Financial Times

Travel trade personality dies heartbroken over bank crisis
By Quintus Perera
A top travel trade personality recently suffered a fatal heart attack apparently after prolonged worries over the fate of his business hit by the collapse of the failed Pramuka Bank, his friends and colleagues said.

It was Wednesday, August 20, 2003 when the crisis-hit bank opened for partial business and the customers were treated to the infamous "garage" service by the Central Bank. The Pramuka premises at its Kollupitiya head office was closely guarded and the public entertained only through the rear gate.

Each one was screened and each time the padlock was unlocked and one person taken in separately. Among them there were a large number of customers who were rushing to clear their collaterals. I also managed to gain entrance to the "garage". There were many restive and desperate corporate owners and directors clad in full suit - tie and coat and sitting on rusty chairs with the others.

Seated next to me was K. A. Thirugnanam, Chairman Cey-Can Group of Companies. I casually asked him why he came there with a huge bundle of files. He said, "I have acceded to all the formalities and I have come here to recover the collateral. I have to wait two and a half hours. See how we are treated. Why cannot we be treated in a more gentlemanly manner in one of the rooms of the bank? This indifference and carelessness will dissuade borrowers to pay back. Mind you, do you expect company directors to discuss business in a garage like some underworld gangster?"

He had provided his property as collateral for a loan and issued bank guarantees to airlines. The guarantees had lapsed and Pramuka could not issue any guarantees.

Since his deposits were more than the loans taken, he said his collateral should have been released but that was not permitted by the Central Bank. If his collateral was released he could have obtained guarantees from other banks to continue his business, he said.

Thirugnanam waited for more than two and a half hours inside the "garage" and subsequently waited for another 14 months to no avail. His friends said he was deeply depressed as his well-reputed travel company was gradually breaking up due to financial constraints. The travel trade personality on November 14 died of a massive heart attack, which was attributed to hypertension although his friends say the real reason was the suffering he underwent due to the Pramuka Bank crisis.

K C Vignarajah, President, Pramuka Restructuring Committee, said there's no doubt that the rapid decline in his business contributed in a large measure to this young entrepreneur's untimely demise. "It shows the immense suffering by these innocent victims due to the ignorance, corruption and other misdemeanors of the banking and financial sectors and also due to lack of proper regulations."

He said while these are only a few cases that have come to the public notice, there are a large number of Pramuka depositors who continue to suffer in their day-to-day activities and living due to the lapses of this bank.

"I recall that there was a newspaper article about an old lady who had also suffered because her deposit was stuck in the bank. She died two days ago." Vignarajah said it was welcome sign that many philanthropist entrepreneurs are now getting organized to support the revival of the Pramuka Bank as a public duty.

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