Former CEB Chairman noticed to appear before FCID

Colombo Fort Magistrate Lanka Jayarathne has issued notice on former Ceylon Electricity Board (CEB) Chairman Charles Ferdinando to appear before FCID to make a statement regarding a magisterial inquiry.

This is in connection with the alleged misuse of funds belonging to the Employees Provident Fund at the CEB, while investing those funds in the Government Securities through a company named Entrust Securities PLC.

The Magistrate also issued an order directing the Central Bank to conduct a forensic audit pertaining to the CEB’s Employees Provident Fund under the supervision of the Auditor General.

The Magistrate ordered the FCID that a letter be sent through the Attorney General’s Department seeking the possibility of conducting a forensic audit in a government audit firm. The report in this regard was ordered to be submitted within two weeks.

The FCID had informed court that former CEB Chairman Ferdinando had left the country and is residing in Australia.

The former CEB chairman was noticed to appear before FCID on or before August 22 to make a statement regarding the magisterial inquiry.

In this case, the FCID had named Isira Dharmapriya Bandara Dassanayake (Chairman, Entrust Securities PLC), Chanuka Ratwatte (Managing Director), Romesha Dushanthi Senarath, Executive Director), Sanjeewa Dayaratne (Director) and Niloshan Romelo Mendis (Director) as suspects.

The prosecution alleged that the suspects had misused the funds belonging to the four Departments of the Central Bank and the Employees Provident Fund at the CEB, while investing those funds in the Government Securities through a company named Entrust Securities PLC, which is headed by the suspects.

Entrust Securities PLC is a primary dealer of the Central Bank (CB).The FCID conducting investigations into alleged financial fraud, informed Court that the Board of Directors of Entrust Securities PLC are allegedly responsible for the misappropriation of Rs.4,200 million of investment funds belonging to 350 investors, including the Pension Fund of the Ceylon Electricity Board and several other state institutions.