The Central Bank (CB) this week asked all directors and office bearers of the Golden Key (GK) Credit Card Co to disclose the manner in which the assets of the company have been dealt with.
This action has been taken in accordance with the Supreme Court directive, following interim orders issued by the court considering several fundamental rights applications of 23 depositors. Deputy Solicitor General Sarath Jayamanne told the The Sunday Times FT that the Central Bank has been directed to prepare a list of GK, its subsidiaries and its directors.
In a newspaper advertisement, the CB says that GK, its Chairman Lalith Kotelawala and directors and the Ceylinco Consolidated (Private) Ltd and their workers and agents have been barred by the Supreme Court from selling, advertising for sale or otherwise disposing of, or taking any further steps and actions to alienate the properties belonging to them. The company and its directors have been prevented from operating or closing any foreign accounts maintained by them or transferring or disposing of any money in such bank accounts.
GK, Ceylinco Consolidated (Private) Ltd and its Directors have also been barred from entering into any mergers with other third parties in accordance with the Supreme Court ruling. The FR case against GK will be taken up for hearing on April 27. The CB will seek clarification from court as to whether it should file a case before the District Court to liquidate the assets of GK. The CB is to take control of all GK companies in Sri Lanka and abroad, freeze company properties and directors personal properties and use them to pay depositors following directives of the Supreme Court. It has received information and evidence to prove that the company is insolvent and has exceeded the deposit mobilizing limits stipulated by the Finance Act, a senior official of the Central Bank said. The management has window-dressed the accounts, he added.
Kotelawala and several directors and suspects were further remanded till April 23 when the case regarding the misappropriation of Rs. 26 billion from GK was taken up before the Additional District Judge and Chief Magistrate Mount Lavinia, Harsha Sethunga on Wednesday.
Meanwhile depositors of another failed Ceylinco Group company, F&G Ltd organized a protest march for the third time in Colombo against the non-payment of interest on their investments. Around 200 depositors met at the Vihara Maha Devi Park and marched to the company head office at Marcus Fernando Road in Colombo 07.
Depositors told The Sunday Times FT that they have not received the interest for their deposits since last January. They urged the directors of the company to pay their due interest before the upcoming Sinhala and Hindu New year. Depositors said they intend to file a FR petition against the directors of the company. Nearly 15,000 persons have deposited their money in the company during the past few years. The total amount deposited in the company amounts to nearly Rs. 13 billion.
Okanda Finance
In another development relating to troubled non-registered finance companies, the Monetary Board of the Central Bank this week rejected the application of Okanda Finance Ltd for its registration under the Finance Companies Act as it had failed comply with the necessary requirements.
Issuing a notice to the public the Central Bank says that its registration as a finance company would be detrimental to the interests of its depositors and creditors.
The company has also been unable to take corrective measures to address serious deficiencies that were revealed on the evaluation of the application submitted by the management of Okanda Finance for registration. The Central Bank has directed the company to repay the deposits accepted from the public. The permission has been granted to them to sell their assets for this purpose. |
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