Immunity from prosecution for new GK Directors worries depositors
Immunity from any prosecution granted to newly appointed Directors of the Golden Key Credit Card Special Purpose Vehicle (GK-SPV) under the action plan devised by Central Bank with the consent of Supreme Court, is worrying many depositors.
In a letter sent to President Mahinda Rajapaksa recently the GK Women Depositors Joint Organisation says that according to the action plan, the directors of this SPV and any others who succeed them shall be indemnified against any claims, charges, actions or damages made by any person while undertaking the revival and management of GK.
While the chairman of the SPV is paid a monthly fee of Rs. 100,000, each director is entitled to a monthly payment of Rs.25,000 each and immune from any prosecution. The new association has informed the president that this plan approved by the Supreme Court has given immunity from liability so that no charges could be made against these directors, which includes depositors, of misappropriation or other malpractice.
They noted that the SPV directors were taking measures without transparency and the depositors have lost confidence on them. A sum of Rs 1.5 million is being spent monthly on these directors during the past nine months, they revealed, urging the President to remove this clause immediately so that depositors can challenge their wrong doings if any.
On February 29, 2013, the Supreme Court made a directive that these directors appointed by the court will be immune and not be held liable for any acts or omissions carried out in furtherance of the directions of this court and in respect of liability statuary or otherwise. However the Central Bank can take action against them.
According to several legal experts such immunity is controversial and not in keeping with the rule of law, since no one should be above the law. Only the President they said is granted constitutional immunity from prosecution, and that too only while he holds office as President.
But another senior lawyer said that even if there was such a clause in the bail-out action plan, he believed depositors can go to courts against any new GK director found engaging in malpractices or financial misappropriations.