Amidst a flurry of activity post-LMSL, the Securities and Exchange Commission (SEC) asked John Keells Holdings (JKH) to inform its shareholders on the financial impact of the Supreme Court judgment on its bunkering arm while seeking the advice from the Attorney General (AG) on how to comply with the court verdict.

Elsewhere, the Commission to Investigate Allegations of Bribery or Corruption said its probe into the LMSL issue based on the Wijedasa Rajapaksa-led report of the Parliamentary Committee on Public Enterprises (COPE) was progressing. “That probe has been on and will conclude soon,” its Chairman Justice Ameer Ismail said. The SEC in a statement on Thursday said it has asked JKH “to duly inform the investing public with regard to the financial impact to the company consequent to the judgment”.

It said information which is reasonably expected to have a material effect on market activity and the price of a listed security is required to be disclosed in a timely manner, accurately and completely in order to facilitate investors to make a considered investment decision with respect to listed securities. “The responsibility for such disclosures lie with the Board of Directors of the listed company and failure to provide such information may result in the commission of an offence in terms of the SEC Act.”
SEC officials said they expect a response from the AG on the complaince issue next week. In other developments, LMSL prepared to vacate the oil tank facility on Wednesday as the Sri Lanka Ports Authority finalised a joint arrangement with eight companies that have bunkering licences, including LMSL, for common use of the facility under an ‘Oil Bank’ operation.

The Ceylon Chamber of Commerce (CCC) came under further scrunity this week over the way it was handling the JKH/LMSL affair in the context of the company being a chamber member and JKH Chairman Susantha Ratnayake being the chamber’s Deputy Vice Chairman. At least two heads of well-known member-firms, who declined to be named, said the judgment must be respected. “The chamber must act otherwise it would be seen as a rich man’s club and old boys network,” one CEO said.

The chamber has said it was examining the judgment but any possible action was an internal matter and not for public dissemination. Mohan Mendis, an exporter, writing as a member of the public criticised the Colombo business community, and said: “Not even a brief statement has been forthcoming from a sector who would normally be very critical of violations of corporate governance and breaches in codes of ethics by government and in other quarters.” Meanwhile Treasury Secretary P.B. Jayasundera, severely criticised in the judgement, briefed the cabinet on the November budget and cost-cutting measures.