Thursday, May 18, 2017

Purchase money paid to shadowy offshore company

Rajapaksa govt.’s controversial MiG deal – Part II

By C.A. Chandraprema- 

The other key question in relation to the purchase and overhaul of MiG aircraft in 2006 was that the payment had not been made to the supplier - the Ukrainian state owned company UKRINMASH, but to a front company by the name of Bellimisa Holdings Ltd. In 2000 when the Chandrika Kumaratunga government bought six MiG-27s and one MiG-23UB trainer, the supplier was DS Alliance of Singapore. However DS Alliance was a middleman and all the MiG aircraft purchased in 2000 were actually supplied by UKRINMASH the manufacturers of MiG planes in Ukraine. The policy of the Rajapaksa government was to eliminate the middleman so they directly approached UKRINMASH. In the ‘letter of offer’ handed over by UKRINMASH to the Ministry of Defence on 6 February 2006, it was specifically stated that this offer for the supply and overhaul of aircraft was being made in conjunction with a financier providing financing to the manufacturer and that the payment should be made to the financier.