The Citizens' Power Against Bribery, Corruption and Waste organisation has lodged a complaint with the Commission to Investigate Allegations of Bribery or Corruption (CIABOC), calling for an investigation into the sale of a large plot of State land to a private hotel company during the regime of former President Mahinda Rajapaksa, and seeking the recovery of the land and legal action against those responsible.
The complaint, dated yesterday (29), was submitted by the organisation’s President, Kamantha Thushara. According to the complaint, the land was sold under Section 23(2) of the State Lands Ordinance (Chapter 454). The then President’s Secretary, Lalith Weeratunga, signed Deed Number 4/10/33433 on 29 December 2010, transferring a 2.4361-hectare (ha) block of land, identified as Lot 01 of Plan No. 9132, to the relevant company for US$ 75 million, equivalent to around Rs 8,250 million at the time.
The complaint notes that the purchasing company had been registered with the Registrar of Companies on 19 November 2010, just weeks before the transaction, with Mohamed Sajad Mashoon named as its Director. "A second block of land, Lot 02 of the same Plan, covering 1.6108 ha, was sold to the same company on 15 March 2011, for Rs 5,499 million under the same legal provision. The two transactions involved approximately 10 acres and 11 perches of State land, sold for a combined sum of Rs 13,749 million." it added.
The organisation alleged that the procedure required under Section 23(2) for the sale of State land to a private investor was not followed during this transaction. "There’re also questions about the speed with which the first transaction was completed. The survey plan was prepared on 27 December 2010, the deed was drawn up on 28 December, and the transaction was registered the following day, 29 December. The whole process took just three days."
It further claimed: "Cabinet of Ministers approval was not obtained for the sale and there’re issues about the valuation reports used to determine the prices of the properties. The land was sold without a public auction or a call for bids. The powers vested in the President under the Ordinance seems to have been misused to transfer State property to favoured parties." the complaint read.