GK investors happy: Other depositors say they are being cold-shouldered
View(s):The Government’s speedy resolution of the repayments of Golden Key (GK) depositors has irked depositors from other failed institutions saying the authorities were giving them step-motherly treatment.
Depositors from at least two failed organizations – Central Investment and Finance Ltd (CIFL) and The Finance and Guarantee (Developers) and (Real Estate) companies (F&G) said this week they felt cheated and frustrated over efforts being totally focused on GK without any pronouncements of relief to other, equally troubled groups.
Depositors from these failed companies believe GK may have got the ‘golden’ treatment because of influence and promises to support the government in power. For example, during elections which former President Mahinda Rajapaksa won, some GK depositor groups promised to support the ruling party while the same appears to be emerging in the case of the current government.
“. our depositors’ association doesn’t have influential people like those in GK. But this shouldn’t be the case. All citizens of the country facing a crisis due to the collapse of financial institutions should be treated alike by the Central Bank, other responsible officials and politicians at large,” complained F&G depositor W.K. Ruberu in the letter published elsewhere in the Business Times.
A few weeks ago depositors of the Standard Credit Finance Co Plc also lamented that the Central Bank was delaying to act on already-presented proposals to repay depositors.
This week, K.W. Gunawardena, President, CIFL Depositors’ Association (CIFLDA) said the authorities are moving slowly or not moving at all in the case of their plight while it’s all systems go in the case of GK. In all four cases – Golden Key, F&G, Standard Finance and CIFL – the number of depositors affected was at least 4,000 or more in each of these companies with the repayments dragging for over six years.