POLITICAL

Former Minister Johnston Arrested: A New Legal Precedent Where False Declarations Become a Crime Answerable by All

By ColomboWire Political Desk

The arrest and remand of former Minister Johnston Fernando and his youngest son, Jerome Kenneth Fernando, may well mark a decisive inflection point in Sri Lanka’s long and troubled relationship with corruption, impunity, and selective law enforcement. What initially appeared to be yet another investigation into the misuse of state property has now evolved into something far more consequential: the crystallisation of false declaration as a prosecutable offence with universal applicability—irrespective of political status, profession, or social standing.

On Monday (05), officers of the Financial Crimes Investigation Division (FCID) arrested the former minister and his son following an extended investigation into the alleged misuse of a Lanka Sathosa vehicle during Fernando’s tenure as Minister of Co-operatives and Internal Trade. The Wattala Magistrate’s Court subsequently remanded both suspects until January 09, signalling judicial seriousness and a departure from the culture of leniency that has historically shielded politically connected individuals.

Beyond a Sathosa Lorry: The Real Gravity of the Case

At its surface, the case revolves around the alleged misuse of a Sathosa lorry and other state-owned resources, reportedly resulting in a significant financial loss to the state. Investigators allege that the vehicle was deployed for non-official, private purposes during Fernando’s ministerial tenure—an offence that, on its own, is neither novel nor unprecedented in Sri Lanka’s political landscape.

What elevates this case, however, is its wider factual matrix. Investigations have expanded into allegations of deliberate false declarations, including misrepresentations allegedly made to obtain an alcohol manufacturing licence and other regulatory approvals. These are not clerical errors or minor omissions. They are allegations of knowingly submitting untruthful information to the state in order to secure economic advantage.

This is where the Johnston Fernando case breaks new ground.

False Declaration as an Independent, Punishable Offence

For decades, false declarations—whether of assets, liabilities, imports, expenses, or official travel—have existed in a grey zone. They were often treated as technical violations, administrative oversights, or matters to be corrected quietly, rather than criminal acts warranting arrest, remand, and prosecution.

The current investigation changes that paradigm.

By treating deliberate false declaration as an offence that justifies arrest and custodial remand, law enforcement authorities have implicitly established a principle with sweeping implications: any individual who knowingly misrepresents facts to the state for personal or political gain may now be criminally answerable.

This principle, if applied consistently, has the potential to reshape Sri Lanka’s governance culture more profoundly than any single corruption prosecution in recent memory.

The Ripple Effect Across Sectors

The implications extend far beyond one former minister and his family.

Consider the import sector. For years, there have been persistent allegations—supported by anecdotal evidence, customs data anomalies, and trade discrepancies—that some importers deliberately under-declare the value of goods brought into the country. This is often done to reduce import duties, manipulate letters of credit issued by banks, and evade taxes. Containers allegedly arrive with invoices bearing values far below market rates, while the balance is settled offshore or through informal financial channels.

Under the emerging precedent, such conduct would no longer be a mere customs irregularity. It would constitute a criminal false declaration, opening the door to arrests, asset seizures, and prosecutions.

The same logic applies to vehicle imports. Sri Lanka has long grappled with scandals involving vehicles imported in dismantled parts, welded together locally, and then sold as legitimate units—often accompanied by falsified documentation and manipulated valuation reports. If accounts and declarations submitted to regulators, banks, and tax authorities are proven to be knowingly false, those responsible could now face criminal liability.

Asset Declarations: A Legal Minefield Awaits

Perhaps the most politically sensitive fallout concerns declarations of assets and liabilities by politicians, senior civil servants, and professionals.

Successive governments have mandated asset declarations as a transparency mechanism. Yet enforcement has been notoriously weak. Declarations are filed, sealed, and forgotten—rarely audited, almost never challenged.

The Johnston Fernando case reopens this entire question.

If deliberate false declaration is now a prosecutable offence, then asset declarations that materially misrepresent wealth, overseas holdings, properties, or income streams may constitute criminal conduct. This would apply not only to former ministers but also to current opposition politicians, senior bureaucrats, heads of state institutions, and even professionals such as lawyers and accountants who are legally bound to submit truthful financial disclosures.

For decades, the public has asked a simple question: How did certain politicians accumulate vast overseas properties, luxury apartments in London, estates in Australia, or unexplained offshore accounts, on public sector salaries? The law may finally be catching up with that question.

Official Trips or Private Privilege?

Another dimension now coming under scrutiny is the declaration of foreign travel.

There is a well-documented pattern where private trips—academic visits, personal engagements, or family travel—have been declared as “official visits” in order to access public funds, diplomatic privileges, or state-funded travel arrangements.

One frequently cited example is the former Foreign Minister Ali Sabri’s visit to Cambridge University, which was declared as an official engagement despite being centred on delivering a lecture. Whether such declarations meet the legal threshold of deliberate misrepresentation is a question that investigators may now be compelled to examine.

If proven to be false declarations, such cases could trigger criminal liability, reimbursement of public funds, and broader investigations into travel expenses claimed by ministers over multiple administrations.

Financial Markets and Corporate Declarations

The precedent may also reverberate through the Colombo Stock Exchange (CSE) and the corporate sector.

Listed companies, directors, and major shareholders are required to make accurate disclosures of assets, liabilities, related-party transactions, and beneficial ownership. Market analysts have long suspected that certain declarations may not fully reflect economic reality.

If false declarations are treated as criminal acts rather than regulatory breaches, the enforcement landscape for corporate governance in Sri Lanka will fundamentally change. Directors and executives could face personal liability, not just fines or censures.

A Culture of Impunity Under Threat

For nearly 70 years since independence, Sri Lanka has been haunted by a persistent belief: that political power insulates individuals from legal consequence. Corruption scandals came and went; commissions were appointed and reports shelved; public outrage flared and faded.

What distinguishes the present moment is not merely the arrest of a former minister—but the legal framing of the allegations.

This is not about political rivalry or symbolic accountability. It is about redefining the relationship between truth, declaration, and the law.

ColomboWire’s Call to the Public

Against this backdrop, ColomboWire believes the moment demands public participation.

If citizens possess credible information regarding deliberate false declarations—whether by businesspersons, politicians, senior officials, or professionals—such information must not remain buried in whispers and rumours. This includes, but is not limited to:

• Under-declaration of import values

• Misuse of public funds or state property

• False asset and liability declarations

• Misrepresentation of official travel

• Offshore accounts, shell companies, and unexplained foreign assets

For decades, rumours have circulated about Sri Lankan political figures acquiring luxury properties abroad, diverting cultural or public funds overseas, and maintaining accounts in tax havens such as the Virgin Islands. International investigative journalism has already exposed some of these networks. Domestic accountability must now follow.

ColomboWire is actively compiling, verifying, and analysing information provided by the public. Where evidence supports it, we will expose wrongdoing in the public interest—irrespective of party, ideology, or status.

A Test of Consistency

Ultimately, the Johnston Fernando case will be judged not by its headlines but by its aftermath.

If the principle of criminal liability for false declaration is applied selectively, it will collapse under accusations of political targeting. But if applied consistently—across parties, professions, and power structures—it could represent one of the most significant rule-of-law advances in Sri Lanka’s post-independence history.

The law has spoken. The courts have acted. The precedent has been set.

The only remaining question is whether Sri Lanka has the institutional courage to follow it through.