CIFL depositors vow to launch a fast- unto-death campaign
View(s):Close on the heels of the Central Bank’s action to merge finance companies to consolidate the industry, disgruntled depositors of failed Central Investment and Finance Company PLC (CIFL) during the week continued their sathyagraha campaign launched on Monday to find some redress to their grievances.
They vowed to launch a fast-unto-death campaign if the authorities fail to hear their grievances ignoring their pleas.
Ajithan Abayaratne, spokesman of CIFL Deposit Holders Association told the Business Times that a thorough audit of the Central Bank had revealed major financial misappropriation by a group of corrupt persons who handled the functions of the company. But they were
Pic by M.D. Nissanka shows UNP MP Harsha de Silva with CIFL depositors.
allowed to go scot-free due to lapses and professional negligence of those who were responsible for monitoring of non banking financial institutions. He alleged that CIFL had misused the depositor’s money and the Central Bank should resurrect the company without making repayment plans aimed at converting their money to shares.
The depositors have handed over an appeal to the President to intervene into this matter and issue a directive to the Central Bank to recover the funds from company directors who were responsible for siphoning off depositors money and sell their assets to raise the liquidity position of the company, grant a bail-out package under the liquidity support scheme and resume the business to repay the money of depositors by merging with another viable entity.
Addressing depositors, economic expert and parliamentarian Dr. Harsha de Silva blamed the Central Bank for failing in its regulatory duties.
The collapse of financial institutions and the recent CIFL crisis shows that the Central Bank is neglecting its duty, he told a gathering of disgruntled CIFL depositors in Colombo this week adding that some 4,000 depositors have been left stranded after CIFL was found to be in deep financial trouble.
“Somebody has to take responsibility – if the Central Bank is registering these companies, who are to blame?” he asked.
He noted that there should be some undertaking by the CB to protect depositors during the process of merging two financial entities.
Who are they trying to protect? Are they trying to protect the owners of finance companies by bailing them out?” he asked.
Dr. de Silva further noted that troubled finance companies are headed by people with strong links to the Government, raising more questions over the Central Bank’s newly-unveiled plans.
Some financially weak finance companies continue to take deposits and even floated an IPO. “The Central Bank is aware of these issues. The Central Bank cannot turn a blind eye to these problems. They are answerable to thousands of depositors who cannot get their money back,” he added.