Defence Secretary commences investigation

The CID has commenced an investigation in to a letter of credit given by the state institution, REEL, to a Malaysian company in an illegal manner to build 2005 houses during Dinesh Gunawardena’s tenure as Urban Development Minister. The letter of credit had been to the value of US$ 550,000.

The Malaysian Company had taken a 90% loan on Dinesh’s letter of credit and has not yet built a single house in Sri Lanka with the money.

It is also learnt that the Malaysian Company currently has no contact with REEL.

Former Chairman of REEL, Bennet Corray had reportedly aided in this illegal transaction. Cooray is currently the deputy high commissioner for Sri Lanka in Indonesia. 

  Meanwhile, the Financial Manager at REEL it is learnt had fraudulently transferred a sum of Rs. 55 million belonging to the institution to his wife’s account. The individual who was jailed for the offence had recently died in jail.

Defence Secretary Gotabhaya Rajapaksa has ordered the CID to investigate in to all these alleged irregularities that had taken place at REEL. After the Urban Development Authority was assigned to the Defence Secretary, the REEL institution is also under his purview.