Former SLBFE Chairman Hilme remanded over alleged tender fraud

Former Chairman of the Sri Lanka Bureau of Foreign Employment (SLBFE), A. A. M. Hilme (also known as Mohamed Hilme), has been ordered to be remanded until December 9, 2025.

The order was issued today (November 25) by Colombo Chief Magistrate Asanga S. Bodaragama after considering submissions from the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) and the defence lawyers.

Hilme was arrested by CIABOC in connection with a corruption investigation linked to a procurement process in January 2024. The case concerns the selection of an external institution to conduct a training programme for officers of the Sri Lanka Bureau of Foreign Employment.

Investigating officers told the court that all procurement arrangements had been prepared in January 2024 to select an institution to provide training on external activities to SLBFE officials. They stated that during this process, Hilme, who was then the Chairman, had pressured the former Administrative and Human Resources Officer to prepare a report supporting the selection of JSF Holdings during the tender process.

Officials also noted that although the Bureau had a separate procurement division for handling such work, the suspect had pressured staff to carry out the procurement through the Human Resources Division instead. Investigators further revealed that after the deadline for accepting bids had passed, JSF Holdings submitted its bid late, and the tender receiving committee initially rejected it. However, investigations showed that Hilme had pressured committee members to reconsider and accept the rejected bid.

According to the investigation, JSF Holdings later received Rs. 5,301,200 in state funds. A substantial portion of this amount, Rs. 4,300,000 was allegedly used for the personal benefit of Gardi Hewage Don Shan Yahampath Gunaratne, the first suspect in the case. Investigating officers stated that Shan Yahampath, who had represented JSF Holdings in the tender process, was the personal secretary of former Minister Manusha Nanayakkara. He has already been produced before court and released.

Both Hilme and Yahampath have been charged with conspiracy and aiding and abetting the misappropriation of state funds under the Offences Against Public Property Act. However, CIABOC officers told the court that investigations had not indicated that Hilme received any bribe, which is why he is being charged with aiding and abetting, while the first suspect is charged directly under the Act.

CIABOC officers further informed the court that they still need to record additional statements from SLBFE officers and that releasing Hilme on bail at this stage could obstruct the investigation. Therefore, they requested that the Magistrate order his remand.

The defence argued that Hilme had fully cooperated with the investigation, that no official had lodged a complaint alleging interference, and that there was no documentation indicating he had pressured staff. His lawyer also stated that Hilme had not received any financial benefit, had been receiving medical treatment in Singapore since 2019, was involved in business activities, and had supported the investigation even while abroad. He requested that Hilme be granted bail, saying there were no legal grounds to refuse it under the Bail Act.

The Magistrate then questioned why CIABOC was filing aiding-and-abetting charges under the Public Property Act against Hilme while the first suspect had been charged directly. CIABOC responded that since no bribe was found to have been taken by Hilme, they would proceed by presenting facts indicating he had aided and abetted the offence.

After reviewing all submissions, the Magistrate ruled that because Hilme is charged under the Public Property Act, the court can grant bail only if exceptional reasons are demonstrated. He stated that the defence arguments, Hilme’s cooperation, medical condition, and business activities did not constitute exceptional grounds and therefore rejected the bail request.

Hilme was ordered to be remanded until December 9, 2025.