NatWealth Securities says the Mahapola Fund exceeds Rs.6 bn with efficient management
View(s):In the wake of Sri Lanka university student’s recent allegations of financial misappropriation and irregularities against the management of Mahapola Scholarship Trust Fund and demand of increasing Mahapola bursary, NatWealth Securities Ltd (NWSL), a unit of National Wealth Corporation (NWCL), managers of the fund says that they are managing it efficiently with strength and stability.
A top official of the company in an e-mail communique to Business Times stated that all these allegations were unfounded and the company continues to provide excellent services with integrity, professionalism, ethics together with corporate governance.Gihan Jayatilleke CEO of NWSL noted that their business operations are carried out in compliance with regulatory authorities and internal policies and procedures of the company.
The company ensures a high degree of transparency in business activities and credibility is of paramount importance, when it deals in Government Securities, he said.
NWCL is currently managing the Mahapola Trust Fund, which has grown over a decade from Rs 3 billion to Rs 8.7 billion as at 31.12.2013. The fund value, after the withdrawal/payment of Rs 2.2 billion as scholarships to undergraduates, stood at Rs 6.5 billion.
The current Shareholders’ Funds stands at Rs 830 million for NWSL and Rs 515 million for NWCL and the overall net profit before tax during the first eight months of this year for the NatWealth Group stands at over Rs 400 million.
A leader of the inter University Student Federation told Business Times that if the NWCL is making profits and operating efficiently, then there was no difficulty for the government to increase their scholarship to Rs 5,000 from a mere Rs.2,500 per month.
The President has already given an assurance to grant them Rs. 500,000 bursary and on Friday, in the budget the scholarship was increased to Rs 4,000.
The Union leader disclosed that around 12,000 students have been selected as recipients of the Mahapola Higher Education Scholarship for 2013/14 and the management of the fund is playing with the money allocated for students.
This matter will be brought before the parliament soon, he revealed. A senior government official said that financial misappropriation issues have not been rectified to date although it had been pointed out in Auditor General’s Report as matters of continuous nature.
Responding to a question by the Business Times on complaints of delaying payments to customers and stake holders as well as a major financial irregularity allegedly committed by NWSL, Gihan Jayatilleke CEO of NWSL noted that these entire allegations were false and he has not even heard about such complaints.
“As a matter of fact we provide extensive service to our diversified client base with a high level of integrity. We strive to improve our levels of service and provide more attractive rates to our clients whilst securing the interest of our stakeholders,” he said adding that the company has paid around Rs.600 million as repayments for clients.
He said NatWealth’s primary focus is managing the Mahapola fund which makes up Rs 7 billion out of the Rs 13 billion funds the company manages.