SC says courts doing the work of the Central Bank
When the Supreme Court on Monday took up the matter of Finance and Guarantee Real Estate and Property Developers Companies (F&G PDL & RECL), it was observed by court that because the Central Bank (CB) is not performing its duties, the courts have been assigned this onerous task, too.
The case was heard by a bench comprising Justices Priyasath Dep, Upali Abeyratne and Anil Goonaratne.
Earlier counsel for the petitioner – Independent Depositors Association (IDA) objected to the appointment of Lionel Katuwawala as a director by the Supreme Court as the notice for his appointment was only communicated to the Attorney General and not to the other parties.
Counsel also objected to the nomination of Bandara Ganegala giving reasons for his objection.
Counsel for the IDA which comprises nearly 2,200 depositors, suggested that Prof. W. Kumarapperuma and Kingsley Mendis be appointed as directors, objecting to the appointment of Mr. Ganegala as he has previously sat on the Trust Board of the company for five months and received a remuneration of Rs. 120,000 while the depositors did not receive much benefit except that he has submitted a detailed report. Counsel also suggested the name of Roshan Fernando as a director.
It was revealed in court that in the matter of appointing Mr. Katuwawala, he was appointed with the only notice to the Attorney General and that the other parties were not noticed on this to make any objections if any with regard to his appointment.
Counsel submitted to Court that Mr. Katuwawala has also served on the Trust Board of the company previously and therefore the members are in a quandary as to how he is being reappointed by the court.
However Counsel said the depositors would ‘respectfully’ bow to the SC order made when it appointed directors earlier.
Meanwhile, depositor Brigadier Ranjan De Silva made an application to court giving some names to be appointed as directors which counsel for IDA vehemently objected submitting that Brig de Silva himself is not a fit and proper person to recommend professionals since during his career in the Sri Lanka Army some discrepancies had taken place for which he was responsible.
Though at the previous hearing the court ordered auditors S.J.M.S. Associates to take the files from the previous directors and hand them over to the new directors, the court found that the order has not been carried out. Therefore court ordered the auditors to hand over the files to the new directors and for them to be present in court on the next date of hearing to explain the matter.
Court also directed that parties concerned to nominate names to consider to be appointed as director. Proceedings were postponed to November 22.
Senior attorney Ian J Fernando with Ms. Sumudu Ratnayake AAL appeared for the 5th and 6th Petitioners (IAD) Deputy Solicitor General Parinda Ranasinghe appeared for the Attorney General while Nadi Perera appeared for the Central Bank.
Earlier in the day, a group of depositors representing their respective associations carried out a protest demonstration in front of the entrance to the Supreme Court over the F&G issue.
PM promises to resolve UB Finance issue
Prime Minister Ranil Wickremesinghe has promised to resolve the UB Finance issue involving its former depositors (when it was named as F&G).
He was responding , on Tuesday in Parliament, to a question raised by JVP Leader Anura Kumara Dissanayake on an earlier occasion.
The Prime Minister acknowledged that he had been informed that several persons had committed suicide and noted that instructions have gone out to provide relief to the depositors soon.