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Mawratanews.lk | Sri Lanka Latest Sinhala News and Headlines
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Minister’s request carried out: investigation hits a roadblock as CID rejects billionaire pharma owner’s statement over substandard medicine, House visit for minister’s statement sparks controversy; Magistrate demands adherence to normal procedure

December 28, 2023
in News
Reading Time: 52 mins read
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Minister’s request carried out: investigation hits a roadblock as CID rejects billionaire pharma owner’s statement over substandard medicine, House visit for minister’s statement sparks controversy; Magistrate demands adherence to normal procedure
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Mr. Jaliya Samarasinghe, the lawyer representing the owner of ‘Ausulate Biotech Pharma,’ the primary suspect in the multi-crore rupee fraud case and endangering lives by distributing substandard antibody vaccines to government hospitals, appeared before Maligakanda Magistrate Ms. Lochani Abeywickrama Weerasinghe on the 27th.  Sri Lanka Latest News.

The Magistrate, upon receiving notification from Mr. Jaliya Samarasinghe, considered that the owner of the company, that imported the medicine, informed the CID about the involvement of former Health Minister Mr. Keheliya Rambukwella in the incident. However, the CID refused to record this information.

Taking into account arguments presented by the defence lawyers, the Magistrate pointed out the significant flaw in sending CID officers to the residence of former Health Minister Mr. Keheliya Rambukwella to record his statements, informing them that this action was highly irregular.

After deliberating on the facts presented by both sides’ lawyers regarding the incident for approximately 5 hours, the Magistrate issued relevant orders, extending the remand of the suspects until the 10th of January next year. Additionally, it was conveyed that the decision regarding the requests made by the defence lawyers to grant bail for the suspects would be announced on that day.

During the hearing of the complaint, Sugath Janaka Fernando, the owner of ‘Ausulate Biotech Pharma’ company, alleged to have imported substandard drugs, along with Shantini Solomon (Assistant Director of Medical Supplies), Accountant (Supply) Neran Dhananjaya, Stock Controller Sujith Kumar, and the former ministry secretary Janaka Sri Chandragupta, were remanded in connection with the incident.

The second suspect, Dr. Kapila Wickramanayake, former director of the medical supply department, was reported as unwell and receiving treatment in ward 80 of the Colombo National Hospital, with a medical report submitted by the prison.

The Chief Inspector of CID, Mr. Jayantha Payagala, has requested an investigation into a multi-crore rupee fraud involving the importation of substandard antibody vaccines named ‘Immunoglobin.’ These vaccines, intended for neurological patients, were distributed to government hospitals across the island through the forgery of documents using funds from the Indian loan scheme. The request for an investigation was made in response to a complaint filed by the Citizen Power Organization against Corruption and Waste and the Coalition of Civil Organizations.

During a court presentation, Sub-Inspector Yalewatta, accompanied by CID Chief Inspector Jayantha, introduced five suspects arrested based on information uncovered during the investigations. A 7-page report detailing the progress of the investigations was also presented.

Deputy Solicitor General Miss Lakmini Girihagama, representing the complainant alongside the CID, disclosed that the former Minister of Health had submitted three additional Cabinet Memoranda to the Cabinet. Memoranda 06 specifically implicated the former Secretary of the Ministry of Health, Mr. Janaka Sri Chandragupta. In response to this revelation, the Magistrate granted the request for the Cabinet Secretary to provide all relevant Cabinet papers, attachments, and decisions to the CID for further examination.

Miss Lakmini Girihagama has informed the court that, in compliance with an order to inspect the laboratory in Seeduwa owned by the suspect Mr. Sugath Janaka Fernando, the owner of ‘Isolate Biotech Pharma’ company, the court had initially ordered an inspection. However, due to some circumstances, the inspection was not possible. The magistrate, approving the renewed request, has ordered a re-inspection of the facility from tomorrow (28th) until the 9th of the next month, with instructions to bring the suspect to the location for necessary assistance.

Additionally, the Director General of Customs has been granted permission to provide a statement regarding the investigation into whether the suspect imported a stock of water purification chemicals into Sri Lanka under the guise of bringing vaccines to patients. The magistrate also sought to determine how these goods were released to the suspect without the approval of the Drug Regulatory Authority. Although the Director General of Customs has not yet given a statement, the magistrate, upon allowing the request, has mandated that the Director General provide a statement to the CID before the 8th of the next month.

While investigating the multi-crore rupee fraud and endangerment of patients’ lives through the distribution of substandard antibody vaccines called ‘Immunoglobin’ to government hospitals, Miss Lakmini Girihagama highlighted that the medical supply unit issued a purchase order to the first suspect for drugs used to clear the retina and drugs given to blood clotting patients in Sri Lanka. The former secretary of the Ministry of Health, the 6th suspect in this incident, issued a letter to the director of the medical supply department, expressing concerns about the catastrophic situation arising after the notification to issue purchase orders to selected suppliers.

A statement has been taken from Dr. Jayanath Butpitiya, a member of the evaluation committee for the procurement process related to the importation of the drugs in question. According to his notice, the required documents need to be checked. Dr. Jayanath Butpitiya, scheduled to provide a further statement, went abroad for a personal trip with the permission of the Secretary of the Ministry of Health. Miss Lakmini Girihagama has requested the court to direct the Secretary of the Ministry of Health to bring him back for questioning.

During the proceedings, when asked if Dr. Jayanath Butpitiya, a member of the evaluation committee, had been prohibited from leaving the country, Miss Lakmini Girihagama responded that he had already gone abroad, as had Dr. Sudarshana, another committee member, prior to that.

The magistrate, addressing the court, expressed that there was no immediate need for the court’s intervention in this matter. Instead, he suggested informing the Secretary of the Ministry of Health to take action under the Institutional Code to bring Dr. Jayanath Butpitiya back. The magistrate emphasized that if necessary steps were not taken, the court might issue orders at a later stage.

In response to Ms. Lakmini Girihagama’s request, the magistrate appointed the OIC of the CID’s Illegal Assets Investigation Division to inform the court about the progress of the investigation concerning the immediate recovery of the amount.

Regarding a complaint made by former Health Minister Mr. Keheliya Rambukwella through his lawyers on the 25th, stating that CID officers visited his house and recorded his statements, Miss Girihagama mentioned that during the recording of statements, Mr. Rambukwella was questioned about Cabinet memos, to which he claimed not to possess them.

Miss. Lakmini Girihagama stated that it was not possible to complete Mr. Rambukwella’s statement and submitted a brief report of the relevant statement to the court.

Upon a request stating that the relevant Cabinet Memoranda were available in the Coordination Office of the Ministry of Health, the Magistrate directed the Health Secretary to hand over all pertinent Cabinet Memoranda to the Secret Police Sub-Inspector Mr. Laksiri.

Miss Lakmini Girihagama stated that suppliers were selected to provide 182 drugs under the ‘Registration Waiver Certificate’ (WOR), and while this certificate was obtained from other suppliers who provided medicines, the same certificate was not obtained from the first suspect.

Magistrate Ms. Lochani Abeywickrama Weerasinghe questioned the acceptance of the ‘certificate of abandonment of registration’ as authentic documents by suspects 02 to 05.

Deputy Solicitor General Miss Lakmini Girihagama emphasized the need to compare how the ‘Certificate of Waiver of Registration’ was obtained with the report of the Drug Regulatory Authority. She pointed out that, according to a search warrant from the Negombo court, officers inspecting the drug manufacturing plant belonging to the first suspect reported that the place was either non-functional or unsuitable for drug production.

Magistrate Ms. Lochani Abeywickrama Weerasinghe noted that former Minister of Health Mr. Keheliya Rambukwella had mentioned complications from injections given by the first suspect’s liaison officer in committee meetings.

Deputy Solicitor General Miss Lakmini Girihagama added that despite this revelation, the medical supply department was ready to pay the first suspect. However, they issued three letters to stop payments immediately. Subsequently, the first suspect sent a threatening letter, asserting that the department had no authority to halt payments.

Magistrate Lochani Abeywickrama Weerasinghe raised the point that, according to the minister’s voluntary statement, it seems he was aware of the drug incident.

President’s counsel Mr. Nalinda Indatissa informed the court that the Cabinet, signed as Dr. Keheliya Rambukwella, approved payments to the first suspect under the Indian loan scheme or another method. He stated that the ‘Citizen Power Organization Against Bribery, Corruption and Waste and Union of Civil Organizations’ complained about this incident on October 2nd, followed by a complaint from the minister’s liaison officer on October 13. Mr. Indatissa characterized this as a conspiracy to embezzle money and called for a thorough investigation.

Deputy Solicitor General Miss Lakmini Girihagama highlighted that the tender was awarded to the suspect for one billion rupees, but due to the inability to procure the required vials, the transaction halted at this amount. She emphasized that every rupee of this transaction is to be borne by the innocent taxpaying public, and despite the medicines being urgently needed, they were received only after a delay of five months.

President’s counsel M.M Suhair, representing the second suspect Dr. Kapila Wickramanayake, argued that his client was accused of not verifying the ‘certificate of relinquishment of registration.’ Lawyer Mr. Anjana Ratnasiri, asserting that his client had no involvement in the crime, requested bail.

Lawyers for the third suspect argued that none of the National Drug Regulatory Authority officials, responsible for issuing the ‘Certificate of Waiver of Registration,’ have been named as suspects. Magistrate Ms. Lochani Abeywickrama Weerasinghe concurred, stating that the first suspect claimed the certificate was never issued, thus absolving the regulatory authority officials from suspicion.

Mr. Ashoka Serasinghe, the lawyer for the fifth suspect, questioned whether his client was the one who instructed the preparation of the cabinet documents. He raised concerns about only smaller figures being implicated in the case and urged authorities to pursue larger figures. Mr. Serasinghe criticized the differential treatment, stating that law enforcement writes down statements at the houses of the accused elders while the actual culprits remain at large.

President’s counsel Mr. Anil Silva, representing the first suspect, mentioned that when the minister’s letter advising not to pay the money arrived, the payment had already been made. He accused the minister of attempting to save himself by various means and stated that the minister, being fortunate, might pursue legal action, such as filing a fundamental rights case in the Supreme Court or filing a writ petition, or may cease appearing in court.

Lawyer Mr. Jaliya Samarasinghe, representing the first suspect, claimed that although his client initially implicated the minister in the incident, authorities refused to document this statement.

Magistrate Lochani Abeywickrama Weerasinghe stated that if necessary, the first suspect can give a statement to the court, and the CID can receive a further statement. She then asked the first suspect if he would like to give a statement, and the suspect responded affirmatively, expressing a willingness to provide a statement to the CID.

Mr. Jaliya Samarasinghe, the lawyer representing the first suspect, contested the accusations of creating fake documents, asserting that there are no secret documents and false allegations have been made against him. He suggested that a minister could be threatened without resorting to physical harm.

Magistrate Lochani Abeywickrama Weerasinghe indicated that the court believes the CID will properly investigate the incident, regardless of statements made by anyone. Mr. Samarasinghe assured that he would reveal all relevant information when asked about it the next day.

Magistrate Lochani Abeywickrama Weerasinghe then inquired about Mr. Samarasinghe’s perspective on the government’s finances. Mr. Samarasinghe stated that he was relaxed about it and cited a statement allegedly made by Keheliya. He expressed a willingness not to interfere with the investigations and indicated a readiness to pay a fine of Rs. 100 if charged with supplying inferior medicines.

Deputy Solicitor General Miss Lakmini Girihagama highlighted that the loss from this transaction is 1,444 million rupees, constituting a charge under the Public Property Act. If found guilty, she stated that a fine three times the amount of the loss must be paid.

Mr. Samarasinghe responded confidently, stating that he had no problem being sued and claimed to have the financial means to pay a 50 lakh rupees fine. He also asserted the value of his lab, stating it alone is worth 1000 crore rupees. He requested the same privilege of having two lawyers during statements, as was granted to Keheliya.

Magistrate Lochani Abeywickrama Weerasinghe clarified that it was not a matter for the court to decide at that point. After considering the presented facts, the magistrate issued relevant orders, remanding the suspects until the 10th of the next month and directing the CID to report the progress of the investigations on that day.

Representatives from the Attorney General’s office, including Deputy Solicitor General Miss Lakmini Girihagama and Senior Government Counsel Mrs. Heshani Wijesinghe, appeared for the prosecution. On behalf of the suspects, Mr Navin Shanaka Ashoka Serasinghe, along with a group of lawyers, including President’s counsel Roland Perera, Mr M.M. Suhair, and Mr Kalinga Indatissa, appeared.

Source: Lankadeepa

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