Preliminary investigations into Sathosa rice fraud completed

The Presidential Commission of Inquiry probing large-scale corruption and fraud (PRECIFAC) says that preliminary investigations have been completed regarding alleged fraud during the import of rice by Sathosa under the previous government. 

The commission states that investigations have uncovered that fraud amounting to millions of rupees have taken place when importing rice stocks which had been carried out contrary to cabinet approval and straying from proper procedures. 

Following preliminary inquiries, more than 400,000kg of imported rice unsuitable for human consumption stored at several locations in the country have been discovered, the commission said.

Regional health officials have already been instructed to instigate legal action under the Food Act with regard to the rice stocks. 

Steps have been taken to remove 6 top officials of the the state-owned wholesale cooperative network ‘Lanka Sathosa’ over the financial fraud while investigations are ongoing regarding more individuals involved in the transaction.

A decision has also been taken to call for public evidence regarding the fraud in the coming days.