Former National Water Supply and Drainage Board (NWSDB) Chairman Nishantha Ranatunga was arrested on Tuesday over allegations that public funds of about Rs. 14.8 million were used to provide him with security guards and drivers, the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) said.

The commission said Ranatunga is accused of causing the NWSDB to pay about Rs. 5.8 million to a private company for two security officers stationed at his private residence, although he was not legally entitled to such services.

He is also accused of employing two drivers for personal use without legal entitlement. According to the commission, he arranged payments of about Rs. 9 million for this from funds allocated to water supply project contracts carried out by the Board.

The commission said the alleged actions caused a financial loss of about Rs. 14.8 million to the government and gave Ranatunga unlawful personal benefits.

CIABOC investigating officers arrested him at around 1.30 p.m. and produced him before the Colombo Chief Magistrate’s Court the same day. Chief Magistrate Asanga S. Bodaragama ordered his release on cash bail of Rs. 75,000 and two personal sureties of Rs. 1 million each. The court also imposed an overseas travel ban on him.

Background

The NWSDB is the state institution responsible for piped water supply and sewerage services in much of the country. It carries out water supply projects through contractors, and those contracts are funded from the Board’s allocations.

CIABOC is the independent body that investigates allegations of bribery and corruption and can bring cases against public officials in court. Suspects are normally produced before a magistrate after arrest, and the court decides whether they are held in remand or released on bail.

An arrest and a bail order are not findings of guilt. The allegations against Ranatunga have not been tested in court, and the case will proceed through the legal process. The commission has not said when the matter will next be heard.

What it means

The allegations concern money that the commission says came from funds set aside for water supply project contracts. Costs of that kind are ultimately met from public money, which is why spending on staff and services for senior officials is open to scrutiny.

For members of the public, the case shows the type of complaint that CIABOC can investigate: the use of state institution funds for the private benefit of an office holder. Anyone with information on such misuse of public funds can report it to the commission through its official channels.