-By A Special Correspondent
(Lanka-e-News -24.Nov.2024,11.30 pm) The MiG scandal is one of Sri Lanka’s most controversial cases of financial mismanagement and corruption, involving high-level officials, international shell companies, and misappropriation of funds during the Sri Lankan government’s attempt to procure MiG-27 fighter aircraft from Ukraine. The scandal spans across several jurisdictions, including the UK, Singapore, Hong Kong, the British Virgin Islands, and Sri Lanka, with allegations pointing to massive kickbacks and fraudulent transactions. It has also led to attacks on investigative journalists and a murder that remains unsolved.
This report aims to analyze the details of the scandal, map out the flow of funds, and identify the key players involved. It also highlights the failure of investigations and the potential avenues for recovering the misappropriated money.
1. Gotabaya Rajapaksa
• Then Secretary of Defense, alleged to have received a commission from the deal.
2. Duminda (Account Holder in Sri Lanka)
• A crucial figure linked to the scandal through an account at Sri Lanka Commercial Bank.
3. Lee Tian So, Lee Tian Bok, and Ng Le Kim
• Singaporean family connected to the scandal through Bellimissa Holdings, a shell company.
4. Bellimissa Holdings Ltd.
• A British Virgin Islands-based company used as an intermediary for the transactions.
5. DS Alliance
• A company reportedly investigated for its role in the fraudulent transactions.
6. Marsh Ukraine
• The supposed supplier of the MiG aircraft.
7. Star GLGA Establishment (Dubai)
• A company that received $400,000 linked to the deal.
8. Investigative Journalists
• Iqbal Athas: Attacked and threatened during the investigation.
• Lasanta Wickrematunge: Editor of The Sunday Leader, murdered in 2009 while pursuing the story.
In 2006, the Sri Lankan Air Force (SLAF) negotiated the purchase of four MiG-27 fighter jets and the refurbishment of four existing ones. The deal, worth approximately $15 million, was purportedly facilitated through intermediaries, bypassing direct government-to-government arrangements.
1. Structure of the Deal
• The SLAF paid over $15 million to a Singaporean family (Lee Tian So and others).
• Out of this, $8 million was reportedly paid to Marsh Ukraine for the aircraft and services.
• The remaining funds, over $7 million, were allegedly diverted as kickbacks and distributed through various entities.
2. Shell Companies and Transactions
• Bellimissa Holdings: The company reportedly received $7.833 million from the SLAF but only paid $8 million to Marsh Ukraine. The discrepancy suggests substantial funds were misappropriated.
• Funds were routed through multiple jurisdictions, including Singapore, the UK, Hong Kong, and the British Virgin Islands.
• $400,000 was sent to Star GLGA Establishment in Dubai, from which the money disappeared.
• Another $80,000 was allegedly paid to a Sri Lankan national linked to Viratunga’s brother-in-law.
3. Property Purchases
• A property worth $650,000 was reportedly purchased under Viratunga’s name using these funds.
• An additional $500,000 was allegedly transferred to the Singaporean facilitators.
1. Commission Payments
• Gotabaya Rajapaksa is alleged to have received a commission for facilitating the deal. The exact amount remains undisclosed but is believed to be part of the $7+ million siphoned off through Bellimissa Holdings.
2. Fraudulent Transactions
• The account in Sri Lanka Commercial Bank under the name “Duminda” received unexplained funds, raising questions about its role in the scandal.
• There was no investigation into the $400,000 transferred to Star GLGA in Dubai.
3. Unexplained Disappearances of Funds
• Over $7 million remains unaccounted for, with funds being transferred through various jurisdictions without transparency.
The scandal has had devastating consequences for investigative journalism in Sri Lanka:
1. Iqbal Athas
• A respected investigative reporter, Athas, exposed early details of the MiG deal in his articles. He was attacked and threatened, forcing him to leave the country. Despite the gravity of these threats, the Sri Lankan government never called him to testify before a commission.
2. Lasanta Wickrematunge
• Editor of The Sunday Leader, Wickrematunge was assassinated in 2009 while investigating the scandal. His murder remains unsolved, and many suspect it was linked to his pursuit of the truth about companies like DS Alliance and Bellimissa Holdings.
Despite multiple allegations and evidence, Sri Lankan authorities failed to conduct a thorough investigation:
1. Presidential Commissions
• No significant inquiry was conducted into the MiG deal. Key witnesses, including Iqbal Athas, were never summoned.
2. Accountability of Bellimissa Holdings
• Bellimissa Holdings, the linchpin in the fraudulent transactions, was never scrutinized. Its directors, Lee Tian So, Lee Tian Bok, and Ng Le Kim, remain unaccountable.
3. Oversight of Financial Institutions
• Transactions involving Duminda’s account at Sri Lanka Commercial Bank were not properly investigated.
• International banks used for fund transfers, including those in Singapore and Dubai, escaped scrutiny.
4. Murder Investigations
• The deaths of Wickrematunge and threats against Athas were not adequately addressed, reflecting a broader failure to protect whistleblowers and journalists.
Recovering the misappropriated funds would require a coordinated international effort:
1. Tracing Transactions
• A forensic financial audit could map the flow of funds through Bellimissa Holdings, Star GLGA Establishment, and other entities.
• Cooperation from jurisdictions like Singapore, the British Virgin Islands, Dubai, and Hong Kong is crucial.
2. Freezing Assets
• Properties purchased with illicit funds, such as the $650,000 property under Viratunga’s name, should be identified and frozen.
3. Legal Action Against Bellimissa Holdings
• Bellimissa Holdings and its directors could face international legal action under anti-money laundering (AML) laws.
4. Pressure on Sri Lankan Authorities
• International watchdogs and human rights organizations must pressure Sri Lanka to reopen investigations into the scandal and the associated murders.
The MiG scandal represents a failure of governance, accountability, and justice in Sri Lanka. High-ranking officials allegedly benefited from fraudulent transactions, while investigative journalists faced violence and death for uncovering the truth. The disappearance of over $16 million underscores the urgent need for a transparent, international investigation to trace the funds and bring the perpetrators to justice.
Reopening the case, with the involvement of international organizations, could potentially recover the stolen money and hold the culprits accountable, restoring some measure of justice for the people of Sri Lanka.
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by (2024-11-24 18:12:12)
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