The board of inquiry appointed to probe corruption in SriLankan Airlines during the past regime has found shocking details of corruption, a media release by Prime Minister’s Office (PMO) said on Saturday.

The board, headed by Attorney-at-Law J.C. Weliamuna found instances where SLA lost billions of rupees due to the manipulations of service contracting, recruitment of unqualified staff and major security breaches, PMO stated.

It should be noted that the SriLankan Airlines Chairman during the concerned period was Nishantha Wickramasinghe, brother of the former First Lady. The CEO of SLA was a close associate of the then first family Kapila Chandrasena.

It has been revealed that the previous regime decided to carry out a re-fleeting of the airlines with brand new aircraft costing US $ 2.3 billion despite the availability of more cost effective alternatives. The board of inquiry recommends criminal investigations into the entire re-fleeting process.

Furthermore, the board of inquiry uncovered evidence of an instance where former Sri Lankan Airlines CEO Kapila Chandrasena and former Sri Lankan Airlines Chairman Nishantha Wickramasinghe had falsified documents to lease a luxury SUV for the use of Wickramasinghe, in addition to a luxury Mercedes Benz and a luxury Prado.

The report also pointed out several instances of blatant mismanagement on part of SLA. The report stated that the management of the Sri Lankan Airlines knowingly ignored conflict of interest in companies and individuals hired to advise the national carrier on procurement. They board of inquiry also noted that the launch of an air taxi service which was eventually abandoned caused millions of dollars in losses to Sri Lankan Airlines.

Irregularities have also been discovered in the recruitment process where applicants who repeatedly failed entrance tests were eventually recruited based on verbal requests from the management.

The board of inquiry also alleges that the former chairman created a post of “SLA Brand Ambassador” and appointed his known companion, an air-hostess, even though no such designation was known to the national carrier.

The release by the Prime Minister’s Office goes onto state that the investigations have revealed that the former Chairman’s association with cabin crew members exposed Sri Lankan Airlines to abuse of power causing reputational risks as well as financial losses.

The board of inquiry recommends criminal prosecutions against former CEO Kapila Chandrasena, adding that he was unsuitable to hold his position. He was paid a minimum monthly salary of 1.5 million rupees on top of other perks. The board also reveals that at one given point Chandrasena drew a salary as Mobitel CEO as well as Mihin Lanka CEO.

The report also lists major fraud in the award of tenders and singles of a duty free deal and the sale of wine as one of the blatantly corrupt deals of Sri Lankan Airlines requiring criminal investigation.

It also adds that the appointment of a retired army major general to the security department was questionable since he did not have aviation security experience. It also accused him of engaging in political activities while employed in SriLankan Airlines. The board recommends immediate steps to be taken against him.

In addition, the board of inquiry also recommends criminal investigations into the involvement of former Sri Lankan Ambassador to Russia Udayanga Weeratunga and Dilan Ariyawansa in several general sales agents’ appointments.

The release issued by the Prime Minister’s office concludes that the management culture was a major contributory factor for abuse of power and external interference into the business of Sri Lankan Airlines.