Financial Times

Pramuka depositors slap damages claim on CB and others
Depositors of the failed Pramuka Bank are claiming damages totalling Rs 6 billion from the Central Bank, Pramuka Directors and auditors KPMG Ford Rhodes Thornton & Co alleging the authorities had mismanaged the issue leading to the bank being suspended and its licence being cancelled.

The actions were filed in the District Court last week. The Judge S H Sumithrapala issued summons on the defendants returnable on April 1. M. A. Sumanthiram with Mrs P. S. Bandaranayake instructed by M. Balendra appeared for the plaintiff-depositors in this case.

The plaintiff-depositors alleged that the Central Bank failed to utilize the provisions of the Statutory Powers conferred on it effectively for the benefit of the depositors and creditors. They further allege that the liquidation of Pramuka helped the defendants to cover up the corruption, wrongdoings and failure of the Central Bank, permitting irregularities by the top management of the Prakuka Bank that led to financial collapse.

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