GK saga nears the end after a decade of depositor sufferings
View(s):The last lot in the official list of disgruntled depositors of Golden Key Credit Card Co Ltd (GK) will be getting their 41 per cent repayment of their security deposits soon signalling the end of an over 10-year saga tainted with sorrowful memories, deception, back-stabbing and political interfering.
The Treasury will release Rs.500 million to make repayment for 64 security deposit holders remaining to be paid from the financial allocation made in Rs. 7.12 billion supplementary estimate passed in Parliament recently for defence and other expenditure including the GK compensation.
Most of the GK depositors are still struggling to make ends meet and some of them are no more, after undergoing sufferings for almost a decade, several depositors who led the legal battle told the Business Times.
They noted that the GK collapse provided a golden opportunity for several opportunists who stepped in or were appointed by the state monetary authorities to become rich during the process of the so-called company resurrection process.
It is high time to conduct an investigation into the past dealings of persons appointed to manage the GK Special Purpose Vehicle and GK, they urged.
According to GK data, 9,123 security deposit holders have been paid and 64 security deposit holders remain to be paid under the 41 per cent repayment plan fulfilling 99.31 per cent of the obligation.
Security deposit holders have been repaid from the funds released from the Treasury, amounting to Rs.7.4 billion, from August 2015 onwards fulfilling a 2015 budget proposal made by then Finance Minister Ravi Karunanayake. 31 deposit holders below the Rs.10 million category and 33 deposit holders above the Rs.10 million category would be paid, amounting to Rs.705 million, GK data showed.
After receiving Rs.500 million most of these depositors could be repaid their 41 per cent of the capital investment, a senior official said adding that another sum of Rs.205 million is needed to complete the repayment of all depositors in the official re payment list.
GK will go for liquidation finally to reimburse the Treasury money doled out to repay 41 per cent of security deposits of disgruntled depositors, he said, pointing out that people’s tax money had been spent on these compensations.
The 11-story, state-of -the art, Golden Key Eye & ENT Hospital at Rajagiriya, former GK Director Padmini Karunanayake’s house at Polhengoda, two half-built houses at the ‘Nature’s Way ‘Housing Scheme in Athurugiriya, 60 acres of teak plantation at Puttalam, a quarry at Narammala, 3 floors of Ceylinco House in Fort and a Hokandara property are among the key GK assets including the assets of its subsidiaries worth Rs. 7 to 8 billion. (Bandula)