The Police Financial Crimes Investigation Division has launched an investigation into former Securities and Exchange Commission Chairman Nalaka Godahewa, over a transfer of five million rupees at the SEC, during his tenure.

A former director general of the SEC and another individual were taken into custody on Friday and remanded, in connection with this transaction.

The Police Media Spokesperson says the transaction in question occurred in August 2013 at the Securities and Exchange Commission, the regulatory authority of the Colombo Stock Exchange.

The Sunday Times newspaper reported on  December 6, that the sum of five million rupees had been transferred to the Tharunyata Hetak Organisation.

According to investigations, The Sunday Times reports, the money said to be allocated for an awareness programme among rural youth on investing in the stock market, was transferred to a third party bank account in the United States as payment for a Hip Hop dance group that performed at the Carlton Super Sevens Rugby Tournament last year.