Victor Ivan Pocketed Half Of Rāvaya’s Rs 10 Million Fund

June 26, 2015

The founding editor of the Sinhala weekly newspaper ‘Rāvaya‘ and the chairman of the Ravaya Publishers (Guarantee) limited ‘ Victor Ivan has pocketed Rs 5 Million out of a total Rs 12.7 million that had been collected to ‘keep Rāvaya afloat’, Colombo Telegraph learns.

Victor Ivan

Supporters of the newspaper and the positions it had taken from all parts of Sri Lanka and even from overseas responded positively to the call of the financially strapped newspaper.

Responding to a query from Colombo Telegraph, Ivan acknowledged that he had in fact taken Rs 5 Million, but clarified that this was payment for the sale of his 20% stake in the newspaper.

Ravaya, which has been a strong advocate of accountability and transparency, never disclosed in its appeal to supporters that Rs 5 Million of the funds collected would be given to any individual.

Colombo Telegraph learns that Ivan had in fact demanded Rs 20 Million for 40% of his stake in the newspaper. The Rs 5 Million given to him was therefore a part payment.

However, Rāvaya being a Company limited by guarantee and operating as a not-for-profit organization, much like an NGO, does not and cannot have provision for Ivan or anyone else to claim monies that have been collected for a fund of this kind.

The relevant conditions are enshrined in Section 34 of the Companies Act:

“Where the Registrar is satisfied that an association about to be formed as a company limited by guarantee is to be formed for promoting commerce, art, science, religion, charity, sport, or any other useful object, and intends to apply its profits, if any, or other income in promoting its objects, and to prohibit the payment of any dividend to its members.”

Sections 32-34 are the applicable Sections. And here’s the Section that specifically exempts shares, debentures etc from companies limited by guarantee;                            Read More