Wednesday 2 August 2017

I knew nothing about Penthouse deal: Ravi K.


Foreign Affairs Minister Ravi Karunanayake says...

- The penthouse was dealt by my wife and daughter

- Only got to know Aloysius’ connection to Penthouse when it was raised in Parliament

- Wife and Daughter did not inform anything to him on Penthouse rental or purchases


By Shehan Chamika Silva

Former Finance Minister Ravi Karunanayake today explained that he was unaware about the matters relating to the Penthouse rental and the subsequent purchase, as they were conducted through a company, in which his wife and daughter were directors and they had taken decisions excluding him.

He also said that he did not know until accusations arouse in Parliament that he was occupying an apartment which was rented by Aloysius’ company.

It was earlier revealed that Former Finance Minister, Ravi Karunanayake and his family occupied a Penthouse at the Monarch Residencies for eight months on lease basis and the lease amount, Rs. 1.45 million per month, was paid by Arjun Aloysius.

Subsequently the penthouse had been purchased for Rs. 165 million by Global Transportation and Logistics Pvt Ltd (GTL), in which Ravi Karunanayake’s wife Mela and daughter Onella were directors.

When the Minister was questioned he said it was his Family who had spoken to owner, Anika Wijesuriya and he had no communication with even Anika’s brother in finding a house on lease basis.

He said his wife, Mela Karananayake and Duaghter, Onella Karunanayake were dealing in the lease matter.

According to him, the Minister’s family was in need of a house because their Kotte residence was under renovation and due to the distant to Colombo.

He said his family moved to the Penthouse in February 2016, and he had assumed that his family had dealt the lease with Ms. Anika and had paid the rental.

He said it was only after the accusation made by Mahindananda Aluthgamage in Parliament he got to know about the issue and subsequently asked it from his family.

When questioned about whether he was aware that a company called Walt and Row, in which ArjunAloysius and his father were directors, had obtained the Penthouse on rent, he said he was unaware about it.

He said also that he was unaware that whether his wife was initially inspecting the Penthouse in the presence of Aloysius. The Minister was of the view that he knew about Ms. Anika Wijesuriya’s father before and on that basis his family informed that they are going to rent an apartment belonging to Ms. Anika.

When questioned then why the Minister’s family did not enter into a lease agreement with Anika directly, he said his family informed him that Ms. Anika was reluctant to rent the apartment to a politician and thereby Ms. Anika had entered into a lease agreement with Walt and Row Company.

He said his family had paid the rental payments to that company instead of paying it to Anika directly. He said the payments were paid to the accountant of that company and can be proven.

Mr. Karunanayake repeatedly said that he was unaware about the Company named Walt and Row, which was the company Aloysius and his father headed.

However, the Minister said subsequently his family had told him that they bought the Penthouse through Global Transportation and Logistics Pvt Ltd.

When questioned about the amount at which it was bought he said it was irrelevant to him since the GTL was operated by his wife and daughter independently from him even though he was a director of it prior to January 2015.

A heated argument began when Additional Solicitor General Dappula de Livera asked the witness that “There is a limit to lying”. The witness said he was testifying under oath so it was the truth.

The ASG was of the view that as the husband of the family he should have inquired the matter.

Subsequently, PCoI Commissioner, Justice Prasanna Jayawardena questioned the witness about the close relationship with his family members. And the witness said they were very close family.

When Justice Jayawardena asked why he was not informed about the rental matter for few months, the witness said he had not questioned about it.

“If you had known that you were occupying an apartment rented to Arjun Aloysius who is involved in Bond transactions, then would you have gone there because such an act would be a conflict of interest as the Finance Minster to do so?”  Justice Jayawardena asked.

Minister Ravi Karunanayake said he would not have done that if he knew it.

The rent amount for all months was amounting to Rs. 12.5 millions.

“The Justice asked, “Where did you get the Money to pay such rental?”. The Minister said it was from the money of his Daughter and wife.

He said the purchase was also possible because the GTL was having large amounts of assets.

It was earlier revealed in the commission that the Rs. 16.5 million initial payment and thereafter to pay monthly loan installment of Rs. 11 million for the Purchase of the controversial Monarch Residency Penthouse by the GTL owned  by Minister Ravi Karunanayake’s family.

the GTLPL has two major share holders, 30% acquired by a foreign company headed with the Chairman of the GTLPL and 70% owned by a company called OSM Holdings, in which Mrs Mela and Ms Onella Karunanayake are directors.

Referring to the evidence given earlier by Chief Financial officer Chinnaih of GTL Company, Justice Jayawardena asked the witness about the Rs. 145 million that were brought in by the GTL chairman Lakshmi Kanthan.

“I perused documents but I see no entry no transactions reflected in GTL accounts over that money” justice said.

It was said that the Rs. 16.5 million initial payment and thereafter the monthly loan installment of Rs. 11 million was paid from the money placed in the safe by the chairman of GTL.

The Minister said that when he was director of that Company the Chairman had lot of consultations and he was used to bring the cash in.

“You are well aware of Money Laundering because there should be some sort of entry”, justice Jayawardena asked.

The witness said according his knowledge the information relating to such entries are depicted as the advanced payments and he also ascertained they were not brought from abroad but the local money.

Thereafter, the Justice Jayawardena again asked about the knowledge of the witness over the controversial penthouse purchase, he said he was unaware about the lease or the purchase of the GTL initially.

When the Justice asked whether his family had known about the involvement of Aloysius and how it will effect the Minister and his duties, the witness said his family would not have known it .

Again the Justice said, “we are anxious about the fact whether you were aware or not”, he said “I knew nothing about the matter until it came to light in the Parliament in last July”.

In the mean time, the Minister also pointed some possible errors in the deed saying that his apartment was not 4000 square feet but about 2000 sft. The Commission said it has no concern about the size of it but the principles of the inquiry. however if needed will take appropriate steps to check its truth.

Finally addressing the Commission the witness said that he was willing to testify before the commission without any hesitation since his reputation has been tarnished by the Media recently over the matter.

Justice Jayawardene concluding the proceedings today said that “ we are finding the truth with no fear or favor to individual recognition”.

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