• UK probe reveals “bribery” in SriLankan deal
• Focus on 2011-2015 SriLankan Board
• SriLankan Board to discuss matter
• to investigate allegation

By Maheesha Mudugamuwa A lengthy investigation by British investigators has revealed a corrupt deal by European plane manufacturer Airbus, where it had paid bribes to secure plane deals in multiple countries including in Sri Lanka. The investigation by the Serious Fraud Office (SFO) found that in order to increase sales, persons who performed services for and on behalf of Airbus SE offered, promised, or gave financial advantages to others intending to obtain or retain business, or an advantage in the conduct of business, for Airbus SE. Investigators revealed that between 1 July 2011 and 1 June 2015, Airbus SE failed to prevent persons associated with it from bribing others concerned with the purchase of aircraft by SriLankan Airlines (SLA) from Airbus, namely directors and/or employees of SLA. Nishantha Wickremasinghe was the SLA Chairman at the time of the controversy while Kapila Chandrasena was the Director/Chief Executive Officer and the others in the board were Nihal Jayamanne PC, Shameendra Rajapaksa, Manilal Fernando, Lakshmi Sangakkara, Sanath Ukwatte, and Susantha Ratnayake. Investigations found that in 2013, an Airbus intermediary engaged with the wife of a SLA executive as a business partner, through a straw company which was registered in Brunei. Pursuant to the engagement, Airbus employees offered up to $ 16.84 million to the company of the intermediary to influence SLA’s purchase of 10 Airbus aircraft and the lease of an additional four aircraft. Pursuant to this agreement, the company of the intermediary would be paid $ 1 million on the delivery of each A330 aircraft and $ 1.16 million for each A350 aircraft purchased by SLA and $ 300,000 for each additional A350 aircraft leased by SLA. On 30 October 2015, Airbus also signed a market share agreement, which stipulated that the company of the intermediary would receive a $ 5 million lump sum if SLA did not purchase any competitor aircraft before 30 October 2015. At the Paris Air Show on 19 June 2013, pursuant to a purchase agreement, SLA ordered six A330 aircraft. These aircraft were delivered. On 28 June 2013, SLA ordered four A350 aircraft under a second purchase agreement. These aircraft were however, not delivered. The promised payments were up to $ 16.84 million. On 26 August 2013, the company of the intermediary submitted an invoice for the first $ 1 million pursuant to the consultant agreement. Airbus received from the SLA executive a further invoice for an additional $ 1 million on 2 December 2013. Payment was approved by Airbus and $ 2 million was paid in euros to the company of the intermediary on 27 December 2013. As a result of apparent over-ordering of aircraft under the then airline administration, the management which took office in 2015 had to cancel the lease of some aircraft at a cost of $ 98 million, and commenced negotiations with Airbus to cancel the purchase of four of the ten aircraft. Transparency International Sri Lanka (TISL) Executive Director Asoka Obeysekere told The Sunday Morning that there should be some compensation for Sri Lanka from Airbus in light of the fact that Sri Lanka had to bear a huge penalty charge emanating from corrupt practices by Airbus. “On the international stage, it is essential that the Sri Lankan Government pushes for compensation in light of the enormous loss that has been caused,” he said. When contacted by The Sunday Morning, Minister of Tourism and Civil Aviation Prasanna Ranatunga said that he had yet to receive the details on the investigations. SLA Chief Executive Officer Vipula Gunatilleka told The Sunday Morning that the matter will need to be investigated by the Financial Crimes Unit of the Police and the Commission to Investigate Allegations of Bribery or Corruption (CIABOC). He also said that the Board of Directors of the SLA will discuss the matter.