While former Sri Lankan Minister Johnston Fernando faces a travel ban amid an investigation into the illegal assembly and unregistered status of a luxury BMW found in the Hilton Hotel parking lot in Colombo, new revelations suggest that this is only the tip of the iceberg in a growing scandal surrounding his political career.
Reports have surfaced linking Fernando to an insider trading scheme during his tenure as a Cabinet Minister.
In 2021, it is alleged that Fernando strategically positioned a trusted associate as a Director of the Colombo Stock Exchange (CSE). This individual’s role, according to the accusations, was to manipulate the stock market by artificially inflating stock prices of targeted companies before orchestrating strategic sell-offs, benefiting a select group of stakeholders.
The scheme was designed to raise stock prices, enabling the involved parties to profit substantially. However, in a surprising twist, Fernando’s appointee allegedly took advantage of the situation for personal gain, inflating the stock value of a company in which he had a vested interest. The individual is said to have sold the company at its inflated price, pocketing significant profits without Minister Fernando’s knowledge.
When Fernando became aware that his appointee had profited handsomely without sharing the spoils, tensions escalated.
Frustrated by being excluded from the financial windfall, Minister Fernando reportedly demanded his appointee’s immediate resignation as the Director from the CSE.
The insider trading allegations add to the growing legal troubles Minister Fernando faces, as authorities dig deeper into his potential involvement in financial malpractices.
His connection to both the illegal vehicle assembly and stock manipulation paints a troubling picture of corruption during his time in power, whilst ongoing investigations are bound to unearth several more.
These developments are part of a larger wave of corruption probes in Sri Lanka, where high-profile political figures are increasingly coming under scrutiny for financial misconduct. Investigators are expected to delve further into the relationship between Minister Fernando and his associates, looking into other potentially illicit activities that occurred during his political career.
If the allegations prove to be true, Minister Fernando could face significant legal consequences, further tainting his political legacy.
As the investigation continues, the public remains riveted by the unfolding drama, which exposes the underbelly of power and financial influence in Sri Lanka’s political and corporate landscape.
