<b>Cabinet Sub-Committee: BMW cars airfreighted from Hong Kong / Jakarta</b>

The Island

Investigations by the Cabinet Sub-Committee into the purchase of 49 luxury vehicles and armoured cars at over Rs. 2 billion during the last regime have revealed that some of the BMW cars air freighted to Sri Lanka from Hong Kong and Jakarta were on letters of credit opened by the president’s office.

"The letters of credit had permitted Messrs. Navigahareim of Germany to effect export from any Asian port. These cars were manufactured in 1998. They therefore do not fit into the President’s statement that all the cars were "custom built" upon special orders placed by the president’s office after the bomb attack on her in December 1999 and the assassination of C. V. Gooneratne on June 2000. The value of these vehicles at the date of purchase will also now require verification".

The cabinet sub-committee comprising Ministers John Ameratunga, K. N. Choksy, Mahinda Samarasinghe and Ravi Karunanayaka has also observed that answers to the following questions are still not forthcoming from the President.

Why Tender procedures were not followed in making the purchases;

Why Cabinet approval was not obtained for the purchases or for the issue of Letters of Comfort by the Treasury to the Bank of Ceylon to open Letters of Credit.

Why Budgetary provisions were not observed, and why no Parliamentary approval was obtained the total cost of the vehicles being in the region of 2 billion rupees.

Why an intermediary company called R. R. Navighareim of Germany was introduced into the Letters of Credit opened by the Presidential Secretariat for purchase of the BMW cars, and why some of the Letters of Credit opened by the president’s office permitted export of the BMW cars to Sri Lanka from "Asian Ports".

Why it is that some of the BMW cars were exported from Hong Kong and Jakarta because the President informed the Cabinet that the cars were "custom-built" upon special orders of the president’s office after the bomb attack on her in December 1999 and the assassination of Minister C. V. Gooneratne in June 2000.

The report further states:

The Cabinet Sub-Committee appointed to investigate the importation of vehicles by the Presidential Secretariat in 2000 and 2001 has considered the Press Release dated 19th July 2002 by the Media Director of the president’s office. In as much as this Release is based on incorrect facts, and without foundation accuses the Sub-Committee of "back-tracking" and of "lies and fabrications", we consider it essential to state briefly and without emotion the basic questions which have arisen during our investigations and which have remained unanswered by the president’s office since 26th June 2002, so that the public would know the reasons behind the Cabinet’s investigation.

Documents available at the Customs establish the import into Sri Lanka in 2000 and 2001 of 48 vehicles by the Presidential Secretariat, including Benz and BMW cars. With her first Note to Cabinet on 19.6.2002, the President stated that the purchases were made on her directives, filed a list showing only 35 vehicles imported during the relevant period, and said "no further inquiries into this matter are needed", Subsequently, the President in a Press Release spoke of 50 vehicles being imported. In view of this, the Cabinet is compelled to investigate the whole matter.

The President on 10th July 2002 wanted the Hon. Prime Minister to "view" the vehicles and the whole matter to be closed thereafter. The Cabinet, however, took the view that no useful purpose will be served by such an exercise and suggested that a team of qualified officials should "inspect" the vehicles. The President by her Note to Cabinet dated 17th July disagreed. The Cabinet nevertheless on 17th July decided to proceed to appoint a team. The President wanted the whole exercise completed within the next two days, but this was not agreed to by the Cabinet because it was wholly impractical.

The Cabinet Sub-Committee met the next day (18.07.2002) and commenced work on appointing the team of officials. There was no "back tracking".

Since then two new developments have taken place.

(i) Documents have been received by the Sub-Committee through official channels that certain of the BMW cars have been air freighted to Sri Lanka from Hong Kong and Jakarta. This was made possible because Letters of Credit opened by the president’s office permitted Messrs. Navighareim of Germany to effect export from "any Asian port". These cars were manufactured in 1998, according to the manufacturer. They therefore do not fit into the President’s statement that all the cars were "custom-built" upon special orders placed by the president’s office after the bomb-attack on her in December 1999 and the assassination of Mr. C. V. Gooneratne in June 2000.

(ii) The value of these vehicles at the date of purchase will also thus now require verification.

(iii) A member of the public has lodged a complaint with the CID calling upon the CID to investigate the purchase of the vehicles in view of large sums of public monies being spent.

The Cabinet Sub Committee is of the opinion that the matter has reached a stage where, inter alia, investigations may have to be made abroad as well and also statements recorded etc. The Sub Committee will therefore be recommending to the Cabinet that all further inquiry/investigations should be done by the CID which is authorized by law to do so, and has the necessary facilities to conduct such an investigation.

Courtesy - The Island