gTwo high profile businessmen and a former senior state official are now in hot water as the Police Financial Crimes Investigations Division (FCID) has concluded initial investigations into a large-scale financial fraud alleged to have taken place at Lanka Hospitals.
"We have forwarded our findings to the Attorney General's Department.
Our future course of action will be based on the recommendations of the Attorney General.
The suspects will be arrested and prosecuted after instructions from the Attorney General's Department," an authoritative Police source told the Daily News yesterday.
The Police FCID received a complaint that a large-scale financial fraud had taken place when the shares of Lanka Hospital were sold to an Indian Company. Allegations of stock
market manipulation were leveled against the two businessmen who had a strong presence in a wide range of businesses.
The investigation into the shares of Lanka Hospitals was based on a complaint lodged by Dr. Neomal Alexander Perera, a cancer specialist attached to the same institution.
The FCID also carried out several investigations into a number of irregularities that had taken place at the CSE between 2009 and 2014, including insider trading and market manipulation.
The Police unit recorded lengthy statements from several businessmen and senior government officials as part of the investigations.
Meanwhile, in a separate development, Police sources said on Friday that the FCID was to arrest Nalaka Godahewa, former Chairman of the Securities and Exchange Commission (SEC), under charges pertaining to financial irregularities.
Godahewa was the Chairman of the SEC during the period under question.
It was later learnt that Godahewa, on Saturday, informed the Police through his lawyers that he would appear before the FCID soon.
As part of the same investigation involving Godahewa, two individuals, namely Dhammika Perera and Ronnie Ibrahim were arrested under instructions from the Attorney General.
Perera served as the Deputy Director General of the SEC from September 2012.