Finance Minister to mediate between GK company directors and disgruntled depositors
The new government is to intervene in the settlement of the Golden Key repayment fiasco just as disgruntled depositors of one of the aggrieved associations and GK company directors are at loggerheads levelling allegations against each other.
Finance Minister Ravi Karunanayake has convened a meeting of GK directors and representatives of three GK depositors associations to discuss their grievances and find some redress tomorrow, official sources told Business Times.
Lalith Kotelawala, deposed chairman of the now defunct Ceylinco Group, last week appeared on ITN TV and blamed the previous Rajapaksa regime of plundering his wealth including the Hyatt Hotel and in the process preventing the repayments due to disgruntled GK depositors.
He also made a statement claiming that a large sum of money deposited in GK was black money.
In this backdrop, perturbed GK depositors on Tuesday staged a protest in front of the Golden Key office building at R.A. De Mel Mawatha, Colombo urging the authorities to revoke the Central Bank’s action plan for repayment and remove the court-appointed GK company board of directors for allegedly committing corruption, irregularities and mismanagement of company assets.
Marco Perera, Convener of the Association of the Voice of GK Depositors for Justice, said some members of the Board of Directors, especially Dushyanthi Hapugoda, are spending lavishly the money collected from the sale of assets of the GK and accused them of taking massive commissions in land deals.
He told the Business Times that he has documents to prove these allegations and that he has lodged a complaint against those corrupt directors at the Bribery or Corruption Investigation Commission.
He alleged that Ms Hapugoda is drawing a monthly allowance of Rs.130,000 including Rs.25,000 as directors fee, Rs. 60,000 vehicle hiring charges, Rs.20,000 fuel reimbursement, and Rs.25,000 ex gratia payment. In addition she is receiving a fee of Rs. 35,000 as Executive Director of GK Consumer Durables (Pvt) Ltd. The company’s salary bill is running up to Rs. 600,000 per month, he said, adding that in spite of all these spending, poor depositors are being ill treated by the staff starting from the security guard and the person manning the reception desk to GK directors. Several disgruntled depositors told the Business Times the person manning the reception desk is treating them in a very rude manner and not allowing them even to go into the office and meet officials of the GK to convey their grievances.
Mr. Perera also alleged that the GK has paid a sum of around Rs.10 million among 462 depositors with deposits up to Rs.1 million as the 4th Phase of the payment plan without approval of the Supreme Court.
Replying to these allegations, Ms. Hapugoda said that it is not necessary for the company to get approval from the Supreme Court to pay depositors in accordance with the payment plan approved by the court. They obtained the Monetary Board approval to make these payments.
She noted that the employees of the company will not work without a salary and she is getting a fee entitled to her and she had to pay lawyers fee for GK court cases out of her pocket.
Ms. Hapugoda revealed that all the GK assets were unearthed due to her efforts and that Mr. Kotelawala is using Mr. Perera to disrupt the functions of GK.
She categorically stated that she has not robbed a cent of GK depositors’ money and never received any commissions from land and asset sales.
Revenue from the sale of assets stood at Rs. 46.48 million from the 1st of April to 31st December 2014 and the expenditure was Rs. 25 million, she said, denying allegations of corruption or malpractice.
The GK has already spent Rs.599 million to pay 6833 depositors under the 1st, 2nd, 3rd and 4th phases of the payment plan.