Desperate UB Finance depositors say Central Bank has failed to deliver on its promises
The depositors of another failed finance company – UB Finance – say they are undergoing untold miseries for the last eight years which includes 48 suicides. They put the blame on the Central Bank (CB) which they allege has at every turn deceived and mislead the depositors on the pretext of helping them. These depositors led by UB Finance Depositors Association (UBFDA) accuses the CB of being unreliable as it changes its pledges day by day and that meetings are recorded the way CB wants and not the actual proceedings. Therefore the UBFDA has requested the Governor of the Central Bank to allow them to record the proceedings of all these meetings that would be held with the CB.
The UBFDA says that CB as far back as on the 31 December 2013 had directed UB directors to invest the deposits in the share market but since then they have only the share certificate and no returns. At the meeting the UBFDA had with CB officials and the UBF on 15 March 2016 they have indicated that they have lost confidence in investing their deposits in the share market and as no outcome has resulted they have suggested that 50 per cent of their deposits to be paid and the balance 50 per cent to be kept in the company. The CB has undertaken to find a viable solution within three months as the CB has mentioned that they have got some investors in hand, and some solutions could be reached by three months.
Though five months have passed now, nothing has been heard from the CB. In a letter dated 12 April 2016 the CB repeats that the deposits would be invested in the share market. UB Finance was earlier F&G Ltd and in 2008 the Union Bank took over the company with all the assets transferred to the newly formed company UB Finance. There are 2,697 depositors and the total amount involved is Rs. 1,863 million. Depositors are now demanding their money back as early as possible and in this regard they held a protest in front of the Colombo Fort railway station recently saying these protests will continue till they receive their money back.