Front Page

 
Ratwatte CDs: Sting Op. by CID
By Tania Fernando

What is a CD?
A Certificate of Deposit (CD) can be purchased from any bank for any denomination, for a specified period of time.

The CD does not contain the name of the holder and the bank does not maintain a record of the person who has purchased the CD, therefore this could be encashed by any person.

The minimum period a CD could be purchased for is six months and the maximum five years.

In the latest political bombshell, the CID is claiming it has found about Rs. 43 million worth of certificates of deposits allegedly belonging to the Ratwatte family in safe deposit vaults of a private bank, but the ex minister is claiming it is part of a malicious campaign while the bank is apparently playing safe.

The scene of this week's big news story was the Hatton National Bank at Kollupitiya. CID detectives claim the safe deposit vaults were in the names of Mr. Ratwatte, his wife Ramani and her son.

It began when CID detectives, armed with a warrant to search the vaults on allegations that drugs and firearms were hidden in them entered the head office building of the Hatton National Bank (HNB) in Kollupitiya. Bank officers quickly informed Ramani Ratwatte who in turn alerted her husband in Parliament before she rushed to the bank followed by Mr. Ratwatte.


Anuruddha Ratwatte coming to the bank - Exclusive pictures by J. Weerasekera

As an agitated Mr. Ratwatte entered he was apparently disturbed over the presence of a photo journalist and he was seen giving some orders to his body guards who told the photographer that their boss was on private business and it was none of their business.
Later CID detectives acting on Mr. Ratwatte's request asked the photographer to move out.

In the bank CID detectives and Mr. Ratwatte argued over the search with the ex strongman insisting that if the warrant was to search for drugs and weapons the CID could not check the certificates of deposits.

After checking one of the vaults where they reportedly found certificates of deposits, the CID officers appeared to be uncertain and decided to go for further legal consultations but they sealed the vaults before leaving. The detectives left the bank around 3.p.m. on Wednesday but Mr. Ratwatte who was at a crisis meeting with a senior officer of the bank stayed on for another hour, eye witnesses said.


Mr. Ratwatte waving a 1000- rupee note while his security officers obstruct The Sunday Times photographer, saying the ex-minister was there for a bank transaction.

The vehicle he arrived in was parked outside the bank while he took off in another vehicle belonging to a bank officer apparently to avoid The Sunday Times photographer outside the bank.

HNB Managing Director Rienzie Wijetilake said a representative of the bank was present when the vault was opened and nothing illegal was found. Mr. Wijetillake said he was not aware as to whose vehicle had been used for Mr. Ratwatte to leave the premises. "There are 80 vehicles belonging to the bank and I cant ask all of them whether Mr. Ratwatte used any of their vehicles," he said. Mr. Ratwatte giving his side of the story said he had received a call from his wife when he was in Parliament informing him that the CID had gone to the bank with a search warrant. "I asked my wife to show them what was in the lockers, but insisted that they could not go through any of the documents.

I then called the CID, and I was told that a search warrant was issued on allegations that drugs and small arms might have been hidden. I rushed to the bank and since the court order did not permit them to look at documents, I objected when they tried to do it," Mr. Ratwatte said. On Thursday the CID obtained another search warrant from Colombo's Chief Magistrate giving them authority to search the other vaults. Detectives claimed they found Rs. 11.6 million worth of Certificate of Deposits in the locker.

What the vault contained
Following is the breakdown of the Certificates of Deposits found in the vaults belonging to the Ratwatte family at the Hatton National Bank on the first day of the raid. They were recovered from vault No: 1008. A further stock of CDs to the value of Rs. 11.6 million was found on Friday. The other two vaults searched bore Nos 278 and 654. The CDs had been issued from various banks.

Mr. Ratwatte said that when the CID informed him that they had obtained a fresh warrant to search the lockers, he had given them permission and was there at the time of the search.

"When I questioned the CID officials, they said that they had not found anything illegal in the lockers," he claimed. General Ratwatte who led the war effort for seven years under President Chandrika Kumaratunga said it seemed to him it was more than a coincidence that he was arrested over the Pallethalawinna massacre when the government and the LTTE were signing the ceasefire agreement and now he was being attacked again when the ban on the LTTE was about to be lifted. CID officials said they would give a full report to the Colombo Chief Magistrate on Tuesday.

Tuesday, Aug. 27:
* The CID gets a tip-off that former Deputy Defence Minister and Minister of Power and Energy, General Anuruddha Ratwatte and his wife are maintaining millions of rupees worth of Certificates of Deposit (CDs) in three vaults Numbered, 1008, 654, and 278 at the main branch of the Hatton National Bank at Slave Island.
The CID is also told there is a possibility of other illegal substances being kept for safe-keeping in these vaults.

* The same afternoon, the Director CID, Lionel Gunatillake seeks and obtains legal advise on how to raid the vault.

* The CID is advised that only the Inland Revenue Department can raid a bank vault to search for CDs. The CID requires a court order. An option to raid the vault through the Inland Revenue Department is dropped. Instead, the CID is advised to obtain a court order on the basis of searching for other allegedly illegal substances.

* The CID seeks and obtains a court order to search these vaults for drugs and illegal firearms.

* The hierarchy of the Bank is informed of the impending search that evening.
* CID detectives are placed near the Bank overnight to ensure no persons enter the Bank while it is closed.

Wednesday, Aug. 28
* Around 9.30 am the Director of the CID and a posse of detectives arrive at the upper floor of the Bank and serve the court order to search the vaults.

* Mr. and Mrs Ratwatte are requested to turn up with their set of keys for the vaults.
* The former Minister who was in Parliament and his bodyguards arrive at the Bank premises in three vehicles.

* On a tip-off, The Sunday Times cameramen await the arrival of Gen.Ratwatte.

* They see through their lenses, Gen. Ratwatte coming charging into the Bank as his bodyguards try and prevent him being photographed.

* He goes up to where the CID officers are and protests at the vaults being searched.

* Inside, the CID manages to search some of the vaults - they come across Rs. 31.7 million in CDs. Other vaults are sealed. A statement is recorded from Gen. Ratwatte.

* Gen. Ratwatte is permitted the use of the staff elevator, and then leaves in a bank car.

* The CID fails to take into custody the automatic CCTV (close-circuit TV) tape that monitors movements inside the Bank to ensure no persons entered the Bank in the period the Bank was informed of the impending raid, and the actual raid. CID says they had no authority to do so, but are satisfied no un-authorised persons entered during that period.

Thursday, Aug. 29
* CID obtains a second search warrant from Colombo Magistrate, Priyantha Fernando to search the other vaults belonging to Ratwatte.

Friday, Aug. 30
* CID continues the search and detects another set of CDs valued at Rs. 11.6 million.

* Ratwatte tells the Press that this is an attempt to discredit him.


Back to Top  Back to Front Page  

Copyright © 2001 Wijeya Newspapers Ltd. All rights reserved.
Webmaster