The Attorney General is yet to file indictment against Ceylinco chief Lalith Kotelawala and other directors of Golden Key (GK) and two other subsidiaries despite the crisis exploding 14 months back in December 2008. Kotelawala and his co-directors are all out on bail after a period in remand.
AG’s department sources said that indictment was being prepared to charge the accused under the Penal Code but pointed out that the delay in filing indictment was due to the collection of evidence process which is still going on.
These suspects are to be indicted in the Colombo High court under Section 388 of the Penal Code for criminal breach of trust, on Section 386 for embezzlement and Section 398 citing fraud.
However the trial at the Mount Lavinia Magistrate Court is continuing as the inquiry has not been completed and the Criminal Investigation Department (CID) is continuing its probe related to these charges on directives issued by the Attorney General’s Department. AG’s department sources revealed that attention has been drawn to filing charges against Kotelawala and the other suspects in a single trial, which means at some point the Mount Lavinia case will be closed or withdrawn.
Meanwhile lawyers for failed Ceylinco Group chairman Lalith Kotelawala rejected reports that they planned to file a motion in the Supreme Court on May 11, seeking permission for the once-powerful businessman to travel abroad for medical treatment for a heart ailment.
Earlier sources in Hulftsdorp said Kotelawala’s lawyers were planning such a motion. “There is no such plan. He is not that ill to seek overseas treatment. However even if we do decide on such a motion, I don’t envisage the courts rejecting such a move,” said a senior lawyer in Kotelawala’s team, who however declined to be named.
Under an earlier court order, the Ceylinco chief is barred from leaving the country and his passport has been impounded. Kotelawala’s lawyers were unavailable for comment. His wife, Sicille, is on the run abroad for several months, in an unknown destination and being hunted by local police through Interpol.
Meanwhile CID investigations centre on the financial fraud and the illegal accumulation of funds in foreign countries by some directors but they have not been able to make a major breakthrough as yet, a senior CID official said.
He said the CID has sought the support of Interpol to trace the foreign bank accounts of the company but so far no communication has been received from them. In a recent order, the Supreme Court barred all companies in the Ceylinco group from transactions relating to fresh share issues, rights issues, or transfer of shares without obtaining the prior approval of the Committee of Chartered Accountants who will decide whether approval should be granted in consultation with the Attorney General.
However, Central Bank regulated companies are exempted from this directive.
The Court also ordered that 6,554 ordinary voting shares of Seylan Bank belonging to Sicille Kotelawala be transferred and the proceeds of the sales be credited to the ‘Dedicated GK account’ in the Bank of Ceylon. Another order has been issued to take over the Kotelawala residence (later used as an office) at No 13, De Fonseka Place, Colombo 4 and to hand over it to the custody of the GK Special Purpose Vehicle. The interest payable amounting to Rs.1.8 million from Seylan Bank for investment made by her in the bank’s debentures will also be transferred to the dedicated account under the court order.
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