in the Supreme Court seeking an order to prevent the police from arresting him. However the Court turned down the request.

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