SL’s stockmarket crime buster objects to new CLDC CEO
View(s):Sri Lanka’s top stockmarket crime buster has raised issue over the appointment of the new Chief Exective Officer to Colombo Land and Development Company (CLDC) citing ‘serious conflicts of interest’ issues. In a letter to Securities and Exchange Commission (SEC) Chairman Thilak Karunaratne, K. Vignarajah says that Vasula Premawardhana, who has been appointed as the CEO of CLDC, is also a director of several companies in the George Steuarts Group, Citrus Leisure Plc, reportedly owned/controlled by Dilith Jayaweera through Kalpitiya Beach Resort Ltd.
“Thus, it seems that the new CEO is connected to companies owned or controlled by Mr. Jayaweera. Therefore, such appointment may conflict with the best interest of CLDC and its stakeholders,” the letter says.
“It would be tantamount to a fundamental breach of good corporate governance, for a CEO to have such conflicts. Was he selected by an independent, competitive board?” Mr. Vignarajah, a shareholder at CLDC, says that all directors of public listed companies owe a fiduciary duty toward the company and its stakeholders. They must prevent the opportunity for fraud and malpractices. “You (SEC chairman) have the power and authority to ensure that PLCs and its stakeholders’ rights are safeguarded. It is the duty of directors to ensure that the shareholders and the investing public are given maximum data and information which would enable them to make well informed decisions of paramount importance to protect their hard earning savings and livelihood,” the letter added.
He said that several advertisements displayed on the construction site of the new section of the Liberty Plaza Complex states that the construction was carried out by George Steuarts Engineering Ltd which is owned/controlled by Mr. Jayaweera. “Was this duly registered in the company’s Interest Register? We are concerned as shareholders and as members of the public, whether there would be serious impediments to the interest of CLDC and its stakeholders,” he said.