By Darmitha-Kotte
Another protest was organised today at Navam Mawatha, Colombo 02, by aggrieved Golden Key depositors who demanded their money back. Pic by Pradeep Dilrukshana.
It is this eagerness to create a public image that pushed him into convincing VC of Sri Jayawardanepura University Mr. Ekwatte into conferring an Honorary Doctorate to him which the Chancellor at the time Ven. Sumanatissa Thero objected to on grounds that it was unethical to do so. Mysteriously, Ven.Sumanatissa was found dead inside the temple well not too long after the incident of the Honorary Doctorate. A similar fate befell Ven.Gangodawila Soma Thero due to his outspoken Dhamma sermons where he opened the eyes of Buddhists on the subject of religious conspiracies & it is a very well known fact that Dr. Kotelawela forbade employees from hanging yellow flags to mark Venerable Soma Thero’s death.”
We are indeed saddened to note that Ceylinco Group had to end 2008 on such a crisis note and hit a climax point just before the Christmas festivities. There is no doubt that Dr.Lalith Kotelawela as well as Dr.(Mrs) Sicille Kotelawela are not the happiest people today due to the build up and final expose’ of the Golden Key Credit Card Scam which shocked not only them but more so the Golden Key Credit Card Holders who had put implicit faith on Seylan Bank, Ceylinco Group and the Golden Credit Card by investing with them. To those unfortunate investors, the regular festive season has brought financial disaster but no bonuses to enjoy the new year.
The word “honest”(adjective) is explained in the Oxford Dictionary as 1. truthful and sincere 2. fairly earned and 3. simple and straightforward. The noun “honesty” has been described as “the quality of being honest.”
This is how Ceylinco Chairman was taken to Mt.Lavinia Court on 26th March 09.
These are the qualities that Dr.Lalith Kotelawela supposedly strived to live upto in the management of his business conglomerate but how much has actually been “honest” has now posed a major question mark to his reputation both at a personal level and as the corporate culture of his business operations.
Ceylinco Group Expansion:
It was through the perseverance of Dr.Kotelawela that Ceylinco grew in to what it is now known to be group of companies numbering over three hundred we hear. His Business Card is supposed to be a unique design in order to include all the names of companies which are under his purview-some say that one needs to “unfold “the Business Card is folded many times to accommodate the contact details of all the companies! No doubt, he was indeed a happy man once because he tried his hands at everything possible-the latest being the Diabetic Detection Centre, Bakery, Gramaen Banking and a number of others outside the Finance Companies, Real Estate Developments, Golden Key Credit Card Co.,Seylan Bank, Ceylinco Savings, Loan Schemes for Agricultural Small Holders, SOLO-U, Ceylinco-Gramaen Automobiles Private Ltd (through which “Ceygra” 4 stroke three wheelers are sold through a tie-up with PLC), Ceylinco Travels, Insurance, Leasing, Car Rentals, Employment Agencies, Security Services, Home-Nursing Services, Ceylinco Sarana Cattle Protection Centre – in other words it became a heavily diversified business operation. According to report in the Sunday Island, “Kotelawela who leads a business empire comprising over 300 companies is well knwn of his charitable and philanthrophic efforts to improve the conditions of the poor and marginalized in the country.”
It could very well have been this massive diversity that eventually caused the downfall of this “philanthrophic businessman” as Dr. Kotelawela became known as within the business community.
Personality Cult:
Golden Key employees staged a protest on 5th March demanding their Feb'09 salary before 10th March.(Photo courtesy: Daily Mirror)
Dr. Kotelawela if he had his wish, would very much like to be remembered as wonderfully humane person. This is quite obvious when one reads his biography which was written by an employee within the Ceylinco Group. Every thing of their boss was perfect to the T as it were-no flaws or shortcomings which in many ways is humanly impossible-however, this is how he would wish his employees to remember him as.
This is why he made page long advertisements immediately after the Golden Key Credit Card Scam came into the limelight assuring his clients continued services and repayment of investments as soon as possible which is ofcourse not good enough for those who lost their money.
It is this eagerness to create a public image that pushed him into convincing VC of Sri Jayawardanepura University Mr. Ekwatte into conferring an Honorary Doctorate to him which the Chancellor at the time Ven. Sumanatissa Thero objected to on grounds that it was unethical to do so. Mysteriously, Ven.Sumanatissa was found dead inside the temple well not too long after the incident of the Honorary Doctorate. A similar fate befell Ven.Gangodawila Soma Thero due to his outspoken Dhamma sermons where he opened the eyes of Buddhists on the subject of religious conspiracies & it is a very well known fact that Dr. Kotelawela forbade employees from hanging yellow flags to mark Venerable Soma Thero’s death.
Ceylinco - Shiram depositor's protest on 29th July'09 infront of Colombo Fort Magistrate court.
One weakness we saw very openly was an exhibition of arrogance during the last couple of years which already created black marks in his ever pleasant personality.
SOLO-U & Politics:
Irrespective of how we climb up the ladder in public, there are a couple of things we must always remember if we need to succeed. Of these humility & honesty are very important. One must also never do anything to hurt the feelings of one’s parents nor forget one’s past. In this respect, there is much that Dr. Kotelawela can learn from. Having been born into a highly respected Buddhist family after marriage he changed his religion(which is his personal prerogative and perfectly o.k) and became a Catholic which has definitely hurt the sentiments of his entire family. Having said that he is most certainly free to practise a religion of his own choice but he must be gracious enough to refrain from being antagonistic towards the religion of his birth. A religious philosophy of which his own sisters are still devout adherents.
Using SOLO-U Dr. Kotelawela was in the habit of conducting TV programmes through which he invariably expressed opinions antagonistic towards Buddhists and the sovereignty of Sri Lanka. When a person supports terrorists and gives financial aid to a terrorist movement, one is automatically being disloyal towards one’s own Motherland. It is on record that he gave an interview to Gulf News in which he openly supported the cause of terrorism by speaking for the LTTE on one of his trips to the Middle East.
In 2005 just prior to the Presidential Elections in which the current Executive President was a Presidential Candidate, he proved his religious bias when he together with Archbishop Oswald Gomis placed page long advertisements warning against voting for the incumbent President with his “Christians Awake!” warning stating that Mahinda Rajapakse represented Sinhala extremism.
However, once the elections were won and it became obvious that this President was there to stay, gradually the Catholic Bishops and Dr.Kotelawela began to patronize the current GOSL for their own survival and sneaked into the “Tharunyate Hetak” movement of Rajapakse Junior even sponsoring some of their programmes for his own political and business survival. Whether this is honest and sincere, is another question altogether? Today, Dr. Kotelawela who masterminded a boycott programme during the Presidential Elections is singing Hosannas
to President Mahinda Rajapakse & the “Mahinda Chinthanaya”!
It is this very same President and his GOSL and Central Bank that has come forward today, to save Golden Key Credit Card Scam and Seylan Bank & the Ceylinco Group from total collapse. Today, the Central Bank has arranged for Bank of Ceylon to take over operations of Seylan Bank.
Dubious Activities Within the Ceylinco Group of Companies:
During the post-Tsunami scenario Ceylinco Insurance made big business by promising to pay off for personal vehicle losses and damages and carried on a massive campaign as ” the champion of the grieved and helpless” but we know of many stories where the full amount of Insurance Claims were not honoured and these were even reported in some of the local newspapers.
Ceylinco Gramaen Bank also advertises vigorously about the wonderful conditions they offer for loans but when interest payments have to be paid back by debtors, they find that they are required to pay an interest of over 20% to the bank which was not made clear to them at the time of applying for the loans!
A big question comes into the minds of Sri Lankan citizens and that is” If the CEO of a company is absolutely honest in his dealings and has inculcated such values in his staff members, would it be possible for the Chief Executive Director of Golden Key Credit Card Company to misappropriate funds amounting to over Rs.20 billion single-handedly? At that level, there are bound to be others involved or through whom certain approvals were obtained before action was taken to implement so called misappropriations. With money, many seedy deals can be fixed and let us just hope that the named “guilty party” has not been bought over to accept guilt and end the story there.
To “save face” as the Chinese saying goes, Dr.Kotelawela placed advertisements in all newspapers and invited investors to come to BMICH to explain the situation on 23rd and 24th of December 2008. Contrary to his expectations, there were angry clients who supposedly had dared to manhandle Chairman Dr. Kotelawela & threw water on him as reported in the Sinhalanet website. The tea party he had planned as a peaceful parting between the grieved investors and the Chairman was hurriedly cancelled when it became obvious that people were not in a mood for pleasantries! One cannot expect pleasantries when investors have busted all their savings and assets in a Credit Card Company that has over- advertised its capabilities.
For a man who wishes to project a perfect image of himself in the eyes of the public, this was certainly not a perfect picture. As far as Chairman Dr. Kotelawela is concerned, there is no doubt that personally, he will not face a financial crunch given the fact that he has many investments and assets abroad but it is the local investors who trusted Golden Key Credit Card Company with their limited assets who face the full brunt of irresponsible corporate bungling.
Due to the angry reactions of investors(Colombo) on 23rd December, the meeting scheduled for 24th December targeting the “outstation clients” had to be cancelled.
Ultimate Solution To a Not So Nice Festive Christmas Season:
Having faced the wrath of angry clients, it became obvious to the “philanthropic” Chairman, that clients wanted a satisfactory solution here and now-not something fairytale many months from now, therefore he decided to sell Seylan shares as well as some other companies within the Ceylinco Group of Companies.
Magnanimously, the GOSL and Central Bank have come forward to salvage the situation and save Seylan Bank from collapse which will incur an additional burden on government coffers for unscrupulous and dishonest dealings of private companies.
It is certainly no guarantee that other companies within the Ceylinco Group will also have to be sold off to pay off the Rs.20 odd billion debt to investors.
Conclusion:
Let us sincerely hope that Dr. Kotelawela even though he no longer believes in The Buddha word, there is a thing called “Ditta Dhamma Vedaneeya Karma”( retribution within this life) unlike in Christianity where a mere “confession” can cancel all one’s misdeeds.
Even as did Jesus Christ express loudly on the Crucifix “Eli, Eli, Lema, Sabachthani?” – My God! My God ! Why Hast Thou Forsaken Me? These words may be ringing in the ears of Dr. Kotelawela as well. Let us be merciful and hope that his drama will be resolved quickly- personal credibility & reputation is another issue altogether.
(“Sinhale Hot News” bears no responsibility for the ideas and opinion expressed by the writers as well as for the comments posted to the articles by numerous readers and viewers of this web site.)
Eye opening article, Darmitha. Thanks for that.
Now we heard Celinco Group senior director Ms.Padmini Karunanayake is missing. May be assuming that she will be arrested?
Do you all know how many apartments Ms.Padmini Karunanayake has? Same way all other Ceylinco directors having many apartments gifted to them by the company and spending luxury lives on our investments.
Yesterday, Mt.Lavinia Chief Magistrate ordered to to seize the passports of Lalith& his wife Cicilia.
Informed source at GKCCCL said that Lalith and his wife resigned from the board of GKCCCL in Oct’ 08 by knowing this crisis and now trying to put the blame on Chief Executive Director of the Golden Key Credit Card Co. Ltd, Khavan Perera.
We feel not only one or two directors but also the entire Ceylinco group directors are responsible for this fraud. If CID proved this is a willful fraud, all the directors should responsible to settle their depositors’ claims which is said to be well over Rs.28 billion even by selling their(directors) private properties.
Lalith was converted into Catholic only when he was granted a huge loan from a bank in Vatican. That was sponsored by a local Catholic Priest and embracing Catholism was one of the demands they put forwarded to him.
Hence, Lalith is a man who mortgaged his religion over money. Can that type of a person be a true gentleman?
Some said the money they collected through GKCCCL , have used to run the Ceylinco group with a show off. Though 300 to 400 companies are established under Ceylinco group, only very few companies are doing well. All other companies depend on money that pumped through GKCCCL. Since ordinary citizens of this country invested their hard earned money on GKCCCL, they all should get the credit for running Ceylinco group for the last few years.
Once the God came forward for a “conditional rescue’ of Lalith. But this time who will come forward to rescue Lalith? Better try on “Allah”, then you can become a Deshamanaya Dr. Lalith Kotalawela Mohamed……….
By: Customer on January 1, 2009
at 1:40 pm
Must hang the bugger by the balls. What this Supreme Courts doing? Milking the bloody rascals? and The King Kekille is very silent on this matter. Its indicate the King and his Henchmen provide the shelter and umbrella to this bloody rouge! Who is there to think about poor Guys who invested money with this bloody thief?
By: Prakrama on January 24, 2011
at 10:19 am
Khavan perera and two others were remanded by Mt.Lavinia Judge today.
He is only a ” Haal Messa” and we hope the real ” Moraa” who is responsible for this fraud be remanded in near future.
By: Customer on January 6, 2009
at 1:27 pm
It is now learnt Ms. Sicilia Kotelawala has resigned from the board of Ceylinco Seylan Development Bank with effect from 2nd January.
May be to get rid of the responsibilities relating to above mismanagement. Is that legal? We hope all who are responsible for the above should bring before the court.
By: Saman on January 7, 2009
at 11:55 am
I have deposit my hard earn saving at one of the ceylico group nameley The finance & Gurantee
now i am patient and i have to undergo a surgery
wich is costing around 4 million i asked my deposit with the medical report. The lady AGM fixed deposit says
a) I need a letter from the doctor
B) They will pay to the hospital directley
c) Get the correct amount
d) THE CENTRL BANK HAS STOPED PRE
MATURE WITHDRWS
BY MAKING the deposit these are the facts that i ahve to undergo
By: sudar on January 7, 2009
at 3:54 pm
This is a joke. Whenever they accept our money as a FD, did they put forward any of these conditions?
Conditions for Pre-mature withdrawals can be vary from one financial institution to another. but there should be a way of withdrawing money in a situation like this, because you are the legal owner of your deposit and they are only custodians.
By: Samapth on January 7, 2009
at 9:02 pm
Hi everybody, When you cant catch Sakvithi, Danduwam Mudalali, and cannot take action against the corrupted famous well known MINISTERS and people in the Government you only chase people who appear in courts and follow proper legal procedures.
Let the final Report come out. Do not disgrace respected people who really worked and help poor people without any political advantage. Do you only want to talk bad since Honerable as appeared in courts and following the proper legal frame work.
Can anybody challenge the curruption of Ministers or culprit Sakvithi or Danduwam Mudalali.
Allow the Hon Ceylinco Chairman solve this problem . Think that he is a Minister please then what will happen?
Let him allow to treat our people rather than any others please. Do not be racial.
Treat honest people in a honest way.
We know all these closely.
Request him to built a Buddhist Temple, Yes he will give even his property.
By: lucky on January 7, 2009
at 10:39 pm
Mr.Lucky seems to sympathize with Dr. Kotelawela calling him an honest person.We are not sure whether Lucky is an employee?
Prestige, honesty are qualities one cannot buy using the hard earned money of citizens of this country.
If Dr. Kotelawela is such an honest person, how come Golden Key Credit Card Company is not even registered with the Central Bank? Every action of one’s company must speak for honest procedures if the owner is honest but unfortunately we do not see that with all the news coverage we have seen during the past week.
I don’t think the writer of this article was talking about politicians in this article and therefore Mr. Lucky should not deviate or digress from the topic under discussion-those politicians will have their day of reckoning some day & for sure, it will not be glorious.
In case Mr Lucky is not too familiar with Dr. Kotelawela let me state that Dr.Kotelawela’s appearing in Courts is not because of his honesty but as the owner of the Group of Companies, he naturally becomes a respondent answerable to the Courts- it is also because he is extremely concerned about his public image which is now totally shattered for permitting misappropriations within the companies that come under his purview.
I fully sympathize with Mr. Sudar’s comments and his predicament because I myself have faced a similar situation dealing with Ceylinco Insurance many years ago.
Their Sales Executives will promise the Sun and the Moon to get a person to become a client. The Salesman was bending over backwards until I agreed to sign an application form. He promised me many things but having signed the papers and paid the money, the Insurance Policy that I received stated much less facilities than had been promised. I visited their office and spoke to the Manager, who very dubiously tried to avoid the issue- he did not want to even show me the copy that was in their files! Having paid monthly instalments for a period of time, I gave up and decided to stop payment because I knew that if and when I would need to recover money from them, that it will be cut and chopped to suite their ends-not that of the client.
There is no sympathy for owners of such companies & let no one try to whitewash such personalities.
An honest selfless man as Mr. Lucky makes out of Dr.Kotelawela, should not have named a reservoir that he rehabilitated in the NCP as “Sicille Samudraya” a couple of years ago when CBK was in power!
By: Ramani on January 8, 2009
at 9:16 am
Lucky, I am sure that you are on a contract to safeguard Dr.Deshamannya Lalith Kothalawala against the allegations that come up in forums like this. It seems that you have tried it at your level best, but failed in your duty simply because we all know who is Lalith Kothalawala much better than you.
You talk about Sakvithi, Daduwam Mudalali and corrupted Ministers in the Govt. But I feel, as you said they all are NOT so respected and so generous people like your client. Therefore one can not match your client with them other than for the type of the incident they all involved for. Hence, matter relating to your client and matters relating to others should be discussed on two different platforms.
You said that your much respected client came before court & followed the legal procedures. But he did it, because
he never thought that the charges are so serious/ the public opinion too goes against him and
he is so worried about his so-called image which he said to be built for the last so many years.
Thereafter you said that he is a honest man. If he is such a honest man, will he cheat others? Until last October, he was the Chairman of Golden key Credit Card Company. Once he came to know that there will be a big issue, your honest client along with madam resigned from the company. Now he is trying to put the blame on Khavan Perera. I am not going to say that Perera is an innocent man. If Perera is responsible for it as the CEO, how come your client being the Chairman not responsible for same?
Do you know that your client as the Chairman of Ceylinco group always be at the final interview board when recruiting new comers to the entire group for all level. If he is so involved in such things how can we believe that these things were happened in his group without his knowledge/approval?
Also, you mentioned that he worked for the poor people without any political advantage. But it is a well known fact that he was about to contest for the last general election that held in 2004 representing NWP as a UNP candidate. However, he had to changed his mind at the last minute as the political environment built up in the whole country was not in his favour , specially due to the sudden death of Ven. Gangodawila Soma Thera.
It is true that he is doing some social works by using “Sarana” funds. Kindly note that it is not his personal fund and that fund is being fed by each & every Ceylinco group employees. Rs.100 will be deducted from every employee per month whether they willing or not and that is how “Sarana” fund is built up.
We also can become such philanthropists if we also have such fund built up by others. So, people who are deaf and blind only can call him as a great philanthropist, but for us he is non other than a Cheater.
Finally, you said if anyone ask him to build a Buddhist temple he will do it by using his own property. Lucky, please note the Buddhists temples which were built in the past were totally financed by the Buddhist philanthropist and even at present it is same. In the same way, don’t think we as Sinhala Buddhist are so bankrupt to go behind such people who mortgaged his religion on behalf of money.
Is there anything else to talk about the “religious harmony” of a man who even did not allow his employees to put up a yellow flag as a mark of respect to the late Ven. Gangodawila Soma Thera???
By: Nuwan on January 8, 2009
at 11:36 pm
In november I submitted the request for withdrawal of my account at GK ,but unfortunately this unexpected crisis occurred.I am now in a deep trouble cos I desperately need money for the treatment of my mother who is an advanced metasis breast cancer patient. As a buddhist I pray everynight that Mr Kotalawala would solve this chaos and give us back our money soon.I feel sorry for those who have invested in this company and fallen into trouble like me. As the Lord Buddha said ” thanhaya jayathi soko ” that is what happened to us going after big interest rates.
By: Ruwantha on January 8, 2009
at 11:46 pm
Its good going. Allow the 30,000 employees plus the families of Ceylinco Group to take by Nuwan and ramani Group.
You talk one side about the Life Monthly premium. Please note dear we are the Market Leaders . You tell your problem to the correct place your problem will be solved within seconds. To not disgrace I have experienced. Later do n ot appolologize.
By: lucky on January 8, 2009
at 11:55 pm
Its good going. Allow the 30,000 employees plus the families of Ceylinco Group to take by Nuwan and ramani Group.
You talk one side about the Life Monthly premium. Please note dear Ceylinco are the Market Leaders . You tell your problem to the correct place your problem will be solved within seconds. To not disgrace I have experienced. Later do n ot appologize.
By: lucky on January 8, 2009
at 11:57 pm
The guess that Mr. Lucky is an employee of Ceylinco has finally come out through his own posting yesterday.
“Please note dear we are the Market Leaders . ”
(posting at 11.55pm)
“You talk one side about the Life Monthly premium. Please note dear Ceylinco are the Market Leaders .” —(posting at 11.57pm)
He slipped and identified himself as an employee and 2 minutes later he amends the sentence to read “……..Ceylinco are the Market Leaders” omitting the word ” we” in the earlier posting.
There is no further reason to discuss this matter with Mr. Lucky because we have to sympathize with him. If he earns his bread and butter from Ceylinco and Dr. Kotelawela- the least he can do is be grateful for small mercies!
By: Ramani on January 9, 2009
at 6:07 am
Thanks, Lucky for aacepting that you are an employee of Ceylinco Group. You as an employee has no other choice rather than white washing your boss in a situation like this.
We know that your boss has appointed several guys like you to deal with this situation.
But the reality can not be hidden from the public
forever.
Kindly note this is not a matter of one Insurance policy but it relates to many lives in the country. Therefore kindy stop praising people for petty gaining.
By: Nuwan on January 9, 2009
at 3:22 pm
Thanks for the forum . As a Journalist I wanted the views as an Employee too. Very Good everybody thought me too a fool like all of you. Puff good staff. Lets allow the time to know the real truth of this story . Lets talk now. Nuwan and Ramani God bless you.
By: lucky on January 9, 2009
at 4:39 pm
Kiribathgoda Ceylinco ASM Manoj Jayalath made billions and billions out of Golden key deposits. He is now running his own rent a car business with 15 lux. vehicles. That is how they played out our money.
By: Jayantha on January 9, 2009
at 7:26 pm
I have invested over 4 Million in Finance & Guarantee. I am not sure it will be safe. I work in another country and want to know if anyone deal with this company or they will approve premature refunds.
Any one to help?
By: nalaka on January 11, 2009
at 6:17 pm
Nalaka, feel sorry for you for investing such a huge amount with a cheater.
Anyway, just check the rules & regulations printed on the reverse of your FD certificate. If they have made any provision there, you can request for a premature withdrawal accordingly.
If they do not mention anything relating to premature withdrawals, that is fine. Because then you can dictate your own terms on such withdrawals.
GOOD LUCK!
By: JANAKA on January 11, 2009
at 8:53 pm
Whay are you’ll getting panic. Wait until the final decisions are announced. we are sad that no bady talk about sakviti and danduwam mudalali for money since its gone.
We have a confidence that Kotelawela will sort this matter in a very diplomatic way. Please allow the time solve .
By: Sumudu on January 12, 2009
at 12:09 am
Reading the comments of all it seems that Lucky and Sumudu are the only sympathizers of Dr. Kotelawela and his cheating.
A just and God fearing person like Dr.Kotelawela, it seems extremely strange why he permits this kind of misappropriations of other people’s money within his own group of companies?
Such an honourable man-why did he receive other people’s hard earned money into his Golden Key Credit Card Company without obtaining a legal approval certificate from The Central Bank of Sri Lanka?
When people want to withdraw their own investments, why do officers drag their feet to expedite refunds? Investors have every right to withdraw their investments no matter, for what ever reasons-it is their money.
The financial problems within Ceylinco Group did not start overnight please. It is because Dr. Kotelawela knew he was coming in for a hard time, that he began to align himself and his company towards Government programmes- to get sympathy and support from the government- a government and President that he and the Catholic Church opposed most vehemently from becoming the President of Sri Lanka in 2005.
Dr. Kotelawela is not such an innocent person as some on this forum try to make it out-sorry about blind faith!
By: Samanmalie on January 12, 2009
at 6:34 am
Sumudu, why should we wait until Kothalawala announce his final decision? If it is not in favour of the depositors, what is your next opinion? Do you want us to wait until whenever he pays us? Don’t you think that we as depositors have a right to take maximum steps to protect our deposits?
Please note that is our money we deposited there. Hence still we are the legal owners of such deposits and Kothalawala and/or his financial institutions can act ONLY as custodians/Trustees. Therefore either Kothalawala or his financial institutions have no any legal rights whatsoever to dictate new terms on our deposits, unless otherwise previously agreed.
Kindly refer the comments posted to this forum by Nuwan on 8th January 2008 and then you will realize why Kothalawala, Daduwam & Sakvithi are not in the same boat.
Do you know that some of those controversial financial companies managed by Kothalawala are still not registered under the Finance Act to accept public funds as deposits? Not only that, do you know GKCC did not deduct With holding Tax from the its eligible depositors and pay back to IRD?
If Kothalawala is so respected, so genuine, so concerned about his image, why he allowed such illegal practices to be taken place in his financial institutions?
Are you still asking us to believe him? Sorry, we are not believers.
By: Kumara on January 12, 2009
at 2:03 pm
In the Financial sector there are many companies have experienced ups and downs. We can feel the feelings of the depositors.
Why now only the real Authorities want to take serious action. It should have done long long ago. Who are the real culprits? Think positively. Sakvithies depositors ” Budu Saranai” others still you will get somethings according to my personal view.
Please pray. This is because “thanhawa” to earn more.
By: LAKSHMAN on January 12, 2009
at 10:31 pm
We are poor people . we dont have money to deposit in any of these companies to earn anything more. I just get my small salary, pay electricity just managed with my living expenses.
Therefore I curse of all these people who has tried to earn more money.
Help the security forces who are only from the Poor people. Others really enjoy the life.
Help the poor people . Forget all you have deposited to earn more.All are culprits. Still you live
By: Sumanapala on January 12, 2009
at 10:39 pm
A Philanthropist, one of the richest man in the Country, and a patriot of the country, Saviour of the nation! But very few people know he is a wolf covered with a goat skin.
This is to reveal himself, who he is, to the people who do not know the truth. The two incidences explain his indecency, and ungrateful attitude to the poor people.
Me, the writer of this article has been played out by so called “DESHAMANYA” in two different times. I am the Real Estate Broker who promote the selling of property “Ruskin Island at Bolgoda Lake, Moratuwa. One fine day I met “DESHAMANYA” at his office at Fort (in front of Hotel Continental) 3rd floor after a greatest difficulty and waiting in the list for one full month. And I submit the necessary site plan of “Ruskin Island” and other relevant details to consider of purchase. And we had a nice chat and he was kind enough to receive me in his office for a period of 15 minutes. One month after he sent me a letter saying that he has consulted in Managers and this island is suitable for a Hotel Project and therefore he is not interested in purchasing this property, which price has marked as one million Dollars (Equal to Rs 50 Million according to the foreign exchange rate at that time)
After some times I heard the “Ruskin Island” has been sold and I made my investigation and found Our “DESHAMANYA” has bought for Rs.25 Million from the seller. Normally it is not in practice in Sri Lanka to provide a whole list of customers who have been introduces any property. Specially someone issue a letter and mentioned that he is not interested and we would not submit his name or an identity to the owners of the respective property. Knowing all the factors I wrote a letter to So called “DESHAMANYA” and pleaded to looking to this matter and asked him to compensate my legitimate commission 3% which I could not claim from the seller’s due to the hidden transaction initiated by “DESHAMANY “ and the seller.
Now “so called “DESHAMANYA” should have inform me in time since I was the respective introducer to claim the commission which he never did it. When I inform him, his inability of informing me that I have to incurred a loss of Rs.750,000.00 and emphasize the his negligence of ethics of business, he sent me a reply saying that he has conclude the transaction with the sellers directly and since my name has not come up during the transaction and discussions he could not do any thing and he denied to pay anything or stated that he has finished the transaction and nothing can be done for this. Normally when his company buy a property they pay 1% of the total value. He didn’t let me receive my legitimate commission from the seller or even 1% which his company pays once they buy a property. And he was not kind enough to identify my efforts of selling the property and he left me on the lurch by transacting secretly. When I demand money his Attorney has send me a threatening letter saying that they will go to the law of court against me if I bother “DESHAMANYA” any more.
That is how he conducts real estate business with brokers.
Second incident was a Court Case.
I was working with a friend of mine called Mr. Adhikari from Athurugiriya and one of my clients wanted a property in a water front location around Cololmbo. One day there was an advertisement in the news paper and state a availability of property facing “Uyanwaththa Lake” @ Kotalawala Piliyandala. I spoke to the advertiser (The Finance Co., Ltd) and found the location went there and discussed about the terms & conditions. They promised us and to pay 3% of the total sale value and we offered My client Mr.Ishara Nanayakkara and he liked the place and wanted to purchase. The Company gave me a promising letter to pay 3% and I introduced Mr.Nanayakkara as purchaser. After that negotiations were going on and all over suddenly the transaction concluded secretly and sold it for Rs. 21 Million and neglected to pay our commission and we went to courts. And it took three and half years to get a verdict and we won the case and Company had to pay 3% commission , Interest for 3 ½ years, Court charges and Attorney’s charges respectively in District Court. NOW YOU WILL REALIZE WHO IS SO CALLED DESHAMANYA AND HIS CONGLOMERATE AND HOW THEY MINTING MONEY BY DEFAULTING POOR PEOPLE. THIS IS ONLY TWO INCIDENTS AND THERE ARE THOUSANDS DEFAULTS WHICH HAS NOT COME FORWARD AND MOST OF VICTIMS KEEP IT UNDISCLOSED! IN VAIN POOR PEOPLE!!
Now he is facing “DITTA DHAMMA VEDANEEYA KAMMA” according to the Buddhism and you all can see the collapse of So called Conglomerate in near future ! Ha Ha Ha !
By: Parakrama on January 13, 2009
at 12:54 pm
Sumanapala,
When I read your comment it is clear just because you have no excess money to invest, you curse for the people who do so. If you have any excess money, are you going to donate all that among the beggars on roads?
Sumanapala, you have no ethical rights to curse people simply because they are well ahead of you. That is their fate & this is yours. By cursing on such people, you will not gain anything other than “self-depress”.
If you need to be rich, you must give up cursing people who are above you and “try continuously” until you achieve your own goal. That is how many people became success in the world.
Also note most of the people who dump their money at Kothalawala’s companies are no so rich. They are very ordinary people of this country like you and I. So, they invested their hard earned money with Kothalawela not to climb up to Sun & Moon but to live in with somewhat comfortably.
Therefore, stop cursing on such people who invested with Kothalawela and if you wish, cruse on Kothelawala who looted their money while appearing as a gentlemen to the entire world.
By: Ranjan on January 13, 2009
at 12:57 pm
Another “buddy Kothalawala” disclosed at Seylan bank!
CID has arrested Upul Rohan Wijesinghe – an IT guy at Seylan Bank over defrauding the bank nearly 10 million through his wife’s credit card.
He was produced before Mt.Lavinia Chief Magistrate and remanded till 22nd January 2009.
By: Lal on January 14, 2009
at 7:07 am
We cannot see these kind of businesses popping up every time; even laws may not be able to avoid. It is those greedy people who go blind for high returns create these kind of people: Sakvithi or Danduwam.
How can one offer 30% to 72% interest on deposits, when an average businesses (for most of us are working for) cannot survive with even at 15% interest.
By: Citizen on January 14, 2009
at 12:44 pm
my investment is also as nalakars . Its at the finance and gurantee. Now they sy centralbank has ask them not to allow the premature withdrawls. i check with central bank and they say they havent tell anything like that
Any way we invets our hard eranin saving and now we cannot withdraw for our health condition
By: sudar on January 14, 2009
at 3:55 pm
Sudar, Please read the answer given by janaka to Nalaka.
As you said if CBSL didn’t issue any such order to F&G,
1. Ask F&G to produce any such written order,if they have.
2. If F&G fails to produce such written order in that connection, DEMAND for a pre-mature withdrawal.
Because I have that kind of experience with Seylan Bank few months back. I made a very small FD with one of the Seylan Bank branches for 3 months on a Saturday.
My deposit matured on a weekday and I went to the bank on very next Saturday in the same week and asked for the withdrawal of my deposit. They simply said on Saturdays they can not permit to withdraw deposits. Then I said it was not informed me at the time of accepting my deposit. Further I asked if you can accept any deposits on a Saturday why can’t I withdraw the same on another Saturday?
Thereafter, my case was referred to the Assistant Manager on duty and he told me that it was clearly mentioned on the rules & regulations to which I have agreed at the time of opening my FD. Then I asked him to show me that and he told those papers were already sent to their HO.
Finally I asked him to show me a fresh FD application where their rules & regulations are printed overleaf and he came up with many stories and finally agreed to pay back my deposit.
This is how the bank with a heart works!
By: kulathunghe on January 14, 2009
at 9:47 pm
All are in par with the Waves . All will get your money from Central Bank. Pls contact the relevant people.
But respect the and think who has been awarded before.
By: Sumanapala on January 14, 2009
at 9:58 pm
Dear all the investors
We have invested to get a better retunes for our money, but also with a risk which we all knew,
With the current global economic down turn many malty national companies in Europe and America is also in trouble,
let us give them some times to sort it out the issues
So pls be patient,
By: sudath on January 15, 2009
at 2:04 am
Sudath, Sumanapala & Laksman,
You all are seem to be sympathizers for Kothalawale.
It is true that there is a global economic crisis in the world and to a some extent it affected on us also. Up to now it badly affected on garment industry in SL.
However, it is too early to say that it already affected on our finance institutions too. Because none of our financial institutions directly or indirectly deal with US like SL garment industries. Nearly 70% – 85% of our garment exports directly goes to US market and due to the economic crisis in US it has come down drastically and in turn affected the garment industry. Cynotex garment factory run by Chinese management at Katunayake FTZ too closed yesterday and VRS were reportedly offered in Mass group.
When you talk about the financial institutions in SL, as stated above none of them deal with US directly or indirectly and therefore we couldn’t agree to the fact that “current crisis in Ceylinco” group is due to that.
If your argument is correct, many “name sake” financial institutions operating in SL should be collapsed very much before F&G and other financial institutions in Ceylinco group. Many of those financial institutions do not belong to a group of companies such as Ceylinco Group to back them whenever they are in trouble. But even then still they are functioning well.
Hence, the reason for the collapse of financial companies back by Ceylinco is none other than for mismanagement and malpractices that took place in their companies during the past.
If you need any further clarification, kindly read the comments posted by Lal on 14/1, Kumara on 12/1 and Samanmali on 12/1, Jayantha on 9/1 and Nuwan on 8/1. Also refer the comments posted by Kulathunghe on 14/1, Sudar on 14/1, Parakkrama on 13/1 and Nalaka on 11/1 to see how Ceylinco companies trying to cheat people.
Apart form all above it is said Dr.Boss has transferred billions and billions from Golden Key Co; to his personal accounts operating in overseas. Some millions gone to someone else’s mistress account in SL, informed sources revealed.
Sudath, Sumanapala & Lauksman ,
Just to cover up mismanagement and malpractices at Ceylinco group, don’t try to blame either depositors or the others.
Lakshman,
It is true all these due to “Thanhawa”. Until at least attain “So-wan”, one can not give up “Thanhawa”. But for that “praying” is not the solution!
By: Rukman on January 15, 2009
at 2:41 pm
Dear Customers Finance and Guarantee
Plz Vigilant, now F&G Management Escape ,Recl/Property all Ready down, this is now register in Central Bank
Mr. Kothalawala,
Your said your have funds for take out “ sakwithy “ Plzz now don’ put Sakwity Save your company
(Don’t tell lie ,we Remember Pramuka that time also your said same story .
What happen now ! your cant create marketing tool now)
By: Kumara on January 16, 2009
at 7:52 am
Hot news!
Ceylinco Chairman and the Golden Key Credit Card company board members were today named as “suspects” by the Mount Lavinia Magistrate court over the credit card scam and ordered to give statements to the CID on January 20.
By: Rukman on January 16, 2009
at 1:41 pm
RUKMAN
MY INVESTMENT WITH F & G, ANY NEWS ON THEM ??
By: sudath on January 16, 2009
at 2:21 pm
Yes Think that it has given to Sakvithi .
By: Lasantha on January 16, 2009
at 10:17 pm
Along with Khavan,Sarada & Manoj, GKC Internal Auditor Nallan Thuwan also remanded by Mt.Lavinia Chief Magistrate Harsha Sethunghe yesterday.
HOPE, DESHAMANNA ALSO GO IN ON NEXT CALLING DATE-20 JAN
By: kulathunghe on January 17, 2009
at 8:07 am
Does any body know of any depositor who has been refunded by GK ? pls let us know.
By: Ruwantha on January 19, 2009
at 3:35 pm
About F&G Properties I got to know from very reliable sources that they are in serious financial difficulties. They have housing schemes at Thalahena, Malabe and several other places. F&G haven’t pay the wages to the workers at Thalahena. I got to know that the cheques issues to their suppliers were returned. They are building a luxury house with a swimming pool in the Thalahena County Homes site for the vice chairman of F&G. There are rumours that the building costa are met by F&G. If this is true , no wonder why they can’t pay the poor workers.
By: Thilak on January 20, 2009
at 2:27 am
Ruwantha,
I also heard that GK is going to refund deposits which are below 1M. It is also learnt that this was announced at court by Lalith or by his lawyers.
Anyway, still we couldn’t find such a lucky depositor whose money was refunded.
By: Akalanka on January 20, 2009
at 11:04 am
The CID yesterday recorded statements of Ceylinco Consolidated Chairman Lalith Kotelawala and 10 other directors of the collapsed Golden Key Credit Card Company in connection with an alleged fraud at the company, police said.
Last week, the Mount Lavinia Chief Magistrate Harsha Setunga directed the CID to record their statements before January 20. Four persons including the company’s Deputy Chairman Khavan Perera are in remand prison over the alleged fraud.
By: Akalanka on January 21, 2009
at 9:07 am
yes kumara!
Mr Sakwith plz help Kotalawala ohhhhh my Dear
By: Nuwantha on January 23, 2009
at 12:08 am
We understand that Mr. Kotelawala has not let his customers down like Sakvithi . With the time people will know the reality.
Do not combine all other stories with this.
By: Dananajaya on January 25, 2009
at 3:48 pm
Latest news from Ceylinco Group
Fingara Cricket Academy which came under Ceylinco group was sold out. (Don’t know whether this sale was set off against the FD made by Sanga & Sana in GKC.)
F&G Company to take over by a foreign buyer from EU.
Kothalawela is now forcing his personal customers to withdraw all their deposits from Seylan Bank expecting a sudden down fall of the bank. ( Since he was removed from the bank, this is his way of taking revenge.)
Dananjaya do you know all these things? Can you expect fairness from such a dirty fellow?
By: Suraj on January 25, 2009
at 8:36 pm
When a person like Dr. Kotelawela who supported the horrible murderers of the LTTE forgot to keep his feet firmly on the ground and began to cheat innocent gullible customers who sincerely hoped that he was “God’s Angel” who would grant them that extra bonus in the form of high interest rates, Dr. Kotelawela little realized that God had had enough of his pranks & decided to punish him for being a disgrace to God himself!
By: Samanmalie on January 28, 2009
at 4:46 pm
Happy to note the commence by Suraj. Cant you’ll understand that atleast he is taking action to settle this issue .
Do not bind all stories to this issue. In the near future when all these settled I do not think you will even write this website.
Think independentky and make your commence rather than influenced by any one or any story.
Are you in a position to make any commence about Sakvithi????
By: Dananajaya on January 28, 2009
at 10:10 pm
It is very sad indeed to read all these comments. I wonder why you all invested your money in companies which are not registered by the Central Bank? It was published in media as to what companies are registered to accept public monies in order to warn the public. As many people have commented, since Dr Kotalawala is a well known person in the society, at least you’ll can hope to get the money recovered, unlike Sakvithi and Danduwam Mudalali.
By: Nethma on January 29, 2009
at 9:06 am
The news about Fingara is wrong and has not been sold. I do not know why Suraj is commenting without proper background work which aggreviates the panic situation that is prevailing at present. May be you guys dont know that by giving these false information to the public, not only the Ceylinco group will suffer, but all the other finance companies also will.
This panic situationt has salready started to affect the whole industry even now, which will definitely effect the whole economy of the country. It is prudent for all of us to try and recover what we lost rather than creating more issues.
Even if F&G sells Fingara, we should be thankful to them since they are doing it for the purpose of infusing capital to the business, which in turn can be used to repay the depositors.
By: Derrik on January 29, 2009
at 10:32 am
Agree with Derrik that false speculation is bad. However, may be you have heard of the saying in Sinhala ” gini penellen batakawame, kala mediri eliyatath baya wenawa”
The most ideal & principled thing for Golden Key and Dr.Kotelawela to have done in the first place was:
1. To have registered Golden Key with the Central Bank before they began to collect money from innocent people;
2. Not to have broken the trust that people placed in the company by busting up other people’s money.
Please do not try to white wash other people’s sins. It is easy to say, that Ceylinco will repay every body- the prize question is “when?” It must be available when the investor needs it, not when the company decides on when they will pay!
Paying back in 2-3 or even 5 years is not the solution when it comes to playing around with other people’s money.
By: Samanmalie on January 29, 2009
at 1:53 pm
Nethma, you asked why people dumped their hard earned money with unregistered financial companies. In the same tone, if I ask you why Kothalawala accepted public funds as Fixed Deposits without getting registered his financial companies for that purpose under finance act, what would be your answer?
As you said Kothalawala is a well known person( If you read Parakkrama’s comment, you will realize exactly who he is) people have dumped their money expecting a higher return. For that you can not blame them because that is the nature.
Anyhow, Kothalawala being a well reputed and well recognized man has no right whatsoever to cheat people who kept faith on him. If he really wants to protect his so-called “image” which said to be built up by him during the last so many years among the people of this country he shouldn’t have cheated people like this.
By knowing the law much better than any of us, Kothalawala should have registered his finance companies under finance act before accepting public funds. But your much reputed, much respected & well known Dr.Deshamannya did not do it. That means deliberately he has a will to cheat people, whenever it is possible.
Nethma, you cannot compare Kothalawala with Sakvithi and/or Daduwam. Because they are not so respected, so reputed and well known character like Kothalawala in this country.
By: Kamal on January 29, 2009
at 2:27 pm
Kamal, i cannot fully agree with you on your comment, cos it is up to the depositor to see that their money is well protected. High returns will many a time will come through high risks. Would you go and invest with an un-registered company just cos you are promised high returns?
It will always be at your risk. What i meant was the investors also should take a part of the blame for losing thier money. They cannot be fully excused saying its “nature”
The fact that GK was accepting public money was no secret, and if the Govt interviened in this matter earlier (some of the high ranking govt officials also had been investors!) , things wouldn’t be so bad as it is now.
By: Nethma on January 29, 2009
at 3:56 pm
All u Guys Tmmr is 30th Jan day for all Directors to go to MC Mt Lavina Court lets see what happens, what more promises LK and his lawyers specially CR Desilva gives. Then we comment further.
By: Suraj on January 29, 2009
at 5:31 pm
Nethma, you said you can not fully agree with me- that means partly agreed with me. Good!
Yes, if you can’t take a risk, you will never be able to do business. As you said earlier, depositors may have dumped their money with Kothalawala because of the “so-called image” that he said to be built among the citizens of this country- well reputed, well respected & well known likewise.
So, the depositors may have thought that Kothalawala is a genuine person. When compare with Sakvithi and Danduwam, Kothalawala is much ahead of both of them in that aspect and therefore depositors went to Kothalawala assuming that their investments with a person like Kothalawala is much safer than with Sakvithi & Danduwam.
But my point is Kothalawala being a such a person should not cheat people like this.
By: Kamal on January 30, 2009
at 4:41 pm
Khavan, Manoj, Sarada & Thuwan remanded till 15th February.
Dep.Solicitor Gen. Sarath Jayamanne said today in Mount Lavinia court that total deposits at GKC is about Rs.26 billion. Out of that Rs.6 billion transferred to other companies within the Ceylinco group and Rs.14 billion misused by the management. He further said 1 billion rupees spent illegally and balance Rs.5 billion not accounted for.
This how Dr.Kothalawela play out public funds.
By: Lawyer on January 30, 2009
at 10:09 pm
“Deshamanya Dr. Lalith Kotelawela”( very pompous name) thought that the public will buy his story about Mr. Kavan Perera being the sole culprit in this scandal- he probably promised the heaven and earth to Mr. Kavan for him to own up the mistake on the promise that Dr. Kotelawela will “look after him” once everything was settled.
Little did Dr. Kotelawela realise, that no one in his right mind, would believe that 01 single Executive Director( Kavan Perera) has absolutel authority to move company funds as and when he wanted without obtaining approval from his bosses!
Immediately after the whole episode got exposed and the defaulted amount was quoted as being Rs.26 billion-this Dr. Kotelawela was reported in the newspapers to have told the media that the amount was exagerated and it was actually less that half of that amount?
Yesterday in the Mt.Lavinia Courts, it has been revealed that it is actually Rs.26 billion that has been defaulted!
According to what “Lawyer” states above on what was revealed in the Courts on 30th January:
(quote) “Dep.Solicitor Gen. Sarath Jayamanne said today in Mount Lavinia court that total deposits at GKC is about Rs.26 billion. Out of that Rs.6 billion transferred to other companies within the Ceylinco group and Rs.14 billion misused by the management. He further said 1 billion rupees spent illegally and balance Rs.5 billion not accounted for.”(end quote)
Honorary Consuls representing foreign countries( both Drs. Lalith and Sicille Kotelawela are holding those titles), those that hold Honorary Doctorates and those who hold National Honorary titles like “Deshamanya……” have insulted all those titles as well as the governments & institutions that have been fooled into conferring such titles on national crooks who have swindled innocent investors!
It would be very wise for above organisations and countries to think a million times before conferring Honorary Titles to people who are questionable or else the value of such titles will made a joke in public circles.
By: Samanmalie on January 31, 2009
at 11:31 am
F&G .DC .jayasinghe Planing to move Sri Lanka
By: Nuwantha on February 3, 2009
at 8:37 am
Nuwantha ur mgs “Jayasinghe planing to move Sri Lanka” , not clear can u plse explain more ?
By: Suraj on February 3, 2009
at 1:11 pm
yes he now planing to move sl
By: Nuwantha on February 3, 2009
at 1:40 pm
Nuwantha,
As suraj said, your idea is not clear. Who is Jayasinghe? What is his position at F&G?
DO YOU MEAN THAT HE IS LEAVING THE COUNTRY ? Please reply
By: Kamal on February 3, 2009
at 1:56 pm
Deputy Chairman Mr. D. Mervyn Jayasinghe
your can see please Log this link
http://fandggroup.com/profile.php
By: Nuwantha on February 5, 2009
at 9:40 pm
F&G Real Estate Director General Manager Mr. Chalaka Perera already leaving in Sri Lanka. He now at Singapore. What the action Central Bank , for F&G?
By: Jeseeka on February 6, 2009
at 10:40 am
Thanks for the Info, Nuwantha/Jeseeka.
The thing is, as I was informed the case is against GKC and not against F&G.
Therefore, I think until the F&G Customers file a case against F&G management, none can take any action against their movements.
By: Kamal on February 6, 2009
at 12:34 pm
I got to know that Mervyn Jayasinghe is in Nawaloka Hospital. This was about two weeks ago.
I do not know whether is illness is real or whether he is pretending.
By: Thilak on February 8, 2009
at 3:36 am
Latest news from Golden Key Credit company.
Khavan Perera was brought in handcuffs to GKC office by CID recently and removed several files and documents from his office room.
A group of depositors met Kothalawela last week and Kothalawela promissed all of them to submit a repayment plan to court when the case come up for hearing on 13/2/2009 as to how GKC settle its depositors.
While a group of depositors had formed an association in order to protect their investments, Golden Key employees have also formed a trade union to avoid possible attempts of terminating their services.
It is also said that the official vehicles provided for GKC executives have already been withdrawn and most of them have been served with ‘termination of service’ notices.
By: Reporter on February 8, 2009
at 2:46 pm
I met Mr. Jayasinghe & other Directors regarding my investment. It is true that this is the worst period in Ceylinco History. They are not hiding. They are facing the situation at their best to settle customer’s Interest & Maturity Refunds.
F&G is waiting for a BIG foreign fund & a Government Bailout package to come in this month. They promised me to settle my dues once it realized.. Don’t worry crisis is everywhere in the world…Big blue chip companies are also collapsing. Be patient..
If worst comes to worst they will liquidate all the assets and pay customers.. as I know them very well for past 10 years and they never get their names (specially F&G and Ceylinco) tarnished.
By: Sam(Investor) on February 10, 2009
at 12:45 pm
How to trust this word . how can meet mr. jayasinhe ? How can play there with our money? F&g How TO sell properties. With out central bank approval. Mr. jayasinhe all ready play with investors. There plane to takeover F&G Feb 17th 2009. F&G’s all customers’ please be vigilant in this case. Please don’t be silent because this is your money.
Same (investor) don’t protect F&G Directors, because there planning to run away in country
By: Nuwantha on February 10, 2009
at 8:43 pm
Sam, though you said you are an investor- I do not think so.
Hope, you may have met Jayasinghe at Nawaloka Hospital. (Because, Thilak said on 8/2 that he has been admitted to Nawaloka).
And you have mentioned that F&G is waiting for a BIG foreign investor as well as a Govt. bailout package.
Can you remember when Sakvithi scam revealed, Dr.Deshamannya Kotalawala came forward with a bailout package? If he can come out with such a bailout package for someone else, why can’t he settle his own issue without waiting for someone else assistant?
Further you tried to show the current crisis at Ceylinco group is due to global economic crisis. Please read the comment of Rukman written to this forum on 15/1/09 and then you will realize global economic crisis has nothing to do with this.
When you refer the comments posted by Lawyer on 30/1/2009 you will see how Dr.Deshamannya Kotalawala and his gang played our public funds and it is the main reason behind collapsing Ceylinco.
Not only that, read the comments made by Thilak on 20/1/2009 to see the real situation of F&G. If you go through the comments made by Lal & Kulathungha on 14/1, Jayantha on 9/1, you might be able to see what is really happening at Ceylinco group.
In other words, Ceylinco group crisis is purely and totally due to corruptions and mal-administration that took place within the group.
By: Kamal on February 11, 2009
at 3:21 pm
Like Sam, I am an investor at F&G and I also had many meetings with Mr. Jayasinghe and others, my views are very different, F&G is in deep deep trouble, they are waiting for a some miracle to happen to bail them out…you can not trust anything the directors say.. as for their so called assets , this is a myth, they have already sold/mortgaged off most of their assets, Fingara is also mortgage…
If they have so many assets ask them sell them off and pay the depositors…..
F&G situation has no relation to the international down turn, this is due to illicit practices ….
You have to fight for your money… these people have no excuses for keeping our hard earned money.. I have also heard that lot of our money has been sent overseas (Australia/Singapore)….
I dont really see a happy picture with F&G and other Ceylinco finance companies …
By: Peter on February 11, 2009
at 7:42 pm
Sam, Kindly read the comments made by Peter.
Peter, Thanks for the information/comments which are very much similar to mine.
One Suraj making comments to this forum on 25/1 said “Fingara” was sold. You said it was mortgaged. But on 29/1, Derrik said it was not sold. Which is correct?
What I feel is, it is necessary to have a “bailout” for depositors while “lock up” the top management of F&G.
By: Kamal on February 12, 2009
at 10:28 am
Sam, please do not day dream and try to hoodwink people who invested with Golden Key Credit Card Company by stating lies about how the top manangement of Ceylinco is trying to help the investors.
As Kamal states in his comments of 11/2 if Lalith Kothelawela was so magnanimous to promise victims of the Sakvithi scam to solve their problems- how come he couldn’t solve the problem created by himself, his wife and the top directorate of the Ceylinco Group?
A person can mismanage his or her own finances but, he has a bounden duty and responsibility not to play around with other people’s money!
A person like Lalith Kotelawela who swears by God, who prays profusely and on a daily basis, who attributes his success to God’s will, then it must be God’s will that he has now been disgraced like no other human being?
Honesty- is the key word in business and having 300 companies under one’s purview is not complementary if a man is a crook- this is what everything boils down to. The boss is a crook & so have his subordinates been playing grand with the savings of innocent investors.
There is a saying ” you can fool some of the people all the time, all the people some of the time but not all the people all the time!”
People writing to this forum should not try to whitewash crooks -they themselves will fall into the same category as their bosses for whom they are trying to cover up.
A sin is a sin, and there is no way Lalith Kothelawela can wash off his sins in this great scandal- no matter how many times a day he prays to God- it seems God has turned his back on this faithful follower
By: Samanmalie on February 12, 2009
at 10:11 pm
I am in full agreement with Samanmalie, well said!
I feel that the Central Bank(CB) has to react NOW! instead of turning a blind eye to all the issues..
CB must ensure the responsible directors of F&G and other companies are not allowed to leave the country.
Kamal – Fingara, far as I know remains unsold, some talk of an offer of Rs500m!!!
I also know that cheques given by F&G are bouncing !
By: Peter on February 12, 2009
at 10:49 pm
GKC case is to be taken up for hearing today at Mt.Lavinia court. Deshamannya has to submit a proposal today in court as to how GKC settle the deposits.
By: Kamal on February 13, 2009
at 10:29 am
Two more GKC directors, Niranjan Fernando & S.Karunaratne have been remanded today by the Mt. Lavinia District Judge until 26th.
By: Lawyer on February 13, 2009
at 4:53 pm
They also gave a list of 7200 odd depositors further reducing the list can any one explain? Why was the re payment plan not given?
By: setcard on February 13, 2009
at 10:01 pm
This is what “Daily Mirror – Financial Times” said about yesterday’s court procedings
In the latest court proceedings on Sri Lanka’s largest ever financial debacle over the Golden Key Credit Card company, the Mount Lavinia Chief Magistrate Harsha Sethunga was formally informed by Deputy Solicitor General (DSG), Sarath Jayamanna that this is one of the ‘White Collar Crimes’ that happened in the country. Based on the facts revealed by CID investigations, DSG Jayamanna representing the Attorney General’s Department stated that they needed more time to analyse and investigate the many corporate associations of the Founder Chairman of the Golden Key Credit Card Co. Ltd. with a view to arresting him. “Though we have certain facts to arrest Chairman, Golden Key Credit Card Co. Ltd, Dr. Lalith Kotelawala, we need to investigate Golden Key’s money outflow which has been used by Chairman for personal reasons and many other donation activities.”
Corporate
Responsibility
He went on to questioning the technical know-how of a businessman who was unable to take any action being a Chairman of GKCCCL and its subsidiaries until that company accumulated a liability of Rs.26 billion on behalf of its depositors. “If we request to arrest Kotelawala now, then the depositors will say that they will not be repaid since the AG has directed the court to arrest him” DSG Jayamanna stated. He added that Chief Executive Officer, Golden Key Software Mr. Suramya Karunarathna (Director of GKCCCL), had used US $ 5000 from the funds of Golden Key to open another company called Golden Key Australia (in Australia) with assistance of Dr. Lalith Kotelawala. Mr. Karunarathna was one of two new executives who were to be remanded now.
Slow discussions
Counsel C.R. De Silva and Romesh De Silva appearing behalf of Dr. Lalith Kotelawala agreed to meet on February 19th at 2:30 p.m. and February 25th 3:30 p.m. with AG’s department officials to discuss the critical and long outstanding issue of a repayment plan for the depositors since earlier meetings planned for this task had not been successful.
Since the Golden Key crisis erupted around December 22nd – two months ago, no precise pronouncements on repayment elaborating amounts and repayment dates have been made by any senior member of Ceylinco despite the multiple involvements and statements of the Central Bank and various government institutions.
Depositors therefore continue to wait with great anxiety.
DSG Jayamanna also questioned the non-appearance in court of Mrs. Sicille Kotelawala who is now in Bangkok (also a Director of GKCCCL). Daily Mirror FT learns that Sicille Kotelawala had resigned from several listed companies from Ceylinco Consolidated as far back as on October 31st 2008, according to Colombo Stock Exchange reports.
Moves to repay depositors?
A document titled ‘X 2′ has been handed over to AG’s Department on Thursday which hopefully starts the process of asset sale to settle liabilities – a long affair to be sure. According to the payment plan suggested by Ceylinco Consolidated to repay Golden Key depositors, the document highlights that there are 7,181 ‘security deposit card holders’ as per their records. Furthermore, it says that 5,379 (75% of card holders) are persons who have deposits of Rs.2 million (Capital only) or less. The document says that the total of the said security deposits (Capital only) is Rs.13,660,734,146 (Rs 13.6 billion) as per the statement which has been submitted to the AG’s Department. And the total attributed to the 5,379 card holders is Rs. 3,773,543,663 (Capital only).
The Golden Key Company, on the other hand, has submitted a list of assets totalling to (-upon Ceylinco Consolidated’s estimation) Rs.13,312,300,000 (Rs 13.3 billion) in which some assets are ear marked to be sold in order to repay debts. It has been stated in the document that as at January 29th 2009, a sum of Rs. 95,686,207.83 (Rs. 95.6 million) has been paid back to depositors – no further details were available readily to Daily FT. Additionally it says that in the meantime, a sum of Rs.50 million per month would be paid to depositors by Ceylinco Consolidated in any manner stipulated by the Attorney General’s Department. These are welcome signs by the Ceylinco group and would help release some of the pent up frustrations and worries hitherto undergone by depositors.
Another document has been submitted by Ceylinco Consolidated titled ‘X 1′ also listing the detailed value of assets which could be disposable in order to refund the depositors of Golden Key. It has further defined several notes for the listed entities. A statement says that the diversification of Seylan Bank shares of Ceylinco Consolidated will be needed to repay the some of the depositors. “Right now majority shares of these shares are held by public quoted companies. Therefore, if we sell these shares with the management right/controlling interest as a big parcel, we may command a premium prices on these shares. “That premium component of the selling price only will be transferred to Golden Key Credit Card Co. Ltd. by those respective shareholding companies,” Ceylinco says in the statement.
What price assets?
Furthermore it says that the pricing of assets have been decided by the ‘Working Directors’ and the Executive Directors/CEOs who are in charge of GKCCCL subsidiaries. It also says that if they try to sell equipment in piecemeal fashion, some of the big assets such as GK ENT Hospital, Teak Plantations, Ceycom Global Communications Ltd. etc. will not generate suitable sales proceeds. “Therefore, we are in the process of issuing shares of these companies to Golden Key Credit Card Co. Ltd. and will take every effort to list all these companies in the Colombo Stock Exchange and that will be used as an exit mechanism for Golden key Credit Card Co. Ltd.” said Ceylinco Consolidated in the statement.
Hundreds of Golden Key depositors thronged the Mount Lavinia Court premises to hear the prospective rulings on yesterday afternoon. The Court ordered to remand Golden Key Group Director, Niranjan Fernando and Chief Executive Officer, Golden Key Software Suramya Karunarathne in addition to Former Deputy Chairman of Golden Key Group, Khavan Perera, Director Finance Saradha Sumanasekara and Manoj Chaminda Jayalath of Ceylinco Insurance who were remanded earlier in the court rulings.
The next hearing is scheduled on February 26th at 2:00 p.m. in the Mount Lavinia Court by which time it is hoped that parties to these discussions would have discussed details of the repayment plan more fully.
By: Reporter on February 14, 2009
at 4:00 pm
Kindly refer the aricle published on http://www.sinhala.net on 15th Feb, under ‘These innocent people are crying helplessly’ – Unfair to deprive Golden Key depositors of their capital plus due interest – Ven. Uduwe Dhammaloka thero”
By: Reporter on February 15, 2009
at 8:57 pm
Vipaka( or punishment if we translate to English) is something that will follow a person whether we like it or not.
As an adult, Dr Kotelawela changing his religion from Buddhism to Catholicism is o.k. if he changed through conviction. However, one must never insult other religions merely because he/she has converted to another religion outside the religion of his birth.
I was shocked to hear a story 2 days ago of how a person who applied for a job at Ceylinco was interviews a couple of times and finally selected for the job. The letter or appointment was handed over to this candidate and she was asked to swear an oath as a kind of initiation ceremony before starting on the job.
The place where this future employee had to stand there was a slightly elevated position on the floor and while standing, she felt uneasy about something that might be under the carpet so she stepped down and looked under the carpet to see THE DHAMMAPADA WAS WHAT SHE HAD BEEN STANDING ON! So Buddhists when they take employment with Ceylinco are expected to trample the Dhammapada before starting work with Deshamanya Dr. Lalith Kotelawela!
This particular person was horrified and had thrown the letter of appointment immediately and left without accepting the job.
Can we see how Vipaka, has taken its toll on this Deshamanya for insulting the religion of his birth? It does not matter what or how much assets one has or how many(300 in this case) companies one owns- basic terms of decency must be practised if one is an “exemplary personality”- sadly we see where he went wrong.
By: Darmitha on February 17, 2009
at 4:55 am
Hi,
Do you know any deposites who got paid or money back?
By: Jay on February 17, 2009
at 2:43 pm
To read the suggestions made by Samanmalie and Sapumal , log on to following URL;
http://sinhale.wordpress.com/2008/06/27/sampath-bank-of-sri-lanka-appoints-a-new-chairman/
By: Reporter on February 18, 2009
at 10:54 am
How can any person “……….with a heart” be happy when you see how many victims of this scam are spending their time to attract attention and action from the great Deshamanya sitting on the doorsteps or standing opposite the De Fonseka Place-Duplication Road Junction almost daily, hoping against hope that their ordeal will be over & their investments will be paid back soon.
According to news reports after the last court hearing, it seems that the Ceylinco group (thinking that they are smart) are attempting to mark time without submitting the realistic proposals that the courts have requested them to supply!
By: Darmitha on February 19, 2009
at 5:44 am
He is proposing in reducing all interest paid for last 3years and then refunding the balance. If average Interest were 25% PA, you would sacrifise 75% of your capital to DESHMANYA and get only 25% Back!! He is saying it was a rebate from a security deposit that he gave hence no interest!! Will our courts allow this?
By: setcard on February 21, 2009
at 10:21 pm
Is there a Central Bank in Sri Lanka capable of checking transfer of funds out of the country as past experience of corporate crooks of this nature have resorted to such tactics. There are many in this den of thieves still walking free and have sold their soul to the devil as Kothalawela has done. Beware of the Catholic force, Money Laundering, Prohibitive practices including Terrorist funding that other Ceylinco Group companies have already done or may resort to as a way of buying themselves out. We are a global economy today and Kotalawala has always had a reputation for wanting to take money out of the country, a well-known fact among international financiers. All so-called deputy chairmen and chairpersons should be kept under close watch because just as Kavan and Karunanayake, there is a long list of accomplices doomed to hell such as Renganathen, Sabaratnam, Jayasinghe, Goonewardhana, Ranasinghe, Senanayaka, Ranaweera….on and on who are repugnant body-parts of the man at the helm who has been no more than a rotting corpse with so many skeletons in his cupboard. Hope the authorities will do the right thing to bring justice to the innocent and honest people of your beautiful country who have been taken for a ride by these sub humans who are shamelessly among us.
Fortunately as a Buddhist I know this too will come to past and hope it is not too late for the wrong-doers to mend their mistakes and do justice to the people who have trusted them with their hard-earned life savings and May the Noble Tripple Gem light their path during this dark and difficult times.
Neil-USA
By: Neil on February 24, 2009
at 3:17 am
In an article which appeared in the Lakbima today ( 24th Feb 2009) under the title ” 5 cases filed by a private company against Ceylinco Group Chairman and the Board of Directors”
reporter Ishara Rathnakara states that EAP Property Developers Private Ltd has filed 5 cases against Chairman Ceylinco Group & Chairman Ceylinco Land Exchange Company Deshamanya Lalith Kotelawela and Board of Directors in the Magistrate’s Courts for not honouring repayment of promisory notes to the value of Rs.6o million which have neither been paid back nor the profits accrued as well as for issuing dud cheques which bounced.
The petitioners have sited Chairman Lalith Kotelawela of Ceylinco Land Exchanges Company & its Directors Sicille Kotelawela, Bandu Ranaweera,Bhathiya Samarasinghe, Nimal Bandara, Wasantha Kumara Galaboda, Krishantha Joe S.Fernando, Chandrasiri Kodagoda Gamage, Ajith Rohan Gunawardane, Nirmal de Silva as respondents! The above names have been certified as being Chairman and Directors of the said company by Registrar of Companies and submitted to courts by lawyer Sisira Kumara Siriwardane on behalf of the petitioners. The accused have been ordered to appear in courts on 6th March in this case.
This certainly seems to be a typical case of
” Power corrupts and absolute power corrupts absolutely!” –
Dabbling in big money and playing around with other people’s wealth seems to have been the corporate culture of the Ceylinco Group & the sweet smiling Chairman ” with a heart”- Lalith Kotelawela.
We are also aware from information received from insiders, that Deshamanya( disgraceful to even use this title) Lalith Kotelawela has been siphoning foreign exchange out of Sri Lanka for many many years on the pretext & guise of “payment of employees salaries” of a non-existent company abroad where the money has gone to a confidante of his who has deposited such moneys in the name of another person to play safe with the authorities of that company.
Can we try to understand why he was keen to become an Honorary Consul for Singapore and his wife Sicille Honorary Consul of Cyprus? With this disgraceful scandal, these countries must strip their Honorary Consul status because they are using the Diplomatic immunity enjoyed by such people to carry on their nefarious activities.
In another report which appeared also in the Lakbima of 22nd February 2009 titled ” Inland Revenue Officials Have Also become Multi-millionaires Due to The Golden Key Credit Card Scam” in which reporter Gayan Kumara Weerasinghe states that it has been revealed that Rs.6 billion of the 26 billion of the Golden Key Credit Card Company has been utilized to commence affiliated companies of Golden Key Credit Card Company which totals to 49 such affiliated companies! Officials of Inland Revenue seems to have received “grand bonuses” for helping Lalith Kotelawela.
None other than Lalith Kotelawela & his wife Sicille who is overseas from the time this scam exploded in the news media (who supposedly went abroad for “medical purposes”) but actually doing the balancing act from abroad MUST BE TAKEN INTO CUSTODY for that massive fraud that they have masterminded through the years.
On no account must the Central Bank be sympathetic towards such crooks no matter how sweet their smile is, or how pathetic a picture they try to portray by stating that they are making every attempt to sell of their assets to pay off the investors- which is only a glorified way of marking time.
By: Samanmalie on February 24, 2009
at 2:44 pm
25-2-2009 Lakbima carries another article “Lalith Kothelawela Summoned to Courts-Notice Has also Been Issued to Board of Directors”
Ishara Rathnakara reporting on this Finance & Guarantee Property Developers Private Ltd, a subsidiary company of the Ceylinco Group has failed to pay back Rs.7million deposited with them and had kept on postponing the repayment for which a case has been filed in the Colombo Additional Magistrate’s Courts where the Additional Magistrate Mr.Gihan Ranawake has ordered that Chairman Deshamanya Lalith Kothelawela and Board of Directors to appear in Courts on 13th March and issued Notice.
This case was heard based on examining a case filed by Dinesh Gangadharan, a stock broker agent operating at the Colombo Stock Exchange located at World Trade Centre Building in Colombo.
Witnesses in this case sited are Deshamanya Lalith Kothelawela, D.Mervyn Jayasinghe, Mala Sabharatnam, K.A.S.Jayasinghe, Yasmin Mohamed, Mohan Perera and Samanthika Jayasekera.
Seems to be that the rotten businesses that Ceylinco has been conducting are all oozing out gradually!
By: Samanmalie on February 25, 2009
at 1:01 pm
I feel saddened and depressed to hear the plight of the innocent depositors. However the irony of all this is that scapegoats are being put forward but the king ping remains out of hot water. LKis powerful and has all the money in the world to manipulate the situation even if it means buying out the legal system. If not how can any right thinking legal system can keep LK out of remand while the other little lambs are being sent to slaughter. Think for a moment….. in SL a lot can be done with power and influence and LK has both that (unfortunately)….. i hope the depositors will be payed fast for the sake of humanity!!!
By: Disgusted on February 25, 2009
at 2:27 pm
Golden Key case will be taken up for further hearing today at 2.00 pm at Mt. Lavinia DC. As ordered by the judge Kothalawela should come with a exact re-payment schedule of deposits today.
DSG Jayamaha once said that they are exploring the possibilities of obtaining a court order to arrest Kothalawala on this issue. If they still can not find a suitable/valid reason for it, Kothalawela can now be arrested over the “criminal” charges leveled against him by EAP Property Developers (pvt) Limited by filling 5 cases recently.
According to EAP sources, they sued Kothalawela and co; for not honouring repayment of promissory notes to the value of Rs.6o million which have neither been paid back nor the profits accrued as well as for issuing dud cheques which bounced.
Issuing a cheque to another party without having sufficient funds in the issuer’s bank account is “non other than cheating” and it is a
“serious offence” under the “criminal act”.
DSG , what else do you need to request from court to obtain an order to arrest Kothalaweala at least on 6th March when EAP cases come up for hearing ?
By: Lawyer on February 26, 2009
at 8:51 am
HA HA HA LOL he is remanded!! At Last his story of deducting interest and paying has been thrown to the dustbin!! Now Lalith bring in the bucks from ofshore accounts in Singapora and Malaysia!! 30 000 Jobs of Ceylinco are in danger, sell every thing to save those jobs. You claimed to be a Catholic and shamed our religion, dont ever bring in your faith to redicule other religions and prospor your business.
By: setcard on February 26, 2009
at 7:16 pm
Dr.Deshmannya Kotalawala and another director Padma Nandanikumar were remanded till 11th March 2009.
By: Reporter on February 26, 2009
at 7:18 pm
Retribution comes in many ways. First he tried to put the entire blame on Kavan Perera and pushed him into accepting guilt & got him arrested with a couple of other loyal servants of Lalith Kothelawela; then he and who ever advises him on legal matters tried to hoodwink the District Court Judge by supplying false information about the number of victims who needed to settled; then he gave a press conference and stated quite openly that the amount defrauded was not Rs.26 billion but less than half that amount; then his stooges apparently attempted bribing Inland Revenue Officials; then he & his wife also used their diplomatic status of Honorary Consuls of Singapore and Cyprus to siphon out money from Sri Lanka to ofshore accounts; then they thought they were smart and gave vague plans about settling their victims with an intention of willfully prolonging the settlement process; on the pretext of paying salaries to bogus companies overseas siphoned money out of this country to their confidante contact overseas to be deposited in an overseas bank/banks under names that cannot be linked to him or his wife-again intentional cheating of all authorities both here and abroad; last but least his absolute contempt for Buddhism and the way he has been showing it openly have all added up his massive Karma Vipaka which dropped him hard of the floor to return to reality that Ditta Dhamma Vedhaniya Karma takes it’s toll in this life for everyone to see- result though sad for this egoistic “philanthropist with a heart” was that he was remanded today until 11th March.
May be that this punishment will open his eyes to the humiliation he schemed and brought on his own loyal staff whom he used as pawns in this game & also that he must follow the teachings of the Bible ” do unto others what you would have others do unto thee!”
If the counties that still consider these two husband and wife combination of Honorary Consuls for Singapore and Cyprus they had better consider seriously what will happen to the reputation of these two countries by continuing to keep them in those positions?
We sincerely do not hope that the good names of other countries should be misused by crooks such as these and again, let us hope that all Sri Lankans will not be judged by the same yard sticks used on the Kothelawelas to judge genuine citizens of this country.
Money can buy materlialistic comforts but it cannot buy respect and dignity- these have to be earned sincerely!!
By: Darmitha on February 26, 2009
at 9:57 pm
Lalith Kotelawala has been admitted to the prison hospital today.
By: Reporter on February 27, 2009
at 4:27 pm
Now to the more comfortable Merchent Ward at general Hospital….. still no signs of activity of fund trnasfers from abroad. His office was also closed.
By: setcard on February 27, 2009
at 10:52 pm
There was a sale of 228Mnworth of Ceylinco Ins Shares. There is also news that Ajith G of Ceylinco Ins is refusing to give or sell more out in order to have some thing left over. Even his Chief legal officer “Wellampitiya Lady” is still of the view that this could be fought out in higher courts and they could get away by paying a pittance. They know that the Ceylinco name is gone and just want the pickings even at the cost of their beloved Chairman. What a shame……..
By: setcard on February 28, 2009
at 6:53 pm
Sometime back I wrote an article “Insurance Schemes or Insurance Scams.”
My concern was the frauds perpetrated by Insurance companies. The worst of the Life Insurance Companies, that make a hue and cry as to their reaching billion rupee mark in life insurance is Ceylinco Insurance. Once they know the policy holder, has no punch, political, wealth or otherwise, the poor policyholder has to suffer the consequences of all the technicalities that an Insurance company could muster to stop paying the claim.
The worst is Ceylinco Life Insurance headed by R. Renganathan who seems to be living on the miseries of the poor.
It would not be
By: M.Z.M.Nazim on March 1, 2009
at 11:07 am
Continuing ..
The government or any authority who has the power should look into this institution under the Ceylinco Group as well.
Moreover, they have opened up among others, two other institutions, The Ceylinco Profit Sharing and the Ceylinco Global Profit Sharing Investments Ltd.,
Why the Central Bank look into their finances as well.
By: M.Z.M.Nazim on March 1, 2009
at 11:10 am
I got to know that Mervyn Jayasinghe is in Nawaloka Hospital
By: Nuwantha on March 1, 2009
at 9:58 pm
Dear Mr.Nazim,
I think you are the former Director/GM of HIS Ltd. It is glad to hear some comments from a much respected/reputed giant in the insurance field.
I can still remember your article on “Insurance Schemes or Insurance Scams.” which was published on “Sunday Times” on 17th September 2006.Your opinion on the above and the issues raised by you are very much relevant to the current crisis of the insurance field in SL.
We all know that there is an insurance governing body in SL by the name of IBSL. But I doubt very much whether at least IBSL realized what you mentioned on that article. If they realized, they would have taken prompt actions to avoid these types of things happening in future.
Even on the finance companies, situation is same. Once the rouges like Sakvithi, Daduwam, Golden Key, F&G, played out public funds only CBSL realizes that there are many such institutions running in this country with out having proper approval and the registration under the Finance act.
My question is why CBSL and/or any such governing body wait until some thing happening to open up their mouths and eyes?
Because I still believe, “Prevention is better than cure”.
Would you agree with me, Mr.Nazim?
By: Lucas on March 2, 2009
at 12:18 pm
Nuwantha, it is better to have a full medical checkup before being put him into cell like his boss.
By: Reporter on March 2, 2009
at 12:22 pm
I heard that the prison officials have not cuffed him to the bed. Is this against regulations? Can we take actions against this? His office says that now they can not give a repayment plan b cos the depositors put him in Jail!
It is a big joke, its the law that put him there cos he stole money from GK so Chairmans office get your words correct. Call 0112 550 800 Laliths office to here this version.
By: setcard on March 3, 2009
at 8:47 pm
I recently heard that The FinanceCo Ltd turned down many requests from their savings and FD account holders to withdraw money from their respective accounts.
Furthermore, the ATM cards provided for their account holders to withdraw cash were inactivated by TFC.
GKC, F&G and now TFC account holders are in deep trouble.
Ceylinco Ins. Policy holders get ready to be in the same boat!
By: Kamal on March 3, 2009
at 10:08 pm
Yes, Kamal your information is correct.
This is the latest at TFC – LOLC will take over TFC very soon.
LK is loosing one after the other!
By: Chulani on March 4, 2009
at 1:08 pm
In the past, Ceylinco owner “Dr. Deshamanya” had the audacity to get his stooges to call newspaper editorial staff as well as the TNL and threaten them that if they broadcast or print any articles which “would harm the good name of Ceylinco” that Ceylinco will not give any more business to such media orgs, TV channels or newspapers.
Therefore, journalists were afraid to write and publish any unfavourable articles against the Ceylinco group because their bosses would pull them up if they did so!
Had journalists written about information they received, they might have been able to avert the massive destruction which is self inflicted by top executives of the Ceylinco to their own organisations!
What is deposited in a bank by an account holder must & should be available any time such investors need to withdraw of moneys they deposited in their accounts- this is simple logic. It is grossly unfair that these unsuspecting people are made to go on their knees to plead to recover what they themselves deposited to be used for a rainy day!!!!!!!!!!
Seems to be that the top management has embezzled other people’s money for them to ” make hay while the sun shine”
Having resorted to all the unsavoury activities to cheat people, it is only another insult for the likes of Lalith Kothelawela, to pretend to be “sick” only when he has been caught with his pants down and remanded by the Magistrate- until then he was perfectly healthy and well.
Dishonesty stinks to the core!
By: Darmitha on March 4, 2009
at 9:02 pm
Mar 04, Colombo: Demanding the last month salaries, the entire staff of the troubled Golden Key Credit Card Company have decided to stage a protest campaign in front of the residences of its directors.
Issuing a statement today, Wasantha Samarasinghe, President of the Inter Company Employees Federation, a union backed by Marxist Janatha Vimukthi Peramuna, said that the entire staff in the company had not yet received any salaries, overtime, and other payments for February.
Giving six days as relief time they have demand the directors to pay their salaries before the 10th of March.
All 512 workers of the company including security guards will join the protest campaign decided to be held in front of the houses of its directors.
Sri Lanka courts recently remanded the Chairman of the company, Lalith Kothalawela
By: setcard on March 4, 2009
at 9:34 pm
Why Dont the employees and F &G Depsoitors have a masive Joint Protest!!
LK is supposed to have Lkr 65BNin ofshore accounts. If it is true the govt should put him out of the Merchant Hotel and Back to the Cell, so that he will bring this money in and it be invested in TB’s for 6 months with depositors getting the TB rate and whithdraw at maturity. We do not need huge IMF bail out after all!!
By: setcard on March 4, 2009
at 10:32 pm
The construction work of new houses in F&G Country Homes housing scheme at Thalahena came to a halt about four weeks ago due to lack of funds. The worker’s and suppliers have not been paid. I got to know that F&G have now merged with Mercantile Credit and after that the construction work at Country homes site has resumed. So they must have received new cash injection. Does anybody know about this?
By: Thilak on March 5, 2009
at 3:46 am
It is not surprising that Drs Mr & Mrs Lalith Kothelawela have $/Rs.(?) 65billion in their offshore accounts as Setcard mentions above. For years they have been siphoning money out of this country to unknown accounts.
From those accounts, they could very well have used some portion of it to funding LTTE terrorist activities or pumping money for those activities.
Central Bank can intervene to put the depositors at ease BUT the GOSL must not make the mistake of using State Funds to save the Lalith Kothelawela family or their businesses! The GOSL has no obligation to do so at all.
Let us hope that the Courts will give an order for the Kothelawela’s to bring that offshore money and pay back the depositors instead of sitting back in the National Hospital (again at State Expense) while the wife is manipulating their funds overseas-again on medical grounds!
Even if they have to sell ALL THEIR ASSETS it does not matter-they if they truly are true Christians/Catholics must be honest to say they embezzled their clients and pay back the money due to them as a show of their destroyed honesty and good will!
To think that even the honest name of Dr. Younus of Bangladesh has been used by these crooks who used “Gramaen ” as a front for their illegal activities is truly a shame. Dr.Younus used his Gramaen concept to help poor people on the streets to begin self-employment projects charging a small 2% interest while Dr. Lalith Kothelawela charged a massive 20% interest to fill his own kitties!
By: Samanmalie on March 5, 2009
at 6:03 am
Far as I know Merchant bank has not put any money into F&G, infact they will charge F&G a managemet fee! I also know that F&G companies has stopped payment any kind (interest & capital)!
F&G are expecting funds from CB in a couple of weeks and they are supposed to publish a payment plan, I have my fears about all this, I think they are cooking up a suprise for the poor depositors, trying escape from paying their dues…
I call upon all F&G depositors NOT to accept any criminal payment plans…
If anyone has cheques which have bounced, my strong advice is to consult a lawyer and file action against the company as they are hiding our money, I have got to know that F&G has a company in Australia where funds have been sent!
Do NOT accept any compromise, demand all your due deposits and interest to be paid in full!
DO NOT AGREE TO RE-INVEST WITH THESE CROOKS – they have broken the law and trust of the people and must not be allowed continue a day longer!
By: Peter on March 5, 2009
at 8:50 am
A motion has been filed at Colombo High Court today requesting Kotalawala to be released on bail.
High Court Judge issued notice on CID and AG to appear in court on 11th March in this regard.
By: Lawyer on March 5, 2009
at 3:12 pm
Is not 11/03 the day the Mount Lavinia Case is on?? So If CID and AG have to attend High courts on same day what happens to Mt Lavinia Case?
By: damith on March 5, 2009
at 9:52 pm
Mt.Lavinia case will be taken up for hearing on 6th March 2009.
Bail out application was submitted to HC.
By: Kamal on March 5, 2009
at 10:19 pm
I just got know that Mrs. K. is back in SL!, does any one have more info?
By: Peter on March 6, 2009
at 1:14 pm
F&G news, I got konw that depositors will not get their money back for matured deposits as promoised, they will be forced to renew for a minimum period of 12 months at the new interest rates set by Merchant Bank!!, much lower than F&G. I think it’s high time for leagel action against F&G directors…. they a bunch of crooks worst form of life on earth… they have to pay back or suffer…
By: Peter on March 6, 2009
at 1:20 pm
May be you are correct, Peter. Just go through this new post published on Sinhale Hot news today.
http://sinhale.wordpress.com/2009/03/06/kothalawalas-wife-steps-down-as-consul-for-cyprus/
By: Kamal on March 6, 2009
at 1:44 pm
Hi Guys From what I understand besides LK the main person behide all this who is telling LK not to pay the depositors is one of Golden Key Director Mrs Padmani Karunaratne, she has opened her big mouth recently that none of the depositors should be paid since they enjoyed huge rebates from GK. We must ask her what about the extra perk’s, properties & Vehicles all Directors of GK and other Ceylinco Companies enjoined for the past several years which is estimated that each Director is worth overRs One Billion all this must be seized by the state to safe guard the depositors and the employees
By: Suraj on March 6, 2009
at 5:09 pm
To read the details about yesterday’s case, please click the following URL,
http://www.dailynews.lk/2009/03/07/news30.asp
By: Reporter on March 7, 2009
at 7:23 am
If Honorary Consuls of a country are upto this kind of fraud, can you imagine how they are insulting the country they represent? Do you think Sicille Kotelawela would have sent in her request to resign from the post of Honorary Consul for Cyprus without her being asked to do so?
It could also be, that while she “was sick” and obtaining medicineabroad, she already attended to all she had to do to move the deposited moneys in other countries to safer places & that work is now complete so she has no further use of being an Honorary Consul?
It is specifically because as Suraj says above, that Ceylinco Directors are earning big money ansd swindling it, they do not understand the pains that unsuspecting and innocent(most of them atleast) investors and their savings have been abused because those top leaders do not understand the pains that ordinary people feel at losing their investments!
By: Samanmalie on March 7, 2009
at 9:32 pm
One of the Dep Chairmans who is a Silva has a wife who is an AGM at Sampath Bank. He transfered all his assets to her using a lawyer by name of Samanmalie who is also working at Sampath Bank. CID should look into this. Looks like all others are doing this to avoid paying.
By: Winne on March 8, 2009
at 1:50 am
According to what Winne states above, it seems that if one has connections, they can escape anything!
Do any of these officials think of the plight of the innocent? They do not have connections, therefore have to spend long hours down Duplication Road to be humiliated by the Ceylinco Group Company officials who keep on telling fibs to mark time.
Why don’t the so called “Human Rights Mongers” come forward on behalf of the human rights of the victims of the Golden Credit Card Scam and all other frauds within the Ceylinco Group?
By: Samanmalie on March 8, 2009
at 6:08 am
Ceylinco Insurance PLC has announced the appointment of Messrs. Rajkumar Renganathan and Ajith Gunawardena as Joint Deputy Chairmen of the company.
Renganathan was previously Chief Executive Director of Ceylinco’s Life Division while Gunawardena was Chief Executive Director of the General Insurance Division, both having headed operations of these two divisions since the inception of the company in 1988.
To read more about GKC depositors and GKC employees, kindly click the following URL;
http://www.island.lk/2009/03/08/news13.html
By: Reporter on March 8, 2009
at 7:20 am
Winne,
I think you must be refering to Mr. Hiran K. De Silva who is a deputy chairman at Ceylinco Corporate Finance Group.
If anyone knows who is his wife working at Sampath Bank, please disclose.
By: Reporter on March 8, 2009
at 8:10 pm
lalith kotalawala would have been nobody if the buddhist majority decided not to invest or do any kind of business with his companies at the time the cases described in TFA above were disclosed.anyway now its done. i ‘ (during that period )with some of my friends ,tried to convince lot of people to avoid his group.however in this case, since lot of powerful people have invested a lot of money, it appears like kotalawala is in trouble, else he would have stepped out of this using his connections …. you know…. its sri lanka!
By: Dhammika on March 9, 2009
at 10:23 am
Hiranthi De Silva is the only female AGM working at Sampath Bank.
She is the AGM- Corporate Credit.
Ms.Samanmalie is a lawyer and working at SBL legal division.
By: Investigator on March 9, 2009
at 4:47 pm
There’s another important fact about scams that LKR. 55Mn has deposited by EAP Property Developers Pvt Ltd at Ceylinco Land Exchange & when Ceylinco Land Exchange Company is not settling their deposits EAP Property Developers went to courts for recover the same. Unfortunate story behind this case is “EAP Property Developers Pvt Ltd is also a company accept deposits from public paying 24-27% interest per annum without registering at Central Bank.(Illigally get Fixed Deposits from public & issue a certificate mentioning, it’s a loan from the depositor)
Why does Central Bank keep silence without asking EAP Property, from where did they get such big amount to deposit at Ceylinco Land Exchange without investing in their group of companies.
EAP Property has invested millions of deposit at Ceylinco group, since Director/General Manager of EAP Proerty Developers, Sujeewa Lokuge is ex-employee of The Finance & Investment Manager,Ms. Rasangi is ex-employee of Finance & Guaranty. They deposit money in Ceylinco group at 30% p.a. interest & get 2% introducer commission from Ceylinco companies, which directly goes to Ms. Rasangi and later Mr. Sujeewa & Rasangi enjoy the sum.
Summerising the same the outcome is ” Illegal Financial Institute (EAP Property Developers) file a case against a Falling Finance company (Ceylinco Land Exchange), but God Father of Public Depositors (Central Bank) still waiting without taking any action against EAP Property Developers. Do they only want to come to the scene when another company collapsed or scared to investigate the same since another Deshamanaya “Dhanapathiya” Mrs. Soma Edirisinghe is involved in this scam?
By: Mohan on March 10, 2009
at 11:30 am
Today two cases to be taken up for hearing regarding Lalith Kothalawala. One is at Mt.Lavinia DC relating to GKC and other one is at Colombo HC.
Colombo HC will hear the motion submitted by Lalith Kothalawala requesting bail for him.
Will see in the aftrenoon, what would be the result.
By: Lawyer on March 11, 2009
at 10:36 am
Latest at Colombo HC
More than 200 GKC depositors staged a mass protest against Ceylinco Chairman Lalith Kotalawela today in the morning, in front of the statue of late President Ranasinghe Premadasa at Hulftsdrop.
By: Reporter on March 11, 2009
at 11:02 am
Please log on to following URL to check the Swindlers list ,
http://www.lankaenews.com/English/news.php?id=7265
By: Reporter on March 11, 2009
at 1:16 pm
After considering the motion submitted by Kotalawela’s lawyers requesting bail for their client, Colombo High Court Judge Ms.Wijesundera ordered AG to file objections if any, to the above motion on 26th March.
By: Lawyer on March 11, 2009
at 1:46 pm
sonali sona you can look
By: mr bernard fernando on March 11, 2009
at 6:30 pm
Hi Guys , does any of you know what happened at
Mt Lavina MC ?
By: suraj on March 11, 2009
at 6:59 pm
Kotalawela didn’t appear in any of courts today. He has submitted a MC from a NHSL doctor to confirm that he is sick and not be able to appear in court.
However that was challenged by the DSG and Mt.Lavinia Judge ordered Colombo Chief Forensic Medical Officer to examine him and submit a report.
Mt. DC Judge today further issued an stay order by preventing selling and/or transferring any asset belongs to GKC.
Meanwhile, the lawyer appeared for Ms.Kotalawela said in court today that his client is sick and hospitalized in Singapore at the moment. She was advised by her doctors not to fly to SL and therefore she couldn’t attend to court today.
By: Lawyer on March 11, 2009
at 9:23 pm
I wish that we could have more support for the next rally we have. There are 9000++ depositors please come join in our efforts…………. if there is any one else who would like to show your protest against this cheater join in…….. I saw that the Catholic Clergy has also been taken for a ride!! Bishops and Fathers you could bring your flock and join in, we have to show Sri Lanka that all Christians are not evil like Lalith and even the church was taken for a ride. Lets join hands to put this man behind bars for life!!
By: setcard on March 13, 2009
at 7:33 am
Good effort! Setcard.
If you can announce the date, time and the venue of the next “Protest Campaign” against so-called “Deshamannya”, by the way of a comment to this forum, that will be useful to the depositors already participated in such protests as well as to those who are willing to join with you in future protest campaigns.
Thanks.
By: Kamal on March 13, 2009
at 10:30 am
23rd March at 9am in front of GK office.
By: setcard on March 13, 2009
at 9:22 pm
This traitor DeshaAwamannya Ceylinco Mudalali with the help of his company called “Tanks preservation comany limited”is distroying irrigation resevoirs by mining reservations of tanks where environmetally very sensitive, for extration of sand for selling.This basterd is washing excavated soil with water in the reservoirs and sending back mud water in to the reservoirs so that the the irrigation systems will be distroyed in near future.He has bribed some famer leades politicians and irrigation department officers to get the support.We wish that he will get a heart attack very soon and die and meet Ymaya in Apaye.The paddy famers might treat him with their mamoties in near future.
By: King Parakramabahu on March 14, 2009
at 12:12 pm
Farmers Patriots come foward and join us on 23rd!! We were fools to trust him. But lets not let him do this to other Sri Lankans in the future!! Lets show our united striength!!
By: damith on March 14, 2009
at 6:52 pm
Lawyers representing Golden Key depositors and the counsel for Ceylinco Consolidated Chairman Lalith Kotelawala are scheduled to meet at the Attorney General’s Department this week to map out the long-delayed and much-awaited repayment plan to grant relief to suffering depositors.
The counsel for both parties will meet in consultation with Attorney General (AG) Mohan Peiris and Deputy Solicitor General (DSG) Sarath Jayamanne at 2 pm on Wednesday, March 18, 2009, as agreed before Mt. Lavinia Magistrate Harsha Setunga, when the case came up for hearing again last week.
By: Reporter on March 15, 2009
at 8:33 am
Setcard,
Please repeat your “Notice” on 22nd and 23rd for better results.
Good luck!
By: Kamal on March 15, 2009
at 8:39 am
The government has launched an investigation into reportedly massive sums of money being taken out of the country against the law by Ceylinco Consolidated chairman Lalith Kotelawala on several occasions, say reports.
Last December, the chairman had allegedly received more than Rs. 260 million as Christmas bonus, in addition to more than Rs. one million drawn as the monthly salary.
Golden Key Chief Executive Officer Kavan Perera had allegedly been paid Rs. 6.5 million, while Cecile Kotelawala and Lalith Kotelawala had received Rs. 3.5 million and Rs. 1.5 million respectively.
The Foreign Exchange Control Commission is probing the claim, in which the cash outflow is estimated at more than Rs. 26 billion, the figure lost by depositors at Golden Key Credit Card Company.
Golden Key had a total of 9,054 depositors, with the highest individual investment being Rs. 200 million by an individual named Milton Karunaratne.
By: Reporter on March 16, 2009
at 10:09 am
Now they say they have 4bn and could pay deposits below 2mn, that is the proposal to be given 2 AG on 18th. Nothing about the rest!!! They should pay every one on proreta basis. Inform how much they have got as an offer for Seylan, the Ceylinco Building, I also know that Insurance has got some very good offers, that could sort every thing, but they are selfish to sell it out!! Come on Ceylinco you can not pick AND choose you have 2 pay the depositors and get your man out of the Merchant Ward!!
By: setcard on March 16, 2009
at 11:24 am
Several Golden Key depositors are occupying the Ceylinco ‘6th Avenue’ apartment at Thimbirigasyaya today. They forcibly took over two floors of the newly built apartment complex and said they will not leave the complex unless their deposits are refunded in full.
By: Reporter on March 17, 2009
at 4:50 pm
please update me if anyone knows abt Ceylinco Investment & reality , bcse they did not pay pre matured now , i have 3 million with them.
this is registered under CB but situation is so bad ,they can not pay at least 5000/=from saving A/C to the customer.
By: De Silva on March 17, 2009
at 11:17 pm
According to yesterday press confernce of Finance @gurantee they will pay 75% from the capitol with over a six months period. Otherwise
depositers has to extended for another one year
This is a regualtod finance company and i cannot understand whats is the meaning of regulator
any way now the depositers benifits is cost of the dposit not the return on investment
By: vijitha on March 18, 2009
at 12:09 pm
AG has not turned up for 18th March meeting and it is now to be on 19th at 7 PM. Hope Lalith’s people come out with some thing workable? What news of Hiran Silva and Sampath Bank wife(AGM) asset transfer? Any on knows if this is true?
By: damith on March 18, 2009
at 10:48 pm
Lankadeepa Paper has refused to publsih a add regarding the 23rd Protest rally. Please pass the word around….. so much for press freedom!!
CEYLINCO INSURANCE seems to have bought its own shares from The Finace and is blocking Lalith from selling a controling stake according to internal sources of Ceylinco. The Employee trust own a controling stake so that Ajith’s and Rengas high paid jobs are safe.
By: setcard on March 19, 2009
at 9:10 pm
All trhe DEP CHAIRMANS and DIRECTORS of CEYLINCO related companies are rougues having earned tonnes of money through influnence nad mlapractices and most of them are BILLIONAIRES having valuable properties in sri lanka and OVERSEAS.
IT is open, anyone can inquire and see , what they have been doing they reserve the best block/house of any without paying a single cent nad the PROJECT COST WOULD BE BORNE by the customers.
I would be glas to see a single project done in a transparent manner.
They do all that thinking that is their property nad money.. they do all that with our money… we are affected and languised..
CID AND AG office must be aware of all that.
JAY
By: jay on March 20, 2009
at 10:02 am
Many articles have appeared in the Sunday newspapers of 22nd March 2009 about the famous but now disgraced Lalith Kothelawela.
The LakbimaNews(English) of 22nd March carried a small column on the first page ” Desha-Bindu Kotelawela” in which it says (quote)”victims of the finance companies belonging to Ceylinco Consolidated are planning to urge Prsident Mahinda Rajapakse to withdraw the “Deshamanya” title given to Lalith Kothelawela. These titles are conferred by the State on distinguished citizens. They say that a person of the calibre of Lalith Kothelawela who has defrauded billions of public money was not entitled to such a title, and that it should be withdrawn forthwith.
We don’t want Kothelawela on the country’s most distinguished citizens list as Kothelawela has betrayed the trust we had in him, ” and investor said……………………..(end quote)
This sentiment is ofcourse absolutely true whether it be Lalith Kothelawela or any other person. Before such an Honorary Title is given to any citizen of this country, the head of state must check all credentials of an individual so that only individuals who are completely above board, are honoured with such titles. In the past, any Dick,Tom and Harry earned these titles for no earthly reason.
Even when conferring Honorary Doctorates the same standards should be established or else, on what criteria did Lalith Kothelawela earn the Doctorate from Sri Jayawardanepura University to be called “Dr.”?
It is truly sad that Honorary Titles such as Deshamanya and Dr are being insulted in this manner by those using such titles!
Sri Lanka certainly deserves to have high profile & high calibre personalities being conferred with these titles and not crooks with bloated egos trying to project a humanitarian and “all saviour” public image.
Using his charm, he even had the privilage of accompanying The Presidential entourage when President visited China- what a shame. All Lalith Kothelawela wanted was for him and his wife to enter China to try to get business contacts and hoodwink even the Chinese-fortunately we hope, the Chinese government is not as foolish as some of our own state organs and individuals who fell for his external image.
How can a man who openly declared that he supports the LTTE terrorists be named “Pride of the Nation”( Deshamanya” ?
By: Darmitha on March 23, 2009
at 5:30 am
Hi Guys , If what Reporter says i.e. Hon. Supreme Court Orders Not Only Golden Key But its Directors and Ceylinco Consolidated from selling or Disposing any Assets then you will die reading the list………….
Seylan Bank PLC
Seylan Merchant Bank Ltd
Ceylinco Development Bank
Ceylinco Saving Bank
Ceylinco Insurance – General
Ceylinco Insurance – Life
Asian Finance Ltd
Asian Investment & Factoring
Ceylinco Leasing Corp
CSF Money Brokers
Ceylinco Stock Brokers
Ceylinco Pensions
Ceylinco Grameen Credit Co.
Ceylinco Securities & Financial Services Ltd
CT & FC Portfolio Management (Pvt) Ltd
Finance & Guarantee Co. Ltd
Ceylinco Investment & Realty Ltd
Seylan Asset Management Ltd
The Finance Co.
Ceylinco Shriram Securities
Ceylinco Capital Investments
Ceylinco Shriram Capital Management Services
Ceylinco Profit Sharing Investment Corp Ltd
The Golden Key Credit Card Co.
Ceylinco Building Society
Ceylinco Developers
Ceylinco Limited
Ceylinco Land Exchange
F & G Real Estate Ltd
Ceylinco Prosperity
Ceylinco Seylan Development
Serene Resorts
Ceylinco International Reality Pvt Ltd
Ceylinco Homes International (Lotus Grove)
Ceylinco Homes International ( Lotus Tower)Ceyhomes Credit & Investment Co. Ltd
Finance & Guarantee Property Developers
Ceylinco Travel & Tours Ltd
Ceylinco Universal Ltd
Ceylinco Hotels
Fingara Town & Country Club
Hotel Ceysands
San Michele Island Resorts
South Asian Travels
Cisco Information Security Services Pvt Ltd
Ceylinco Cisco Security Corp.
Ceylinco Computer Forms Pvt Ltd
Ceylinco Digital House Pvt Ltd
Ceycom Global Communication Ltd
Ceylinco IT Solutions Pvt Ltd
Ceylinco Micro Technologies Ltd
Ceylinco Networking Technologies Ltd
Ceylinco PLC Technologies Pvt Ltd
Ceylinco.Com
Golden Key Call Center Ltd
Golden Key Software Solutions
G K Card Technologies Ltd
IC & CS Software Solutions
Lanka Ecom Technologies Ltd
The Golden Key Company Ltd
American National College
International College of Business & Technology
St. Nicholas Education Services
Ceylinco Insurance College
Ceylinco Sussex College
Net Assist International
Ceylinco Swift Care
Ceylinco Home Nursing
Ceylinco HealthCare Services
Ceylinco Universal Services Ltd
Ceylinco Pharmaceuticals
I dont know if I missed any more Companies Maybe someone can let me know if I did Miss out on any? If what we hear about the Order given by Hon. Supreme Court is true , dont all the above mentioned companies freeze any ideas of selling or transfering any of their Assets ?
By: Suraj on March 25, 2009
at 5:15 pm
This is to inform all F&G depositors that there will be a meeting held at 2pm tomorrow (Thu 26th March) at the independents sq to discuss a plan of action against the crazy payment plan …. pls try to attend……………..
By: Peter on March 25, 2009
at 8:16 pm
Colombo High Court Judge Deepali Wijesundera yesterday refused bail for Ceylinco Consolidated Chairman Lalith Kotelawala and ordered him to be remanded till May 4th.
Deputy Solicitor General Sarath Jayamanne, objecting to the bail application, told court that there was strong evidence to link Kotelawala with the financial misappropriation at the failed Golden Key Credit Co and that he was a suspect in this case at the Mount Lavinia Magistrate’s Court.
Deputy Solicitor General Sarath Jayamanne yesterday told the Mt. Lavinia Chief Magistrate Harsha Sethunghe that Ceylinco Chief Lalith Kotelawala through C. R. de Silva, PC, had informed the Attorney General’s Department that he was ready to credit Rs. 14.5 billion to the proposed Trust set up under the AG’s Department to refund the depositors of the ill-fated Golden Key Credit Card Company. But no final decision had been reached, he said.
The case will be taken up for hearing on April 23rd.
By: Lawyer on March 27, 2009
at 8:42 am
Dear Lawyer, the fact remains that he says that Goldenkey assets are worth 7Bn and he would put in another 6Bn from Seylan salte and another 1.5BN from sale of 9floors of the Ceylinco Building. The 7Bn valuation is highly questionable!! Companies like Golden Key Travels are valued at 10Mn!! It is a Joke!! He wants to transfer these assets to the “Trust” he is proposing and wants the “Trust” to raise the money, so that he can wash his hands off and get away by playing every one over again.
The Fact is that he has got good offers for Insurance Co, which is enogh to settle GK and F&G twice over!! But greed of those around him are not letting this happen!
Central Bank wants to sell his stake in Seylan for 5.7Bn, so already his commitment of 6Bn from sale of Sealan is down by 300Mn!! Please read this …….
Sri Lanka seeks Rs5.7bn for stake in Seylan Bank
March 27, 2009 (LBO) – Sri Lanka’s central bank has called for proposals from investors to invest 5.7 billion rupees (about 50 million US dollars) to take a 33 percent stake in Seylan Bank, part of the troubled Ceylinco group.
Expressions of interest (EOI) have been invited from local or foreign parties interested in becoming a “strategic partner” of Seylan Bank, the island’s fifth largest commercial bank in terms of assets with a seven percent market share.
Apart from the initial capital injection, a further investment in debentures of Seylan Bank is also expected, the regulator said in a newspaper advertisement that called for EOIs
The central bank in December 2008 put Seylan Bank under the management control of state-owned Bank of Ceylon after a “major scam” was uncovered within an unlisted firm of the Ceylinco group to which Seylan belongs, it said.
It described Seylan as a systematically important bank with a network of 93 branches and business focused on corporate and retail lending, including the small and medium enterprise sector, as well as overseas money transfers.
The strategic investor would be required to reduce their ownership of Seylan Bank to 15 percent in accordance with regulations on ownership limits on banks.
The central bank said that the investor would be given 15 years to do so given the “exceptional circumstances” under which the investment is sought.
Seylan Bank’s main shareholder, Ceylinco group chairman Lalith Kotelawala, has offered to sell his stake in the bank to raise funds to pay off depositors of Golden Key Credit Card Company, the unlisted group firm that collapsed late last year.
Kotelawala has been remanded over fraud allegations at Golden Key and has offered to sell other group assets to raise funds to repay depositors.
The central bank advertisement said the deadline for submitting EOIs for the Seylan Bank stake is April 15, 2009 with investors being notified of the outcome of their applications by April 24 and selected investors being expected to make formal bids by May 7.
A final decision by the central bank will be made by May 20 and the investor is expected to inject fresh capital within two weeks of being chosen, the central bank said.
By: damith on March 27, 2009
at 3:58 pm
Ajith G, Jegasoothy, Renganathan, Sanka Wijesinghe and a few more are in this together….I think all of them will have to be investigated and Ceylinco Group has to come under government purview
By: Malwana Sirimevan on March 29, 2009
at 5:49 pm
I like to tell all of them that the entire Board of Ceylinco Group are a bunch of despicable liars
By: Malwana Sirimevan on March 29, 2009
at 5:51 pm
These ‘Depositors’ were the ones trying to defraud the government of collecting taxes on interest earned. Now they have the privilage of AG’s Dept. Central Bank, The CID, The District Court and The High court all working for them. Government employees putting in thousands of man-hours to bring them justice. Ironic isn’t it? The very Govt. that they were trying to defraud is the only entitity who is there for them.
And the ‘Goverment’ is the’People’. So when you go to it for help you identify yourself. And the information you provide to the government becomes public domain. Then the ‘people’ have the right to ask further questions and investigate, as in this case where, how and when these funds were raised by the each individual. Is there any outstanding issues of other taxation that needs to be looked into ect. I am sure most of it is quite legitimately earned. Some of you may have been just foolish or greedy or both. But 30% interest. Come on.. I don’t believe it needs to be spelled out here. Its a classic case of a two edged sword.
However it looks like the entire Finance Company business in Sri Lanka is in for quite a ‘Spring Cleaning’. Nothing will be left under the rug. After all the IRS has your number now!! There is going to be a lot of unaccountable ‘black money’ turning up. I would be running a bit ‘scared’ especially if I were a resident in Sri Lanka and my name was on these lists floating around, and beware thoes on foreign passports. You could well end up in that stinking hell hole at ‘Welikada’ too. Then maybe the Embassy staff of your adopted country can also earn their keep trying to get you out. After all you diligently paid taxes to thoes guys. Correct? Friends in high places are not going to be able to use influence on this one. Case and point. Lalith Kotalawela. Then of course he is crook, right?…….
By: Deepthroat on March 29, 2009
at 10:45 pm
Well Deepthoat, I got a rate of 24%, which was 3 % more than the Bank rate at that time. The credit card gave me additional purchasing power with interest free payment options up to six months with selected merchants. The money was never “Black” it was hard earned legal money for your information!! I and many of us would have no problem in paying taxes, like the payee taxes we paid our entire working life, we would be grateful to this Govt for using its resources to help recovering this money, glad to see our tax money working!!! Please do not enjoy our suffering……… you do not know what it is to be a private sector pensioner who invested his all and to have sadistic people like you and the good Folk at the Sunday Leader label us and shame us!! We at times want to commit suicide when we think of what has happened….. No Sir I slogged for many years, payed my taxes and this was some thing I left to live by my final years without being a burden to any one. Very sorry my dear,,, we made a mistake in Judging Lalith K, but please please put you selves in my shoes………..
I am sure that I speak for many of us, so have a heart Deepthoat the pain has been sooo bad, DO NOT MAKE IT WORSE FOR YOUR SADISTIC PLEASURE!!
By: damith on March 30, 2009
at 9:03 pm
Dear Damith,
“Deep throat” seems to be another buddy of Kotalawala. Never mind, since he is in the cell, let “Deep throat” to talk on behalf of Kotalawala.
“Deep throat” did talk about tax fraud by the GKC depositors. Everyone knows that if a depositor exceeds his/her annual income over Rs.300,000.00, he/she is liable to pay with holding tax on the interest income. That is why the banks and other finance companies always ask for a tax declaration from each and every depositor.
If you declare your annual income in between 300000 to 600000 you have to pay 2.5% on interest income and if you exceed the higher limit, no option you have to pay 10% as WHT. Also if you are earning less than 300000 per year, no WHT will be deducted.
At the time of the opening of the FD, the respective bank or the finance company MUST get that declaration from the respective depositor and if the depositor refuses to declare the income, he or she liable for 10% WHT on interest income. That is what WHT act says.
Most important thing is deducting WHT and remitting the same to IRD and issuing the WHT certificates for such depositors are the prime responsibilities/duties of the relevant financial institutions.
If they fail in their duty, it is the relevant financial institution to be blamed or punished and NOT the depositors.
Kindly note that I am not a GKC depositor and only a frequent visitor to this web site.
By: Kamal on March 31, 2009
at 2:48 pm
Thanks Kamal, it is indeed very relieving to know there are people “with a heart” (Not like the one LK claims to have!). Today’s papers carry ads that all CEYLINCO SHRIRAM CO’S are going to be knows as ENTRUST Ltd….. Please inform every one you know that this is the same CEYLINCO going under a new brand name to deceive the public once again!!
By: damith on March 31, 2009
at 7:54 pm
This appeared on ADA DERANA web site today..
Profits from services abroad exempt from tax till March 2011
April 1, 2009 01:08 pm
With effect from today (April 1, 2009) to March 31, 2011 foreign currency profits from services rendered by Sri Lankans abroad remitted to Sri Lanka through any bank will be exempt from income tax, says Central Bank Governor Ajith Nivard Cabraal.
Hope this is no April fools joke and is a sign of LK bringing in the bucks??? Any comments??
By: damith on April 1, 2009
at 10:26 pm
Another turn to fool out peolpe by Ceylinco Shriram.
Ceylinco Shriram has now changed their name to Entrust. These are the same people who got peoples money and now say that they cannot replay because they do not have oney.
Beware, these are real roughs. I know Ceylinco Shriram monies must have gone to Hiran De Silva’s and Padmini Karunanayake’s accounts.
By: Inevstadv on April 3, 2009
at 4:09 pm
In December the Chairman of Ceylinco Consolidated, the holding company GKCCL called a meeting of depositors and stated publicly that he would repay everyone. Of course he did not know how or when. So working it out seemed to have been summarily rejected. The AG’s department filed charges and called for him to be thrown in jail. Like that would help get your money back in a hurry. Note to Dushanthi Hapugoda, crudely put, once you piss them off and they go on the defensive, although you may get a judgement in your favor, ‘collecting’ is entirely another story.
Going on the offence with financial sector oligarchs, though often deserving, seldom if ever is a good strategy especially in emerging-market governments like Sri Lanka.
By: Deepthroat on April 6, 2009
at 4:51 am
So now Deep you show who you really are!!! LK made a complaint to CID thro’ his own employee former CID SP Othanapitiya, and then got his fingers burned. Not Ms Hapugoda who put him in DEAR!!!!!!!!!!!
Tell your Beloved Chairman this fact, Ms Hapugoda and Co are only responsible for the FR case.
Basically he dug his own GRAVE!!
The payment plan LK gave was unjustifiable as it entailed deducting 80% of a depositors CAPITAL and refunding the balance.
CEYLINCO wanted to use public funds to continue giving a luxury life to its directors.
DEEP………… are you one of them??
By: setcard on April 6, 2009
at 6:09 am
Set, my friend it sounds like the same old song and dance. Its either, ‘you are one of us or one of them’!.
No disrespect to Ms Hapugoda or the depositors.
I do feel for those whose savings evaporated overnight. However my interest in this debate is purely academic.
As long we have investors with idle wealth, risk takers, mix with that ingenuity, luck and a fair amount of greed and companies like this will always be there. Markets will grow, adjust and eventually crumble. In the ensuring ‘conflict’ between the parties, almost always, the facts are clouded in self interests, ignorance of the motives of the driving forces, real or perceived fears and a myriad of other factors and prejudices.
I propose that the book Programming for Peace by Robert Trappl be made compulsory in classrooms across the world we live in… Not so much as to let machines run the world, but if anything to point out to the next generation of investors, financiers, judges and governors that the vast number factors have to be inputted before the best possible decision comes up. How each additional ingredient has to applied to a complex mix and then how all this data has is be computed, void of our histories, emotions, prejudices and other human frailties coming in to play. Sooner we concede that it is so complex and agree we don’t stand a chance of solving it by committee…The next generation should at least be give a chance at understanding those complexities and making the some good choices. Sooner we realize that ruling by committee is dead.
My point is the legal system is not designed to deliver the results Ms Hapugoda and crew are seeking. Risk assessment and mediation would have had a more favorable outcome.
By: Deepthroat on April 8, 2009
at 9:33 am
LK is a crook,Soma thera also not perfect 100%
He also ran behind the money
By: Rajitha on April 8, 2009
at 4:51 pm
Please have your eyes here. If this Lalith Kotelawela dies in remand no cents will be solved. First let him be out and at least allow him to do something good or bad. Have coomon sense rather than been a extremist. All trade Union leaders do this for the sake of deposit holders if your genuine.
By: Mohamed Abdulla on April 10, 2009
at 9:44 pm
When he was out for thee months, his repayment method was to cut 80% of our capital and pay us!! Then he expected to keep our balance money and continue to lead a Deshamanya Life!! No choise Abdull; he is not genuine!! Now even if he dies the courts will seize all his tracable wealth. I do not want to see him give 20% and enjoy with the Balance 80% of our money. People like Ajith, Hiran, Bandula, Shanka, Mevin, Padmini and the other thiefs will enjoy this………
By: damith on April 10, 2009
at 10:20 pm
I totally agree with Damith. The adopted parasites of Lalith K. form a bad business culture that should be stamped out. To them lining their pockets and having their little ego trips with the megalomaniac Lalith as the king-pin was the hallowed life-style. They were constantly cooking up schemes to scam the public and unfortunately it has permeated the business world as many good people have been in their employment as well. A majority of the so called Deputy Chairpersons and Directors are parasites that should be made an example of to the public on how not to do business by punishing them severely. It should be born in mind that I am not saying this out of hatred for the people involved but based on the principle that “all what evil needs to triumph is for good people to do nothing.” I can vouch having personal knowledge with past-employment in the Ceylinco group for more than five years that many so-called directors of Ceylinco group companies as well as Lalith K. himself are charlatans who do not deserve the sympathy of upright citizens of Sri Lanka.
By: Neil on April 12, 2009
at 10:52 am
Historians will record this as a time when one of most fundermental social instincts was ignored en masse. A dark age where we were all guilty of allowing Usuary to happen. How unlimited interest rates destroyed the economy. A time when incentives for money to go into speculation blindsided everyone. A time where people gave up power to the banks and the financial firms and not to the real economy which will always be in the development of the manufacturing, agriculture and labor sectors.
By: Deepthroat on April 12, 2009
at 9:09 pm
HERE IS SOMETHING FOUND IN ANOTHER FORUM RE CEYLINCO……..
Another Rogue still at large- Ajith Gunawardena
By the nature he is a barbarian. He terrorizes the entire insurance staff. He has no respect at all for labor rules. Hires and fires people at a massive rate. He is a sadist. He hates educated employees and fixes them without any mercy on their future. Some have committed suicide and many have gone crazy having lost their living because of this monster. He openly says “Who cares law” in sales meetings so often. He hoodwinked kotalawala and chased out all the good people at insurance finally achieved what he wanted at this troubled waters in Ceylinco. Now that he feels the power of the law because his god father is behind the bars. He hired an eminent lawyer to the board just to save him once CID grills him with regard to billions of overseas funds transfers with his advice and knowledge as a member of “Foreign investment committee”.
This maniac suffers from an inferior complex too. This very same O/L five subjects passed donkey once said in a meeting with about 10 chartered Accountants of Ceylinco “You know….This bloody finance is in my fingertips” insulting all those qualified accounts. They just treated to each others with a sarcastic smile.
He is born to ridicule professionals and ruin staff confidence. He is in true words “a real BASTERD” and deserves the most painful and miserable death for the number of employee’ families he has ruined. Their curse will definitely will fall over his entire family including his parents.
Kotalawala the biggest thief in Sri Lanka is paying him 5 Mn. Per month. If the Karma we believe is true, we need to see this monster’s fall. He should spend rest of his life behind bars with his personal properties attached for transferring Ceylinco money illegally to his companies in Malaysia, Singapore and other countries or be bedridden for throwing thousands of employee’ families to the roads.
His stupidity is publicly displayed with his answer to the “Financial Times” with regard to the question raised if Ceylinco insurance changes the name.
“After the GK debacle, many said to change our name a number of times. They said the Ceylinco name is below zero, but the answer of the CIL board was that if the father is a drunkard, that does not mean the son changes his name. We needed to be true to ourselves. This is the reason why we did not change our name,” Ajith Gunawardena, Joint Deputy Chairman CIL told The Sunday Times FT.
With this kind of confirmed fools no wander Kotalawala spends behind bars and got his personal properties attached.
By: setcard on April 12, 2009
at 9:38 pm
Me and my sister working in Dubai had invested nearly 8Million of our hard earned money. End of the day I agree with most of you on the figures making the least difference as per the individuals capacity. However Gentleman I am quite shocked about the knowledge some of you possess about the Global Economic down turn and in all fairness I do not intend to lecture you either. But having said that I read through one article posted by one of you intelligent brother reading about the irrelevance of the World’s economic crisis to the burning issue we all are dealing with at the moment. How is it that we fail to understand that we were offered with high interest rates to compensate the additional risk that we all were willing to accept. Why exactly did we not approach the Bank of Ceylon or Commercial Bank for our savings? A very simple example could be produced in order to prove the chain reaction between the World Economic Crisis and the said crisis. Certain proportion of our money was being invested in Housing projects which produces substantial profits to pay off our High Interest. With minimal or zero investors in the country the SL Citizens will stand no chance to purchase the land or housing that is already being made available for sale through all our investments. Gentleman it is a Chain Reaction and that is exactly what Dubai and many other nations are going through. We are proud to be called Sri Lankans but the bitter reality is that we are not self content. In layman terms we will be affected by the fluctuations of the World Economy in many indirect ways.
Yet to my amaze I do not understand of the necessity of dragging down the religion to this. We Sri Lankans will never succeed as long as we keep grouping our selves. I am a Sinhala Buddhist or I am a Sinhala Catholic or a Hindu Tamil. Do we ever learn from our mistakes?????? Our stupidity and pride had already lead to a mass scale Ethnic Crisis that had eroded the country’s economy and all living standards. As a strong Buddhist I would take the pleasure in presenting a simple question. The great philosopher Buddha with all his intellect did never criticize another religion and we for that matter have all the loose talks and provocative acts towards all other religions. Are we not done yet???
Why can’t us be focused and share productive information about the crisis that we are in at the moment? Talking absolutely nonsense or looking down to other religion is not going to help you but prove your imbalanced perspective of life. Further is it very difficult to realize consequences of bringing down the Ceylinco group of companies. How many of your brother, sisters or friends being employed by the company. Have you ever pictured them out of their jobs??? Let us take a moment and think what are our motives and what we accomplish by each move that we take. Let us not get carried away with any pressure induced by political groups for their own benefits. We will prevail this test of time.
By: roshan on April 12, 2009
at 9:45 pm
kotelawala is world class stingy ,greedy bastard..even after the court order he still not willing to pay depositers money back..still wants to hang on to his
1.swiss banks
2.singapore
3.australian banks
4.rest of the world stolen & hidden money
money that belongs to poor depositers..so it’s high time this 70 year old father of no kids ,who’s partially blind also to give up & surrender all his hidden money from every where,which may br more than enough to pay..after all why he need that much of money ti live(kotelawalla’s days are numbered anyway)…
By: ramani rodrigo on April 14, 2009
at 5:57 am
DESHAYAKEWA “KOTI” KOTELAWALA SHOULD STAY IN JAIL UNTILL HE SETTLES ALL POOR DEPOSITERS..THIS CROOK DIDN’T MAKE ANY EFFORT TO PAY BACK SINCE DECEMBER..ALL HE WANTED TO DO IS AVOID PAYING ONCE VALUED CUSTOMERS WHO PAID HIS ALOMST 5 MILLION RUPEES A MONTH INCOME FOR DOING NOTHING?..NOW IT’S TIME FOR JUSTICE..OTHERWISE IT WILL BE HUGE PUBLIC OUTRAGE..HE SHOULD BE BANNED FROM BUSINESS & DESHAMANYA TITLE MUST BE TAKEN BACK…ONCE HE SAID LTTE IS FREEDOM FIGHTERS GROUP?..WHAT A SHAME?..THEN KOTELAWALLA USED OTHER’S MONEY WITHOUT THEIR APPROVAL TO CONVERT PEOPLE TO HIS RELIGION…THEN HE LIED & CHEATED TO CUSTOMERS AT BMICH & ALMOST GOT WHAT HE DESERVES.HE IS THE BIGGEST “SAKVITHI” & DANDUWAM ALL TIME..PEOPLE COULDN’T SPOT THIS THEIF EARLY..NOW THAT’S BAD LUCK..SOME DEPOSITERS ARE WAITING FOR THEIR MEDICAL TREATMENT & SURGERYS..& THIS BLIND 70 YEAR OLD MAN WITH NO KIDS GETTING 4.5 MILLION RUPEES PER MONTH & EVEN MORE PERKS?..IS THAT FAIR?..SOME PEOPLE CAN’T GO BACK TO WORK BECAUSE THEY ARE OLD & THIS THEIR LIFE TIME OF SAVINGS (EPF,GRATUITY ETC)..SOME PEOPLE CAN’T EVEN THINK TOMORROW BECAUSE OF THIS DAY TIME ROBBER/THEIF/CROOK CALLED “DESHA KEWA”..HE SACKED 500 GK STAFF ON THE SPOT…KOTELAWALA HAS DONE ENOUGH AGAINST MOTHER NATION,PEOPLE,CUSTOMERS,OTHER RELIGIONS,CULTURE..ETC.. IT’S PAY BACK TIME FOR CUNNING FOX..TIME TO GO HELL..EVEN HE DOEN’T DESERVE PALCE IN HELL..
Posted By: ramani rodrigo”
By: ramani rodrigo on April 14, 2009
at 5:59 am
The Chief Justice said that a person remanded by court should be in the remand prison and not in a hospital.
He said that any relief granted by court should benefit all depositors equally – from those who had invested a billion rupees to those who has deposited one thousand rupees.
The Supreme Court has now intervened to find a reasonable solution to this crisis faced by Golden Key depositors, he noted.
The case will resume on April 27, 2009.
Meanwhile, three depositors have died since the company collapsed in December last year, Ms. Dushyanthi Hapugoda, treasurer of the Golden Key Depositors’ Association asserted.
“Without an income to survive, they had gone through agony before their deaths”, she said. “There are many disabled soldiers also amongst the depositors”.
She said that an ordinary man from Polonnaruwa who had risked his life working as a driver in Iraq had invested 3.5 million rupees at Golden Key. On his return, he was caring for his aged parents with the interest earned.
“It is wrong to assume that only people with big bucks invested in this Ceylinco subsidiary”, Ms. Hapugoda pointed out. “How many hundreds of depositors have been reduced to paupers today”.
By: ramani rodrigo on April 14, 2009
at 6:00 am
‘Golden Key’ had Govt. sponsorship
Lead News
Monday, 30 March 2009 16:24
The Golden Key Credit Card Company collapsed recently and investors that deposited money in this company were severely distressed. There had been a fraud of Rs.26 billion and the Judiciary recently ordered that its assets worth Rs.14.5 billion should be sold and depositors paid back their money.
Relevant to this incident Sri Lanka Central bank stated Golden Key Credit Card Company was not a registered financial institute. However, depositors claimed that the company advertised freely through media and this urged them to invest in the company. There was criticism that Central Bank did not take sufficient measures to inform the public regarding illegal financial institutions.
Now we have received information that the government too has been involved in promoting Golden Key Credit Card Company as a creditable institution where the public could deposit their money. Among the names of legal banks and financial institutions the water bills of National Water Supply and Drainage Board could be settled the name of Golden Key Credit Card Company too has been printed. This leads to suspicion as to why National Water Supply and Drainage Board, a state institution has, by its action, tried to promote an illegal financial institute.
It is evident that the government too is responsible for the fraud carried out by the relevant company. Government institutions have encouraged the public to have dealings with the company. This is a good example of the deterioration of the monetary sector of the country and how sloppy the functioning of the Central Bank is.
By: ramani rodrigo on April 14, 2009
at 6:01 am
laith kotelawalla has changed his name to
DESHAYAKEWA L.T.T.E “KOTI”LAWALLA…..
By: ramani rodrigo on April 14, 2009
at 6:03 am
THE ONLY WAY 2 STOP THIS PLAN IS 2 CHARGE OR FINE EVERY DAY CEYLINCO FAIL 2 PAY IT’S DEPOSITERS ….THEN THESE CROOKS/ROBBERS WILL WITHDRAW THEIR SECRET BANK ACCOUNT MONEY TO AVOID FURTHER DAMAGE…
AFTER ALL THIS IS THE SYSTEM KOTELAWALLA & CEYLINCO USED FOR IT’S CUSTOMERS WHO FAILED 2 PAY THEIR LOANS/FINANCES/LEASE EVEN BY A DAY..
KOTELAWALLA USED BE VERY HARSH ON POOR PEOPLE WHO COULDN’T PAY IT ON TIME…
SO ISN’T IT FAIR 2 USE THAT METHOD 2 HIM?…..
By: ramani rodrigo on April 14, 2009
at 6:08 am
ALREADY 4 POOR DEPOSITERS HAVE DIED THANKS 2 DESHAYAKEWA & MURDERLINCO…..
HOW MANY MORE DO U PLAN 2 MURDER KOTELAWALLA & CEYLINCO???????????????????
BANK WITHOUT THE HEART & IS THE ONLY COMPANY WHO WATCH IT’S BELOVED CUSTOMERS DIE IN PAIN….
By: ramani rodrigo on April 14, 2009
at 6:14 am
Hi,
I have gone thru few write ups about this fraud.Best action I feel is by Supreme Courts,where they have given few interim injuctions,orders to disclose co, as well as personal assets.Pls. refer news paper ad 8th,9th 10th April by Central Bank.This is the best move by CB upto now.This is the best time for all the people, who know about their assets to come out and inform Central Bank or AG’s office or write to this mail.
This will help officials to accertain the hidden wealth of Ceylinco,LK,SK and all directors.There is proof of disposing assets,which will have to be taken up by SC for contempt of Court.
Most of them are still trying their triks what they have been doing all along,cheating people.
SO MAKE USE OF THIS OPPERTUNITY TO SUPPORT THE SOCITY WHO HAVE BEEN TAKEN FOR A GOOD RIDE BY SO CALLED”BIG OR SMALL,WE PROTECT THEM ALL?
By: R.Fernando on April 14, 2009
at 10:03 pm
What Happening going on F&G Real Estate ?
By: Nuwantha on April 23, 2009
at 1:15 pm
What”s happen to the case today at Mount Lavinia Courts? Anybody answer.
By: Nobert on April 23, 2009
at 8:58 pm
Today CISCO Body Guards Of Jayatissa, and a set of goons assaulted and threatened members of the Depositors Association in front of Mt Lavinia Courts Premises. Ms Thushari was seen issuing orders to the POLICE before Lalith K was brought into the Ambulance. CISCO thugs were also inside the ambulance?? Major Vajira can you explain this?? Will you grant this facility to poor prisoners??
By: Bernard on April 23, 2009
at 9:08 pm
Have U seen today newspaper advertisment from Central Bank ? Are they going to pay our money or tax on us for past rebates what we got. But I am sure they will handeover all the details of us to Inland Revenue Dep. Before they pay for us they will tax on us for past.
By: Nobert on April 23, 2009
at 9:12 pm
Today CISCO Body Guards Of Jayatissa, and a set of goons assaulted and threatened members of the Depositors Association in front of Mt Lavinia Courts Premises. Ms Thushari was seen issuing orders to the POLICE before Lalith K was brought into the Ambulance. CISCO thugs were also inside the ambulance?? Major Vajira can you explain this?? Will you grant this facility to poor prisoners??
By: setcard on April 23, 2009
at 9:13 pm
Now everybody knows LK is a crook. Can he still use Deshamanya title? President can take back the it. If Anybody can ask from the courts. I think it will work. C. J. can do it.
By: Nobert on April 23, 2009
at 9:25 pm
Now the Government can takeover all the assets from GK Director’s as a result of Court’s order. It will be a lottery to the Government in this situation. They do not need IMF Loan anymore. This 26 Bn. they will use for themself.They will Enjoy very well.
Kabral will be the most happiest person today.
What will happen to our hard earned money?
In Sinhala what we call “Kothalawalage walatath hena gahanna ona”.
By: Nobert on April 23, 2009
at 9:52 pm
What happen to Mrs. K. Are they bribe Interpol also like they did to the Kabral. Why can’t they arrest her? Is she in safe house?
DIR. Jayatissa, Do not act too much, I know who U are. Be carefull, U may be the next Victim.
By: Nobert on April 23, 2009
at 10:37 pm
Hey guys any news?? Whats the latest?
By: setcard on April 29, 2009
at 5:36 pm
Lalith K is back at prison hospital. Why not the cell, Vijaya can you answer this??
By: Bernard on April 29, 2009
at 11:24 pm
LK has really helped many many poor and others to stand up in their own their life. When the boat is sinking all are talking only negative. Its a Sri Lankan way. But the people got help their life more than this where its not recorded in Central bank. But we agree should settle this money of rich or poor people in a very reasonable manner.
By: Sumanasiri on May 2, 2009
at 5:52 pm
Sumanasiri, he did this with other peoples money. Showed the world that he was very kind person by doing this, got more business, he even bribed taxmen govt officials, illegaly sent money out of the country, dont you see he has broken the L A W of this country!!! So he helped others with out using his own money!! THIS IS WRONG, BREAKING THE LAW IS WRONG!! DO NOT WHITE WASH A CHEAT LIKE THIS dear!!
By: Bernard on May 2, 2009
at 9:01 pm
Just a simple thing to all writeres and readers.
Let us all pray that this problem is solved fast.Mr Kothalawella will not be the looser.If all his businesses are going to close down, who will be the loosers?Him?No.Thousands of people working in his companies will loose their jobs.With the present global crisis, so many businesses are closing down and if all of Mr K’s companies close down, there will be hundreds of families who will suffer as a result.
I am not on any side.I myself have some money invested.I had also benfited by terms of interest for quite a long time.There were good times for everyone who invested with Mr.K.Although we now have to cross our hands.
Dont condemn a man totally.If he could survive this difficult time and settle all peoples dues and continue his businesses, we are all winners.
Not only us, even the country is benefited.
So let us at least pray something good will turn out.Not only for us, even for him.He even had uplifted many people, through his businesses.This is a fact, that everyone should admit.
Also dont bring in any religion.Christianity doesnt ask people to sin.
Jesus said :”out of man’s heart comes all evil…..”
Even Buddha’s teachings are always for people to do good to one another and to say ‘siyalu manushayo suwapathwewa, nidukwewa, nirogiwea”.He did not say only for good people.But siyalu manushayo.
By: Randolph on May 4, 2009
at 2:35 pm
Randolph and Sumanasiri,
Very unfortunate that there are people like you with a high level of tolerance to blatant fraud and malpractices. I do not feel that majority seeking justice are not doing so out of malice but of genuine concern that a bogus megalomaniac could hijack a whole lot of professionals and let them down through abuse of power and privilege, not earned but manipulated. The bogus doctorates and self aggrandizements should not be encouraged. If you wish to quote from Buddhism please look up what “Brahmadandana” is. During the time of the Buddha there were megalomaniacs like Devadatta and Channa. Ajasatta was led to patricide through such tendencies. We know firsthand that LK and the gang are social parasites who should never be defended by any right-thinking person.
By: Neil on May 4, 2009
at 3:39 pm
What will happen to Ceylinco Sussex College? Students?Teachers? So many cheatings are done even with money paid by parents? Its Not even Registred. What the hell they have done?
By: Nisara on May 5, 2009
at 9:28 am
Pls come to Premedasa Statue near Supreme Courts at 7.30 AM on 11th May Monday.
By: setcard on May 8, 2009
at 10:15 pm
Daduwam Mudalali was kidnapped and killed at Kuruwita.
Fortunately, Kotalawela is in the cell. Otherwise most probably LK also will have the very same fate.
By: Lalinda on May 20, 2009
at 1:53 pm
21/05/2009 is his case at Mt Lavina, Please post any info at the end of the day. What news of Central Bank and its team of accountants? The Collection account at BOC?
By: setcard on May 21, 2009
at 11:23 am
Three more GKC directors ( Daniel Jegasothy, Ms.Padmini Karunanayake and Bandula Ranaweera) remanded today by Mt. Lavinia Chief Magistrate until 4th June.
By: Kumara on May 21, 2009
at 6:33 pm
Padmini Karunanayake now in prison hospital. Next step Gen. Hospital, from there to Merchant ward as her boss. What a joke?
By: Kumara on May 22, 2009
at 6:00 pm
Next to be remanded should be Hiran de Silva, a rogue of the first order and a person who has no ethics at all. And the elevant officers are now investigating….I personally know people who are watching his wheraboutsd carefully and they are so dangerous they are even ready to murder him. Yes he did transfer his assets to his wife Hiranthi who is again a bitch!!!!! But the transfer was rejected!!!! These are the people who deserve a public stoning. Womanizer, under the carpet operative, throat cutter….name it and he is all that….CID, BC, AG’s dept talk to the employees too they can give you the real pictures of this bastard….His end is close too…This is retribution man!!!!!!! retribution!!!!
AG’s dept a job well done for putting PK, Jegasothy and BR behind bars….
By: Thishu on May 25, 2009
at 11:06 am
What’s the situation at Ceylinco Leasing? How do we renew our rev. licensees?
By: A lessee on May 25, 2009
at 12:14 pm
Do anyone know about the GKSS (the Golden Key Software Soution)? How they are working with the GKC company? Also can anyone have any idea, how GKC is providing solutions/service to their Customers? Thanks in advance.
By: Javed on May 25, 2009
at 1:06 pm
Apart from a few one or two all the others are crooks…from mervyn to hiran to big boss Lalith to Padmini to her son punarjeewa (sorry hora dr of American National College fame) who has millions of rupees thanks to the mother…but there are a few honest ones who are nothing but mutts of the first order so if you are trying to do anything with Ceylinco in the future ladies and gentlemen pls beware.
The Ceylinco empire is dead! Nobody the average shop owners don’t give anything on credit the way they used to….
I agree with Thishu Hiran must be one of the very few educated Deputy Chairmen but he was a disgrace to the educated the way he got about business. He hoodwinked Lalith to put himcharge of the international relations, toured the world over, stayed in luxury hotels with women, spent Ceylinco money to maintain his women the world over and brought no business o the company at all. He even tried to flee the country.
Some ppl are trying to find FR petitions and they will no doubt be successful. As no lawyers are coming forward to appear for any of the Ceylinco ppl.
By: Ramanayake on May 25, 2009
at 2:02 pm
Dear writers, going through the comments in this log I can almost sense your anger- some depositors, some employees, …….
I am none of thesebut an ordinary man however I came across this so called Hiran de Silva who claimed to be one of the top officials of Ceylinco Shriram…my first impression about him was not so good although he spoke good English, dressed well and spoke reasonable sense…I in fact knew he came from a respectable family in Colombo….but with time and from some deeds I judged him to be a dog…..yes, he has no principles, no working ethics….his personal life is not of concern to us but if heis sleeping with women behind his wife’s back that does not show much integrity now does. I also know great ppl who would have been an asset to the company leaving as he made hell for them….Mr and Mrs de Silva I hear you have a child, daughter or son pls don’t pass hese things to them!!!!!!!
By: suth on May 25, 2009
at 2:12 pm
Hiranthi also slept around with former HQ branch Manger after areobic classes!!( in the bank premises) So they make a good pair!! Poor kids, the fact is Samanmalee the legal officer of Sampath Bank Transfered Hirans assets to Hianthi. The CID could question this lawyer re this.
By: damith on May 25, 2009
at 9:35 pm
The Monetary Board of the Central Bank of Sri Lanka, in a notice to the public, has requested every present and past Director, Chief Executive Officer, Manager, Employee and Agent of F&G Property Developers (Private) Limited and F&G Real Estate Company Limited to submit a ‘Declaration of Assets and Liabilities’ to the Monetary Board on or before 5 June 2009. The decision was taken on May 9th, consequent to an Order made by the Supreme Court in Fundamental Rights Application No. 317/09 filed before the Supreme Court, to obtain relief upon the failure of F&G Property Developers (Private) Limited and F&G Real Estate Company Limited to repay their investors. This came to light soon after the Monetary Board directed every present and past Director, Chief Executive Officer, Manager, Employee and agent of the Golden Key Credit Card Company Limited and other related and relevant parties to submit a Declaration of Assets and Liabilities to the Monetary Board on or before 15 May 2009. This direction was in compliance with the Fundamental Rights Application Nos. 191/09 with 192/09, 197-216/09 and 225-226/09 filed before the Supreme Court to obtain relief upon the failure of the Golden Key Credit Card Company Limited to repay its investors.
Accordingly, the above mentioned parties of the F&G Property Developers (Private) Limited and F&G Real Estate Company Limited, along with their spouses and children, are requested to provide full particulars of all property they are holding in trust for anyone or anyone holding property in trust for them. Furthermore, the relevant parties are to provide all details of their closed bank accounts, current accounts, savings accounts and fixed deposits anywhere in the world; details of motor vehicles, motor boats or any other power driven vehicles; details of properties gifted, transferred, mortgaged, pledged or alienated in any manner, during the period from 1 January 2006 to date. The spouses and children of the employees and agents of the above entities are also called upon to submit information on safe deposit vaults in any bank; ownership or possession of jewellery, precious stones, gold or silver; and details of cash in hand or cash in the custody of any other person, as at 30 April 2009.
In another notice, the Central Bank has requested the general public and other legal entities to submit details of monies they have placed with F&G Property Developers (Private) Limited and F&G Real Estate Company Limited, along with copies of all supporting documents by 5 June 2009. The Central Bank said that the Monetary Board has taken regulatory measures on 9 May 2009, directing F&G Property Developers (Private) Limited and F&G Real Estate Company Limited, not to accept any further deposits, grant new loans, make any new investments or dispose, alienate, mortgage or pledge any assets of the two companies and of their past or present directors and office bearers, with immediate effect. The Central Bank has directed the companies to furnish details of their assets and liabilities as at 31 March 2009 and 30 April 2009 to the Monetary Board by 5 June 2009. The Central Bank has also directed the Registrar General, Registrar General of Lands, Commissioner of Motor Traffic, Securities and Exchange Commission of Sri Lanka not to permit transfers or transactions relating to assets of F&G Property Developers (Private) and F&G Real Estate Company Limited, its directors and key management personnel.
In March 2009, the Merchant Bank of Sri Lanka came up with a plan to pay back creditors of the troubled F&G Company Limited (regulated), F&G Property Developers Private) Limited (unregulated) and F&G Real Estate Company Limited (unregulated). However, since the depositors of the two failed unregulated entities filed a fundamental rights petition on April 27 in an attempt to get their money from the companies, “now the Merchant Bank as the managing agent is only involved in the restructuring and repayment of F&G Company Limited” said the Chairman, Merchant Bank, Janaka Ratnayake. According to our sources, F&G Property Developers Private Limited and F&G Real Estate Company Limited have liabilities up to Rs.9 billion worth of public funds.
Meanwhile on May 15, the Additional Magistrate of Colombo, Gian Ranawake, issued a warrant for the arrest of Ms. Yesmin Mohamed, another director of F&G for absconding from Court. He also ordered the release of Malani Sabaratnam, director of F&G Company Limited, who heads the Ceylinco Building Society Limited and its subsidiaries, Ceyhomes Credit & Investments Limited and Ceylinco Prosperity Private Limited. The Magistrate also ordered the Registrar of the Court to return the passport of Ms. Sabaratnam. Directors of other affiliated companies, namely Mervin Jayasinghe, Mohan Perera, K.A.S. Jayatissa, Priyantha Dharmasiri, Ranga Nanyakkara, Chalaka Sanjeewa Perera and Samathika Jayasekera, appeared in Court. At the time of going to press, Deputy Chairman F&G Group of Ceylinco, Mervyn Jayasinghe, was not available for comment
By: Nuwantha on June 3, 2009
at 8:19 am
The new company was registered as recently as March 18, 2009, but its directors defend that they have every right to form new companies under the Articles of Association (AoA), specially when the objectives of the original company were not fulfilled.
When contacted, Chamil Waduge stated that the Articles of Association (AoA) did not preclude them from forming other companies and/or transferring funds from the original company to a newly formed one — truly the case in point with regard to the Ceylinco Group of Companies.
The new company’s board of directors is Mervyn Jayasinghe (Chairman), Chamil Waduge (Managing Director) and T.K. Weerasinghe (Director Legal). The company has its registered office at 26/1, Dr. Lester James Peiris Mw, Colombo 5 which is also the address provided in the publications of the original company, Independent Financial News & Views (Pvt) Ltd.
Interestingly, Aratuwa Italia, a magazine for free distribution within the Sri Lankan community in Italy mentions its Colombo office to be the same Lester James Peiris Mawatha address. The magazine mentions 2552018 as the Aratuwa Italia contact number while Ceylanka Publications letterhead has 2552020 as the company contact phone number.
Transfer of funds
Amidst speculation that a transfer of money had taken place between the two publishing companies, inside sources claim that the former has transferred Rs. 10 million to the latter. While not willing to give details, Waduge who is also the editor in chief/ executive director of the publications does not deny that money was indeed so transferred.
Meanwhile, the management of Merchant Bank of Sri Lanka (MBSL) and Finance Guarantee Group held a media conference in connection with the restructuring plans for investors/depositors chaired by Chairman, MBSL, Janaka Ratnayake and Chairman, Finance & Guarantee Group, Mervyn Jayasinghe along with other officials at Ceylon Continental Hotel on March 17.
Investors/depositors now allege and are fearful that the new publishing company has applied for a loan from MBSL to continue its activates, a fact MBSL denies. It is a path that Ceylinco Group’s many companies seem to have taken, justifying their fears.
When contacted, Chairman, MBSL, Janaka Ratnayake denied that a company named Ceylanka Publications had applied to the bank for a loan.
“At this point, if the company requesting for a loan is connected to Ceylinco or Seylan, no one would grant them such a loan,” Ratnayake said.
Unavailable
Despite our many attempts, Chairman, F & G Co. Ltd., Mervyn Jayasinghe was unavailable for comment at the time of going to press.
The hotline to Ceylanka Publications published in its letterhead, 071 4552020 has been disconnected. However the Managing Director of Ceylanka Publications, Chamila Waduge told The Sunday Leader that the Memorandum of Association (MoA) did not bar new companies from being formed. He also said that the original company had not been liquidated and is still in operation. He however did not deny any transfer of assets when questioned, but said it would not be illegal to do so.
Meanwhile, Lalith Kotelawala, still at the Merchant’s Ward and on bail was issued a medical certificate by none other than Director, National Hospital, Dr. Hector Weerasinghe. This fact drew the attention of Deputy Solicitor General Sarath Jayamanne who said in open court on March 26 that this was the first time that he (Jayamanne) had received a medical report from the Director of the National Hospital on behalf of a patient.
He referred in court to a magazine titled Janmabhinandana published by Ceylinco Consolidated on Lalith Kotelawala’s birthday that included a message — an interview based article on Dr. Hector Weerasinghe. The counsel said that it was the same Dr. Weerasinghe, who had now forwarded the medical report on behalf of Kotelawala. In the said article, Dr. Weerasinghe has spoken in glowing terms of the philanthropist businessman
By: Nuwantha on June 3, 2009
at 8:26 am
List of Golden Key depositors from Rs.2.6 million to 3 million
MRS SALOME RADHANIKA GOMEZ 2,600,000.00
MR SRITHAR MARIMUTHU 2,600,000.00
MRS SUDHARMA IDDAWELA 2,600,000.00
MR U H KULASIRI 2,600,000.00
MR W A D WIJAYASIRI 2,600,000.00
MR W S K WIMALADHARMA 2,600,000.00
MR WIJANTHA EWART RATNAYEKE 2,600,000.00
MR H M K AMBANWELA 2,600,000.56
MR PREETHI LALANTHA JAYASINGHE 2,600,063.00
MRS CHITRA PREMASINGHE 2,600,704.38
MR A A S A GUNARATNA 2,600,894.41
MR S H LEANAGE 2,605,174.33
MR DUNSTAN KENNETH PERERA 2,605,900.00
MRS S A VINDYA SANJEEWANI GUNASEKERA 2,607,050.11
MRS K D WIJENDRA 2,610,000.00
MR KINGSLEY MUNASINGHE 2,610,000.00
MR P S L SILVA 2,610,000.00
MRS SRIMATHI JAYATILAKE 2,612,287.77
MRS J D N VASANTHINI 2,616,667.00
MRS P WIJETUNGE 2,624,738.44
MR M NIHAL DELPHYNUS PER GUNATILLAKE 2,625,550.48
MR W H C RODRIGO 2,627,984.95
MR C H M PERUMAL 2,630,000.00
MR T W DE SILVA GUNESEKERA 2,630,000.00
MRS R M S WEERASINGHE 2,633,500.00
MRS K D N FERNANDO 2,634,534.24
MRS A C BELL 2,634,689.20
MRS W S KARUNATHILAKE 2,634,908.23
MR T A D C DILAN 2,636,915.17
MRS CHIRANTHI SUJAYANIE KARIYAWASAM 2,637,000.00
MR ADRIAN E S JOSEPH 2,638,202.28
MRS SUNETHRA KULATILAKA 2,643,651.98
MR P A J PERERA 2,646,084.00
MR B N DE ZILWA 2,647,033.44
MRS CHITRA ABEYGOONEWARDENA 2,648,507.80
MRS S L R JIRASINGHE 2,649,931.50
MR GANGANATH AMADORU 2,650,000.00
MR L A L SAMARAWICKREMA 2,650,000.00
MR W H NIXON FERNANDO 2,650,000.00
MR NIMAL PERERA 2,670,000.00
MS D S TENNEKOON 2,671,831.80
MRS J AYIN CAREEM 2,675,000.00
MR W A PALITHA MAHANAMA 2,675,000.00
MR THANGIAH VIJAYANANTH 2,684,095.12
MR H N J GUNARATNE 2,686,893.85
MR A S JAYATILLEKA 2,690,000.00
MRS A D C PRIYADARSHANI 2,700,000.00
MRS A N C K WEERASINGHA 2,700,000.00
MR B B HERATH 2,700,000.00
MRS C S D PERERA 2,700,000.00
MR COLOMBAGE JOSEPH SH FERNANDO 2,700,000.00
MR D H J FERNANDO 2,700,000.00
MS D S WIJESINGHE 2,700,000.00
MRS D S H MARAPANA 2,700,000.00
MR D SAJIT JANARAJ FERNANDO 2,700,000.00
DR ERNEST ATUKORALE 2,700,000.00
MR G MUTHUSAMY 2,700,000.00
MRS G A H A J C JAYAWEERA 2,700,000.00
MR H D F L SUNIMAL 2,700,000.00
MRS H N V D ALMEIDA 2,700,000.00
MR J A WEERASINHE 2,700,000.00
MR J M L JAYASUNDARA 2,700,000.00
MR K A P S ANGULUGAHA 2,700,000.00
MR K F S PERERA 2,700,000.00
MS K M D K M PERERA 2,700,000.00
MR KAPILA GUNASEKERA 2,700,000.00
MRS KUSUMA NARANPANAWA 2,700,000.00
MR KUTUBUDDIN ESMAIL 2,700,000.00
MR/MS L N / A B GOONEWARDENA 2,700,000.00
MR M LIYANAGE 2,700,000.00
MR MAHENDRA AMARALAL KALUBOWILA 2,700,000.00
MR NIRANJAN ELLEPOLA 2,700,000.00
MR P L GUNASINGHE 2,700,000.00
MRS PRAXY SAMARATUNGE DE SARAM 2,700,000.00
MRS R K G SILVA 2,700,000.00
BRIG R M B P RANASINGHE 2,700,000.00
BRIG R M B P RANASINGHE 2,700,000.00
MR S B WEERASINGHE 2,700,000.00
MRS S C PARANAHEWAGE 2,700,000.00
MRS S G R PERERA 2,700,000.00
MR S K E MADAWALA 2,700,000.00
MR U L KARUNARATNE 2,700,000.00
MR W S B VONHAGT 2,700,000.00
MR WIMALA DASSANAYAKE 2,700,000.00
MS DAYAWATHI WARAKAWALAGE 2,700,000.08
MR M S SOOKOOR 2,702,910.19
MR L M S T FERNANDO 2,703,644.68
MR/MS ANTON K/MURIN LUMINA JACOB 2,707,500.00
MRS ANOJA JAYAWICKRAMA 2,709,097.87
MR J M CRAMER 2,710,000.00
MRS S V I RODRIGO 2,710,000.00
MR D D N KUMARA 2,712,905.92
MR GERALD NANAYAKKARA 2,713,373.30
MR THOMAS HUPPERT 2,720,393.74
MRS W A D JAYATHILAKE 2,720,734.02
MR H M S HERATH 2,723,358.44
MR A M A B ALAHAKOON 2,723,369.86
DR C FERNANDOPULLE 2,725,000.00
MR ESHANTHA GUNAWARDHANA 2,725,000.00
MS A R DE SILVA 2,726,746.22
MR MANEL DISSANAYAKE 2,728,430.84
MRS D M G F SIYABALAPITIYA 2,735,336.18
MRS ANDREA DHANAPALA 2,740,000.00
MRS N P EMBULDENIYA 2,741,500.00
MR GAYA NISSANKA PATHIKIRIKORALE 2,743,807.46
MS A H A NIROSHANI 2,750,000.00
MR C A JAYESINGHA 2,750,000.00
MR C A JAYESINGHA 2,750,000.00
MR C A JAYESINGHA 2,750,000.00
MRS CHANDRAWATHI HETTIARACHCHIGE 2,750,000.00
MR D A PERERA 2,750,000.00
MR H DAMMIKA PRIYACHAND PATHIRANA 2,750,000.00
MR L HEMACHANDRA 2,750,000.00
MRS M S DE SILVA 2,750,000.00
MRS MADHUKA JAYASINGHE 2,750,000.00
MS N T BATUWANTUDAWE 2,750,000.00
MR/MS NEELA / CLAIR THIMBIRIPOLA 2,750,000.00
MS S P A SAMARATUNGA 2,750,000.00
MR W M S D UDUWAWALA 2,750,000.00
MR D M N C DASWATTA 2,750,299.85
MR P A S PERERA 2,751,164.38
MRS FLEUR MACK 2,752,272.31
MS R LOGESWARY 2,753,841.01
MR H U N PERERA 2,758,358.46
MRS DEDIWALAGE JAYA CHAN RANATUNGA 2,760,000.00
MR B J PAUL 2,765,000.00
DR NEVILLE COORAY 2,776,595.37
MS FAUZUL FAAIZA ABDUL RAHIM 2,779,241.25
MS SHERABANU SETHWALA 2,786,386.21
MR MARK RVMAL FERNANDO 2,790,617.07
MR A U PALLIYAGURUGE 2,800,000.00
MR A W K J SILVA 2,800,000.00
MR B A R D PERERA 2,800,000.00
MR B R O FERNANDO 2,800,000.00
MRS C R NAVARATNE 2,800,000.00
MRS CHANDRA K AMBANWELA 2,800,000.00
MR D ABEYWARDENA 2,800,000.00
MR D P GAMAGE 2,800,000.00
MR DINESH NAGENDRA SELLAMUTTU 2,800,000.00
MR DONALD NELLIMALE KURIAN 2,800,000.00
MRS E F P MENDIS 2,800,000.00
MR H J KURIAN 2,800,000.00
MR H R G SENARATNE 2,800,000.00
MRS HEMANTHI PERERA 2,800,000.00
DR I S DASSANAYAKE 2,800,000.00
MR J WIJEGOONEWARDENE 2,800,000.00
MR K VENUBALA 2,800,000.00
MR K R WELIWITA 2,800,000.00
MRS K RUVINI THARISHA THILAKARATNA 2,800,000.00
MRS K S THABREW 2,800,000.00
MRS K T C M S D FERNANDO 2,800,000.00
MR KANKANI GAMAGE RATHNASIRI 2,800,000.00
MR L B SENADHIRA 2,800,000.00
MR L R PERERA 2,800,000.00
MR N M A C NISSANKA 2,800,000.00
MR R I FERNANDO 2,800,000.00
MR RANJITH ASOKA DE ABRE RAJAPAKSE 2,800,000.00
MRS S CROSSETTE THAMBIA 2,800,000.00
MRS S A GOONEWARDENA 2,800,000.00
MRS S D L A A WIJESIRIWARDENE 2,800,000.00
MRS SOMAWATHIE LAHANDA PURAGE 2,800,000.00
MR T I FERNANDO 2,800,000.00
MR THURAISAMY THUMAKANDAN 2,800,000.00
MR W ANTON CHRISANTHA R FERNANDO 2,800,000.00
MR A D W PATHINAYAKA 2,800,004.08
MR SUNIL JAYARATHNE 2,802,321.93
MR S M WICKRAMASINGHE 2,804,161.93
MS HEMANTHA PUSHPAMALA VITANATCHI 2,806,057.15
MR S D G PERERA 2,809,040.20
MRS W M A FERNANDO 2,810,000.00
MRS WARSHAGAMAGE KUSUM BALASURIYA 2,811,637.39
MS M L I COORAY 2,813,085.58
MR G T FAZLEABAS 2,814,068.37
MRS R S KARUNARATNE 2,816,028.65
MRS D A DE ZILWA 2,825,000.00
MR N M A DE ZILWA 2,825,000.00
MR D M SALINGA PRIMAL DISSANAYAKE 2,838,386.51
MRS LEELA JAYASINGHE 2,841,875.00
MR D M S C DISSANAYAKE 2,850,000.00
MR JOHN STANLEY SAMARATUNGA MUHA 2,850,000.00
MR L W A P WICKRAMAPALA 2,850,000.00
MR RANJAN WANIGASEKARA BALASURIYAGE 2,850,000.00
MRS S K V P RANJANI 2,850,000.00
MRS S P C F WIJEYARATNE 2,850,000.00
MRS S R H SOZA 2,850,000.00
MR W R S M R A HIGGODA 2,850,000.00
MR N P MOORJANI 2,861,000.00
MR O E PEIRIS 2,862,672.25
MR DON PRIYA SENANAYAKE MADAPATHAGE 2,864,122.70
MRS W S MADURAWELA 2,868,628.18
MR CECIL F LEARD 2,870,000.00
MR M G S M WICKRAMANAYAKE 2,872,999.57
MR K D S PATRICK 2,873,463.16
MR DERRICK TALWATTE 2,875,000.00
MR J DOLAWATTA 2,875,000.00
MR L W KRAUSE 2,876,400.00
MR DON EDWARD WELIKALA 2,879,140.00
MS PRIYANKA DONA ABEYSEKERA 2,879,852.76
MRS SHANTHINI NAVARATNAM 2,885,000.00
MRS A N JAYASINGHE 2,900,000.00
MR C S B ARAMBEPOLA 2,900,000.00
MR CHANDIKA PATHIRANAGE BRODIE 2,900,000.00
MRS CHRISTINE NAYOMI GOONETILLEKE 2,900,000.00
MR G K A H PERERA 2,900,000.00
MR H D JAYASINGHE 2,900,000.00
MR H MERVIN STANLEY PERERA 2,900,000.00
MR H S A LIYANAGE 2,900,000.00
MR J N RAYMOND 2,900,000.00
MRS K A WERAPITIYA 2,900,000.00
MR K A SHERAN FERNANDO 2,900,000.00
MR M I A SULAIMAN 2,900,000.00
MR M K DE SILVA 2,900,000.00
MR NIMAL VELE PERIGE 2,900,000.00
MR P W P KARIYAWASAM 2,900,000.00
MRS R D R MANAMPERI 2,900,000.00
MR R R RATNAYAKE 2,900,000.00
MR ROHAN FELICIAN PERERA 2,900,000.00
MR S R SIRIWARDANA 2,900,000.00
MRS A GUNERATNE 2,900,000.00
MR R G LAKSHMAN 2,900,024.00
MR M H APPLEGATE 2,901,425.60
MR P A D F DAYANANDA 2,908,160.09
MR S B N RODRIGO 2,910,000.00
MR T E JANSEN 2,917,364.92
MRS C W GOONEWARDENE 2,920,465.74
DR S H BANDUWARDENE 2,922,287.70
MR S M MUNASINGHE 2,925,000.00
MR S S RAJAKARUNA 2,925,000.00
MRS FAUZIYA MOIZ SETHWALA 2,942,667.72
MRS P R V K AMBEPITIYA 2,951,653.70
MS D R J MANUSHI SENANAY MADAPATHAGE 2,954,710.37
MR ANTHONY BERNARD PERERA 2,956,974.02
MRS H S P ABEYAWARDANA 2,962,815.58
REV K CALIXTUS FERNANDO 2,967,203.03
MR M D S EDWARD 2,973,675.67
MS THAMARA SHIRANI PATHI WEERASINGHE 2,976,915.62
MR Y R KARUNARATNE 2,979,025.29
MRS L S REBERT 2,979,134.83
MR W U HENADERAGE 2,979,484.02
MR Y A DAYARATNE 2,981,222.06
MRS S C D ALAHAKOON 2,983,000.00
MS D H MARTINSTYNE 2,993,960.00
DR A E R JAYARATNAM 2,999,581.06
By: Nuwantha on June 3, 2009
at 8:29 am
Oh my God if only people know what sort of crooks Meryn, Jayatissa et al are…..I can’t understand why these people are still out and not in prison….
Hiran and his wife’s extra marital relationships are not of concern to us but the money he has swindled is! Pls do somehting
By: suth on June 5, 2009
at 11:23 am
We are closing this blog very soon, as we Sinhalese feel this is the shittiest blog in the Asian side of the internet.
Iam sorry I keep putting up bloodthirsty Pro-Sinhala Propaganda on this dirty, stinking rag-blog.
Sorry guys, I dont want to face the ICJ or the war crimes tribunal.
Sinhale
By: sinhale on June 9, 2009
at 8:46 pm
While you wait for GK’s money, you can earn extra income from reading emails. Go to below mention website,then you will know it.
http://giga-mails.com/pages/index.php?refid=caaph
By: Nobert on June 12, 2009
at 11:55 am
Please don’t close Blog, This is the place we get know what will happen next & What will happen to our hard earn money.
By: Nobert on June 12, 2009
at 11:59 am
“We are closing this blog very soon, as we Sinhalese feel this is the shittiest blog in the Asian side of the internet” – so says “Sinhale”
on 9th June 2009 but as Nobert states.
“Please don’t close Blog, This is the place we get know what will happen next & What will happen to our hard earn money”— it shows that some people prefer to shut their eyes to the misery inflicted by crooks on unsuspecting victims of financial misdemeanors while there are others who wish to find out what is happening around us and if possible to protect ourselves.
The very fact that this blog has survived for 6 months and still people are accessing it, shows that still there are people who wish to know what is happening!
With the take over of Seylan Bank and a new Chairman being appointed, for the information of those interested, last Saturday night(13th June) around 7.30 p.m. Galle Road from Kollupitiya Junction to Seylan Towers Building opposite Oberoi now Cinnamon Grande Hotel was all decorated and people could hear the beating of drums and see lights alongside the street leading to the building with the procession of Buddhist Monks being conducted by traditional dancers- for what? To augur a better future for the bank by blessing the entire building with an all night Pirith Chanting Ceremony followed by Heela Dane! The sound vibrations of Pirith Chanting could be felt by anyone who was inside that building during that time!
Shit or no shit as “Sinhale” feels it right to call this blog, there is something called ” cause and effect” or repurcussions for bad actions- that is what people who were there at the time felt.
Anyone not interested in this blog, could refrain from accessing it- right?
By: darmitha on June 17, 2009
at 5:37 am
YOU MAY NIT CLOSE THIS BLOG AS IT SERVES SOME PURPOSE FOR THE DISTRESSED DEPOSITORS..
PL RECONSIDER
By: jay on June 17, 2009
at 11:18 am
I think the official SINHALE HOT NEWS owner needs to explain this “shutting down” threat posted aparently by: sinhale on June 9, 2009
at 8:46 pm because judging fromthe language and tone it looks bogus, not becoming of a civic minded person.
By: Neil on June 17, 2009
at 1:11 pm
Dear Readers,
Kindly note that we have no intention whatsoever to close down this site. We too have noticed that a comment has been posted to this forum by someone called ‘sinhale” on 9th June saying this site will soon be shut down.
Apart from that we have received many threats through our official email address. Since we are in a position to stand up on our own foot, we do not care these silly acts.
Our primary objective is to provide news and articles to our readers for them to share and discuss. Therefore, as far as our readers are with us, we are here to serve you.
Sinhale/ Suranimala
For and on behalf of Web Administrator – Sinhale Hot News.
By: suranimala on June 17, 2009
at 9:16 pm
There will be a protest campaign at 9.45 out side temple near Mt Lavina Courts….. Pls Come
By: Bernard on June 17, 2009
at 9:25 pm
Yes, Bernard. Today I have seen the protest that launched just in front of the Mt.Lavinia Court by the Golden Key depositors. It is a well attended protest and I have seen many of them are carrying placards.
“Do not bail out Kothalawela” , ” Order Kothalawela to release our deposits” – those two are the main wordings written on many placards which I have seen.
I think judiciary will meet your requests soon.
By: Nuwan. S on June 18, 2009
at 1:55 pm
Dear Suranimala
Thank you for the clarification and clearing the good name of your website Sinhale. Human freedom, justice and fairplay are meningless words unless there is a forum for free and fair information dissemination, and public debate and discussion with transparency. I applaud Sinhale for doing what is right in a world that has gone wrong.
There is a special hell for the cowards you resort to threats against human freedom in this life and thereafter, perhaps not as comfortable as the Merchant ward.
By: Neil on June 18, 2009
at 2:17 pm
Dear Barnard and Nuwan,
The only way to prevent the repeat of this kind of behaviour by rogue entrepreneurs and conmen is to make sure that no one gets away with impunity. Kotalawala and the directors have assets that the judiciary can go after and ensure that the depositors are paid back. This would deter future wannabe selfish morons who hope to profit from other people’s lifeblood. There are enough of them posting comments defending the miscreants and giving threats to the hosts of this very same site.
By: Neil on June 18, 2009
at 2:26 pm
Hi Guys
Does anyone know what happened at the Mt lavina Courts today ?
Thanks
By: Suraj on June 18, 2009
at 4:21 pm
The Mt.Lavinia Magistrate rejected bail for 14 suspects including Lalith Kotalawela when the Golden Key case was taken up for hearing today.
By: Reporter on June 18, 2009
at 9:32 pm
Does anyone know what happened at the F &G Courts today ?
By: Nuwantha on June 22, 2009
at 10:55 am
There may be a move to settle only GK depositors who put the FR case so that they will withdraw it, will courts set Lalith and CO free if only the Twenty odd depositors who file the FR case are paid??
By: damith on June 26, 2009
at 9:11 pm
My name is Saju ( Indian national) I work with Ceylinco Foliage Dubai U.A.E When I leave this company Last year My Due Salarys unpaid and commisions Unpaid they settled by paying Pd Cheques now I have 41,000Dhs un paid bons Cheque with me Both signaturys are in srilanka If any of you can help me . I am redy to come to srilanka To file Petition I want to know about posibilitys of that You can contact me 00971503407705 sajuceyflora@gmail.com
By: Saju on June 27, 2009
at 2:43 pm
Before you come to SL, consult your Indian Embassy here.
Issuing a post dated cheque is a offence and bouncing those cheques due to non available of funds is a major offence. So, you have a reason to file action against them.
Up to now many depositors filed action against Ceylinco and nearly 14 top people of that company including its chairman LK are in the prison.
By: Subasinghe on June 27, 2009
at 5:37 pm
Please go to this Web Site.
http://goldenkeyscam.blogspot.com/
By: Nobert on June 29, 2009
at 5:07 pm
Last week Ceylinco Shriram Executive Director, Ceylinco group deputy Chairman and one of the biggest crooks Hiran de Silva and another innocent (but a right royal mutt) Rajiv Wijetunge were to arrested. But Hiran the sharp crook he is got two depositors to speak on his behalf and they have been released on bail until next month. AG’s dept. pls, pls show Hiran the plight of robbery. Innocent victims are suffering he is living in luxury….
Sampath Bank pls check the backgrounds of your staff when you promote ppl as AGMs. Hiranthi does not deserve to be one!
By: cha on July 7, 2009
at 2:23 pm
Cha it seems like you have a personal vendetta against Hiran de Silva and Hiranthi. What it is exactly? I don’t think you care about the people who are affected but rather you have highlighted one person who you obviously hate for reasons only known to you. Sad that this forum is used by people like you to air out their personal vendettas.
By: india on August 11, 2009
at 4:17 am
And how Sampath Bank Lawyer Samanmali did the asser transfer?? Harris do not let the Ceylinco Tsunami hit Sampath BAnk!!
By: Bernard on July 7, 2009
at 10:07 pm
I have invested in Ceylinco Profit Sharing Investments Corporation and now get a letter saying I cannot withdraw any of the money. They want me to sign something saying I am willing to put 30% of my earnings as capital to restructure the company. I am very worried as I urgently need the money. Does anyone know of a blog for Ceylinco Profit Sharing? any information is kindly appreciated.
By: Dean on July 8, 2009
at 11:14 pm
Three directors Ajith Gunawardena, Nihal Perera and Shanaka Wijesinghe of the Ceylinco Sri Ram Capital Management Private Company surrendered to the Colombo Fort Magistrate and Additional District Judge Gihan Pilapitiya. They are alleged to have failed to pay the depositors a sum of Rs. 7 billion.
Later all three Directors were released on cash bail in Rs. 50,000 and a bond of Rs. 500,000 with two sureties each.
By: Reporter on July 9, 2009
at 6:56 pm
What did President Premadasa, Prabakaran and Lalith Kothalawela have in common? Besides all three were extremely successful in what they did. Why did they fall? Because all three had people around them singing their praises and telling them how God like they were 24/7. Even the best of them start to believe they are ‘God’s and are quite invincible over a period of time. Inevitably, reality,and the checks and balances in their decisions ‘go out the window’. Eventually they stumble and fall or are brought down. In Mr. Kotalawela’s case his problems started when he:
a) Went public with his political affiliations
b) His freedom fighter, pro-LTTE speech
c) Prophesizing of his Christian faith
Opportunity presented itself when market forces brought down the Golden Key Company in December of 2008. Everyone including, the Central Bank, knew GKCC had been using a loophole in the law and taking in deposits without being regulated as a finance company.
As long as it was making money and run by Gods, it had to be OK.
Also a little publicized fact is that since the early years Mr. Kotalawela rarely if ever interfered or paid close attention to Golden Key affairs. As long as the Company was growing, it was all right by him. Reports are that the past few years there has not been a AGM for the company is not suprising. After all Khavan Perera was his heir-apparent and was for the most part a man of integrity. Thru “the good times” of the phenomenol global trade expansion, Depositor’s money was invested in foreign real estate based instuments. Everyone now knows how that story ends.
The worlds top investment banker types had set up a house of cards and trillions of dollars of the world’s middle class people’s savings disappeared from beneath them in November of 2008.
The banking community accross the board gets bailed out and the ordinary people lose their money. This is the new face of ‘financial colonialism’ At least some people don’t let the dazzel of the Western Banker types just walk in and pick their pockets. India for an instance. Maybe we should have hitched our wagon to the Indian economy years ago. Then again if we are not vigilant who know if we will be taken for ride by our neighbors to the North as well.
During and after the decline in the business climate that once exsisted Khavan and Sarada started to make rash decisions by throwing ‘good money after bad’ on pet projects of directors and the like, which is where the criminal element comes in. As a financial institition not having a system of checks and balances independently reporting to him is what makes Mr. Kotalawela negligent and ultimately liable, being the head of the organization. Because Blue Diamond episode should have been a wake up call for him. However throwing him in jail perhaps is a counter productive legal move. Having the Govt. liquidate assets and disperse them out is also not going to work very well. In these cases being liable and found guilty is one thing, collecting is entirely another thing. Pennies on the dollar what can be depositors can hope to get at the end of day. Coaxing a and getting a better shared depositor’s money out of him while letting him do what he is good over a period of time would have been a better way of going about it. After all C’est la vie.
By: Deepthroat on July 12, 2009
at 12:25 am
What happened at the Supreme Courts on 13th July?
By: damith on July 13, 2009
at 9:43 pm
Have agreed not to pay any single cent. All responsible to rest in Prison Life time.
By: Kalu Pusa on July 13, 2009
at 9:53 pm
Mt.Lavinia GKCC case today postponed to 23rd July, as all accused including LK appeared before Colombo Magistrate Courts.
By: Reporter on July 16, 2009
at 9:41 pm
what about ‘ INVETIGATION ” ON vidura college, as FINANCE DIRECTOR OF GK has allegely pumped a lot of money, has met and paid payments through GK Funds,
authorities may check the allegations
By: jay on July 17, 2009
at 1:46 pm
Jay,
I fully agree with you. I am an ex-employee of Golden Key Group. Mr. Sarada Sumanasekara used to buy furniture/tex books/vehicle for Vidura Collage while he was Finance DIrector of Golden Key..It is a common talk amongst employees of Golden Key Credit Card that Mr. Sarada diverted funds to Vidura collage which is owned by his father. Also there were rumours running he transferred huge some of money through illegal channels to Italy where his sister is living. His close friends such as Darshana Rajapakse, Bimal Mudalige and Sudath Delpe were inducted into higher positions like CED/COO/CEO in Golden Key group of companies, even he created companies only for accomodating and paying salary to his friends. These guys are not even “O” level but they were paid huge salary of above 400000 rupees per month. Police should investigate this also.
By: Shromi on July 23, 2009
at 8:50 am
This is absolutely true. Golden Key Finance Director Saradha Sumanasekara was a very powerful official in the Group. He used to open New Companies to accomodate his friends and henchmen and to offer them massive salaries and foreign trips. Non of the CEO/COOs were not even ‘O’ Level. Bimal Mudalige, Darshana Rajapaksha were only a few. All these people should be insvestigated by the CID before they run away or tranfer the assets to a thid party.
By: Sudath on August 19, 2009
at 7:12 am
This is a BIG joke!! A LOT OF PRISON OFFICAIL’S CHILDREN ARE GETTING EMPLOYED IN CEYLINCO INSURANCE!! THIS WRONG, CURRUPTION. They allow Dr Punarjee to visit his mother unlimited times, can a poor prisoner have the same facilities??
Dr Kothalawala who is a PRISONER is addresed to as “SIR” how come!!
By: Bernard on July 17, 2009
at 7:08 pm
Children of Prison officials alson getting admission in Vidura College..
By: Shromi on July 23, 2009
at 8:40 am
This came on LBO..
Sri Lanka Golden Key needs Rs13bn in outside cash to repay depositor: accountants
July 18, 2009 (LBO) – Court appointed accountants probing a failed financial firm in Sri Lanka’s Ceylinco group have recommended that its chairman directors “bring in” an additional 13 billion rupees to start repaying depositors.
The Golden Key Credit Card Company collapsed with debts of 26 billion of which 12.7 billion is capital and 13.2 billion is interest according to initial findings of a Supreme Court appointed committee of chartered accountants.
The committee says two sets of accounts were found and some assets have already been mortgaged to other parties, complicated a liquidation process.
Reconciling
The committee’s report to court says an audit is underway to reconcile Golden Key Credit Card Company’s computer system and customer deposit confirmations.
“The company has two sets of accounts one from the IMAS system (computer system) and a set of corrupt accounts prepared on excel sheets,” the report said citing information provided by Golden Key accounts department employees.
The three court appointed accountants, Lakshman Watawala, Nelson Nagasinghe and Mahendra Panditha, are probing Golden Key businesses and assets to repay depositors by selling them.
They have requested court to ask Ceylinco Chairman and the group’s senior directors to contribute.
“In the first phase to bring in a minimum 13 billion rupees – as declared to the Magistrate’s Court – to repay depositors,” the accountants said.
The Mount Lavinia Magistrate, in whose court a criminal case is being heard in parallel with a Supreme Court fundamental rights violation action, has remanded Ceylinco chairman Lalith Kotelawala and other directors.
“Chairman and directors of Ceylinco consolidated are responsible for the proper management of all group companies and safeguarding the assets of these organizations,” the accountants report said.
Group Dues
The report has revealed that Golden Key’s 55 group firms, including nine foreign based companies, owe the parent 5.9 billion rupees.
“Most of these companies are not in operation and employees of those companies have already left,” the report said.
Golden Key subsidiaries were requested by the Supreme Court to come up with acceptable proposals to the committee to either continue operations or to sell the businesses.
However 24 Golden Key firms had not submitted asset declarations to the Supreme Court appointed committee by June 10.
Sixty four directors of Golden Key group had also ignored court orders to submit asset declarations, according to the report.
Included in the 5.9 billion rupees loaned to group firms is 823 million rupees given to the Golden Key ENT Hospital, in the outskirts of Sri Lanka’s capital Colombo.
Asset Transfer
The report highlights a probable sale of Golden Key’s stake in the hospital to a gratuity fund of Ceylinco Insurance, another Ceylinco group firm, for half the 500 million rupee value agreed to by the boards of the two firms, days ahead of the crisis becoming public.
The committee says the transaction needs to be investigated since it has not been registered in the name of the party that advanced the funds.
“A transaction for the sale of Golden Key Hospital was noticed and an advance taken but the transfer of shares had not gone through,” according to the report.
“Ceylinco Insurance accounts showed the purchase consideration to be 250 million.”
The report does not say who the new owners of the hospital’s shares are. However the hospital was valued at three billion rupees by Ceylinco Consolidated in a valuation submitted to court.
Ceylinco Insurance had also agreed to a sale of Golden Key’s main office in Colombo, two thirds of which is owned by the insurer, to support Golden Key’s liquidation, the report said.
The committee says some promised asset sales won’t directly benefit Golden Key depositors.
Low Equity
For instance the firm only owns a 2.6 percent stake in the Ceylino Ceysands Hotel, one of the properties put on sale by Ceylinco Consolidated and valued at 500 million rupees.
The committee adds that the valuations of asset provided to the Mount Lavinia magistrates in a list of assets the Ceylinco group plans to dispose of and repay Golden Key depositors is unrealistic.
“It was noted that the values placed on them were not realistic and the government valuer will be engaged to give a fresh value of assets.”
It says 844 million rupees in credit card dues are outstanding from employees and related parties (equal to 3.2 percent of Golden Key’s depositor liabilities) to whom statements will be sent soon “requesting payment as per the court order.”
Other debtors owe Golden Key some 359 million rupees. Liquidating other assets may prove difficult.
“Credit facilities have been obtained from banks by mortgaging properties as securities,” making it difficult to liquidate the firm’s property holdings, the report said.
“Even though vehicles are listed under GKCL (Golden Key Credit Card Company Limited), the majority of the vehicles have been acquired on a leasehold basis.
“Most of the vehicles have been taken over by the respective leasing companies,” the report said.
The accountants’ committee is also urging Ceylinco Consolidated’s chairman and senior group directors and directors of Golden Key Credit to provide a solution on the manner in which depositors are to be repaid.
By: damith on July 18, 2009
at 11:01 pm
All they have to do is sell Ceylinco Insurance and Seylan Bank. That should be able to settle all the depositers in cash. Otherwise it will take years and years and we will end up being like the Pramuka Bank depositers
By: raja on July 19, 2009
at 1:33 am
Lalith K: wheeled to court, walks in jail
By Ishara Rathnakara
Golden Key Credit Card Chairman Lalith Kotelawala is adopting another ruse, allegedly hoodwinking the magistrate each time his case is called, by being brought in a wheelchair . Reliable sources say that Kotelawala is hale and hearty and was walking about without any help , within the prison premises and the apparent inability to walk was a ruse adopted by him. He is said to be up and about, attending to his personal needs while in prison. He is also said to be carrying out his daily exercise regimen in prison.In the first instance when the case was called on February 28, he did not come in a wheelchair but, after being remanded he ensured that everytime he came to court he was wheeled in by an aide.
There were times he arrived in an ambulance . However, according to prison sources he refrains from taking special food when he is in prison, and consumes the normal meals given to other prisoners.
By: abbey on July 19, 2009
at 6:36 pm
What is mystifing about the Sri Lankan judicial system is:
1) How in a case where a group of people who deposited money in a company whether they were misled or not have their ‘Fundamental Rights’ be infringed upon.
2) How the accused in a ‘civil’ matter could be held in jail without the opportunity to be bonded and released pending a conviction. Is the accused not innocent until proven guilty in SL?
I guess, Attorney General Mohan Peries, and all the Judges and lawyers in this case all know their jobs and are working within the law.
However I believe the Supreme Court shoul debate on this and the law should be reviewed so it is just and equitable to all.
The way it stands now. It looks like all that is needed to destroy a business, or someone’s life’s work is have an accuser, probable cause, and a favorable public defender. And pow you are ‘toast’ in SL remand prison for a long indefinite stay.
The general belief is that unless the accused is risk to public safety, he or she has the right to defend him/her self with all the resources availble to someone on the outside.
As in thou shalt not kill. Thou should not hold one in jail against ones will unjustly.
Just to let you all know that I am not from the pro Kotalawela camp or anything like that. I am just talking about our judicial system being a bit askew.
By: Deepthroat on July 21, 2009
at 10:55 pm
Bernard, Several prison officials children also getting admission. Though, behind bar, golden key money still play a major role in the walls of Prison !
By: Shromi on July 23, 2009
at 8:13 am
Bernard, severaln prison officials children also getting hough, behind bar, Golden Key money still play major role in the walls of prison.
By: Shromi on July 23, 2009
at 8:15 am
What happened at mount 2day?
By: abbey on July 23, 2009
at 9:58 pm
Three Ceylinco F & G Directors ( Mervyn Jayasinghe, Sunil Jayathissa and Mohan Perera) remanded by Colombo Fort Magistrate Nishantha Hapuarachchi and ordered to impound their passport also.
Two more F&G Directors Sabarathnam and Samanthika Jayasinghe released on cash and surety bail. Open warrant issued another Director Dilham Mohamed.
By: Reporter on July 27, 2009
at 9:42 pm
12 bank accounts maintained by F&G Property Developers in Seylan, Union Bank, PABC, HNB and DFCC suspended today by Colombo Chief Magistrate Nishantha Hapuarachchi and ordered Central Bank to produce an audited accounts of the company for the last 3 years.
By: Reporter on July 30, 2009
at 10:37 pm
Colombo Chief Magistrate Nishantha Hapuarachchi today ordered the CID to freeze the assets in the name of Ceylinco Property Developers (Private) Limited and its Directors’ deposits in several State and Private Banks and also in financial institutions.
By: Reporter on August 3, 2009
at 4:51 pm
Bandula Ranaweera-Director
Reportedly to be having properties all over, to name a few
1. 03 Houses in park road.. worth 200m
2. Eatate of 50 acres adjoining Asian Finance foliage property in Neghombo- wennappuwa area worth over 100m.
there are many more it seems .. authirities may look to recover money for poor depositors..
By: jay on August 6, 2009
at 12:44 pm
Ceylinco Takaful registration suspended
The Insurance Board of Sri Lanka (IBSL) has suspended the registration of Ceylinco Takaful Limited in respect of General Insurance Business in terms of section 18 of the Regulation of Insurance Industry Act, No. 43 of 200 for a period of three weeks with effect from 5th August 2009, the government information department said.
Accordingly, Ceylinco Takaful Limited is prohibited from issuing new insurance policies in respect of General Insurance Business until the suspension is removed and informed in writing to Ceylinco Lakaful Limited by the IBSL.
A renewal of an insurance policy in respect of General Insurance Business is considered as a new contract/new insurance policy.
In terms of section 18 (2) of the Regulation of Insurance Industry Act No. 43 of 2000, Ceylinco Takaful Limited is required to fulfill its obligations for insurance policies already issued.
Until the IBSL informs otherwise, the suspension imposed hereby on Ceylinco Takaful Limited remains unchanged till 4.30 pm of 26th August 2009, IBSL said.
By: abbey on August 6, 2009
at 2:02 pm
Dear Srilankan Depositors.I have worked to Ceylinco Ltd which came under Ceylinco Group of Companies for a short time during 1980.I personnely know Mr Kotalawal is a very good pearson but he has a weakness of believing any one with a Cross around the neck is a reliable man.That is the down fall of him.I have hired by Mr Kotalawala and trained in business management by him and he was my “Guru”, but unfortunately I left the company when Ajith Gunawardana`s and other crooks (Today in custody) were working as Marketing Executives.I left the company because I found in 1980 that Ceylinco board of directors are playing “Kings New Clothes” game with the chairman Mr Kotalawala and he is innocent as he has no any power to control the company because of his foolish belief of the “Cross” .In my letter of resignation in 1980 which contained 14 pages I have explained Mr Kotalawala in details about the future of the company and if this situation contineues, but unfortunately he did not care, because that time I was a very young executive.If he realise now I know Mr Kotalawala definetaely under stand that he has been cheated by his own people whome he had trusted.Today I am living in U.S.A. as an American Citizen, and bearing my M.B.A. granted by U.S.A. for business management.Any how when I seee this honarable gentleman`s situation today I cannot keep my mouth shut because I know that he(Mr kotalawala) has no any intention of cheating to the nation, but he has no any chance because he is the legaly responsible person for those deposits.I wish him good health and good luck.
By: Monty Jayasuriya on August 9, 2009
at 12:40 pm
Dear Monty
You also got your Citizenship and MBA from guys with the ” CROSS” around their neck and Bible in their heart!! So come back to Sri Lanka it is unethical to belive in these corss people!!
Dear a cheat is a cheat do not bring religion or race. LK used religion to his benifit not for the glory of rligion. I agree with every thing else you mention, /No hard feelings.
Please share your 14 page doc with us.
By: Bernard on August 10, 2009
at 8:06 am
Do not drag the cross in to your comments. I am a true buddhist and buddha mentioned this over and over to not to put down other religons. It’s human nature to be greedy. the people around lalth were buddhists who drag him down. It’s the ehichs and principals of people who make them do the things they want to do. You find them in every religion and every race. There are noble buddists and christians all over the world and Vijeweeras/prabakarans in srilanks too who killed many innocent people.
By: yasodra malinga on August 10, 2009
at 10:54 pm
Now there will be a mass protest on 21st venue will be notified, its for Golden Key, F&G, Shriram come one come all, we need to wake the Central Bank for taking its own time……… after all they allowed this to happen!!
By: abbey on August 11, 2009
at 10:08 am
Reports of another GK suicide!! Await further details. I think all the Ceylinco crooks should have a separate Insurance cover for this… you are very innovative Ajith so why not make more money from other peoples misery. Ajith you could have sold your Co (controlling stake) to those high bidders and saved these lives.
By: Bernard on August 11, 2009
at 5:38 pm
Mr.G.S.Manamendra (52) – an investor who invested heavily in GKC, having mental depress due to non-receipt of his money back from GKC committed suicide today at Wellawatta.
By: Reporter on August 11, 2009
at 9:47 pm
Depressed depositor ends life
Suranjith PERERA Dehiwala, Mt. Lavinia Group Corr
A depositor in the Golden Key Credit Company committed suicide by hanging himself as he was depressed over the loss of his hard-earned money.
Gayathra Sandarenu Manamendra’s sister Lakshi Niranjala testifying before Mount Lavinia Additional Magistrate Darshika Wimalasiri at the Magisterial inquiry said her brother had been in a severe state of mental distress since late.
“This was evident from the many letters he had written to the Banks,” said Niranjala, 44, of Wilgoda, Kurunegala at the Magisterial inquiry into the death of Manamendra, 52, of Span Tower Housing Complex, Peterson Road, Wellawatte, a major depositor in the failed Golden Key Credit Card Company yesterday.
Manamendra had committed suicide by hanging himself.
Niranjala said her brother was not employed. He had investments in Finance Companies and the share market and lived on the income earned.
She said her brother studied law but did not complete the law examinations. He had substantial investments in the Golden Key Credit Card Company too and was concerned about the money which could not be recovered although he did not divulge it to us openly.
She said she came to know of her brother’s death when mother called her and informed her about his death.
Kusuma Manamendra, 72, of Templar Road, Mt. Lavinia said the deceased was her eldest son. Her son lived alone at the apartment he bought at Span Tower Building, Wellawatte.
She said the day before his death, her son visited her and had a meal with her. During the discussions he said his health had deteriorated and mentioned about the money he had invested in the Golden Key Company.
He was also a teetotaller who lived a secluded life. She heard about the sons’s death from the security service at the apartment building which informed her that a foul smell was emanating from one of his rooms in the building.
She said as she could not climb the staircase in the building due to weakness in her legs, she immediately summoned her daughter to the spot to assist her in the work.
JMO Colombo South Hospital who conducted the post mortem-examination reported that death was due to suffocation.
The Magistrate returned a verdict of suicide. Wellewatte police led evidence.
By: Tony on August 12, 2009
at 8:58 am
THIS APPEARED IN TODAY’S ISLAND 12/08/2009. INSIDE SOURCES SAY THAT MOST RECRUITS WOULD BE CHILDREN OF PRISON OFFICIALS, AND THIS IS BEING DONE WITH LOVE AND THE BLESSINGS OF LALITH KOTHALAWEALA. ONE WONDERS WHY AJITH/RENGA DUO ARE SO GENOUROUS TO THE PRISONS OFFICIALS…………..
Ceylinco Life to employ 1,700 over next five months
Ceylinco Life has announced plans to recruit 1,700 sales consultants and agency supervisors by the end of 2009, a move the life insurance leader says reflects its confidence in the potential of the industry.
A new recruitment campaign launched by the company in July is scheduled to run till 30th September 2009.
Ceylinco Life’s current sales team numbers around 5000.
By: Tony on August 12, 2009
at 9:10 am
keeping one by one directors in the custody will not solve the problem, we are in the middle of a global recession, ceylinco group is also a major finance company in Sri Lanka , which has gone bust like those in UK and USA. However those countries didn’t remand any directors, they handled the situation differently.
By: sandy on August 12, 2009
at 9:20 pm
Dear Sandy
How did they handle Madoff??
Going bust genuinly is OK. But in Ceylinco this is not the case my[dear. Open your eyes!!!
By: Bernard on August 12, 2009
at 11:19 pm
I agree with Sandy.There should be a solution to this problem.definitely not by keeping Mr K in the prison.
One should be thankful that ceylinco companies are still trying to keep their heads up in the midst of all these problems.Thats great.My daughter who had invested with one of the companies, received a part payment.Thats because they are continuing with their business.If they close up, we can only go to courts.Will that help us????
Best thing is for the Government to have a control and allow these companies to function.This will definitely help the people.Not only the investors but those working for a livlihood.
Draging religion is a crazy thing.No one can say that any man is perfect, no matter what the religion is.
So lets hope for the best and not to bring down the Ceylinco group by keeping Mr K in prison.
By: randolph perera on August 13, 2009
at 12:37 am
I agree with Sandy. Extremists mislead the poor depositors calling them for demonstrations etc which are short lived and will only satisfy the egos – Do we get our money back after a demonstration or even after 100 demonstrations!!??. If we ask for the directors to be locked up, who is going to settle our accounts? Can we really rely on the committee appointed by Central Bank to pay us back? Has anyone heard from the 3 member committee?? How often do they meet?? I would sure like to think that they are working 24/7 to give me my money back. But we all know that is not the case. These people have other things that they have to attend to….. so settling the Golden key depositors is only a side job for them!!
The only party I can think of who is benefiting from the directors being locked up are the lawyers and sure they would like to keep the directors locked up for as long as possible for publicity and other perks. Also what do the lawyers know about time value of money!!! The longer you spend time postponing the case and uttering the same comments at court sessions, the chances of me recovering a decent portion of my deposit is being deprived for me!!!! Why don’t you understand that!!!!??
Let the directors out and get them to liquidate all the assets of GK to settle depositors as soon as possible. The longer this drags the value of the assets are going to be even less. We all know in Sri Lanka when no one has custody of assets they are mysteriously taken over by unrelated parties!!!!
Let the other Directors/ new management run the other surviving companies of Ceylinco with strict government supervision so that they will not collapse and make more people redundant or put other depositors under the same plight as me!!!!!
By: sarath on August 13, 2009
at 4:26 am
I also agree with Sandy. The approach taken by the courts hasn’t helped the depositers one bit. It’s actually making things worse. I also feel that the government/central bank should become a part of supervising other ceylinco companies, which can instill confidence among the public. The directors should be made a part of the liquidation process. Even in Madoff’s case, only madoff was imprisoned and the other people were used to help with recovering the assets. The only people who are making money right now are the lawyers, and they dont have an ounce of financial knowledge to solve this problem.
By: raja on August 13, 2009
at 8:27 pm
Dear Sarath, Sandy and many more……..people
I feel that it is too late for anything now as it is now out of the hands of Ceylinco?????all I knew was as Finance person, appointing committee under jurisdictional grounds to work with all the directors and let the committee have all the powers to monitor the directors and any violation giving all the directors punishment under criminal law and let the directors to first all the depositors until they last penny and any grounds of non payments then court should decide whether directors should declare their bankruptcy. Because if that is case no director can hold any fixed or floating assets anywhere in the world and bankrupt people should always survive on government doll on monthly basis. So what I feel is this would have done by considering all these factors of time value of money, financial risk, credit risk, repayment risk and many more risks involving in this sector. But ironically after all, then let the court decide whether they are guilty of misappropriation and mismanagement under company’s Act…..My problem is at the moment we have messed up these two scenario at the same time. Dragging the problem for another two weeks means, most of the time it may be one year for poor deposit holder. I am not deposit holder in Ceylinco or anywhere in the world. But I know how it is important to all of us. When I was doing my professional exams in Sri Lanka, I fought for rupee more than rupees….and for that I worked till late night in part time places. So hopefully, all of you will be free mind soon. Budu Saranai
By: Sally on August 13, 2009
at 8:49 pm
Its true the lawyers are making money. When K was not in prison he was giving excuses and false value asset list to courts where if he were left to pay this on his own terms the poor depositors would have got almost nothing and the Ceylinco Crooks would have lived a nice cosy luxury life! with other peoples money. Cos they were impriosoned and some Ceylinco Co’s crashed as govt and regularity officer looked at thier related company accounts a bigger disaster was averted!!
This my dear friends is Ponzy group of Co’s. New deposits were taken only to service the interest payments of the older depositors. The directors made merry with the rest of the money. If one Co wanted cash the other would lend to it and so on………
Exchange laws were violated, Tax Laws, CBSL regulations were violated, BRIBES were paid…….. MANY MANY laws are broken, so IF YOU BREAK THE LAW YOU HAVE TO BE PUNISHED BY IT. Pro Mr K friends it is lame to say that others do it so why should Mr K only be punished, or he did not know.
Mr K went to Jail on a complaint made by Mr OTHANPITIYA of Ceylinco CISCO that there was a fraud in the company!!
Suffering depositors have a right to protest cos Mr K was giving them excuses and delaying re payment plans. He went back on his infamous BMICH declaration.
REMEMBER IT IS A CRIME TO BREAK THE LAW AND NO ONE SHOULD BE ABOVE THE LAW DUE TO THIER STATUS.
THIS IS THE SAME MAN WHO SAID THAT THE LTTE IS NOT A TERORIST ORGANISATION!!
DEPSOSITORS DID NOT PUT THIS MAN IN JAIL!! HE DID IT TO HIM SELF.
MOST CEYLINCO GROUPS VIOLATED THE LAW AND OPERATED PONZY OPERATIONS!1
By: Bernard on August 13, 2009
at 8:59 pm
ISLAND 14/08/2009
NOW ARE THERE PEOPLE WHO STILL SAY THAT LK SHOULD NOT BE JAILED??
Now, Ceylinco in fresh controversy
The Ceylinco Group, battered by the public asking for their money back, is now facing the wrath of another type of persons – tenants of its up-market Millennium City in Kurunegala.
The Society of Millennium City Residents are protesting the sudden demand by Ceylinco Investments Corporation Ltd. (CICL) the new owners of the project, for reimbursement of a ‘maintenance fee of Rs. 2500.00 per month’ for the swimming pool, security staff, garbage removal and the supply of electricity to the common areas in the sprawling scheme.
These facilities were promised free by Ceylinco Real Estate Developers Ltd. (CRED), the original owners and are not revealed as payable in the promotional material distributed or mentioned during buyers negotiations with sales executives when they were sold the properties, ranging from about Rs. 5 million to over Rs. 10 million,
Further, there was no mention of extra payment for a “fantastic range of facilities” in the sales promotion brochure issued recently.
Two residents have independently objected to the demand for this fee and written to the new holding company stating that their views are forwarded with no prejudice to the stand taken up by the Society.
They state that the recent move, in March, to amalgamate Ceylinco Real Estate Developers Ltd. the company which managed the scheme from its inception, with another company in the group Ceylinco Investments Corporation is to prevent prosecution of the management of the former for mismanagement and fraud.
The letter states that CRED Ltd. is the firm which is named as the ‘Vendor’ in the Deed of Transfer of the properties purchased outright and scheduled as the ‘Company’ in the Agreement of Construction signed by those named as ‘Purchasers’. The letter states:
“It is also Ceylinco Real Estate Developers Ltd. which is similarly named in the Agreement No. 997 dated 8 July 2004 signed with the Board of Investment of Sri Lanka for the development the Millennium City, Kurunegala Township Project with attending benefits according to the BOI laws.”
They want to know (a) when and under what circumstances Ceylinco Investments Corporation Ltd. has taken over the obligations and responsibilities of Ceylinco Real Estate Developers Ltd. and (b) the names of the Directors of Ceylinco Investments Corporation.”
They seek this information before extra payments are considered “since several companies affiliated to the Ceylinco Group stands accused of alleged financial and administrative mismanagement and we are cautious that the extra funds demanded will not be efficiently managed to serve the purposes for which they are demanded.”
A spokesman for the resident’s society told “The Island” that there is a suspicion that the circular letter on a computer-generated letterhead demanding the maintenance fee, signed by an unnamed General Manager, is not a CICL Board decision since the Chairman and the Deputy Chairman are in remand custody for their alleged role in the Golden Key/Shriram scam.
“We are also suspicious of this sudden move to amalgamate the two companies” when the can of worms was opened early this year. There were demands by CRED investors, mostly small timers from Kurunegala, for their deposits amounting to over Rs. 500 million. The amalgamation was to save the directors of the company from incarceration if any of the depositors did go the CID as in the case of other Ceylinco companies such as Shiram and Finance & Guarantee,” he said.
“Over Rs. 50 million has been paid out by new tenants to Ceylinco Investments Corporation Ld. during the last few months and we are suspicious of the accounting procedures for these monies. We understand that these monies are being utilized to privately pay out the demands of chosen CRED depositors”, he said.
He further told ‘The Island’. “We have information that some of the depositors with CRED have been offered Millennium City land in lieu of monies that are outstanding on their deposits while others have already been given land which was part of the assets of the company”.
“That is why we are asking whether there have been any funds kept apart by the project managers for a consolidated fund to be utilized for maintenance and sustenance of infrastructure and common amenities. This is normal practice for such a project especially under the BOI aegis.”
Further, many of the tenants who have paid have not received their Deeds of Transfer since it is understood that the deeds have been used as collateral for funds raised by CRED.
Investigations by ‘The Island’ also reveals that since the housing project came under BOI aegis, CRED were entitled to duty free imports materials and equipment. The question asked is whether this equipment and materials were used for the project or whether the imports were used elsewhere.
By: Tony on August 14, 2009
at 10:06 am
What is Ajith doing now???
Ceylinco boost turnover on the bourse
Turnover on the Colombo bourse rose to Rs.456.5 million, up from the previous day’s Rs.293.6 million, with an unusually large trade in Nestle Lanka and a substantial volume of Ceylinco Insurance generating half the business volume on a day where both indices fell – the All Share by 9.62 points (0.38%) and the Milanka by 26.93 points (0.95%).
Ceylinco Insurance saw over 0.5 million shares done between Rs.225 and Rs.230 gaining 50 cents to close at Rs.230 generating Rs.120.8 million turnover.
Here too 487,700 shares were crossed at the Rs.230 price with brokers having no information who the buyer or the seller was.
Analysts said that Ceylinco had not published its top 20 shareholders in the latest quarterly report as required by the new rules and there was no information on the top 20 shareholders of this company where ownership of fairly large volumes of shares have changed hands recently.
CID should investigate this…. Island 15/08/2009
By: Tony on August 15, 2009
at 6:50 am
When is next hearing H.C? Are you going to protest against C.B.?
Please let me know. I also want participate with you all.
By: Nobert on August 18, 2009
at 9:48 pm
On 21st Aug infront of Fort Railway Stattion.
THERE ARE SOME GOLDENKEY VEHICLES BEING PREPARED FOR AUCTION NEAR A YARD AT THE FORE SHORE POLICE.
SOME BUSINESS PEOPLE FROM WENNAPPUWA CLAIM THAT THEY HAVE BEEN ABLE TO BRIBE THE GOVT VALUARES DEPT OFFICIALS TO UNDER VALUE SAME SO THAT THEY CAN OBTAIN AT LESSER PRICE.
PLEASE MR PRESIDENT OF ANY ONE IN POWER WE ARE HELPLESS!! CAN SOME ONE IN POWER PUT AN END TO THIS??
By: Bernard on August 18, 2009
at 9:59 pm
Lalith Kotelawela, is the Big fish out of the small fry, There are very big players in this game of swindling the Sri Lankan people. Prabhakaran Killed and Murdered Sri Lankans, but this is worse, whoever is swindling the people of their hard earned money,and then getting the Inland Revenue to Harass these investors to unbearable proportions, till they kill each other through suicide,is a very big question, our true and Cruelest enemy is none other than ourselves.
On this issue I really wonder who is Patriotic,and who really Loves the Country, I am sad to say that there is none, the issue here is to hell with the people and grab all the money that you can.
By: Jehan on August 19, 2009
at 10:28 pm
There seems to be a a clash between Anusha and Dushyanthi of the GK association. One group wants more street protest and coffin burning slogans against AG and CBSL GOV…….. the other wants to negotiate with AG and CBSL…. folks what do you think is better??
By: Bernard on August 20, 2009
at 6:31 pm
So what went on at Mt Lavinia today?
By: arjun on August 20, 2009
at 10:14 pm
As one of the founder members and former Treasurer of the GK depositors association it saddens me to know of a mud slinging campaign been carried out by certain individuals with vested interest.
They accuse me of getting a full refund of my funds from Lalith Kothalawela (Rs5Mn) in order to buy my silence and sabotage the functions of the association.
I strongly deny this accusation!
I am one of the petitioners who have filed the FR case in the Supreme Courts praying for Justice. It is legally and fundamentally wrong to obtain payments or refunds from Ceylinco related parties when legal action is proceeding and without sanction of the Courts.
I see that settling 1 depositor of 9000 depositors would not be of any advantage to the Ceylinco parties!!
The spat the these parities have against me is that I was against holding any protest before the 1st of September 2009 as the Supreme Courts had requested a repayment plan on this date. I was also against burning effigies of Mr. Nivard Cabral and Hon AG Mr. Mohan Peiris. It is the institutions headed by these two gentlemen that are spearheading the repayment plan and antagonizing them is counter productive.
Further more I was against holding the demo in Fort as it is a High Security area and was against jeopardizing what ever arrangements that are in force in this area,
As Depositors we ask for justice and seek help of his Excellency the President and in no way do we want our struggle to be anti government or be a political one. Shouting slogans and spending poor depositors left over money to buy coffins is a waste of time and money.
If the Ceylinco group does not pay our Money, yes we should take to the streets.
We should protest, went our anger on them and not on the Offices and Officials of the State!!!
I warn that some elements (may be with Ceylinco Blessings!!) are miss leading and misdirecting the poor depositors and converting this association to a NGO like organization which does not serve its very objectives.
I shall never give up our struggle!! There are many who share my views. Let us not stay silent and be focused on Lalith Kothalawela and his gang of crooks, and trust that Justice will prevail.
By: Dushanthi Happugoda on August 21, 2009
at 12:52 pm
According to a report in the “Divaina” of 21st August 2009 reported by Jayantha Silva, the Mt.Lavinia Chief Magistrate has rejected the application for bail and re-remanded Lalith Kothelawela.
According to this report it is also stated that even though the Supreme Court had ordered that Golden Key release Rs.1 billion to pay the depositors,so far it has not been done according to State Council who reported to the Magistrate on the matter.
Mr. Kavan Perera the 2nd suspect in the Golden Key Credit Card Scam of defrauding depositors of Rs.26billion & his application for bail will be taken up for consideration in the near future.
It is obvious that neither Golden Key or Ceylinco Boss Lalith Kothelawela whose slogan for Seylan Bank was ” Suhada Hadak Athi Seylan Bankuwa” do not have generous hearts after all. They are watching and waiting for all the depositors to commit suicide so that they will not have to pay back! We have read with great sadness how Ceylinco Group is messing around with the lives of depositors who truly thought they were dealing with a “Gentleman’s Business Conglomerate” because they trusted Lalith Kothelawela so much.
Sad that he continues to do his double-acting while still remaining in prison.
By: Samanmalie on August 21, 2009
at 9:57 pm
In this way I don’t think that non of you will get paid…everyday what we can see is a bunch of street dancers showing their acting once in while on roads in national suit, with sunglasses in their heads, hand phones with unlimited calls and many more dramas…I don’t even think that most ppl in this drama has money in GK….I feel that they get paid for this drama….and who ever who fund this ppl don’t even know that in this way they can’t even get single cent….
If you can called this money as hard earning money….then I have major doubt of the definition of the word of “Hard earning” because they these ppl behave on roads like thay have other sources of income other than they hard earning money…
The whole purpose of your effort should focus of getting back of your money….and nothing else….but the way you do these kind of demonstrations or protests have no direction to the prime objective of this and ultimately ended up with “Nari Nataka”…..and we all laugh by looking at this and not feel sorry of you all…which means the massage has not been delivered as depositors wanted and it has been delivered as drams producers wanted….
When you fight for right….you must always focus on the fight and it should not go away from the right….it doesn’t matter whether directors are jailed, bailed out or what ever…what you need is to get your money back….but when I see this protest…I can say that you don’t need money and you need to destroy the names of the directors with their lives….but for that you spent 13.8 Billion worth of capital and 12.8Billion worth of interest….surely you don’t need to spend that much to tarnish them….It will happen as the courts proceedings were going on and no director can get away from being guilty on mismanagement….but it will happen in the highest level of jurisdictional system with extensive evidences and justifications….
Please understand this is not a street drama….this is a FIGHT for your RIGHT and you ppl are milliners of our country…so having all these elements on your heads, you must come to to the street….But now a days I can’t see that any of you all have the right attitude of what you are doing and how you are doing….
End of the day, the directors will also go the same place that all of of us are going and it matters how soon we go there and how good we behave in this world and all of us a have time to think ourselves before we go back to the place where we belong… and don’t keep things in your hearts that give pain at your last moment…..because that moment sometimes few second to years to suffer until you find the right time….
As many of you all know…we come to this world with crying and most of us are also going with crying……money can do lot more damage to us…than ANYTHING…….
By: Sally on August 21, 2009
at 11:02 pm
Sally’s comments are fantastic! There is lots of advise to the affected from the side-walk as a bystander sees things but not as someone whether millionaire or not, of having lost one’s savings to crooks who have done the grand with the money of other people be they “hard earned” or not-it is their savings that they have lost!
It is because of the street protests that the crooks have remained in prison instead of being bailed out and then taking the next flight out of the country to greener pastures like Sicille Kothelawela who is yet to be apprehended!
Sally seem to feel that the protestors are paid by someone to be on the street as it were which is ridiculous. Who are the people who enjoy the hot midday sun in Colombo breathing fumes from vehicles passing by? What is wrong with dark glasses if a person cannot stand the glare of the sun- they are still willing to sacrifice being in airconditioned comfort & ofcourse it is for a cause- to put pressure to get the depositors some kind of redress.
There is no need for people to organise themselves to tarnish the good name of others (if they lived upto expectations)- the directors and owner of the Ceylinco Group has tarnished their own names by their crooked & defrauding minds. No one else needs any special effort to tarnish them.
May be Sally, you should send your good advise to Drs Lalith and Sicille Kothelawela to stop their street drama and pay back the moneys they have cheated!
By: Samanmalie on August 22, 2009
at 8:12 am
You people deposited large sums of money in a company which was not a regulated bank.
Golden Key did not STEAL your money, the company invested your money in ideas, new ventures, high risk business, some worked well others did not, your money created, jobs, created demand goods and services, drove and expanded economic enterpise across the board which in turn created more jobs and more demand for credit and so on. It worked exactly the way market capitalism should. The director’s did not take your money in suitcases to Las Vegas, or Monte Carlo and play roulette with it. Had they done it they may have had a little bit more fun at least.
Sure during times like this there are bound to be excesses. It is the way of the world. It is during bad times when it is essential to cut our losses and hunker down and not divide and fall.
Sri Lankans in this type of situation are the most hot headed, emotional bunch of people ever. You guys organized well in the begining with protests and such. I was impressed then and now however like most Sri Lankan groups you seem to be spiraling out of control and disintergrating.
You DID get a high return for your investment. Those were the good times. You can now call it Ponzi Scheme. But that is what business people do. I don’t believe you people were that naive.
Unfortunately you have a world economic downturn. Your money seemed to have been gobbled up overnight. So what do you do? You join forces, organize, and seek settlement.
There was a crutial time when the movement should have thought better of pushing for Mr. Kotalawela to be jailed. He pledged to honor GK’s liabilites in December. His pledge should have been good enough for you. After all you invested in him because him that most of you invested in GKCC correct?
You folks smelled blood and were impatient. Mind you I can understand why. But nevertherless it was bull headed.
You all could not see beyond that belief there was a kings ransom stashed away in offshore accounts and could be it could be got at back thru the govt. intervention.
Any Ceylinco insider with a bit of financial know how of the Ceylinco Consolidated could have told you that there wasn’t 26 billion worth of liquidity in Mr. Kotalawela’s accounts or his entire portfolio. Somewhat like King Mahasena story Mr. Kotalawela’s wealth is in assets and stock in his companies. He has no expensive lifestyle, hobbies, ex-wives, spoiled children or anything like that. His companies are all there is for him. I can’t believe Ms Hapugoda and crew did not do some homework and talk to people on the inside before pressuring the AG and Co. who had another axe to grind to move in. Instead you folks branded him and senior directors, lifelong cheats and crooks. Do you blame them for going on the defence? So when Mr. K was thrown in jail it was like you shut down the only person who could have helped get your money back. The Govt. could have helped, like in the instance of not letting Seylan Bank fail and such. But putting all your eggs in the govt. basket and expecting them to get you your money back. What were you thinking? That was dumb. You guys acted just like any ordinary bunch of Sri Lankans to the letter. Everone has an opinion and wants it acted upon and no one listens.
As much as I hate to hear any more of you commiting suicide. Hey its only money. If the whole thing is gone or part of it is gone. Deal with it. Its never to late to learn or start again.
By: Deepthroat on August 22, 2009
at 10:46 am
Deep and Sally
Do you say that LK has not broken any laws, like the Tax, and Foreign Exchange laws? Because he is of a wealthy family is he above the law?
You guys look up to him because he has done charity and given jobs………. all this was to build his image with other people’s money!!
THIS CAN NOT JUSTIFY HIS WRONGS!!
Easy for you Deep to just say “do not take your life” It is because people feel betrayed by this crook that this happens,
Capitalism with honesty is OK. But all ethical and business norms have been stepped over again and again.
How could we take his pledge seriously, when he went back on his word by February 2009??
DO NOT MAKE HIM TO BE AN ANGEL!!
By: arjun on August 22, 2009
at 12:04 pm
We are not making any angels as we are also sinacle ppl in this world….and apart from that we all know that who ever who violated the law in SL will get their charges according to our justification system and there is no question on that…because no person is above the law….whether you wealthy or poor….healthy or not…if you have done something wrong….you have to be prepared for the charges….
But what is important in life is not the money and there are lot more preferences in life and indeed the first thing should be our life….the other things….but when we see these dramas on street, we feel that milliners have no life other than money and for them it is like Oxygen….But thankfully for us still Oxygen….
Every life has its own dimensions and those dimensions are not created by ourselves….so when you created another dimension other than what has been created by nature and suddenly it crashes…then you become more vulnerable than ordinary person and that is exactly what has happened to these depositors….
I don’t think that many of you all know remember that our lord BUDDHA said to Ananada thero about the “SARPAYA” and after 2599 years, I got the real meaning of that word thanks to the Deposit holders and GKCC….
Everything happens to us Arjun but life should move on….end of the day we may succeed or may not….but still the life will go on…..and what ever comes beyond our expectation called Bonus ….and rather than keep expectations in life…please keep dreams that keep you alive much more healthy way than wealthy way…..
By: Sally on August 23, 2009
at 2:17 am
Dear Samanmalie….few things I wanna know from your comments…first one is a very basic question which most of ppl wear sunglasses to protect eyes from UV from the sun and I never heard or seen that ppl wear sunglasses to protect the head????
Second thing is if you really want you money back…then why can’t you fight for that rather than making this dramas on street???????
For me it is indeed a drama and I am absolute sure that these ppl are not depositors of GKCC just because of their acting than their anger…and anger should come within yourself and not with elsewhere….but when you look at their protest..we can easily say that except very few faces who are well behind the row having those innocent banners, all others who paid by depositors to dance on behalf and I feel that is more justified if they protest than dancing for your right….
But Sad to say, I still can see a drama than protest….
Another thing is I don’t know whether in realistically that Ceylinco name has already tarnished…but of course it is happening in drastic way…But my problem is..I still can’t figure it out whether you want you money back or not……because in somewhere you ppl lost your focus and now what I feel is ……you ppl are also looking for path to get into the track….sadly…all of you all going in different way to find the shortest path for this….and I am sure in this way you will never ever be able to get close to path instead of getting lost further and further….
In essence….comments were focusing on the the purpose of protest and productivity of the whole protest and not the efficiency???? because end of the day whether you run a business, you should know whether your business has profit or loss and if you done something like this, you should know whether msg has already been delivered…But in this protest instead of delivering….there is a msg jam…..
By: Sally on August 23, 2009
at 1:49 am
Dear Sally
In Sri Lanka, take Angulana, Malabe….. if the people did not create drama the law would not have been applied!!
LK’s 1st few court visits were with a VIP protection unit of the STF!!
So if these people did not create a drama things would have been different.
By: arjun on August 23, 2009
at 8:48 am
What happened at courts today??
By: Banga on September 1, 2009
at 7:14 pm
What happened at courts??
By: Banga on September 1, 2009
at 7:18 pm
Case Postponed for 15 years.
By: Jude Ramalingam on September 1, 2009
at 10:08 pm
Desperate Depositors, you must demand the authorities to sell the personal assets of all Ceylinco Consolidated directors and pay at least part of your dues. They were/are paid in millions. Some are changing names. Some say they are clever enough to sell their companies and get out of the problem. You must demand authorities to publish names of all ceylinco consolidated directors in media and collect info on their assets before those crooks transfer them and quit. Keep an eye on Deputies who are not in jail. Its your money in their assets!Good luck!
By: shanta on September 2, 2009
at 10:56 am
Jude Ramalingam—- it shoud be fun foe someone to play with..
Shantha… agreed with your point, that is the only way to recover some part of your deposits at least.
Directors of CEYLINCO have not earned any profits by doing business as it appearing now. they have amassed wealth by robbing public deposits therfore its very fair to recover from so called wealth
Jay
By: jay on September 2, 2009
at 12:25 pm
Hello guys, isn’t this how it works;
A insurance executive or sales executive of an insurance company calls you and tells you that he/she got your telephone number form someone you know, and then ask you to deposit money in one of the ‘insurance companies’, stating that this company is backed by such and such a person of high integrity and high wealth? Didn’t that sales executive told you, even if something goes wrong, which will never happen, this person’s private money would be backing your investment? Weren’t you given a higher rate of return than the Central Bank?
That’s how its done, and its done all the time by many other ‘high integrity’ people’s sales executives. There are many, who falls for that and deposit their hard earned money in these ‘shady’ schemes.
How many of these ‘high integrity’ people sell their ‘insurance companies’ to other ‘shady’ people, and you don’t even know, if the ‘insurance company’ had changed hands. You NEVR know where your money is being invested or even if the money is EVER invested!
Your money cannot make more money than its stipulated by the Central bank in these ‘shady’ insurance companies. If you can’t make your money bigger, did it ever cross your mind how a man with a tie in a ‘insurance company’ make your money bigger?
Remember, these ‘high integrity’ people are only concerned about how to make more profits for themselves, BUT not for you!
By: Ratne on September 3, 2009
at 12:26 pm
Warrant extended for Sicille arrest
The Mount Lavinia court has further extended the warrant for the arrest of Mrs. Sicille Kothalawela, a director of the Ceylinco group who is wanted in connection with the Golden Key scam. The court also further remanded the suspects arrested in this connection.
Mrs. Sicille Kothalawela is believed to be hiding in a South East Asian country.(AW)
By: Banga on September 3, 2009
at 6:23 pm
GK directors faced with jail term if payment plan not finalised
By Bandula Sirimanna
A 3-judge Supreme Court bench headed by Justice Shirani Tilakawardane on Tuesday directed the Attorney General (AG) to facilitate a meeting of all lawyers representing Golden Key (GK) Chairman and Directors, its depositors, the 3-member accountants committee appointed by the court to assess the assets of the company, and Central Bank representatives to formulate a payment plan on September 9.
Golden Key depositors protest
When the case came up before the Court, all parties involved in the GK case agreed to formulate a proposal at a meeting presided over by the Attorney General. If the directors fail to obey the directive then they will be sentenced to seven years rigorous imprisonment for contempt of court, Justice Thilakawardane said in court.
This came after the Central Bank and the committee informed the Court that they are unable to prepare the payment plan as there isn’t sufficient money available at the moment and they are seeking ways and means to raise funds by selling shares of the company.
Head of the Committee, Lakshman R.Watawala told the Court that GK directors have given an undertaking to bring in Rs.2.5 billion but he is not sure as to whether this amount of money could be raised by them.
The Court directed that immediate action should be taken to commence repayment to depositors on sums below Rs 1 million from the smallest deposit first going upwards on a laid down criteria approved by the Court. For the balance payment a scheme of payment up to Rs 2 million should be submitted within a period of six weeks, the Court said.
Senior State Counsel Janak de Silva agreed to facilitate a meeting on behalf of the Attorney General with interested parties along with the presence of J. P. R. Karunaratne, Central Bank Additional Director of Non-Bank Supervision.
By: Banga on September 6, 2009
at 1:41 am
Ceylinco Islamic ‘profit sharing’ Company too collapses
(Lanka-e-News, Sep.12, 2009, 6.55PM) The ‘Ceylinco profit sharing’ a Co. functioning under the Ceylinco group of Companies has also totally crashed. Consequently, 11000 Muslims who invested in this Company have been plunged into serious problems being unable to recover their monies.
The amount invested by these individuals is Rs. 8500 million.
As interest taking is prohibited in Islam , this Company was launched for Muslim investors . A majority of the investors in this Company are Muslims who have either gone on pension or are Muslim widows.
According to reports, the wife of an Eastern province Minister has been granted a loan of Rs. 65 lakhs by this Company which has not been recovered.
The Depositors have started an Organization , and are taking steps to recover their monies by legal processes .
By: Banga on September 12, 2009
at 7:23 pm
Lalith Kothalawala who had allegedly defrauded Rs. 3.9 million while serving as the F&G Real Estate company chairman, today, promised to submit an affidavit before the Fort Magistrate by promising to grant 1/6 of his personal assets to the proposed repayment scheme.
By: Reporter on September 28, 2009
at 9:20 pm
What is this 1/6 share? What a joke. How about Arsakularatna. He also deposited more that 5 Million. May be he got his money. Otherwise how can he appear on behalf of LK. We don’t mind his assets. We need our money back, at least our Principal. He must contribute at least 2/3 from his assets.
By: Nobert on September 29, 2009
at 1:24 pm
The latest information which appeared in the Sunday Island of 4th Oct 2009 “Even 11 months after this Ceylinco subsidiary crashed-Golden Key repayment plan still held up as Kotelawela seeks more time to submit’fresh proposals’ ” reported by Suresh Perera states that Kotelawela and other Golden Key suspects have been re-remanded and that bail applications of the suspects were disallowed following objections by the CID which said there is a possibility ofthem leaving the country & that this could result in public unrest. The Chief Magistrate directed the police to submit a progress report on the investigations on the next trial date- 13th October 2009.
It was so easy to swindle the money and siphon it elsewhere but Kotelawela has taken 11 months to find a way to submit a feasible and honest proposal so far-funny isn’t it?
The article is interesting and it is advised that those interested check out the details in the Sunday Island mentioned above.
By: Darmitha on October 4, 2009
at 10:11 am
Daily Mirror says” Ceylinco chairman Lalith Kotelawala, the first suspect in the F&G Real Estate case, who allegedly defrauded Rs.3.9 billion while serving as company chairman was given bail today by the Fort Magistrate Gihan Pilapitiya after he submitted affidavits pledging to remit 1/6 of his personal assets to the proposed repayment scheme. He however remains in remand in connection with several other cases. “
By: Reporter on October 5, 2009
at 9:00 pm
Ceylinco Life customers asks for govt intervention
customer Dissapointed in new management
By Cheranka Mendis
Depositors outside Ceylinco Life
Months after then Chairman of Ceylinco Group, Kothalawala reveled the Golden key crisis and the crippling systems that followed, and the taking over of 4/6 companies of Ceylinco Consolidated depositors are still not happy it seems.
Now pleading the government to takeover the reins of the Ceylinco Life group from the hands of the institutions now in charge, several depositors yesterday carried out a mini protest in front of the Kollupitiya Ceylinco Life facing the President House.
Stating that this was but the first step of what is to be a large scale protest campaign, with islandwide participation of all or most of the depositors who are not pleased with the actions of the new management, Ajith Prasanna, one of the protestors claimed that the due insurance claims of the depositors have not been paid as yet.
Rohitha Perera, another victim of Ceylinco crisis
“The hospital bills that should be rightly paid to us have not been paid yet. The legally agreed claims have not been complied with; and as a result we, the depositors are at loose ends,” he said.
“Nothing has been given to us as promised as yet; the claims which are rightfully ours have not been paid. My child underwent an operation last year as did my wife, but none of the hospital charges or the doctor’s fees have been paid yet. But they took charges for two installments for this life insurance which got cut off from my monthly salary, I somehow managed to cut that off,” said another depositor to Daily FT.
Revealing a disfigured hand, Rohitha Perera, another such depositor tells us his story. “3 years ago I met with an accident where my hand was severely injured. As a result one of my fingers had to be cut off while another was disfigured. I also had to undergo a heart surgery. But none of the claims have been paid. I paid my premiums on due days consistently as well which amounts for almost 500laks. Finally I filed a court case against the company as well, but they just keep post-poning the dates.”
“I entered into this with full faith in Kothalawala Sir and Ceylinco life, and now they have turned their backs against us. Everyday they make up lies and when we ask about the claims. They drive us away as they drive away dogs. Who do we turn to now?”
Driven with the desire to get what they rightly deserve, a group consisting of 20 such depositors is now planning to a launch an islandwide campaign calling the government to take over the reins from the new management.
“We can at least make an effort and begin to trust these roughs if the government was holding the management. These new companies only want their profit and are oblivious to the people’s cries,” they said.
When Daily FT asked a manger of the branch who wished to remain anonymous about the protest he said: “these people are coming here to get old claims which they are not entitled for. They are here to make a quick buck and nothing else.”
“I have never met these people before even though they claim they have met us previous to the protest.”
The depositors also said that with the very little faith left in the institution, they are obliged to ask for the entire value of the insurance at once if the claims for the depositors are not paid very shortly.
Pic by
Dinuka Liyanawatte
By: Banga on October 7, 2009
at 6:30 am
CAN THE MANAGEMENT OF CEYLINCO HOUSING TELL THE DEPOSITORS WHATS HAPPENING WITH THEIR MONIES.I AM SURE THE INVESTORS HAVE A RIGHT TO KNOW WHERE THEY STAND.THERE ARE TALKS THAT THIS WILL BE TAKEN OVER BY A SUBSIDIARY OF A GOVERNMENT BANK.IS THIS TRUE????IF ITS TRUE WOULD THE DEPOSITORS BE BENEFITED?
By: randolph perera on October 10, 2009
at 11:10 pm
The Supreme Court, in the Golden Key case, ordered the sizing of Rs. 259 Million from the personal accounts of Cecile Kotalawala, wife of Ceylinco Chairman Lalith Kotalawala, and to transfer it to the repayment scheme for Golden Key depositors of money below one million rupees within 3 months.
By: Reporter on October 13, 2009
at 9:51 pm
A suspect in the Golden Key credit card case, S. Karunaratna, was given bail today by the Mt. Lavina court bur ordered not to leave the country and also remain within the Western Province pending further inquiries. He was also ordered to appear before the CID every month. (AW)
By: Banga on October 21, 2009
at 6:41 pm
Bandula Ranaweera maha horek! Besides his involvement in the Golden Key scandal, the ‘hora’ apparently is complicit in selling sub-standard homes – weak foundations, cracking walls, dishonored contract terms – to the unsuspecting public through the millennium city project, a Ceylinco undertaking. Some of my dear and close friends have unwittingly invested their life savings in houses sold by this scoundrel and his band of thieves who have no sense of empathy or conscience.
Home owners who have tried seeking recourse through Lalith Kotewala for this unethical business conduct have been stonewalled by Ranaweera. I don’t purport to sympathize with Mr. Kotelawal here, but MY OPINION is, as in the above case, the Deputy Chairmen of Ceylinco companies tend to abuse Mr. Kotelawala’s trust. Ignorance may be bliss, Mr. Kotelawala, and your intentions good, but that will not do when you are the Chairman of a company and have a fiduciary duty.
“What goes around, comes around”
By: The All Seeing Eye on October 23, 2009
at 5:16 am
A Special Purpose Vehicle (SPV) is to be set up soon as the holding company of Ceylinco Consolidated, transferring shares and assets of Golden Key (GK), its subsidiaries and other companies of Ceylinco Consolidated, to make payments to disgruntled GK depositors, it was decided on Friday. This would however exclude Seylan Bank, Ceylinco Insurance and all regulated Ceylinco finance companies.
A 3-judge Supreme Court Bench made this directive considering submissions made by Attorney General Mohan Peiris when the fundamental rights case filed by some 29 GK depositors was taken up for hearing. Ceylinco Chairman Lalith Kotelawala has also given an undertaking to the court that he will transfer a sum of Rs.120 million to the dedicated fund set up at the Bank of Ceylon to immediately start the proposed re-payment scheme
By: reporter on October 23, 2009
at 11:31 pm
The Supreme Court on Friday granted bail – under tight conditions – to Ceylinco Consolidated Chairman Lalith Kotelawala in the Golden Key (GK) missappropriation and fraud case, clearing the way for him to be permitted bail in other cases, and leading to his ultimate release from the Welikada prison.
Kotelawala, facing an array of charges along with other directors in the group arising out of the GK case where Rs 26 billion is due to investors, has been in jail since February – after his credit company collapsed with desperate depositors clamouring for their money.
Another senior group director Padmini Karunanayake was also permitted bail in the GK case in the Supreme Court but, like Kotelawala, is in remand in other cases but she too is likely to get bail in these cases. “Kotelawala is in remand in connection with the Mount Lavinia Magistrate’s court case on the GK scam and in the Colombo Magistrate’s court case on Ceylinco Shriram. The highest court in the land has given him bail in the main case and I don’t think other courts will now object to bail,” one of his lawyers said.
Friday’s developments came after Kotelawala – who must be the Welikada prison’s most distinguished prisoner — agreed to the repayment plan to depositors or investors, worked out by a court-appointed committee. The 3-member Supreme Court bench was headed by Justice Shirani Thilakawardena. Stiff bail conditions were placed on Kotelawala
By: reporter on October 23, 2009
at 11:32 pm
This is a reasonable judgement
By: jay on October 23, 2009
at 11:34 pm
Its a good move but its a pitty that all the people has forgotton the good work done by you and all the assistance provided by you to srilankan community. While wishing you i hope you will come out with a proper repayment/payment programme for the depositors and its a must. Sir i hope you will identify the people at least now with these problems. All were around you for their personal benefit not because they loved you the people who loved you were not allowed to see you by this mafia.
By: dimuthu on October 23, 2009
at 11:39 pm
If he was released earlier I trust part of the depositors would have been settled by now.
By: dimuthu on October 23, 2009
at 11:40 pm
Colombo Chief Magistrate Nishantha Hapuarachi yesterday ordered the first suspect in the Finance & Guarantee Property Developers PLC criminal misappropriation case, Chairman Deshamanya Lalith Kotelawala, to be enlarged on a cash bail of Rs. 200,000 and a surety bail of Rs. 10 million with three sureties. His passport was impounded.
Kotelawala was ordered to report to the CID every Sunday. A further affidavit regarding the transfer of 1/6 of his assets to the proposed independent trust for repayment of depositor’s funds under the aegis of the Attorney General’s Department was to be submitted.
The Magistrate allowing an application by Deputy Solicitor General Yasantha Kodagoda, ordered that suspect Yasmin Illahamy Mohomed’s assets be seized and sold, after Court notices were posted on them.
The proceeds are to be credited to the proposed independent trust to be set up under the Attorney General with a view to repay the depositors.
Deputy Solicitor General (DSG) Yasantha Kodagoda did not object to bail granted to the first suspect under stringent and special bail conditions.
Before granting bail, the Magistrate queried from the first suspect whether he intended to repay the depositors’ funds. Kotelawala replied that repayment of the depositor’s money was his intention.
Counsels appearing for the first suspect were Rienzie Arsekularatne PC and Wasantha Batagoda.
The other five suspects of the F&G entity namely V. Jayasinghe, Sunil Jayatissa, Mohan Srinath Perera, Malani Sabaratnam and Shamani Perera were earlier released on bail.
The case will be taken up again on November 6.
The DSG in his submissions, alleged that the fifth suspect held a meeting with other suspects to transfer deposits from unauthorised F&G Property Developers and F&G Real Estate establishments to the registered Finance & Guarantee Company, in violation of bail conditions.
“I would have moved for the remand of the fifth suspect,” he submitted.
The rest of the suspect directors had objected to her conduct and complained to the Fort Magistrate.
The DSG moved that the fifth suspect undertakes to refrain from similar acts in the future, or else be re remanded.
The Counsel appearing for the defence, Nalinda Indatissa, gave an undertaking that bail conditions will be strictly observed hereinafter.
The DSG further submitted that the first suspect, by way of an affidavit, had submitted his consent to deposit 1/6 of his movable and immovable assets to the proposed independent trust. The DSG explained that the first suspect was facing litigation in respect of the Golden Key Credit scam and Ceylinco Shiram.
All other suspects have submitted affidavits to credit 1/3 of their immovable and movable assets to the proposed independent trust.
The Central Bank is drafting the proposed trusts. The CB has requested two weeks to finalise the task.
The DSG submitted that the Central Bank had submitted a proposal to resurrect both F&G Property Developers and F&G Real Estate entities.
Caldera, a depositor claimed that she had received a land from Aturugiriya as compensation which entailed a financial loss of about Rs. 3.5 million to her.
The Attorney-at-Law appearing for depositors submitted that he has to apprise the Supreme Court about the proceedings at the next date of hearing.(Island)
By: Reporter on October 23, 2009
at 11:43 pm
In a remarkable turn of events, the Fort Magistrate’s Court released Ceylinco Chairman Lalith Kotelawala on bail yesterday when the case involving the alleged defrauding of Rs. 3.9 billion by the F&G Real Estate Company was taken up, but Mr. Kotelawala will continue to remain in remand prison over other Ceylinco related cases.
Fort Magistrate Gihan Pilapitiya made the order granting bail considering the affidavit submitted by Mr. Kotelawala undertaking to remit 1/6 of his personal assets to the proposed repayment scheme aimed at settling the depositors of F&G Real Estate – a subsidiary of the Ceylinco group headed by Mr. Kotelawala.
Lalith Kotelawala gets bail
The first suspect Kotelawala was released on Rs.200,000 cash bail with two sureties of Rs.5 million each. The Magistrate ordered the suspect to surrender his passport to court and also to sign a bond. The Magistrate also said the conditions in the pledged affidavit would be additional bail conditions and the bail application should be certified by a tax payer.
Previously, the second to fifth suspects namely Mervin Jayasinghe, Mohan Perera, Chalaka Sanjeewa Perera, Ranga Asiri Nanayakkara and ninth suspect Sunil Jayatissa were enlarged on bail.
The Deputy Solicitor General moved court to obtain an oath from all suspects including the first suspect in open court confirming that the affidavits submitted by them pledging to grant their personal assets to the trust was done voluntarily and not as a consideration of being granted bail.
Making a pledge in open court, Ceylinco Chairman Kotelawala said he was submitting this affidavit with the intention of paying to depositors.
When DSG Kodagoda questioned as to the similarity of the affidavits filed by the other suspects in this case to that of Mr. Kotelawala, Counsel Rienzie Arsekularatne appearing on behalf of Mr. Kotelawala said the contents of the affidavits were more or less identical except for the component of payment undertaken by his client. He submitted that his client was providing 1/6 of his personal assets and whilst through the other affidavits already submitted to court the concerned suspects had undertaken to provide 1/3 of their assets.
Meanwhile, the Magistrate ordered that three suspects who were earlier released on bail, be remanded till October 12 upon consideration of a submission made by DSG Kodagoda.
DSG Kodagoda said these suspects were believed to be involved in a business interest by ignoring the proposed repayment scheme proposed by court. DSG Kodagoda charged that he had received reliable information from intelligence sources of the Attorney General’s Department on the concerned suspects’ direct involvement in two companies affiliated to a subsidiary of the Ceylinco group of companies, breaching the bail conditions. The Magistrate ordered prison authorities to remand the second, third and ninth suspects namely Mervin Jayasinghe, Mohan Perera and Sunil Jayatissa as they had violated bail conditions.
By: reporter on October 23, 2009
at 11:48 pm
The Supreme Court today granted a conditional bail for Lalith Kothalawela, the chairman of the troubled Ceylinco Group, accused of massive fraud at the collapsed Golden Key Credit Card Company, a Ceylinco Group company.
The Supreme Court bench comprising Justice Shirani Thilakawardana, S.I. Iman and P.A. Ratnayake released Kothalawela this afternoon with Rs. 10 million personal bail and Rs. 5 million money bond.
The SC further ordered Kothalawela not to leave the country and to hand over his passport to the Courts.
If the Ceylinco Group chairman wants to leave the Western Province, he should get the permission from Courts and five government tax payers must guarantee before he leaves the Province.
The Supreme Court stressed that Kothalawela will be remanded again if he breaks any of those conditions applied by the Courts.
The Court was informed that Lalith Kothalawela has transferred Rs 125 million to the special repayment scheme for the Golden Key depositors.
By: reporter on October 23, 2009
at 11:50 pm
Just like Lalith Kothelawela has been “acting sick” and attending Court Hearings being pushed around in a wheel chair, once given bail and released, we will surely hear that he needs immediate medical treatment in Singapore or other such country for some unknown and cooked up ailment.
Sri Lanka has adequate competent medical officers who successfully treat the ordinary man on the street when necessary & the legal authorities should be cautious about this highly innocent actor who wants public sympathy!
Relaxation of rules on this man, can end up in a disaster for the depositors they have defrauded!
By: Darmitha on October 25, 2009
at 4:43 pm
My Dear Lucas The comments you had made on my article on March 2, 2009 refers.
I am sorry, I could not respond earlier as I had been ill for sometime and I am still under treatment by a neurophysician. I am suffering from some sort of Vertigo. Anyway, I totally agree with your comments and I am glad to know that there are rational and good thinking people like you are in our beloved country.
Reiterating my deepest thanks and appreciation.
With kind regards
Zulkifli Nazim
By: Zulkifli Nazim on October 26, 2009
at 10:08 pm
Its good news that Mr.L.Kothalawala is released on bail.
He had been a top class businessman.But could always go wrong in some areas.
He now has the chance to prove himself again.
Good luck!
By: randolph perera on October 30, 2009
at 3:38 pm
So true!
Give him a chance to make it right..Don’t forget about all the lives he touched through out the years before the economy collapsed. You cannot have a future without a past..
By: yasodra malinga on October 31, 2009
at 4:38 am
“As is a tail, so is life;
It is not how long it is that matter, but how good it is”
- Seneca (4BC – AD65)
Be Good.
By: The All Seeing Eye on November 2, 2009
at 3:52 pm
“As is a tale, so is life;
It is not how long it is that matters, but how good it is”
- Seneca (4BC – AD65)
Be Good.
(apologies for the typo
)
By: The All Seeing Eye on November 2, 2009
at 4:02 pm
Ceylinco Kathankudy branch owes Rs128 mn to depositors
Thursday, 05 November 2009
“The Ceylinco Profit Sharing Investment Company’s Kaathankudy branch alone has 1727 customers and a total of over Rs. 73 million in fixed deposits and over Rs. 55 million has been deposited in savings accounts.” This was disclosed at a press conference held by disappointed depositors from Kattankudy by Quaazi Judge Mr. M.M.M. Mahroof Careem who is also a customer of Ceylinco Profit Sharing.
Mr. Mahroof Careem was speaking at a media conference organized by the Kaathankudy Mosques Federation recently on behalf of the customers who had deposited their money in Ceylinco Profit Sharing. The media conference was held in the Mosques Federation headquarters.
“The President who declared there is no minority in this country should find a solution for those people who have been affected by the Ceylinco Profit Sharing Investment Company.We are well aware that the majority community’s problem in the Golden Key scam has been resolved. Similarly, the minority who was defrauded by Ceylinco also needs to be shown compassion and their grievances also resolved by the President” added Mr. Mahrof Careem.
Speaking further Mr. Mahroof Careem added that public companies have placed their deposits in Ceylinco for a monthly income. Political leaders and Ministers are duty bound to work together and ensure the hard-earned money of the poor people are returned to them rightfully.
Kaathankudy Health Officer Mr. M.S.M. Jafeer, another customer of Ceylinco stated that they had taken this issue to Western Province Governor Alavi Moulana, Minister A.H.M. Fowzie, SLMC Leader Mr. Rauff Hakeem and many government officials. But no progress has been made in this regard.
“Two of the depositors who were swindled by Ceylinco have died and many have lost their health over this distress. So far the Central Bank has taken no proper action against this. The Central Bank should find a solution and come forward to help us.
“Depositors from Kalmunai, Akkaraipattu, Sammanthurai and Oddamavadi who are also in similar plight have joined hands with us in our struggle. In this, 2% of Tamil depositors’ money is also included in the Kaathankudy branch.”
“We have complained this matter to the CID and we will continue our struggle. We call upon the All Ceylon Jamiyyathul Ulama also to intervene and help us resolve this serious issue”, Mr. Jafeer concluded.
By: Banga on November 6, 2009
at 6:17 pm
Khavan was not bailed out. Pleas look at this link, this is how the US is handling their Lalith K…….
http://news.bbc.co.uk/2/hi/in_pictures/8360032.stm
By: Banga on November 14, 2009
at 2:44 pm
Central Bank finalizes repayment to small GK depositors
The Central Bank is now in the process of finalizing arrangements to begin the repayment, as soon as possible, of Golden Key (GK) Credit Card Company depositors with deposits of Rs. 1 million or less, a senior official of the Central Bank told the SundayTimes FT.
He noted that the Special Task Force on GK at the Central Bank will contact these depositors soon to begin the much awaited re-payment process in accordance with the Supreme Court directive.
The Task Force has finalized the verification of details provided by depositors with the information recovered from the Golden Key computer system, he said. He disclosed that there were around 3,800 depositors who have deposited Rs.1 million and less.
Under the repayment plan put forward by the 3-member Committee of Chartered Accountants the Central Bank will start settling 75% of the value of their deposits with a maximum ceiling of Rs 100,000, he said. However at the initial stage these depositors will be paid a maximum of Rs.100,000 and the balance within three months.
Those who have deposited Rs 100,000 rupees will receive Rs 75,000 rupees, he added. Depositors who have a deposit of between Rs.1 million and Rs.2.5 million will be considered for re-payment within six months after the completion of the first category in accordance with the repayment plan and this segment covers 2,505 depositors.
The others will be settled within a year. The task of paying back depositors has been entrusted to the GK Secretariat which operates in the Central Bank under the direction of Chief Operating Officer (COO), J. P. R. Karunaratne.
By: Banga on November 15, 2009
at 12:53 am
Those who have suffered due to the Golden Key scandal should not relax their vigilance even though promises have been made. It is only with continuous pressure and vigilance that the depositors will finally be able to come out winners!
By: Darmitha on November 15, 2009
at 6:35 am
More new of secret asset disposal contrary to court orders are being found!! Await>>
By: Banga on November 21, 2009
at 11:01 pm
Central Bank cannot make 75% repayment to Golden Key depositors due to insufficient funds– Senior official
BY SURESH PERERA
* No assets of Kotelawala and other directors sold so far
* Sicille’s super luxury Mercedes Benz sold
* Depositors to place information before Supreme Court
The quantum of cash credited to the special dedicated fund so far is sufficient to repay only 100,000 rupees of Golden Key depositors who had invested one million rupees, a senior Central Bank official said last week.
“We have to make do with what we have at this juncture as we don’t have the money to pay more”, he conceded. “That’s why we did a calculation and imposed a maximum ceiling of 100,000 rupees on payments”.
The Supreme Court has directed that 75% of deposits up to one million rupees be settled within a three-month timeframe under the first phase of the repayment plan.
“That’s right, but we have court sanction to accommodate payments on the basis of resources available”, the official explained.
Asked for a figure on the amount available for repayments in the special dedicated fund maintained by the Central Bank, he replied, “It’s more than 300 million rupees”.
“If more funds can be raised, we will be able to repay the full 75% under the first phase”, he noted. “We cannot do anything more sans liquid cash”.
Surely, the Central Bank can dispose of the assets and properties of Ceylinco Chairman Lalith Kotelawala and other directors and raise more money, says Ms. Dushyanthi Hapugoda, a petitioner in the Golden Key Fundamental Rights (FR) plea now being heard before the Supreme Court.
The Supreme Court has ordered the Central Bank to identify and sell these assets to raise the required funds to repay depositors, she said. “But, not a single asset, either moveable or immoveable, has been sold so far”.
The money in the special dedicated fund had come from the seizure of the bank accounts of Kotelawala and his wife Sicille, but apart from these take-overs, no other cash had been credited, she asserted.
When the Central Bank has clear orders from the Supreme Court, which had even set a timeframe for repayments to be completed, why is it complaining of lack of funds without selling identified assets, Ms. Hapugoda asked.
“We are moving in the matter, but there is a due process of the law to adhere to before selling these assets”, the Central Bank official countered. “It cannot be done just like that”.
Why cannot this so-called “due process of the law” be expedited even after directives from the Supreme Court?, Ms. Hapugoda asked. “The onus of raising funds has been placed on the Central Bank but is it happening?”
What about the moveable and immoveable assets of the other directors, including a Deputy Chairman who was drawing a monthly, all-inclusive salary of 6.5 million rupees?, she queried.
“How many months have elapsed, but nothing tangible has happened to grant relief to struggling depositors”, she said. “Almost a year has gone by since Golden Key crashed, but not a cent has been repaid so far”.
“We have to verify the deposits through an auditing process before repayments can begin”, the official pointed out. “We are in the process of finalizing matters”.
Asked when repayments with the “maximum ceiling of 100,000 rupees” could begin, he conceded that it could take more time as auditing is still incomplete.
He said there are discrepancies in certain Golden Key customer statements which need to be cleared before they can be repaid. “This is time consuming”.
Asked why the others cannot be repaid without allowing a few complicated cases to hold up the whole process, he said, “We have to stick to a schedule”.
The services of a few former Golden Key employees are being made use of to process the deposits in the presence of Central Bank and CID officers at the company’s Duplication Road office, The Sunday Island learns.
The processed accounts are then forwarded for auditing by a special team and listed for repayment, it is understood. The number of depositors who had invested between 1 million and 2.5 million rupees is 2,505.
The official assured that depositors would be informed in writing and the part payments made by cheque when the process is finalized.
Ms. Hapugoda said that she had informed the Central Bank about a super luxury Mercedes Benz car used by Mrs. Sicille Kotelawala, which is believed to have been sold for 42 million rupees to a businessman.
This latest model worth 78 million rupees had done only 4,130 kms at the time it changed hands, but nobody knows what happened to the money, she claimed. “It had been transferred on November 12, 2009″.
“Yes, this matter has been brought to our notice and we are looking into it”, the Central Bank official said. “We will be initiating action”.
This money should have come to the dedicated account to repay depositors, but at a time every cent counts, this is how assets are being disposed of, she said. “And, the Central Bank is complaining it has no funds”.
There are a lot of immoveable assets, including hundreds of vehicles held at a Colombo yard, but they have still not being sold to raise money to repay depositors, she said. “There are people interested in buying them”.
“We will be placing all these matters before the Supreme Court when the FR case comes up again”, she said. “This is unacceptable”.
She said that the Supreme Court had directed the Attorney General to dispose of assets amounting to 2.2 billion rupees as given in the report submitted by the Committee of Chartered Accountants.
A four-member delegation representing Golden Key depositors placed before the Committee fresh details of Lalith Kotelawala’s assets, worth more than four billion rupees, which had not been taken into account in the ongoing bid to raise funds to repay depositors.
The delegation comprising Ms. Dushyanthi Hapugoda, Kapila Jasinthuliyana, Ms. Kanthi Senaratne and Upali Perera accompanied by their lawyer Bandara Senarath, had an hour-long discussion with the Committee headed by Lakshman R. Watawala at the Central Bank, where the Golden Key Secretariat is based.
The Supreme Court has released Lalith Kotelawala and Deputy Chairperson Mrs. Padmini Karunanayake under stringent bail conditions. They have also been warned not to interfere or influence in any manner whatsoever with either the investigations, the prosecution or with the witnesses or tamper with any of the evidence in this case.
Any violation of the conditions will result in the immediate cancellation of bail and the re-remanding of the two suspects.
By: Banga on November 22, 2009
at 1:35 am
Anybody knows really what happened to GK. How many depositors knows what happen to Former Highway Minister J-Pulley’s (commission money)Rs. 600,000,000.- (Six hundred millions) in GK. Do you know who took those money after died J -Pulley? His wife try to take money from GK But Big Boss comes front & ordered to L.K., Immediately transfer those money to his personal account. It was happened last quarter of year 2008. After that only GK collapse begins.
By: Nobert on November 22, 2009
at 4:37 pm
According to sources Laith K is planing to do more charity work in the Prisons. He has money to spend and pay for this show, while no money to pay his depositors!!!
Central Bank has strongly objected to the Sunday Island Article which is highly critical of them.
They want the depositors to find assets and give. They say that what they have is mortgaged, vehicles have no CR books and although Supreme Courts have given Judgements they have to go to samller courts to get permission to auction any thing!!
By: Banga on November 26, 2009
at 7:27 pm
Said to be worth “billions” only on paper
Most assets in Kotelawala’s list already mortgaged to other financial institutions
– Senior official
BY SURESH PERERA
Several vehicles which belonged to Golden Key will go under the hammer within the next fortnight in the ongoing bid to raise more funds to repay struggling depositors of this troubled Ceylinco subsidiary, a senior authoritative official said.
A public notice on the sale, which will be handled by a reputed auctioneer, will be published in the newspapers this week, he said.
“This will be the first in a series of auctions to be conducted to dispose of the moveable assets of Golden Key, which crashed in December 2008 leaving thousands of distraught depositors in the lurch”, the official, who asked not to be named, said.
Some luxury vehicles used by directors of Golden Key will initially go under the hammer at the auction to be held at a location in Bambalapitiya, he noted. “We have already finalized arrangements”.
“The biggest hurdle we faced was that these vehicles did not have the required documentation including revenue licenses and insurance”, the official pointed out. “We had to sort out these issues before auctioning them”.
The audit report of deposits up to one million rupees for repayment, with a maximum ceiling of 100,000 rupees, is expected to be ready by December 4, 2009.
“We will then be able to start paying back investors”, he explained. “But, we cannot settle the full 75% under this category due to insufficient funds”.
Apart from the bank accounts of Ceylinco Chairman Lalith Kotelawala and his wife Sicille seized on a Supreme Court directive, no other funds are available as the assets have so far not been sold, he pointed out.
“We are also eager to settle the total 75%, as directed by the Supreme Court within three months under the first phase, but there is no cash”, he said.
He said that people are unaware that most assets in the list submitted by Kotelawala cannot be sold to raise liquid cash because they have already been mortgaged to other financial institutions.
“We are trying to find assets and properties which do not have mortgages on them”, the official noted. “It’s a difficult task”.
The Golden Key head office at Duplication Road had been mortgaged to Seylan Bank and the property at Kirimandala Mawatha had also been mortgaged to another bank, he said, naming these two key assets as examples.
“The bank wanted to take over the Duplication Road building, but we managed to put it on hold, restore electricity by settling the outstanding 1.5 million rupees and get the computer system working again”, the official said. “It was a virtual battle to place the process back on track”.
“People ask us about the Golden Key ENT Hospital and why it cannot be sold when there are prospective buyers”, he elaborated. “Do you know that this hospital functions under the Ceylinco Insurance Trust Fund?”
On paper, there are assets said to be worth “billions”, but a closer examination reveals that they had already been mortgaged”, he noted. “After the mortgages are settled, there could hardly be anything left to repay Golden Key depositors”.
He said that under these difficult circumstances, it’s not fair to accuse the Committee of Chartered Accountants appointed to settle depositors of “dragging their feet”. “We are doing our utmost”.
Meanwhile, at a discussion the Committee of Chartered Accountants had with Ms. Dushyanthi Hapugoda, a petitioner in the Golden Key Fundamental Rights (FR) plea on Wednesday, last week’s The Sunday Island news report headlined, “Central Bank cannot make 75% repayment to Golden Key depositors due to insufficient funds”, figured prominently.
Amongst the issues discussed was the selling of the super luxury Mercedes Benz car used by Mrs. Sicille Kotelawala for 42 million rupees to a businessman, as reported in the news story.
“We want to find out what happened to the money as it should have come to the special dedicated fund to repay Golden Key depositors”, the official said. This latest model vehicle had been sold on November 12, 2009.
“During the two-and-a-half-hour meeting, we did take up a wide range of pertinent issues and looked at ways of raising more funds to settle depositors expeditiously”, Ms. Hapugoda said. “Whatever the reasons, the fact remains that depositors have still not been granted any relief”.
“We also discussed details submitted by us on Kotelawala’s assets, worth more than four billion rupees, which had not been taken into account in settling depositors so far”, she said.
The question of auctioning the personal assets of the directors of Golden Key and other associate companies, including those of Sicille Kotelawala and Deputy Chairman/CEO Kavan Perera in terms of the law was also taken up, but the Committee was of the view that a fresh court order may have to be obtained, she explained.
It was pointed out that the Supreme Court had already directed that a judicial order from the district court be obtained to sell identified assets and properties which included those of directors as well, Ms. Hapugoda noted.
She recalled that in May 2009, former Chief Justice Sarath N. Silva had observed that even Kotelawala’s house can be auctioned. He wanted not only the deposits settled, but also a part of the interest due paid as a measure to grant some relief.
She said that details of how one Golden Key director had transferred six houses in Colombo, including one valued at 82.8 million to her kith and kin, were also placed before the Committee. The transfer had been done on December 18, 2008 – the day Golden Key collapsed.
Another director ostensibly “overseeing operations in Australia”, owes Golden Key 144 million rupees in credit card dues. She is now on remand with some other directors in connection with this scam, Ms. Hapugoda said. “This money will also have to be recovered”.
Central Bank Governor Ajith Nivard Cabraal had also asked officials handling the repayment process to ensure that relief is granted to suffering depositors as early as possible, she said.
On depositors whose credit card statements are not in order, a request was made to the Committee to start repayments without allowing a few complicated cases to hold up the whole process, she said.
The question of asking depositors who, for example, had 10 million rupees in capital held up without any interest for the past one year, to pay 10,000 rupees due to Golden Key, was also discussed, she said.
This is grossly unfair as depositors are struggling to eke out a living with their life’s savings denied, she pointed out. “How can they raise money when they cannot even afford to buy their basic essentials?”
“Their dues can be deducted at the time repayments are made”.
Kotelawala and Deputy Chairperson Mrs. Padmini Karunanayake, who have been released on bail under strict conditions, have been directed by the Supreme Court to cooperate with any notice issued by the CID, the Committee of Chartered Accountants and/or the Monetary Board.
They were also ordered to make a declaration to court by way of an affidavit of their assets in Sri Lanka or overseas.
By: Banga on November 29, 2009
at 1:34 am
It is really saddening when one reads the plight of the depositors. I am one of those who lost money with Bank of Credit and Commerce when it collapsed due to money laundering sometime in 1990 when I was an expatriate. Not a big amount. However, 19 years later I have received around 85% to date from the liquidators in UK in the form of dividends in small amounts. Even that was possible because the Abudhabi Government stepped in at that time. So you can just imagine how long drawn this is going to be. That is a fact.
It is not good enough for the Central Bank or the Committee of Chartered Accountants to say, sorry most of the Assets are mortgaged to financial institutions so that the unsecured creditors are left in the lurch.
They must examine the origin of the funding, on what financial premise it was funded and check with the files of these institutions as to whether the borrower had in fact (a) Submitted Audited financial statements regularly (b) Had paid the monthly interest on borrowings without default and if it was defaulted, for how long and if it was found that these institutions kept on funding the Group knowing fully well as to how shaky they were but disregarding these facts obtained more and more mortgages against the group assets, the Supreme Court should penalize them for contributing towards their collapse and make such institutions also unsecured creditors.
Hope you guys luck.
Concerned Citizen
By: Ajantha on December 8, 2009
at 2:44 pm
A Special notice to the depositors of the Golden Key Credit Card Company Limited issued by the Committee of Charted Accountants appointed by the Supreme Court is now published under the above article.
By: Depositor on December 6, 2009
at 12:57 pm
Where??
By: Banga on December 6, 2009
at 6:15 pm
First go to the article written by Darmitha – Kotte. This notice is attached at the end of that article.
By: Depositor on December 6, 2009
at 8:43 pm
Victims of fraudulent financial companies in Sri Lanka meet President
Sat, Dec 12, 2009, 10:15 pm SL Time, ColomboPage News Desk, Sri Lanka.
Dec 12, Colombo: Depositors of Ceylinco Group’s Golden Key Credit Card Company and victims of Sakvithi Investments and other fraudulent and collapsed financial institutes in Sri Lanka met with President Mahinda Rajapaksa at the Temple Trees today to discuss their grievances and measures to recover their losses.
Secretary to the President Lalith Weerathunge, Attorney General Mohan Peiris, Secretary of Finance Ministry Dr. P.B. Jayasundara, Central Bank Governor Ajith Nivard Cabraal and Additional Secretary to the President Gamini Senarath also participated in the discussions.
By: Banga on December 12, 2009
at 11:32 pm
Poor Victims,,
its some relief the state trying to get involved in someway and hope the intentions are sincere as the elecvtions are arond the corner.
ALSO CONCERNED DEPOSITORS, you may check with relevant authorities about the assets OF GK and there are plently if they really want to look into.
Eg: it is known there are number of hydro power projects/sites under the names of GK or Directors/ relatives of them aquired throgh GK funds.
pl check with authorities they have at least any clue about it.
Jay
By: jay on December 14, 2009
at 11:41 am
Dear Jay,
Fully agree with you. By selling properties of Mr. Sarada Sumanasekara, few billions rupees can be recovered.. yes, some of the golden key projects are in his name…Sarada being Group Finance Director of Golden Key heavily invested in various projects (some of them in his own name) with investor fund. It is highly questionable, one of his close friend from Battarmulla purchased a coconut estate/farm worth several million rupee. This person worked under him as accountant in Golden Key prior to his promotion as Chief Executive Director of one of Golden Key Group of company.
Ajith
By: Ajith Gunawardena on January 3, 2010
at 12:59 pm
Why nobody talk of the assests of Mr.Khavan Perera, Mrs. Nadnani and Mr. Sarada Sumanasekara. These 3 are major architects of Golden Key collapse. Even Mrs. Hapugoda is well aware that on inspection, it was found that Khavan Perera had gold worth several millions rupees in his office locker and Mrs. Nandani owe 140 million rupee to Golden Key. Mr. Sarada Sumanasekara is running a collage and have 8 apartments in Colombo city and 3 in Battaramulla. It is also expected that he heavily invested in Real Estate Business in Italy where his sister lives. It is shame on the part of government even after one year these people are just behind bar but their looted wealth is keep on apreciating.
By: Ajith Gunawardena on January 3, 2010
at 12:53 pm
Its good the Legal Proceeding are processing for Golden Key . I request the forum to have views on a separate web to have views and commence on Sakvithi Fraud too its we feel reasonable where no legal process or whereabouts are unknown for the depositors. This is Sri Lanka? Be reasonable.
By: Puran Appu on January 5, 2010
at 1:01 am
4 YEARS RECORD OF THE SENSITIVE LEADER
WITH 40 YEARS OF EXPERIENCE
• Hedging Deal – Petroleum Chairman – Asantha De Mel – Exam passed ‐ None– Cricketer‐ Shiranthi’s relation – losses to Sri Lanka Rs. 230 Billion ( Rs. 230,000 Million) Chairman lost his job by virtue of a supreme Court order. The S.C. order to sell petrol at Rs.100 not complied yet (current price of a Petrol liter is Rs 130/‐).
• Loss on National Carrier Air Lanka for 2007‐2008Rs. 10,000 Million (10 Billion) – Chairman Nishantha Wicremasinghe (Shiranth Rajapaksha’s Brother) – Exam Passed GCE O/L
• Loss on Mihin Air for 2007‐2008 Rs. 4,000 Million (4 Billion) – Chief Executive Mahinda’s Sajin Vas Gunawardena – Exam passed GCE O/L
• New 2008 Budget allocation for Mihin Air Rs. 1,000 Million (1 Billion)
• Air port project Weerawila cancelled. Initial cost on feasibility study Rs 500 Million.
• Mig Deal – through “King’s cousin” Udayanga Weeratunga (Exam passed – GCE O/L Sri Lankan Ambassador – Russia ‐ purchase of 4 Mig fighters which were not air worthy from Belimissa holdings at a price Rs. 400 Million more than the last published price.
• All defense purchases through Lanka Logistics ‐ Chief Executive Officer Jayantha Wicremasinghe – Exam passed GCE O/L– Mahinda’s Sister Gandhini’s Brother in Law the owner of ‘Akuressa Palace’ (also Chairman Bank of Ceylon Gamini Wicremasinghe’s Brother.)
• VAT Scam – Loss to the Country Rs. 35,000 Million. (Rs. 35 Billion) Inland Revenue Department – Minister of Finance – Mahinda Rajapaksha
• Hanbantota Man made Safari Park to be created at a cost of Rs. 16,000 Million (1.6 Billion) This makes no sense as the Natural Safari Park is next door in Yala.
• Kerawalapitiya power plant cost US $ 400 Million. Actual cost US $ 200 Million. Planned for 300 Mega Watts built for 200 mega watts.
• Kerawalapitiya power plant. (Additional Losses) Cost per day to CEB Rs 70 million. Per year Rs 25, 550 Million (25.5 Billion) Initial agreed purchasing price per unit Rs 18. Current purchasing price Rs 40/‐ Loss to the CEB from a unit Rs 22/‐
• Uma Oya Project.‐ projected value US$ 265 Million enhanced value US $ 545 Million. Increase of US$ 280 Million. Rs. 28 Billion ( Rs. 28,000 Million). Two reservoirs that are built have an extent of only 50 acres. Victoria project has an extent of 7,500 acres. Minister–Chamal Rajapaksha – President’s brother
• Cabinet of Ministers have approved purchase of 35 Gantry Cranes at a price US $ 600,000 higher than the last purchase price. This purchase has not been effected yet. (Minister in Charge; Chamal Rajapaksa‐ President’s brother)
• Contract signed with Dilhan Wicremasinghe Shiranthi’s brother’s son (Chairman Air Lanka) to supply branded computers to all divisional Secretariats at a cost of US $ 16 Million (price per computer Rs. 150,000/=). He supplied all unbranded computers which are available at unity plaza at Rs. 50,000/=. Amount robbed Rs. 1,200 Million
ROBBED AND WASTED AMOUNT
SUMMARY
• Hedging deal
Robbed and wasted amount Rs. 230,000 M 230 B
• Air Lanka
Wasted and robbed amount Rs. 10,000 M 10 B
• Mihin Air
Wasted and robbed amount Rs. 5,000 M 5 B
• Mig Deal
Robbed amount Rs 4,00M 0.4 B
• Weerawila Air Port
Wasted amount Rs 500M 0.5 B
• VAT Scam
Robbed amount Rs. 35,000 M 35 B
• Safari Park
Wasted amount Rs. 16,000 M 16 B
• Kerawalapitiya
Robbed amount Rs. 23,000 M 23 B
• Uma Oya project
Robbed amount Rs. 28,000 M 28 B
• Computers for divisional
Robbed amount Rs. 1,200 M 1.2 B
• Purchase of Gantry
Cranes total amount robbed Rs. 24,150 M 24 B
• Fly Over contracts
Total amount robbed Rs. 3,500 M 3.5 B
• Kerawalapitiya (Additional Losses)
Robbed amount Rs 25,550M 25.5B
• Road Development in
North amount robbed Rs. 28,000 M 28 B
Rs. 430,300 M 430.3 B
Remember that Gigantic Mahaweli Project with the construction of Victoria,Kothmale, Randenigala, Rantambe, and Maduru oya cost the Nation only Rs. 50,000 Million
(50 Billion) when the US $ was equivalent to Rs. 35.
WHAT CAN WE DO WITH THIS MONEY?
To increase the monthly salary of all the government servants
for one year Rs. 126 Billion.
To pay the deposits of Golden Key depositors‐ Rs. 26 Billion.
To pay the money of depositors of Sakvithi scam‐ Rs. 4 Billion.
To pay the money of depositors of the other financial institutions Rs 10 Billion.
To double the pension of the pensioners Rs. 3 Billion.
To pay increased interests for government servants who
have deposited their terminal benefits and are dependent on the interest‐ Rs. 10 Billion
To reduce Milk powder price for 1 year by 50% ‐ Rs. 10 Billion
To re‐introduce the school uniform to all children – Rs. 5 Billion.
To give electricity free to all places of worship‐ Rs. 1 Billion
To give a living allowance to all 100,000 who have lost jobs in the
garment industry, and to all 500,000 who are expecting jobs, Rs. 36 Billion.
The number of Samurdhi grantees are 1427,322. To give Rs.2000 to
each family per month, the cost is Rs.2850 million.
The cost for one year is Rs. 34.2 Billion.
To give fertilizers to all farmers on a subsidiary rate Rs 10 Billion
To give fertilizers to all small tea cultivators on a subsidiary rate Rs 2 Billion
TOTAL AMOUNT Rs 290.2 Billion
Balance Amount Rs 140.1 Billion
By: biswajith on January 15, 2010
at 4:30 am
BRILLIANT!
F OFF TO MR AND COMPANY
By: yasodra malinga on January 20, 2010
at 1:10 am
If you really want to get your money back in future, Vote for SF on 26th Jan. If ‘King’ comes again you will never get any cents. All those promises (King had given) are election gimmicks. Use your Brain & Vote for Success.
By: Norbert on January 19, 2010
at 5:17 pm
Yasodra Malinga has gone totally haywire and out of track with the main theme of the article on Golden Key Credit Card Scam and turned this into a political vandetta against the government in power!
If you cannot contribute to the article in concern, please refrain from writing because you only confuse the readers. Please write a separate article to the website with your political views.
By: Darmitha on January 24, 2010
at 8:17 am
The same request made to Yasodra Malinga is made to Norbert also- please don’t confuse issues but keep to the context of the original article!
By: Darmitha on January 24, 2010
at 8:19 am
Ps stop requesting this and that Darmitha..We all can read and write..
Is it too hard to respect different views..?? MR and the clan does not want any person to have any monies in Srilanka..Look how they want to bring Harry J. down? Only they should have the wealth ..over night..Not working for it. Lalith K’s case would have been better solved if the gov acted differently.
By: yasodra malinga on January 25, 2010
at 11:07 pm
This article is dealing with only the Ceylinco Credit Card Scam issue and not about national politics.
Therefore, it is not asking too much for readers to keep their comments focussed on the main topic without deviating.
If readers wish to discuss other topics like politics, why not write a separate article and open it for discussions?
Mixing up issues does not help Yasodra Malinga!
By: Darmitha on January 29, 2010
at 8:47 pm
Objection filed by suspects overruled
The preliminary objections filed by the suspects against 14 complaints made by the customers of the Golden Key Credit Card Company were overruled and the complaints were taken up for hearing by Mount Lavinia Chief Magistrate Harsha Sethunga on Thursday (21).
In this case Lalith Kotelawala, Kavan Perera, Sarada Sumanasekara, Suramya Karunaratne, Niranjan Perera, Daniel Jeganathan, Padmani Karunanayake, Sicille Kotelawala, and Nandani Kumari are respondents on the alleged misappropriation of deposits amounting to Rs.26 billion. They were in remand custody earlier and released on bail by the Supreme Court and the High Court later.
The complainants are Kenneth Perera, Shiromi Kumari Karunaratne, Navindra Karunaratne, Musthapa Ahmed, Edirimuni Champa de Silva, Padmasiri Dayananda, Nilangani Herath, Lakmini Herath, H. R. Wijeratne, D.L.D. Grace, John Bosco, P. Malkanthi , Surangani Pradeepa and Anura Gunawardene. They had lodged the complaints with the CID.
The case will be taken up for hearing on April 4, May 20, and June 10, 2010.
By: Reporter on January 30, 2010
at 6:24 pm
What’s going on now? When we will get our money? What Central Bank is doing? Kothalawala & other Bastards are free now (free to do anything). They enjoying their life with our money. We are suffering. Central Bank keep silence.
By: Norbert on February 22, 2010
at 1:11 pm
DO NOT FEAR . ANUSHA EMMERT , GK DEPOSITORS PRESIDENT WILL DELIVER.
FROM 03RD MARCH 2010 A FAST UNTO DEATH WILL COMMENCE AND THINGS ARE MOVING FAST IN THE CORRECT DIRECTION.BE PATIENT.
SUBA ANAGATHAYAK !!!
By: Dutugemunu on February 27, 2010
at 5:23 pm
SUBA ANAGATHAYAK !!! to Mahinda & Comapany
By: Norbert on March 1, 2010
at 12:04 pm
Central Bank doing nothing to find a solution. I think they wait until everone commits suicide( of course the desperate and helpless section ) and the will bury the case .
JAY
By: jay on March 2, 2010
at 12:27 pm
Anusha Emmert pick a fight with Dushsanthi Hapugoda and leaves Central Bank meeting in a Huff !!! Depositors left high and dry bcos of personality clasehes of these SLUTS !!!
By: Dutugemunu on March 4, 2010
at 4:30 pm
may b this is not true,bcoz dushanthi not a like anusha emmert n she is not fighter, anusha had big argument with ajith nivad cabral n mr.cabral scolded to anusha n he said go out from his room dat is the true becz we know the correct situation in this mattter ms.emmerts wants to get depositers money n only she wants to do collect the money from desparate depositters for her benifit. nw we cant fight with central bank, ag department n president we have to be patien n work with them so dushanthi can do that way nicely the thin is with this problem our depositers going to too desparate .pls stop this fight n let them to work ms anusha,
By: gayani on March 5, 2010
at 1:53 pm
Very true, Anusha was chased off by Mr Cabral for misbehaving!! Dushani did not exchange a word with her!
Why did Anusha protest in front of Lake House?? Did they take our money? Why did she ask to Vote for SF? Are we a political Org? Now can we get our money back by attaking the very people who can help us? Wake up pleae!!
By: KINGSHARJAH on March 5, 2010
at 7:13 pm
Depositors appeal for GK Hospital shares
Golden Key Depositors Association is to appeal Sri Lanka’s banking watchdog- Central Bank of Sri Lanka (CBSL) to request that shares of the Golden Key ENT Hospital, Rajagiriya, be placed in lieu of their deposits.
The Association has called a meeting of its members on March 9 (Saturday) at 2.30 p.m. at the Shalika Ground, Narahenpita to get the sanction of its membership for the request.
“We request all depositors to attend this meeting as its imperative that we get shares of the hospital at least as a part solution to our grievances. More than one year has passed since Golden Key collapsed, but we are yet to receive any substantial repayment,” Vice President of GK Depositors Association, Dushanthi Hapugoda told The Bottom Line.
Although the hospital was valued at over Rs.2bn, it was to be sold for less than Rs.500mn by the board. The association is hopeful that it will be able to get shares in lieu of deposits, and later on go for a listing on the Colombo Bourse.
President of GK Depositors Association, Upali Perera, Vice President, Dushanthi Hapugoda, President of Kandy Branch Roshan Abeysinghe and the main petitioner of GK court case, Roshan Fernando, at a meeting with CBSL Governor Ajith N. Cabral and other directors held last Wednesday, had made this request to the authorities. Prof. Lakshman Watawala, and Mahendra Panditha, who were appointed by the Supreme Court to probe GK’s businesses and assets to formulate a repayment scheme, were also in attendance.
Commenting on the Re-Payment Plan, Cabral had stated that all necessary steps have been taken by the Central Bank and a new committee has also been formed at the Central Bank to attend to all pertaining matters.
It transpired that the delay in the re payment was that the Chairman of Golden Key Credit Card Company Limited, Deshamanya Lalith Kotalawala and other directors have not yet declared clear assets.
With the Central Bank’s initiative, Hapugoda said that nearly Rs.600 million has been paid to 6,250 depositors whose deposits were below Rs.5 mn at Rs.100,000/- each and the bank was making necessary steps to pay 1,261 depositors (who had deposited over Rs.5 mn) Rs. 100,000/- with funds currently available.
Cabraal had appealed to all depositors to be patient and not to act hastily in any circumstances and to co-operate with the Central Bank. Depositors had expressed their utter displeasure about the apathy shown by Kotalawala and the directors in trying to resolve the matter.
The company collapsed with debts of Rs.26 bn of which Rs.12.7 bn is capital and another Rs.13.2 bn in interest while 55 of its group firms, including nine foreign based companies owe Rs.5.9 bn to the parent company. However, 24 subsidiaries and sixty four directors had not submitted asset declarations to the Supreme Court appointed committee by June 10, 2009. (SF)
By: KINGSHARJAH on March 10, 2010
at 3:24 pm
Governor is nicely manupilating the two ladies and setting one against the other !! He may be paid by Kotelawala to do this .
Governor is the guy of that ” Gold Quest ” fame . cannot trust this donkey at all !!!
Our two ladies understanding this and closing ranks willl be Good for all GK Depositors
By: Sinhaya on March 14, 2010
at 5:54 pm
Of course you are correct. Once he was bribed by Kothalawala to stop publishing GK as an illegal finance company in public. If it was happened we will never deposit our money in GK. So this Bloody Kabral basxxxx must responsible for everything. We must united together & fight against kabara.
By: Norbert on March 18, 2010
at 10:46 pm
Now this is not a Priority or major issue in Sri Lanka. Many other stories has overtaken. Relax will wait for the court final verdict.
By: Puran Appu on March 21, 2010
at 12:19 am
Important thing for all depositors and victims of this scam, is to be on full alert all the time to check whether any manipulation is being done to hoodwink the victims by promising various solutions which will not truly help the depositors but mark time for Kotelawela to continue his agendas through lawyers, shareholders or the Central Bank.
No matter what it takes, justice must be brought upon on all crooks involved in this case.
By: Samanmalie on March 21, 2010
at 8:38 am
Dushanthi Hapugoda initially blackmailed lalith Kotelawala and obtained a refund of Rs. 17 lakhs of her deposits at GK from the sarana fund at the begining of GK collapse.
Upali Perera is a former building contractor of Ceylinco and is in the pocket of Kotelawla !!
By: Sinhaya on March 21, 2010
at 5:11 pm
Sinhaya, why bring dirty politics of the two ladies into this? they both together shook Ceylinco, do not add fuel to fire and pit one against the other, do u have proof? we were all LK contactors in some way or another to be victims, now we all hate the bastard!
By: KINGSHARJAH on March 22, 2010
at 12:56 am
sinhaya, we are not believe these things about dushanthi, because now we have understood who are the people ar doing correct way,dushanthis not like dat, if she is got this money back she never going to publish those articles agains mr kotalawala n central bank, first of all please go and read dat paper article insunday island, and other papers, if u have any misunderstand with this lady u go home and fly a kits,
By: Dr.premaratne on March 22, 2010
at 4:07 pm
oh no not at all, we all trust this dushanthis committee, and see this blady anusha wearing her cloths, and the way she is behave with others, she cant do any thing with out collect the money from us, because this is her job,dr.premaratne is correct.because if dushanthi blackmailed lalith and refund her money for wot reason she is doing all these cases behalf of us. for further information please read RAWAYA sinhala paper 20-03-2010.
By: shanthi on March 22, 2010
at 4:17 pm
She is publishing the articles to frighten Kotalawela and get the balance money . She also stole the money of GK depositors association amounting to Rs. 66,000/- according to Anusha Emmert which was announced publicly at Jayasinghe Hall in front of nearly 800 depositors . If its not true why is Dushanthi not taking Anusha to court !!!
By: Sinhaya on March 22, 2010
at 4:53 pm
can any one publish the news paper articles here pls, out of sl
By: biswajith on March 23, 2010
at 1:05 am
this is the big jork because den y anusha not taking any court action against the dushani ,because she cant prove it,dats y anusha dosent want sort out this problem because den she cant collect our money that is the true story,if she is telling those shit y she not prove it she can tell any thing she want bt we are not belive it because now we are know who is anusha emmert he he he,if dushanthi get her money definetly anusha also get her money, because me ganu dennama ekatamai wada kare ,okkoma hora danne e dennamai, bt dushanthi have a good educational background and good behevier more dan anusha, she can do some thin behalf of us more dan anusha even she get this money.
By: shanthi on March 23, 2010
at 12:14 pm
this is the big jork because den y anusha not taking any court action against the dushanthi,because she cant prove it,dats y anusha dosent want sort out this problem because den she cant collect our money that is the true story,if she is telling those shit y she not prove it she can tell any thing she want bt we are not belive it because now we are know who is anusha emmert he he he,if dushanthi get her money definetly anusha also get her money, because me ganu dennama ekatamai wada kare ,okkoma hora danne e dennamai, bt dushanthi have a good educational background and good behevier more dan anusha, she can do some thin behalf of us more dan anusha even she get this money.
By: shanthi on March 23, 2010
at 12:15 pm
Anusha Emmert is already taking action to take her to courts as will be seen in next few weeks.
She has no following as seen by the meeting held by her outside the Shalika Hall last week where only 13 people attended and a couple of thugs and a provincial councillor of the Government.
She has not even paid the Shalika Hall but held the meeting outside Shalika and was chased of by Shalika Hall Management !!
By: Dutugemunu on March 26, 2010
at 9:27 am
Anusha Emmert has got the assistance of Hon. Mervyn Silva and Basil Rajapaksa to refund the monies of GK depositors.
A meeting will be held on 04 April 2010 , 9am at Bulugaha Junction , Keleniya Pradeshiya Saba Grounds .
Mandatory for all Anusha Emmert GK Depositors Association members numbering nearly 3400 to attend this meeting !!!
By: Sinhaya on April 2, 2010
at 12:27 pm
What happened at the meeting? Did Basil asked 10% to proceed? Maybe Most Hon.Dr.Mervin may asked Anusha to …………….proceed further. What a joke, ha ha ha ….
By: Norbert on April 7, 2010
at 10:02 pm
Now Anusha has made Mahinda R V angry, when she told people not to vote for him. Now MR has won and we are all helpless thanks to that foolish womans wisdom. Who can help us now? LK is living peacefully and happily, the Ceylinco Insurance and CISCO team is spending for him. They are going to seek court permision to take him abroad for medical treatment. Thank you Anusha for what you did! We know that you only want to launch your political program by using this Golden Key issue thats why you got MR angry with us.
By: kingsharjahna on April 15, 2010
at 8:49 pm
By Susitha R. Fernando
The Supreme Court ordered some Ceylinco group of companies to immediately repay their depositors yesterday.
Supreme Court bench of Shirani Tilakawardena, S. I. Imam and K. Sripavan directed to immediately start the first stage of the repayment-up to Rs. 100,000 by paying those deposits below Rs. 500,000 first, and the others within three months.
The court directed the repayment following a report prepared by a committee of court appointed Chartered Accountants, known as the Watawala Committee.
The companies that were ordered to repay were: Ceylinco Capital Investment Private Limited, CLT Asset Management Private Limited, Ceylinco Sriram Capital Management Private Limited and Ceylinco Leasing Corporation Limited.
The Court also ordered to pay the back-wages of employees up to December 2009 and also make arrangements to pay the present employees. In addition the bench ordered to settle other expenses such as liability bills and auditor’s fees up to a maximum of Rs. 8 million.
The funds to settle the deposits were to be made by selling immediate releasable assets of the group.
The court directed to call for advertisements for the quotation for the sale of Trillium Residencies, Celestial Towers and the Pioneer Tower in Fort, the head office of Ceylinco Group.
While allowing the arrangement for the sale of said assets, the Judges strictly warned not to sell other assets without the permission of the Court.
Justice Ms. Tilakawardne warned that severe repercussions had to be faced if such attempts were made.
The Supreme Court made this directives following a two fundamental rights applications filed by eleven depositors citing 24 respondents including Minister of Finance, Mahinda Rajapaksa, Secretary of Finance Ministry, Sectretary to the Treasury, Ceylinco Sriram Capital Management, Ceylinco Capital Investment, Ceylinco Chairman, Lalith Kotelawala and the members of the director board.
They had challenged the misappropriation of depositors’ funds which amounted to Rs. 7.2 billion. The case were filed on behalf of 8073 depositors who had registered with the Central Bank and the Central Bank was ordered to give all assistance required for the repayment scheme.
Following the two applications the Supreme Court appointed a committee of Charted Accountants headed by Professor Laksman Watawala to prepare a repayment scheme. The scheme had presented to the court by State Counsel Shaminda Wickrema who appeared on behalf of the Attorney General and some of the state respondents.
The Supreme Court directed that the all payments should be checked and verified by the Auditor General. The court also directed to take steps to pay those depositors who had not registered with the Central Bank but would register within a reasonable period.
All the charges would be issued to a dedicated back account in the name of Ceylinco Sriram Capital Managemente Service Comapany Private Limited.
A further order was made to conduct a full audit with regard to the years 2007/2008 and 2008/2009.
The Supreme Court commended effort by the Attorney General together with his junior counsel and Watawala Committee which prepared the scheme.
The case was further put off for July 15.
State Counsel Shaminda Wickrema appeared for the Attorney General. Counsel Seetha Wijewardena, A. P. Niles and S. Hettiarachchi appeared for the petitioners. C. R. de Silva with Suren de Silva and Kuwea de Soyza appeared for the Ceylinco directors.
By: king on May 8, 2010
at 11:05 am
Kotelawela up for re-election to Ceylinco Insurance board
Desamanya Lalith Kotelawala is up for re-election as a director at the annual general meeting of Ceylinco Insurance PLC on May 26 by a special resolution under the Company’s Act permitting the election of directors over 70-years of age.
The Companies Act No.7 of 2007 permits the election of directors over 70-years by special resolution and such a resolution is before the forthcoming Ceylinco Insurance AGM. Kotelawela was 71-year old last October.
Kotelawela has retired from the boards of several companies of the Ceylinco-Seylan Group since the Golden Key collapse rocked the group but analysts say that he appears to wish to remain on the board of the flagship insurance company, a market leader in the industry.
The latest annual report of Ceylinco Insurance, the strongest among group companies and profitable, has no chairman’s review as is traditional.
But there are reviews by the two Joint Deputy Chairmen, Messrs. A.R. Gunawardena and T. Renganathan who head the company’s General and Life divisions, a practice followed in previous years where both the chairman and the deputy chairmen published reviews.
Among the business to be considered at the AGM is a declaration of a dividend of Rs.5 per share for the year ended December 31, 2009, up from Rs.2 per share paid the previous year.
Three other directors, Messrs Jagath Alwis, P.A. Jayawardena and D.W.P. Upali retiring by rotation under articles of the company are up for re-election at the AGM. Mr. Herschel Gunawardena, appointed to the board in May 2009, is also up for re-election.
Notice has also been given that Mr. Godwin Perera is elected a new director of the company with special notice of a resolution for this purpose being given as he too is over 70 years of age.
No chairman’s address is listed in the notice of the forthcoming AGM which will be addressed by the Joint Deputy Chairmen after the notice conveying the meeting is read.
According to the annual report although the company’s gross written premium for 2009 was down 15.05% to Rs.16.6 billion, its profit after-tax for the year was up 15.77% to Rs.653.7 million.
Shareholders’ funds at the end of 2009 topped Rs.6.9 billion and the Life Insurance Fund Rs.26.4 billion. Non-Life insurance provision stood at nearly Rs.5.5 billion and investments at over Rs.27.3 billion.
Ceylinco Insurance has total assets of nearly Rs.42 billion and market capitalization of nearly Rs.5.3 billion.
The theme of the annual report is “Because challenges are opportunities…..…..Because we persisted, we succeeded.”
By: king on May 9, 2010
at 6:34 pm
GK DEPOSITORS INVITE K’WALA FOR TALKS
By Santhush Fernando – The Bottom line
Golden Key depositors, who have been left high and dry for nearly one and half years, and who had been all out against infamous Ceylinco Consolidated Chairman Lalith Kotelawala, have decided to co-operate with him and had invited its Board of Directors for talks.
Speaking to The Bottom Line, President of the Golden Key Depositors’ Society, Anusha Emmert said that they decided so as they have no resort as at present.
“We are helpless. We know that we can’t rely on the Central Bank of Sri Lanka. It has been nearly 18 months since Golden Key Credit Card Company collapsed but no tangible action has been taken by it. Not even the auditing process of Golden Key’s accounts has been completed in utter disregard to orders of the Supreme Court. So, we decided that we have no other option but to co-operate with Lalith Kotelawala,” Emmert said.
“Few days back, a depositor, who came for our meeting, said that she hasn’t eaten in two days and asked for a meal. So, to alleviate her grief, and of thousands like her, we took this decision,” she said.
Emmert said that after discussions with the Attorney General’s Department and CBSL officials two weeks back, the Society decided to begin talks with Lalith Kotelawala and Kavan Perera who was the chief executive of the failed Golden Key Credit Card Company.
“With responsibility we took this decision. If we can discuss with CBSL and AG who are made respondents why not have talks with Kotelawala?,” she queried.
Asked her reaction to the move by Kotelawala seeking re-election as Chairman, Ceylinco Insurance PLC, she said that her association had no objection as long as he is able to show how he can repay the depositors.
“We don’t mind him even becoming the Chairman of Ceylinco Consolidated again. We invite Lalith Kotelawala and Kavan Perera to come for talks with us,” Emmert said and charged the Central Bank for allegedly trying to downplay the repayment scheme.
“Kotelawala submitted the first assets list on 2009.04.27, and the second on 2009.05.15. We ask the CBSL as to why they are sitting on it. Furthermore, CBSL has rejected Kotelawala’s valuations and are giving lower valuations. For instance, where Kotelawala valued Ceylinco House for Rs.1,500mn CBSL is rejecting that and is saying it is Rs.500mn. We know that there’s a move by some interested parties to buy Ceylinco assets cheap and CBSL is acting more like a broker than a facilitator. We don’t need a broker and we will not allow Golden Key to become another Pramuka Bank,” she added.
“Not only Kotelawala and Kavan are robbers even the CBSL is to be blamed. We would like to ask the CBSL as to what happened to the 2006 audit on Golden Key,” she said and added that while Rs.26 bn were still to be repaid to Golden Key, Rs. 20bn has to be paid to depositors of five other troubled Ceylinco entities – Golden Key Credit Card Company Ltd, Ceylinco Finance and Guarantee (F&G), Ceylinco Investment and Realty (CIR), Ceylinco Profit Sharing Ltd and Ceylinco Shriram.
“People cannot be let to suffer anymore. It’s a daydream if some persons think that they can take over Ceylinco properties,” Emmert said.
Nearly one and half years after the Golden Key Credit card fiasco which caused a ripple effect in the country’s banking and finance sector, over half a million depositors around the island are still without recompense. Out of 9,200 depositors, it is learnt that only 2,617 – have been paid, and that too up to Rs.1 lakh.
By: Reporter on May 18, 2010
at 4:06 pm
For whatever reason if the Golden Key Depositors Association and its President thinks that by inviting the crook Lalith Kotelawela for Chairmanship of Ceylinco Consolidated, their woes will soon be over, it might be just day dreaming!
LK will never sell all his assets and solve the problem of those he was involved in turning into bankrupt desperate depositors. Please think, why did LK and his wife decide “to part ways and let Sicille leave the country” -to move their overseas assets to unknown places so that they cannot be detected. LK & Sicille are no fools!
Through the years, they extremely systematically siphoned money out of this country not without knowing that they were cheating their depositors. They used their Diplomatic Immunity as Honorary Consuls of 2 countries to do this job.
Please do not take the depositors down another precipice!
By: Darmitha on May 19, 2010
at 6:49 am
Dear Anusha you fought with Dushani cos she wanted to talk to LK. You said she had a relation ship with LK and thats why she wanted to talk and negotiate. Then you made a statement asking us not to take sides in the Presidential elections!! What a good forsighted leader you ARE!!!!
From Sharjah
By: king on May 19, 2010
at 11:46 am
Lalith Kothalawela has informed Ceylinco Insurance PLC today that he will not be available for re-election as a Director of Ceylinco Ins. PLC at the next AGM to be held on 26th May.
By: Reporter on May 20, 2010
at 7:02 pm
Hey, you have a great blog here! I’m definitely going to bookmark you! Thank you for your info.And this
is creditcards offer
By: creditcards offer on May 21, 2010
at 12:22 pm
I’m an final year undergraduate of Management faculty of USJP.We have to do a Financial case for the subjct of Integrative studies in Management and we have selected “Golden Key Credit Card scam” for that.Already we have gatherd many details but unable to find about what were the benefits,terms and conditions of the credit cards.Would any depositer pls help us giving these details?
By: Anuradha on May 21, 2010
at 2:12 pm
ETF case: Kotelawala released on bail
Courtesy: Daily Mirror
Ceylinco group chairman Lalith Kotelawela was yesterday granted bail when he appeared at the Mount Lavinia Magistrate’s court on charges of having failed to credit Employees’ Trust Fund (ETF) contributions of the staff of the Golden Key Credit Card Company.
Additional Magistrate Ruchira Weliwatte released Mr. Kotelawela on a personal bail of Rs.200,000 when the inquiry, into a complaint made by the ETF Chairman that Rs.2.5 million was due from the company, was taken up for inquiry.
The other suspects in the case are — Daniel Jegasothy, Bandula Ranaweera, Niranjan Fernando, Suramya Karunaratne, Sarada Sumanasekara, Michael Perera, W. Karunanayake, Sisilyawela Kotelawela and Chaminda Ediriweera. Court also released on bail Sarada Sumanasekara. Labour Officer Piyal Rupananda who appeared for the ETF chairman told court that four cases had been filed on this matter. He said the Watawela Committee appointed by the Supreme Court was in charge of the company’s assets and all necessary information had been sent to the attorney general for further instructions. The case was fixed for August 27.
By: Reporter on May 22, 2010
at 7:36 am
CBSL seeks SC approval to repay GK depositors
By Santhush Fernando
Watawala Committee on the collapsed Golden Key Credit Card Company is to present Second Repayment Plan for approval to the Supreme Court when the case is called up for hearing on Friday (June 18).
Under the Second Repayment Plan, supervised by the country’s banking watchdog – Central Bank of Sri Lanka (CBSL), all depositors who had invested below Rs.2mn or nearly 5,100 depositors, which make 75 to 80% of total number of depositors, are to be re-paid, The Bottom Line learns.
However, some depositors’ quarters are of the view that a move by one union of aggrieved depositors – the Golden Key Depositors’ Society which issued a June 2 ultimatum declaring an all-out-war against Ceylinco Group and its Chairman Lalith Kotelawala, have jeopardised the repayment initiative.
Another group – Golden Key Depositors’ Association is optimistic and is hopeful that a proper repayment plan is possible.
“After meeting a representative of Lalith Kotelawala on June 6, not only I, almost all GK representatives are of the view that full repayment is not impossible. We had a separate meeting on May 20 with Central Bank officials and that too was immensely successful,” Vice President of Golden Key Depositors’ Society, Dushanthi Hapugoda told The Bottom Line.
GK depositors had been represented by its Joint President Upali Perera, First Petitioner in the fundamental rights application, Roshan Fernando, Secretary Malcolm Silva, Assistant Secretary Kanthi Senarathne, Treasurer Anura Gunawardene, Chief Convenor and Organiser Marco Perera, Committee Members, Asala Senanayake and Deepak Hidramani. Presidents of its regional branches Palitha Kulasinghe (Negombo), Sunil Abeyrathne (Kurunegala) Roshan Abeysinghe (Kandy) also attended the meeting.
“If we destroy Ceylinco Group how can they ever repay us? Majority of depositors say that they are fed up with protests and pickets and all they want is their money back. They too believe that without Kotelawala there’s absolutely no possibility of any repayment whatsoever. When we went to Negombo, Kurunegala and Kandy that’s what the majority told us,” Hapugoda said.
According to the some sources, although Golden Key Group had an asset base of Rs.13bn at the time of the collapse, it has dwindled to Rs.2bn since then.
“If they (Ceylinco Group) are profitable only we can be assured of repayment. If we take on Kotelawala and Ceylinco Group, all companies of the conglomerate will collapse and innocent depositors would be the ones who will suffer at the end of the day. We must attack only if he does not pay back,” asserted Hapugoda.
She said that although some groups were publicly provoking depositors against Kotelawala and Central Bank Governor Ajith Nivard Cabraal, behind the back, they were secretly meeting and sending letters to both Kotelawala and Cabraal.
According to Hapugoda, Kotelawala had reportedly assured that he will try to repay maximum possible to the depositors.
“We informed his representative that we are agreeable to give him time to repay but strictly under two conditions. That during the period at least interest will be paid and second that he (and all other Directors) must transfer all personal properties to the Golden Key Trust at Central Bank as a guarantee that he will pay up to the last cent,” she added.
Asked what her Association felt about the repayment plan to be submitted for approval of Supreme Court on June 18, she said that the Association had intimated its views to Watawala Committee regarding it.
“CBSL will need at least Rs.4 to 5bn to pay each one who deposited below Rs.2mn. So, what we asked them is to pay back on pro-rata basis to ensure that all depositors get something back,” she said.
“Anyone who has not yet received their payments so far should inform the Association. Anyone can now find how much he or she has deposited or how much is to be repaid. Depositors should not unnecessarily panic as this money can’t be found overnight,” she added.
She also said that if Kotelawala failed to pay back, they were not reluctant at all to take legal action against him.
Speaking to The Bottom Line, President of Golden Key Depositors Society, Anusha Emmert said that there was no proper repayment initiative even after 18 months since the Company collapsed.
“We started our protests on June 11 from Kurunegala and continued in Kandy on June 12, Matara on June 13 and will take it island-wide. If Kotelawala is able to bring about a settlement by or before July 2, we won’t have to engage in any campaign. But if not we will disrupt activities of all Ceylinco companies,” Emmert said
By: benji on June 16, 2010
at 11:50 am
Hey What happened to The Hon Dr Mervin Silva’ s election pledge?? Ms Anusha could you please update if you have spoken to him, after you asked us to cast our valuable vote for the Hon Dr?
By: benji on June 16, 2010
at 7:30 pm
Hey Anusha are you still with us?
By: benji on June 22, 2010
at 7:50 pm
She is 100% active touring the country motivating disheartened depositors and in the very near future people below 2.5 million will get their entire deposits refunded !!! Thnx Anusha . May God Bless You and protect you our saviour.
By: Sinhaya on June 24, 2010
at 7:12 am
Dear Anusha and Dear Sinhaya – We too had a couple of investments at Ceylinco Global Profit Sharing Investments Ltd., and we too have not received any income from Jan.2009. Howsoever we try to communicate they do not respond. Emails, Registered Letters, Ordinary, telephone calls, they seem to ignore every form of communication. The two culprits involved areThe Deputy Chairman – KAS Jayatissa and the Chairman – Lalith Kotelawala himself. You cannot even contact their Executive Director Z M Rafeek. No response to any form of communication means that the business itself is founded on fraud.
Are you aware of anything that is happening at this subsidiary of Ceylinco – vis-a-vis Ceylinco Global Profit Sharing Investments Ltd., ?
There are so many poor people who have invested their life savings with this company.
Can you help?
By: Zulkifli on June 24, 2010
at 11:53 am
If you sit at home and sending e-mail , registered letters etc wont work with this bunch of crooks . Contact Anusha and your welcome to join in nos. the next mass protest to be held on 02nd Of July 2010 with posters depicting your pathitic situ !!!
You can contact Anusha on 0777909800 .
By: Sinhaya on June 24, 2010
at 4:41 pm
Golden Key depositors asked to seek SC approval
By Santhush Fernando
Charted Accountants’ Committee on the collapsed Golden Key Credit Card Company has informed the Golden Key Depositors Society, to seek approval of the Supreme Court prior to any possible talks with Ceylinco Consolidated Chairman, Lalith Kotalawela.
Speaking to The Nation, President of Depositors Society, Anusha Emmert, said that the Supreme Court-appointed Charted Accountants’ Committee known as the Watawala Committee, has officially intimated this to them by letter dated June 15, 2010.
“This letter is in response to the undated letter sent by you to Chief Executive Officer of the (Golden Key) Secretariat requesting a meeting with Lalith Kotalawela, other GK directors and the three-member Charted Accountants’ Committee appointed by the Supreme Court,” the letter stated.
“The aforesaid letter was presented to the committee meeting held on June 8, 2010, and it was decided by the three-member committee that the matter referred to therein, must be submitted to the Supreme Court by your society,”
“We are perturbed that the ‘Watawala Committee’ supervised by country’s banking watchdog – Central Bank of Sri Lanka (CBSL), which was all this time asking us to come for talks, have now taken a different stance. Although we wanted to seek the approval of the Supreme Court, when the case was to be called up last Friday, we could not do as the case was postponed, with June 18 being declared a public holiday,” Emmert said.
Disapproving an earlier claim by the splinter depositors group, Emmert alleged that Central Bank officials had intimated to her that Kotalawela was still not in a position prepare a second Repayment Plan for aggrieved GK depositors.
However, The Nation learns that Ceylinco Depositors Committee, led by former GKDA Treasurer and dissident Dushanthi Hapugoda, had intimated to GK representatives from Colombo, Kandy, Negombo, Kurunegala, and Galle at a meeting held on May 23, that a second Repayment Plan was being formulated by Watawala Committee.
By: benji on June 27, 2010
at 11:26 am
Bodyblow to CISCO
With no more divine intervention, one more company in the Ceylinco group is heading for very difficult times. Its security outfit CISCO has just lost its biggest income earner the Seylan Bank contract to provide security to its 100 odd branch network countrywide said to rake in about Rs100 million in revenue. The lucky beneficiary is Avant-Guard. Though Seylan too is a member of the Ceylinco Group in order to shield it from the turmoil engulfing the Group, authorities handed over its management to the Bank of Ceylon.
By: benji on June 27, 2010
at 11:32 am
GK depositors demand the authorities to expedite repayment
SATURDAY, 03 JULY 2010 00:00
Hudreads of disgruntled depositors of the failed Golden Key credit card company staged a massive protest at R. A. de Mel Mawatha (near the HSBC junction) in Colombo, on Friday demanding the authorities to meet out justice for them by expediting the repayment of their hard earned savings deposited in the company.
They marched towards the residence of Ceylinco Chief Lalith Kotelawala in a procession led by traditional tom tom beaters carrying two coffins as a symbol of their plight owing to Kotelawala’s action. Angry depositors set fire to one of the coffins opposite the residence of Lalith Kotelawala after their protest demonstration.
Golden Key depositors claim that the authorities have undervalued assets belonging to Lalith Kotelawala, thus depriving them of their hard-earned savings. The disposal of such assets will not raise the expected amounts depositors alleged. They said that it will push them into further difficulty.
President of the GK Depositors Association Anusha Emmert told the Business Times that the authorities have failed to find redress to their economic problems even after 19 months of the GK crisis. Over 9200 depositors are languishing and are unable to meet their day-to-day needs after being deprived of their savings and have no other source of income. Depositors have so far been given only Rs.100, 000, even though the majority of them have deposited millions with Golden Key. She noted that some of the properties have been deliberately undervalued in a bid to deny the real value being channeled to depositors.
By: benji on July 3, 2010
at 11:25 am
No relief even after 19 months have lapsed Struggling GK depositors protest opposite Kotelawala’s house
Distraught Golden Key depositors, who have been denied their capital plus interest for the past 19 months, staged a noisy protest opposite the Elibank Road residence of Ceylinco Chairman Lalith Kotelawala on Friday.
Carrying coffins, they first demonstrated near the former office of this troubled Ceylinco subsidiary at Duplication Road before gathering outside Kotelawala’s house, where they continued to shout slogans and protest for hours. Later, they set fire to the coffins.
Police personnel stood by to prevent any untoward incidents as desperate depositors, most of whom have been reduced to paupers, also blamed the authorities for the inordinate delay in granting them relief. More than one and half years after the collapse of Golden Key, the struggling depositors are still waiting for justice to be done.
The demonstrators said that no punitive action has been taken against Kotelawala and the other directors involved in this scam while thousands of poor depositors are going through a nightmare. Many of them have been virtually thrown to the streets as they have lost their life-long savings. Some of them have suffered and died.
They said that the authorities entrusted with the task of selling the assets of Golden Key and its directors and settling depositors have so far failed even to pay back in full those who had invested Rs. 500,000, let alone the others. While even children continued to suffer as their parents had lost their hard earned savings, the directors still live in the lap of luxury.
The protest was organized by the Golden Key Depositors’ Society headed by its president Ms. Anusha Emmert. (SP)
By: Reporter on July 4, 2010
at 8:21 am
DEAR DEPOSITOR, WE HAVE SURROUNDED KOTHALAWALA’S ELIBANK RESIDENCE. WE WILL WAIT UNTIL WE GET OUR MONIES BACK. COME & JOIN US. VERY VERY URGENT.President ANUSHA EMMERT & THE COMMITTEE. 0777909800 0779405364 0777466072
By: benji on July 15, 2010
at 7:25 pm
* Sri Lanka police arrest and grants bail to president of the Golden Key Depositors’ Association
Fri, Jul 16, 2010, 10:29 am SL Time, ColomboPage News Desk, Sri Lanka.
July 16, Colombo: President of the Golden Key Depositors’ Association, Anusha Emmert who was arrested yesterday (15) evening while carrying out a protest with other members of the association outside the residence of former Ceylinco Chairman Lalith Kotelawala in Colombo, was released on police bail this morning.
Six others arrested along with Emmert were also granted police bail of Rs 100,000 each and asked to appear before the Mount Lavinia Magistrate’s Court later on Friday morning.
The depositors were demanding that Kotelawala be held accountable and rescue thousands of depositors who are yet to have their dues fully settled when they were arrested by police.
According to the protestors, an argument has erupted between the police officers and Emmert when the police arrived at around 6:30 p.m. and asked them to call off the protest. Emmert had then been forced into a jeep and taken away, they said
By: nadunhewge on July 16, 2010
at 11:41 am
Whare were the COPs when UN was blocked??? I think LK is protected??
By: nadunhewge on July 16, 2010
at 11:52 am
This is the address if Ceylinco Golden Key Corporation UK
Ceylinco Golden Key Corporation Pty Ltd
Address
Shop 1 L 2 Shop 1/L 2 121 Scarborough St
Southport QLD 4215
Watawalam/cb CId pls investigate this place, how was money sent from SL? Khavan’s family is here now.
By: nadunhewge on July 16, 2010
at 12:20 pm
In a desperate attempt by the depositors of the failed Golden Key Credit Card Company to get their money back to support their living expenses, a protest was carried out in front of the residence of Mr. Lalith Kotelawala (who was the Chairman of the failed company) at Elibank Road, Colombo 4. The protest started in the afternoon and carried out by about 30 depositors in a peaceful manner. How ever about 15 policemen were deployed in the area around 5:30 pm and the depositors were warned by police to leave the area. Private security of Lalith Kotelawala were seen in the area working closely with police team and at one point the police officer asked them to come and make a
complaint at the police station so that police can do the needful.
Around 7:45 pm a group of additional policemen arrived in vehicles and forcibly crammed the depositors along with their kids to the vehicles and charged them with abusive language. Depositors were reported to have been taken to Bambalapitiya police station which acted in a highly biased manner when the Golden Key failed, even refusing to take down the complaints made by the depositors and the staff without prior approval of Kotelawala and his henchmen . Eyewitnesses questioned the action of police and asked whether only Minister Wimal Weerawansa is allowed to carry out peaceful protests in this manner while the other citizens of this country are deprived of their right to protest. They also commented those who robbed depositors are set free while the innocent depositors are arrested today clearly indicating the double standards applied by law enforcing authorities .
Golden key credit card company which operated for almost 30 years, crashed with the arrest of the Deputy Chairman Mr. Khavan Perera in December 2008. This is a classic example of failure in Sri Lankan regulatory framework of the Central Bank and the legal system.
By: nadunhewge on July 16, 2010
at 11:08 pm
FROM BBC SITE
The depositors have protested seeking talks with Mr. Kotalawala
The depositors of Golden Key Credit Card Company (GKCCC) have filed a petition against the police for assaulting them while making a peaceful protest.
The depositors say they were beaten and arrested by the police while protesting on Thursday in front of the residence of Lalith Kotalawala, the proprietor of the Ceylinco Group of Companies, of which a GKCCC is a member.
Anusha Matters, the chairman of the depositors group told BBC Sandeshaya that the police arrested seven depositors, including herself, while making a peaceful protest urging Mr. Kotalawala for a discussion.
The group was later released on police bail.
“Police officers behaved like animals and used filthy language. They kicked us and didn’t give us a moment of relief to talk at all,” Ms. Matters told BBC Sandeshaya.
She said the depositors have been carrying out similar protests for the last few months and the police intervened to arrange discussions with the company officials.
“This only happened after the new OIC in Bambalapitiya police took over,” she said.
By: benji on July 17, 2010
at 5:09 pm
Arrested protesters released on cash bail Eighteen distraught Golden Key
depositors have suffered and died so far – Lawyer tells court
July 17, 2010, 7:50 pm
By Jayantha de Silva
Eighteen Golden Key depositors have suffered and died so far since this Ceylinco subsidiary headed by Lalith Kotelawala collapsed in December 2008, the Mt. Lavinia Magistrate’s Court was told last week.
Attorney-at-law Sumudu Hewage, who represented the seven members of the Golden Key Depositors’ Society arrested by the Bambalapitiya police for allegedly blocking the entrance to Kotelawala’s Elibank Road residence, told Additional Magistrate Ruchira Weliwatte that these struggling depositors who had lost their life-long savings, were engaged in a peaceful protest.
He said that these depositors were amongst the innocent people who had deposited money in Golden Key for their sustenance, as proven by the tragic case of a woman who had deposited the compensation she received after her husband was electrocuted. She used the interest earned on her investment for the upkeep of the family.
The police had filed charges against the seven protesters for being members of an illegal gathering exceeding five persons. They were arrested outside Kotelawala’s house last Thursday night.
Hewage said that 18 desperate depositors have lost their lives since Golden Key crashed 19 months ago.
The lawyer said that the police swooped down on the peaceful protesters and used force to drag them into vehicles and take them to the Bambalapitiya police station, where they were held until after midnight the following day.
Attorney-at-law Athula Ranagala dismissed the claim by the police that the protesters were blocking the entrance to Kotelawala’s house preventing anybody from coming in or going out. “It was a peaceful protest by depositors who had lost all their hard-earned savings”.
Hewage said the police intervention was contrary to Article 14 of the Constitution which guaranteed the freedom of expression and association.
The police told court that Kotelawala had made a complaint that he could not go out as the protesters were blocking the entrance of his house.
The lawyer said the protest was staged away from the entrance to the house and there was no hindrance to any movement as a result. These protesters had a genuine grievance as they had deposited money in Golden Key and lost all their savings. They had a Constitutional right to protest against this injustice.
The members of the Golden Key Depositors’ Society arrested by the police included its President Ms. Anusha Emmert. They were released on 25,000 rupees cash bail each by court.
Ms. Emmert told the Sunday Island that a police party swooped down on the peaceful protesters and used force to drag them into vehicles. She was with her three-year-old child when she was arrested.
She said that they were kept at the police station for hours and it was 1.30 am when her statement was recorded. “After our lawyers intervened, we were released on 100,000 rupees each police bail”.
She described the protest as completely peaceful and well within a citizen’s right in the face of the gross injustice perpetrated on Golden Key depositors who continue to suffer. “The perpetrators are scot free while the victims are going through a nightmare”.
When Wimal Weerawansa protested and blocked the entrance to the UN compound, there was no police action to arrest and charge anybody in court, she pointed out. “Only poor depositors, duped by people who continue to live in luxury, are being harassed”.
Ms. Emmert said that there was free movement in and out of Kotelawala’s house and they saw members of a musical band arrive and guests, including two foreign women, also came from time to time. “We did not cause any obstruction”.
“There were two cameras fitted near the entrance and when the door opened we saw six personnel manning four Close Circuit TV Cameras inside”, she asserted. “There were bodyguards also around the place and some of them even spoke with the protesters”.
She said that the members of the Society who were arrested have lodged a complaint with the Human Rights Commission against the police action and also against the violation of their rights by denying them a fair hearing by the authorities concerned.
There is a Central Bank committee but no tangible relief has so far been granted though 19 months have elapsed since Golden Key collapsed, she complained
By: nadunhewge on July 18, 2010
at 2:30 am
Election time they all gave promiesers Mr cabral sleep now..
By: jayantha on July 21, 2010
at 4:52 pm
Yes. Because, recently Cabral underwent a bypass surgery. Three of his valves blocked. Now he is at home and will take some more time to come back to office.
By: Reporter on July 21, 2010
at 10:05 pm
May be we can help him block rest of his valves. That’s the only way to kick away this bastard.
By: Nobert on July 24, 2010
at 9:25 am
I think we have already wasted more than enough time for protesting & shouting & & &…. If the law can not help us anymore, how can we recover our money, we should reunited and go to kotalawala’s house by destroy all the barriers & gates & catch that old bastard as a prisoner, then we can demand our money from him, If he won’t, we will kill him as the similar way done to Daduwam Mudalali. At least then we can satisfied Justice has done.
By: Nobert on July 24, 2010
at 9:50 am
I think like Norbert says we have to re group, re unite!! and fight…
By: nadunhewge on July 24, 2010
at 10:16 pm
Thanks At least one person agreed with me. What about others ?Are they Deaf or Are they chickens?
By: Nobert on July 24, 2010
at 10:35 pm
I know government won’t help us anymore, they don’t care of us & they don’t need us anymore, High Court (C.J & team (except Hon. Ms. Shiranee Thilakawardana) are puppets of M.R. So, we won’t get real Justice from them. If former C.J. was still in power, we might be get real Justice for this case. But Now everything has gone. We must act for our own sake & own way to recover our lost (hard earned) money. Some bastards calling our money was in local Swiss Bank. Because of jalousie those(bastards) are telling like that (specially media – reporters).
By: Nobert on July 24, 2010
at 10:57 pm
That what the Sunday Leader called the depositers SWINDLERS!!! That paper sucks!! They should appolagise! Depositors are getting calls from criminals who see the list and r asking for RANSOM money!! Kids are in danger lifes are in danger thanks to the SUNDAY LEADER for putting out all the names. The POLICE TAX DEPT have the list any way, why did the SUNDAY LEADER give out the names to public domain?? Is it an ethical newspaper??
By: benji on July 25, 2010
at 11:45 am
Business Times
Major Ceylinco assets worth over Rs.42 billion to be sold to repay depositors
By Bandula Sirimanna
Major assets of failed Ceylinco companies including the Celestial Residencies Tower- Kollupitiya, Trillium Residencies, the Pioneer Tower in Fort, and the Ceylinco E.N.T. hospital at Rajagiriya all valued at over Rs. 42.6 billion are to be sold soon to expedite the repayment of disgruntled depositors on a Supreme Court order.
A US-based real estate company which is a subsidiary of failed Ceylinco Shriram group, will also be liquidated and all Ceylinco funds returned to Sri Lanka. A civil case has been filed at the Columbia Civil Court to liquidate the Ceylinco Real Estate holdings, LLC USA which is a subsidiary of Ceylinco Shriram group, a senior official of the Attorney General’s Department said.
Celestial Residencies is to be sold at a price of $75 million (approximately Rs.8.2 billion) or above by Ceylinco Shriram which has invested around Rs. 1 billion on the 45-storied building project, while other connected Ceylinco companies have also made investments.
The property is also to be advertised in local newspapers this week on a court direction which also made a similar direction in relation the sale of Trillium Residencies and the Pioneer Tower in Fort, formerly known as Ceylinco House.
Meanwhile protests against Ceylinco chief Lalith Kotelawala and other directors have been intensified as there is no sign of relief in sight. Angry depositors of Golden Key Credit Card Company (GK) who staged a protest last week opposite the residence of Kotelawala on Thursday surrounded the Dehiwela residence of former GK Chief Executive Officer and Deputy Chairman Khavan M. Perera in a peaceful protest,
President of GK Depositors Association Anusha Emmert said Perera met the depositors and assured them to come up with a solution by extending his cooperation to the Supreme Court. Earlier Ms Emmert and six others were arrested as they protested outside the plush Kotelawala Kotelawala in Colombo and later released on bail.
By: benji on July 25, 2010
at 11:46 am
Read this
HE GOT A DOCTOR TO DRESS HIM UP TO LOOK WEAK, THE BLOODY OLD FOX!!
Ceylinco in aftermath of Golden Key tsunami
Lalith Kotelawala used public monies taken from his companies to build his philanthropic image. He directed his seniors over the telephone and millions of rupees changed hands with no paper records
By Jithendra Antonio
“Life is either a daring adventure or nothing at all!” A quote by Helen Keller carried on an advertisement by Ceylinco Educational and Financial Services Group in a published national newspaper on October 29, 2008 on 70th birthday of one of Sri Lanka’s then leading philanthropic business tycoon’s, Dr. Deshamanya Lalith Kotelawala. He was the beloved Chairman of one of Sri Lanka’s largest ever conglomerate ‘Ceylinco’ which had about 500 subsidiaries locally and internationally headed by 21 subsidiary groups.
However, on the next two days something that thousands of share holders and creditors of Ceylinco didn’t note was the resignation of Director, Dr. Sicille Kotelawala from hundreds of subsidiaries of Ceylinco including the Golden Key Credit Card Co. Ltd. and the listed entities such as Seylan Bank PLC, Seylan Merchant Bank PLC, Ceylinco Housing & Real Estate Co. PLC, The Finance Co. PLC and Ceylinco Finance PLC. As for the Group’s employees and board of Directors it was a restructuring plan to position for the next phase of Ceylinco’s business strategy while appointing their Chairman as the Founding Chairman of Ceylinco Consolidated that was operating on a ‘Cell Theory of Business’ without any share holding of other subsidiary group companies.
And soon Dr. Kotelawala was gaining popularity once again by late 2008 as a destabiliser of Sri Lanka’s financial industry when he was preaching on mass media that he would take care of depositors of Sakvithi. Although as a shock of a financial tsunami to the whole group, suddenly an unlisted entity of Ceylinco started to collapse day by day with increased depositor withdrawals in the next 48 days. Finally on the December 18, 2008 it was news to all that Sri Lanka’s first credit card company which started in 1980’s was in a run of deposits by customers.
Golden Cash Cow
Golden Key Credit Card Company Limited was in fact a better positioned entity that continued business for more than two decades offering credit card services while offering a higher interest rate for security deposits compared to the standard interest rates of Sri Lankan financial industry. In fact, the philanthropic image of Dr. Kotelawala alone had been a primary driver to invest in Golden Key and Ceylinco Financial Subsidiaries for country’s other prominent leading businessmen, politicians, cricketers, movie stars, Industrialists, professionals, clergy and even the common laymen. But none of those depositors ever understood that Dr. Kotelawala, along with his Board of Directors, was managing a highly risky financial portfolio behind their collars offering interest rates ranging from 25% to 50% per annum for public deposits. Nobody ever questioned how they could offer such high interest rates when you will hardly find a business that could generate extra 50% as returns to pay back the creditors when the administrative cost and operation cost is deducted from the balance sheet. On January 30, Deputy Solicitor General, Sarath Jayamanne said in Mount Lavinia Court that total deposit base at Golden Key is about Rs. 26 billion. Out of that, Rs.6 billion had been transferred to other companies within the Ceylinco Group and Rs.14 billion misused by the management. He further said 1 billion rupees had been spent illegally and balance Rs.5 billion had been not accounted for.
Sri Lankan economy was resilient for a certain extent from global financial crisis as per economic experts. It was due to the fact that Sri Lanka had a relatively small economy compared to other financial giants. But as soon as the global financial turmoil came into effect; the world started to witness master frauds by people such as Bernard Madoff who mastered US $ 65 billion fraud and Allen Stanford who was involved in US $ 8 billion Stanford Financial Group fraud. Similarly, amidst financial scams in United States, Sri Lankans also witnessed another financial scam on September 2008. It was Sakvithi who came with a higher interest on deposit scheme who disappeared with Rs.5 billion. It is a mystery whether Sakvithi felt that the world economy was going to fall since he disappeared just before the global financial crisis came about becoming an early bird who saved himself from being caught for a Rs.5 billion financial scam.
In the midst of all recent arising liquidity issues in Ceylinco financial subsidiaries, mismanagement issues and depositors’ dilemma, it seems that the liabilities and risks of the balance sheets of crisis hit Ceylinco Consolidated and its Chairman, Lalith Kotelawala’s subsidiaries had been transferred to individually appointed representatives and state owned financial companies or Central Bank to take immediate steps to stabilise the rising matters of Ceylinco.
Lack of Corporate Governance
“Lalith Kotelawala was two images in corporate world, according to a top official from former Ceylinco Consolidated. “one side, he was the great philanthropist who provided employment to thousands of people looking after them like a caring stepfather, did massive charity work and helped the poor. On the other hand, he did not use his personal funds. He used public monies taken from his companies to build his philanthropic image. He directed his seniors over the telephone and millions of rupees changed hands with no paper records,” added our source who wanted to remain anonymous.
According to Business Community and Central Bank in Sri Lanka, Lalith Kotelawala stepped into areas that he knew nothing about. Central Bank of Sri Lanka found the Ceylinco Group to be lacking in corporate governance. Their transactions were not transparent. In the previous financial reports of companies such as The Finance Company PLC you will hardly ever find the related party transactions in a detailed form rather than by a small one sentence that is published in font size 8 at the bottom of page in the notes to the financial statements. “Kotelawala used his legal businesses to do illegal business,” our source said adding that perhaps under one registered company some Ceylinco Group companies operated several unregistered companies.
The Ceylinco Group’s many investments were not giving adequate returns but there was no proper mechanism to monitor this. “Kotelawala was not a fully qualified accountant and had no capacity to understand an in-depth analysis of the accounts. When you are a chairman of such a large number of companies, where can you find the time to read or analyse board papers? He might have delegated it to others, but people who got the powers used them incorrectly”, “ reasoned this Ceylinco Consolidated official.
Some companies did not make a single cent as returns but promised fancy interest to depositors. When one company failed to generate revenue, they borrowed capital from another. It was similar to a ponzi scheme. Robbing Peter to pay Paul. And Asking from Pat to then pay Peter back and Mortgaging assets back to Paul to pay back Pat” he added. In that system Lalith Kotelawala has been helping himself to a stocky slice of his Ceylinco conglomerate’s income.
Super Luxury Life and Political Financing
“Kotelawala fooled everyone big and small — including the relatives of a former Minister of Finance. And now he is trying to fool the investigating officers”, the Deputy Solicitor General Jayamanne once told court. It was in fact, true as many Ceylinco subsidiaries accompanied many politicians and island’s top cricketers with higher interest rates for deposits ranging from 30% to 50%. According to an earlier statement at the announcement of restructuring plan of F&G Group of Ceylinco, former F&G Deputy Chairman Mervyn Jayasinghe said that they offered 42% to a former Finance Minister of UNP Government. According to a top official from Ceylinco, Lalith Kotelawala always used to keep the politicians entertained while he was building his high risk financial business empire with billions of public deposits. “He financed millions during the 1994 Presidential Election campaign, and more than Rs.40 million during 2005 Presidential Election, ” said another Ceylinco source who wished not to be identified.
In Lalith Kotelawala’s life story as narrated in biography of Kotelawala by Nayomi Ratnayake Weerasooriya, Kotelawala says how former President Chandrika Bandaranaike Kumaranatunga offered him a VSAT satellite license in Sri Lanka and gave permission to invest Rs.10 million (in Nepal) to setup an insurance company relaxing exchange control policy in Sri Lanka. “She told me in her usually blunt way not to ask again ‘We are short of foreign exchange, she said,’ says Lalith in his life story.
In the same book, he also says how he had to wait for years until the United National Front government in 2002 come into power to obtain approval for Ceylinco Savings Bank. Whilst Dr. Kotelawala also highlights how he obtained a Rs.400 million from then government in 1996 to reconstruct Ceylinco House with a loan by entertaining a Finance Ministry official to a house from Ceylinco housing projects on low interest terms. (reference page 315)
In a 2006 interview with a business weekend paper, Lalith Kotelawala says: “Today, I have many homes, bungalows and holiday homes. Some, I haven’t even seen. I have almost 20 cars, but I can only drive one at a time. I can afford to eat the best food at the best hotels, but I am a diabetic. So I cannot. Money is a tool that can be used to improve lives and I believe that those with money must use it to help others help themselves. It can really help alleviate poverty.” A doctor, formerly attached to Golden Key ENT Hospital, who dressed Kotelawala to look weak at court sessions in the aftermath of Golden Key scam, said that Kotelawala used to comb his hair even with a pure silver made comb until 2009 court sessions which is now in possession of the same doctor.
Whether all this luxury living enjoyed was financed through public deposits is a question that bubbles among Ceylinco Depositors.
Rs.50 billion Mismanaged
On the other hand, there has been only one company in world history which held its Annual General Meetings in larger public stadiums and playgrounds to address its massive number of shareholders. It was none other than the Reliance Industries of India and soon the Ceylinco Consolidated made history in the world hosting meetings on ‘Repayment Plans’ for thousands of depositors, creditors and investors of its failed 60 odd financial subsidiaries at public stadiums and public playgrounds and road sides. There are approximately 50,000 depositors who are now left away including nearly 9000 Golden Key depositors, 7000 F&G depositors, 7000 depositors of Ceylinco Shriram, 10,000 depositors of Ceylinco Profit Sharing and tens of thousands of depositors who are unable to withdraw their funds from other Ceylinco financial subsidiaries.
As a whole, when taken in to consideration, the total mismanaged portfolio of Ceylinco counts up to more than Rs.50 billion including the Rs.26 billion in Golden Key Credit Card Company, Rs.13 billion in F & G Company, Rs.7 billion in Ceylinco Shriram, Rs.5 billion in Ceylinco Fast Cash, Rs.800 million in Ceylinco Profit Sharing and many other subsidiaries.
However, apart from the mismanaged portfolio Ceylinco Group was the primary controller of local financial industry and the real estate market via its 60 odd financial subsidiaries and about 20 subsidiaries which was into real estate business. Ceylinco Group controlled approximately Rs.300 billion (about US $ 3 billion) worth of public deposits through its commercial bank Seylan Bank PLC, Ceylinco Savings Bank, Ceylinco Development Bank, The Finance Company PLC, Ceylinco Investment and Realty Limited, Ceylinco Building Society, Ceylinco Finance PLC,Seylan Merchant Bank PLC,Seylan Merchant Leasing PLC, Asian Finance Limited and other failed financial subsidiaries. So, the failure of Ceylinco in turn created a domino effect in local financial industry creating a suspicious and confidence lost public community.
Almost after 18 months since Golden Key collapse the bursting question among financial industry experts is, “How long the Ceylinco or other Managing Agents of Ceylinco Financial companies will be able to pay the liabilities of all left away big and small depositors and creditors since it has adversely and indirectly affected the day to day movement financial flows in the local economy. Besides, it has also affected the Real Estate industry and Construction industry in the country.
Meanwhile, certain failed subsidiaries of Ceylinco, Including Finance & Guarantee Company Ltd, The Finance Company Ltd., Ceylinco Investments and Reality Ltd, Ceylinco Building Society, and Ceylinco Sussex College Network, is now under the management of Merchant Bank of Sri Lanka while the depositors of these institutions continue to lobby about unable to get withdrawals of their deposits at maturity since the companies are only allowing them to renew the deposits at maturity and allowed only the interest paid on the deposits.
About 6820 depositors of Golden Key have only received Rs.100,000 per person on May 18, 2010 as per the repayment plan of Central Bank appointed Chartered Committee of Accountants and the creditors of Ceylinco Shriram are yet to receive repayments on 42 month plan, according to Dushanthi Hapugoda of Golden Key Credit Card Limited Aggrieved Depositors Union.
“A person can mismanage his or her own finances, but he has a bounden duty and responsibility not to play around with other people’s money! There is a saying, “You can fool some of the people all the time, all the people some of the time, but not all the people all the time,!” said a depositor of Golden Key whose father died of heart attack. Both her son and father had deposited all their income from inherited property sales of Golden Key.
Lalith Kotelawala built an empire on good public relations, but unregulated internal money transfers among his businesses may give him returns that he did not bargain for. Kotelawala is now enlarged on bail limiting his travel only to the boundaries in Western Province of Sri Lanka while a warrant has been issued for the arrest of his wife, Sicille Kotelawala, who is said to be in Singapore.
From banking to insurance, credit cards to finance and real estate, travel, healthcare and tourism to IT services, Lalith Kotelawala had a finger in every pie of business. And faster it diversified, according to top financial industry experts
Ceylinco just got a little too big to handle with money flowing freely in all directions. Some feel the group was a disaster waiting to happen like a pack of cards to fall when the ‘Ace’ of the cards, ‘Golden Key’ fell with a fast blowing wind .
It is a mystery on how a great tycoon who reestablished the finance industry in Sri Lanka during the 80’s downturn in financial sector of the country through acquisitions of failed finance companies such as Asian Finance Ltd., Finance & Guarantee Ltd. and Panadura Finance Ltd., has now run into a major crisis in his business empire which was brought down by a Rs.26 billion fraud in a unregulated credit card entity which accepted public deposits. Other firms in the group, which have about 500 subsidiaries and associates, are also being restructured by the regulator or have been offered for sale. The Ceylinco Group also started construction work on Ceylinco Celestial Residencies, a 45-storey luxury apartment tower billed as the island’s next tallest building, work on which is now stalled.
Ceylinco Consolidated, once a flagship which targeted the hearts and minds of people with its ‘bank with a heart’ by assuring the protection of ‘all, big and small’ is now closed. And recently the most valued entity of Ceylinco, Ceylinco insurance company PLC recently appointed a new Chairman, Godwin Perera from a marketing background closing down the Kotelawala reign in Sri Lanka’s oldest insurance company which was started by Cyril E. S. Perera QC (UNP Member Colombo North) and Hugh Weerasekere which was later transferred to Senator Justin Kotelawala and his brother Sir John Kotelawala during Prime Minister Sirimavo Bandaranaike’s time. Senat)Por Justin Kotelawala then gained control of Ceylon Insurance Co. from Mrs. Alice Farmacia Perera, widow of the late Cyril E. S. Perera and positioned and retiled as Ceylinco Insurance with his son Lalith Kotelawala and started a group with 500 subsidiaries being a significant player in Sri Lanka’s economy before finally collapsing affecting the finance industry strangling thousands of depositors, and leaving its impact more for generations in Sri Lanka.
By: benji on July 25, 2010
at 12:00 pm
THIS ………… SHOULD ROT IN HELL ALONG WITH HIS BIL SANKA WIJESINGHE WHO IS DECEIVING DEPOSITORS IN CEYLINCO INVESTMENT & REALITY LTD WITH THAT ……….HIRAN WHO IS ……. CHINTHA (……………….) HIS SECRETARY !!!
By: Sinhaya on July 27, 2010
at 2:04 pm
Kindly do not use filthy words when making comments.
Web Administrator
By: suranimala on July 27, 2010
at 3:44 pm
Accoding to sunday time dated on 25 july seylinco assets to be sell worth over 42 billion,is it true celesial Residance they have given prise tag 8.2 billion($75million) who will pay this money perhaps neither 10 years ….??
By: jayantha on July 27, 2010
at 3:42 pm
NOW CEYLINCO MALAYSIA IS ACTIVE AGAIN, ALL THE MONEY HAS GONE THERE!! WELL DONE SHANKA!!
By: benji on August 1, 2010
at 12:46 pm
Is this how the GK money was taken to Malaysia???
RS.120 MILLION FOUND UNDER AIRPLANE SEATAugust 3, 2010 04:05 pm
Customs officials have found more than Rs.120 million in foreign currencies under a seat of an airplane. Custom sources have stated that this was found in a airplane that was scheduled to fly to Dubai. It is suspected that this currency stock was to be smuggled from Sri Lanka to a foreign country.
This stock of money was wrapped in carbon papers and was stored in 10 paper bags. However, investigations have started regarding how the money was taken inside the aircraft.
By: bonface on August 3, 2010
at 4:30 pm
what happened to court case?
By: nadunhewge on August 6, 2010
at 9:36 pm
Just read this news item on Sinhale Hot News
http://sinhale.wordpress.com/2010/08/06/several-golden-key-assets-kavan%E2%80%99s-properties-to-be-sold-sc/
By: Reporter on August 6, 2010
at 9:54 pm
SC gives the go-ahead
Singaporean businessman to buy Golden Key ENT Hospital for Rs. 1.3 b
August 7, 2010, 7:17 pm
BY SURESH PERERA
The state-of-the-art Golden Key ENT Hospital in Colombo is expected to be sold for 1.3 billion rupees to a Singaporean business tycoon.
The Supreme Court on Friday gave the green light to go ahead with the proposed sale to Ho Soofong, who has submitted the highest bid for this fully-fledged, modern hospital described as one of the best medical facilities specializing in Ear, Nose and Throat (ENT) treatment in South Asia.
The prospective buyer should deposit the funds by August 20, 2010 for the completion of the transaction. The hospital’s staff should also be absorbed by the new management, Court directed.
On the recommendation of the Supreme Court appointed three-member Committee of Chartered Accountants, Court also ordered the sale of Sea Sands Hotel, Bentota three floors of Ceylinco House (Akasa Kade) and a building at De Fonseka Road in Colombo 5 to raise cash to repay Golden Key depositors.
The Supreme Court bench comprising Justices Shiranee Tilakawardane (President), K. Sripavan and Chandra Ekanayake was hearing the Fundamental Rights (FR) plea filed by a group of depositors of the failed Golden key Credit Card Company – a subsidiary of Ceylinco Group.
Court also permitted the forfeiture and sale of property and assets of former Golden Key CEO Kavan Perera to raise money to be channeled to the Special Purpose Vehicle (SPV) created to settle depositors.
Perera’s assets ordered to be seized are a house at Pelawatte, an apartment at Hyde Park Residencies and a Peugeot car (WP 3677). In addition, A$ 27,000 in his bank account in Australia should be transferred to the dedicated account to settle depositors.
As the second phase of the repayment process, 200,000 rupees will be repaid to depositors and in the case of those who had invested less than this amount, 75% of their deposit will be settled.
“Now that we have obtained clear directives from the Supreme Court, the implementation process will begin”, a senior official said. “We need to find buyers for these assets to raise liquid cash”.
He said that 770 million rupees will be required to make the part payment of 200,000 rupees to each depositor, as directed by the Supreme Court.
Repaying in total deposits of up to about 3 million rupees would have ended a lot of heart burn as the majority of depositors who had invested their retirement and compensatory benefits fall into this segment, he noted.
“With the inflow of liquid cash, we should work towards a repayment plan to clear these depositors with the sanction of court”, he said. “As this will ease their burden, it will help us to concentrate on settling the others also in stages”.
Welcoming the relief granted by court, Dushanthi Hapugoda, President of GKCC All Depositors’ Association, said: “We held three rounds of discussions with Lalith Kotelawala and he promised to cooperate with ongoing efforts to end the suffering of depositors”.
“We look forward to working with him in the future as well as he has honoured his word and proven that he is keen to help end this humanitarian crisis”, she said. “This is a big step forward in a tragedy which has shattered thousands of lives”.
Ms. Hapugoda thanked the Committee, Central Bank, Attorney General and the CID for their untiring efforts to bring solace to struggling depositors who have been denied their capital plus interest since Golden Key crashed 20 months ago.
The Supreme Court called for a report on the Golden Key teak plantation at Galewala amidst reports that it had been blocked out and sold. The CID was directed to conduct investigations.
Court sanctioned the appointment of Mangala Boyagoda, MD, Wealth Lanka Management, to assess the properties, assets and wealth of Golden Key in Sri Lanka and overseas and report to court. He was asked to start work immediately.
Court also ordered the cancellation of the transfer of 500,000 ten rupee shares of Ceylinco Investment Company by Janaka Ratnayake, a director of the Merchant Bank of Sri Lanka, to his personal account.
Directing that Ratnayake be removed as a director of the Merchant Bank of Sri Lanka, court ordered these shares to be transferred to the dedicated account to repay Golden Key depositors.
The Committee of Chartered Accountants is headed by Lakshman R. Watawala and comprises Nelson Nagasinghe and Mahendra Panditha.
By: bonface on August 8, 2010
at 12:38 pm
WHO I STHE BIGGEST SWINDLER/ROGUE IN THIS COUNTRY,,, not SHAKVITHI..
kotalawela , kavan perera and his sets of rogues are by far the most notorious in the country..
its so pathetic , justice has not prevailed for the innocent public.
JAY
By: JAY on August 9, 2010
at 5:09 pm
Sunday, August 22, 2010
Fate Of GKCC Depositors In The Balance?
” Depositors plead they are little concerned with the sinister games within various sources trying to cash in their misery and say they are aware the value of Kotelawala assets are sufficient to meet what is due to them. They want President Rajapakse and his government and the Courts to give them early relief and justice.”
………………………..
by Luxman Arvind
(August 22, Colombo, Sri Lanka Guardian) Over 8,000 depositors trusted the honorable Kotelawala name with their live’s savings( over Rs.26 billion) were given a life-line when the government intervened on their behalf and assured early relief. The efforts of the people concerned forming into an effective body brought some results.
Depositors fell into different categories. (1) The very rich – sharks, if you like, who had their black-money stashed here . Amounts in some cases going over several Rs.200 million. They were generally cashing into getting tax-free interest income to finance their high living (2) those from upper middle class families with Rs.25-50 million deposits. Many here had converted the sale of their land and properties. This grouping placed these deposits with GKCC for the purpose of marriage expenses, dowry of their children, financing of overseas schooling and as cushion and protection during these days of political and economic uncertainty. To maintain the quality of their life now threatened by inflation and other negatives in a society under stress – is quite a natural wish (3) those with deposits of Rs.25 million and under who have converted their savings, remittances from children abroad to supplement their income to insure a reasonable way of life against the spiralling cost of living, fuel costs etc., (4) those with investments from Rs.10 million and under (5) those with Rs.3 million and under – most of which pension, EPF funds and others from those retired as protection “against rainy days” as it were. In many cases children abroad, brought up by their parents after much belt-tightening, were building resources to meet the living, medical and other expenses of ageing parents. This also includes visits of these parents to see the children and their grand-children living abroad. Some of these children building up these resources for their parents here out of gratitude were themselves leading a hand-to-mouth existence in their new fond homes of domicile. Most are believed unable to finance the cost of coming with their families here to see the parents – even in intervals of a few years because of the high cost of air travel (5) Those with deposits of Rs.200,000 – Rs.500,000 placed to secure monthly or quarterly interest to meet home running expenditure. The above break-up of fund amounts and the purposes for which they went to GKCC are not absolute but, I believe, can be presumed to represent the general average.
Within the larger investors are some religious figures as well. While the Catholic and Christian priests have said they are the accounted funds of the church, some of the large deposits of Buddhist priests from a religion that abhors the material world and its many temptations has raised many eyes – even those of pious Buddhists. Ministers, MPs and other politicos have all rushed into inflate the ego of the childless Mr. Lalith Kotelawala who had dreamed of converting all of Colombo into a Ceylinco fantasy. He seems to have succeeded in that part of Kollupitiya between the Police Station and St. Thomas’s Prep School – almost now entirely Ceylinco property. While Sakvithi Ranasinghe is of rural plebian and nondescript origins, with little education and a confirmed Casino gambler Lalith Kotelawala came from a different world altogether. Kotelawala was pure and simple subject to a combination of narcissm and megolomania. A senior Central Bank official – on a cursory look at some of the Balance Sheets of the Kotelawala empire – said “the man did not know the basics of accounting” and his hundreds of ventures were a case of biting more than what one can chew. He could not have conspired to rob people of their hard-earned money and savings. The man simply wanted to see the Ceylinco name – here, there and everywhere in his own ego-trip. He still has time and room to win the goodwill of the people and thereby regain the integrity of the family name.
His Deputy Kavan Perera seems to have assured the Depositors the value of the Ceylinco properties can meet the cumulative deposits and even providea reasonable interest. If Mr. Perera can honour his assurance given at the gates of his Dehiwala home early relief can be assured to all depositors soon, he would undo a lot of harm that befell the thousands of depositors, some of whom flocked to his home in desperation.
It appears except for those in category (1) the other depositors did not have in mind action to defraud the state of tax revenue. In many cases, as the main Depositors Association officials inform they were trying to cushion themselves from inflation and being defrauded by the State, whose mismanagement of the economy was, many argue, caused galloping inflation and other deficiencies in the economy. This is one aspect the Courts and the Tax authorities have to take into consideration.
It is also understood some in category one (1) with political and muscle power have managed to acquire some of the Kotelawala-owned land and properties via strong-arm tactics – in some cases far in excess of their deposit values. The case of a former well-known Mudalali – and now multi-billionaire with a wide commercial empire – is simply greed and intent to defraud State revenue . And so a former Test Cricketer whose name was mentioned. Both matters were reported in the media.
The GKCC Depositors Association lead by Anusha Emmert have been working hard to seek relief and justice for all of them. Tragically, at least two depositors commited suicide during December 2008 period when GKCC closed their offices. The press reported 18 have so far died consequent to falling ill in shock of having lost their only source of revenue. Many well-known and respectable upper and middle class families have been rendered virtually penniless. These depositors have held several demonstrations in various parts of Colombo to draw government’s attention to their sad plight. It was pathetic to very see old couples from upper middle class families in the hot sun and in tears pleading they have lost all their sources of income and are now virtually in the street. Encouragingly for these unfortunate people both the government and the judicial process have come to their rescue. The Governor of the Central Bank has moved fast to appoint a Panel of Chartered Accountants to assess the value of properties and work out a methodology by which funds can be given back to the depositors. It is understood all those who had deposits of Rs.200,000 and under have been paid off. Meanwhile, depositors fear the government might take a long time to settle their dues in the light of a formulae put forward by an Indian financial institution in a separate case where settlement has been proposed in instalments going upto 10 years. As to GKCC Depositors, a large number of them are old and unlikely to survive the next 2-3 years.
When a disreputed and notorious politico – with established close connections to the government -announced a few months ago he was going to the aid of the depositors, there was understandable alarm amongst the depositors. The man was rumoured to have approached Lalith Kotelawala in January 2009 and offered to settle the matter “privately” with the support of “the very top” It was at this time the media was fed information that the actual value of all Kotelawala properties – subject to encumberences, was in the region of Rs.12 billion – much less than the unpaid funds of the depositors. But Kotelawala has his connections as well and did not need the mediation of a man with hardly any credibility. There was also a fear other sources claiming close proximity to the high and mighty were moving into buy Kotelawala high-value properties at give away prices. One instance was the high-value Ceylinco ENT Hospital at Rajagiriya – valued by a private impeccable source in excess of Rs.2 billion. There was almost a sale of this Hospital at a very low Rs.550million to a local party with political influences. Shocingly, even this money was to come from a State Bank – and not from the funds of the individual negotiating. In an economy where the rupee is depreciating day by day the value of the Kotelawala properties certainly are appreciating. Reliable sources in the finance market inform the combined values as at date of Celestial Towers (where a world-class American bank and upper end hotel chain were finalizing plans to come in) Trillium Residencies, Pioneer Towers (Fort) the ENT Hospital at Rajagiriya – are around Rs.50 billion – sufficient to pay depositors their funds in full plus a reasonable interest for the period from December 2008. The government and Courts appear to be, rightly, in sympathy with these suffering depositors. It is understood of the nearly 8,000 whose papers were in order have been paid a sum of Rs.100,000 already. This is hardly anything most depositors say since many of them have borrowed from friends and neighbours since 2009 simply to exist. The Supreme Court early this month – on a Report-statistics provided by the Panel of Chartered Accountants – ordered the 2nd payment of Rs.200,000 to all depositors. Enquiries made from with several depositors reveal this has not been received yet.
Depositors plead they are little concerned with the sinister games within various sources trying to cash in their misery and say they are aware the value of Kotelawala assets are sufficient to meet what is due to them. They want President Rajapakse and his government and the Courts to give them early relief and justice. They also do not wish to be penalised for taking the side of General Sarath Fonseka in the Presidential Elections since their decision was purely to save their members. The Geneal had promised to settle the matter “immediately” after he assumes office.
Admittedly, this is only about GKCC Depositors – the story of some of whom I know personally. There are many other depositors who have lost their had-earned savings with other financial institutions – which also needs to be highlighted and those concerned provided with early relief. One wonders why the guilt-edged State institutions – like the National Savings Bank and the two State Banks have not structured their interest rates to attract the large funds to gain the nearly Rs.150 billion in the hands of
Fly-by-night financial institutions. Singapore successfully came out with a programme during the mid-1960s and utilized the funds for many development projects while the depositors interests were protected.
By: bonface on August 22, 2010
at 1:36 pm
Next Tranche of Rs. 200,000.00 will be paid to GK Depositors from 13th September 2010 according to Dushanth Hapugoda !!!
Our greatfull thnx to this Lady for her close rapport with H. E . Anusha Emmert is All fart No shit Woman !!!
By: Sinhaya on September 9, 2010
at 1:58 pm
Child charged with stealing Rs. 5.00 Allowed bail in Rs, 100,000
September 10, 2010, 9:46 pm
Wijayasiri Vidyasekera,
Kalutara Corr.
A 13-year-old girl, produced before Kaluatara Additional Magistrate Namal Perera, by the Thebuwana Police, for allegedly stealing five rupees, was enlarged on Rs 100,000 personal bail.
The Magistrate directed the Probation Officer to submit a report on her to the Court and ordered that the suspect be handed over to her mother.
IP Nalaka Nuwansiri told Court that the suspect was arrested on a complaint made by Ramya Chandralatha Ranmalgoda of Yatawara North, Thebuwana.
The complainant had told Police that she was running a small boutique near her home. When she went home from the boutique, she had noticed the suspect hiding under a mattress and on questioning the girl had said that she had stolen five rupees.
IP Jayasinghe and WPS 4731 Priyanthi arrested the suspect, Court was further informed. Suspect had taken the money which was on the window sill. The other cash and jewellery had been intact, the complainant had said.
The case was postponed for September 30.
By: nadunhewge on September 11, 2010
at 1:36 pm
I remember a time when a guy was arrested for robbing a coconut and he was beaten mercilessly by the police. I wonder whether the law in our country allows people to rob billions with no questions asked and nearly beaten to death for a fellow who may rob something for his hunger??
By: Insu on September 12, 2010
at 7:35 am
There is a famous saying about greed…..pigs get slaughtered…thats what I can say about Ceylinco Depositors……. Of course Central Bankers are incompetent….then what do u expect in Sri Lanka
By: Dharmapala on September 12, 2010
at 9:48 am
Dear Dharma Pala
We are no pigs!! This was not secret company, LK sent us letters saying this was a recognised organisation, Inland Revenue was also aware of this as was the Central Bank. How can u call us PIGS, it was an investment decision. Are all depositors who put there money in failed companies PIGS??? Bank was offering 19% GK 22.5% was I being a PIG?? If this happened to your parents, brother or sister would you call them PIGS?? The Sunday Leader called us Swindlers, you call us PIGS!! So who is Lalith K and Khavan!!!???
Come see how our families are suffering, some of us are ill and some killed them selfs, children have lost their education, old people their medication, some of us are begging on the streets….. YOUR COMMENTS DO NOT BE FIT YOUR NAME!!!! SHAME SHAME, WE CURSE PEOPLE LIKE YOU, THE GODS WILL PUNISH THOSE WHO THROW INSULTS ON THOSE WHO ARE WEAK!!
By: bonface on September 16, 2010
at 12:29 pm
That ……….. Dharmapala must be shoot. I will do it. I will trace hm. Bloody ……….. How can he involve with this? Our hard earned money we deposited, not that …….’s money.
(comments edited)
By: Nobert on September 16, 2010
at 9:32 pm
Yes Shame, but this what Lalith K’s people are using now to turn the opinion against depositors. I think this Dharmapala is a CISCO employee… all goons!
By: nadunhewge on September 17, 2010
at 9:53 am
The Eye Hospital sale has not happened? Why who blocked it? What are the issues? Can Anusha/Dushani (in alphabaticle order) please give us an update?
By: Cora on September 20, 2010
at 12:08 pm
Eye Hospital Sale has not happened bcos the investor Ho Soo Fong has failed to supply the Bank Guarantee
of US $ 100,000.00 for his offer of US $ 12.3 million
Investor himself is a crook according to Google when applied in Google Search !!!
Ceylinco Insurance is about to fall as well as Ajith Gunawardane is about to be arrested with Sanka Wijesinghe !!!
By: Mahinda on September 21, 2010
at 1:22 pm
My God!
Why Ajith Gunawardena to be arrested? and please let us know who is Sanka Wijesinghe
By: Renga on September 22, 2010
at 8:25 am
Sri Lanka’s Central Bank unable to make Second Repayment to Golden Key depositors
Mon, 2010-09-27 03:54 — editor
News
By Santhush Fernando in Colombo
Colombo, 27 September, (Asiantribune.com):
The sale of the Golden Key Hospital hitherto owned by Deshamanya Lalith Kothalawela-run Ceylinco Group to Ho Soo Fong of Singapore as informed to the Supreme Court by Central Bank of Sri Lanka (CBSL) will not materialize as Fong has been found to be an embezzler, forcing the banking watchdog to suspend the second phase of repayment.
Golden Key Depositors Society (GKDS) President Anusha Emmert is claiming that the Central Bank had failed to secure a proper buyer for the Golden Key Hospital at Rajagiriya, in order to implement the second phase of repayment for depositors of the collapsed Golden Key Credit Card Company (GKCCC), which has now come to virtual standstill.
Tagline-Sale of Golden Key hospital stalled; Depositors languish for nearly two years
Emmert told the Asian Tribune, that the purchase of the Hospital by Ho Soo Fong of Singapore who was presented to Court by Central Bank as a ‘bona-fide buyer’ is not in fact ‘bona fide’ and has been found to be a habitual embezzler operating in Singapore.
“Fong is a renowned thief and fraudster in Singapore. Almost twelve months have passed since Lalith Kothalawela and his directors were released and two years since Golden Key collapsed but there’s no sight of proper repayment by Central Bank. It’s a daylight robbery of Rs. 26bn but no one seems bothered now,” Emmert said.
Meanwhile Vice President of Golden Key Depositors Committee, Dushanthi Hapugoda opined that if shares were issued in lieu of deposits and with strategic ventures under GK umbrella being run by a good management, the depositors would have a better chance of repayment.
“For instance, although valued at a meager Rs. 500mn we observed that Golden Key Hospital is worth over Rs. 4bn. Furthermore there was much potential for it to be converted into a general hospital. It is grossly undervalued. In such a scenario depositors have the option of selling shares or holding on to them for realization later on,” Haougoda said.
On August 6, Supreme Court approved the payment plan presented by Committee of Chartered Accountants (CCA) headed by Prof. Lakshman R. Watawala.
Earlier the Committee decided to pay 75 percent of the deposit outstanding or Rs. 200,000 whichever is lower after deducting the first stage payment. While Rs. 770 mn was needed for the second phase CCA hoped to raise the funds by disposing GK assets such as the Golden Key Eye Hospital, Ceylinco House, Sea Sands Hotel etc.
On August 6, the Supreme Court approved the sale of the Golden Key Eye Hospital provided that the Singaporean buyer- Ho Soo Fong gave a bank guarantee of US $ 100,000 by August 16 and paid the full amount of US$ 12.1739 mn into the Golden Key dedicated account. Fong was to be issued 500,000 shares of GK, at Rs. 10 each.
However GK’s creditors- DFCC Bank and Peoples’ Leasing were to be paid Rs. 96.4mn and Rs. 43.4mn respectively, while Central Finance was to be paid the capital sum after being calculated.
According to the some sources, although Golden Key Group had an asset base of Rs.13bn at the time of the collapse, it had dwindled to Rs.2bn, as interested parties had transferred assets without the Central Bank being aware of it.
However with the issuance of shares the depositors now have the relief of not having GK assets sold under their right value.
“Still the old gang of robbers is still at the helm (of Ceylinco companies). Are there no other educated persons in the country?” Emmert queried.
- Asian Tribune -
By: Cora on September 27, 2010
at 11:18 am
On Mon, Sep 27, 2010 at 4:53 PM, wrote:
WE SALUTE MS.ANUSHA EMMERT, THE PRESIDENT OF GOLDEN KEY DEPOSITORS SOCIETY, BEING AWARDED THE TITLE “SAMA SRI DESHAMANYA”. WE WISH HER EVERY SUCCESS & LONG LIFE. “LONG LIVE ANUSHA EMMERT. . !” -secretary chiran dassanayaka and the committee.
WHAT HAS SHE ACHIVED? AND WHO GAVE THIS?
By: Cora on September 27, 2010
at 6:35 pm
CID today recovered Jewelleries worth over Rs.60 million undeclared by Lalith Kotalawela in a bank vault in Colombo.
By: Reporter on September 27, 2010
at 8:57 pm
Ok, So what has Anusha and Chiran have to say about the situation? Will LK be back in Jail for not declaring the vault?
Dushani and team, what progress have you got?
Can not the two of you work together?
Please we need response
By: Bandu on September 28, 2010
at 11:25 am
Kotelawalas trusted State bank for their deposits
CID recovers Rs. 60 mn in Gold jewellery
September 28, 2010, 10:25 am
The Criminal Investigation Department on Monday recovered gold, estimated to be worth about Rs. 60 million deposited by Lalith Kotelawela and his wife, at a State-owned bank. Police spokesman Prishantha Jayakody told The Island that investigators had contacted the bank following information that the Kotelawalas maintained undeclared safe deposit vaults at banks. Another official pointed out that the police could have made the detection earlier had Kotelawela secreted the gold at a private financial institute.
The Kotelawelas are under investigation over the collapse of the Golden Key credit card company and a range of alleged fraudulent financial transactions. Mrs. Kotelawela is evading arrest.
Sources said that Kotelawela would be questioned regarding Monday’s recovery.
Sources said though he was a business tycoon who had utmost faith in the private sector he had chosen a State bank to deposit his valuables with.
By: Bandu on September 28, 2010
at 11:49 am
Ok, So what has Anusha and Chiran have to say about the situation? Will LK be back in Jail for not declaring the vault?
Dushani and team, what progress have you got?
Can not the two of you work together?
Please we need respons
By: Bandu on September 29, 2010
at 11:42 am
Glittering Gems Of The Swindler And His Lady
Treasure trove found at People’s Bank Union Place
Kotelawalas had Box since 1980s
By Faraz Shauketaly
All that glitters — packeted as evidence, Denied admittance at the Dickmans Road residence and Part of the jewellery stash
In sensational developments surrounding the “Ceylinco Financial Scam” investigators have found a treasure trove of gems and jewellery in the name of Cecille and Lalith Kotelawala, the shamed former directors of the Ceylinco Group companies.
The find was made when investigators named Sicille Kotelawala – who is still absconding police arrest – as a suspect in the F & G Group cases. A routine message to all banks and other financial institutions revealed that a safety deposit facility was being maintained in the names of Sicille and Lalith Kotelawala at People’s Bank.
Investigators made their way to the People’s Bank branch in Union Place, where they found an awesome collection of gold jewellery set with gems and diamonds of various sizes and values. A total of 39 packets of valuables were found and catalogued. Senior jewellery experts estimated that the haul of jewellery will be in the region of Rs. 60 million. It is expected that the CID will now proceed to make an application to court seeking a formal valuation. In all such cases the valuations are carried out by the National Gem and Jewellery Authority, custodians of the nation’s gemstones.
The find astonished various Ceylinco Group depositors and investors: they all wondered how this haul was not detected before this. It is thought that this particular find had temporarily escaped the net due to the fact that it was only recently that Mrs. Kotelawala had been named as a suspect in the current investigation into the F&G group companies – Real Estate & Property Development. Soon after her being named as a suspect, investigators carried out an enquiry using Mrs. Kotelawala’s name as opposed to Lalith Kotelawala’s. The identity card number issued to Mrs. Kotelawala identified this particular safety deposit box; whilst Mrs. Kotelawala was the lead name on this account, Lalith Kotelawala is the joint signatory. The deposit box facility had been taken out by the accused pair in the 1980s.
Lalith Kotelawala is out on bail and has not offered himself up for re-election on to the boards of various companies. Kotelawala who continues to be the Honorary Consul for Singapore in Sri Lanka, in spite of his involvement in one of this country’s greatest financial scams, has returned from remand prison to his former gilded life.
Living at his palatial house off Dickman’s Road, he is not doing too badly for one out on bail – and importantly one whose companies have defaulted over Rs. 26 billion from the Golden Key company. Kotelawala continues to enjoy staff from within the Ceylinco Group including security personnel; in addition he enjoys a retinue of other staff including maintenance technicians, domestic staff, drivers and personal assistants. It is almost as though he was continuing in his former lifestyle in which he used his influence to swindle various investors and depositors of their funds. Kotelawala in effect is a beneficiary of the magnitude of the fraud at his companies: the police investigation is severely hampered through the sheer numbers of those affected by the actions of the companies, of which he was at the helm. The Real Estate Company itself had claims of Rs. 3.9 billion, Property Development Rs. 4.3 billion and Golden Key Rs. 26 billion. There were more than 2,500 claimants from just two companies affected, placing a huge burden on investigative work; the time consumed just to take down statements alone, conspires to allow this investigation to be prolonged with no end in sight for the investors and depositors. But Lalith Kotelawala and his wife continue to enjoy the ill gotten gains.
The fact that Mrs. Kotelawala had amassed jewellery in this deposit alone of an estimated Rs 60 million – give or take Rs. 10 million – speaks volumes of the access these two had to money and indeed influence. In the process of making themselves part of Sri Lanka’s super rich, the Kotelawalas displayed reckless disregard to the legitimate expectations of their customers, investors and depositors. Some say that the Kotelawalas have been marginalised: it is difficult to actually comprehend that, when Kotelawala is still enjoying the perks of being the Consul for Singapore, he continues to have use of the Deshamanya title (in spite of complaints to Lalith Weeratunga, the Presidential Secretary) and continues to access the finer things in life – all this with no apparent means or income.
His wife, meanwhile, continues to evade the clutches of the Sri Lankan police which even a world renowned terrorist like “KP” was unable to do. The Sunday Leader attempted to interview Lalith Kotelawala and called on his residence a number of times only to be finally turned away with the advise that we seek an appointment initially through his “Secretary” “Shayama” on 0718995221. All calls to this number went unanswered. A close aide “Anthony” stopped answering his telephone after we announced that we were from The Sunday Leader. Clearly it was not “good to talk.”
Statement By Lalith Kotelawala Regarding “Kotelawala Vault”
It is with shock and dismay I learnt about the opening of a vault at People’s Bank on 27th September 2010
I wish to clarify the following:
I have declared this vault to the authorities in my Declaration.
People’s Bank established a branch in Ceylinco House when Ceylinco House was opened in 1963
I opened an account at this branch on 28th November 1963.
Sometime after this date the Bank offered me a vault which was taken up in the joint names of Lalith and Sicille Kotelawala.
On 31st January 1996, Ceylinco House was destroyed by the Central Bank bomb blast
People’s Bank then moved its operations and vaults to its Head Office and the Slave Island branch.
I wish to emphatically state that at no time have I been to this branch nor opened the said vault. The Bank records should indeed confirm this.
I am therefore alarmed that the vault should have been opened without prior notification to either me or my lawyers, which I believe is the mandatory requirement by law.
It also puzzles me as to how it was possible to open the vault solely by the Bank.
It is evident therefore, the Bank at anytime could open a vault.
It is obvious that anything could be put in or taken out without the owner being physically present.
The other matter that is strange is that all media were invited to be present when the vault was opened and gems and jewellery valued at a massive sum of Rs. 65 million was discovered inside.
Normally valuation of gems and jewellery by a competent gem authority would take seven days or more.
By: papilon on October 3, 2010
at 11:56 am
Anusha Emmert and her husband has sold GK depositors to Governor of CBSL and LK by agreeing to a Share Issue.
She has been paid Rs. 50 million by by LK for agreeing to this deal !!!
She is a worse SLUT than Dushanthi Hapugoda !!!
By: Basil on October 6, 2010
at 4:42 pm
Yes who gave that lady the Deshamanya title?? And for what?? I got to know it was that Nilame fellow. Now she ruined so many assets of LK that had high value by her actions!! She went to politics by using our cause.
Ms Hapugoda’s crowd made plans and formulated the hold re payment plan, now Deshamanya Emmert wants to take credit.
By: nilame on October 9, 2010
at 11:45 am
yap i am totally agreed with u nilame, that blady bich emmert has distroyd our money n progress, she dosnt know anything n just try to fight with other gan. she has collected our hardest money n enjoy with her gang even that guy also not her husband just only another keeper, they all destroyed our money and they sold gk depositors to.
By: ranga herath on October 9, 2010
at 12:16 pm
Dear depositors please read today the nation news paper (bottom line section) regarding our deshamanya anusha emmerts, ha ha ha what a bladdy jork with this worse …..(edited)
By: amal de silva on October 10, 2010
at 7:12 pm
Dear depositors please read today the nation news paper (bottom line section) regarding our deshamanya anusha emmerts, ha ha ha
By: amal de silva on October 10, 2010
at 7:14 pm
what a blady jork with this …….. (edited)
By: padma on October 10, 2010
at 7:15 pm
Sri Lanka: Depositors’ society of collapsed Golden Key finance company submits alternative Repayment Plan : Reject equity conversion plan formulated by Central Bank
Mon, 2010-10-11 05:40 — editor
News
By Santhush Fernando in Colombo
Colombo, 11 October, (Asiantribune.com):
Depositors group of the collapsed Golden Key Credit Card Company (GKCCC) of the Ceylinco conglomerate have submitted this week, an alternative repayment plan to Sri Lanka’s Central Bank and have rejected an equity conversion plan formulated by the banking watchdog.
“Central Bank wants to issue shares and wash its hands of the mess they have created. We met CBSL Governor Ajith Nivad Cabraal this Wednesday (October 6) and handed over the alternative repayment plan. If the CBSL is really serious in paying off the depositors they should implement this,” Golden Key Depositors Society (GKDS) President Sama Sri Deshamanya Anusha Emmert told the Asian Tribune.
Emmert scoffed at the share conversion plan effort, initiated by Governor Cabraal and another depositor group.
“If they want to have a share issue they can do so but CBSL cannot wash its hands off. Since they are issuing shares worth Rs. 2 bn. only, they must give a guarantee to pay the remaining Rs. 23bn. If the Central Bank cannot, Kothalawala himself should give us a guarantee. We deposited with Ceylinco as Kothalawala said all his companies were under one umbrella. So where’s that ‘umbrella’ now? Ceylinco Insurance and The Finance Company must also contribute to this (payment plan),”
Equity conversion plan
Meanwhile another depositors union had already consented a move by the Central Bank and the Supreme Court-appointed Watawala Committee to put in place a equity conversion plan, whereby liabilities and assets of Golden Key Credit Card Company (GKCCC) will be transferred into a newly formed holding company. The new company, under an independent management would be run as a viable business venture.
“We wrote to President Mahinda Rajapaksa raising grievances of the Golden Key depositors and he has been generous enough to order the Central Bank of Sri Lanka to immediately look into this,” Vice President of Golden Key Depositors Committee, Dushanthi Hapugoda said.
“After a meeting with my committee and CBSL Governor Ajith Nivad Cabraal and the Watawala Committee it was decided to stop forthwith the sale of any Golden Key assets. It was also decided to form a new company and issue shares of that company to depositors on pro-rata basis, proportionate to amount outstanding in respective of each depositor,”
Board of Directors would be constituted by nomination of the country’s President and Central Bank which will include members of Committee of Chartered Accountants (CCA) headed by Prof. Lakshman R. Watawala and even depositors, she added.
Assets grossly undervalued
Hapugoda and her committee are hopeful that with strategic ventures under GK umbrella being run by a good management, the depositors would have a better chance of getting a greater amount of their defaulted investments reimbursed, which would not be feasible if GK assets were sold.
“For instance, although valued at a meager Rs. 500mn, we observed that Golden Key Hospital is worth over Rs. 4bn. It is grossly undervalued. Furthermore during a recent visit there we saw that there is much potential to convert it into a general hospital. In such a scenario depositors would have the option of selling shares or holding on to them for realization later on,”
Earlier the CBSL obtained approval of Supreme Court to pay 75 percent of the deposit outstanding or Rs. 200,000 whichever is lower after deducting the first phase payment. While Rs. 770 mn was needed for the second phase, CCA hoped to raise funds by disposing GK assets such as the Golden Key Eye Hospital, Ceylinco House, Sea Sands Hotel etc.
However GK’s creditors- DFCC Bank and Peoples’ Leasing were to be paid Rs. 96.4mn and Rs. 43.4mn respectively, while Central Finance was to be paid the capital sum after being calculated by CCA.
CBSL presents Singaporean fraudster as buyer
On August 6, the Supreme Court approved the sale of the Golden Key Eye Hospital provided that the Singaporean buyer- Ho Soo Fong gave a bank guarantee of US $ 100,000 by August 16 and paid the full amount of US$ 12.1739 mn into the Golden Key dedicated account, by August 20. Fong was to be issued 500,000 shares of GK, at Rs. 10 each.
Emmert chastisised the Central Bank for presenting to upreme Court a fraudster as a buyer to purchase the Hospital.
“Ho Soo Fong of Singapore who was presented to Court by Central Bank as a ‘bona-fide buyer’ is not in fact ‘bona fide’ at all and has been found to be a habitual embezzler operating in Singapore,”
“Fong is a renowned thief and fraudster in Singapore. To clear the mess created by one theif, the Central Bank is bringing another,”
“Almost twelve months have passed since Lalith Kothalawela and his directors were released and two years since Golden Key collapsed but there’s no sight of a proper repayment by Central Bank. It’s a daylight robbery of Rs. 26bn but no one seems to care,” Emmert said.
According to the some sources, although Golden Key Group had an asset base of Rs.13bn at the time of its collapse, it had dwindled to a mere Rs.2bn, now as interested parties had transferred assets without the Central Bank being aware of it. However with the issuance of shares, the depositors now have the relief of not having GK assets sold under their right value, some quarters believe.
GKDS has convened a General Meeting on October 17, at S de S Jayasingha Hall in Dehiwala at 1.30PM in order to make its membership aware of the alternative repayment plan.
- Asian Tribune -
By: banda on October 11, 2010
at 11:13 am
Can some one put the “Bottom Line” article here please…
By: panal on October 11, 2010
at 11:14 am
there is no bottom line article like that !!!
By: Basil on October 12, 2010
at 7:12 am
just read sunday nation paper bottom line section just gosip abt deshamanya
By: padma on October 12, 2010
at 10:24 am
Here it is ………
Deshamanya vs Deshamanya
Recent advertisements said a lady from down south beach of Corals got a ‘Deshamanya’ title from a politician who was fighting for a land dispute with bank with a heart while Deutsche married woman got the title for the services done running in front of former Saillinco Deshamanya’s house and subsidiaries asking for her money dumped in Golden Cash Cow.
By: panal on October 12, 2010
at 11:35 am
“Anusha” She was married to a Austrian Gentleman. I know him personally. Don’t blame her unnecessary. I know she lost more than 10 Min. She is originally from Galle. Some times she can’t remember me. Anyhow I am with her. If we don’t have any solution we have to take more serious action against That old bloody …………..(edited)
By: Nobert on October 12, 2010
at 9:49 pm
Dear Member, ESPECIAL GENERAL MEETING will be held on 17th OCT 2010 (Sunday), @ S De S Jayasinghe Hall, Dehiwala, (Time 1.30 PM). REALITY OF THE SOCALLED RE-PAYMENT PLAN, Meeting with H.E. THE PRESIDENT MAHINDA RAJAPAKSA & the views of the CBSL officers & Watawala Committee, will be discussed in the MEETING. Your presence is a MUST. SEE U ON SUNDAY THE 17th. President SAMA SRI DESHAMANYA Anusha Emmert & the COMMITTEE OF GKDS. 0777909800, 0779405364, 0777466072
By: panal on October 14, 2010
at 6:54 pm
SAMA SRI DESHAMANYA!!!!!!!!!!!!!!!!!!!??????
By: nadunhewge on October 15, 2010
at 12:38 pm
Protecting directors from personal legal liability
Recently an insurance company announced a policy to protect directors from personal legal liability that may arise against directors under the Companies Act of 2007. The company said that in Sri Lanka, just like overseas, there is an increasing trend of claims being filed against corporate executives exposing them to potential personal liabilities for violations of laws and regulations and this is mainly due to the collapse of some major financial institutions recently.
Some well known business leaders and top corporate executives, it was reported, had lost virtually everything they had earned during their life time due to this clause in the law. These provisions in the Companies Act are for the specific purpose of holding directors accountable for their actions particularly in the case of companies that take deposits from the public. The Ceylinco collapse was a clear example of how some directors lived it off (luxuriously) while others decamped with the money – never to be seen again. Depositors who dumped their life savings (how ironical when directors are protected by an insurance cover to protect their properties) have lost everything and are desperately ‘Waiting for Godot’ to deliver the goods.
It would now be easy for directors to take an insurance policy, run down the company and still be able to safeguard their properties. Is this the kind of governance, accountability and transparency that the private sector is talking of? Very soon an insurance company would have to come up with a policy to protect depositors against any possible loss of their funds in a finance company or bank
By: panal on October 17, 2010
at 12:40 pm
Hotel Sale
17 Oct, 2010 17:45:30
Sri Lanka Golden Key customers may get cash from hotel sale: report
Oct 19, 2010 (LBO) – Depositors of Sri Lanka’s failed Golden Key Credit Card Company, an unregulated finance firm, may get some cash when a part of the money from a hotel connected to the firm is sold, a media report said.
The Sunday Island newspaper said 20 percent of the proceeds of the sale of Ceysands Hotel in Bentota in Sri Lanka South western coast will be used to repay depositors, citing an unnamed source.
The newspaper said if the hotel is sold for about billion rupees, Golden Key customer will get 200 million rupees. But to pay 100,000 rupees to each customer about 800 million rupees in needed, the report said.
The report said other real estate, a hospital, and three floors of Ceylinco House, may be put into an asset management company.
President Mahinda Rajapaksa is due to meet two Golden Key depositor associations on Monday, the report said.
By: panal on October 17, 2010
at 6:18 pm
WHAT NEWS OF PRESIDENTS MEETING??
By: panal on October 18, 2010
at 2:06 pm
This is fron Derana.lk
Deshmaniya Anusha is to be seen on this photo….
A decision has been reached to set up a new company which is to acquire the assets of the Golden Key Credit Card Company and distribute its shares among those who had lost their deposits when the company went bankrupt.
This decision had been arrived at when President Mahinda Rajapaksa met members of the Golden Key Depositors Association at Temple Trees today (Oct. 18).
The company is to be named GKCG Special Purpose Vehicle (Pvt) Ltd (GKCGSPV) and will offer a proportionate number of shares according to the deposits of each person at the former company. The new company is to engage in commercial ventures while being supervised by a board of directors and an advisory panel appointed from among the depositors of the now defunct Golden Key Credit Card Company.
The Central Bank of Sri Lanka is to be the facilitator of this venture which aims to solve the numerous problems faced by the depositors of the Golden Key Credit Card Company.
Legal opinion is to be sought regarding the formation of this new company.
President Mahinda Rajapaksa,Secretary to the President Lalith Weeratunga and Central Bank Governor Ajith Nivarad Cabraal were also present during the discussion. – (Pic by Sudath Silva)
Viewer Comments
By: panal on October 18, 2010
at 6:35 pm
Thank God for President, taking interest on this subject!! Hope Lalith and Scicilea do not get away lightly!!
THANK YOU SIR
By: panal on October 18, 2010
at 6:36 pm
LK has sold CISCO, what happned to the money? The value of assets to the company is only 2.2bn that is only 13.5% of stolen money is coming back!! So he has all the billions balance left with his proxies running Ceylinco Ins/ and forigin entities in Dubai , Belgium, Australia, UK ,US.India,Cypres…….. the list goes on and on………….. we are poor he is rich!!
Khavan is still having his assets minus the house and car!! Ajith Renga all free!!
By: adobo on October 18, 2010
at 8:36 pm
Anusha Emmert has struck a deal with LK and has got Rs.200 million for her self and GK society Executive committee members .
This is the greatest betrayal after Kuveni betrayed her people to Prince Wijaya !!!
By: Basil on October 20, 2010
at 5:25 am
Golden Key customers demanding restitution
Golden Key customers demanding restitution
By Abdul H. Azeez
Golden Key depositors have been promised another solution at long last. Essentially this constitutes the Central Bank relieving its responsibility to provide all the monies due to the investors. A new company will be established and all the assets seized from Golden Key are to be transferred to it.
The investors would then be responsible for running it profitably to recover the rest of the money owed to them. The majority of the depositors have agreed to this but it is still a long road to recover the losses suffered at the hands of one of the most epic scams in Sri Lankan business history.
In 2009, one of the country’s largest financial companies and a member of the supposedly unshakable Ceylinco Group collapsed virtually overnight in the face of a ‘bank run’ of sorts where investors clamored for their money. Golden Key had for many years been offering high rates of interest very much above the market rate and as such had attracted many investors, some very prominent and well known, as revealed in The Sunday Leader at the time.
Ponzi Scheme
Any financial organisation, when pressed by a large percentage of its investors for their money back, would face collapse. These occurrences were frequent during the Global Recession where former financial fortresses such as Lehmann Brothers and Northern Rock crumbled. But invariably, these organisations would always be involved in some form of dubious financing or investment mechanism that contributed to their instability and eventual collapse.
In Golden Key’s case, their ‘investment’ activities were far more attributable to criminal instinct than bad management; they were essentially operating on a ‘rolling’ basis, as most Ponzi schemes do. Golden Key would use monies of new investors to pay interest to investors who had invested earlier. The rest of the funds were siphoned off by corrupt directors into personal bank accounts. A Ponzi scheme usually collapses under its own weight, and GK was no different. By the time it collapsed, over 9000 investors had lost Rs. 26 billion.
Central Bank failure
Ponzi schemes are usually detected by the authorities who usually step in before they collapse to take charge of things. As more investors get involved the likelihood that the scam will come to the attention of the Central Bank increases. Indeed it is one of the primary duties of the CB to keep an eye on the unofficial financial market to maintain financial system stability. But in this case, as well as in the case of Sakvithi, the Central Bank of Sri Lanka failed its people miserably.
After long months of fighting and strenuous court cases, the Depositors Association met with the President last week to formulate a solution. It was decided that the assets of Golden Key will be transferred to a special vehicle formulated under the Companies Act. The Central Bank was to verse the transferring of the assets and the legal issues involved. This seemed to meet with the agreement of most of the investors but some salient issues still remain.
Special Vehicle needs help
The Chief Operating Officer, Golden Key Sector Area of the Central Bank J.P.R. Karunaratne told The Sunday Leader that ‘the company in question has already been established. Now it is only a matter of transferring it into the names of the depositors. Any assets already seized and seized in the future will be transferred into it as well. From then onwards, it will be up to the depositors to manage it and turn over a profit.’
However the President of one of the Depositors Associations, of which there are two, Dushyanthi Hapugoda said that ‘if desperate investors take over the running of the company now no one will be willing to invest in it. We will need at least one year to perform well and then consider entering into the stock market. This is why we have appealed to the President and the Governor of the Central Bank to help us form a board of prominent businessmen to add credibility and efficiency to the organisation. Only then will we be able to make any serious headway.’
Out of the total liability of Rs. 26 billion, the Central Bank has only succeeded in paying back a paltry Rs. 790 million in the form of a payment of Rs. 100,000 to each investor. Hapugoda states that with the new company each investor will get only 15% worth of shares or cash of the total amount due to him, making it even more important that the company has level headed managers to turn itself a profit.
Fraud beyond the grave
It appears that Golden Key, now dead, is still engaged in actively defrauding its one time clients. ‘We have only received Rs. 2.2 billion of assets out of the Rs. 13 billion that were initially produced by Golden Key,’ said Hapugoda adding that many of the assets that had been turned over were exorbitantly overvalued. ‘A teak farm in Puttalam was valued at Rs 400 million but when we went there it was apparent that the current value of the asset was only a little more than a lakh. Other assets were embroiled in court cases and some were not even owned by Golden Key.
She added that investors were angry at the fraudsters who were now out on bail and driving luxury vehicles to court appearances and on visits to the CID. ‘They shamelessly flaunt their wealth to the hapless investors who travel by bus and who have sold their houses and land to invest with them,’ said an angry Hapugoda who said that the depositors would demand the seizure of all the personal assets of the Golden Key directors concerned at the next court date.
By: nadunhewge on October 24, 2010
at 1:23 am
On criminal misappropriation of funds, fraud and breach of trust charges
Criminal indictments to be filed against Kotelawalas and fellow Golden Key directors – Attorney General
October 23, 2010, 7:19 pm
by Suresh Perera
Criminal indictments will be filed shortly against Ceylinco Chairman Lalith Kotelawala, his wife Sicille and other directors in connection with the 26 billion rupee Golden Key scam, Attorney General Mohan Peiris, PC, said.
Criminal indictments will be filed shortly against Ceylinco Chairman Lalith Kotelawala, his wife Sicille and other directors in connection with the 26 billion rupee Golden Key scam, Attorney General Mohan Peiris, PC, said.
“It has been a long investigation into this fraud”, he told The Sunday Island. “The Chairman and directors of Golden Key will face criminal charges’.
The auditing process also needs to be complete before moving in to indict them, Peiris noted. “This will be done soon”.
Asked about the inordinate delay in charging Kotelawala and the other directors, which has drawn flak from depositors as Golden Key collapsed almost two years ago, the Attorney General said the investigation and the audit into this scandal were long-drawn and time-consuming.
“It should happen soon”, he said, referring to the filing of criminal charges in this case, described as the biggest white collar crime in Sri Lanka.
The Attorney General’s Department is expected to indict Kotelawala and the other directors on charges of criminal misappropriation of funds, fraud and breach of trust, a senior official said.
With Kotelawala as Chairman, Sicille Kotelawala, Kavan Perera (CEO), Padmini Karunanayake, Saradha Sumanasekera, Daniel
Jegasothy, Bandula Ranaweera, Neranjan Fernando, Suramya Karunaratne and Nandani Kumar, served as directors of Golden Key, which crashed in December 2008.
Kotelawala and the other directors, except Sicille, are now on bail granted by the Supreme Court after spending months on remand. The whereabouts of Sicille, who left the country before she could be arrested, are still unknown.
Indications of the imminent criminal charges come amidst presidential intervention, which has offered a ray of hope to long-suffering depositors. This follows ongoing efforts to float a consolidated company to manage the assets of Golden Key and issue shares to depositors.
This proposal, which was discussed at length during the meeting depositor’ representatives held with President Mahinda Rajapakse, is expected to be placed before the Supreme Court for the final go-ahead when the Fundamental Rights (FR) plea filed by a group of depositors is taken up for hearing again on October 27.
This move has been approved in principle as the “best option” under the present circumstances as depositors continue to struggle sans their capital or interest for the past 22 months.
The directors were granted bail almost one year ago, but not a single rupee has been injected into the Trust set up to repay depositors since their release. Even the funds for the only repayment done so far – a maximum of 100,000 rupees per depositors came from the bank accounts of Kotelawala and his wife seized on a Supreme Court directive, the official explained.
As a result, the three-member Committee of Chartered Accountants has still been unable to pay the second round of another maximum of 100,000 rupees in terms of the Supreme Court order due to inadequacy of liquid cash, he asserted.
“We are desperately in need of cash but problems have been compounded by the sudden loss of interest amongst the (Golden Key) directors to help ongoing efforts to settle depositors”, he claimed. “It’s a big battle to raise even the 850 million rupees required for the second round repayments”.
“Under the law, the assets of the directors are also liable but nothing tangible has been done by them to help the process initiated by the Committee to grant relief to distraught depositors”, says Dushanthi Hapugoda, President, GKCC All Depositors’ Association.
She said the directors were granted bail on condition that they support and cooperate with ongoing efforts but they continue to hang on to their assets and live in the lap of luxury. “One director is known to own 24 luxury houses in Colombo”.
“All the directors knew Golden Key was heading for a crash and it was an open secret the company maintained two sets of books”, she said. “Now, they are trying to duck responsibility by side-stepping the issue”.
Ms. Hapugoda said the question of filing indictments against the directors was also raised during the meeting with President Rajapaksa. “We wanted the process expedited”.
“What needs to be done on a priority basis is to bring all Golden Key assets, properties and real estate under one umbrella for prudent management under the proposed company”, she pointed out. “There are assets scattered all over – from the teak plantation at Puttalam to real estate in Colombo and its suburbs”.
She said that moveable assets of the company and some of its subsidiaries, which remain shut, are rotting away. “This is a shame when every cent is valuable for the repayment process to go ahead”.
Meanwhile, the proposed sale of Ceysands Hotel, for which the highest bid of around one billion rupees has been received, has been put on hold until a decision is reached on whether to dispose of the property or transfer it to the consolidated company to be formed, the official said.
“We are consulting all parties on this, including depositor’ associations, which are in favour of its sale”, he noted. “This will at least bring some money to start the second round of repayments”
By: nadunhewge on October 24, 2010
at 1:28 am
Justice finally for GK depositors
Justice, they say, if delayed is justice denied. For many months and many moons gone by, depositors of the failed Golden Key Credit Card Co popularly known as GK now after fraud and deception crept into a, once popular and credible organisation, have looked at the stars and wondered whether they would get their money back or see that justice prevails.
The latter is now on the cards with the Attorney General Mohan Peiris informing the President this week that indictments are finally ready against Lalith Kotelawala, his wife-on-the-run Sicille and other directors for fraud, deception and other criminal acts in the use of depositors’ money worth Rs 26 billion. It is said to be the biggest scam in Sri Lanka.
For nearly two years, the authorities have struggled to put a complicated and complex case together with the trail of investments made by Golden Key here and abroad in a maze of Ceylinco and non-Ceylinco companies being hard to follow. The elusive trail of Sicille Kotelawala hunted by Interpol and believed to be hiding somewhere in Singapore, Dubai or Malaysia has also dogged investigators.
During this time, a few among the over 7,000 depositors have committed suicide or died of health complications caused by the stress of losing their money while others lost their only source of income – a heavy price to pay after relying on a company that attracted deposits at high rates of interest.
The other big scammer – Sakvithi Ranasinghe – who vanished abroad later to re-surface in Sri Lanka and get nabbed by the police is thankfully now behind bars.
While this is good news for the struggling, ailing and agonising GK depositors, the other bit of news that came their way this week was not all that rosy as reported by the Presidential Secretariat.
On Monday it reported that a meeting presided over by President Mahinda Rajapaksa to discuss the Golden Key crisis and including all parties concerned including depositors had endorsed a decision to set up a new company to acquire all GK assets and offer shares in the new company to depositors.
But that’s not exactly the way the meeting went. Depositors while endorsing the formation of the new company, a Special Purpose Vehicle (SPV), were not in favour of the way it was going to be run. At the end of the meeting when disputes arose over the structure and formation, the President had reportedly told the depositors and other parties concerned to sort out the issue with the Supreme Court.
It was in mid-2009 that the Court in a directive by then Chief Justice Sarath Silva, ordered the setting of this SPV to accumulate all GK assets, sell them and repay depositors. The Central Bank was asked to come up with the modalities of the company but that took a long time since the process of ascertaining the assets and its value was a time-consuming process, similar to the complexities of filing indictments against the Kotelawala couple.
The value of assets is little over Rs 2 billion, according to government valuation, while the dues to depositors is Rs 26 billion; that’s worst that the national budget gap! Bearing in mind that the sale of assets could in no way meet the liabilities, the Central Bank together with the Committee of Chartered Accountants that is involved in the process came up with a model where some of the assets would be sold, the money ploughed back and re-invested while a few companies would be run by the SPV under professional management. The rationale was that profits that accrued by this mechanism could, over time, be sufficient to meet all the dues of depositors.
Depositors over the past several months have expressed their dismay over the valuation saying government valuers have under-valued these properties and they are worth much more. At the meeting with the president, GK depositors Association President Anusha Emmert said that issuing shares to offset their deposits was unacceptable as most of the depositors are in urgent need of money for their day-to-day living.
She also filed a new re-payment plan at the meeting, where elderly and ailing depositors and those in urgent need of money for living expenses who have a deposit of below Rs 5 million be paid by 2013; over Rs. 5 million up to Rs.10 million be paid by 2014, and so on after selling the assets. With desperation creeping in over the past 18 months, depositors have split into two rival groups and having disputes amongst themselves over the right formula for payment or relief.
The GK case comes up before the Supreme Court on October 27 and depositors would be eagerly awaiting its outcome, though a speedy payment process for them is unlikely to happen. In the meantime however they know that the long arm of the law has finally reached the perpertrators of this terrible crime on hundreds of young and the old who wanted a little more money in their hands, than that doled out by the regulated, financial system, to make ends meet in a country where cost of living has come down only on paper – not in the marketplace
By: nadunhewge on October 24, 2010
at 1:45 am
Ceylinco firms to go public
Two Ceylinco Group firms – Finance and Guarantee and Ceylinco Investments Realty – are planning to go public by next year, according to sources close to Ceylinco.
They said that the two firms, struggling with cash flow problems triggered by the Golden Key debacle will go for an Initial Public Offering (IPO) in a bid to raise funds to restructure the firms’ accounts.
“The Merchant Bank is now adding the final touches to the IPO which is to come out in the early part of next year,” a source told the Business Times.
He said that The Finance Company’s restructuring will also be completed by this time. He added that this will include such steps as salary revisions, minimizing certain privileges provided to the senior executives, retrenching a certain percentage of contract and casual employees mainly to safeguard the existence of its permanent employees, adopting certain cost cut measures such as reducing office working hours and cutting down on air-conditioning, etc.
By: nadunhewge on October 24, 2010
at 1:47 am
Finally: Indictments against Kotelawala, Sicille
The Attorney General’s (AG) Department, 21 months after the Golden Key crisis exploded in December 2008, is now ready to indict former Ceylinco Chairman Lalith Kotelawala, his wife-on-the-run Sicille and other directors on charges of criminal misappropriation of funds, fraud and breach of trust in connection with the Rs 26 billion scam.
Sources at the AG Office said Attorney General Mohan Peiris told President Mahinda Rajapaksa at a meeting with GK depositors and officials on Monday that “criminal charges will be filed against Kotelawala, Sicille and other Golden Key directors soon with the completion of the ongoing auditing process”.
They said the indictment was being prepared to charge the accused under the Penal Code and pointed out that the long delay in filing indictment was due to the collection of evidence and auditing process which is still going on. A major part of the investigation has been completed and enough material collected to file indictments. Another reason for the delay was the failure to arrest Sicille Kotelawala, who was originally believed to be hiding in Singapore and now is believed to be either in Singapore, Dubai or Malaysia. The former Ceylinco director will be tried in absentia.
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. In the meantime the trial at the Mount Lavinia Magistrate Court is continuing as the inquiry has not been completed and the Criminal Investigation Department is continuing its probe related to these charges on directives issued by the AG.
The 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.
By: nadunhewge on October 24, 2010
at 1:49 am
Golden Key depositors to wait longer
Meeting with President doesn’t resolve issue
By Bandula Sirimanna
Aggrieved depositors of the failed Golden Key (GK) Co, which triggered many collapses across Sri Lanka’s finance company sector nearly two years back, will have to wait longer for their money despite reports this week that the formation of a new company could end their problems.
Though it was announced this week that a limited liability company under the name of GKCC Special Purpose Vehicle Company Ltd will be formed to operate as a viable business venture under the supervision of a Board of Directors and an advisory council, and that everyone including depositors had agreed to the proposal at a meeting at Temple Trees presided over by President Mahinda Rajapaksa on Monday, a group of depositors filed an affidavit in Court – three days later – on Thursday saying they are not in favour of the way the company is being structured.
GK depositors told the Business Times that although they agreed to the formation of the new company and the transferring of all GK assets to this firm, they were not in favour of the proposal of issuing share certificates to them in proportion to the amont outstanding for each depositor instead of being paid their full amount.
President of the GK Depositors Association Anusha Emmert told the Business Times that they filed an affidavit at the Supreme Court on Thursday against this move. Even at the meeting with the President on Monday they made it clear that depositors wanted money and not shares or high director positions in the new company or other companies.
Under the new plan, the assets will be sold but ploughed back to the company and channelled to investments that would eventually increase profits and earnings. The rationale behind this, a senior official of the Central Bank told the Business Times, is because the assets are worth just Rs 2.2 billion compared to the liabilities (money owned to 7,100 depositors) being Rs 26 billion. The decision to issue share certificates had been taken due to this reason, he said, adding that the depositors will now not be able to sell their shares until the company is transformed into a viable entity.
He said the plan proposed by the Central Bank had received the nod of parties concerned including the 3-member Chartered Accountants Committee, Attorney Generals Department and depositors, at the meeting. Depositors however, according to Ms Emmert, have a different story.
The blue-print of the new firm will be presented before the Supreme Court on Wednesday, October 27 when the GK case comes up. According to the decisions taken at the Temple Trees meeting, a board of directors and panel of advisors representing the sareholders would be appointed to the company which in turn will manage some of the properties while others will be sold and the money ploughed back and used in new investments.
“The main aim of the company will be to address the problems of the depositors by creating profits and value that can give direct returns to shareholders,” the Central Bank official said. The Central Bank will act as the facilitator of this process.
The formation of the Special Purpose Vehicle was done in accordance with a Supreme Court directive issued in 2009 after depositors went to court after the company collapsed in late 2008. The collapse triggered a run on deposits in other firms in the group. The Court also permitted on August 6 this year for a new bank account to be opened in the name of this company. Therefore this was not a new arrangement, the official said. But he conceeded that the modalities of the company had not been finalized at that time, due to ongoing valuation of GK assets.
Dushyanthi Hapugoda, President of the GKCC Depositors Association, the breakaway group of GK Depositors Association, who also attended Monday’s meeting, said her group is not opposed to the issuance of shares to depositors. She said the new company should be operated by qualified professionals who can make it as a viable entity and representatives of depositors should be appointed to a committee of observers but not as directors of the firm.
By: nadunhewge on October 24, 2010
at 1:51 am
New company to transfer GKCGSPV assets
by Surekha GALAGODA
A new company will be set up to transfer the assets of GKCG Special Purpose Vehicle (Pvt) Ltd (GKCGSPV) and go public as soon as possible but not later than December 31, next year said Governor Central Bank Ajith Nivard Cabraal. He said that this was decided on following a directive by President Mahinda Rajapaksa after he met Golden Key Depositors at Temple Trees on October 18.
The new company will be formed under the Companies Act to transfer the assets of Golden Key Credit Card Company. The depositors of Golden Key will be appointed as shareholders of the new company. Accordingly, the assets of Golden Key will be transferred to the GKCG Special Purpose Vehicle (Pvt) Ltd. (GKCGSPV) and the depositors of Golden Key would be made shareholders of the new company in proportion to the percentage of their deposits in the Golden Key Credit Card Company.
According to the report submitted to President Rajapaksa, the board of directors and the management structure of GKCGSPV, three members of the committee of Chartered Accountants will serve on the board until the end of this year or beyond as agreed upon by both parties. Three depositors representing the security deposit holders of GKCG will be appointed by January 1. The chairman will be appointed by the directors while a CEO will be recruited and appointed by the board while a consultative committee consisting of 10 members will be nominated by the initial shareholders.
The report said that if necessary, the company will sell new shares or borrow money from the banks based on their assets and balance sheet and operate the business on a commercial basis.
The company could be launched with the identified net assets of Rs 2 bln for which value, shares could be issued to the Security Deposit Holders.
Initially, security deposit holders will get 15,930 shares of Re 1 each of GKCGSPV for each block of net security deposit of Rs 100,000.
When the scheme is implemented the security deposit holders would be free to sell their shares initially via private transfers and realise gains or hold the shares until the company goes public and trades the shares in the stock market.
The GKCC All Depositors’ Association and the Golden Key Depositors Society have agreed to the strategy presented by the Central Bank at the meeting held on October 18. According to the President of the Golden Key Depositors’ Association – if the company can acquire all the assets, sell them and give us our money it will be a better option.
We are happy and grateful that President Rajapaksa has stepped in to help the depositors. She said that at the Annual General Meeting held at the S.D.S. Jayasinghe Hall in Dehiwela we unanimously decided that we do not want shares of a company but the money as we are stranded without the cash. Forming a company to acquire the assets of Golden Key is good but giving us shares would not solve our problems and also we don’t wish to fall into the same pit again.
According to discussions we will only get 10 percent of the shares and if a depositor has deposited Rs 100,000 he would get 1,593 shares. This amounts to two billion rupees worth of shares at Rs 10 each. But Lalith Kotelawala has produced a list of assets worth Rs 13 billion to the Supreme Court. We have been suffering for two years but within one year we were paid Rs 100,000 each while the depositors of other failed finance companies did not get anything.
She said that it is one year since Lalith kotelawala was released on bail. Though he promised that he would settle the depositors as soon as he comes out of jail it is not so. Today he travels by car and lives in luxury and is not worried about the poor depositors. He together with the director board is very happy about the share option as they would get another chance to cheat us.
The case will be called again on October 27 and the Attorney General Mohan Peiris promised us that indictments will be served against Lalith Kotelawala and the Directors. This, he said, would bring the hidden assets to light.
By: nadunhewge on October 24, 2010
at 1:54 am
Sunday LAKBIMA
“Give us back our money, no Ceylinco company’’
- Anusha Emmert
By a Special Correspondent
President of the Golden Key Depositors Society Anusha Emmert says that they have not given their consent to anyone to form a company with Ceylinco assets, that will issue shares to all depositors.
“We never agreed to such a move as going to the stock market will be another blunder for us. But some people in the government spread the news that depositors have agreed to form a new company with Ceylinco assets — a diabolical lie”, she said.
She said their society has already informed President Mahinda Rajapaksa on the need to sell all the assets of the Ceylinco Group of companies, rather than set in motion hideous schemes.
In an interview with LAKBIMAnEWS, she said that recently her society had held discussions with the President and explained their position.
“Almost all the depositors who are members of our society which numbers over 1600, are not in favour of the share market being used to provide us with any tangible benefits”, she stated.
“I drove this point across to the president, and underlined the importance of selling assets worth 23 billion rupees belonging to Lalith Kotelawala, if our depositors are to retire this issue.’’
“The tactic mooted by some powerful people in cahoots with a former member of our society who was sacked after a fraud, to seek recourse in the share market is another hideous move to lead the depositors of our society astray”.
By: adobo on October 26, 2010
at 1:06 pm
hw can we trust anusha because she has agreed for the share proposal with central bank n with president ,after 3 days she said she has not agreed. actually she dosent know what she is going to do,
By: padma on October 26, 2010
at 3:59 pm
Bungling Watawala Can’t Perform!
“Professor’s” attempt to flog Ceysands ill-informed
Golden Key depositors continue to sink
Rs. 300 – 750 million bids withdrawn
Ceylinco Life’s Rs. 36.2 Mn provision for loss in Hotel
By Faraz Shauketaly
Aerial view of Ceysands Hotel
Bungling, Lakshman Watawala – the man whose professorship has never been explained – was at it again. This time round he was attempting to sell something which was not quite his client’s to sell. At the centre of this latest bungling is the beautiful Ceysands Hotel in Aluthgama.
Rolling back in time just a bit – a trio of accountants was appointed by the Courts in the wake of the Golden Key Credit Card Company’s demise (GKCC). They were charged with finding and liquidating whatever assets that GKCC had in order to repay the depositors/investors. That comprised of approximately Rs 26 billion – Rs 12.7 billion in capital and Rs 13.2 in interest payments due.
As the Watawala Commission got underway, amongst the assets they claimed to have found was an investment in Ceysands Hotel, Aluthgama. Lakshman Watawala and his team then advertised and called for bids from prospective purchasers.The property upon which the Ceysands is built is almost unique: staying at the hotel is in effect like being marooned on an island of luxury. Access to the hotel is by motorised boat and for those tourists looking to indulge in water sports Ceysands is one of the foremost properties to do it from.
Be that as it may, the Ceysands property itself is rather tired and can do with some renovations and upgrading to bring it into line with Sri Lanka’s attempt to develop its new found appeal as a hot destination of choice for tourists from all over the world, not just from the growing expectations of a vibrant domestic tourism sector. Therefore when the call for proposals to sell the hotel was made by Watawala and company, there was plenty of hope from amongst others, investors who are better known as corporate raiders.
Many if not all of the Ceylinco assets lends itself to the fancies of corporate raiders, now that the group has suffered from a blitz of adverse publicity and that the troubles of its lead owners, Lalith and Sicille Kotelawala are far from over. Many an opportunity presents itself to corporate raiders who have the liquid assets (read cash) to take on such opportunities as the Ceysands Hotel. Or so they thought.
For all his so-called fame and professional ability and years of commercial exposure, Lakshman Watawala failed to do his homework, The Ceysands Hotel was not substantially owned by Lalith and Sicille Kotelawala. Neither did Golden Key. The stake was just a meagre 2.6% which meant that any proceeds from a sale of Ceylinco Hotel’s Ceysands Hotel would hardly make a blip on the Rs 26 Billion radar screen which is the amount owed from the Golden Key failure.
Ceylinco Life, has an interest in the hotel through two companies – Ceylinco Tourist Hotels Ltd., and Ceylinco Hotels Ltd., which they valued at Rs 36,250,000 (Rs 36.2 Million). In the accounts for 2009, Ceylinco Life have made provision for a fall in its investment of the same amount – Rs 36.2 Million. Ceylinco Life have also made similar provisions in other companies in which they have investments including a company known as Serene Resorts Limited amounting to Rs 20 million.
According to the website Votewatch.eu the Sri Lankan born Member of the European Parliament, Nirj Deva Aditya lists himself as the Chairman of Serene Resorts Limited. Ceylinco Life declares itself as the 100% shareholder in Serene Resorts Limited in the same annual return. Sicille Kotelawala is listed as a Director of Ceylinco Life and her interests in Serene Resorts Ltd is also noted. Lakshman Watawala was not immediately available for comment as to whether he would be pursuing her interests in Serene Resorts Ltd., as part of his collection of assets for the benefit of Golden Key investors and depositors.
The most significant and substantial piece of information that Watawala failed to realise was the fact that the Ceysands Hotel was in fact built on land that was owned by the Sri Lanka Tourist Development Authority (Tourist Board in general speak). During the time that the Watawala Commission was making progress in trying to sell off this perceived “prized asset”, officials from the Sri Lanka Tourist Development Authority displayed uncanny disinterest in the goings on or were simply lackadaisical.
That in itself is shocking: shocking that government officials paid by the state to do an honest day’s work simply allowed the court-appointed Watawala to carry on regardless. However, to save some face and as an indication that there are public officials who actually do adhere to Article 28C and Article 28D of Sri Lanka’s Constitution, the Sri Lanka Tourist Development Authority has finally stirred from its slumber. It may well have all to do with the fact that the new Minister under whose purview the SLTDA comes, Basil Rajapaksa has proven himself to be fully involved in the activities of the various tourism authorities (there are four).
The Ceysands Hotel is in fact held on a 30-year lease from the SLTDA. Any transfer of ownership of the lease must be agreed before hand and approved by the freeholder – the Tourist Board. SLTDA challenged the attempt to sell Ceysands without their agreement and last Wednesday, October 27, 2010, the Courts agreed and upheld the fact that the Ceysands Hotel is built on land held as a lease. The Court has also upheld the Tourism authority’s rights as a freeholder of the land and corrected the position. Informed sources said that various bids – ranging from Rs 300 million to Rs 750 million had now been withdrawn on the basis that they were misinformed of the facts pertaining to the ownership of the land. There were also unconfirmed claims that the sale process itself was secretive and not as transparent as it could have been.
A spokesperson for the Sri Lanka Tourism Authority’s legal department said that contrary to claims that their authority has been turning a blind eye, they have in fact been monitoring the situation and the activities of the Watawala Commission. They decided to petition the Court themselves after they became aware of the permission granted by the Court to the Watawala Commission to sell the Ceysands Hotel as part of the Golden Key assets portfolio.
It was essential for “government departments to be vigilant and to be pro-active. It is our job to safeguard national assets and any attempt to sell transfer or otherwise gain state land is a very serious matter. We do not take these matters lightly which is why we launched our court action. We are pleased that the Court recognised our rights and very happy that the Court has directed the Watawala Commission to revisit the sale, taking into account the interests of the SLTDA.”
faraz@thesundayleader.lk
By: adobo on October 31, 2010
at 11:31 am
Kotelawala, GK depositors meet tomorrow
Dues now listed at Rs 13 bln from Rs 26 bln earlier
By Bandula Sirimanna
In a fresh turn of events in the Golden Key Credit Card Company (GK) saga, all its former directors including former Ceylinco Chief Lalith Kotelawala and Khavan Perera are meeting representatives of GK depositors tomorrow to find a solution to the crisis following a court ruling.
A 3-member Supreme Court (SC) bench headed by Justice Shirani Thilakawardena on Wednesday ruled that all connected parties should meet and settle the grievances of depositors through consultation and compromise and noted that their decision should be conveyed to court at the next hearing of the case on January 27, 2011.
This effectively suspends any sale of properties owned by GK or its related companies until disputes over the modalities of the proposed GKCC Special Purpose Vehicle Company Ltd (SPV) are worked out to the satisfaction of the depositors, who are opposed to shares being offered to them instead of full repayment of their lost deposits.
Monday’s meeting will be the first between all these parties since the collapse of the company in December 2008 and they will be joined by the 3-member Accountant’s Committee, and Central Bank officials under the patronage of the Attorney General.
On Wednesday it was revealed in court by the Accountants Committee that the total amount due to 7,100 depositors is Rs.13 billion and not Rs.26 billion, which is the figure widely published up to now. GK Depositors Association President Anusha Emmert welcomed the meeting saying that it will be a good opportunity for them to present their grievances but expressed surprise about the new liability figure which is half the original dues.
The depositors have so far been paid a total of Rs 700 million (at Rs 100,000 each), as part of their deposits. The depositors are opposed to the plan to issue share certificates in the SPV equivalent to the proportion of the amount outstanding. Under the new plan, the assets will be sold but ploughed back to the company and channeled to investments that would eventually increase profits and earnings.
Meanwhile when an application for review of a SC order on August 6 canceling the issue of 500,000 shares belonging to the Merchant Bank of Sri Lanka and its former chairman Janaka Ratnayake in Ceylinco Investment Ltd, came up before court on Wednesday, M.A. Sumanthiran Attorney-at-Law Counsel for the former MBSL Chairman, informed court that the earlier order against Ratnayake was made without following the principles of natural justice and without hearing him, and as he was not a party to this action he had no opportunity to present his position.
Counsel urged that the order be set aside to which the court suspended the order pending submissions from Mr Ratnayake. Inquiry in this matter was fixed January 28, 2011. In the August 6 order, the SC said it was brought to the notice of court that Mr Ratnayake had issued 500,000 shares worth Rs.5 million to himself. The Attorney General had investigated the matter and found that this is an illegal transaction.
he transaction was then cancelled and the Rs.5 million reversed. On an application by concerned parties, the court had then ruled that Mr. Ratnayake should not serve on any of the boards of the Ceylinco Group nor on the board of Merchant Bank in view of this transaction which the Attorney General said had been found to be fraudulent.
In a related development, angry GK depositors tried to manhandle Dushyanthi Hapugoda, President of the breakaway GKCC Depositors Association outside the court premises on Wednesday for giving her consent to the Central Bank move to offer shares to depositors instead of full repayment, witnesses said.
A large number of depositors told the Businesses Times that they need money and not share certificates. They blamed Ms Hapugoda for betraying their struggle. When contacted by the Business Times, Ms. Hapugoda said that depositors had questioned her about this issue and she explained to them that not only her but also the GK Depositors Association President Ms Emmert had agreed to the modalities of the new venture. Ms. Emmert however rejected the claim saying her association had filed an affidavit in court opposing the share issue
By: adobo on October 31, 2010
at 11:38 am
How did 26Bn bcome 13BN, who misled or is misleading the courts and country?? How long did Watawala and Auditors do the checking? What happened at the meeting today ?
By: adobo on November 1, 2010
at 2:43 pm
Rs. 26 bn is with accrued interest of donkeys who has not collected their interest and 13 bn is capital owed to depositors w/o accrued interest of some depositors.
So real capital deposits made by depositors are 13bn.
Ceylinco can easily pay this as they already say 2bn is available which may be undervalued but real value may be about 6bn.
Its good to liquidate everything and pay the capital before Watawala Committe eat up everything as their salaries and Secratariat Cost !!!
By: Basil on November 2, 2010
at 1:16 pm
You are correct. Kabral & Watawala may eat our money. They don’t want to pay us. That’s why they are try to make so called (Special -……..-purpose ) Company to eat our money.(Comments edited)
By: Sam on November 2, 2010
at 3:10 pm
Appreciate your understanding . Everybody should keep calling GK Secretariat on TELPHONE : 2477347 and keep asking for the money. Prior to this SHARE NONSENSE they told me they are going to RELEASE RS. 100,000.00 BEFORE CHRISTMAS !!!
SO KEEP CALLING EVERYBODY IF YOU WANT YOUR MONEY BACK !!!
By: Basil on November 3, 2010
at 10:18 am
Dushanthi & Anusha Emmert fight in front of GK office like CATS & DOGS , with anusha emitting RAW Filth.
Dushanthi House splattered with black engine oil . Anusha wishes Happy Birth Day to lalith Kotalawela and get 01 millions bucks as a present from LK.
By: Mahinda on November 11, 2010
at 3:23 pm
I was unable to attend recent meetings please inform me all
By: Cyril Dharmawardana on November 11, 2010
at 6:13 pm
(November 13, Colombo, Sri Lanka Guardian) Although President Rajapakse and those close to him showed initial sympathy and signs of resolving the pathetic problem of over 5,000 smaller depositors, ill fate threatens the lives of most of these innocent folk – whose world has collapsed right in front of their eyes without warning in December 2009. Many children from the ages of 5 to 17 have lost their places in good schools their parents found for them that ensured a good education and future to them – with the legitimate flow of interest from their lives savings. Some from the upper middle class are thrown into penury since 2009 – with some having committed suicide. Many have died to extreme mental agony as a consequence of Lalith Kotelawala’s undiminishing ego, mismanagement and the surreptitious flight of capital overseas in his watch to widen his fantasy of a Ceylinco World. While the hopes of the depositors – whose total investment was calculated in excess of Rs.26 billion – was raised initially with the considered statement from relevant quarters the total market value of unencumbered Kotelawala properties exceeded this sum. It was mentioned then sufficient funds are available to pay reasonable unpaid interest to the depositors . The appointment of a Committee of 3 Chartered Accountants outside the State’s dictate introduced a semblance of fairness, However, the depositors could not retain much confidence in the Committee when the trio paid themselves fantastically high fees even before the 2nd instalment of Rs.200,000 each to the smaller deposit holders was effected. Curiously, the directive of the Supreme Court made sometime last August is yet to be honoured. The integrity of the Chairman and the Committee would have been enhanced if they made public the sums they paid themselves with gusto , the periods and other details – but this is still to be seen. It is learnt the close relationship of key officials of the CBSL and the Committee probably stands on the way to this disclosure.
Meanwhile, the tussle to unduly appropriate these valuable properties by influential sources close to top government VIPs continues. The idea is to get them for a virtual song. It is well known the Rajagiriya ENT Hospital was about to change hands at a mere Rs.500 million when the media raised a hue and cry. This was to be followed with the news a Singapore party has come out with an offer of Rs.2.2 billion for this Hospital, which may be in line with the market value. Unsurprisingly and as an indication of the severe tussle that is taking place behind the scenes, the Singapore party, whose name was recommended to the Supreme Court suddenly found himself “a shady character with an unreliable track record” This was after he is said to have paid the initial deposit laid down in the sales plan. The brand new Ceylinco Celestial Towers, CeySands Hotel, The Ceylinco buiding at Fort, Kotelawala’s R.A. de Mel Mawatha bungalow and other ultra-rich properties will go a long way to pay up the depositors. But apparently the faceless wheeler-dealers seem to be winning and have other agendas than to help these now poor depositors gain their savings . The cabal has begun by splitting the Depositors association into two. Anusha Emmert continues to fight for the return of the deposits plus interest. But the new break-away faction of her former deputy Dushyanthi Hapugoda has yielded to this new Vehicle where depositors funds will be turned into shares and a new enterprise with a “dynamic Board of Directors” is to engage in various trading to secure Depositors funds. This is likely to takea long period of time alone is sufficient to reject this formulae. Emmert’s faction has no faith in such a mechanism because, in the first place, it was Lalith Kotelalawal and his brand of no less dynamic Board of Directors that brought in doom to all these depositors. Besides, the trading conditions in the country – or for that matter in the world invarious degrees of recession and depression – is hardly the time or the place to engage in speculative trading.
In fairness to the President, it must be stated a few days after he returned from New York, he personally intervened to resolve the matter. But upon seeing factional feuds he seems to have washed his hands off the matter. Meanwhile, the much hyped 2nd instalment of Rs.200,000 ordered by the Supreme Court is now being talked in terms of Rs.100,000 shattering the faith of the depositors in the Judicial system as well. Chairman of the Committee of Accountants Prof. Sunil Watawala now states they are unable to find the Rs.700 million required for this purpose. Worse, from the angle of the depositors, is the news now floating that the total value of Ceylinco/GKCCC assets payable to them is not more than Rs.2.2 billion.
Under normal circumstances, the public will not expect the President of the country to expend his time in the business of a group of investors. But here is a case where the livelihoods of several hundreds of thousands of people – who were once considered wealthy and the next day discovered they were made virtual paupers by Kotelalawals misdemeanours – a super- tycoon who was a favourite of several governments. What was promised to be in the region of Rs.26 billion coming down to Rs.2.2 billion is nothing short of highway robbery The Committee should have sent their proposals to the Supreme Court only after ensuring they had the funds to pay the Rs.700 million to the depositors. This matter being handled somewhat shoddily and somewhat wanting in professionalism has created problems all around which is why we think this Committee has overstayed its role. The President and the Central Bank should consider doing away with this Committeee and cause the required remedy through an alternative and effective modus. This should begin initially gaining the Rs.200,000 – already decided and announced. This is likely to bring some solace and confidence to the people concerned. And, ideally, thereafter help them further by disposing of these high-value properties transparently and in full view of the public (via widely publicized Tenders and so forth) at values that will not disappoint the nearly 8,000 depositors.
The unconfirmed news some of the larger properties listed have either been sold at low values or are in the process of being sold to favourutes of various VIPs is received which much disappointment by call concerned. Two years is far too long for this matter, that has engaged the rapt attention of the nation, to be unresolved with a sizeable group of people and their children denied the joys of Christmas and New Year – which must have been events looked forward to by the younger generation in these families living in comfortable circumstances for a long time and who now, unfortunately, find themselves pushed into gloom and despair
By: adobo on November 13, 2010
at 11:22 am
Golden Key share deal to be finalised despite discord
CBSL to meet depositors unions on November 26
By Santhush Fernando
The Central Bank of Sri Lanka will meet representatives of two depositors’ unions of the collapsed Golden Key Credit Card Company (GKCCC) on November 26 in a bid to finalise the proposed equity conversion plan, despite disagreements among depositors.
Many depositors are in favour of the deal as they will get only a fraction of what they invested if company assets are sold. But if shares are issued they would be able to recover a higher amount as equity markets are capable of appreciating.
“This is the best and the last option we have. As Golden Key has no money we have to go ahead with this. Otherwise we will have to live in hunger throughout year 2011 as well,” said a depositor who had invested all his EPF and ETF savings with Golden Key. “We trusted Deshamanya Lalith Kotelawala and his Ceylinco Consolidated and deposited all what we had with his companies. It’s been two years now and we are still in pain although Kotelawala and his directors are released on bail,” he added.
“We profusely thank President Mahinda Rajapaksa and Presidential Secretary Lalith Weeratunga for their intervention to find a final settlement for Golden Key depositors. We expect that their patronage will continue until aggrieved depositors are repaid,” said GKCC All Depositors’ Association President Dushanthi Hapugoda.
Hapugoda added that the Central Bank also contributed by deploying 14 full-time employees for the Golden Key Secretariat.
The share conversion deal was earlier presented to President Rajapaksa on October 18 by Central Bank Governor Ajith Nivard Cabraal and Committee of Chartered Accountants (CCA) head Prof. Lakshman R. Watawala with Presidential Secretary Lalith Weeratunga, Attorney General Mohan Peiris PC, and depositors’ union representatives.
Although GKCC All Depositors’ Association is in favour of the share issue, the rival Golden Key Depositors’ Society (GKDS) says it vehemently opposes the deal.
“The Central Bank wants to issue shares instead of paying back our investments and wash its hands off the mess which they themselves have aggravated. We are getting shares worth Rs.15,000 for every lakh we had invested after two long years. So what do we gain at the end of day?” lamented GKDS President Sama Sri Deshamanya Anusha Emmert.
“However, under the share deal, if the Central Bank cannot guarantee full repayment, Kotelawala himself should give us a guarantee, to repay every cent he defrauded,” Emmert said.
Meanwhile, GKDS handed over an alternative repayment plan when it met CBSL Governor on October 6 under which it claimed the repayment of Rs.25 billion to depositors within a period of six years. However, it is also learnt that GKDS has signed, giving its consent for CBSL’s share-conversion deal.
Under the equity conversion plan, liabilities and assets of Golden Key Credit Card Company (GKCCC) will be transferred to a newly formed holding company.
Board of Directors of the new company would be constituted by nomination of the country’s President and the Central Bank which will include members of the Committee of Chartered Accountants (CCA) and even depositors.
CBSL is hopeful that the new company, under an independent management would be run as a viable business venture and that depositors would have a better chance of getting a greater amount of their defaulted investments reimbursed, which would not be feasible if GK assets were sold.
“For instance, although valued at a meagre Rs. 500mn, we observed that the Golden Key Hospital is worth over Rs.4bn. It is grossly undervalued. Furthermore, during a recent visit there we saw that there is much potential to convert it into a general hospital. In such a scenario, depositors would have the option of selling shares or holding on to them for realisation later on,” Hapugoda said.
By: adobo on November 14, 2010
at 11:42 am
Where did the Sale proceeds go??? This was set up as
Key security , with GK funds!!! Where is the sale proceeds??
Ceylinco-CISCO rebrands as Certis Lanka
by P. Krishnaswamy
Ceylinco-CISCO that has been operating as Key Security Services (Pvt) Ltd in collaboration with the Singaporean Government-owned CISCO Security International Pte Ltd will re-branded as Certis Lanka from January 2011.
From left: Group CED Vipul Hettige, Acting Deputy Managing Director Business Development Eric Koh, Acting Chairman Sanka Wijesinghe and Vice President Richard Lau.
- Pic: Vipula Amarasinghe
All companies that have hitherto been known under the brandname of Ceylinco-CISCO will now be re-branded as Certis Lanka including Security Solutions (Pvt) Ltd (which renders manpower security) Secure Logistics (Pvt) Ltd (which handles collection of transport) cash and valuables, Technology and Consultancy (Pvt) Ltd (dealing with electronic security systems).
Home Nursing and Swift Care (Pvt) Ltd provids home nursing, doctor on call and ambulance services) and the Courier Services (Pvt) Ltd which provides courier service, it was said at the media conference.
The services which Ceylinco-CISCO had rendered to the motherland since its inception in 1977, including well-paid employment opportunities to over 6,000 personnel under their state-of-the-art security solutions, protection and safeguard of properties and valuables, monitoring and cutting-edge technology in alarm systems and home nursing were elaborated in detail by the CEOs.
In 1995 they entered into a joint venture with CISCO Security International Pvt Ltd (Commercial and Industrial Security Company) owned by the government of Singapore and since operating as an independent entity providing security services for nearly thirty-four years. In 2005, CISCO Security Pte Ltd, the company’s joint venture partner in Singapore was corporated as a wholly-owned company of Temasek Holdings, the private investment arm of the Singapore government. In 2007, CISCO Security underwent a brand transformation emerging as Certis CISCO Security Pte Ltd.
It has equipped itself with a new and refreshed image and progress, regionally using the brand name of Certis, the word meaning ‘assurance’ in Latin. The re-branding accentuates the strength and expertise of Certis Group in Singapore.
The company has 12 branches in Colombo and in all provincial capitals. The CEYLINCO-CISCO Academy trains its personnel including the managers on specialised courses. The Academy has its own instructors and also obtains services of outside facilitators.
They also exchange training programs with their joint venture partner Certis CISCO.
A twenty-four Central Alarm Monitoring Service (CAMS) is being operated by them with 24 hour Response Teams.
By: adobo on November 14, 2010
at 1:34 pm
GK, LK and all the directors were cheating and playing off the money of so many people. Now they live in luxury + happily party as many times mentioned. It is shocking to know in what unbelievable luxury these criminals live !
Why is it so difficult for the court to decide to seize all their assets and luxury houses / cars as their actions were clearly criminal, they stole a huge amount of money from thousands of people and the normal mind would say : they first have to pay back ALL their dephts to the depositors and live with what is left ( and even that LITTLE REST would be surely still more than we will ever see in our life ).
I`m sure if it would have been ordered like this from court side already at the beginning, many directors would have come up very fast by themselves with other unknown assets before loosing their house.
What about LK`s huge foreign accounts. It`s actually hard to understand why he didn`t just pay the depositors at the far beginning, keeping his reputation and still being very rich, even without the 26 bn.
So how is it possible that it is now said GK hasn`t got any money and shares are the only option ??????? Makes people feel to be considered a bit stupid and fooled !
If the court would FINALLY and strictly seize all foreign branches assets ( australia etc ), the 24 luxury houses of one of the directors as well as those of the other directors and for the most LK`s, all their luxury vehicles and many more known assets their should be already quite a big amount to repay depositors, if it even wouldn`t already acceed the 26 bn.
If the court doesn`t take any strict actions soon, this case will motivate other people to do the same because what they have to loose ? A few months “may be” in prison, then coming out by giving some fake promises and not loosing any of their assets ( may be even having more than before from the fraud money which is not paid back ) Court should very soon set an example on this team of criminals ! If not, it will be like an invitation for others to do the same, it surely wouldn`t be the last case like this and many more innocent people will be brought into bankrupcy and suffering !
About the “umbrella” : of course other ceylinco companies should give a part in this debacle. How can it happen that when after 2 years depositors recieved only 100000 Rs each, other ceylinco companies talk about so big success and profit and obviously have got so much money that they can do mega big advertisements at every corner, full page ads again and again in the newspapers as well as every 12 minutes on tv. If they would only reduce their advertisement by 50 % to contribute into this, many million rs would come in for the long waiting depositors and in addition people watching tv wouldn`t get tortured with one and the same advertisement every 12 min. Would be a small deal for them to show that so often promoted “umbrella” function really can work ! ! !
By: Renuka on November 22, 2010
at 7:00 pm
hi there,
i have choosen to do a case study on golden key credit card company financial frauds.can you tell anyone where i can get the proper sources for this.
By: jessy james on November 25, 2010
at 4:34 am
So now Soft Logic is buying Sea Sands. what happens to the Holding company which was going to run all the business and issue shares??
By: adobo on December 6, 2010
at 1:19 pm
[December 10, Colombo, Sri Lanka Guardian] A government under siege from many directions – both natural and man made – is forced to throw to the wolves, as it were, tens of thousands of children, men, women, the old and the sick who were all until recently part of the middle and upper class. Thrown into virtual poverty since December 2008 for the “crime” of trusting Lalith Kotelawala and the name of his family with their life’s savings placed with the Golden Key Credit Card Company (GKCC) Bernard Madoff in New York was sentenced to 150 years in June 2009 and Tanzi of the Italian giant firm Parmalata – sentenced to 10 years (because of his old age) last week by their respective governments for similar scams ans defrauding investors in their countries. In the nature of the system here – crass bribery and corruption coming into play as well – such a deserving fate has spared Kotelawala. He continues to live in super-luxury in his mansions in the company of his close friends dining, wining as usual while listening to music from live bands purely because he has the right connections in the right places. The large number of people Kotelawala defrauded by his own Ponzi scheme are provided with no other option by their government but to continue to live in fear, tension and misery. Some of these people have lost their homes while a few families have broken down into divorce and disintegration.
Representatives of these depositors met with President Rajapakse in recent times and received the assurance good times are ahead of them soon under the Rajapakse government. Over 6 months ago the Supreme Court ordered the payment of Rs.200,000 each to around 7,000 depositors. Astonishingly this remains unpaid still. Since then, contrary to all assurances, the government has exited through a safe route formulae of a “new vehicle” which most depositors took exception to. This new Company is to be run by “a dynamic set of Directors” where the cash of all these depositors – around Rs.28 billion will be capitalised. Curiously there is speculation this large sum is now spoken of in terms Rs.2 billion. How and why nobody knows say the depositors. The government can be assured of one certain development here – many more will commit suicide and there can be several further deaths from shocks to the sizeable number who have already taken their lives. Does anyone care?
There will be no Christmas or New Year joy to these once prosperous, law-abiding and respectable people. The little children of these families who had it good all these years are now left simply to look down and shed tears for their fate – the reason of which they are too young to know. Where is compassion, governance and meaningful justice to these people whose cause we have taken up in the cause of social jusice. President Rajapakse is known to be children-friendly and,,therefore, we suggest those around him should bring this matter to his immediate attention.
Mr. President, please spare some time to bring back the smiles and joy to these innocent victims in this season of good cheer.
By: nadunhewge on December 10, 2010
at 9:40 am
Our …………(Jathi Hihaishi) President has given full joy to 54 new ……. in parliament, not for us. Person who vote for this ……..are not humans , they are ……..(EDITED)
By: Sam on December 12, 2010
at 9:22 pm
Anusha Emmert has sold the GK Depositors down the drain . See todays Daily News (30 January 2010 ) page 08 for further details.
By: Mahinda on December 30, 2010
at 2:44 pm
Can u tell us waht Anusha has done please?
By: Sara on December 31, 2010
at 7:58 pm
This ugly bastard is the killer of Most ven. Gangodawila Soma Thero. There is no doubt, he used Russian Catholic Mafia and paid them to do the coward job. Now the Cecile, his Pumpkin is also living in Ukraine under the protection of Russian mafia.
The people who deposited money are responsible party for the murder of Soma thero; also.
By: Caeser on January 1, 2011
at 2:19 pm
I do know one thing, LK did not face justice in Ven Soma Killing, so why should we think he will face justice for the GK fraud??
Still no one responds.. what has Anusha done to betray us??
By: Sara on January 1, 2011
at 7:39 pm
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Negotiations To Commence Between Golden Key And Depositors
By Abdul H. Azeez
Golden Key protesters
CEO Khavan Perera and the Board of Directors of Golden Key have finally come forward with a proposal for paying back the monies that were lost after the famous Ponzi style company collapsed over two years ago.
Perera, who was the Deputy Chairman and CEO of Golden Key, told The Sunday Leader in March 2009 that all monies lost by depositors ‘can be reclaimed’.
However at that point he did not deny knowing that a scam was taking place at Golden Key even while he was cajoling investors to bring their money in. He said that Chairman Lalith Kotelawala used him as a scapegoat, and tried to shift most of the blame for the scheme to him.
The latest interaction between the erstwhile leaders of Golden Key and their former investors has brought an all new twist into the equation. According to Dushyanthi Hapugoda, president of the Golden Key Investors Society, the board has stated that the actual amount to be paid back is far less than the previously stated Rs 26 billion. ‘The board has said that the actual amount is much less than Rs. 26 billion since some investors have taken loans from Golden Key which they have not repaid’.
The initial estimate of Rs 26 billion was calculated by the Central Bank, based on documents submitted by investors detailing the amount they had invested with Golden Key. However the Board of Directors at Golden Key is now saying that many of those investors did not divulge the large loans they had taken and not repaid, to the Central Bank.
It has been almost two years since the Golden Key financial scandal rocked the island and former investors of Golden Key are struggling to make ends meet. Each investor has been paid a sum of Rs. 100,000 so far. In most cases, this is only a fraction of their investment. The Central Bank has helped set up a front company for the investors to operate and to turn a profit. But the special investment vehicle is yet to fully take off after its initiation in September.
Hapugoda, president of one of two prominent investor societies said in October, ‘if desperate investors take over the running of the company now, no one will be willing to invest in it. We will need at least one year to perform well and then consider entering into the stock market. This is why we have appealed to the President and the Governor of the Central Bank to help us form a board of prominent businessmen to add credibility and efficiency to the organisation. Only then will we be able to make any serious headway.’
The investors are still in the process of acquiring Golden Key’s assets into their new company. This process has been long drawn and arduous due to incorrect valuations of assets submitted by Lalith Kotelawala and also due to the drop in asset prices following the effects of the global recession.
Khavan Perera refused to comment when contacted, citing ‘legal reasons’. A meeting between the investors and the board is scheduled to take place on January 15. Hapugoda, speaking to The Sunday Leader on Thursday (30) said that the Board had asked for five years to repay the money but added the investors have insisted they pay it back in three. ‘The parties are involved in sorting out the exact amounts due. We will discuss matters further at the meeting. We are very grateful to the Presidential Secretariat, the Attorney General and the Governor of the Central Bank for taking a personal interest in our case,’ Hapugoda added.
By: Sara on January 2, 2011
at 1:15 am
Business Times
Ray of hope for GK depositors under new payment proposals
By Bandula Sirimanna
Shedding a ray of hope for disgruntled depositors of Golden Key Credit Card Company Ltd, (GKCC), former directors of the collapsed company, have now come up with an alternative payment plan. This plan will be submitted to the Central Bank for its approval on January 18, informed sources said.
According to this repayment plan, all deposits at the rate of between 25% to 100% will be repaid within four years at 6% percent interest considering the amount and the period of deposits. Depositors who made deposits shortly before the collapse of the company will be given priority under the repayment plan, sources added.
President of Golden Key Depositors Society Anusha Emmert told the Business Times that they will hold meetings to create awareness on this plan among depositors and to get their consent. She said that this was the first time that the GK directors have stepped in to find some redress to them and the depositors should grab this opportunity. If the directors fail to make the repayment, they will have to go to jail, she said. Two years have passed since Golden Key crashed but depositors have so far received only a single repayment of Rs.100, 000 each. How long can they wait without money for their day-to-day living, she asked?
Dushyanthi Hapugoda, President of the GKCC All Depositors Association said that they are also fully endorsing this move which is based on the Central Bank Governor’s way forward plan. It will be beneficial for all depositors and no one should pay money to any GK Association to get their money or to obtain details of the plan as it will become a public document after the endorsement of the Supreme Court, she said.
The Attorney General’s (AG) Department is now in the process of making the final adjustments to the indictments to be filed against Lalith Kotelawala, his wife Sicille and other Golden Key directors for fraud, criminal misappropriation of funds and breach of trust, AG’s Department sources said.
The three-member Committee of Chartered Accountants will meet with the Golden Key directors and representatives of the two GK Depositors Associations on January 18 to discuss pros and cons of the plan, before presenting the document to the Supreme Court when the Golden Key Fundamental Rights (FR) case resumes on January 28, a senior official of the Central Bank said.
When the case was taken up in the Supreme Court on December 3, Justice Shiranee Tilakawardena, who heads the three-member bench, directed the Golden Key directors to submit the alternative repayment plan on the agreed date, January 18. A written undertaking given by the directors to the Committee was also placed before the Supreme Court. Justice Tilakawardena directed that every effort should be made to ensure that depositors are granted relief.
The former directors led by Kavan Perera, Deputy Chairman and CEO of this crisis-hit company which folded up in December 2008, had a series of meetings with Central Bank and Committee officials, Mangala Boyagoda, the professional fund manager appointed by the Supreme Court, and representatives of depositors in December last year before formulating the payment plan. Business Times
Ray of hope for GK depositors under new payment proposals
By Bandula Sirimanna
Shedding a ray of hope for disgruntled depositors of Golden Key Credit Card Company Ltd, (GKCC), former directors of the collapsed company, have now come up with an alternative payment plan. This plan will be submitted to the Central Bank for its approval on January 18, informed sources said.
According to this repayment plan, all deposits at the rate of between 25% to 100% will be repaid within four years at 6% percent interest considering the amount and the period of deposits. Depositors who made deposits shortly before the collapse of the company will be given priority under the repayment plan, sources added.
President of Golden Key Depositors Society Anusha Emmert told the Business Times that they will hold meetings to create awareness on this plan among depositors and to get their consent. She said that this was the first time that the GK directors have stepped in to find some redress to them and the depositors should grab this opportunity. If the directors fail to make the repayment, they will have to go to jail, she said. Two years have passed since Golden Key crashed but depositors have so far received only a single repayment of Rs.100, 000 each. How long can they wait without money for their day-to-day living, she asked?
Dushyanthi Hapugoda, President of the GKCC All Depositors Association said that they are also fully endorsing this move which is based on the Central Bank Governor’s way forward plan. It will be beneficial for all depositors and no one should pay money to any GK Association to get their money or to obtain details of the plan as it will become a public document after the endorsement of the Supreme Court, she said.
The Attorney General’s (AG) Department is now in the process of making the final adjustments to the indictments to be filed against Lalith Kotelawala, his wife Sicille and other Golden Key directors for fraud, criminal misappropriation of funds and breach of trust, AG’s Department sources said.
The three-member Committee of Chartered Accountants will meet with the Golden Key directors and representatives of the two GK Depositors Associations on January 18 to discuss pros and cons of the plan, before presenting the document to the Supreme Court when the Golden Key Fundamental Rights (FR) case resumes on January 28, a senior official of the Central Bank said.
When the case was taken up in the Supreme Court on December 3, Justice Shiranee Tilakawardena, who heads the three-member bench, directed the Golden Key directors to submit the alternative repayment plan on the agreed date, January 18. A written undertaking given by the directors to the Committee was also placed before the Supreme Court. Justice Tilakawardena directed that every effort should be made to ensure that depositors are granted relief.
The former directors led by Kavan Perera, Deputy Chairman and CEO of this crisis-hit company which folded up in December 2008, had a series of meetings with Central Bank and Committee officials, Mangala Boyagoda, the professional fund manager appointed by the Supreme Court, and representatives of depositors in December last year before formulating the payment plan.
By: Sara on January 9, 2011
at 5:06 am
Repayment plan for Golden Key depositors
Charumini DE SILVA
Former Golden Key Directors are in the process of implementing a re-payment plan for the Golden Key credit cardholders based on the company’s assets.
The Golden Key Credit Card (GKCC) Old Depositors Association President Dushanthi Hapugoda told Daily News Business that the depositors are very pleased with the President, the Central Bank Governor and the Attorney General for personally attending to this issue.
With the Government intervention in the Golden Key credit card issue the former directors have now appeared to provide a solution, which will benefit all depositors who are registered under the Central Bank.
According to GKCC Old Depositors Association President Dushanthi Hapugoda former directors will present the repayment plan on January 15 to the depositors and on January 18 they are planning to present it to the Committee of Chartered Accountants and also to the Central Bank Governor. She said if all these parties are approving the re-payment plans of the former directors; the proposal will be put forward to the Supreme Court’s approval.
She said all the Golden Key depositors who have not registered yet under the Central Bank needs to register them selves to benefit from this repayment plan.
The GKCC Special Purpose Vehicle (Pvt) Ltd. was registered in August 2010 to manage the assets of Golden Key Group and the depositors are the shareholders of this company.
By: Sara on January 12, 2011
at 6:02 am
Latest doing the rounds is that Anusha Emmert and Ex Co of GK Depositors has got Rs.50 million from Khavan & Co so that they will stay out of Jail .
This is what Lalith K offered at the very inception capital minus interest paid .Now anusha is getting 80% her deposit has she had deposited her funds in 2008 and balance from from 50 million rcvd for her and the Exco of GK Depositors Association .
Dushanthi Hapugoda received Rs.1.7 million at the begining , Nilame and Shiran (Secratary) has been the only two honest people out of rotten pack of scavengers who completely mishandled this issue through dim witted thinking and personal agenda’s .
By: Mahinda on January 21, 2011
at 11:32 am
Hoodwinked Again?
Golden Key Depositors Cry Foul
Lalith Kotelawala AND Khavan Perera
Golden Key are at it again: first it was a complete swallow up of depositors’ security deposits and now it is a convoluted repayment plan. This repayment plan, upon closer inspection, is a deceptive piece of writing, claim some depositors who have analyzed it, and who are of the opinion that it is “nothing but a delaying tactic.”
By Gazala Anver and Maryam Azwer
Speaking to a few depositors, it is clear that they don’t want any more fairy tales or excuses: all they want is at least 75% of their security deposit back. But in this case, all they will receive two years after being cheated is a crooked repayment scheme, which some accountants even describe as “a plan designed with a lot of escape routes,” and “a whole load of crap.”
The Sunday Leader is in possession of a copy of the repayment plan, parts of which have been reproduced for clarity’s sake. In summary, apart from the terms and conditions stating that for repayment there should be complete stability of social, economic, legal and political factors, the document goes on to discriminate against some depositors according to the size and the age of the deposit.
To cap it all, how Golden Key plans to fund the repayment plan is vague. The proposals include a list of probable means of funding for repayments. These include: realisation of all assets of the Golden Key Group, the disposal of assets of the Ceylinco Group as per existing Orders of the Supreme Court, and the generation of funds by the Public Listing/ Forming of Joint Ventures by certain Golden Key Group Companies.
GKCCCL also claims that “It is expected that this proposal will be successfully completed at the end of the financial year 31.03.2015.”
Other issues include a statement which claims that the security deposit is in fact a 10 year loan given to the company, something which depositors say was never a part of the conditions they initially agreed to.
Despite several attempts CEO of GKCCCL, Khavan Perera, could not be contacted.
The public’s outrage at Kotelawala and Protesters gather outside Golden Key headquarters
Positive Response Or Desperation?
According to President, GKCCCL All Depositors Association, Dushyanthi Hapugoda, some depositors have agreed to the proposal despite being dissatisfied with this plan because they feel that this is all they are going to get. “We are against the whole idea of our interest being deducted. But if we expect a bankrupt company like GK to pay us all Rs. 26 billion, we will have to wait another 20 years, which is why we have agreed to accept this proposal,” she said.
A depositor and businessman who wished to remain anonymous was also of the opinion that this is “a really unfair deal.” He said people would have agreed to this on the basis that they have gone without a single payment for the last two years. “They probably feel that something is better than nothing. Golden Key is getting the best deal from this situation.”
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Terms, Conditions And Assumptions
Below are the basic terms, conditions and assumptions set out in the Golden Key repayment proposal, the fulfillment of which, the company claims, the success of the plan would depend on:
Terms, Conditions and Assumptions of the Proposal
The directors are of the view that the success or otherwise of the Proposal forwarded is subject to the following terms, conditions and circumstances as the case may be.
General
Political stability of the country
Government policies that may be introduced in the future
New Regulatory provisions that may come into being
Economic performance of the country
Legal
No legal impediments unknown or unseen that will prevent or retard execution of the proposal at present.
No legal action will be sought by any party or parties with vested interest against GKCC and or any of its subsidiary or its directors and the staff that would jeopardize the implementation of the proposal.
Any encumbrances that may be attached to any of the properties tangible or intangible, if any, at present will be cleared in favour of GKCC.
Ability of GKCC and/or its subsidiary company to sue any party or parties with a view to recover its assets.
Money Market and Capital Market
Performance of the Colombo Stock Exchange (CSE)
Stable Interest Rates
Stable Inflationary Rates
Stable Exchange Rates
Business, Financial
Ability to obtain the best price for the properties, tangible and intangible.
Ability to obtain such prices on or before the required time line.
Success or otherwise of the performance at each of expected IPOs. Business and financial performance of each enterprise in the post IPO scenario.
Further the ability of the Proposal to reach each milestone in repaying Security Deposit Holders will depend on the determination of Hon. Supreme Court on 27th January 2011.
Taking even just these demands into account, a number of depositors have expressed their lack of faith in the proposal. Retired accountants Ransiri Gunasekera and Ayanthi Gunasekera, say that such steep terms cannot ever be met. “Even the government cannot give such undertaking,” explained Ransiri. “If the proposal is contingent upon these conditions being met, it is doomed to failure. No business venture in the world has ever been given such carte blanche to ensure success of their business,” he stated.
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Confusing Calculations
Depositors call the repayment calculations convoluted and are of the opinion that some people who accepted the proposal probably don’t understand the calculations. “We are accountants and even we have trouble understanding how they plan on getting about this,” Ayanthi Gunasekera, who together with her husband also had deposited monies in Golden Key, all of which they lost.
“Interest on the deposit (is) to be calculated at 6% per annum, from the day the deposit was made,” Ayanthi Gunasekera said. She added that if the depositor initially received 16% interest, the depositor will now have 10% subtracted from their security deposit.
“The interest transacted by the customer could be anywhere from 12% to 20% at the beginning, when it was only a credit card company. In this scheme all deposits over about 7-8 years old get wiped out,” said Ayanthi.
The proposal also states: “Another aspect taken into consideration in arriving at an acceptable solution is the ‘conversion’ from a ‘high risk high return’ situation to a ‘low risk low return’ scenario. Interest will be adjusted to 6% per annum for rebates already paid and for payments to be made in the future. This is in keeping with the average rate of interest on savings accounts during the relevant period. The rate of interest charged from customers for loans taken will also be adjusted to 6% when computing the amount payable to the customer.”
“This is certainly not the average interest for this period, and what is the relevant period?” asks Ransiri Gunasekera. “Some depositors placed their deposits in 1997 and during the ensuing period even bank interest rates went upto 24% and NSB was also paying this rate, then it hovered between 18-20 % and currently is down to about 10%. From where and how did they arrive at 6% and for which period?” he asked.
Another depositor, who said she wished to remain anonymous, said, “I am totally confused. I am not interested in the interest I have lost over the last three years. If I could be paid at least 75% of my capital, I’d be happy.”
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Big Or Small, Ceylinco Does Not Protect Them All
“The proposals envisage an equitable method of repayment to ensure that there is no discrimination among customers,” is what Golden Key claims in their repayment proposal. The rest is merely contradiction. “The ‘Age’ of the deposit and not the ‘Size’ would be the main criteria in computing the liability to each individual customer,” the statement continues.
This statement in itself is discriminatory, the Gunasekeras say. “If there is no discrimination in the proposal, how did they give priority to age and not size of deposit? This in itself is discriminatory. All depositors big or small rank equal in the eyes of the law.”
The proposal also goes on to claim that “the benefits from the deposit, that would have accrued to each individual customer, would be in direct proportion to the period of having maintained an account with the company. Furthermore, a customer who had a small account with the company is not necessarily a ‘small’ customer, because that individual could have savings/deposits with other institutions.”
“The proposal speaks of benefits as though the company was engaged in charity,” Ransiri Gunasekera said. “They conducted a business and collected funds in return for which a return was paid, as must be. The duration of the deposit was determined by the customer as he wished, subject to of course whether the deposit was placed for a fixed period as in a fixed deposit. Even in this case the customer has the discretion either to renew or withdraw his deposit. This is a purely hypothetical assumption; by the same token do they accept that a retired private sector employee, who invested all his retirement funds with the company in return for a monthly return, and who did not have any savings in any other institution, is not necessarily a ‘big investor’?”
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Proposal Writ On Water?
How GKCCCL plans to fund this repayment proposal is as yet vague to many depositors. Below is an excerpt from the proposal as to how they plan to carry on this undertaking. It is yet unclear if the previous board of directors will take the reigns of this operation yet again, but the document does imply this. In this there is also mention that according to how they choose to pay back their depositors, a Holding Company will have to be established. A basic outline of the alternatives the company has, as well as how the computations will be done, are also in the document. According to an analysis however, the plans are riddled with loopholes and apart from discriminating and including allegedly unsound explanations, a lot depends, as previously pointed out, on IF certain external factors comply.
According to this proposal:
“The funds for making the payments will come from a number of sources; the disposal of assets of the Golden Key Group, the disposal of certain assets of the Ceylinco Group as per existing orders of the Supreme Court and by Initial Public Offerings of certain companies and projects of the Golden Key Group.
“The current stable political and security environment coupled with strong macro-economic fundamentals and the outstanding performance of the Colombo Stock Exchange provides a lot of opportunity and reasons to be optimistic about the possibility of raising substantial funds from IPOs and the sale of shares. The Securities and Exchange Commission and the Colombo Stock Exchange made recent announcements about reforms and expansion which may have a further beneficial impact on IPOs that are envisaged by us.
“The smooth and successful implementation of these proposals, depending on the alternative that is selected, would require the establishment of a Holding Company for the Golden Key Group under which certain other companies of the group will be controlled either individually or in clusters. The Boards of Directors of the respective companies should comprise of some of the existing directors, and independent directors to be appointed from among eminent personalities to enhance credibility and transparency. “A Monitoring Committee comprising of Customer Representatives should also be established to liaise and co-ordinate with the Board of Directors and to monitor the implementation of the Repayment Plan.”
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From Rs. 26 Bn To 13 Bn Or Less
\ For the past two years, the depositors have protested saying that the company owes them as much as Rs. 26 billion. But in yet another fraudulent twist, the company claims that the total liability to its customers does not exceed Rs. 13 billion. Furthermore, GK has arrived at this figure, in their own words, “according to computations done, based on limited access to relevant information.”
Golden Key claims that “the maximum liability or amount to be repaid to customers would be Rs. 12,558,225,480.”
“This amount may reduce significantly when a detailed analysis is carried out of every single customer account to ascertain the date on which each security deposit/component of security deposit was placed and the rate of rebate applicable to same.”
By: adobo on January 23, 2011
at 11:55 am
GK depositors in for bonanza
by Shirajiv SIRIMANE
The Golden Key depositors have been assured that their dues would be repaid in installments.
President of the All Depositors Association, Dushanthi Hapugoda said that this is the best news they received after nearly two years.
We were just paid in driblets and there was no concrete plan to settle our dues. However with this proposed re-payment plan we are assured that we would get a larger share from our deposits, she said.
She said that the former CEO of Golden Key, Karvan Perera has assured they would also be paid an interest of six percent. According to the settlement plan which is being proposed 30 percent of the total deposit would be paid this year in two installments. This would be made in June and December. The remaining deposits would be made in the following three years.
This would be done through selling of assets and revenue collected by formulating a Golden Key Holding Company. We must also thank President Mahinda Rajapaksa, Secretary, Lalith Weeratunga, Governor Ajith Cabraal and Attorney General Mohan Pieris. She also added that they were very disappointed with the some of the Ceylinco high ranking officials who were turning a blind eye for this issue.
By: adobo on January 23, 2011
at 11:55 am
Excess interest payments already made to be discounted from the capital : Golden Key proposes refund of deposits on flat 6% interest under 4-year plan
January 22, 2011, 6:49 pm
by Suresh Prera
Golden Key (GK) is now proposing the refund of deposits on the basis of a flat 6% interest rate payable from the date deposits were made. All excess interest payments already made will be discounted from the capital, creating a “strange situation where some depositors might find that they owe GK rather than the other way around”. The GKCC All Depositors’ Association headed by Ms. Dushanthi Hapugoda and GK Depositors’ Society led by Ms. Anusha Emmert signed the final amended draft on Friday at the Colombo office of Wealth Lanka Management. GK CEO Khavan Perera and Saradha Sumanasekera were also present, but Kotelawala, Mrs. Padmini Karunanayake and some other directors had signed the document earlier in the day.
Available estimates suggest that over 2,500 investors will see their entire hard-earned holding wiped out as the move to readjust the interest rate will reduce their capital balance. However, after much persuasion, the directors agreed to pay these investors a minimum 25% of their deposits as a degree of relief, during formal talks with depositor’ representatives.
The 25% gesture of consolation offered by GK directors effectively means that a customer, who had, for example, deposited one million rupees, will receive only 250,000 rupees during the four-year repayment plan because his/her balance will be reduced to minus as the interest paid to such depositors had exceeded the value of their deposits.
The final repayment scheme, which offers a ray of hope to struggling GK depositors, has emerged more than two years since the collapse of this Ceylinco subsidiary in December 2008.
Offering an explanation on the decision to trim the interest rate to 6%, the directors maintain that this is in keeping with the average rate of interest on savings accounts during the relevant period. The rate of interest charged from customers for loans taken will also be readjusted to 6% when computing the amount payable to them.
However, contrary to their own “average rate of interest on savings accounts in the relevant period” assertion, the directors have, in an annexure to the repayment plan titled, “Underlying Presumption of the Proposal” – Indicators on Financial – Monetary Policies, describe the interest regime in 2008 as HIGH in comparison to low in 2011.
“This clearly shows that the directors have attempted to paint a grim picture of low interest rates at a time they were on an unprecedented high trend to justify their bid to deprive struggling depositors of their life savings, when elsewhere in the proposal they themselves admit that rates were high”, the sources pointed out.
“We would have offered 3% – 4% more than the market from 2007 onwards because, in any case, the interest regime had peaked at the time”, a senior official associated with GK said. “Depositors could have negotiated with any bank or financial institution and secured a higher rate”.
“We also did that on big deposits”, he recalled. “It was the pattern at the time”.
There was no difficulty in attracting customers because GK belonged to the Ceylinco Group, a part of Lalith Kotelawala’s empire at that time, but to say the average interest rate was 6% is sheer nonsense, he noted. “We didn’t accept deposits from people on the promise of offsetting the interest against their capital – this is a crime”.
Asked about GK depositors who had obtained loans, he said it was relatively insignificant – far less than 20% of the total number”.
“After being denied the interest plus capital for over two years, we are now being forced to ‘donate’ our money for the directors to save their skin”, irate depositors protested. “It appears that Kotelawala and his team had a grand time all these years on our account”.
“Our capital would have been safe and intact if we had instead kept it under the pillow”, they noted. “With 26 billion rupees in deposits gone missing, they continue to take us for a ride”.
“This is the price we have to pay for trusting a Ceylinco subsidiary which was mustering public deposits under the nose of the Central Bank for two decades plus”, they said. “It appears to be worse than a ponzi scheme”.
Repeated calls to GK CEO Khavan Perera’s mobile went unanswered. There was no response either to an email sent to him seeking his comments. It was Perera who led the team of directors for discussions with the two depositor’ associations.
Customers will initially receive 30% of their “agreed upon security deposit liability” in 2011 with the balance 70% in equal amounts in 2012, 2013 and 2014. Of the 30% payable in 2011, 15% will be paid on or before June 30 and the balance 15% on or before December 31 2011, subject to obtaining the necessary approvals from the relevant authorities, according to the proposed repayment scheme.
“The dates for payment in 2012, 2013 and 2014 will be decided jointly by the Directors of the Holding Company and the Monitoring Committee. Interest at 6% per annum will be applicable on the balance outstanding with effect from January 1, 2012″, it noted.
The ‘age’ of the deposit and not the ‘size’ would be the main criteria in computing the liability to each individual customer. This is because the benefits from the deposit that would have accrued to each individual customer would be in direct proportion to the period of having maintained an account with the company, the directors say.
“Furthermore a customer who had a small account with the company is not necessarily a ‘small’ customer, because that individual could have savings/deposits with other Institutions”.
According to computations done, based on limited access to relevant information, the maximum liability or amount to be repaid to customers would be over 12.5 billion rupees. This amount may reduce significantly when a detailed analysis is carried out of every single customer account to ascertain the date on which each security deposit/component of security deposit was placed and the rate of rebate (interest) applicable, they noted.
As an alternative, it has been suggested by them that identified companies and assets be transferred into one Holding Company and shares issued to customers in proportion to their agreed upon security deposit liability. The company would be listed on the Colombo Stock Exchange by December 31 2011.The present directors would not be responsible for value creation in this alternative.
Another alternative would be the sale of all assets/companies of the Golden Key Group and a few assets of the Ceylinco Group and others covered by existing orders of the Supreme Court. It is envisaged that all assets could be disposed of by December 31 2012. Customers will receive a minimum 85% of the “agreed upon security deposit liability”; 30% in 2011 and the balance 55% in 2012.
Funds to honour repayments commitments will come from a number of sources; the disposal of assets of the Golden Key Group , Ceylinco group as per existing Supreme Court orders and by Initial Public Offerings of certain companies and projects of the Golden Key Group.
Though the directors had earlier spoken of raising about three billion rupees on their own to breathe more life into the repayment scheme, this is not evident in the repayment plan which lists existing assets and properties. Proceeds from the sale of Ceysands Hotel (Rs. 600 mn) and three floors of Ceylinco House (Rs 300 mn) have also been included though they were earlier meant to be used to pay another 100,000 rupees each to depositors.
The final draft of the repayment plan will be placed before the Supreme Court for approval when the GK FR plea resumes on January 27.
By: adobo on January 23, 2011
at 12:17 pm
Have Dushani and Anusha Played us all out??????
By: adobo on January 23, 2011
at 12:18 pm
So Is this a unique case of taking from the poor to
settle the rich?
In the Madoff case the rich voluntarily gave money to settle the poor .The government machinery went after them so effectively the son could not even live in a plush Manhatton apartment ,he committed sucide. Our Golden Key thieves
Are living in plush homes of course bought with our money and throwing parties. Thre are actually real people going for these birthday bashes and eating food bought with stolen money!!!!! Where are those Sinhala buddhist lot? why no noise? is it because these are greedy investors?
Think about it those big time boys could have gone to NSB and still lived a good life with the interest. It is the poor small time guys who lived every month with the money who are getting played out by the Deshamanyas!
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Hi everybody I do not know who asked this question. But I don’t know about Dushyanthi. I was concerned about Anusha’s comment to the Sunday Times She had said that it was a good deal. The sunday Times should have asked her when she deposited the money. I will bet my boots it was about a year or so before the collapse!
She had also said that ,under these circumstances ,there was nothing else she could do. May be so.
She goes on to say that only about 3% of the depositors would get affected. she has said these people who deposited the money in the early years, got high interst rates.
WRONG
How can she say this .? The leagal business on Golden key is credit card business
Circa 1997 GKCC was the first and only credit card company authorised by the Central bank to issue and operate credit cards for both local and international use. Much prior to commercial banks being given approval to issue the international Visa card GKCC was authorised and was issuing the international Visa card. As a security for the issuance of this card which permitted overseas usage, as well, the company solicited and obtained a security deposit to indemnify themselves against default/overspending etc. In turn they paid a nominal rate of return termed a rebate, which was credited to the credit card expense account.
This rate was lower than the going interest rates paid by banks and finance companies at that time. As further inducements to promote the usage of their credit cards the company also offered a life insurance policy to the value of Rs 250,000/= to the cardholders through the Ceylinco insurance company, another company within the group.( copy attached) They subsequently increased the rebate and offered many other facilities as is common today, like cash advances, complimentary cards to spouses, and the waiving of joining fees etc to enhance their business and promote the usage of their cards. GKCC earned huge revenues from suppliers when clients used the credit cards both locally and overseas in addition to commissions and penalties charged to clients. This was the business that they claim, they were legitimately engaged in, in response to the inquiry conducted by the Central Bank of Sri Lanka (CBSL), as reported in the media. In hindsight we now realise that this was an obvious ploy to circumvent the CBSL regulations pertaining to finance companies.
At the time all interst rates in the country were high. As Anusha correctly says the 3% who are early
depositors,are the genuine ones. The Big Boys with the High interst rates are the ones who deposited within the last four years
By: Ayanthi on January 24, 2011
at 10:46 am
Well Said Ayanthi, please note that Dushanthi/Dushani is also endorsing this deal. She has worked very very close with Khavan P/ Wealth Mgmnt to formulate this. I hope the Hon Jusitce’s will realise this fraud! So LK Khavan Sarada Padmini are all going scot free after this and enjoy with stolen money!!!!!
By: adlib on January 24, 2011
at 11:24 am
I want to ask one question from Mr Mohan Peris. Can I also a citizen of Sri Lanka ,rob somebody or kill somebody, then broker a deal with the parties concerned ,pay a pittance of what I stole , and get off Scot free? Is this the sri Lankan Legal system?
Even if Lalith pays what ever, so far the figure given is a guestimate. If the amount owing is 12.9 billion and he takes 75% off a 4000 small time depositors, I would think he would not have to pay more than 5 1/2 – 7 1/2 billion? So he is still a thief.
So will he still go to prison? if not, why not.
By: Ayanthi on January 24, 2011
at 1:25 pm
I just got a call from Dushyani she says she is not for the proposal but she had been told unless she agrees with this proposal she will be held responsible for depositors not receiving their much awaited moneys. I also heard that Anusha had invested two months before the date of GKCC collapse! Is it a wonder she dismisses the Original/ genuine depositors as 3% (inaccurate) and the cockeyed scheme as a good one?
By: Ayanthi on January 24, 2011
at 2:40 pm
The Golden Key Credit Card Company Ltd
Proposal for Repayment of Security Deposits
These Proposals for the repayment of Security Deposits which remain unpaid due to the abrupt termination of the operations of the Golden Key Credit Card Company Ltd in December 2008 have been formulated by the Directors of the company in consultation with Representatives of the Golden Key Depositors Society and the GKCC All Depositors Association .The discussions between the Directors and the Customer Representatives were initiated and facilitated by Mr Mangala Boyagoda, Director of Wealth Lanka Management (Private) Limited.
We have been guided in this process by the Way Forward Plan initiated by the Governor of the Central Bank of Sri Lanka and approved by His Excellency the President in October 2010.
Three Alternative Proposals are included in this document and the objective has been to try and ensure that every Customer of GKCCCL who placed a Security Deposit for the purpose of obtaining a Golden Key Gold Card, would, taking into consideration all payments(all payments cannot include rebate/interest paid as repayment of capital) made by the company to that Customer, receive a sum in excess of the Security Deposit placed, along with a reasonable return on the amount deposited. This would be in addition to the numerous benefits( use of a credit card is not a benefit, it was a legally binding contract which the company entered with the customer. In return for the usage of the card the company earned enormous profit, that was the nature of their business) that Customers enjoyed with their Golden Key Cards.
All Golden Key Customers were able to transact on credit at over 4000 Merchant Outlets in Sri Lanka .Among the Special Benefits available to them was the facility to obtain Holiday and Travel Packages on concessional and convenient payment terms, Educational and Medical facilities on easy payment schemes and a very popular scheme for purchasing a wide range of Consumer Durable items on interest free easy payment schemes.( Similarly the company earned enormous profits and interest on loans, profits on airtickets sold and holiday packages and on the medical facilities used and the interest from the 4000 merchants who accepted their cards and default interest on delayed payments etc))
The Proposals envisage an equitable method of repayment to ensure that there is no discrimination among Customers .The ‘Age’ of the deposit and not the ‘Size’( if there is no discrimination in the proposal how did they give priority to age and not size of deposit, this in itself is discriminatory. All depositors big or small rank ”pari passu “ or rank equal in the eyes of the law )would be the main criteria in computing the liability to each individual customer. This is because the benefits from the deposit that would have accrued to each individual customer would be in direct proportion to the period of having maintained an account with the company( The proposal speaks of benefits as though the company was engaged in charity.They conducted a business and collected funds in return for which a return was paid, as must be. The duration of the deposit was determined by the customer as he wished subject to ofcourse whether the deposit was placed for a fixed period as in a fixed deposit. Even in this case the customer has the discretion either to renew or withdraw his deposit) .Furthermore a Customer who had a small account with the company is not necessarily a ‘small’ customer, because that individual could have savings/deposits with other Institutions.( This is a purely hypothecal assumption, by the same token do they accept that a retired private sector employee who invested all his retirement funds with the company in return for a monthly return and who did not have any savings in any other institution is not necessarily a “big investor”?
The funds for making the payments will come from a number of sources; the disposal of assets of the Golden Key Group ,the disposal of certain assets of the Ceylinco group as per existing Orders of the Supreme Court and by Initial Public Offerings of certain companies and projects of the Golden Key Group.
The current stable political and security environment coupled with strong macro-economic fundamentals and the outstanding performance of the Colombo Stock Exchange provides a lot of opportunity and reasons to be optimistic about the possibility of raising substantial funds from IPO’s and the sale of shares. The Securities and Exchange Commission and the Colombo Stock Exchange made recent announcements about reforms and expansion which may have a further beneficial impact on IPO’s that are envisaged by us.
The smooth and successful implementation of these Proposals, depending on the Alternative that is selected, would require the establishment of a Holding Company for the Golden Key group under which certain other companies of the group will be controlled either individually or in Clusters. The Boards of Directors of the respective companies should comprise of some of the existing Directors, and Independent Directors to be appointed from among eminent personalities to enhance credibility and transparency.( The existing directors have ceased to be eminent personalities and are accused and litigants in a major fraud the magnitude of which this country has not witnessed, permitting them custody of the remaining assets would be akin to giving the the fox the chicken coop for safekeeping, they can act in a consultative capacity with no executive power. Besides the new companies law will i am sure disqualify these persons from acting as directors)
A Monitoring Committee comprising of Customer Representatives should also be established to liaise and co-ordinate with the Board of Directors and to monitor the implementation of the Repayment Plan.
A description of the Proposals is given in the subsequent pages along with relevant Schedules.
1) Payment to be received by Customers
(a) Methodology of computing payment
(b) Payment to customers who received payments monthly
(c) Payment to customers who did not receive monthly payments
(How can you make s distinction between customers who opted to receive their interest monthly from those who re-invested their monthly interest into their capital) Is there a difference between someone who places a deposit in a bank for a five year period and opts to either take interest monthly(obviously the rate would be lower) and some one who opts to take the deposit on maturity?)
Can the bank assume that the former received a special benefit as GK tries to make out, and deduct the monthly payments from the capital?
2) Alternative Proposals
3) Sources of Funds to meet payments
(a)Realization of Assets of the Golden Key Group
(b)Disposal of Assets of Ceylinco Group as per existing Orders of the Supreme Court
(c)Generation of Funds by Public Listing /Forming of Joint Ventures by certain Golden Key
Group companies
4) Pre-requisites for successful implementation of Repayment Plan
5) Schedules
Payment to be received by Customers
(a) Methodology of computing payment
The abrupt termination of the operations of the company has created a situation where the closure of accounts and the refund of the respective Security Deposits could not be carried out in accordance with the established procedure and practice adopted for over 20 years.
According to this Procedure, a Customer who wanted to close an account with the company would surrender the relevant Gold Card and would receive a refund of the respective Security Deposit within 30 to 60 days of surrendering the Card( This requirement was implemented much later, at the time the early contracts were entered into in 1997/1998 periods the refund was within 24 hours. As the company was getting into difficulities they implemented the 30 day notice and thereafter to 60 days) .This notice period was required to ensure that all transactions carried out at Merchant outlets using that particular Card were debited to the relevant Gold Card account prior to releasing the Security Deposit.
With the termination of operations and consequent impact on the cash-flow of the company, it has become necessary to formulate a scheme for repayment of Security Deposits on a different basis, whilst ensuring that customers receive a reasonable return and are treated in a non-discriminatory manner.( When you give priority to one group of depositors over another it is certainly discriminatory)
The following criteria would form the basis on which the methodology of computing the repayment would be based:
Date of placing Security Deposit./Period of Deposit( No period was specified when accepting the deposit and the assurance was that the deposit would be refunded on demand)
Rate of Rebate applicable to the Security Deposit
Whether Rebate was withdrawn monthly ( What bearing has that got, that is the prerogative of the depositor, and he may have re-invested the funds because he may not have an immediate financial need. By the logic of GK THESE would be affluent depositors who did not need money)
The ‘size’ of the Security Deposit was not taken into consideration as a Customer with a relatively small account with the Company is not necessarily a ‘small timer’ as that customer could have Investments elsewhere, and prioritising based on size could be considered discriminatory( The statement itself is discriminatory by saying prioriising on size is discriminatory and then saying a customer with a small deposit is not a small depositor, as he may have other deposits elsewhere-hypothecal assumption)
According to computations done, based on limited access to relevant information, the maximum liability or amount to be repaid to Customers would be Rs 12,558,225,480/=
This amount may reduce significantly when a detailed analysis is carried out of every single customer account to ascertain the date on which each Security Deposit/component of Security deposit was placed and the rate of rebate applicable to same .
Another aspect taken into consideration in arriving at an acceptable solution is the ‘conversion’ from a ‘high risk high return’ situation to a ‘low risk low return’ scenario. .Interest will be adjusted to 6% per annum for rebates already paid and for payments to be made in the future. This is in keeping with the average rate of interest on savings accounts during the relevant period.( This is certainly not the average interest for this period, and what is the relevant period. Some depositors placed their deposits in 1997 and during the ensuing period even bank interest rates went upto 24% and even NSB was paying this rate, then it hovered between 18-20 % and currently is down to about 10^%. From where and how did they arrive at 6% and for which period? ) The rate of interest charged from customers for loans taken will also be adjusted to 6% when computing the amount payable to the customer.
(b) Payment to Customers who received payments monthly
The benefit( repeatedly “ad nauseum” they talk of a benefit) accruing to a Customer who withdrew the rebate on a monthly or regular basis would be far greater than the benefit enjoyed by a Customer who accrued the Rebate. Furthermore, the quantum of the benefit would increase in direct proportion to the rate of rebate and the period for which the Deposit has been in place.
For example a Customer who opened an account with a rate of rebate of 20% per annum in April 2006 would have received a greater benefit than a Customer who opened an account with the same rate of rebate in April 2007.(The erroneous assumption here is that the rate remained constant irrespective of the year of investment, which was not the case, the company constantly revised the rates and also the minimum investment needed to qualify for the rates)A Customer who opened an account with a rate of rebate of 20% in August 2005 would have received a greater benefit than a Customer who opened an account with a rate of rebate of 18% in the same month.( The rate variance was based on the quantum invested and not on the month invested)
Any Formula for devising a fair and equitable method of repayment would have to take the above factors into consideration and having considered various alternatives it was decided that the most equitable Formula would be the universally adopted formula for computation of Equated Monthly Instalments (EMI).
The Security Deposit placed by a Customer is treated as a 10 year Loan given by the Customer to the Company .The Rebate paid and withdrawn monthly, is treated as the payment of a Loan Instalment by the Company, and this Instalment comprises Capital and Interest. The proportions of capital and interest would depend on the rate of rebate and the balance period of the Loan.( This is in complete variance to the original legal contract entered with the company. At no stage did the company solicit loans from the public for a ten year period to be repaid in monthly instalments. The public would have been insane to accept such a solicitation and lend money to a company at low interest rates when they could have earned much more investing in treasury bills or secured investments in commercial banks.This is such an absurd presumption that it defies logic)
It must be emphasised that the Customer will eventually have received an amount in excess of the Security Deposit placed with the company. The application of this Formula would also have resulted in the elimination of certain Customers who had opened their accounts over 6years ago from the repayment process, due to the quantum of rebates withdrawn by them. It was however decided to pay even those Customers a minimum of 25% of the amount of the Security Deposit placed by them, at the request of the Customer representatives. ( This absurd presumption presupposes that a customer who invests money in a bank or finance company for a five year period @ say a 20% per anum interest, would not get his capital back at the end of five years because he has collected a similar amount in interest over the five years, this will lead to another fantastic judicial precedent where the infamous Sakvithi will also request a similar settlement process)
(c) Payments to customers who did not receive monthly payments
Customers who did not withdraw their rebates on a monthly basis will receive an amount equal to the Security Deposit placed by them along with interest at 6%per annum.
Alternative Proposals
Alternative (1)
This Alternative would involve the restructuring of the Golden Key Group, continuing/resurrecting certain business operations, listing of identified companies on the Colombo Stock Exchange, selling and realization of all remaining assets of the Golden Key Group and a few assets of the Ceylinco Group as per existing Supreme Court Orders.
Customers will receive 30% of the agreed( Has the company prepared such a list and has it been presented to the depositors for acceptance or are these mere numbers and percentages without any substantive basis) upon Security Deposit liability in 2011 with the balance 70% in equal amounts in 2012,2013 and 2014.Interest at 6% per annum will be applicable on the balance outstanding with effect from 1st January 2012.
The companies to be listed on the CSE would be the Golden Key Eye and ENT hospital which will be converted into a multi-speciality hospital, the project at Kirimandala Mawatha which could be developed into a hospital or city hotel, the Teak Plantation in Galewela and the Golden Key IT Cluster. The Directors of Golden Key Holdings Ltd will be responsible for the required value creation in this Alternative. ( The property at Kirimandala requires substantial further investment to get anywhere, from where is this coming? Is there a plan or financial proposal for this?)
Alternative (2)
This would be the ‘Way Forward Plan’ initiated by the Central Bank of Sri Lanka and the Watawala Committee, and would involve the transferring of identified companies and assets into one Holding Company. Shares would be issued to Customers in proportion to their agreed upon security deposit liability, and the company would be listed on the Colombo Stock Exchange by 31st December 2011.The present Directors would not be responsible for value creation in this Alternative.
Alternative (3)
This Alternative would involve the sale of all assets/companies of the Golden Key Group and a few assets of the Ceylinco Group covered by existing Orders of the Supreme Court .It is envisaged that all assets could be disposed of by 31st December 2012.Customers will receive a minimum 85% of the agreed upon security deposit liability; 30% in 2011 and the balance 55% in 2012.
Sources of funds to make payments
The funds required to implement the repayment plan would be generated from the following sources:
(a) Realization of all assets of Golden Key Group( Without a timeline for disposal how can you specify payment dates)
(b) Disposal of assets of Ceylinco Group as per existing Orders of the Supreme Court
(c) Generation of funds by the Public Listing/ Forming of Joint Ventures by certain Golden Key Group Companies
Realization of assets of the Golden Key group
The abrupt termination( Was it the depositors who were responsible for this?) of operations of the Golden Key Group and incarceration of the Directors resulted in the destruction and depletion of assets of the group.
After careful consideration of the various alternatives for generating funds utilizing the assets of the Golden Key Group, the assets to be disposed of in the short term have been identified.
Pricing of assets under this Proposal and its future realizability will depend on political stability and the situation of the capital markets in Colombo. Therefore the pricing of the Immovable Property belonging to the Golden Key Group done by the Directors and mutually arrived at with Representatives of the Customer Groups indicated a total value of Rs 7.72 billion. A copy of a document signed by all Stakeholders agreeing to this valuation is given in the next 3 pages.
Other assets which will generate funds:
Description Amount (Rs) Mn
Sale of vehicles 30
Refund of lease rentals 25
Loans to BDJW Ltd and Ceylinco Design 7
Credit Card settlements 50 Other Debtors(IT companies and Ceylinco Consumer Electronics) 100
Sale of furniture and computers 40
Sale of 2 houses 3
Sale of Generators 10
Sale of Shares in Public Quoted companies 15
Total 280
Other assets which are yet to be identified by the Executive Directors of the respective companies will be identified and disposed of at the earliest.
Disposal of assets of the Ceylinco Group as per existing Orders of the Supreme Court
Proceeds from sale of Ceysands Hotel Rs 600 mn
Proceeds from sale of 3 Floors of Ceylinco House Rs 300 mn
Generation of Funds by Public Listing/formation of Joint Ventures by certain companies in the Golden Key Group
The assets belonging to the following companies of the Golden Key Group could be effectively utilised to generate a substantial volume of funds, a part of which can be channelled towards the repayment scheme.
(a) The Golden Key Hospital Ltd; Eye and ENT Hospital which can be developed into a multi-speciality or General Hospital
(b) Ceylinco Hospitals Ltd; This company owns the property at Kirimandala Mawatha and a partly completed structure which could be developed into a Hospital as originally planned, or into a Hotel taking into consideration the current environment.
(c) Ceylec Ltd; this company owns a 50 acre property with 22000 teak trees in Galewela, and a 60 acre property in Puttalam which could be developed into a Resort.
(d) Golden Key Minerals Ltd; this company owns 6 acres of land in Narammala and sophisticated sand making machinery.
(e) Information Technology Cluster; comprises companies specialising in different aspects of Information Technology and also owns the Intellectual Property Rights to a number of Software packages used locally and internationally.
Schedules indicating the projected fund generation from (a) and (b) above is attached hereto .A more detailed Feasibility Study will need to be carried out once the necessary authority and resources are available to the Directors.
A Schedule indicating the fund generation from the teak property referred to in (c) above is also attached, but a separate Feasibility Study will need to be carried out of the project that could be established using the property in Puttalam.
The funds that could be generated from (d) above has not been quantified as yet and will also require a detailed Feasibility Study, which could be based on a study that was done when this project was contemplated 5 years ago.
An Information Memorandum pertaining to (e) above has been compiled by Wealth Lanka Management (Private) Ltd indicating a value proposition of Rs 2.6 billion for this cluster.
Pre-requisites for successful implementation of the Plan
The following matters would need to be considered and sanctioned by the respective authorities for the successful implementation of the Repayment Plan:
Matters requiring Orders of the Supreme Court
The following is respectfully submitted to the Honourable Judges of the Supreme Court hearing S.C.F.R 191/09 and related cases, for consideration and Orders:
(1) Appointment of Directors to Golden Key Holdings Ltd
It is recommended that the Board of Directors of this company, which will be the Holding company of the Golden Key Group, should comprise of 3 Independent Directors and the 2 existing Executive Directors of the company. The 2 existing Directors are Mr Khavan Perera, Deputy Chairman/Chief Executive Officer and Mr Saradha Sumanasekera, Finance Director. An Independent Director should be appointed Chairman of the Board. Directors would need to be bestowed with all authority in accordance with the Companies Act No 7 of 2007 and the Articles of Association of the Company.
(2) Appointment of Monitoring Committee
It is recommended that a Monitoring Committee comprising of 10 Customers who are Security Deposit holders of the Golden Key Credit Card Company Ltd be appointed to liaise with the Board of Directors and to monitor the progress of the Repayment Plan .Any disagreement with a business decision taken by the Board of Directors will need to be referred to the Supreme Court by a unanimous decision of the Monitoring Committee.
(3) Appointment of Directors to subsidiary companies
It is recommended that the Board of Directors of Golden Key Holdings Ltd be empowered to appoint Directors to subsidiary companies that will continue to operate/be restarted under the re-structuring Plan.
(4) Establishment of Office
It is recommended that the Office of Golden Key Holdings Ltd and The Golden Key Credit Card Company Ltd is set-up at 13 De Fonseka Place, Colombo 4.
(5) Recruitment of staff/Assistance required from former Directors/employees
It is recommended that the Board of Directors of Golden Key Holdings Ltd be empowered to recruit the staff that would be required to implement the Repayment Plan and handle operations of the subsidiary companies .It is also recommended that priority be given in the recruitment process to former employees of the Golden Key Group who possess the necessary attributes for the positions to be filled .The authority of the Court is also requested to obtain the services of some former Directors/employees whose assistance would be imperative for identifying and tracing assets and liabilities of the respective companies..
( Who bears the cost of these operations, salaries and other expenses)
(6) Final Adjudication of claims
It is respectfully submitted that upon accepting this Proposal it be deemed to be the Final Adjudication of all claims of Customers who are Security Deposit holders , against the Golden Key Credit Card Company Ltd and Golden Key Holdings Ltd and its Directors, past and present.
(7) Access to Information /Documents in the custody of the Golden Key Secretariat, Central Bank of Sri Lanka.
It is respectfully submitted that the information /documents pertaining to the Golden Key Credit Card Company Ltd and its Customers and to other companies of the Golden Key Group, which are in the custody of the Golden Key Secretariat at the Central Bank, be returned to the company for the purpose of implementing the Repayment Plan and to continue operations of identified subsidiaries.
(8) Operation of Bank accounts
It is recommended that the Directors of Golden Key Holdings Ltd be authorised to operate the Bank Accounts of the company, and that Directors of subsidiary companies be authorised to operate the Bank Accounts of the respective companies .It is also recommended that funds currently available in the dedicated account of The Golden Key Credit Card Company Ltd be transferred to an account controlled by the Directors of that company. The Monitoring Committee would be kept informed of all disbursements made from these Bank accounts.
(9) Determination and Legal action initiated by Commissioner General of Labour
It is respectfully requested that an Order be issued to stay the action currently initiated by the
Commissioner General of Labour in the Magistrates Courts and to prevent further legal action being initiated as the payments under litigation is provided for in the Payment Proposals.
. (10) Statutory Dues
It is respectfully requested that an Order be issued to the relevant authorities to refrain from initiating action in respect of EPF, ETF, Gratuity, Income and other taxes as provision has been made for payment of same in the Repayment Plan. .
Matters requiring the attention of the Hon Attorney General( The whole plan is designed with this objective in mind)
It is respectfully requested that the Proceedings in Case No B/4136/08 in the Magistrates Court,Mount Lavinia be layed –by pending the implementation of the Repayment Plan.
It is agreed by all the undersigned to this Proposal that, all parties undertake to act towards the full implementation of this Repayment Proposal on the ‘Best effort basis’ and will not ensue any liability to any of the parties to this document.
It is also agreed by all the undersigned to this Proposal that they signed this document having read and having understood the contents of same according to their free will.
By: ayanthi on January 24, 2011
at 3:41 pm
If Mr Watawela was paid 3oo 000 rupees and the other two 150 000 each for two years where are the figures? at the least were they able to ascertain the validity of Kavan’s claim that the loans deducted and credit card bills paid ,the amount owing would be 12.9 billion? For two years did these people count the basic deposits? Is it a wonder the depositos are faced with Hobson’s choice?
By: ayanthi on January 24, 2011
at 3:59 pm
One more clarification!
If This guy or these guys from Ceylinco has the money to pay, How much money is available? what is the cash flow( what they gave was nonsensical . )If so what % of the security deposit can be paid. The guys who did not collect the interest also can be paid may be at 6% but this has to be calculated with every depositors interest at heart and not only of a chosen few. There is no basis in the history of this planet to treat security deposits as loans!!!! what planet has this garbage been picked out of. If the committee of accountants are incapable of doing this we will find some good finance/business guys who will most certainly not dream of charging these salaries from already suffering depositors to give a few scenarios depending on the money available and the time frame suggested.
I will safely bet that all those promoting this has vested int rest. Like Anusha who is supposed to have deposited the money at the end of 2008
By: Ayanthi on January 24, 2011
at 5:18 pm
Dear Anusha .Dushanthi..past two years you were spnding your valuabale time behalf of depositors and you both did great job..we have seen bankrupt finanace companys in the world such as leman brothers’ but depositors got nothing we are fortunate..thank you very much god bless you..
By: jayantha on January 24, 2011
at 11:55 pm
Dear Jayantha these two people were also collecting money to get a fair deal for all subscribers. what happened >? was the money collected to broker a deal forthem selves
By: Ayanthi on March 2, 2011
at 2:09 pm
Sri Lanka’s collapsed Golden Key strikes historic repayment deal
Tue, 2011-01-25 02:33 — editor
News
By Santhush Fernando in Colombo
Colombo, 25 January, (Asiantribune.com):
Many criticize continuing Ceylinco companies under the management of money embezzlers like Lalith Kothalawela, Kavan Perera, despite Central Bank’s Good Governance directives.
In a historic move, directors of Ceylinco Golden Key Credit Card Company (GKCCC) signed a repayment deal with the depositors who have been undergoing untold sufferings during the past two years.
Sri Lanka’s banking watchdog- Central Bank even after a lapse of two years fails to resolve the matter along with crises of four other Ceylinco firms
Speaking to the Asian Tribune , Golden Key Depositors Society (GKDS) President Anusha Emmert said that the deal will ensure between 25 to 100 percent repayment to depositors.
Deposited in or before Percentage entitled to :
2008 December100
2008 January80
2007 December79
2007 January60
2006 December59
1993 December25
According to the deal, GK Chairman Lalith Kothalwela and CEO Kavan Perera had also undertaken to pay interest at the rate of 6 per cent per annum until 2014.
Emmert said that the depositors were really grateful to Mangala Boyagoda for formulating the repayment scheme and bringing about a settlement, which the country’s banking watchdog- the Central, Bank even after a lapse of two years failed to resolve along with crises of four other Ceylinco firms.
Although Golden Key depositors can heave sigh of relief many criticize continuing Ceylinco companies under the management of money embezzlers like Lalith Kothalawela, Kavan Perera, despite Central Bank’s Good Governance directives.
“Kavan Perera, Lalith Kothalwela and other directors, who are now enlarged on bail, will to continue as directors. If one payment is defaulted we ensure that law is enforced against them,” Emmert said.
Five Ceylinco entities – Ceylinco Golden Key Credit Card Company Ltd, Ceylinco Finance and Guarantee (F&G), Ceylinco Investment and Realty (CIR), Ceylinco Profit Sharing Ltd, and Ceylinco Shriram, were hit during the recent global financial crisis and the Central Bank, failed to avert any ripple effects.
- Asian Tribune -
By: adlib on January 25, 2011
at 11:41 am
No risk for big investors with high interst????
I was looking through Kavan Perera’s proposal where he is trying to turn a high rist scenario in to a low risk one
High risk was for those friends of Kavans and Kotalawela. The guys who came in ,in the last four years the big boys with the big bucks who got 30-34% who were going to double their investment in three years!!!! This most certainly was higher than high risk! This is bordering on ridiculous!
Those people who placed security deposits in the early years never got these interests even at the end. Plus in the early years interest was less than finance company rates then they paid a percent or two more than Bank rates. So this scenario is not exactly high risk . The guys Karvan is so eager to pay back in full are his friends . We have no objection to Karvan paying them and for them to come in to agreements with Karvan but, Most certainly NOT at the cost of one segment of the investors.
As things stand those who ran to Karvan for the 30-30% interest are getting off Scot free. This is a no risk investment for them all the risk and the losses has to be borne by the small time fellows!!!
This is also a way for karvan to stay out of prison after paying a third or so of moneys due and saving face with friends.
Ayanthi
By: Ayanthi on January 26, 2011
at 9:14 am
We are not against Anusha and Dushani. They did do a great service to keep the interest alive. What we are against is that they brokered a deal where they got all 80-100% of their moneys back. Even if we put the money a few months before the collapse of GKCC we knew there was a risk but these guys are getting off Scot free no risk to them. they are being paid almost in full at the expense of others. My objection was to Anusha dismissing the guys getting played out as only 3% of the investors and also saying they have been enjoying high interest for a long time this statement was grossly in accurate!!!!
The high interests were paid towards the end to those who had more than 10 million?
In the early years interest was nominal. Misleading the public after brokering a convoluted deal is not good and she is grateful to Boyagoda??? Is he the one who lent his name to Kavan Pereras proposal saying it was a 10 year loan??? [What plannet do these people live in? ]and to deducting the interest paid above 6% as repayment of the loan?
Who lent his name to letting the big boys go scot free at no risk returning up to 80% of their deposit back?
And deducting up to 75% from the security deposit ? What a guy!!!! What convoluted logic!!!
By: Ayanthi on January 26, 2011
at 9:31 am
I have learnt that the whole committee of this association has made “investments” not security deposits during the last four years of the GKCC????? Could this be correct?
By: Ayanthi on January 26, 2011
at 12:35 pm
Lalith Kotelawala is either a man with no history or a political fraud
@Standard Newspapers
Written By:Upali Cooray
In a statement published in the Daily Mirror and other national newspapers Mr. Lalith Kotelawala, has claimed that if Mr. Mahinda Rajapakse, became the President of the country with extremists as allies, they will be a barrier to bring peace to the country. He goes on to assert that through his “Christianity and through the love that it preaches, I have been able to forgive my enemies and the LTTE” even though they caused him injury and damaged to his building.
Mr. Lalith Kotelawala
Thereafter, he makes a number of serious allegations about the Jathika Hela Urumaya (JHU) and claims that he has evidence to prove that they were involved in various criminal and other wrongful acts.
He rhetorically asks Mr. Mahinda Rajapakse “If these are your partners, what will happen to us when you are elected President and they come under your patronage.
You talk about peace and that there will be no more war. You can’t have peace when you are President, with such people around you”. Mr. Kotelawala’s message is clear: on his say so, we must accept that the JHU is an extremist organisation and by allying with them, Mr. Mahinda Rajapakse has destroyed all chances of achieving a peaceful political solution to the ethnic conflict.
Peace and extremism
It was in June 1978 that Mr. J.R.Jayewardene sent the army to Jaffna to wage war against “terrorists”. After 27 years of a futile and a costly war, many Sri Lankans yearns for a peaceful solution to this conflict. I have no doubt that the vast majority of Sri Lankans would also have little sympathy with “extremists” who want to wreck a peace deal. Therefore issue of peace and the role of extremists is a legitimate subject of discussion and debate.
However, we must be clear about the meaning of these words. What do we mean by peace ? How do we define extremists ? I intend to express my own views on these two key issues. However, before I do that it is important to examine the manner in which Mr. Kotelawala has addressed these issues.
Muddying the waters
I do not think the purpose Mr. Kotelawala’s statement was intended to promote a genuine discussion about these issues. I say so because firstly, if Mr. Kotelawala has cogent evidence against the JHU, he should have passed such information to the police and helped them to bring criminal charges against the wrongdoers. Similarly if the JHU has defamed him he should instigate a civil action against them. After all Mr. Kotelawala is not short of a bob or two to hire the best lawyers in town.
Instead he wants to use the media to make serious allegations against the JHU. He cannot expect us to ascertain the veracity of his allegations. Mr. Kotelawela wants us to convict and hang the JHU on his say-so without giving the accused a chance to put his case to the jury. In accordance with rules of natural justice every man must have an opportunity to defend himself against his accusers. But Mr. Kotelawela who claims to be a morally superior being, a compassionate and forgiving Catholic, is inciting us to act as a lynch mob. That is wholly inappropriate.
Secondly, I do not think we need lessons in morality from Catholics. Their history is strewn with acts of genocide, debauchery and plunder. They have been active partners in slave trade and colonial exploitation. Let me just give two examples of the murky role of the Catholic Church. In Latin America the Church actively participated in the genocide of Maya Indians and in Europe the Catholic Church unashamedly supported Nazism and Fascism. Their role in Sri Lanka is not any less ignominious. Some of the most enthusiastic apologists of LTTE atrocities have been Catholic priests. Right at this moment they engaged fund raising to buy arms for the LTTE.
These men hide behind their casocks and condone murder, child abduction and extortion. As a lifelong humanist, I find Mr. Kotelawala’s hypocrisy quite offensive. Thirdly, it appears that Mr. Kotelawala’s compassion and forgiveness is very selective. He is willing to forgive the LTTE, which engages in the most brutal forms of violence and ethnic cleansing, but he cannot forgive the JHU, which even on his own account, and taking his allegations at its highest, has not done anything so dastardly as the LTTE. This is why I believe that his religious pretensions are a fig leaf to hide his vile political agenda.
Who are the extremists ?
When we talk about extremism we must be clear about the issue in relation to which we characterise a person or group of persons as a moderate or an extremist. I believe Mr. Kotelawla is talking about the ethnic conflict and the need to find a peaceful solution to this problem. That means we must identify the people or organisations that has adopted an extremist position in relation to the Tamil people.
Let us not beat about the bush. The question is a simple one. We can examine recent events and ascertain how we have treated our Tamil brothers and sisters. That would help us to identify which person or group of persons have pursued an extremist policy in relation to the Tamils. Years of experience have taught me that we must judge people not on the basis of what they say but on what they do. That is particularly important when we deal with politicians and businessmen because both groups of people have tendency to say one thing and do another.
From 1977 to 2000
Let us examine our recent past. I can vividly recall the events in August- September 1977. In August 1977 there was minor incident in Jaffna sparked off by a group of a few off-duty policemen in civil clothes seeking to enter the carnival grounds without paying the admission fee. It could have been defused easily. However, the Prime Minister at the time, sought to exploit it in order to brow beat Tamil members of Parliament who were reluctant to join his government.
On the floor of the Parliament he said words to this effect: “I am not saying this, but the Sinhala people are saying this to the Tamils. If you want peace come in peace, if you want war, there will be war”. This was uncalled for. Sinhalese people said no such thing. The Prime Minister at the time was seeking to hide behind “Sinhalese people” because he was both a coward and an extremist. These words resulted in renewed violence against Tamils living in the South.
Such extremism did not stop there. It was followed by the burning of the Jaffna Library, one of our most valuable historical assets that contained ancient books including rare books written by Tamil Buddhist scholars. Same year, innocent Tamil workers living in plantation areas were attacked and their line rooms torched by thugs of the ruling party. Those of us who visited the victims of these mindless acts of violence could not understand why these poor and innocent people had been targeted.
They were not involved in the problems in the North U& East. Soon after that, the Tamil United Liberation Front, was effectively excluded from Parliament and Tamil voters were disenfranchised.
However, the worst acts of mob violence against Tamils were unleashed in July 1983. That was no spontaneous outburst of emotion by Sinhalese against Tamils. It was a cold and calculated pogrom. Specific groups of ruling party activists, including government ministers were involved in the meticulous organisation of that pogrom.
None of these shameful acts of violence was organised by the JHU. It was the United National Party and its leaders who were in the forefront of these extremist acts. In the face of widespread revulsion expressed by people home and abroad, Mr. J.R.Jayawardene tried to pin the blame for the 1983 pogrom on the JVP. But everyone who witnessed the violence of 1983 knew full well that it was planned and executed by the UNP.
No apology from Ranil
Mr. Ranil Wickremasinghe was a leading minister of the UNP government from 1977 to 1994. To date neither the UNP nor Mr. Wickremasinghe has apologised to the Sri Lankan people for the violence, distress and suffering they caused to our Tamil brothers and sisters during this period. Furthermore, their subsequent conduct has not been any better. Though Mr. Kotelawala may have forgotten it, many of us remember the shameful manner in which the proposals for devolution presented to parliament by Chandrika Bandaranaike was burnt on the floor of the house.
The JHU and the UNP
Who then are the extremists? Even if we consider the catalogue or allegations made against the JHU by Mr. Kotelawala can they be compared even remotely with the appalling and shameful acts of violence that the UNP initiated against the Tamils ? Or has Mr. Kotelawala conveniently forgotten dishonourable past of his friends ?
Thus, if we judge the UNP and the JHU on their record, there can be no doubt that the only extremist party in Sri Lanka is the UNP. We are well aware of JHU’s political standpoint. We have the right to disagree with it. But in a democracy we must accept the right of every political organisation to express their views in frank, open and a peaceful manner. Furthermore, over time political positions evolve and recently one of the JHU leaders stated that he had no objection to the Indian model of devolution that Mr. Anandasangaree has been advocating.
We cannot say the same about the UNP. Although at times they pay lip service to a federal solution, we can never be sure of what they stand for. They have never spelt out their position clearly. Peace cannot be achieved by secret backroom deals and opportunist policies. Nor can peace be achieved by appeasing the LTTE for opportunist reasons.
A leader who is resolute, honest and sincere and who commands the respect of the majority of the people alone would be able to achieve peace. Recent statements of some UNP leaders reveal that they were playing Jekyll & Hyde with the LTTE. They were telling the LTTE one thing and at the same time engaging in a secret conspiracy with US and India to smash the LTTE.
I do not think that such a group of people can achieve peace. Ranils’s track record shows that he is not a man of peace, he has never apologise for the crimes his party had committed against Tamils and furthermore he has not been frank and open with even the LTTE who helped him to come back to power in 2001.
Track record of defending human rights
I know Mr. Mahinda Rajapakse only because in 1989, as a member of the Committee for Democracy and Justice in Sri Lanka (CDJ), I helped to organise a delegation of members from the European Parliament (MEP’s) and European lawyers to visit Sri Lanka. They were sent to investigate the 60,000 odd persons that “disappeared” during the 1988-89 period.
Without the assistance of Mr. Mahinda Rajapakse, Mr. Aimnsley Samarajeeva, Mr. Mangala Samaraweera and others this delegation would never have been able to fulfil the important role they played in curbing the worst excesses of state terrorism. That year, Ms. Christine Oddy, MEP, presented the data that Mr. Mahinda Rajapakse and others so courageously and painstakingly collected to the UN sub-committee on human rights.
Thus, unlike Ranil, Mr. Mahinda Rajapakse has demonstrated his democratic and human rights credentials under extremely difficult conditions. He did so without considering the danger to his own life and liberty. It is highly unlikely that such man could be swayed from his chosen goal of seeking a negotiated solution based on consensus.
I do not expect Mr. Kotelawala to be a part of that process of consensus building because he is not a part of the solution but a part of the problem.
——————————————————————————–
Written By:Upali Cooray
By: adlib on February 2, 2011
at 1:20 pm
Wow Mr Upali Cooray, First of all how much were you paid to put this history, please understand this blog is for depositors who in trust have been let down by LK now bringing the political’s will not refund the depositors , so my humble request please talk of the present position of the matter connected to the depositors of GK and what is honestly going on, I am sure everybody wants to know more on the refunds/Interest of the placed deposits by innocent or maybe even greedly people but your history is such a waste.
Suraj
By: Suraj on February 2, 2011
at 9:30 pm
The three year or 4 year plan as proposed by GK and I understand the Supreme court is just an eye – wash. If they say it is three weeks, there is something valid.
By the end of three or four years, most of the senior citizens who are depositors may have died and probably even the rogue Kotelawala too would have kicked the bucket, so to speak. The Justice that is seemed to have been meted out is nothing but JUST – ICE. and NOT JUSTICE
By: insu on February 3, 2011
at 7:21 am
What’s going on now? What will happen next?
By: Sam on February 24, 2011
at 2:52 pm
BASL members get “On The Spot” solutions
Friday, 25 February 2011 00:00
Ceylinco Insurance, recently signed a Memorandum of Understanding with the Bar Association of Sri Lanka. According to the MOU, any member of the BASL is entitled to exclusive benefits when they obtain Ceylinco VIP On The Spot insurance from Ceylinco Insurance. The over 8,000 strong membership of the BASL can look forward to Sri Lanka’s most comprehensive motor insurance solution, providing a host of unmatched benefits and on the spot claim settlement.
Featuring the largest network of branches throughout Sri Lanka, Ceylinco Insurance guarantees that wherever you may be in the island, Ceylinco VIP representatives will get to you within 30 minutes of an accident or a breakdown. Ceylinco VIP On The Spot also offers roadside assistance to all of their customers 24-hrs a day, 365 days a year, along with numerous other benefits, which include a similar replacement vehicle in the event the repair exceeds four days, entitlement to no claim bonus, regardless of any claims, the insured value of the vehicle being increased by 10 % each year, without any increase in premium, on the spot claim settlement through e-commerce, personal accident cover for passengers, plastic surgery cover for lady drivers etc.
As the industry leader, Ceylinco Insurance has achieved many firsts to their credit; and yet they have not rested on their laurels, with the company going on to deliver unmatched service, unprecedented results and a level of customer service yet unachieved by their competitors. Constantly innovative, the company has a committed goal of exploring new avenues and opportunities, consistently seeking to deliver what customers want in a world where changing customer needs dictate direction and vision for corporate entities.
All you need to do to obtain Ceylinco VIP On The Spot cover is to contact any Ceylinco Insurance – General branch and give your BASL membership number or call our hotline 011 2 393939. Ceylinco VIP On The Spot obtained through the BASL will benefit the Bar Association as well.
Ceylinco Insurance, has been the toast of the insurance community globally, winning the title of Asia’s Most Innovative Insurer twice over at the Asia Insurance Industry Awards. (SEE THE PICTURE BELOW)
Ajith Gunawardena, Managing Director / Chief Executive Officer of Ceylinco Insurance is seen exchanging the copies of the MOU with Mahinda Lokuge Secretary of the Bar Association of Sri Lanka. Others in the picture are ( from Left ) Chathura Gallhena , Asst. Secretary , Athula Perera, Treasurer , Shibly Aziz , President of BASL together with Nihal Peiris, Director Finance and Patrick Alwis, Deputy Chief Executive Officer of Ceylinco Insurance.
By: titinlama on February 25, 2011
at 8:15 am
What sort of joke is this? We don’t want know any bloody insurance in this blog. Only about GK.
By: Sam on February 26, 2011
at 12:05 am
Of course – whatever Ceylinco does, they do it with ulterior motives. They want to make sure the legal luminaries will not go against them or even if they take up cases against them – not to pursue with intent.
Ajith Gunawardana is the biggest rogue, liar, cheat and the most untrustworthy fellow I know. he too was locked up in the recent scam. I sincerely hope hat people will not fall for this type of muck. Ceylon Insurance Co Ltd had a real name and prestige originally which was later transferred to Ceylinco. But after the Lalith Kotelawala scandal, he destroyed all the goodwill and trust and to add to the melee we have rapscallions and scallywags like Ajith Gunawardene and KAS Jayatissa.. The Public beware!!! be alert!! this may be another scam. Lawyers beware, you may end up being disbarred.
By: Patalputul on February 27, 2011
at 7:14 am
Sam Hope Patalputul answered…….
By: adlib on February 27, 2011
at 11:33 am
I am hearing some very interesting news. This proposal is not acceptable to
a) the lawyers of the depositors
2) the AG
3) Watawela committee
4) thousands of others who have protested to the Watawela committee
This proposal is tailor made for a few
By: Sama Sri???? on March 2, 2011
at 10:21 am
All readers of this blog ( Not Khavan’s and Anusha’s lackies) Please note that if this proposal is passed ,by january next year Anusha and most others who want to push this through get pain 24% of their deposit. And most of you get paid 7% . I know most of us need some money urgently.
Please remember those people who are pushing this through have large amounts of money in their accounts at GKCC so their 24% is substancial .So please write and ask for the same % that Anusha is getting for yourself. Why should only the depositors that came last be preferred? why not retirees? why not cancer or any other patients? why not parents who have to pay school fees?
ALL OF YOU PLEASE MAKE A SIGNED SUBMISSION TO tHE WATAWELA COMMITTEE
Chief opereating officer,
Golden key secretariet,
7th floor new wing,Central Bank of Sri Lanka
URGENTLY
By: Ayanthi on March 2, 2011
at 10:35 am
SC lists FR motion mention for Friday
By S.S. Selvanayagam
The Supreme Court yesterday (1) listed for mention on 4 March the motion seeking to direct the Committee of Chartered Accountants, appointed by Court in respect of Golden Key matter, to tender forthwith Audited Statements of Accounts.
The Bench comprised Justices S.I. Imam and Suresh Chandra. The petitioner P.P. Anura Gunawardene in his motion is seeking the Court to direct the Committee of Chartered Accountants to disclose specific details of expenditure incurred by them in relation to their budgets.
He is also seeking the Court to direct all parties to maintain the status-quo (existing state of affairs) without any material change, including disposal of any asset for a short period of time, to enable independent experienced competent person/s to examine and report on the Business Plan including relevant matters connected therewith, taking into cognisance the observations made by the Court thereon.
He cited the Monetary Board of the Central Bank, President Mahinda Rajapaksa, Treasury Secretary Sumith Abeysinghe, Central Bank Governor Ajith Nivaard Cabraal and the Golden Key Credit Card Company Limited as well as Deshamanya Dr. Lalith Kotelawala, Khavan Perera, Sicille Kotelawala, Daniel Jegasothy, Padmini Karunanayake, Suramya Karunanayak, Bandula Ranaweera, Niranjan Fernando and Saradha Sumanasekara of Ceylinco Centre as well as Ceylinco Consolidated (Private) Ltd., and the Attorney General as Respondents.
The Committee of Chartered Accountants had been appointed on 18 May 2009 to function as Officers of Court, without incurring any personal liability, to:
(a) Examine the lists of assets and properties compiled by Officials of the Central Bank on the basis of the declarations made and any other information furnished by any of the parties to the Application and compile list of the (i) immediately realisable assets; (ii) assets that are realisable in the medium term; and (iii) assets that are realisable in the long term
(b) Prepare a scheme whereby these assets could be brought into a common account from which disbursements could be made to the depositors.
(c) Compile a list of the depositors and formulate a scheme of payment.
By: Mahinda on March 2, 2011
at 3:39 pm
Nation Lanka Finance rescue plan hangs in the balance
By Bandula Sirimanna
Nation Lanka Finance Company (NLF)’s private placement action aimed at infusing capital worth Rs.500 million through a consortium of investors is now hanging in the balance owing to undue interference of a former director of the collapsed Golden Key Credit Card Company (GKCC), NLF sources said.
Bandula Ranawera, one of the accused in the Golden Key fraud case and a former director of collapsed Golden Key Company, continues to serve as the Managing Director of NLF despite the Supreme Court order that no GKCC director can work as a director of any public deposit taking company or institution, and is opposing the rescue plan of private placement for which Central Bank of Sri Lanka, Colombo Stock Exchange and Securities Exchange Commission of Sri Lanka have given their approval, sources revealed. Mr Ranaweera along with some other directors were planning to defeat the resolution seeking approval of the private placement at the company’s Extraordinary General Meeting (EGM) to be held next week, the sources said.
NLF has mobilized over Rs. 2 billion public deposits and now has a negative net worth value of Rs. 380 million. It has declared a serious loss of capital in July 2010 and now find difficulties to pay public deposit holders. As a remedial action the company approached several prospective investors including LOLC and Union Bank for a capital infusion, but proposals were turned down eventually. Finally a consortium of investors led by Investor Access Equities (Pvt) Ltd came to the rescue of the company by infusing capital worth Rs. 500 million through a private placement.
Directors including Mr Ranaweera and Finance Director Chandra Gamage had signed an agreement with the consortium of investors on 14th December 2010 giving their consent. Now they are opposing the move without any valid reason, employees of the company allege.
Meanwhile it has been revealed that in the GK case, Mr Ranaweera’s asset declaration given to the Attorney General and Supreme Court was also bogus misleading the judiciary and the depositors. According to his asset declaration, he has also failed to declare that he has 1.7 million shares of Nation Lanka Finance which is now worth Rs. 40 million and convertible to cash immediately and could be paid to GK depositors immediately.
He has not declared his estate of 50 acres owned in Katukenda estate, Badalgama now worth Rs.400 million. His property at No 133/20 at Nawala Road, Narahenpita now worth over Rs. 50 million in the asset schedule given to the Supreme Court and there are 13 items which belong to him and his family members which is valued over Rs. 300 million showing as “not known” and another six items as “not given”. These remarks “not known and not given” by him is to mislead the courts and avoid declaration of assets, NLF employees said. Mr Ranaweera was not available for comment.
By: adlib on March 6, 2011
at 11:41 am
Ray of hope for GK depositors
By Bandula Sirimanna
Shedding a ray of hope among thousands of distraught depositors who continue to languish sans either their investment or interest during the past two years, the Supreme Court on Friday endorsed the alternate repayment plan presented in agreement with two Golden Key depositors associations and former directors of the company including ex Ceylinco Chief Lalith Kotelawala to settle the burning issue.
According to this repayment plan, all deposits at the rate of between 25% to 100% will be repaid within four years at 6% interest considering the amount and the period of deposits. Depositors who made deposits shortly before the collapse of the company will be given priority under the repayment plan.
The proposals include a list of possible means of funding for repayments. These include realisation of all assets of the Golden Key Group, the disposal of assets of the Ceylinco Group in accordance with orders of the Supreme Court, and the generation of funds by the public listing/forming of joint ventures by some Golden Key Group companies.
Former Golden Key directors floated the idea of setting up a holding company to run the two hospitals and other assets to derive revenue to inject into the fund to settle depositors. They had also pledged to raise liquid cash through the sale of other assets and properties to meet the financial commitment.
The 3-member bench headed by Justice Shirani Thilakawardane ordered to submit the names of the 10-member supervisory committee and the board of directors of the proposed holding company on the next hearing of the GKCC Fundamental Rights Case fixed for April 1.
Justice Thilakawardane also ordered President of GK Depositors Society Anusha Emmert to tender an apology in open court to Prof. Lakshman Watawala, head of the 3-member Chartered Accountants committee appointed by the Supreme Court for creating pain of mind by conducting protest demonstrations near his residence, which amounts to contempt of court.
The repayment of relatively small-time deposits of up to about 2.5 million rupees in full was looked at actively earlier by officials as this would mean easing the liability to a considerable extent, but it is not known whether the proposed repayment plan would encompass this crucial factor, they said.
The majority of the 7,200 depositors are small-time investors who had deposited their life-long savings or retirement and compensatory benefits to earn a little more interest to eke out a living, the officials
By: adlib on March 6, 2011
at 11:42 am
Anusha Emmert together with Dushanj Hapugoda who has deposited their money in end September 2008 has sold the depositors to Lalith K , Kavan & Co. by agreeing to settlement plan drafted by Khavan with highly unrealistic terms and conditions loaded in favour of CROOKS OF GK.
Anura Gunawardena went to Lalith K’s Birthday Party together with Anusha Emmert and Struck a deal for Rs. 100 million with Lalith K to agree for settlement plan . Khavan got Anusha to stage a protest in front of Prof. Watawala’s house to pressurize him to agree to their plan. Anura Gunerwardane Filed a motion in court to kick up dirt on Prof. Watawala’s expenditure asking for a audited statement on watawala committee expenditure.
Prof. Watawala duly bowed down to the pressure of Khavan , Anusha Emmert unholy alliance and informed court to go for the plan of Khavan .
This is going to Boomerang on them badly as JVP has got activated to thwart this massive fraud being perpetuated on innocent poor Depositors !!!
By: Dutugemunu on March 7, 2011
at 12:57 pm
I think this guy Dutugemunu is speaking facts . It looks these two Chowra Regina’s has taken us Dumb Depositors for a another ride with Khavan & Co.
By: Mahinda on March 11, 2011
at 9:16 am
Dushani held a meeting at Vihara maha Devi Park, said that they found 6BN worth of Shares belonging to LK. Amusing story how they got this information was narated at the venue, Upali and Kapila backed up the facts….. So Dushani if so much was there, why are you settling for less?????
Anusha told us at a temple in Mt Lavinia that her lawyer has found LK’s land near London Olympic site!!!!! So Anusha and Dushani what happened why the change????
By: adlib on March 12, 2011
at 11:58 am
DUSHANI AND ANUSHA….. IF YOU HAVE DONE THIS GOD WILL CURSE YOUR CHILDREN…. COS OURS ARE SUFFERING COS OF YOUR GREAT BETRAYAL!!
Golden Key Repayment Plan Runs In To Storm
Depositors Allege Their Representative Is In Cahoots With Kotelawala
By Gazala Anver and Maryam Azwer
Golden Key depositors
In yet another twist to the Golden Key Credit Card Company Limited’s repayment fiasco, depositors now claim that President of the Golden Key Depositors Society (GKDS), Anusha Emmert has an ulterior motive in agreeing to the repayment proposal.
Despite the proposal having caused a stir among some depositors, who claimed it was “flawed and convoluted,” Presidents of both the GKDS and the Golden Key All Depositors Association, Anusha Emmert and Dushyanthi Hapugoda respectively, have agreed to it.
Depositors however claim that neither of them “have a legal mandate to sign on behalf of all depositors.” Previously, Hapugoda told The Sunday Leader that she had agreed to this as she felt this was the best option available. Hapugoda also said she wanted “the best solution” for depositors and that she has the right to sign on behalf of the people in her association.
When contacted by The Sunday Leader, Emmert claimed that she had called meetings in Matara, Kandy and Colombo shortly after the repayment scheme was released, and received the approval of around 3,000 depositors before agreeing to the proposal.
Most depositors who spoke to The Sunday Leader wished to remain anonymous, but have spoken out against Emmert’s claim that all depositors have agreed to this plan.
“They do not have the legal mandate to represent all depositors,” said one depositor. “They can sign only for the few people who joined the association.”
However, even depositors who attended her meetings claim that Emmert did not discuss the plan in detail with them, and that she had in fact bullied people into signing in favour of it.
“I was present at the meeting called up by Anusha, and she practically bulldozed everyone into signing a statement stating that those from Kandy and Galle have agreed, and that we have no other choice and this was the best option. We had no forum for discussion as she only asked for a show of hands,” said one depositor in an email to The Sunday Leader.
Another depositor also referred to this as “pushing people against the wall,” and added that people had only been given a leaflet with a basic analysis of the plan half an hour before the meeting.
There are also allegations that Emmert stands to win by agreeing to this proposal.
For Their Own Benefit
“Most of the people pushing this through stand to benefit. Very few people have seen the real document,” said Ayanthi Gunasekera, one of the few depositors who have a copy of the repayment plan.
When The Sunday Leader spoke to Emmert, she admitted that she had invested 100 lakhs only eight months before the collapse of GKCCCL. And, as highlighted by this newspaper on previous occasions, among other loopholes, the proposal favours those who have invested their money in more recent years.
Furthermore, intervenient petitioner and depositor Marco Perera claims that Emmert’s intentions are far from clean. “Anusha told me personally that she will get all my money back for me, if I agreed to this proposal. She also said that she was not here to help depositors but only wanted her own money back,” he said. He added that he had reason to believe Emmert was also in cahoots with Lalith Kotelawala and the directors of GKCCCL.
Leeching off the victims?
Depositor Marco Perera also alleged that Emmert appears to be earning off the depositors’ plight. In January, Emmert organised three meetings on the 14th, 15th and 16th in Kandy, Matara and Colombo to inform depositors of the repayment plan.
Perera claims that Emmert charged all those attending the meetings Rs. 500 each and collected around Rs.1.5 million through this. Emmert however said the money went to cover expenses such as lawyers’ fees, petrol costs and telephone bills and also claimed that nobody was forced to pay this money. “They only paid voluntarily, and not everybody paid us Rs. 500. Some paid Rs. 100, or Rs. 50.”
Ayanthi Gunasekera, who attended one of the meetings held at the Jayasinghe Hall in Dehiwala, however claimed otherwise. “We were told we could not go into the hall without paying Rs. 500. There was no option about it, I know because I was there,” she said.
Meanwhile, The Sunday Leader also spoke to one of these lawyers, and it was revealed that they had not been paid what was due to them. This includes the expenses the lawyers incurred as well as their legal fees. “We have been let down as far as reimbursements have been concerned. But we have heard that she has been collecting money, we have received none of this,” said one lawyer, requesting anonymity.
By: adlib on March 13, 2011
at 11:19 am
dushanthi has deposit her money may 2005 bt anusha has deposit september 2008. and also i know dushanthi already filled good motion with safeguard behalf of 9000 depositors. if anyone wants to know abt that pls go and check s.court.when i was there she has told to kawan if it is somemthing wrong she will be fitting for that also. iam sure dushanthi will do correct thing for behalf of us.and i hope it bt anusha try to ride with kawan,
By: padma on March 14, 2011
at 2:40 pm
Given below is is the deposit base analysis of depositors of GK .
Range Total Amount Number Of Depositors
100,000 and 250,000 and 500,000 and 1,000,000 and 2,500,000 and 5,000,000 14,832,630,095.43 1,261.00
26,214,644,437.23 9,162.00
It is clearly seen that the majority are depositors equal or less than 2.5 million . Courts should immediately move to find redress to majority of small timers and implement Anushas Formula to the balance .
Small timers to be paid immediate 50% of there deposits and balance in installments depending on availability of funds .
Your suggestions Welcome so we can collectively come out of this rut w/o personal agenda’s thinking of well being of majority of helpless depositors as nawaloka mudalali’s and milton karunaratnes will some how or other will fleece their money out of LK , Khavan & Company !!!
By: Mahinda on March 14, 2011
at 4:30 pm
Break up again .
Range Total Amount Number Of Depositors
100,000 and 250,000 and 500,000 and 1,000,000 and 2,500,000 and 5,000,000 14,832,630,095.43 1,261.00
26,214,644,437.23 9,162.00
By: Mahinda on March 14, 2011
at 4:32 pm
My two brothers and sister sold our only house and invested over 10Mn in GK. Under one account.The interest Paid for our 69 year old moms medication, sent 4 of her grand children to school and paid for the house we rented for My self and sister and family which my mother also lives in.
My Mom passed away cos we could not provide her money for suggery (by-pass). She on her death bed she cursed Lalith, Khavan, and the two Depositors society heads for betraying us.
Today we are destitute… we are not Navaloka’s…. we sold the only thing we have… Oh why Anusha and Dushanthi why you betray us…….
If you got your money the wrong way by taking from us what is left after LK and team robbed us my the Gods curse you!
By: isuru on March 15, 2011
at 12:12 pm
God won’t curse them because nowadays god is blessing politicians,thugs, Robers & murders. They won, We lost.
By: Sam on March 17, 2011
at 8:34 am
GODS WILL STRIKE BACK !! AWAIT ARMAGEDDON LK, KHAVAN ,ANUSHA & COMPANY
PRAISE THE LORD !! LORDS WILL STRIKE BACK !!! AMEN !!!
By: jesus on March 17, 2011
at 10:46 am
Questions raised over exclusion of directors’ assets – Golden Key repayment plan to begin with Rs. 3 bn cash infusion
March 19, 2011, 7:11 pm
by Suresh Perera
The first phase of the protracted Golden Key (GK) repayment process is expected to get off the ground at least by early May this year with an initial capital infusion of around three billion rupees by the directors of the proposed holding company to meet part of the liability towards depositors.
The names of five nominees to serve as directors, which will include Khavan Perera and Saradha Sumanasekera, former CEO and finance director of GK, respectively, and the 10-member supervisory committee comprising representatives of the two depositor’ associations, are expected to be submitted to the Supreme Court (SC) for approval on April 1.
However, Ms. Dushanthi Hapugoda, president of GKCC Depositors’ Association, has, in a motion, sought the intervention of the SC to have in place only one existing director and the other to be replaced by Lalith Kotelawala as he will be in a better and stronger position to raise funds to take the repayment initiative forward.
The motion also says that depositors are not in favour of the immediate transfer of funds from the Special Purpose Vehicle (SPV) as the directors indicated infusing five billion rupees in cash to the repayment fund during discussions with them. As there is no necessity, under these circumstances, for any working capital to start the operations of the holding company, the money in the SPV should remain as a reserve and security fund for the benefit of depositors.
In case of violation of repayments under the agreed repayment plan, the motion wants the Attorney General to seek indictments from the SC and the CID to probe local and foreign assets of the directors.
When the FR case filed by GK depositors was taken up for hearing again, Justice Shiranee Thilakawardena, who heads the three-member bench, had warned the directors of punitive action if they retracted on their undertaking to implement the repayment scheme to grant relief to suffering depositors. The total liability of this collapsed Ceylinco subsidiary has been confirmed as 26 billion rupees in an audit done by Ernst & Young, but under the controversial repayment plan, this financial obligation has been pruned to 13 billion rupees as the refund of deposits has been proposed on the basis of a flat 6% interest rate payable from the date deposits were made.
Notwithstanding vehement protests by a wide section of depositors over the move to discount from their capital all excess interest payments already made, the repayment process will go ahead as the staggering 26 billion rupees GK had raised from depositors has “virtually disappeared into thin air”, senior officials said last week.
“There seems to be no option as GK had been run down by the directors who had pampered themselves with fat salaries and princely perks at the expense of unsuspecting depositors”, they asserted. “They had a roaring time until the bubble burst”.
A part of the funds for the initial payment of 15% of deposits on or before June 30, 2011 will come from the sale of three floors of Ceylinco House, Hotel Ceysands, a teak plantation, lands, furniture, vehicles and equipment belonging to GK in terms of the repayment scheme submitted to the SC.
The motion filed in courts also asserts that GK directors have “totally under-valued or over-valued some assets” in comparison to the list prepared by the Central Bank Governor in concurrence with the SC-appointed Committee of Chartered Accountants (CCA). These manipulations had been done for their benefit and advantage of the directors.
“The two nominees, Perera and Sumanasekera, had also sought a monthly salary of 200,000 each to serve as directors, citing an equal payment made to the three members of the CCA headed by Prof. Lakshman R. Watawala”, Ms. Hapugoda said. “We are not in favour of this move as GK directors were directly responsible for the fate that befell the company”.
Perera could not be reached. An email sent seeking his comments on the matters raised went unanswered.
Despite the battle to raise funds to settle depositors, the assets and properties of GK directors have so far neither been sold or even included in the repayment plan, she complained. “They continue to lead a super-luxury life while many struggling depositors had committed suicide”.
Ms. Anusha Emmert, president, GK Depositors’ Society expressed confidence that the directors will infuse capital to push ahead with the repayment plan, as planned. “The sooner this is done the better as depositors have suffered for over two years”.
With the formation of the holding company, the CCA will step down. “We have done our part and now it’s left to the directors to raise funds to settle depositors”, an official said
By: isuru on March 20, 2011
at 8:51 pm
Control at Ceylinco Insurance thrown open?
Published : 1:33 am March 23, 2011 | 454 views | No comments so far |
Subasinghe family and related parties up stake to 26% as share price hits all time high on 11% stake deal; Foreign fund and high networth individuals among sellers
Control of the country’s biggest life and second largest general insurer Ceylinco appears to be at large with its major outside shareholder yesterday increasing their collective stake to 26%.
Deals on 11.7% voting stake or 2.38 million shares of Ceylinco Insurance via 176 trades generated the highest turnover of Rs. 1.77 billion with the stock price peaking to Rs. 740 before closing at Rs. 727.40, up by Rs. 82.60 or 13%. Yesterday’s closing is an all time high beating the previous best of Rs. 680.
Of the trades, 2.19 million shares (around 10.7% voting stake) were done via 11 crossings at Rs. 750 each.
The seller was a foreign fund Emerging Market Umbrella Funds which as at 31 December, 2010 held 1.49 million shares or 7.45%.
The buyer was exporter Prabhash Subasinghe and related parties.
In February a consortium involving Subasinghe and connected companies Global Sea Foods Ltd. and Global Rubber Industries Ltd., acquired 11.52% voting stake in Ceylinco thereby becoming the single largest shareholding group from outside.
By end 2010 they held a collective stake of around 4% which was increased to near 12% by early February with a price of around Rs. 500 per share paid, higher by 17.5% or Rs. 74.30 from its previous close.
In between February’s bigger purchase and yesterday’s their collective stake had been increased to 15%.
The concerned parties didn’t figure in the top 20 voting shareholders of Ceylinco as at September 2010.
Now in distress but former business tycoon Lalith Kotelawala founded private firm Ciesot Ltd. owns 23.54% in Ceylinco Insurance thereby remaining as the single largest shareholder. As at December 2010 the second largest shareholder was Pictet and Cie which owns 10.68%. Ceylinco Insurance Employee Gratuity Trust Fund owns 8.66% voting stake whilst the Company’s Pension Fund owns a further 3.69% voting stake and an entity called Ceylinco Life Holdings Ltd. holds around 2.63%.
High networth Ken Balendra family who were listed among top 20 voting shareholders were believed to have sold their collective minor holdings of around 600,000 shares yesterday.
Analysts said with future of Kotelawala promoted entities is unknown the management’s clout via employee funds is less than 15% which puts Subasinghe and connected parties in effective control at Ceylinco Insurance. None of them are on the Board, which has seen several new appointments since last year expanding the number to 16.
Ceylinco’s nonvoting stock saw its price gain by Rs. 41.30 to Rs. 341.30 after peaking to a high of Rs. 350 though on thin volume.
By: jesus on March 23, 2011
at 12:13 pm
Why cant they take LK shares in above sell it to settele GK Depositors . Over to you Dushanthi , the honest lady of the two leading ladies of GK fiasco while Anusha is crooked SLUT of the FIRST ORDER !!!!!!
By: Mahinda on March 23, 2011
at 12:18 pm
How about the 6bn shares Dishanthi, Upali and Kapila found…. can we sell that also
By: isuru on March 23, 2011
at 2:32 pm
Give the info we will get craking on this too .
By: Mahinda on March 25, 2011
at 9:34 am
I was found 5 apartments belongs to GK directors in Arpico Housing complex at the Hyde Park Corner. 3 belongs to Lalith & Sisil K, other 2 belongs to Kavan. Why not go and check those properties. We can add those also to the capital fund.
By: Sam on March 25, 2011
at 12:01 pm
Great finding & a good suggestion, Sam!
Let see how it works.
By: Ajith on March 25, 2011
at 1:31 pm
Excellent work Sherlock Homes . Why not come to court on 01 April 2011 and inform court . If other depositors also take an interest we can recover our money in double quick time .
By: Mahinda on March 26, 2011
at 6:50 am
On March 13, The Sunday Leader ran an article on the claims of Golden Key Credit Card Company Limited (GKCCCL) depositors, that President, Golden Key Depositor’s Society (GKDS), Anusha Emmert’s approval of the repayment plan did not suit all depositors.
The following week, Emmert vehemently denied this, claiming that she had physical evidence of around 3000 depositors having signed in approval of the re-payment plan. This week however, it was brought to light that this ‘evidence’ appears to be flawed. Depositor Marco Perera, who produced copies of the submissions Emmert had made to the Supreme Court, alleged that Emmert’s claims of having signatures of around 3000 depositors who approved the repayment plan, are false.
According to Perera, the 214 page document can contain only 10 signatures per page, bringing the maximum possible number of signatures down to 2140. However he pointed out that all forms weren’t even filled in entirely, further reducing the number. The total number as calculated by Perera came up to 1822 signatures, and is nowhere close to 3000. Furthermore, Perera pointed out instances where names and signatures had been repeated.
Investigating these claims, The Sunday Leader called up depositors in question, to find out if there was a possibility of someone other than themselves filling in the forms with their names, addresses, account numbers, ID numbers and signatures. J.G.P Mangalika, whose name appeared on page 36 of the document, claimed that though she had attended the meeting, she had not signed in approval of the repayment proposal. “We were asked to pay Rs. 500, but at the time I didn’t have any money. I submitted a copy of my ID card, and I signed for attendance as well as to acquire the green leaflet. But I did not sign for the repayment proposal.”
Mangalika also added that she attended the meeting in Colombo, at Jayasinghe Hall. Her name surprisingly has appeared on the form signed by people who attended the meeting in Matara, on January 15 this year. When asked, she denied having attended the Matara meeting. Sebastian Roche, who said he had attended the meeting at Jayasinghe Hall, did admit to having signed a form, on behalf of both his wife and daughter as well, but said that “I didn’t write the account number because at the time I didn’t know it.”
Interestingly however, his name and that of his wife and daughter, not only appear twice, on both pages 30 and 191 of the document, but appear along with account numbers. He claimed that even when he signed the form, he had only a vague idea of what he was signing for, and said that the only reason he signed was because he was asked to. “I am not in favour of this, if I had known (what this was all about), I wouldn’t have signed.”
Sally Gomez, who had attended the meeting, claimed to have signed for herself as well as for a relative for whom she had power of attorney. Gomez’s name appears once on the form, however the name of her relative (who requested anonymity) appears twice on pages 14 and 154 of the document. “This is false,” said Gomez, who stands by the fact that she put down her relative’s name only once.
A.M.P. Jayamini Abeyweera claims that she paid the Rs. 500 demanded to cover the lawyers’ fees, but it was only for that she had signed. Her name however appears on page 75 of the document.
D.M.D Samaradiwakara meanwhile said that he had not attended the meeting called by the GKDS at all and that he had signed no form. However on page 94 of the document, which contains the signatures of people who attended the meeting in Kandy on January 14, his name appears. “I did not attend that meeting, and I did not sign, somebody else has signed my name there.” He denied any possibility of an acquaintance having signed on behalf of him.
President, GKDS, Anusha Emmert, when contacted, declined to comment.
Sunday Leader on 27th March 2011
By: Sinhaya on March 27, 2011
at 11:16 am
Lalith Kotelawala and Sicillie Kotalawela has not disclosed their assests to courts. Lalith owns house and land worth 100million at Ruskin Island and Sicille have bare land worth 40 million . Deeds are written by Ms. L. Ponukoon .
Please take this up at next court hearing as this contempt of court and LK can be proved a crook again and taken into custody .
By: Sicille on April 10, 2011
at 4:51 pm
Does anyone know what happened in the last court (SC) hearing on GK ? Please update me Thanks
By: Suraj on April 12, 2011
at 10:16 am
Is the CID or interpol looking into arresting the other directors who fled the country? I know one of the members of the Pioneers band who was also later made a director at Ceylinco grameen is now living a luxurious life in Australia. Many of the directors left the country at the very early stages when the fraud was revealed to the public. Is any action taken to bring these crooks back in to the country to serve justice to the poor people?
By: Devika on April 23, 2011
at 3:25 am
Kothelawala reaches settlement with protestors
THURSDAY, 28 APRIL 2011 01:16
By Ananda Weerasooriya
Mount Lavinia Additional Magistrate Ruchira Weliwatte sanctioned the settlement and ordered the suspects to be released in the case filed against seven Golden Key Depositors who had allegedly obstructed the entrance to the house of former Ceylinco Chairman Lalith Kothelawela, while he was trying to leave his residence in July last year.
On July 15, 2010, when Mr.Lalith Kothelawela was leaving his residence at Eli Bank Road in Bambalapitiya to appear before the Colombo Magistrate in connection with a case of alleged fraud at Finance and Guarantee Company, some distraught Golden Key Depositors had confronted him near the gate and had tried to prevent him from leaving. Bambalapitiya Police had filed the case against the Golden Key Depositors for their violent behaviour.
Attorney – at – Law Wasantha Batagoda, representing Mr. Kothelawela, told court that his client was a strong Catholic and that he believed that the action of the protestors was due to God’s wish and therefore his client was willing to pardon the offenders and arrive at an amicable solution. Accordingly, the suspects were instructed by Court to greet the complainant in the traditional way by showing him respect.
By: isuru on April 28, 2011
at 12:49 pm
What’s going on now? When we will get our money?
By: Subash on May 9, 2011
at 2:41 pm
A few questions:
What has our money being doing for the last few years i.e. has it been invested, is it earning interest. It can’t have just been sitting in the Bank somewhere. What is happening to the income.
Whats the latest guys on the new company situation.
Seriously why are’nt the Directors being held liable?
By: Malindu on May 13, 2011
at 9:20 am
What is the next step after paying 2nd 100,000.00 ?
By: Cyril on May 17, 2011
at 7:15 am
So are they going to pay us Rs 100,000 every 2 to 3 years for the rest of our lives.
People we need to take more effective action.
What are the courts doing.
By: Malindu on May 18, 2011
at 8:42 am
All of you must be aware that the Goverment – especially the “Sahodara Samagama” has a very big hand in this and they are making the most of it at the expense of all those who are suffering.
By: Kapilavastu on May 19, 2011
at 8:59 am
Kotelawala devotes to prisoners
The well known philanthroist, Lalith Kotalawela, who is on trial in connection with a massive scam involving his Ceylinco Consolidated, has repoertedly devoted the rest of his life for the welfare of prisoners. Already, he has converted his Chairman’s Office located at 13, Dickman’s Lane, Colombo 05 , handed back to him last Wednesday by the Watawala Committee of Centreal Bank, to a prisoners welafre shop as pictured here. Is it to befriend his soon friends-to-be?
By: titinlama on May 23, 2011
at 2:59 am
EMAIL | PRINTABLE VIEW | FEEDBACK
Golden Key depositors to get six percent of their interest
[May 24 2011]
Shirajiv Sirimane
The Golden Key Depositers Association have called for a meeting on Sunday to explain the depsoters as to how their payments are to be made. The meeting is at 10 am on Sunday at the S.D.S. Jayasinghe Hall, Dehiwela.
President of the Assocation, Dushanthi Hapugoda said that former CEO, Kavan Perera has agreed to pay 6 percent of the interest to all depositers in addtion to their capital. “We are holding this meeting to explain to 7,054 depsoiters how and when this payment would be made .” she said.
The Ceylinco scam total up to almost Rs. 20 billion and a sum of Rs. 700 million have been paid so far with small time depositors being settled.Six people have committed suicide due to this scanda
By: arunalu on May 24, 2011
at 4:14 pm
Vengeance by Nivard Cabraal.
Please read this dispassionately.
The whole GK Scam which caused the annihilation of the entire Ceylinco Group of Companies is actually a set-up and a plot, engineered and orchestrated by the Governor of Central Bank, Ajit Nivard Cabraal. His vengeance that caused the destruction of a group of companies, had a domino effect, in that, thousands of employees lost their jobs and their families were put in dire straits overnight. In addition thousands of families who were dependent on the income of their deposits were also deprived of their sustenance for the past two and a half years, many have committed suicide and thousands have been put into a permanent state of worry and nervousness which has also resulted in a variety of mental disorders. All because of the vengeance of one thief Ajith Nivard Cabraal.
Lalith Kotelawala had demanded a billion rupees in damages and also threatened to oust him from the post of Governor, Central Bank.
This is actually what happened: (This was published in LBO – Lanka Business online on 25th June 2008)
“ Sri Lankan businessman Lalith Kotelawala has demanded a billion rupees in damages from Central Bank governor Ajith Nivard Cabraal for trying to introduce rules that would effectively remove him from a bank and finance companies in his Ceylinco group.
Kotelawala also threatened to initiate legal action against Cabraal to remove him as central bank governor if he persists with the implementation of the proposed corporate governance codes for licensed commercial banks and registered finance companies.
In his letter of demand, released to the media, Kotelawala said the code of governance has been promulgated “specifically” to remove him as chairman and director of Seylan Bank and six finance companies in the Ceylinco group.
The corporate governance code proposed by the central will prevent directors of banks and finance companies from continuing in their posts if they are over 70 years, have been a director for more than nine years or are directors of more than 20 other companies or entities.
Kotelawala’s Ceylinco group consists of a diversified portfolio of business activities which include insurance, a credit card company, banking, micro finance, finance, leasing, house and property development, travel, health care, as well as a diamond venture, Blue Diamonds.
Kotelawala is also chairman of six registered finance companies; The Finance, Seylan Merchant Leasing, Finance & Guarantee Company, Asian Finance, Multi Finance and Ceylinco International Reality.
Kotelawala said the proposed code of corporate governance has been introduced as a direction under the Banking Act, “in ignorance” of the provisions relating to corporate governance in existing laws.
It was also “in violation of a citizen’s right to engage in a lawful trade, without age, number of directorial positions held,” he said in his letter of demand sent through his Attorney-at- Law.
Kotelawala described the code as “draconian” and said its legality has been challenged by Seylan Bank and other commercial banks in the Supreme Court and Court of Appeal of Sri Lanka.
He said that in spite of the pending litigation and sentiments expressed on behalf the Central Bank to bring about a settlement between the parties, Cabraal proposed a draft code of corporate governance for registered finance companies.
This was once again done “with the malicious intention and sinister motive of summarily removing” him from the position of chairman and director of the finance companies, Kotelawala said.
Kotelawala said he would proceed with legal action if Cabraal fails to pay and settle his demand for damages within two weeks.”
What we know is that all these court cases and arbitration that had gone on for over two and a half years is nothing but a drama and an eye-wash.
We therefore, earnestly appeal to His Excellency, the President to intervene in this matter and not allow his own people like Nivard Cabraal to take the law into their hands and cause misery to thousands of depositors not only GK but also all other companies, Like Ceylinco Global Profit Sharing and Investment Corporation Ltd., an arm of Ceylinco Group which was dealing in Islamic Finance and they too had to suffer for no fault of their own, because many of the business in the group were doing extremely well and this sudden collapse was a result of retaliation and revenge of a madman against a businessman who rubbed on the wrong side of Nivard Cabraal.
Will His Excellency the President, immediately rectify the situation that was prior to Jan 2009 and grant immediate relief to the suffering depositors?
Or will the action of Nivard Cabraal still continue to take its toll on the innocent peoples livelihood?
Shouldn’t the whole country rise against this madman Nivard Cabraal who caused this misery?
Over to you Mr. President.
By: Kapilavastu on May 25, 2011
at 1:23 pm
You are absolutely correct. He is the person (Cabral) who responsible for everything. We everybody knows he is the person who behind the “Gold Coin” Scam. He is a World class Bandit, but unfortunately Precedent appointed him(Bandit) as Governor of CB. That’s our faith. Now everything goes reverse in this country .
By: Sam on May 25, 2011
at 6:26 pm
So now the truth is out – isn’t high time for the people to demonstrate outside Nivard Cabral’s house and create a situation, so that His Excellency the President will oust him and go ahead with the granting of relief to the suffering?
By: Marielle on May 26, 2011
at 12:22 pm
My Suggestion to all depositors is not to make issues outside Nivard or any other’s place this will not get us our deposits back it will just delay any settlements, suggest go for the meeting called on this Sunday and settle the issue having Kavan in our control together with LK and other Directors of GK. – Thanks
By: Suraj on May 26, 2011
at 5:59 pm
You can go for the meeting and try to settle the issue – but do not forget the entire bedlam was caused because of a personal vendetta by Nivard Cabraal against Lalith Kotelawala. The people should be made known of it. The government should also be pressurised. Otherwise it will be another two decades before you will even see the colour of your money. Sorry for the comment – but this is reality
By: Marielle on May 27, 2011
at 10:45 am
this meeting held on SUNDAY 5th JUNE 2011,at 10.30 am in S DE S Jayasinghe hall. we have received a letter from this association. i think this dushanthi’s group can do something better than anusha’s group because they are honest than anusha n they are very educated people in this association not like anusha’s malu kade. all the officers are in the top level respect to them n believe them,so let them to do this meeting and we will c what r they going to do behalf of our money.
By: padma on May 28, 2011
at 8:50 am
Yes Dushani behaves more like a lady than Deshamanya Emmert!
By: arunalu on May 28, 2011
at 3:40 pm
I think its all a ploy to delay us getting our money for longer, that is they will put forward a bullshit proposal and we the poor people will decline it and will have to wait another five years for the next proposal, we are better off accepting whatever they are willing to give us and be done with it.
What do you guys think?
By: Malindu on May 30, 2011
at 5:27 am
GKCC depositors still left in the lurch
Uploaded by admin I. S. Senguttuvan, srilanka 10:34:00 PM
by I.S. Senguttuvan
(May 30, Colombo, Sri Lanka Guardian) The year 2009 bears much significance to the 7,000 plus GKCC depositors as it is to the rest of the country “liberated” in May of that year. While Prabakaran was inflicting his own dosage on his own people and the rest of the country, Lalith Kotelawala, inebriated with the self-inflicted belief he is yet another Avatar come to serve the country, was all set to destroy the lives of over 7,000 well-do-do families with his fanatical dream of turning the entire Colombo city into a Ceylinco Fantasy Land. Within a few weeks since 1/1/2009, school-going children from comfortable families in Colombo, Kandy, Galle and many other places had their educational careers shattered. Tens of thousands of people who lived an above-average lifestyle were rendered paupers by this misguided super-rich man of supposed to be noble birth. His wife, who paid herself over Rs.2 million a month for many years, remains outside the grasp of Interpol since she took flight This once respected body – Interpol – today has lost much of its credibility in failing to locate a woman widely believed to be in a Far Eastern city – under the very nose of the police in that country. Money certainly can do wonders even in hiding influential crooks.
The Sri Lanka Guardian and several other sections of the media have carried a campaign to help the depositors. The Supreme Court has shown concern , as has the President and the Governor of the Central Bank. It is understood last month a further (2nd?) advance of Rs.100,000 was paid to most of the depositors. These folk were assured by the Courts the payment will be Rs.200,000 to be paid mid-2011. Some of them have told the SLG they do not want to be called ungrateful but wish to painfully point out their families continue to be in dire straits. It is also understood the Depositors associations continue to battle on behalf of their members and have secured a concession of an assurance from Mr. Kavan Perera – former Deputy Chairman of GKCCC – that all depositors will be paid Annual Interest also at 6% If this accumulated interest is also paid to the depositors – calculated from December 2008 todate – this will go a long way to ease their anguish and the extreme difficult circumstances they are placed in.
There is still no public announcement of the status of the valuable GKCCC properties
the Supreme Court ordered to be sold at the best prices available in the market.
Depositors continue to fear some of the more valuable assets may have already been sold at considerably under-valued prices to favourites of the regime. This is why the Depositors call for a Statement from the government. The original value of the assets – said to be in excess of Rs.28 billion – was reported to be sufficient to meet the capital and interest of all depositors. The Committee that was set to protect the interest of the depositors seems to have lost their confidence and so that “ Special Vehicle” of a company to be formed to engage into trading to save depositors’ welfare. Since there are so many grey areas and alleged sinister activities going on, it is best the Central Bank issue a statement as to the actual affairs at the moment. The sooner this is done this will re-assure the depositors as well as help to maintain the government’s credibility. This is a matter of much public interest and the greatest measure of transparency and accountability is required here as a matter of urgency.
By: titinlama on May 30, 2011
at 11:07 pm
So what is Kavans plan?
By: titinlama on May 30, 2011
at 11:11 pm
Do You know MR . MILTON KARUNARATNE (Who Deposited -top amount- Rs.200,000,000.00 in GK) ?
He is the person who hiding Sisile Kothalawala in Australia. He is a billionaire in Australia owning Very big Wine Yards & very influential person. I know That bitch is living there.
By: Sam on May 31, 2011
at 11:44 am
Any has any Idea what Kavan is going to offer and how he is going to do it?
By: arunalu on May 31, 2011
at 12:35 pm
If Milton has top amount of 200million in GK why his he hiding Sisile should’nt he be the one most pissed off as he has lost the most unless he has got his money back, the plot thickens.
By: Malindu on June 3, 2011
at 5:45 am
200 million is nothing for him when compares to his wealth. They are good friends (k & Milton)from long times. That’s what I know. He is giving full security to her.
By: Sam on June 4, 2011
at 7:20 pm
Please go to this website : http://www.thesundayleader.lk/archive/20090517/spotlight.htm
The Gold Quest and Golden Key Scams were plotted by Nivard Cabraal.
Why can’t people see this? A diabolical scheme Showing the cunning, ingenuity and the wickedness typical of a devil like Nivard Cabraal, has really caused misery to thousands of families.
People, why don’t we press on this?
By: Marielle on June 3, 2011
at 10:50 am
You are absolutely correct. But to whom we can report against him. In Sinhala we say “Vatath Niyarath Goyam Kaminam Goviya kata Kiyannada?” That’s why they killed Lasantha.
By: Sam on June 4, 2011
at 7:44 pm
Please do not sign Any Documents at the meeting at 5th Sunday on Jayasingha Hall. You will be trapped. Court already ordered to sell belongs to kothalawala & Kavan Proerties and repay. These people try to stop it & helping K & Kavan. They have some other plan. Be careful you will be victim of this trap.
By: Sam on June 4, 2011
at 7:30 pm
Both of those two bitches (Anusha & Dusanthi) doing contract of Kothalawala & Kavan Perera. They want to stop court proceeding, selling properties of those bandits, Because they have agreement with K & K , If they can stop court proceeding they will get their money back in private. I am 100% sure,That the way they are doing. I know some Idiots sign that documents today at Jayasingha Hall – Dehiwala. They won’t get anything because of that. We have to fight against those two bitches because they will try stop court proceedings.
By: Sam on June 5, 2011
at 11:46 pm
Please let us know what’s happen at Dehiwala on 4th June ?
By: Cyril on June 8, 2011
at 6:44 am
Why don’t you reply for him ? Are you all frightened about MR? What sort of cowards are you?
This situation will erupt one day like in Egypt. But I am not sure our people don’t have back born………..
By: Sam on June 18, 2011
at 11:20 pm
This Fellow Marco seems to be the only honest man , who is trying to help the depositors with genuine concern.
By: p on June 24, 2011
at 1:58 pm
http://www.sundayobserver.lk/2011/05/29/new50.asp
“G. K. Depositors to get six % interest
by Shirajiv SIRIMANE
The Golden Key Depositors Association has decided to hold a meeting on June 5, at S. De. S Jayasinghe hall 10 a.m to spell out details about the new repayment plan.President of the Association, Dushanthi Hapugoda said that former CEO, Kavan Perera has agreed to pay six percent interest to all depositors in addition to their capital. “We are holding this meeting to explain to the 7054 depositors how and when this payment would be made .” she said.
The Ceylinco scam totals upto almost Rs. 20 billion and a sum of Rs. 700 million has been paid so far with small time depositors being settled.Six people have committed suicide over this scandal. ”
Seriously, has anybody got their money back? Nobody I know has got their’s. I will not trust Marco or anybody till I get my full deposit amount back. Everybody is using us for their own benefit.
By: Menaka on June 27, 2011
at 6:30 am
A GROUP OF DEPOSITORS DID A STUDY ON COMPANIES WITHIN THE GOLDEN KEY GROUP AND FOUND THAT CERTAIN COMPANIES ARE STILL OPERATING, HOW COME THAT THIS IS ALLOWED. PLEASE FIND DETAILS BELOW.
COMPANIES IN OPERATION IN SRI LANKA AS AT DATE
1. Ceylinco Consumer Electronics Ltd.
Prior to the collapse of The Golden Key Credit Card Company Limited funds were transferred by Mr. Saradha Sumanasekera, Group Finance Director and under whose purview this company operated, on a monthly basis to meet the monthly expenses such as Staff Salaries, Statutory payments, Lease rentals, rent for premises etc.
However, subsequent to the collapse of The Golden Key Credit Card Company Limited the company apparently runs at a profit and is still in operation.
It is evident that the funds transferred by Mr. Saradha Sumanasekera in connivance with Mr.
Bimal Mudalige – Executive Director would have been channeled to their Personal Bank Accounts, since at the collapse of The Golden Key Credit Card Company Limited they were able to run at a profit.
A Resolution by Circulation of The Golden Key Credit Card Company Limited was passed authorizing any two signatories to sign Cheques of any value, and it should be noted that Mr. Saradha Sumanasekera – Group Finance Director, Mr. Bimal Mudalige – Executive Director of Ceylinco Consumer Electronics Ltd and Mr. Shantha Ranatunge – Chief Financial Controller of The Golden Key Group were also Signatories to the Bank Accounts maintained by The Golden Key Credit Card Company, and thus signed Cheques transferring funds to Ceylinco Consumer Electronics Limited without the knowledge of Mr. Khavan Perera – Deputy Chairman.
The question arises whether the share of Mr. Saradha Sumanasekera was in turn transferred to Vidura College where Mr. Saradha Sumanasekera’s father is the Principal and a large extent of land was purchased for the school in Hokandara.
It is interesting to note that the earlier instructions to the Banks were that “any two signatories were authorized to sign cheques of Rs. 100,000/- and below and cheques exceeding required the Signature of a Director (Class A Signatory) and a Signatory of Class B or any Two Directors (Class A). This was subsequently changed.
2. Golden Key Consumer Durables Ltd. / Golden Key Consumer Products Ltd.
It should be noted that Mr. Kamal Peiris – Executive Director of these two Companies is the Brother of Mr. Nihal Peiris who is the Deputy Chairman of Ceylinco Financial Services Group and Group Finance Director – Ceylinco Consolidated.
Due to the above reason these two Companies are still in operation, inspite of the debacle that befell The Golden Key Group.
It is interesting to note that funds were requested on a monthly basis to meet statutory payments and staff salaries from The Golden Key Credit Card Company Limited prior to its collapse and these funds were transferred to these two companies as well.
It is rather funny that no sooner The Golden Key Credit Card Company Limited collapsed these two Companies had sufficient income to meet their monthly commitments and run at a profit.
It should also be noted that The Golden Key Credit Card Company made massive investments in these two companies at their commencement.
3. Golden Key Hospitals Ltd. (Golden Key Eye and ENT Hospital Limited)
This Company is still in operation and the Management was transferred to Ceylinco Insurance Company Limited.
Once again The Golden Key Credit Card Company Limited made many financial inputs to this Company on a monthly basis from the time Hospital was being constructed, at the commencement of the operation right up to the time The Golden Key Credit Card Company Limited collapsed.
4. Golden Key Reproductive Health Limited
This company is in operation under the name of “Prarthana Centre” and is located at the Golden Key Eye and ENT Hospital Limited on Cotta Road, Rajagiriya.
Funds were channeled from The Golden Key Credit Card Company Limited to sustain this Company as well.
5. Mnet Limited
Hereto the Company is in operation at No. 30, Amarasekera Mawatha, Colombo 5. Mr. Chandana Pathirana being the Executive Director.
It is interesting to note that Mnet Limited distanced itself from the Golden Key Group at the collapse of The Golden Key Credit Card Company Limited.
It should be noted that once gain considerable investments were made by The Golden Key Credit Card Company Limited at the commencement of business.
The Company is performing well at the moment.
6. Blue Chip Engineering Company Pvt Ltd.
The Golden Key Credit Card Company Limited purchased majority shares from the parent Company in the United Kingdom, where a considerable investment was made.
Blue Chip Engineering Company (Pvt) Limited functioned as a independent company attached to the Golden Key Group to avoid conflict of interests as their line of business was similar to that of the Golden Key Company Limited. However this company came under the purview of Mr. Suramya Karunaratne, Mr. Romesh De Mel functioned as the Managing Director and continues in this position to date.
The Company is performing well.
7. Golden Key Motor Company Limited – “Auto Kei” Sales Outlet
This Company is still in operation and their Sales Outlet is at 476/1, High Level Road, Nawinna, Maharagama.
The Executive Director of this Company is Mr. Kamal Peiris and the Sales Outlet is managed by Mr. Neil Priyadharshana.
The Golden Key Credit Card Company Limited once again invested considerable amount of funds at the inception of this Company.
It is once again interesting to note that the Mr. Neil Priyadharshana has interests in his family business of Motor Spare Parts, and at the inception imported a Container load of Spare Parts for the “Auto Kei” Sales Outlet and a major portion of these Spare Parts was channeled to his Spare Part shop which is located in Kirillapone.
COMPANIES IN OPERATION OVERSEAS AS AT DATE
• AKCeycom Ltd. Bangladesh
It is reported that this Company is still in operation and overlooked by Mr. Dinesh Dissanayake.
Considerable amount of funds invested by The Golden Key Credit Card Company Limited. This company is a Joint Venture between A.K. Khan and Company, Dhaka.
• Golden Key Company Australia (Pty) Ltd
The Company is in operation and overlooked by Mr. Ajitha Ediriwira.
It is from the Bank Account of this Company that funds are transferred to the Directors Personal Bank Accounts. Mr. Suramya Karunaratne was the Chief Executive Director of this Company.
COMPANIES THAT CEASED OPERATIONS IN SRI LANKA
1. Ceylinco Internet Services Ltd.
Operations wound up. Inquiries should be made as to what happened to the Hi-Tech equipment that was financed by The Golden Key Credit Card Company Limited.
2. Ceylinco Networking Technologies Limited /
CNT International Ltd. /
Ceylinco Micro Technologies Limited
It is interesting to note that both Mr. Sanjaya Padmaperuma – Executive Director of Ceylinco Networking Technologies / CNT International Ltd. / Ceylinco Micro Technologies Limited and Mr. Feroze Kamardeen – Executive Director of The Golden Key Company Limited have formed a company by the name of “South Asian Technologies Ltd.” which is located No. 104 3/1, 2nd Floor, Havelock Road (Opposite the Police Park), Colombo 4, which was the former premises of The Golden Key Credit Card Company Limited – City Office.
It is understood that the infrastructure that was funded by The Golden Key Credit Card Company Limited for their City Office is being used by South Asian Technologies Limited and Mr. Suramya Karunaratne who was the Deputy Chief Executive of the Golden Key Group and Chief Executive Director of several Companies in the Golden Key Group is directing operations of this Company.
It should be noted that Mr. Suramya Karunaratne is released on bail due to the fraud at The Golden Key Credit Card Company Limited.
3. Ceycom Global Communication Ltd.
This Company was an Internet service provider and had a massisve high-tech Dish Satellite installed in its Hub located in Hokandara, Malabe, along with the property and buildings, which was subsequently occupied by Golden Key Software Solutions Ltd.
It should be noted that all equipment, the Dish Satellite and property were purchased by funds from The Golden Key Credit Card Company Limited.
4. Golden Key Agrokem Company Ltd.
Operations ceased
5. Golden Key Call Centre Ltd.
The fate of the Computers etc. should be checked.
6. Golden Key Communication (Private) Limited
Operations ceased.
However, an investment was made by The Golden Key Credit Card Company at the time the company commenced operations. Should check on the fate of the hi-tech equipment.
7. Golden Key Housing and Real Estate Company Limited
Operations ceased
8. Golden Key International Trading Company Limited
Considerable investment made by The Golden Key Credit Card Company Limited, for the import of artifacts, furniture and other items from Bangkok for sale in Sri Lanka and Australia in the “Art ‘O’ Life” Showrooms.
Inquiries should be made as to the fate of the items that were imported and displayed in the Showroom and held in stock in the Stores, which ran into Millions of Rupees, also the items that were sent to the Gold Coast Showroom in Australia.
The Manageress of the Showroom was Ms. Damayanthi Perera and the Executive Director was Mrs. Nandany Kumar, who had a major influence over Mr. Khavan Perera.
9. Golden Key Software Solutions Ltd.
Inquiries should be made into the fate of the high-tech machines that were used by the staff of this Company. Funds were also transferred from The Golden Key Credit Card Company Limited.
10. Golden Key Tea Factory Limited
A tea estate was purchased in Ratnapura, and an investment was made by The Golden Credit Card Company Limited. Mr. Lasantha Wickremasinghe functioned as the Executive Director of this Company.
The fate of the Tea Estate.
11. Golden Key Travels (Pvt) Ltd.
Operations ceased.
12. Impression Creative Solutions Ltd.
Operations ceased.
13. Key Research & Information Limited
Operations ceased
14. Lanka Ecom Technologies Ltd.
Operations ceased.
15. The Golden Key Company Limited
Considerable amount of funds available in the Accounts overseas, especially in Australia. Mr. Suramya Karunaratne was the Deputy Chief Executive Director of this company.
16. The Golden Key Institute of Computer Technology Ltd. / The Golden Key Institute of Information Technologies Ltd.
Operations ceased.
However, considerable investment made by The Golden Key Credit Card Company Limited, and the fate of the Computers and other related equipment used at the Head Office in Nugegoda and Branches that were located in several major town in Sri Lanka.
Information could be obtained from Mr. Kosala Pathirana (Mobile No. 0712-751689) who was the Chief Operating Officer over considerable period of time and was succeeded by Mr. Kapila Giragama.
17. The Golden Key Trading Company Limited
Information indicates that this Company is being operated under the guise of another name by Mr. Lasantha Wickremasinghe, who was the Executive Director of The Golden Key Trading Company Limited. An investment was also made by The Golden Key Credit Card Company Limited in this Company at the inception and thereafter on a regular basis funds were transferred.
18. Golden Key Call Centre Ltd.
Investigation should be done into the fate of the hi-tech computers used.
19. The Ceylon Service and Suppliers Company Ltd.
Funds from The Golden Key Credit Card Company Limited were utilized to purchase the Company from the earlier owners.
20. Golden Key Minerals Ltd.
A 6 Acre land was purchased in Narammala with funds from the The Golden Key Credit Card Company Limited.
Further sophisticated high-tech machinery was also purchased, and this too was funded by The Golden Key Credit Card Company Limited.
21. Golden Key Plantations Ltd.
A 50 Acre property with a Teak plantation comprising 22,000 Teak Trees was purchased in Galewela with funds from The Golden Key Credit Card Company Limited, and Mr. Dinesh Hindigolla was assigned to oversee the operation, along with Mr. Shantha Ranatunge who was appointed at Executive Director.
Further 60 Acre property was purchased in Puttalam with funds from The Golden Key Credit Card Company Limited.
The fate of the land should be investigated.
FOREIGN COMPANIES
• Ceylinco Golden Key Corporation Pty Ltd., Queensland, Australia
It should be noted that The Golden Key Credit Card Company Limited transferred huge amounts of money for operations overseas. Especially for the operation of Ceylinco Golden Key Corporation Pty Ltd. whose Executive Director was Mrs. Nandany Kumar and operated the “Art ‘O’ Life” Showrooms.
• Associated Global Investments – Offshore Banking Account, Mauritius
(Maintained by Ceylinco Consolidated)
The Foreign Exchange earned by Overseas Companies of Ceylinco Consolidated was deposited in the Offshore Banking Account maintained in a Bank in Mauritius by Ceylinco Consolidated under the name of “Associated Global Investments”.
Mr. Nihal Peiris Deputy Chairman of the Ceylinco Financial Services Group and also Group Finance Director of Ceylinco Consolidated was in charge of handling all matters relating to the Offshore Banking Account maintained in Mauritius.
All Deputy Chairmen/Chairpersons are aware of this Account.
• Purchase of Property in Gold Coast
Funds were transferred from several companies in the Golden Key Group to Australia for the purchase of a property in Gold Coast which was to be developed.
Mr. Mervyn Samaratunga and Mr. Nihal Wickremasinghe who were overseeing activities of Ceylinco SLATS Developments Pty Limited were instrumental in handling this transaction.
At the time of the collapse of The Golden Key Credit Card Company Limited the Property was still held.
• Mr. David Sidhu
Mr. David Sidhu handled the Company Secretarial and Legal aspects of all the Companies in Australia attached to the Golden Key Group. Mr. David Sidhu was attached to International Professional Services Pty. Ltd.
• Apartment in Sydney
An Apartment was purchased in Sydney for Mr. Ajitha Ediriwira and his family, the funds for this Apartment was from the Golden Key Australia Pty. Ltd.
By: M. gONE on June 30, 2011
at 12:32 am
Good Comment by Mr. M.Gone. I do hope that the Depositors Associations will note what is mentioned above and take appropriate action. Two and a Half Years and the Depositors are suffering.
I hear that the so call Kotelawala is now taking refuge behind the Cross. It is good to repent, but with repentance comes paying back what you have stolen. Mr. Kotelawala why dont you get the money you have in you overseas Accounts – especially as stated by the study done by Mr. Gone – from you Account in Mauritius and pay the Depositors and then you could preach the Gospel, otherwise the Bible clearly states that you would will burn in the LAKE OF SULPHUR for eternity – how would you like Mr. Kotelalwala – do not play the fool with the Almighty God.
I understand that General Srilal Weerasooriya (former Army
Commander) and his wife Dilhani conducts prayer meetings at Mr. Kotelawala’s residence at Elibank Road and Mr. Kotelawala has paid back the Deposit of Srilal Weerasooriya running into several millions and Mr Srilal Weerasooriya was appointed a Director at Ceylinco Insusrance Company Limited (Life), because of him aiding and abetting Mr. Kotelawala in his acts of robbery and treachery.
Well Mr. Weerosooriya is this the Gospel you preach and how come that the People’s Church you worship at in Kirimandala Mawatha encourages people like you and your Wife who are wolves in Sheep clothing, bringing disgrace to Jesus Christ. You say it is answer to Prayer – but is God unjust – certainly not – even though you make JESUS look that way.
Pastor Colton, Pastor Dishan and Minister Eran it is time for you to take action against your flock and issue a statement that your Parish has nothing to do with Kotelawala and his fraud for Mr. Weerasooriya implies that you and your Church are also benefitting.
Also understand that Sicille is Globe trotting and living a luxurious life, even as Mr. Kotelawala does the same here in Sri Lanka.
Finally, what is Khavan Perera doing, he posed to be a Gentleman who honours his word – but it is too long a wait. Khavan it is time you revealed the misdoings of your Chief Kotelawala and where he holds his deposits overseas or else you too will have to face the consequencye of being thrown into prison once again. It is a known fact Khavan that you were one time Kotelawala’s very close Confidante.
Any thank you Mr. Gone for the information and enlightening the Depositors in your article above.
By: D.E.P. Ositor on June 30, 2011
at 1:06 am
Still waiting for 29th June decision at court please somebody tell us how we get back our money & when we will get it ?
By: Cyril on July 1, 2011
at 6:53 am
http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=29254
By: Joris.laureys on July 3, 2011
at 8:05 am
15% to be repaid within six months – Three former GK directors join efforts to sell assets and repay depositors
July 2, 2011, 6:59 pm
By Suresh Perera
In an encouraging development which offer a glimmer of hope to struggling Golden Key (GK) depositors, three former directors of this collapsed Ceylinco subsidiary are expected to sit together with the Committee of Chartered Accountants and representatives of depositors’ associations to jointly initiate the process of selling assets and mapping out a feasible repayment formula.
This follows last week’s Supreme Court directive sanctioning GK’s former Chief Executive Officer cum Deputy Chairman, Khavan Michael Perera, Finance Director, Saradha Sumanasekera and Neranjan Fernando, who also served on the Board, to work in conjunction with the Committee to identify and dispose of assets and properties to settle liabilities of investors.
In addition, another former director, Suramya Karunanayake was granted permission to assist Mangala Boyagoda, Managing Director, Wealth Lanka Management, in evaluating the company’s ‘Information Technology Cluster’.
A six-member advisory committee will be formed to ensure the interests of depositors. An officer each from the CID and the Central Bank will also be assigned to liaise with the Committee headed by Prof. Lakshman R. Watawala and comprising Nelson Nagasinghe and Mahendra Panditha appointed by the Supreme Court.
Depositors are expected to receive 15% of their deposits within six months under the first phase of the proposed repayment scheme, the modalities of which are to be worked out in consultation with depositors’ associations. In terms of the plan, the first year will see a settlement of 30% of the liabilities.
“We are keen to kick-start the repayment process but it is too premature to comment on the mode to be adopted to settle depositors”, senior officials said. “What’s critical is to raise funds to take the initiative forward”.
The former GK directors have given an undertaking to the Supreme Court that they would raise 3.1 billion rupees to meet the initial repayment commitment towards depositors. They have identified and compiled a schedule of the significant assets of the Golden Key Group comprising land, buildings and certain equipment valued at 7.72 billion rupees.
Some of assets listed in the schedule for disposal to raise funds are the sale of three floors of Ceylinco House, the Golden Key Head Office building which is jointly owned with Ceylinco Insurance Company Limited (GK’s share for this 20,000 square foot building on 20 perches would be 100 to 150 million rupees based on the current market values), 393.9 perches of land and modern office premises at Hokandara and a 50-acre teak plantation with approximately 22,000 trees in Galewela.
In addition, a private placement of the Golden Key Eye and ENT Hospital would contribute Rs 600 million towards the repayments by settlement of the loan obtained from GK and another private placement of the proposed Hospital/Hotel Project on the property located at Kirimandala Mawatha, Colombo 5 could contribute Rs. 400 million, the directors have stated.
They have expressed optimism of raising approximately 3.2 billion rupees, which is in excess of the maximum liability of Rs. 3.1 billion required for implementing the first year’s payments in terms of the proposed payment plan.
Asked whether this meant that all excess interest payments already made will be discounted from the capital with a refund of deposits on the basis of a flat 6% interest rate from the date they were made, officials replied, “Yes, the calculations were based on that proposal submitted by the former GK directors”.
“They are trying to grab back interest already paid, but what about the two and a half years since GK’s crash in December 2008 when interest on our capital was denied?”, an irate depositor queried. “It appears that we have given away our hard-earned money in the effort to recover at least some of our dues”.
“We have to wait another six months for the first repayment to materialize. This means that depositors had waited a full three years sans their capital or interest”, he complained. “What we are asking is for justice to be done”.
“This is a contentious issue we need to sit down, discuss and sort out”, says Dushanthi Hapugoda, President, All GKCC Depositors’ Association. “We are optimistic of working out a reasonable repayment system”.
“We need to look at identifying and selling more assets to raise liquid cash as we move forward so that depositors can be adequately reimbursed at the end of the day”, she explained. “For this to happen, it is imperative that the repayment process gets off the ground”.
GK’s former CEO and other directors have, at least now, come forward to ease the suffering of thousands of depositors, but the crucial issue here is that Lalith Kotelawala, who was the Group Chairman and hence directly responsible for the debacle, remains aloof, she said.
“We are badly disappointed as he could have made a more meaningful contribution to clear this mess which had ruined the lives of scores of people, some of whom had committed suicide”, Ms. Hapugoda said. “But, Kotelawala continues to live in luxury”.
The groundwork relating to the clearance of more than 8,000 GK accounts for repayments will have to be completed within the next three months, officials said. “With the disposal of identified assets, this will leave three more months for actual payments to be done in keeping with the stipulated timeframe”.
By: arunalu on July 3, 2011
at 12:13 pm
Sigh of relief for GK depositors after 30-mth wait
By Bandula Sirimanna
An alternative re-payment plan aimed at finding redress for disgruntled depositors of Golden Key (GK), after almost 30 months is to be implemented soon after the Supreme Court endorsed the appeal made by members of GK depositors associations and former directors, lawyers of depositors said.
The 3-member Supreme Court bench headed by Justice Shirani Tilakawardane on Wednesday ordered GK’s former directors to take measures immediately to start the repayment process and to re-open the GK head office only for this purpose. All these activities will be carried out under the supervision of the Central Bank and with the special security provided by an officer of the Criminal Investigation Division. The Court directed that the 3-member accountants committee headed by Lakshman R. Watawala should continue their functions for a further six months to streamline the procedure. The Court has taken this decision considering the practical modalities that are going to be utilized for the repayment of the depositors in the first year which will provide a settlement of 30%of the deposits amounting to the value of Rs.3.7 billion.
These modalities were presented to the court by the former directors. The Court ordered them to submit a business plan for the full repayment. According to this repayment plan, all deposits at the rate of between 25% to 100% will be repaid within four years at 6% interest considering the amount and the period of deposits. Depositors who made deposits shortly before the collapse of the company will be given priority under the repayment plan, Attorney Generals Department sources said.
President of the Golden Key Depositors Society Anusha Emmert told the Business Times that they held meetings in Colombo, Kandy and several other areas to create awareness on this plan among depositors and around 2,400 depositors have given their consent by signing the documents. She said that this was the first time that the GK directors have stepped in to find some redress for them.
By: arunalu on July 3, 2011
at 1:22 pm
Thank you for the article Arunalu, but I do not understand the rational behind giving priority to the new depositors over the others. Is there a reason for it?
By: Madhav on July 4, 2011
at 2:25 am
Anusha new depositors and they worked more than any one else for every anti GK/Lalith action… and some pro Lalith activities
By: arunalu on July 4, 2011
at 1:15 pm
(July 04, Colombo, Sri Lanka Guardian) After the recent 2nd payment of Rs.100,000 (as opposed to the Supreme Court directive to pay Rs.200,000) it is reported in a meeting facilitated by the CBSL some former Directors of GKCCC, including its point man, Deputy Chairman Khavan Perera and a new Committee comprising of former GKCCC, Despositors associations, the Committee of Chartered Accountants et al have, initially, agreed to pay back the 7,000 plus depositors within a time-frame. Depositors were assured 15% of their funds will be paid to them by December 2011 and a further 15% by May 2012. But what rattles the depositors is the fear that interest paid to them earlier will be deducted against future settlements. This, depositors say, is patently unfair because the company earned profits from the latter’s capital. Besides, they insist, between December 2008 and now the funds lying would have been used for profit-bearing purposes. Depositors continue to ask for a settlement based on the already agreed formulae of 6% per annum interest on capital held with no deductions on interest payments made prior to December 2008. They also say it is best the case of all those with capital of Rs.2 million and under be disposed of first so that this will leave a lighter load for the new Committee to handle. It is also pointed out while they are pushed to the streets with hardly any income the man behind it all Lalith Kotelawala lives in luxury with hardly any of his assets being touched. They express surprise the man keeps silent after using their money to come on TV every week extolling all his humane and altruistic qualities – all of which now seem so shallow.
Sri Lanka Guardian took up the matter and highlighted the issue in several editorials and Feature articles because several depositors met us with their terrible tales. It is sad to see some children of what were once wealthy upper-middle Class Colombo society parents having lost even their schooling. We are happy the Governor of the Central bank, the Supreme Court and the government in general are trying to help. Depositors still fear they will be cheated of their funds in the light of speculation that some valuable properties have changed hands surreptitiously. They share with us their worry while, at the time of the collapse in late 2008, the value of unencumbered GKCC assets was in excess of Rs.28 billion is now talked in much lower terms. That will be unfortunate, to say the least as these helpless continue to hope they will come out of their nightmare soon with the help and intervention of President Mahinda Rajapakse. This is why they ask the CBSL or any other relevant section of the government to announce a list of GKCCC asset values taken over in December 2008 and held as at date. If any were sold in the interim the name of the purchaser, the asset, value and sale date will be useful in the interest of transparency and accountability.
By: arunalu on July 4, 2011
at 2:18 pm
HOW PATHETIC THAT KHAVAN PERERA IS GOING TO RECOVER THE INTEREST PAID TO DEPOSITORS OVER THE YEARS, THIS IS NOT ACCEPTABLE, AND NO ONE WITH THE RIGHT FRAME OF MIND WILL ACCEPT THIS MODE OF REPAYMENT.
IT IS A SHAME AND DISGRACE THAT KHAVAN PERERA WHO HAILS FROM THE FAMILY OF A FORMER RETIRED ARMY COMMANDER AND THE SON-IN-LAW OF A LATER RETIRED ARMY COMMANDER STOOPS TO THIS LEVEL.
ON THE OTHER HAND IT IS NO SURPRISE AS KHAVAN PERERA USED THE DEPOSITORS MONEY TO SUSTAIN HIS MISTRESS NANDANY KUMAR (A RESPECTABLE PROSTITUTE) AND TAKE HER ON HIS FOREIGN TRIPS, TRAVELLING BUSINESS CLASS AND SPENT BILLIONS OF RUPEES ON NANDANY KUMAR, HAVING HER APPONTED AS A DIRECTOR OF SEVERAL COMPANIES IN THE GOLDEN KEY GROUP, AND PAYING HER AN ENORMOUS SALARY AND OTHER BENEFITS SUCH AS ENTERTAINMENT ETC.
WHAT HAS HAPPENED TO THE PROPERTY THAT WAS PURCHASED IN QUEENSLAND, AUSTRALIA BY KHAVAN PERERA AND NANDANY KUMAR, WHERE THE FUNDS WERE REMITTED FROM THE GOLDEN KEY CREDIT CARD COMPANY LIMITED AND GOLDEN KEY COMPANY AUSTRALIA PTY LIMITED.
THE MOST LEARNED AND HONOURED BENCH OF THE HOUNARABLE SUPREME COURT SHOULD CALL FOR AN INQUIRY AND ALSO HAVE A PERSON BY THE NAME OF MERVYN SAMARATUNGE AND NIHAL WICKREMASINGHE WHO WERE DIRECTORS OF CEYLINCO SLATS DEVELOPMENT PTY LTD. (AS STATED IN THE ARTICLE BY MR. M. GONE) WHO WERE INSTRUMENTAL IN PLAYING A MAJOR ROLE IN THE PURCHASE OF THE PROPERTY., BROUGHT TO SRI LANKA AND FURTHER INFORMATION OBTAINED.
IT SHOULD ALSO BE NOTED THAT LALITH KOTELAWALA (WHO WANTS TO WASH HIS HANDS OFF LIKE PONTIUS PILATE WHERE JESUS CHRIST WAS CONCERNED IN THE BIBLE) WAS ALSO A DIRECTOR OF THIS COMPANY AND OTHER COMPANIES IN AUSTRALIA HANDLING PROPERTY AND SO WAS HIS WIFE THE SO CALLED (LADY DR.) SICILLE PRIYA CARMINI KOTELAWALA.
THE PROPERTIES IN GOLD COAST, QUEENSLAND AND OTHER STATES IN AUSTRALIA SHOULD ALSO BE CEASED AND DISPOSED OF AND THE SUFFERING DEPOSITORS PAID BACK WITH NO DEDUCTIONS OF INTERERST MADE.
AFTER ALL LALITH KOTELAWALA, KHAVAN PERERA AND SARADHA SUMANASEKERA ARE CONFIDENT TRICKSTERS (THIEVES) WHO LIVED ON OTHER PEOPLES MONEY AND NOW HAS BROUGHT DISASTER TO THOUSANDS AND THOUSANDS OF OLD AND YOUNG MEN, WOMEN AND CHILDREN, DIRECTLY AND INDIRECTLY.
EVEN BEFORE DEATH THEY WILL HAVE TO SUFFER AND KHAVAN PERERA WHO WAS ONCE A DEVOUT CATHOLIC AT DEATH WILL HAVE TO BURN IN THE LAKE OF SULPHUR FOR ETERNITY FOR THIS MISDOING, IF HE DOES NOT RECTIFY SAME AND PAY THE DEPOSITORS THERE FULL TOTAL BALANCE OF THE DEPOSIT WITH NO DEDUCTIONS WHATSOEVER. KHAVAN PERERA AND THE BOARD OF DIRECTORS WHO COMPRISED AS BELOW -
LALITH KOTELAWALA
KHAVAN PERERA
SICILLE PRIYA CARMINI KOTELAWALA
SURAMYA KARUNARATNE
ALAGIAH DANIEL JEGASOTHY
BANDULA RANAWEERA
PADMINI KAMALADEVI KARUNANAYAKE
NIRANJAN FERNANDO (INNOCENT VICTIM)
WILL ALL BE CURSED BY GOD IN THEIR REMIAINING LIFE AS WELL AS AFTER DEATH THEY WILL SUFFER FOR ETERNITY, AS THIS IS THE CURSE OF ALL DEPOSITORS MORNING, NOON AND NIGHT.
HOW TRUE THE ARTICLE ABOVE ABOUT LALITH KOTELAWALA WHO USED TO HELP THE POOR WITH OTHER PEOPLE’S MONEY TRYING TO BUY MERIT FOR HIMSELF, HE WILL SUFFER BEFORE DEATH IMMENSELY IF HE DOES NOT REPENT AND PAY BACK THE FULL TOTAL AND ENTIRE DEPOSITS OF THE INNOCENT VICTIMS.
WAS IT NOT THE SO CALLED SAINT LALITH KOTELAWALA WHO WANTED TO PAY BACK THE DEPOSITORS OF THE COLLAPSSED SAKVITHI COMPANY (WELL THIS WAS PUBLISED IN THE NEWS PAPERS).
HOW TRUE WHAT THE PERSON SAYS ABOVE THE LALITH KOTELAWALA IS LIVING IN LUXURY, AND MAY I MENTION THAT KHAVAN PERERA AS WELL IS LIVING IN LUXURY AT DEHIWELA IN THE HOME OF HIS LATE FATHER-IN-LAW AND MOTHER-IN-LAW (AN HONOURABLE LADY AND GENTLEMAN), WHO DIED BECAUSE OF WHAT KHAVAN PERERA DID.
IT IS ALSO INTERESTING TO NOTE THAT KHAVAN PERERA’S DAUGHTER IS NOW HAPPILY PRACTICING IN LONDON AS HE USED THE DEPOSITORS MONEY TO EDUCATE THESE TWO YOUNG LADIES.
ALL IN ALL THERE IS LOADS AND LOADS OF MONEY HIDDEN AND STACKED AWAY AT CEYLINCO CONSOLIDATED AND WITH LALITH KOTELAWALA AND HIS WIFE AND THE OTHER DIRECTORS, WHICH IF ALL POOLED COULD PAY ALL THE DEPOSITORS AND THE DIRECTORS COULD ALSO LIVE A HAPPY LIFE EVER AFTER.
IT SHOULD ALSO BE NOTED THAT THE STAFF AT GOLDEN KEY TOLD THE DEPOSITORS WHEN THEY CALLED OVER IN FEAR OF THE COLLAPSE THAT THEY NEED NOT WORRY SINCE THE GOLDEN KEY BELONGS TO CEYLINCO GROUP AND THAT IF IT COLLAPSES THE OTHER COMPANIES WILL SUSTAIN, REVIVE AND PAY BACK THE DEPOSITS.
THE STAFF WERE ALSO TAUGHT TO TELL THE DEPOSITORS THAT CEYLINCO INSURANCE HAS MORE THAN ENOUGHT OF RESERVE FUNDS TO PAY THE DEPOSITORS………
WELL WHAT HAS HAPPENED NOW…… CEYLINCO INSURANCE PLC (LIFE AND GENERAL) RUN AND OPERATED BY R. RENGANATHAN AND AJITH GUNAWARDENA ARE PROSPERING.
SHOULD NOT AN ORDER BE ISSUED TO DELIST THE COMPANY FROM THE STOCK EXCHANGE, FREEZE, CEASE AND SELL THE ASSETS AND USE THE RESERVE FUNDS TO PAY BACK THE DEPOSITORS.
IT IS ALSO LEARNT THAT LALITH KOTELAWALA HOLDS CONSIDERABLE SHARES APART FROM SEYLAN BANK PLC, IN CEYLINCO DEVELOPMENT BANK (WHICH NOW OPERATES AT CITIZENS DEVLEOPMENT BANK), AND CEYLINCO SAVINGS BANK, WHY ARE THESE SHARES NOT CEASED AND SOLD ALONG WITH THE OTHER SHARES HE HOLDS IN EACH AND EVERY COMPANY IN CEYLINCO CONSOLIDATED.
HOW ABOUT THE GRAMEEN CREDIT COMPANY LTD. WHERE GOLDEN KEY MADE MAJOR CONTRIBUTIONS AND IS A SHAREHOLDER. BLUE DIAMONDS WHERE FUNDS WERE PUMPED IN ON MONTHLY BASIS, WHY ARE THESE NOT SOLD AND THE DEPOSITORS PAID BACK.
IT IS ALSO LEARNT THAT THE GOLDEN HOLDS SHARES IN EACH AND EVERY COMPANY OF THE CEYLINCO GROUP AND SOME OF THE NAMES OF THESE COMPANIES COULD BE OBTAINED FROM ONE MILE LONG VISITING CARD OF LALITH KOTELAWALA. PROBABLY SOMEONE IS IN THE POSSESION OF HIS VISITING CARD IT WOUULD SCANNED AND PUBLISHED ON THIS SITE.
APPARENTLY LALITH KOTELAWALA IS ALSO INCORPORATING COMPANIES ONCE AGAIN AS THE FOUNDER CHAIRMAN AND OPERATING HIS OFFICE FROM 28, ELIBANK ROAD, COLOMBO 5 AND HIS SECRETARY IS SHYAMA THANGIAH (WHO IS ALSO A CHRISTIAN AND PLAYS A ROLE IN THE MOCKERY OF JESUS CHRIST) SAYING THAT LALLITH KOTELAWALA IS BORN AGAIN, MY FOOT, WITH REPENTANCE COMES THE CHANGE OF HEART AND THE PAYING BACK OF WHAT YOU HAVE STOLEN. THIS TEAM OF SO CALLED BORN AGAIN CHRISTIANS ARE A MOCKERY TO THE LORD JESUS CHRIST AND HIS GOSPEL.
SO MY BROTHER AND SISTER DEPOSITORS YOU COULD SEE FROM THE ARTICLES ABOVE THE CROOKED SCHEMES ADOPTED BY KHAVAN PERERA AND LALITH KOTELAWALA, WHICH WE SHOULD NOT TOLEERATE, BUT GET ON TO THE STREETS AND PROTEST AND SHOW OUR UNITY THAT WE REQUIRE OUR TOTAL INVESTED MONEY BACK WITH NO RECOVERY WHATSOVER.
I AM STILL INVESTIGATING INTO OTHER ASSETS AND WILL KEEP YOU ALL POSTED IN DAYS TO COME.
By: D.E.P. Ositor on July 5, 2011
at 1:09 pm
Kotalawela indicted
Friday, 08 July 2011 12:50
E-mail Print
Former Ceylinco Chairman Lalith Kotalawela has been indicted before Colombo High Court for misappropriation and criminal breach of trust by Golden Key Credit Card Company.
The Attorney General has framed multiple charges against Kotalawela under the Finance Companies Act. (Daily Mirror online)
By: goodfellow on July 8, 2011
at 1:16 pm
Criminal charges against Kotelawala
Saturday, 09 July 2011 00:35
By Susitha R. Fernando and Farook Thajudeen
Former Ceylinco Chairman Lalith Kotelawala and the Golden Key Credit Card Company (GKCCC) Board of Directors were yesterday indicted in the Colombo High Court on charges of criminal misappropriation and criminal breach of trust.
The Attorney General has framed charges against Mr. Kotelawala and others under the Penal Code and Finance Companies Act for the offences they had committed from March 1999 to December 2008.
Mr. Kotelawala and the GKCCC Board of Directors were charged with conspiring to misappropriate in connivance with the late Mr. Nallanthuwan, one of the suspects in the magisterial inquiry into the alleged misappropriation of deposits worth Rs.26 billion belonging to the GKCC. Mr. Nallanthuwan died during the magisterial inquiry.
The indictment is connected to the unlawful financial activities of GKCCC. GKCCC Chief Executive Director Khavan Perera and Directors Saradha Sumanasekara, Suramya Karunanayake, Niranjan Fernando, Lalith Kotelawala, Sicille Kotelawala, Punyashantha Ranatunga and an Inland Revenue Department official W. R. Dharmasiri were indicted on 91 charges.
Among the charges were the violating of the Finance Companies Act and conspiring and aiding and abetting to do so.
According to the indictment the GKCC Board of Directors and Ceylinco Consolidated Chairman Lalith Kotelawala had misappropriated funds by investing in other companies and other businesses funds amounting to more than four billion rupees that were deposited in the company from 2002 to 2008. The amount of misappropriated funds that were deposited in the GKCC were Rs.189,002,798 in 2002, Rs.16,886,465 in 2003, Rs.222,378, 465 in 2004, Rs.956,007,858 in 2005, Rs.1165, 273, 809 in 2006, Rs.912,111,186 in 2007 and Rs.592, 317, 916 in 2008.
The AG has listed 778 witnesses and 82 documents are to be produced as evidence.
By: goodfellow on July 9, 2011
at 1:35 am
Lalith K, 8 others indicted in HC
The Attorney General Mohan Peiris on Friday (8) indicted former Ceylinco Chief Lalith Kotelawela and eight directors namely Kaman Perera, Sarada Sumanasekera, Suranga Karunanayake, Niranjan Fernando, Priya Kotelewela, Padmini Karunanayake, P. S. Ranasinghe and V. Dharmasiri in the Colombo High Court over the alleged misappropriation of Rs. 7,200 mn belonging to depositors.
They are alleged to have set up a financial operation between March 23, 1993 and
Jan. 24, 2008 in connivance with the late Muthukumaran Nallan. The accused are believed to have misappropriated the money between 2002 and 2008.
http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=29701
By: Reporter on July 9, 2011
at 7:54 am
Directors of GK noticed to appear in court
WEDNESDAY, 13 JULY 2011 02:27
By T. Farook Thajudeen
The Colombo High Court noticed former Ceylinco Chairman Lalith Kotelawela and the Board of Directors of Golden Key Credit Card Company (GKCCC) to appear before Court on July 27 to face charges of criminal misappropriation and criminal breach of trust by running the now defunct Golden Key Credit Card Company.
High Court Judge Deepali Wisundera issued notice on Lalith Kotalawala and the eight other Directors of the GKCCC sequel to the Attorney General framing charges against Mr. Kotelawela and the others under the Penal Code and Finance Companies Act for offences committed from March 1999 to December 2008.
Mr. Kotelawela and the GKCCC Board of Directors and another were charged with conspiring to misappropriate in connivance with the late Mr. Nallanthuwan, one of the suspects in the magisterial inquiry into the alleged misappropriation of deposits worth Rs.26 billion belonging to the GKCCC. Mr. Nallanthuwan died during the magisterial inquiry.
The indictment is connected to unlawful financial activities of GKCCC. Its Chief Executive Director Khavan Perera and Directors Saradha Sumanasekara, Suramya Karunanayake, Niranjan Fernando, Lalith Kotalawela, Sicille Kotalawela, Punyashantha Ranatunga and an Inland Revenue Department official W. R. Dharmasiri were indicted on 91 charges for violating the Finance Companies Act and conspiring and aiding and abetting to do so.
According to the indictment the GKCCC Board of Directors and Ceylinco Consolidated Chairman Lalith Kotalawela had misappropriated funds by investing in other companies and other businesses amounting to more than four billion rupees that were deposited in the company from 2002 to 2008 by the depositors.The amount of misappropriated funds that were deposited in the GKCCC were Rs.189,002,798 in 2002, Rs.16,886,465 in 2003, Rs.222,378, 465 in 2004, Rs.956,007,858 in 2005, Rs.1165, 273, 809 in 2006, Rs.912,111,186 in 2007 and Rs.592, 317, 916 in 2008. The AG has listed 778 witnesses and 82 documents to be produced as evidence.
By: adobo on July 13, 2011
at 11:52 am
One more charged in GK scam case
July 13, 2011, 10:10 pm
By Jayantha de Silva
One more person had been listed as a suspect in the Rs.26 billion Golden Key credit card scam case being heard at the Mt. Lavinia Magistrate’s Court last week. The suspect Punya Kantha Silva is the eleventh person to be served with notice.
Mt.Lavinia Chief Magistrate Ms. Nirosha Fernando ordered the suspect to be enlarged on Rs.100,000 cash bail and Rs.1 million surety bail with two sureties.
The passport of the suspect was impounded.
IP Nalin Herath of the CID did not object to granting of bail.
By: adobo on July 14, 2011
at 12:51 pm
Who is that guy Punya Kantha?
By: adobo on July 14, 2011
at 12:57 pm
No one knows??
By: adobo on July 19, 2011
at 12:01 pm
Lalith bailed in GK case
Seven people accused in the Golden Key fraud case including former Ceylinco Chairman Lalith Kothalawela were released on a Rs. 5 million surety bail by the Colombo High Court today.
The court served indictment papers on each of the accused.
Colombo High Court judge Deepali Wijeyasundere issued an arrest warrant on the sixth accused, Cecilia Kothalawela who was not present in court.
http://www.dailymirror.lk/news/12636-lalith-bailed-in-gk-case-.html
By: Reporter on July 27, 2011
at 12:22 pm
Lalith bailed in GK case
WEDNESDAY, 27 JULY 2011 11:54
Seven people accused in the Golden Key fraud case including former Ceylinco Chairman Lalith Kothalawela were released on a Rs. 5 million surety bail by the Colombo High Court today.
The court served indictment papers on each of the accused.
Colombo High Court judge Deepali Wijeyasundere issued an arrest warrant on the sixth accused, Cecilia Kothalawela who was not present in court.
(Lakmal Sooriyagoda)
By: adobo on July 27, 2011
at 12:26 pm
Golden Key case: Seven accused granted bail
THURSDAY, 28 JULY 2011 03:01
By Lakmal Sooriyagoda
Former Ceylinco Chairman Lalith Kotelawala and six others who were indicted in connection with the Golden Key Credit Card fraud were yesterday released on a surety bail of five million rupees each by the Colombo High Court.
The third accused was released on the bail condition set by a Mount Lavinia Magistrate’s Court on a previous occasion.
The Court also served indictments on each accused in the case and ordered that their finger prints be taken.
Senior state counsel Damith Totawatta appearing for the Attorney General asked Court to proceed with the trial in the absence of the sixth accused Sicille Kotelawala who has been absconding from Court. Contd. from A1
High Court Judge Deepali Wijesundara issued an arrest warrant on Ms. Kotelawala fixed the trial for November 17.
On July 8 Mr. Kotelawala and the Golden Key Credit Card Company (GKCCC) Directors were indicted in the Colombo High Court on charges of criminal misappropriation and criminal breach of trust.
Mr. Kotelawala and the GKCCC Directors were charged with conspiring to misappropriate with the connivance Mr. Nallanthuwan, who passed away during the magisterial inquiry, deposits worth Rs.26 billion belonging to the GKCC.
The indictment were served on GKCCC Chief Executive Officer Khavan Perera and Directors Saradha Sumanasekara, Suramya Karunanayake, Niranjan Fernando, Lalith Kotelawala, Sicille Kotelawala, Punyashantha Ranatunga and an Inland Revenue Department official W.R. Dharmasiri on 91 charges
By: adobo on July 28, 2011
at 11:51 am
Padmini got away?? Bandula Ranaweera who used funds got away?
By: adobo on July 28, 2011
at 11:54 am
People, i’m confused, they were charged but got out with paying the bail, now what.
When wil the next hearing be?
When will these mother fishes get put into jail permanently? What is the High Court waiting for Christmas.
By: Malindu on August 1, 2011
at 9:10 am
GK Depositors to File Action against Presidents of Two GK Associations
A Group of Depositors are going to file action in District Courts against Anusha Emmert and Dushani Hapugoda and the two associations for deception and misleading court to say 90% of depositors are in agreement to the payment plan proposed.
They are also claiming Rs. 01 billion in damages from the two ladies for pain of mind , signature forgery and financial loss due to this misguided payment plan.
By: small fry on August 1, 2011
at 12:24 pm
Very good move as according to the preesent re-payment scheme these two ladies are going to benefit full time.
By: Depressed Depositor on August 4, 2011
at 3:34 pm
Does anybody know who are the lawyers representing the depositors right now?
By: Madhav on August 2, 2011
at 6:16 am
When we we will get 15% out of 30% this year or next year? is it including 6% interest as they say ?
By: Cyril on August 2, 2011
at 7:29 am
you will get it when you go to heaven , not before .
By: God on August 2, 2011
at 2:57 pm
If there is JUSTICE in this country no need to wait till we go to heaven…………………………. !!
By: Depressed Depositor on August 4, 2011
at 5:19 pm
Does anybody on this forum know who are the lawyers talking on behalf of the depositors?
By: Madhav on August 3, 2011
at 12:58 pm
From what I reliably heard is that the Lawyers who are supposed to represent the Depositors Association/s are paid by Lalith Kotelawala…………………… so where do we go?
By: Depressed Depositor on August 4, 2011
at 5:22 pm
Another indictment on Lalith Kotelawala
THURSDAY, 04 AUGUST 2011 01:19
By Susitha R. Fernando
The Attorney General issued another indictment yesterday on Lalith Kotelawala and other directors of three subsidiary companies of the Ceylinco group (including Ceylinco Shriram) over defrauding of depositors by collecting deposits by promising attractive interest rates and thereby committing a criminal breach of trust.
Twelve accused, including Ceylinco chairman Lalith Kotelawala and Ceylinco Insurance PLC (General) chief executive director Ajith Rohan Gunawardena, were charged on 136 counts before the Kandy High Court.
The accused comprised directors Hiran Kosala de Silva, Ivor Menik Rajiv Wijesinghe, K. A. Sunil Jayatissa, Ruwan Sirisena,
Nihal Mahinda Peiries, Ajith Rohan Gunawardena, Sanka Ravi Wijesinghe, Lalith Kotelawala, Padmini Kamaladevi Karunanayake, Daniel Jegasothy, Sicille Kotelawala and M. D. M. Aravinda Bandara Dissanayake.
The charges against the accused include being directors of the companies Ceylinco Shriram Capital Management Services Private Limited, CLC Assets Management Private Limited and Ceylinco Capital Investments Private Limited, collecting deposits for their offices and branches in and around Kandy, misleading the depositors by promising attractive interest rates and to return the deposit whenever it was required. According to the indictment, the accused were charged with criminal breach of trust by collecting deposits amounting to Rs 16,779,026 from a group of depositors and committing offences under section 113 of the Penal Code and section 102 read with section 403 of the Penal Code. The said offences were said to have been committed between January 5, 2005 and April 13, 2009.
In addition to the Kandy cases, two other inquiries relating to the said companies are pending before the Colombo and Matara Magistrates over similar offences.
Deputy Solicitor General Navaratne Bandara, with State Counsel Shamindra Wickrema, represented the prosecution in all the magisterial inquiries.
Forty eight witnesses, including the governor of Central Bank (or a representative), the officer-in-charge of the Commercial Crimes Unit of the Criminal Investigation Department and Hetti Pathirenhelage Ajith Gunawardena (the former sales manager of Ceylinco Shriram) are to give evidence, while 12 productions including an audit inquiry report prepared by auditors Ernst and Young with regard to three companies.
By: adobo on August 4, 2011
at 11:54 am
What’s the point in charging these people, when we all know at the next court hearing they will be bailed out and allowed to walk scot free. One more thing we all know Sicille will not be present at the next hearing. The same thing will repeat over and over again while the depositors suffer.
By: Madhav on August 4, 2011
at 1:57 pm
It is the duty of a democratically elected government to move swiftly and bring about redress to the depositors who have been suffering for over two years.
A Depressed Depositor
By: Depressed Depositor on August 4, 2011
at 3:20 pm
What about the people (politicians, cricketers, etc) who withdrew their money (big money) just before the collapse of GK? Not a cent was deducted from them. So why should they deduct from us now, after having suffered for over 2 years? Where is justice?
By: Depressed Depositor on August 4, 2011
at 3:37 pm
Lalith Kotalawela has said he will start talking if he is pushed to far by the government that why MR and his family are soft peddling this issue .
LK has given nearly 03 billion of GK money tp MR for building Rajapaksa stadium in Maharagama , Habanthota and his last electyion campaign . So if LK start talking MR is in trouble and sicille have been given Shiranthi she will happily live in Singapore unlike KP who is back in SL in luxury at visumpaya.
By: Anusha on August 4, 2011
at 4:16 pm
GUESS WHO WAS SHOPPING IN LONDON – THE SUNDAY TIMES AUG 07 ,11
SOME SRI LANKANS IN A LONDON SUBURB WERE SURPRISED WHEN THEY SAW A MOST WANTED PESONALITY IN A SUPERMARKET .
THAT WAS SICILLE KOTALAWELA ,WIFE OF CEYLINCO GROUP BIG BOSS LALITH KOTALAWELA !!!!
IT CAME TO LIGHT THAT SHE HAD TRAVELLED FROM SINGAPORE TO LONDON !!!
Will any GK depositor in London immediately make A citizens arrest as provided by british Law . I AM PLEASANTLY SURPRISED THAT ANUSHA EMMERT AND DUSHANTHI HAPUGODA , HER TWO HOUSEMAIDS WERE NOT THERE TO ASSIST HER !!!!!
By: AYANTHI on August 7, 2011
at 10:33 am
What a shame for the interpol !!
By: Madhav on August 7, 2011
at 11:12 am
I don’t think Interpol was ever informed about Sicille Kotelawala. From what I understand a person has to be convicted before Interpol is informed. In this case Sicille Kotelawala is still only a suspect and have to be proved guilty. Hence, I don’t know who is trying to fool whom?
By: Depressed Depositor on August 11, 2011
at 1:55 pm
Dear All, Instead of just thinking of putting them in prison I suggest first get your deposit’s back/returned then go for them. At the rate thing’s are going none of the depositors GK / F&G ect ect will get refunds, yes you will see them in prison at what cost ? All The Depositors.
Thanks
By: Suraj on August 7, 2011
at 5:26 pm
I like that Lalth is making treats directed at Mahinda by saying he will start talking if he is pushed too far by the government. I don’t think Mahinda will take those treats from a low life such as Lalith, his Excelance deserves better, i hope Mahinda shows him whose boss and sends Lalith where the sun does not shine.
Also on a very personal matter, i have approximately 10 big ones in GK, and it is a huge deal to me but i have had it. I don’t mind losing every cent of it as long as Lalith, faithful wife, love child, boytoys and all the other criminals involded get put in jail permanently.
Mahinda Rajapakse Jayawewa.
By: Malindu on August 11, 2011
at 9:33 am
It is the duty of a democratically elected government to move swiftly and bring about redress to the depositors who have been suffering for over two years. So what Jayawewa
By: Depressed Depositor on August 11, 2011
at 1:52 pm
THERE ARE 11 PROPERTIES IN COLOMBO BOUGHT FROM GOLDENKEY MONEY WORTH MORE THAN 4.4 BILLION RUPEES INCLUDING GOLD HOARDED IN HSBC VAULTS OF LALITH , SANKA AND SICILLE KOTALAWELA .
THE Id NOS OF LALITH AND SICILLE KOTALAWALA ARE AS FOLLOWS :
LALITH : 383030978 V
SICILLE : 425211331 V
ANY BODY HAVING A GOOD CONTACT IN HSBC WIILL BE ABLE TO LOCATE ALL FOREIGN CURRENCY A/C ‘ S AND GOLD HOARDED THERE IN VAULTS . .AWAIT MORE DETAILS NEXT THURSDAY !!!
By: THE THIRD EYE on August 11, 2011
at 1:56 pm
What about the money sent out of the country which is safely invested in the ASSOCIATED GLOBAL INVESTMENTS in Labunan, Mauritius. Why don’t the Authorities, the Judiciary and the Depositors bring this to light. there is enough money stacked there to pay all the depositors.
By: Depressed Depositor on August 11, 2011
at 5:12 pm
What about Raj Dassanayake (aka grameen hora) who managed to steal more than a billion rupees from Ceylinco grameen? He is now in Australia pretending to be playing for some Sri Lankan musical bands while secretly managing the Ceylinco operations there headed by Sicille.
By: Bernard on August 14, 2011
at 2:49 pm
AG looks at seeking Sicille’s extradition
August 13, 2011, 6:55 pm
by Suresh Perera
The Attorney General’s Department is contemplating moving for the extradition of Mrs. Sicille Kotelawala, — a key suspect in the 26 billion rupee Golden Key (GK) scam — who has now been traced by the International Police (INTERPOL) in the United Kingdom.
“With confirmation that she is living in the UK, what we need to do initially is to file an application with the British crown prosecution seeking her extradition”, a high-ranking AG’s Department official said yesterday.
It is only after the application is made that the British court process could begin, he noted. “Of course, with a lot of logistics involved, it could be a time-consuming endeavor”.
A judicial arrest warrant has been issued against Mrs. Sicille Kotelawala, wife of Ceylinco Consolidated boss Lalith Kotelawala — a one-time powerful business magnate — in connection with the GK scandal, which saw thousands of depositors deprived of their holdings following the company’s collapse in December 2008.
The suspect who left Sri Lanka shortly after the Ceylinco subsidiary crashed, was earlier believed to been in Singapore, but fresh evidence has now surfaced of her presence in the UK, officials said.
The move to extradite Mrs. Kotelawala will create legal history in Sri Lanka as it will be the first time that a suspect is being sought for a commercial crime, they explained.
“There are no templates where we can fill in the blanks. This means that we have to make an extradition plea with all supporting documentation including English translations of the indictments”, the AG’s Department official elaborated.
He said that extradition on charges of terrorism, money laundering or child abuse is considered relatively easy to handle within the British judicial system, but for a commercial matter of this nature, it could be long-drawn and cumbersome.
“We need to initiate the process by first filing the application with the crown prosecution and then move forward to get the suspect extradited to face the charges against her in Sri Lanka”, he noted.
He said that INTERPOL had tracked Mrs. Kotelawala in the UK, where she is believed to be living with a close relative not far from the city of London. It has also been indicated that her visa is due to expire shortly and there is an open question whether it will be extended by the British.
In terms of its mandate, INTERPOL will, on a request by the law enforcement authority of another country, use its resources to trace a ‘wanted’ person, but after the objective is achieved, the legal process of extradition should be worked out between the state players, the official said.
“As Sri Lanka does not have an extradition treaty with Great Britain, we will also have to look at the Commonwealth Treaty under which there are specific provisions for extradition on certain offences”, he noted.
“All this translates into a heavy workload for the AG’s Department to get the extradition process moving in a clear direction”, he said. “We will need at least five state counsel on the job”.
The AG’s Department recently indicted Lalith Kotelawala and eight others under 91 criminal charges for alleged conspiracy against the state by operating a finance company between 1999 and 2008 against the provisions of the Finance Companies Act, and thereby, inter alia, committing criminal breach of trust and misappropriation of funds in connection with the GK scam.
GK directors, Khavan Michael Perera (CEO/Deputy Chairman), Sicille Kotelawala, Padmini Karunanayake, Saradha Sumanasekera, Neranjan Fernando, Suramya Karunanayake, Padma Nandani Kumar and Shantha Ranasinghe, who served as the company’s Financial Controller have been indicted in the Colombo District Court.
Two other former GK directors, Daniel Jegasothy and Bandula Ranaweera, have been listed as witnesses on behalf of the prosecution.
By: adobo on August 15, 2011
at 1:35 pm
List of people who has taken their monies in Full and Partly .
In Full :
Sudharshini Fernando pulle – 800 million
Aravinda De Silva – 400 million
This triggered the the collapse of GK . Subsequent payments :
Anusha Emmert – 27 lakhs
Dushani Hapugoda – 17 lakhs
Marco Perera – 08 lakhs
Kapila JasenthuLiyana – 10 lakhs
Upali – 10 lakhs
Somaweera Chadrasiri – 10 million
Now the Goldenkey has come to a dead end and above lucky recepients are the people who has got more than two lakhs , like us .
SO FOLKS ITS GOODBYE TO YOUR MONEY AND CLOSE OF GK SAGA !!!!
By: THE THIRD EYE on August 18, 2011
at 5:04 pm
Scisclle K’s sister paid Anusha to do Thovil in front of Watawala house!
Who paid Anusha’s Lawyer fees to object against indictment?
Now Anusha says that LK is innocent!!
LADY LK will jump from UK soon…. Please some one do some thing to help us!!!
By: Londonshop on August 21, 2011
at 7:24 pm
Shiranthi Rajapakse and Sicille Kotalawala are thick pals and go to the same church when sicille was in SL .
So she being arrested by Interpol is remote. Thoose depositors who went to F &G offices would have seen Namal Rajapakse and Shiranthi eating in nelum kola at a ceremony organised by that crook Mervyn Jayasighe .
Plain Truth is that Rajapaksa & Co is scared Lalith & Sicille will spill the beans as how MR & Co black mailed the kotalawala’s via the donkey at Central Bank Nivard Cabraal and squandered the depositor money @GK & F&G on Grandoise schemes of Rajapaksas and their election propaganda !!!
By: Ranil W on August 22, 2011
at 2:04 pm
Over one thousand complaints from depositors: CID
WEDNESDAY, 24 AUGUST 2011 00:54
By Susitha R. Fernando and T. Farook Thajudeen
The Criminal Investigation Department (CID) yesterday informed the Colombo Chief Magistrate that they have received over one thousand five hundred complaints from depositors who were allegedly degraded by the F&G Property Developers Ltd.
Filing a further report to court OIC of Commercial Crime Branch of the CID, IP I. D. S. Weerasinghe stated to court that arrest warrant is to be issued on suspect Sicille Kotelawala through INTERPOL as she had sough self asylum abroad.
IP Weerasinghe stated that the investigation had revealed that the wife of Ceylinco head is now living in United Kingdom and with the support of the INTERPOL she would be brought down to the country.
By: Gdew on August 24, 2011
at 12:27 pm
BLOODY BUNKUM !!!! THESE DONKEYS AT THE CID ARE ALSO IN THE POCKET OF KOTALAWALA , INTERPOL BRINGING SICILLE MY FOOT !!!
SHIRANTHI & MR WONT ALLOW IT !!!
By: KONDE BADAPU CHEENA on August 24, 2011
at 3:51 pm
I get the feeling that Sicille in London is just a story made up by some LK supporters to divert the investigations and look at the legal jargon the AG has said about arresting Sicille in UK. It all shows that all these systems are designed to support the culprits and not the victims.
By: Madhav on August 30, 2011
at 7:18 am
Well said, isn’t it obvious that everything in this country is supportive of the culprits and not the victimized? Where is justice?
By: Depressed Depositor on August 31, 2011
at 1:28 pm
Donkeys who has deposited money are drug addicts (aravinda) , racketeers like choksy , asela sennanyake ,Roshan F’do (ceylinco Commis Kakka) anusha , dushanthi ( brothel Madams of Italy, belgium ) and black money sharks and greedy crooks and bitches like ayanthi , malcom , anura (loan shark & finance racketeer) and riff raff who wanted dodge paying income tax on their interest . .
Serve them bloody right bastards and crooked sluts for loosing their money . His Excellency the presisdent is right when he said he cant use tax payers money to bail out these SOB’s and SLUTS who spread their legs at a drop of a hat !!
May these wreteched lot go to hell with thier Lord and Master Lalith Kotelawala !!!
AMEN !!! PRAISE THE LORD ! GIVE HAND TO LORD !!!
BROTHER LALITH ( PREACHER AT ST.PETERS COLLEGE )
Most of these greedy jokers are God fearing Christians like Lalith K .
By: Brother Lalith on September 17, 2011
at 9:50 am
Who is this sick guy? Please do not use or defame any ones religion on a forum like this. Can you judge others? Do you have proof ? I thinks this is a Ceylinco loyalist here!!
By: Gdew on September 18, 2011
at 12:50 pm
Whoever you are, please do not drag religion into this. I am confident that Brother Lalith will never accept what you have said. If you had money to spare, you too would have invested in order to gain some income. A democratically elected government should move swiftly and bring about redress to the thousands of suffering depositors instead of doing stupid and unwanted things like making roads (for their benefit) and globe trotting and living a luxurious life. Sad to say this but, you are not worthy to be called a human being !!!
By: Depressed Depositor on September 19, 2011
at 9:58 am
I am with U
Never expect this type of comment from Brother Lalith
AMEN !!! PRAISE THE LORD ! GIVE HAND TO LORD !!!
BROTHER LALITH ( PREACHER AT ST.PETERS COLLEG)
What shame
By: Cyril on September 21, 2011
at 5:16 pm
Serious question, why would someone like this old fart do something like this after all the respect and good reputation he spent year building?
By: Malindu on September 23, 2011
at 9:33 am
New GK repayment plan blocked by depositor’s move
The Golden Key Credit Card Company Ltd (GK)’s repayment plan has been blocked by a petition filed by an aggrieved depositor requesting the Chief Justice to consider the hearing of the case by a 5-member Supreme Court bench, at a time where the modus operandi for the repayment to the depositors is beginning to take shape, lawyers of depositors said.
Earlier the Court gave its nod for the implementation of the plan to make payments to GK depositors who were deprived of their deposits. The 3-member bench headed by Justice Shirani Thilakawardane on June 29 while approving the payment plan which was crafted after several rounds of discussions between the Directors of the company and the majority of depositors, ordered that the progress of the plan be presented on September 29. Under this plan it was proposed to complete the payment of capital of the depositors within four years. It was mentioned that 30 % should be paid within the first year.
When the case was taken up for hearing on Thursday, depositors were informed by Court that a GK depositor M. J. Perera has filed a petition urging the Chief Justice to consider appointing a 5-judge to hear his petition objecting to the repayment plan whch he says is detrimental to the depositors. The Court then said the petitioner should support his claim for a higher bench at a hearing by a separate Supreme Court bench on October 13.
President of GK Depositors Society Anusha Emmert told the Business Times that the depositors are struggling to survive since the collapse of the company two years and nine months ago, as most of them have no fixed income after they lost their interest payments for their deposits.
Twenty-three depositors have died including three who committed suicide, she revealed. Depositors were eagerly waiting for the implementation of the payment plan approved by the Supreme Court and this new development of the GK case will delay the repayment process pushing depositors into further difficulty, Ms Emmert said. She said that she has convened a meeting of depositors next Thursday opposite the GK head office in Colombo to create awareness on the present situation.
By: Gdew on October 2, 2011
at 12:53 pm
Now they are cheating the Sick!!
The Rot Never Stops With Ceylinco
By Nirmala Kannangara
Granton – Ceylinco Membership Card and Clearly states the 10% discount
Ceylinco, a name now synonymous with infamy as a result of fraud in the region of billions of rupees, has now come under severe criticism for cheating the sick.
This time it is the Ceylinco Diabetes Center (CDC) that has come under the spotlight. Although its motto is ‘we prevent we care’ Ceylinco has failed to both prevent the sick from being cheated and failed to take care of those who had kept faith in them.
The Granton Ceylinco Membership Card which promises many facilities for diabetes patients has failed to provide these services, claimed a membership card holder.
According to Mavourne Schumacher, the Granton Ceylinco Membership Card was sold to her by two representatives claiming to be medical students from the Colombo Medical Faculty in mid August, as a promotion package which promised many facilities.
“When these two young men called at my residence in mid August and explained to me the value of having such a card which included a 10 per cent discount for medicine at the in-house pharmacy of the CDC at Park Road, I immediately telephoned the hotline number given in the brochure to find out whether those details were indeed true. A woman who answered the phone confirmed that it was all true, including the information about the 10 per cent discount and based on this conversation, I purchased two membership cards worth of Rs. 2, 000,” Schumacher told The Sunday Leader.
According to her, the sole reason to obtain the two membership cards was not to avail of the facilities mentioned in the brochure, but to purchase diabetes medicine for her husband at a lower price. “We are a retired couple with no source of additional income and my husband who has been a diabetic patient for the past 30 years has to take insulin. We spend around Rs. 9,000 per month for his medicine and since I could save around Rs. 900 as a result of this offer I purchased two cards,” she said.
Schumacher later realised that she had been defrauded by Ceylinco when she was informed by the CDC pharmacy that a discount of only 5 per cent could be given and not 10 per cent as stated in the brochure.
“According to the CDC it was a printing error and they could not be held responsible since this is a joint promotion by CDC and Granton Marketing. How could the CDC claim that it was a printing error when they confirmed to me that the facilities given in the brochure would be provided when I first called them to find out the accuracy of the promotional campaign, before I purchased the two membership cards?” she inquired.
Schumacher had then spoken to Assistant Manager Customer Services Ceylinco Healthcare Services, H. D. Prakash who had made the same claim about it being a printing error.
“Had I known that they were giving only a 5 per cent discount I would not have purchased these two cards for Rs. 2,000 as my regular pharmacy at Mt. Lavinia too gives me a 5% discount? Why would I go to the CDC at Park Road spending Rs.1,500 for the taxi in order to get this 5% discount?” she asked.
On request Prakash had promised to speak to Granton and refund her money, but this did not happen. “I was promised a refund of my money on September 5, but it is almost one month since then and nothing has happened. I have spoken to Prakash twice on the phone and his reply was that the Granton would refund the money. I then received a call from Granton on September 15 and was promised the money the following day but ‘the following day’ is yet to dawn,” Schumacher added.
When contacted, Prakash told The Sunday Leader that it was a printing error by Granton and not a mistake by the CDC.
When asked about the hotline telephone confirmation by CDC of the promises under the membership card, he responded saying that it is possible that Schumacher may have spoken to Granton and not the CDC.
“Schumacher may have called the Granton Hotline since this is a promotion with Granton. I cannot ask my officers to refund the money as it was Granton that has obtained the money from this party. We had a meeting with the Granton CEO and we were told that the money would be refunded,” he said.
When asked as to who the CEO of Granton is, so that The Sunday Leader could contact him as well, Prakash did not know the name of the CEO even though he claimed that he had spoken to him on this matter.
Meanwhile Shane, the Granton Coordinator, when contacted said that it was not a printing error but a change of decision by the CDC.
“I will certainly discuss this matter with our MD. It is the CDC that is at fault and not us. I can show your paper the agreement between the two companies. It clearly states that the CDC had agreed to a 10% discount on all medicine. By the time they changed it to 5% it was too late as we had already printed the brochures and launched the promotional campaign. As soon as we were informed of this change, we immediately printed another brochure,” Shane told The Sunday Leader.
He added that there is no possibility for the customer to call Granton directly to verify the details of the promotional card, as claimed by Prakash, since the brochure carries only the CDC hotline number.
By: Gdew on October 2, 2011
at 12:56 pm
Can anyone trust the Celinco name anymore, big or small everyone gets f’ed. I personally will never trust them, invest in any of their shares or even buy any of their products. They are cheats, robbers, criminals, not only lalith but every single person who works for them. Criminals who have the power (due to our money they use) to walk on the streets like the innocent people they have stolen from.
Exe. Mahinda Rajapakse please put these criminals in jail and sell their luxury houses, cars and other valuable assets and please start paying us. We will always vote for you as you are our great leader, please continue to lead.
By: Malindu on October 5, 2011
at 8:19 am
Dear Malindu
It is because of this so-called great leader that you are talking about that we, depositors of Golden Key are suffering today.
A democratically elected government should have moved swiftly to bring about redress to the thousands of suffering depositors.
So what has your great leader being doing for the past 2 years and 10 months without attending to this matter????
Lalith Kotelawala is out on bail and enjoying life, after paying millons of rupees.
By: Depressed Depositor on October 5, 2011
at 2:32 pm
Yes You correct, That so called great leader took 5 Billion from kothlawala to build a memorial hall (under his name) in Gampaha district as a bribe to stop paying us. Do you know that Malindu (fool)? Vote again and again to him. Your type of foolish people everywhere we find now. You all are blind.
By: Subash on October 6, 2011
at 6:02 pm
I have come to realise that the government wanted the properties of Ceylinco so they created the downfall of Golden Key and made Lalith Kotelawala the crook. It is a well known fact that Gotabaya was after him and got him using GK and we depositors are suffering because of this cursed family. They could have easily moved in and helped us out. They care less if we are suffering or not as long as their bank accounts are full. I sincerely belive that Lalith Kotelawala is innocent.
By: Ayana on October 8, 2011
at 8:06 pm
I have come to realise that the government wanted the properties of Ceylinco so they created the downfall of Golden Key and made Lalith Kotelawala the crook. It is a well known fact that Gotabaya was after him and got him using GK and we depositors are suffering because of this cursed family. They could have easily moved in and helped us out. They care less if we are suffering or not as long as their bank accounts are full. I sincerely belive that Lalith Kotelawala is innocent.
By: Gratien on October 8, 2011
at 8:07 pm
Hey a crook is a crook! See your self posting the same thing under different names!! Dont blame the Rajapakses for every thing!!
By: goodfellow on October 9, 2011
at 1:32 am
In reply to Ayana & Gratien, I wish to say that the innocence of Lalith Kotelawala should be proved by a Court of Law. Meanwhile, I wish to reiterate my sentiments that a ‘ so-called’ democratically elected government should hve moved swiftly to bring about redress to the thousands of suffering depositors. Instead they sit back and say – “you did not give us the money so why ask us for the money.” Are these the leaders Mother Lanka has today???
By: Depressed Depositor on October 10, 2011
at 9:19 am
Chief Justice wants early relief granted to suffering GK depositors
Calls for official report on status quo of repayment plan
October 15, 2011, 6:42 pm
by Suresh Perera
In what appears to be a silver lining to struggling Golden Key (GK) depositors, Chief Justice Shirani Bandaranayake last week called for an official report outlining the status quo of the protracted repayment process, saying relief should be granted as early as possible to thousands of investors who continue to live in agony, with many already dead.
She directed Prof. Lakshman R. Watawala, the head of the Supreme Court-appointed Committee of Chartered Accountants to submit the progress report on October 27, the next day of hearing, as the GK Fundamental Rights (FR) case had dragged on for too long amidst the pain and suffering of poor depositors.
Taking over the hearing of this FR plea, which was earlier before a three-member bench headed by Justice Shiranee Thilakawardena, the CJ said that repayments due to GK depositors should be made before end December 2011 as they cannot be allowed to suffer any longer. “It will be much better if their monies can be paid before Christmas”.
This FR case was filed by a group of depositors following the collapse of GK, a Ceylinco subsidiary, in December 2008. Depositors who lost their investments in this 26 billion rupee scam, described as the “biggest white collar crime in Sri Lanka” have received only 200,000 rupees each during the past two and a half years.
Amidst mounting optimism amongst depositors following the CJ’s intervention, legal sources expressed the view that with effective court sanction, more GK assets — the sale of which had been held up for a considerable period of time — could be disposed of in the short term to raise funds to honor financial commitments towards depositors.
As a case in point the sources cited the personal assets and properties of GK directors and also of the company and its subsidiaries, which had been identified both in Sri Lanka and overseas.
Mrs. Sicille Kotelawala also owns substantial personal assets and properties, which are liable under the law as she also served as a GK director, they pointed out. “Even after almost three years, they can now be sold with court approval to raise the much needed liquid cash to settle depositors”.
At last week’s hearing before the three-member bench headed by the Chief Justice, V. K. Choksy, counsel for the aggrieved depositors, complained to court that the processing of depositor’ information under the repayment plan approved by the SC cannot be done as the Attorney General’s Department is withholding the relevant files.
The AG’s Department, Central Bank and the concerned parties should work together with the prime objective of settling depositors as these are innocent people who had invested their money and now made to suffer, the CJ noted. “Granting solace to them is what matters most”.
In terms of the SC order earlier, three former GK directors, Khavan Michael Perera, Saradha Sumanasekera and Niranjan Fernando undertook the processing of depositor’ information for the initial repayment at the company’s former head office at Duplication Road. This was done in the presence of a Committee member and a CID officer.
But, after they had cleared about 200 files, the AG’s Department had denied them access to these vital documents, without which the process cannot go ahead, says Ms. Dushanthi Hapugoda, President, GKCC All Depositors’ Association.
The whole process has been stalled as a result, she complained. “Under these circumstances, how can the directors meet the deadline to make the first repayment to depositors before end December 2011?”
The directive preventing the accessing depositor information had been made after criminal indictments were filed in the Colombo High Court against Lalith Kotelawala and the other directors in connection with the GK scandal, officials explained.
The directors who were initially remanded by the Mt. Lavinia Chief Magistrate were later enlarged on bail by the Supreme Court on the understanding they would help raise funds to repay depositors.
“But, after their release it didn’t happen that way as they didn’t give any of their assets on their own volition”, Ms. Hapugoda noted. “It was a virtual battle to get even the little we have now”.
She said that Mrs. Sicille Kotelawala was traced to the United Kingdom but nothing tangible was done to get her extradited despite an INTERPOL ‘Red Alert’. “It’s obvious she has access to substantial funds to lead a comfortable life in Europe”.
“The bottom line is that all GK directors are still living in the lap of luxury”.
The Chief Justice said the Central Bank, as a party to the case, should continue to play a role in ongoing moves to settle depositors. “I look forward to wind up this case by December 31, 2011″.
Meanwhile, the Golden Key Depositors’ Society led by its president, Ms. Anusha Emmert staged a protest in Colombo last week to focus attention on the GK ordeal which has dragged on since December 2008.
Chief Justice wants early relief granted to suffering GK depositors
Calls for official report on status quo of repayment plan
October 15, 2011, 6:42 pm
by Suresh Perera
In what appears to be a silver lining to struggling Golden Key (GK) depositors, Chief Justice Shirani Bandaranayake last week called for an official report outlining the status quo of the protracted repayment process, saying relief should be granted as early as possible to thousands of investors who continue to live in agony, with many already dead.
She directed Prof. Lakshman R. Watawala, the head of the Supreme Court-appointed Committee of Chartered Accountants to submit the progress report on October 27, the next day of hearing, as the GK Fundamental Rights (FR) case had dragged on for too long amidst the pain and suffering of poor depositors.
Taking over the hearing of this FR plea, which was earlier before a three-member bench headed by Justice Shiranee Thilakawardena, the CJ said that repayments due to GK depositors should be made before end December 2011 as they cannot be allowed to suffer any longer. “It will be much better if their monies can be paid before Christmas”.
This FR case was filed by a group of depositors following the collapse of GK, a Ceylinco subsidiary, in December 2008. Depositors who lost their investments in this 26 billion rupee scam, described as the “biggest white collar crime in Sri Lanka” have received only 200,000 rupees each during the past two and a half years.
Amidst mounting optimism amongst depositors following the CJ’s intervention, legal sources expressed the view that with effective court sanction, more GK assets — the sale of which had been held up for a considerable period of time — could be disposed of in the short term to raise funds to honor financial commitments towards depositors.
As a case in point the sources cited the personal assets and properties of GK directors and also of the company and its subsidiaries, which had been identified both in Sri Lanka and overseas.
Mrs. Sicille Kotelawala also owns substantial personal assets and properties, which are liable under the law as she also served as a GK director, they pointed out. “Even after almost three years, they can now be sold with court approval to raise the much needed liquid cash to settle depositors”.
At last week’s hearing before the three-member bench headed by the Chief Justice, V. K. Choksy, counsel for the aggrieved depositors, complained to court that the processing of depositor’ information under the repayment plan approved by the SC cannot be done as the Attorney General’s Department is withholding the relevant files.
The AG’s Department, Central Bank and the concerned parties should work together with the prime objective of settling depositors as these are innocent people who had invested their money and now made to suffer, the CJ noted. “Granting solace to them is what matters most”.
In terms of the SC order earlier, three former GK directors, Khavan Michael Perera, Saradha Sumanasekera and Niranjan Fernando undertook the processing of depositor’ information for the initial repayment at the company’s former head office at Duplication Road. This was done in the presence of a Committee member and a CID officer.
But, after they had cleared about 200 files, the AG’s Department had denied them access to these vital documents, without which the process cannot go ahead, says Ms. Dushanthi Hapugoda, President, GKCC All Depositors’ Association.
The whole process has been stalled as a result, she complained. “Under these circumstances, how can the directors meet the deadline to make the first repayment to depositors before end December 2011?”
The directive preventing the accessing depositor information had been made after criminal indictments were filed in the Colombo High Court against Lalith Kotelawala and the other directors in connection with the GK scandal, officials explained.
The directors who were initially remanded by the Mt. Lavinia Chief Magistrate were later enlarged on bail by the Supreme Court on the understanding they would help raise funds to repay depositors.
“But, after their release it didn’t happen that way as they didn’t give any of their assets on their own volition”, Ms. Hapugoda noted. “It was a virtual battle to get even the little we have now”.
She said that Mrs. Sicille Kotelawala was traced to the United Kingdom but nothing tangible was done to get her extradited despite an INTERPOL ‘Red Alert’. “It’s obvious she has access to substantial funds to lead a comfortable life in Europe”.
“The bottom line is that all GK directors are still living in the lap of luxury”.
The Chief Justice said the Central Bank, as a party to the case, should continue to play a role in ongoing moves to settle depositors. “I look forward to wind up this case by December 31, 2011″.
Meanwhile, the Golden Key Depositors’ Society led by its president, Ms. Anusha Emmert staged a protest in Colombo last week to focus attention on the GK ordeal which has dragged on since December 2008.
By: Gdew on October 16, 2011
at 5:33 pm
Thank God, we have a CJ who is honest! Thank You Madam.
By: Gdew on October 16, 2011
at 5:36 pm
Sri Lanka state to take over stalled high rise
Oct 25, 2011 (LBO) – The Sri Lankan government is to take over a high rise hotel and apartment tower whose construction was stalled after its parent firm got into financial trouble.
The takeover is to be effected under a new law that is being rushed through the judicial and parliamentary approvals process that provides for the state to take over what are identified as ‘underperforming enterprises and underutilized assets’.
Minister of economic development Basil Rajapaksa said the take over of the Celestial Residencies tower project designed to house a five star hotel and apartments is with the aim of completing the project.
“The government will take over the project and pay compensation to those who bought apartments,” he told a news conference.
A committee of officials has been formed to revive construction work and complete the project as further delays might make it unusable with steel already used in the building beginning to rust, he said.
“We want to build the tower quickly as the steel is beginning to rust,” Rajapaksa said.
A fund is to be created to pay compensation to apartment owners.
The planned 45-storey Celestial Residencies tower is owned by Ceylinco Homes International Lotus Tower, part of the Ceylinco group which got into trouble after a run on a finance company subsidiary.
Construction work was later abandoned and the building has been put up for sale.
Rajapaksa said the takeover will be done under a new law to be introduced to parliament as an “urgent bill” on which the government Friday sought the opinion of the supreme court which he said was expected in 48 hours.
News reports on the proposed law said it can be used to seize privately owned businesses identified as ‘underperforming’ or ‘underutilized’ on in the ‘national interest
By: Gdew on October 25, 2011
at 7:11 pm
This way they will use this new law to acquire all Kothlawala’s properties. We will get nothing. This Rajapaksha government won’t allow to get our money back. Before December they will acquire all.
By: Samson on October 26, 2011
at 3:06 pm
“The Chief Justice said the Central Bank, as a party to the case, should continue to play a role in ongoing moves to settle depositors. “I look forward to wind up this case by December 31, 2011″.”
How to pay our if there is nothing to sell ?
By: Samson on October 26, 2011
at 3:10 pm
What happened to the case on 27th?
By: Gdew on October 29, 2011
at 5:47 pm
We will get nothing. Only thing is we have to organize our whole community against Maharaja & kill hill him like in Libya. That bastard won’t allow us to get get our money back. These mother fuckers wants to cheat our money for their expenses.
By: Samson on October 29, 2011
at 10:03 pm
CJ says repayment of Golden Key depositors can’t be dragged on
Accountants committee members paid monthly 2 lakhs each from GK funds
October 29, 2011, 12:00 pm
by Suresh Perera
With the Committee of Chartered Accountants coming under flak for its failure to submit an official report on Golden Key’s status quo to the Supreme Court, as directed, Chief Justice Shirani Bandaranayake said last week that the repayment process cannot be allowed to be dragged on for four years.
“I prefer a repayment to depositors before the court vacation begins on December 16″, she noted. “Justice should be meted out as early possible to these people who have suffered immensely”.
At the outset of the resumption of the Fundamental Rights (FR) plea filed by a group of Golden Key (GK) depositors, the Chief Justice called for the progress report she had directed the Committee to submit to court.
When Deputy Solicitor General (DSG) Viraj Dayaratne was asked whether the Committee had submitted the report through the Attorney General’s Department to be forwarded to court, he replied that it had not been received.
“Why was the report not forwarded?”, the CJ asked Prof. Lakshman R. Watawala, the head of the Committee, which was appointed in May 2009. “This was a Supreme Court directive”.
Questioning the duty and purpose of this Committee, she said that court called for this report to assess the status quo of this long-drawn case and expedite the granting of solace to struggling depositors.
Asked how much more time he required, Watawala replied, “Two weeks”. On repayments disbursed so far, he said, “1.5 billion rupees”.
The CJ ordered the Committee to submit a comprehensive report encompassing the total outstanding liabilities, assets available for disposal to raise liquid cash and their value, total repayments made to depositors by GK, the names of all depositors as per list submitted to the Central Bank in 2009 and all orders given by the previous SC bench, on or before November 11, 2011.
Addressing court, a depositor requested a retired Supreme Court Judge be appointed to head the Committee as “the performance of the present three-member committee is unsatisfactory”.
It also transpired that members of the Committee were paid a monthly salary of 200,000 each from the GK dedicated fund.
Watawala said the task to head the Committee was entrusted to him and it was not something he asked for. As for his salary, it was determined by the GK Secretariat of the Central Bank.
In response to a question by CJ Bandaranaike, he said the existing balance in the fund was 10 million rupees. How can an outstanding liability of 26 billion settled with just 10 million in liquid cash, the CJ queried. “I want a list of all existing GK assets”.
Ms. Dushanthi Hapugoda, President, GKCC All Depositors’ Association said: “We agreed to the four-year repayment plan under tremendous stress as there was no option – it was a ‘take it or leave it’ scenario”.
She was responding to the contention by Lalith Kotelawala’s counsel that depositors’ associations had agreed to this repayment formula. “We also vehemently opposed the proposed refund of deposits on the basis of a flat 6% interest rate payable from the date deposits were made. This meant that all excess interest payments already made will be discounted from the capital”.
Ms. Hapugoda told court that depositors should be paid at least 10% interest on their investments which was the prevailing rate at the time. An audit has confirmed that GK’s depositor liability was 26 billion rupees.
She said GK directors used depositor funds to pamper themselves with astonishing monthly salaries amounting to millions of rupees. “A certain director has, in six Australian bank accounts, more than 100 million Sri Lankan rupees”.
In his list of assets submitted to court to raise liquid cash to settle depositors, Kotelawala had offered six billion rupees from the sale of Seylan Bank shares inclusive of the subsidiary Ceylinco-Seylan Tower Building. If this is done, he can now give at least three billion rupees, let alone six billion rupees, from these shares, she noted.
Ms. Hapugoda asserted that certain SC orders which were “adverse to the other party” had disappeared from the documentation registry. Pages had been pulled out. Orders cannot be implemented without these documents.
“With necessary court sanction, the disposal of the personal assets of GK directors alone can raise more than 500 million rupees in liquid cash”, she said. “We need to see this happening soon as depositors continue to go through agony”.
CJ: I realize what you are saying. I will ensure that justice is ensured to poor depositors.
Counsel for an Australian company interested in purchasing the state-of-the-art ENT Hospital in Colombo said a bid for 750 million rupees was forwarded to the Committee, but there had been no response.
Asked by the CJ whether there were any other buyers for this GK property, Watawala responded: “No. This hospital has been valued by the directors at three billion rupees”.
President of the GK Depositors’ Society, Ms. Anusha Emmert told court it is imperative that cash amounting to more than half a billion rupees in the frozen bank accounts of GK directors be taken over to repay hapless depositors for whom it has been a long wait for justice.
The SC bench headed by CJ Shirani Bandaranayake comprised Nimal Gamini Amaratunga and K. Sripavan. The case will be taken up for hearing again on December 1.
By: Gdew on October 30, 2011
at 11:47 am
Court gives directive on Golden Key depositors
By Arthur Wamanan
The Supreme Court last week ordered a certain amount of relief to be paid to Golden Key depositors before the next court vacation in December. The committee headed by Lakshman R. Watawala was ordered to provide details of the total sum to be given to Golden Key depositors before December.
The order was given when the fundamental rights petition filed by the depositors was taken up last Thursday (27) before the Chief Justice Shiranee Bandaranaike, Justices Nimal Gamini Amaratunga and K Sripavan.
Chairperson, Golden Key Depositors Society, Anusha Emmert told The Nation the Watawala Committee had failed to produce the list of claims made by the depositors as requested by the Supreme Court. She said the Chief Justice had pointed out that the Watawala committee had not acted according to the directive of the Supreme Court given on October 13.
The Chief Justice asked him to submit to court the mode adopted to repay the depositors and the details of the total amount repaid to the depositors, the funds deposited by the depositors as well as the remaining amount that has to be paid to them by December 1.
Three cases on the Golden Key issue, one before the Supreme Court, one before Colombo High Court and another before Mount Lavinia Magistrate Court are pending. Only a small sum has been paid to the depositors so far who have gone before the law to recover their dues.
By: Gdew on October 30, 2011
at 11:56 am
GKCC: Hope for depositors from the SC?
Uploaded by adminasia, Breakingnews, Business, Editorial, feature, GKCC 9:43:00 AM
| BUSINESS EDITORIAL
(October 31, Colombo, Sri Lanka Guardian) We are happy the role we played to bring the plight of the 7,000 plus GKCC Depositors to the attention of the higher levels of government is hitting home. This week the Chief Justice herself Hon’ble Shirani Bandaranaike took a firm stand on the perplexing delay in reaching a settlement. When the matter came up before the Supreme Court (SC) recently, the Chief Justice – clearly noting the inordinate delay – observed there should be some urgency in the matter by the time Courts go into vacation by the first week of December.
The proposal made by lawyers to
Lalith Kotelawala Interest should be
calculated at 6% from the date of
deposits until December 2008 is unfair
by the depositors. This, in many cases,
will eventually result in the depositors
having to pay back GKCC.
While the government and its many spokesman tell the country and the world Sri Lanka has been made attractive to foreign FDIs and increasing local investment, Prof Sunil Watawala informs the SC GKCC’s assets – like the ENT Hospital and other valuable real estate – have not attracted the interest that would have been the evidence of a vibrant economy. This tells the actual story of the real state of the fiscal state of the country. Besides, it appears the SC has not been provided with a list, including value, of assets held by GKCC when it collapsed in December 2008. The speculation is the value of these in actual terms that day was far in excess of the current due of Rs.29 billion. How and the dates in which some of these valuable assets changed hands, how large sums in deposits were surreptitiously withdrawn by directors and key officials of the Ceylinco Group will expose many scandalous deals.
The proposal made by lawyers to Lalith Kotelawala Interest should be calculated at 6% from the date of deposits until December 2008 is unfair by the depositors. This, in many cases, will eventually result in the depositors having to pay back GKCC. The reality is many of them were meeting their monthly home expenses via the interest from their deposits. A fairer solution, we would assume, is to arrive at an aggregated rate of around 12% upto the date of settlement.
Prof Watawala’s Committee also appears to have taken far too long in coming out with their final Report. The reason may have been the somewhat high salary of Rs.200,000 plus expenses per month they have paid themselves and it, therefore, follows the longer it takes to file the report the more lucrative for them. If that much hyped Corporate Responsibility factor was to have played a part in this matter – that involved the life and death of hundreds of thousands – these accountants should have done their part sans any emoluments.
While it is astonishing is this high-profile matter has escaped a resolution despite the passage of nearly 3 years, the new development the SC at its highest level is calling for early and, hopefully, a more reasonable formulae of resolution – will be welcome by the 7,000 depositors condemned to near poverty from the heights of the comforts of the middle class lives that was their lot for them and their families when they entrused the good name of the Kotelawalas with their entire lives savings. Interestingly, while Rupert Madoff spends his days behind bars in New York Lalith Kotelawala spends his days in comfort and spendour in his sprawling villa – with the occasional live rock band providing him the pleasure of his favourite ditties in airconditioned comfort in Colombo. Surely, a different kind of Tale of Two cities.
By: Gdew on October 31, 2011
at 4:25 pm
Anusha Emmert 6220193080119120 Rs. 49,98,8400 28.5 PPNo HO5199502
Gunther
Emmert 6220193080119138 Rs. 49,98,8400 28.5 PPNo. 8730033107
Dushanthi
Hapugoda 6220193080041019 Rs. 99,85,520. 27.5 IDNO 726482764V
( Hapugoda Arachchige Kumari
Nayana Dushanthi )
ETHMADALAGE JUDE
MARCO PERERA Rs – 27,800,000.00 29
.
OTHER NAME SURNAME ADDRESS 1 ADDRESS 2 ADDRESS 3 TOWN RATE DEPOSIT AMOUNT
K N/F K CHOKSY NO 23/3, SIR EMEST DE SILVA MA WATHA FLOWER ROAD COLOMBO 07 25 2,500,000.00
F K CHOKSY NO:23/3 SIR ERNEST DE SILVA MAWATHA COLOMBO 07 25 2,500,000.00
P N CHOKSY NO:61/3 DHARMAPALA MAWATHA COLOMBO 07 24 4,550,000.00
V.K. CHOKSY NO:20 SIR MARCUS FERNANDO MW COLOMBO 07 29 63,508,836.03
Above are the list of key players in the Golden key Saga and their deposits . They have been the key players who have been promoting this so called “ Repayment Plan” robbing the small depositors to fill their pockets. Mr. Marco Perera though signatory to this plan has now dissociated from this plan.
Every month the Golden key Secretariat draws approximately Rs. 2 million including salaries of Watawala Committee from our monies .
Small time depositors who has deposited Rs. 3 million and below consisting of 6,924 depositors or 76% of depositors at collapsed Golden Key Company. Most are in the evening of their life desperately trying to make ends meet after the golden key debacle.
Depositors upto 2006 consists of more than 53% of the total depositors and again they are going to be ripped of by the so called “ Repayment Plan” presented by two Lady Presidents of the Two depositors associations and courts have been misled to believe 90% of the depositors have approved this bogus repayment plan as per the proceedings of S.C (F/R) No. 191 / 2009 dated 21v July 2011 ( Page 04 ) .
Mr. E. Jude Marco Perera has disputed this fact by his written submissions with facts to courts that most of the signatures are forgeries and submitted proof but courts has so far failed examine these matters .
Latest Proposals made to Courts say to pay 03 million and below depositors IN FULL and others Rs. 03 million from GK hidden wealth after these depositors declare to Inland Revenue Department their sources of income and income tax paid .
Their Balance money will be paid in treasury Bills redeemable after 10 years with a monthly Interest of 8% once they declare their Wealth to Inland Revenue Department and get a Income Tax Filed opened .
By: Legal Eagle on November 3, 2011
at 5:01 pm
We fully agree with Legal Eagle as almost all of above have deposited their money after 2008 .
As his excellency The President has rightly pointed he is not willing to use tax payers money on making payments to GK depositors but once through above scheme its declared Govt. will definitely step in to Help GK Depositors
By: Chiran D on November 4, 2011
at 8:38 am
Why everybody keep silent no need of money ??
By: Cyril on November 12, 2011
at 10:55 pm
We can see from the above postings that the so called 03 Depositors Associations have looked after the interests of the Black Money Sharks and not the poor small depositors . It appears they are paid by Lalith Kotalawala from one side and Khavan, Sarada combination from the other side to drag this case for years with the so called “ Repayment Plan “ which now has been put to the dustbin by the Hon. Chief Justice .
Now they are coming with a “ Rebate Story “ to legalize their Black Money and evade income tax. The proposal to deduct the interest paid from the capital should be strongly resisted by the majority of depositors who are below 03 million as they consists 76% of the total depositors and are a 2/3 majority in parliament terms .
ALL small depositors should petition court through written affidavit that they are opposed to deducting interest paid from their capital as if implemented may have to pay Lalith Kotalawala and his bunch of crooks from their capital . this is another way of legalizing this rebate to avoid paying income tax , which has been rejected by Commercial High Court in a case involving Milton Karunaratne ( biggest Depositor in GK ) vs Inland Revenue Deoartment .
Depositors below 03 million are poor elderly old ladies like me who have deposited their EPF monies , life long savings to make a living out of the capital invested . If part our monies are taken by these Depositor Association crooks as suggested we will be left destitute.
By: gerty perera on November 15, 2011
at 4:33 pm
Srilankamirror – ගෝල්ඩන් කී නඩුවේ රජයේ සාක්ෂිකරුවන් පස් දෙනෙකුට විදේශගතවීම තහනම් කරමින් කොළඹ මහාධිකරණ විනිසුරු දීපාලි විජේසුන්දර මහත්මිය අද (17) නියෝගයක් නිකුත් කළාය.
විමලනාදන් ලෝගනාදන්, මනෝජ් චමින්ද ජයලත්, ඩැනියල් ජෙගයෝදි හා රේණුකා අල්විස් ඇතුළු සැකකරුවන් පස්දෙනා රු. 10,000 ක බැඳුම්කර මත නිදහස් කිරීමට මහේත්රාක්වරිය නියෝග කළාය.
අද දින මෙම නඩුව විභාගයට ගත් අවස්ථාවේදී සෙලින්කෝ සමූහ ව්යාපාරයේ හිටපු සභාපති ලලිත් කොතලාවල ඇතුළු අධ්යක්ෂක මණ්ඩල සාමාජිකයින් අධිකරණය ඉදිරියේ පෙනී සිටි අතර, කොතලාවල මහතා ගේ බිරිඳ වන සිසිලියා කොතලාවල වෙනුවෙන් නීතිඥ සාලිය පීරිස් පෙනී සිටියේය.
පීරිස් මහතා අධිකරණය වෙත දන්වා සිටියේ සිසිලියා කොතලාවල මහත්මිය විදේශගතව සිටින බවත් අයහපත් සෞඛ්ය තත්වයේ පවතින බැවින් ඇය අධිකරණය හමුවේ පෙනී නොසිටින බවත්ය.
සිසිලියා කොතලාවල මහත්මිය දුටු තැන අත්අඩංගුවට ගන්නා මෙන් විවෘත වරෙන්තුවක් නිකුත් කරන මෙන් මීට කලින් අධිකරණය විසින් නියෝග කර තිබුණි.
ගනුදෙණු කරුවන් විසින් ගෝල්ඩන් කී ක්රෙඩිට් කාඕ සමාගමේ තැන්පත්කර තිබූ රුපියල් කෝටි 720 කට ආසන්න මුදලක් සාවද්ය ලෙස පරිහරණය කිරීම සම්බන්ධයෙන් අධි චෝදනා 91 ක් යටතේ සෙලින්කෝ සමූහ ව්යාපාරයේ හිටපු සභාපති ලලිත් කොතලාවල මහතා ඇතුළු එහි අධ්යක්ෂවරු 9 දෙනෙකු චෝදනා ලබා සිටියි.
මෙම නඩුවට අදාළව ලේඛන 62ක් තිබෙන අතර, සාක්ෂිකරුවන් 778ක් සිටියි.
2012 පෙබරවාරි 10 දින මෙම නඩුව නැවත කැඳවන මෙන් කොළඹ මහාධිකරණ විනිසුරුවරිය නියෝග කළාය.
By: Maha Kalu sinhalaya on November 17, 2011
at 3:35 pm
Do we have to wait till 2012 ? not in December 2011.
By: Cyril on November 17, 2011
at 10:07 pm
I dont think there are any assets sold to pay any thing in December….. sad, why did LK do this to us?
By: Gdew on November 20, 2011
at 8:26 pm
So the payment before X-Mas would not manifest after all……………
Committee of Chartered Accountants opt to withdraw from GK repayment process
November 26, 2011, 7:34 pm
by Suresh Perera
In a dramatic development, the Supreme Court appointed Committee of Chartered Accountants (CCA) has sought to pull out of the protracted Golden Key (GK) repayment process with immediate effect saying “it is not in a position to carry on the tasks entrusted to it following the withdrawal of the Central Bank, which acted as the facilitator”.
The CCA submitted its 48-paged official report on GK’s status quo to the Attorney General’s Department last week to be placed before the Supreme Court at the next hearing of the case on December 1.
The three-member CCA headed by Prof. Lakshman R. Watawala and comprising Nelson Nagasinghe and Mahendra Panditha had, at the end of their formal report, announced, “We are reluctantly compelled to withdraw our services with immediate effect and the Central Bank should take back all the files sent to the Commission and keep them under safe custody”.
The CCA, whose members were paid a monthly salary of 200,000 rupees each from GK’s dedicated fund, had earlier come under flak from Chief Justice Shirani Bandaranayake for its failure to submit the official report, as directed by the Supreme Court (SC).
“The CCA feels that its role is over and the former GK directors and depositors can now work out and implement a feasible repayment plan”, sources said. “Of course, the SC will have to sanction the exit of the committee”.
Responding to the move to withdraw, the GKCC All Depositors’ Association suggested as an alternative to the ‘costly CCA’, the appointment of a retired District Judge to head a new committee comprising an accountant, a nominee each from Ceylinco Group (preferably former chairman Lalith Kotelawala), Central Bank and six members representing the three GK unions.
In official documentation, the Association has suggested a limited three-month period for the proposed committee to examine all sectors pertaining to GK, its subsidiaries and all transactions within the Ceylinco Group and report on the status quo.
It said the CCA is answerable for the delay and adoption of a very slow process in their workings related to their recommendations and submissions to the Supreme Court.
The documentation has referred to Deputy Solicitor General Sarath Jayamanne’s contention at one time that “GK’s total deposit base is about 26 billion rupees of which 6 billion rupees had been transferred to other companies within Ceylinco Group, 14 billion rupees misused by the management, one billion rupees spent illegally and the balance 5 billion rupees not accounted for”.
“Getting to the bottom of this will translate into raising a major part of the required liquid cash to settle depositors”, says the documentation jointly signed by the Association’s President Dushanthi Hapugoda and Secretary Malcolm de Silva.
Attention had also been drawn to a report in a magazine published by Kotelawala, which in its July 2008 edition says that “he (Kotelawala) owns more than 450 companies and brings to the country four billion rupees in foreign currency annually”. The Association urged the CID and the AG’s Department to investigate this aspect as it points to the possible hidden wealth of Kotelawala.
Requesting that the seizure of private assets of GK directors and its subsidiaries be expedited, it has also called for the temporary suspension of the sale of GK assets to secure higher values with the adoption of a proper strategy to sell them.
“We revealed facts and clues on the whereabouts of Mrs. Sicille Kotelawala to the relevant authorities including the Attorney General, Interpol and the British Home Office. The AG’s Department with the CID should expedite matters in this regard”, it noted. “Even after the tracing of Mrs. Kotelawala the lethargic attitude of the authorities led to a deliberate delay in bringing her before the law in Sri Lanka”.
The Association accused her of illegally transferring money and forming overseas companies with local investments.
“The support of Central Bank Governor Ajith Nivard Cabraal is imperative to implement whatever repayment plan that will be finally accepted”, Ms. Hapugoda stressed. “The Governor has always been very cooperative”.
By: Gdew on November 27, 2011
at 12:25 pm
SC directs CB to expedite payment to Ceylinco depositors
Thursday, 01 December 2011 15:40
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The Supreme Court today directed the Attorney General’s Department to inform the Governor of the Central Bank to set up a separate secretariat to assist the Watawala Commission to assist and expedite the payment to all the depositors in the Golden Key and Ceylinco Sriram of the Ceylinco group of companies before June 30, 2012.
The Supreme Court made the order when the Fundamental Rights case field by the depositors was taken up before a three member beach comprising Chief Justice Shiranee Bandaranaike, and Justices Gamini Amaratunga and K.Sripavana.
By: goodfellow on December 1, 2011
at 4:32 pm
Golden Key repayment process reverts to Central Bank
By Bandula Sirimanna
On a Supreme Court directive, the Golden Key Credit Card Company (GKCC) repayment process is reverting back to the old process of being under the directions of the Central Bank (CB) and the Committee of Chartered Accountants headed by Prof. Lakshman R. Watawala, a senior CB official said.
The Court on Thursday directed the Attorney General to inform the CB Governor to set up a separate secretariat to assist the Watawala Committee to expedite the payment to all the depositors in the Golden Key, before June 30, 2012. It made the order when he Fundamental Rights case filed by the depositors was taken up before a 3-member beach comprising Chief Justice Shiranee Bandaranaike, and Justices Gamini Amaratunga and K. Sripavan.
The Court also ordered the Watawala Committee to sell Golden Key ENT Hospital at Rajagiriya, the Golden Key Children’s Hospital at Narahenpita and three floors of the Ceylinco House at Fort, Colombo 1 to raise funds for the repayments. The advertisements calling for offers are to be published on December 15.
Earlier the GK repayment plan which is more in the nature of a Business Plan agreed upon by GK directors and depositors and approved by the 3-member bench headed by Justice Shirani Thilakawardane on June 29 has not materialized, due to the failure to present modalities of the plan and an official report on GK’s statusquo to the Court.
The much anticipated appointment of five directors to the proposed holding company under the repayment plan deadlocked following objections raised by the Attorney General against the inclusion of two former top GK executives Khavan Perera and Saradha Sumanasekera. Criminal indictments are to be served on them in connection with the 26 billion-rupee GK scam, AG’s department sources said.
A GK secretariat was set up at the CB in 2009 on a Court directive to carry out the repayment process and two installments of Rs.100,000 each on the basis of either 75 percent of the security deposit balances or Rs. 100,000, whichever is lower after verification by the auditors. This process was discontinued following the Court order to implement the repayment plan approved on June 29.
By: Gdew on December 4, 2011
at 2:53 pm
Only 2.5 Bn assets will be available to pay off 26Bn liability. This the depositors have to find investors. Most GK funds were used by TFC and F & G and other Ceylinco related companies….so just expect 10 % of your money or less over which will take 8-10 months to raise!
Please correct me if I am wrong.
By: Kano on December 8, 2011
at 3:22 pm
ATTA BOY !!!, YOU ARE DEAD ON BCOS OF THE DONKEY ASSOCIATIONS HEADED BY THE TWO SLUTS ANUSHA & DUSHANTHI WHO DIDNT HAVE ANY BRAINS OR NEGOTIATION SKILLS TO GET A GOOD DEAL FROM THE CRAFTY SONS OF BITCHES OF CEYLINCO !!!
NOW ONLY OPTION IS TO JUMP FROM AKASA KADE AN COMMIT SUICIDE FOLKS !!!
By: CHIRAN on December 14, 2011
at 1:12 pm
V True!! Big Govt people are protecting Lalith K and Khavan, The Fat Lady K can be brought back but it is known that her friend who is married to * ***** powerful person is protecting her… all some thing to do with some church politicians. The UK is after all a safe haven for **** LAL, Adele Balasingham…. and so many more people wanted by interpol and crimes against humanity.
Can the Church at least give back to the Central Bank what LK “donated”… as it is GK money. Can we see his last will… can the courts request to see this document? His Nephew I think who came from Newzealand (Thin fellow in glasses) comes for every court case! Why??? Is it his inheritance??? that he is guarding?
Please Cardinal Sir give back the money that LK gave the church cos it is ill gotten money!
By: Lauris on December 15, 2011
at 12:06 pm
Lalith Kotelawala the Monster. Why do I call him this? Read this incident -There are so many, but this one touched my heart.. Here is a friend of mine who is a Muslim – Retired, nearly 70 years of age suffering from a neuroproblem.
The daughter and son-in-law wanted to provide him with a small income for expenses and to pay the ever – rising medical bills. In spite of Muslim Banks and Muslim Institutions, they invested with Lalith Kotelwala, who was supposed to be running a financial institution which served the purpose of the Muslim community – vis-à-vis The Ceylinco Global Profit Sharing Investment Corp. Ltd.
When the Golden Key and other Kotelawala investments suffered a breakdown, the company – even though, did not have any financial problems, used this as leverage and stopped paying income to the customers of Ceylinco Global Profit Sharing Investment Corp. Ltd.
This friend of mine did not receive any form of support from this Kotelawala and as such for three years he could not get even a single cent in spite of many appeals.
So this year he sends another fervent appeal to Lalith Kotelawala direct, in March 2011.
Kotelwala strategy is that, “do not even acknowledge receipt of any correspondences.”
Again in June 2011 he sends another reminder stating his condition and the need to get the money back so that they can invest elsewhere or provide with the monthly income as agreed.; Again – No reply.
This unfortunate gentleman has reached the end of his tether and he could not bear any more and sends another letter in December, completely in a depressed state – stating that his only way out was to take his own life – commit suicide – and appealed in the name of Kotelawala’s Lord and Master – Jesus Christ, to help him out or very soon he will receive a letter informing him of his demise.
I persuaded this unfortunate 70 year old gentleman not to do anything rash and hence this note.
Believe me my dear people, this Rascal of a man – Monster Kotelawala, doesn’t care whether anybody lives or commits suicide – he never replies – doesn’t even acknowledge.
While praying to Jesus Christ, he is PREYING ON THE SICK AND THE MISERY OF THE PEOPLE –
NOW YOU KNOW WHY I CALL HIM MONSTER LALITH KOTELAWALA.
The other two monsters are KAS Jayatissa and MZM Rafeek who are involved with the Chief Monster LK
By: Kapilavastu on December 22, 2011
at 10:36 am
Dear God it is X Mas, and I am sure Lalith is Praying to you! Please God make this man realize what fraud and pain he has done on those who trusted him. Make him bring out his hidden billiions and give back what he took, make all those close relatives who are ill advising them and keeping all the wealth realize that this is wrong! Please God it is X Mas and hear our prayer!
By: Stembo on December 25, 2011
at 9:48 am
Is there any good news in near future ?
By: Cyril on January 3, 2012
at 11:35 pm
No news… Lalith is enjoying life and Padmini is partying so give up… you will get about 100,000 in June!!
By: Stembo on January 14, 2012
at 6:39 am
After the 18th Amendment of Constitution, MahaRaja got All the powers what he wants, Law ,Police, Land and etc. etc….. So, I don’t think he will never allow to pay us, our dues. If he can he will acquire (for himself) all the properties & belongings to LK. That Old Bastard (LK) enjoy his life (final days) with our hard earned money. How can we trust High Court & Police, All those Institutes are under control of MahaRaja. There is no freedom in this country. What a shame? We are living in a hell.
By: Samson on January 20, 2012
at 11:19 pm
Now Fort Police is moving to Ceylinco House!!
The Fort police station situated at Lower Chatham Street in Colombo Fort has been moved to Janadhipath Mawatha (President’s Street), Colombo 01 and will operate from the ‘Ceylinco House’ building with effective from today (January 21).
The Ground Floor and the 12th Floor of the building have been designated for affairs of the Fort police station, a Police Headquarters release said.
It therefore instructed the public to visit the station location at No. 69, Janadhipath Mawatha, Colombo-01 for any services required by the Fort Police.
By: Lauris on January 21, 2012
at 2:21 pm
A GROUP A DEPOSITORS HAS COMMENCED NEGOTIATIONS DIRECTLY WITH CEYLINCO CONSOLIDATED DIRECTORS TO REACH AN AMICABLE SETTLEMENT ON GOLDENKEY CRISIS.
A STEERING COMMITTEE OF 10 DEPOSITORS WILL BE APPOINTED SANS ANY TITLES TO FACILITATE MATTERS AND MAKE REPRESENTATIONS TO COURT ON THE NEXT COURT DATE .AWAIT FURTHER DEVELOPMENTS .
By: Khavan P on January 22, 2012
at 4:09 pm
Who are you? Khavan P, why you use that bastard’s name? What a fool you are. Who involve in this?
By: Samson on January 22, 2012
at 10:37 pm
This bladdy bastards name is Ravi Rajapathirana who very friendly with old crock kotalawala sanka n kawan .nw he is trying to play with poor depositors money.earlier this bastard very friendly with anusha and dushanthi when they angry with this paga karaya he went to sankas place to get his money back. now he is dealing with sanka.
By: investigater on January 24, 2012
at 1:52 pm
Whats in a name . Names like Anusha , Dushshanti has got us nowhere during the last 03 years .
What the depositors want is their money back and the only donkeys who are getting money is the Watawala committee , 06 lakhs a month for doing nothing , my foot !!!
By: Khavan P on January 23, 2012
at 6:17 am
Any thing new ?
By: Lauris on January 28, 2012
at 7:31 pm
WELL HAVNG NEGOTIATIONS WITH DIRECTORS OF CEYLINCO CONSOLIDATED….. WHAT A JOKE……..
WHERE IS NIHAL PEIRIS ONE OF THE SIGNATORIES TO THE OFFSHORE BANKING ACCOUNT IN MAURITIUS…. WELL FOREIGN CURRENCY FROM COMPANIES OF CEYLINCO IN AUSTRALIA, LONDON, SINGAPORE, MALAYSIA, NEW ZEALAND ETC. ARE CHANNELLED TO THIS ACCOUNT. THAT IS HOW SICILLE KOTELAWALA IS EXISTING AND DOING THE LA-DI-DA FROM HER LUXRIOUS APARTMENT IN AUSTRALIA TO SINGAPORE THEN TO HER NIECES (SHEREEN WIJERATNE’S DAUGHTER)…. SONALI IN LONDON AND BACK TO AUSTRALIA.
WHY DON’T THE AUTHORITIES AND EVEN THE MOST RESPECTED HONOURED AND LEARNED BENCH OF THE SUPREME COURT ORDER THAT ALL THIS MONEY IS BROUGHT BACK TO SRI LANKA AND ALL DEPOSITORS SETTLED IN FULL WITH INTEREST.
WHAT HAPPENED TO THE LETTER SIGNED BY MR. KOTELAWALA AND KHAVAN PERERA CONFIRMING THAT IN THE EVENT OF A COMPANY COLLAPSING OTHER COMPANIES IN THE GROUP WOULD SUSTAIN AND REVIVE THE FALLEN COMPANY……. WHY DOES NOT CEYLINCO INSURANCE PAY UP THE DEPOSITORS WITH THEIR RESERVE OF OVER 50 BILLION.
HOW COME THAT THE (IN) FAMOUS AJITH GUNAWARDENA AND R. RENGANATHAN HAVE TAKEN A BACK SEAT AND SOMEONE WHO HAD BEEN KOTELAWALA’S RIGHT HAND OVER THE YEARS APPONTED AS CHAIRMAN.
WHY IS NOT NIHAL PEIRIS ARRESTED FOR WITHOLDING INFORMATION OF FOREIGN ACCOUNTS WHERE BILLIONS OF RUPEES OF INNOCENT DEPOSITORS HAVE BEEN CHANNELLED.
WHAT ABOUT THE CROWN JEWELS ACCOUNT IN THE UNITED STATES OF AMERICA WHERE THERE IS BILLIONS OF RUPEES.
ANYWAY ONE THING IS SURE …. WHATEVER ONE’S BELIEF OR RELIGION IS THERE IS AN ALMIGHTY GOD WILL CURSE AND PUNISH THOSE INVOLVED IN BRINGING MISERY TO THE LIVE OF THOUSANDS AND WHO NOW LIVE IN THE LAP OF LUXURY WITH THE DEPOSITORS HAND EARNED MONEY.
KOTELAWALA AND KHAVAN PERERA WHO WERE STAUNCH CATHOLICS WILL SOMEDAY STAND BEFORE THE THRONE OF JUDGEMENT AND BE ACCOUNTABLE TO THE ALMIIGHTY AND THEN FACE THE CONSEQUENCES …… THE LAKE OF SULPHUR FOR ETERNITY.
WHAT ABOUT THE INNOCENT STAFF WHO HAVE BEEN DEPRIVED OF THE COMPENSATIN FOR THE YEARS THEY HAVE WORKED.
GOD IS GREAT AND HE WILL PUNISH THOSE CONCERNED.
By: M. GONE on January 30, 2012
at 7:25 pm
why dont you come to court and present facts through a motion and lodge a complaint in CID with facts and also inform anusha emmert for action rather than writing to these gossip rags!!!
By: legal eagle on February 5, 2012
at 4:18 pm
INCLUDING THE KING AND ANUSHA & DUSHANTHI WHO ARE PAID BY THE BLACK MONEY MAFIA FOR TAKING THE POOR DEPOSITORS FOR A RIDE OVER THE LAST FEW YEARS !!
By: kodebadapucheena on January 31, 2012
at 12:33 pm
we know who is this kondebadapucheena his name is para RAVI RAJAPATHIRANA he is the one handling this web side.
By: investigater on February 2, 2012
at 2:02 pm
What dumb women !! If this fellow is handling this web site he could have blocked about comments adverse to him . Look like he is a intelligent democrat unlike this two dumbo house maids who has taken us nowhere !!!
By: Law Student on February 5, 2012
at 9:36 am
So what is the update of the new discussions? Can Gones list of funds be presented to courts?
By: Lauris on January 31, 2012
at 5:56 pm
Another case against Kotalawala’s company
WEDNESDAY, 01 FEBRUARY 2012 07:49 0 COMMENTS E-MAIL| PRINT |PDF
A case has been filed by the CID against Ceylinco Profit Sharing Investment Corporation Ltd., a subsidiary of Lalith Kotalawala’s Ceylinco group for allegedly cheating and committing criminal breach of trust involving Rs.76.7 million of depositors’ money.
12 gem merchants have complained that their money deposited at Ceylinco Profit Sharing Investment Corporation Ltd had not been paid back with dividends and they deposited money in the company as they trusted Lalith Kotelawala.
The CID informed Court that Lalith Kotelawala, Sunil Jayatissa, Secile Kotelawala, Parana Thanthrige Sirisena, Daniel Jegasothy, Kamaldevi Karunanayake, Malani Sabaratnam, M.R. Zahir, Z.M. Rafeek and K. Sivasamsothy were the directors of the company.
By: Lauris on February 1, 2012
at 2:49 pm
Instead of slinging mud at each other, why doesn’t somebody take seriously what M.Gone has stated above and bring it to the notice of the Hon.Supreme Court?
By: A Depressed Depositor on February 2, 2012
at 3:18 pm
How the SC decisions in SL are ‘fixed’ by filthy lucre exposed: One ‘Broker’ is an Astrologer
(Lanka-e-News-07.Feb.2012, 11.45PM) It has come to light that the Supreme court (SC), that is , the highest court in Sri Lanka is also not immune from corruption, and its decisions can be changed via filthy lucre. Lanka e News is in receipt of information pertaining to one of the methods adopted in this sordid manipulation.
The chief justice (CJ) of the SL supreme court is Dr. Shiranee Bandaranaike. Her husband is Pradeep Kariyawasam who was a spare parts vendor of United Motors for some time. Being a marketing manager, he later became the General Manager of United Motors. Subsequently when he became a bosom pal of President he was appointed as the Chairman of Insurance corporation. Currently, he is the Chairman of the National Savings Bank. He holds the rare and ignominious distinction as the only chairman of a Bank who hasn’t any knowledge of finance or Banking management.
Mind you the most ludicrous aspect in these appointments is, that an astrologer is also holding the post of Working Director in that recognized Banking Institution. The whole world must be enjoying this joke when they learnt that it is a bogus astrological calculation wizard and not a financial wizard who is holding a Director post in a premier Bank in SL. This astrological wizard is Sumanadasa Abeygunawardena born in Morawaka and who has obtained his education at Morawaka Maha Vidyalaya. The only qualification (or rather disqualification) he has is that he is the astrologer who reads the astrological charts of the regime chief , Mahinda Rajapakse.
This bogus astrological wizard, the working Director of the Bank and the Chairman of the Bank are extremely close friends .
Now let us revert to our first paragraph of our news :
Sumanadasa Abeygunawardena charges exorbitant fees . May be because he reads the charts of the ‘Maharaja’. The lady who related this sordid episode has also gone to this astrologer to read her chart (kendaraya). She had been made to understand that she can know how to extricate herself from her litigation involvement via the chart reading. After the fees demanded by Abeygunawardena had been paid , the latter had stated that like how he can read where the stars are in the chart , he can also change the position of the stars. In other words he had told that he is capable of changing the decision of the Supreme court if payments are duly made.
The astrologer Sumanadasa Abeygunawardena had told directly and categorically that if she would make the payment demanded, he could ‘fix’ even the SC decision.
This is how it was exposed that the CJ takes bribes through an agent of her husband. They are of course not frightened. After all the bribe is being taken by the CJ herself and the agent is none other than the astrologer for the regime chief. Hence, they must be therefore thinking , under such circumstances when the bigwigs of the judiciary and the Executive are involved , why fear .
When the legal climate and the judiciary has descended this low, it is clear that in SL now, though there is a supreme court there are no supreme legal traits and traditions which characterized it earlier.
Although it is well and widely known unequivocally that the independence of the SC no longer exists. This truth was further confirmed to the whole wide world by SC justices Dr. Shiranee Bandaranaike, Nimal Gamini Amaratunge and Suresh Chandra , when on the day the regime chief’s son took oaths , these justices instead of being on the bench of the SC or in their official chambers , were in their official cloaks joking and shaking hands with the raw lawyer and tumbling over each other to take photographs with him , and attending parties on that occasion. That is, their conduct was not like that of judges of the highest court of SL, but rather like clowns in a circus arena. This scenario was deplorably unique because it had no parallel anywhere in the world in the judicial sphere for its stupidity and absurdity pertaining to behavior of judges of the highest court of the land. Every nook and cranny in the world became aware how like crooks and nannies these judges behaved in Sri Lanka .
It is well for every law abiding citizen of this country to realize that the time has come for them to put their foot down and take a momentous decision against the present SL climate when judicial decision s of the SC can also be changed via bribes.
By: Sarath Silva on February 10, 2012
at 6:10 am
Golden Key’ case to be heard on March 9
February 10, 2012 12:01 pm
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The Colombo High Court has directed that the case regarding the Golden Key financial fraud to proceed for hearing on March 09, after defence attorneys had requested for time to prepare for the trial.
Nine respondents including Sri Lankan businessman Lalith Kotelawala, who was the chairman of Ceylinco Consolidated, were produced before the court when the case was taken up today (Feb. 10).
By: Bala on February 10, 2012
at 3:44 pm
Bail granted but conditions violated
Friday, 10 February 2012 22:21
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The counsel for the depositors of the Golden Key Credit Card Company complained to the Colombo High Court that the respondents had violated the bail conditions by failing to pay the Rs.40 million to the depositors as agreed by them before the Supreme Court as a condition of bail.
Counsel Sumudu Hettige made this disclosure to High Court Judge Sunil Rajapaksa during the inquiry into the Golden Key Credit Card Company allegedly for misappropriating around Rs.720 million in cash invested in the Credit Card Company by the depositors.
At the onset of the case Senior State Counsel Damith Totawatte filed a list of witnesses who were to give evidence for the prosecution.
Subsequently Counsel Sumudu Hettige appearing for the aggrieved parties made the disclosure about the non-payment of cash by the respondents to the depositors. President’s Counsel Jayantha Weerasinghe appearing for one of the accused objecting to Mr. Sumudu Hettige said the defendants had already paid Rs.1.2 million to the complainants. (TFT)
By: Bala on February 10, 2012
at 10:27 pm
More corruption activities of judges surface: A ‘bribe’ to Justice Abeyratne –Son promoted as senior State counsel
(Lanka-e-News-09.Feb.2012, 11.45PM) Following the exposure of the bribe taking mode of the chief justice of Sri Lanka (SL), Dr.Shiranee Bandaranaike to change judgments under the caption “How the SC decisions are ‘fixed’ by filthy lucre exposed………” in our website , we at Lanka e news are inundated with copious information on these types of sordid activities in the judicial sphere .
A President’s Counsel Lawyer speaking to us said, there are very few judges in SL who are immune from bribe taking. Judges are infected with this contagion of bribe taking all round , he added.
One case in point is the appointment given to the son of Appeal court judge Upali Abeyratne , the judge who has already tarnished his name professionally. His son has been appointed as a Senior crown Counsel by the Govt. Because he appeared as a junior State counsel in Fonseka’s case , and he is the son of Upali Abeyratne he had been elevated as a senior crown counsel. But , the whole of the Attorney General’s Dept .is rudely shocked over this appointment for he is not at all competent to hold that post.
In addition , at the same time , a son of a Supreme Court judge and his fiancée who are both utterly unsuitable for promotion have also been appointed as senior crown counsels by the Govt. But , the strange turning point in this romantic tragic -comedy is the Romeo (SC Judge’s son) finally getting the boot from Juliet (fiancée) after the promotion.
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The jokers at the Attorney General’s department- most of them – participated in dinner given by this bogus lawyer. Nikan bath pinganak denawa nam….
Posted By: pisupoosa
So, even the judiciary in Sri Lanka has gone to dogs and bitches with apologies to the very few honest judges. What about the CID. The job of most of the CID officers is to look for those who do illegal activities and befriend them and get bribes to continue their illegal activities. Even top leaders of LTTE could have left Sri Lanka through the BIA to another country if they bribed the CID properly but those who try to go to Italy or other countries to earn and send the much required foreign exchanged are taken into custody if they are not bribed.
Posted By: Sirisena
By: Sarath Silva on February 12, 2012
at 11:30 am
Furore over Golden Key ENT Hospital sale
Moves to accommodate lower bidder despite Rs. 800 mn offer
February 11, 2012, 6:36 pm
article_image
by Suresh Perera
The proposed sale of the state-of-the-art ENT Hospital — one of the biggest assets of the collapsed Golden Key (GK) — has run into a storm with depositors’ associations vehemently opposing, what they termed, “an attempt to push through a deal with a leading diversified business conglomerate, in which the head of the Committee facilitating the GK repayment process, has a stake”.
A bid for 750 million rupees for this ultra-modern medical facility had been submitted by Richard Pieris & Company PLC, of which Prof. Lakshman R. Watawala, Chairman of the Committee of Chartered Accountants, serves as a sitting director, officials said last week.
However, after the tender process closed on January 23, 2012, the Softlogic Group headed by Ashok Pathirage, had bid 800 million rupees,50 million rupees more than the first offer. The hospital has an outstanding 250 million rupee debt commitment which will have to be honored after the deal is sealed, they said.
“We are totally against this valuable GK asset being sold to Richard Pieris under the technicality that it was the solitary bidder”, says Ms. Dushanthi Hapugoda, President, All GKCC Depositors’ Association.
“At a time every rupee counts to settle struggling depositors, we will fight tooth and nail to stall any move to dispose of this prime property to the lower bidder”, she said. “Three years after GK’s crash, we have received only 200,000 rupees so far”.
This ENT Hospital, described as one of the best in this part of the world, had been actually valued at 1.2 billion rupees earlier by a global professional accountancy firm, Ms. Hapugoda said. “There seems to be no option under these distressing circumstances now than to sell it for far less than its total worth”.
There is a clear conflict of interests as Watawala cannot be allowed to push through the deal on behalf of a company he represents as a director, protested Ms. Anusha Emmert, President, Golden Key Depositors’ Association. “For three years the Committee could not sell any tangible GK assets”.
Watawala could not be reached for comment as he was overseas, but a senior official close to the Committee said, on condition of anonymity, that the tender process was handled by the other two members Nelson Nagasinghe and Mahendra Panditha.
Watawala opted out as Richard Pieris was the bidder, he explained. “Later, the Softlogic Group made a higher bid which will bring 50 million rupees more to the kitty to repay depositors”.
There were seven interested parties who had paid the non-refundable 5,000 rupees each and collected the tender forms, Ms. Hapugoda pointed out. “But, surprisingly, we were told by the Committee that only Richard Pieris had bid”.
“That’s right, five applications were issued, but there was only one bidder at the time tenders closed”, the senior official conceded. “We have apprised the two depositors’ association of this situation”.
“Our biggest fear is that the tender will be awarded to the lower bidder (Richard Pieris) on the technicality that Softlogic Group’s bid was received after tenders closed”, Ms. Hapugoda said. “With a Committee member having vested interests, there is room for this to happen”.
“We will be considering both bids and negotiate with the parties concerned to get the best possible price for this asset”, the official assured. “After all, the Committee is responsible to the Supreme Court”.
In their repayment plan submitted to the Supreme Court in January 2011, GK directors had given an assurance to sell assets (including the ENT hospital which they had valued at three billion rupees) to settle depositors within a set timeframe, she said. “They could not even raise three cents, let alone three billion and their scheme died a natural death”.
“We had to pay the salaries of ten staff members to work on this so-called repayment plan and dish out 600,000 rupees from the dedicated fund and what started with a bang ended with a whimper”, she complained.
The highest bid received for another GK asset – the Children’s and Women’s Hospital at Kirimandala Mawatha, Colombo 5 was 900 million rupees. However, there is a debt commitment of 670 million rupees on this incomplete seven-storied complex situated on 616 perches of prime property, officials said.
Ms. Hapugoda said this key asset had been mortgaged to Seylan Bank for 600 million rupees by the management days before GK crashed, and in addition another 70 million rupees was being claimed by the construction company which had taken away a load of steel, cement and other building materials worth millions of rupees after work came to a standstill.
She said that the company, while staking a claim for construction, had also used the building to house its field workforce for a year after work came to a halt.
“Why should a 600 million rupee be obtained at the eleventh hour when over 75% of the work on the building was completed, from a bank which was also under the purview of the then Chairman Lalith Kotelawala?’ , she asked. “There appears to be something amiss here”.
GK had also failed to recover around 1.5 billion rupees outstanding credit card dues including over 600 million rupees from Directors, 875 million rupees from non-depositors and more than 100 million rupees granted as interest-free loans to GK employees, she said.
GK has so far repaid 800 million rupees (of 100,000 rupees each) to 8,143 depositors under the first phase followed by another 687 million rupees to 7,060 depositors (The monetary commitment was less as those who had more than one credit card did not qualify). The total liability towards depositors stands at 26 billion rupees.
Ms. Hapugoda said that despite the Supreme Court requesting operating Ceylinco Group companies to help ease the agony of GK depositors, some of whom had already committed suicide in desperation, no initiative has been taken so far to even causally ascertain what could be done to ease human suffering.
“Depositors invested their hard-earned money in GK because it was a subsidiary which had the backing of the Ceylinco Group, but there is nobody now to help these poor people left in the lurch”, she noted. “The personal assets and properties of GK directors have also not been disposed of so far”.
While Sakvithi is languishing in prison, Kotelawala and the other directors are still living in the lap of luxury after being accused of the biggest fraud in Sri Lanka, Ms. Emmert charged.
By: Bala on February 12, 2012
at 11:59 am
:News » Cabinet Minister’s daughter bids Rs. 900 mn for GK Children’s Hospital
Cabinet Minister’s daughter bids Rs. 900 mn for GK Children’s Hospital
February 11, 2012, 6:41 pm
The daughter of a Cabinet Minister had submitted a bid for 900 million rupees to acquire the Children’s and Women’s Hospital at Kirimandala Mawatha, Colombo 5 – a key asset of the collapsed Golden Key (GK) company.
Bids for this five-storied complex on 616 perches of prime property in Colombo closed on January 23, 2012.
The Minister’s daughter was amongst three bidders for this valuable asset.She has offered 500 million rupees in cash and the balance 400 million rupees in shares to be transferred to the GK depositors dedicated fund after going in for a listing, officials said.
Public listings and transferring shares are a time-consuming and complicated process, they said. “The bid is expected to be awarded to a company which has offered 900 million in cash”.
This medical facility, which was nearing completing when GK folded up, is being sold to raise liquid cash to repay depositors.
The Minister concerned was amongst some key UNP members who defected to the government.
By: Bala on February 12, 2012
at 12:03 pm
Would we have been better off with this??
Sri Lanka’s collapsed Golden Key strikes historic repayment deal
Tue, 2011-01-25 02:33 — editor
News
By Santhush Fernando in Colombo
Colombo, 25 January, (Asiantribune.com):
Many criticize continuing Ceylinco companies under the management of money embezzlers like Lalith Kothalawela, Kavan Perera, despite Central Bank’s Good Governance directives.
In a historic move, directors of Ceylinco Golden Key Credit Card Company (GKCCC) signed a repayment deal with the depositors who have been undergoing untold sufferings during the past two years.
Sri Lanka’s banking watchdog- Central Bank even after a lapse of two years fails to resolve the matter along with crises of four other Ceylinco firms
Speaking to the Asian Tribune , Golden Key Depositors Society (GKDS) President Anusha Emmert said that the deal will ensure between 25 to 100 percent repayment to depositors.
Deposited in or before Percentage entitled to :
2008 December100
2008 January80
2007 December79
2007 January60
2006 December59
1993 December25
According to the deal, GK Chairman Lalith Kothalwela and CEO Kavan Perera had also undertaken to pay interest at the rate of 6 per cent per annum until 2014.
Emmert said that the depositors were really grateful to Mangala Boyagoda for formulating the repayment scheme and bringing about a settlement, which the country’s banking watchdog- the Central, Bank even after a lapse of two years failed to resolve along with crises of four other Ceylinco firms.
Although Golden Key depositors can heave sigh of relief many criticize continuing Ceylinco companies under the management of money embezzlers like Lalith Kothalawela, Kavan Perera, despite Central Bank’s Good Governance directives.
“Kavan Perera, Lalith Kothalwela and other directors, who are now enlarged on bail, will to continue as directors. If one payment is defaulted we ensure that law is enforced against them,” Emmert said.
Five Ceylinco entities – Ceylinco Golden Key Credit Card Company Ltd, Ceylinco Finance and Guarantee (F&G), Ceylinco Investment and Realty (CIR), Ceylinco Profit Sharing Ltd, and Ceylinco Shriram, were hit during the recent global financial crisis and the Central Bank, failed to avert any ripple effects.
By: Bala on February 14, 2012
at 5:04 pm
More corruption activities of judges surface: A ‘bribe’ to Justice Abeyratne –Son promoted as senior State counsel
(Lanka-e-News-09.Feb.2012, 11.45PM) Following the exposure of the bribe taking mode of the chief justice of Sri Lanka (SL), Dr.Shiranee Bandaranaike to change judgments under the caption “How the SC decisions are ‘fixed’ by filthy lucre exposed………” in our website , we at Lanka e news are inundated with copious information on these types of sordid activities in the judicial sphere .
A President’s Counsel Lawyer speaking to us said, there are very few judges in SL who are immune from bribe taking. Judges are infected with this contagion of bribe taking all round , he added.
One case in point is the appointment given to the son of Appeal court judge Upali Abeyratne , the judge who has already tarnished his name professionally. His son has been appointed as a Senior crown Counsel by the Govt. Because he appeared as a junior State counsel in Fonseka’s case , and he is the son of Upali Abeyratne he had been elevated as a senior crown counsel. But , the whole of the Attorney General’s Dept .is rudely shocked over this appointment for he is not at all competent to hold that post.
In addition , at the same time , a son of a Supreme Court judge and his fiancée who are both utterly unsuitable for promotion have also been appointed as senior crown counsels by the Govt. But , the strange turning point in this romantic tragic -comedy is the Romeo (SC Judge’s son) finally getting the boot from Juliet (fiancée) after the promotion.
By: gaya on February 16, 2012
at 7:15 am
please update us on todays court case. Yesterday Anusha held a protest.. some photos of it in Sunday times web site showed some like Dushani participating is this correct?
What progress has the new team of negotiators made?
Pls some one reply
By: Bala on February 16, 2012
at 1:01 pm
SO THE HON CJ DOES NOT WANT PEOPLE TO PROTEST?? HOW DARE YOU MADAM??
Timely warning by Chief Justice
February 16, 2012, 9:54 pm
By Chitra Weerarathne
Chief Justice Dr. Shirani Bandaranayake, while hearing the fundamental rights violation application filed by Golden Key Depositors, said that “we all know that we have to go in a coffin one day. That is the only certainty in this world. No need for anybody to display a coffin within the Court premises.’
She was referring to information she had received to the effect that an unruly procession by Golden Key Depositors had displayed a coffin near the Court premises; while carrying posters referring to the Golden Key case.
Justice N. G. Amaratunga said that the Supreme Court was attempting to bring a reasonable settlement to the depositors. But aspersions were being cast on the judiciary. The depositors might as well go to the District Court and seek an injunction on the issue.
The counsel for the petitioners who had been in this procession, told the Court that he was not aware that his clients were taking to the streets that way. He said he had warned them that they could be punished for contempt of court.
The Chief Justice also said that when an allegation was made, their should be a basis for doing so.
By: Bala on February 17, 2012
at 3:09 am
SC lays down directors to pay back Golden Key depositors
February 16, 2012, 10:04 pm
By Chitra Weerarathne
The Supreme Court yesterday advised the Deputy Solicitor General Viraj Dayaratne to convene a meeting with the Directors of the Ceylinco Consolidated Company Pvt. Limited. The meeting is to include representatives of the Central Bank and the Institute of Chartered Accountants. The meeting is to be held at the Attorney General’s Department and is aimed at preparing an agreed Repayment Plan to pay the 9123 depositors who had deposited with the Golden Key Credit Card Co. Pvt. Limited.
The repayment plan is to operate within three months from the date of the meeting, scheduled to be held within two weeks from yesterday. The meeting is also intended to facilitate the Supreme Court which is making an effort to settle the monies deposited by 9123 depositors. Meanwhile the sale of the Golden Key ENT Hospital will be readvertised to obtain a suitable offer.
The court made the above directives when the fundamental rights violation application filed by the aggrieved depositors was taken up yesterday.
The Bench comprised, the Chief Justice Dr. Shirani Bandaranayake, Justice N. G. Amaratunga and Justice K. Sripavan.
By: Subramanium on February 17, 2012
at 3:17 am
With due respect to you Hon.CJ and to the Hon.Bench and the Hon. Supreme Court, if you do not want demonstrations, PLEASE find a solution to repay us. It is over 3 years now and we are suffering. 23 depositors have already died. Are you waiting for more to die to come up with a solution?? Over to you Hon. Madam
By: A Depressed Depositor on February 18, 2012
at 11:15 am
SC orders Ceylinco directors to formulate plan to repay GK depositors
Within a six-month timeframe
February 18, 2012, 7:35 pm
by Suresh Perera
The Supreme Court last week directed the 16 sitting directors on the board of companies under the Ceylinco Consolidated umbrella to sit together with their counterparts of the collapsed Golden Key and formulate a repayment plan in consultation with the Attorney General’s Department to repay all depositors within a six-month timeframe.
The final repayment scheme should be placed before the Supreme Court (SC) on March 22, 2012, and should come into operation three months after its approval and thereafter completed within the six months to follow, Chief Justice Dr. Shirani Bandaranayake said.
This means that a three-month period will be granted for the directors to raise liquid cash to settle the outstanding liabilities and the process of settling depositors should be concluded within a six-month timeframe, officials explained.
“I don’t want repayment plans which drag on for four to five years”, the CJ noted, at the resumed hearing of the Fundamental Rights (FR) plea filed by a group of GK depositors. The three-member bench headed by CJ Bandaranayake comprises Justices N. G. Amaratunga and K. Sripavan.
The repayment mechanism will be worked out under the supervision of Deputy Solicitor General (DSG) Viraj Dayaratne, the Central Bank and the Committee of Chartered Accountants in terms of the SC order.
The final draft will also be forwarded to the two depositors’ association for the go-ahead, officials said. “It will have to be mutually acceptable and workable”.
The SC also directed that fresh bids be called for the proposed sale of the state-of-the-art Golden Key ENT Hospital on the basis of a minimum bidding price of 780 million rupees.
Described as one of the biggest assets of GK, a Ceylinco subsidiary which crashed in December 2008, the proposed sale of this modern health facility had run into a controversy with the Softlogic Group offering more than Richard Pieris, the only bidder after the tender closed.
Acceding to a plea by depositors, CJ Bandaranayake ordered that only prospective bidders who offer the minimum bidding price or a value over and above 780 million rupees be considered.
Ms. Dushanthi Hapugoda and Ms. Anusha Emmert, in a separate appeal to the SC, requested court to consider re-remanding Ceylinco Chairman Lalith Kotelawala and directors, Kavan Perera, Saradha Sumanasekera, Neranjan Fernando, Mrs. Padmini Karunanayake and Ms. Padmini Nandani Kumar as they had “violated bail conditions by misleading court and the depositors over the past one year”.
Ms. Hapugoda said yesterday that Kotelawala and the other directors had given categorical assurances that they would make every endeavor to repay depositors and even sell their personal assets to raise funds for this purpose, if they were granted bail, Ms. Hapugoda said.
But, after they were released, nothing happened, she complained. “Depositors have been repaid only 200,000 each in the past three years as the directors seems to have lost interest. They still continue to even cling on to their personal assets”.
Even during meetings with the two depositors’ associations, Kotelawala gave repeated assurances that he would personally raise funds to meet 75% of the liability but all the pledges he gave have fizzled out, she asserted. “For struggling depositors, the nightmare continues”.
She said that two directors, Saradha Sumanasekera and Suramya Karunanayake had given an undertaking to court as part of their bail conditions to pay back 40 million rupees and 15 million rupees, respectively in outstanding credit card dues within one year, but had failed to do so though two years have gone by.
The intervention of court was also sought to acquire the assets of Kotelawala and the other directors, including their personal properties, and the shareholdings at Ceylinco Insurance Limited PLC, Seylan Bank, Seylan Development Bank (Citizens Development Bank) and related companies and other hidden and undeclared assets.
They submitted to court a copy of a newspaper advertisement placed by Kotelawala on December 29, 2008, where he inter alia, states “I have always believed in doing the right thing in life, however painful it may be.
“I have therefore now taken a decision to divest the investment in my beloved bank, Seylan Bank, which I founded twenty years ago and honour the debts of The Golden Key Credit Card holders. As you know, the Seylan Bank is the third largest private sector bank in the island with a very strong and loyal client base and an extensive distribution branch network island-wide, I will be taking necessary steps to obtain permission from the relevant regulatory authorities in this regard.
“In the meantime, The Golden Key Credit Card holders will receive payment commencing on Monday the 29th of December 2008 to refund their security deposits. The customers will be contacted personally by us from the Golden Key office. Payments will commence from the smallest security deposit. I earnestly seek your patience and understanding in the coming months to do this in an orderly manner.
“I assure you that we will not run away from our obligations”.
Ms. Hapugoda said that negotiations are also ongoing to sell a six-acre quarry owned by GK at Narammala. The property together with some heavy machinery and four generators has been valued at 25 million rupees.
By: Subramanium on February 19, 2012
at 2:24 am
THE CHIEF JUSTICE HAS FULLY ENDORSED WHAT THE THE TEAM OF INDEPENDENT DEPOSITORS HAS DONE BY DIRECTLY NEGOTIATING WITH CEYLINCO CONSOLIDATED DIRECTORS .
NEGOTIATIONS ARE PROCEEDING SMOOTHLY WITHOUT THE TWO MAFIA QUEENS ( EX HOUSEMAIDS) . DO NOT GIVE DONATIONS OR BRIBES TO GET YOUR MONEY TO THEM.
DUSHATHI AND HER SIDE KICK MALCOM HAS COLLECTED RS.10,000.00 EACH FROM SOME BIG TIME DEPOSITORS IN SEEDUWA PROMISING TO GET THEIR MONEY BACK !!!!!
By: AYANTHI G on February 21, 2012
at 1:00 pm
Dear Ayanthi
All the best in your efforts. Please what kind of percentage are they willing to pay us back and how long are they asking for it?
We hang on to any hope that we will get our money back.
By: Subramanium on February 21, 2012
at 7:20 pm
So where have the shares in Seylan gone???
Ceylinco to sell Seylan shares to pay Golden Key depositors
By Bandula Sirimanna
As the Golden Key Credit Card crisis grew, Ceylinco Consolidated Chairman Lalith Kotelawala — in an unexpected move — yesterday announced he was divesting the stake of his Ceylinco Group in Seylan Bank, saying he needed the money to settle depositors at the crisis-hit credit card company.
The move came amidst concerns from the Central Bank where officials were worried about the impact on deposits at the Seylan Bank, founded two decades ago by Mr. Kotelawala, a powerful and politically-influential businessman.
Lalith Kotelawala
Seylan Bank CEO Ajitha Pasqual confirmed the Ceylinco Group was exiting and selling off all its interests in Seylan. “It may be 23-24 percent or even more. Mr. Kotelawala wants to raise funds to settle Golden Key depositors,” he said, adding that there were two interested parties in buying this stock, one from abroad.
Mr. Pasqual said there was no cause for alarm as Sey
By: Subramanium on February 26, 2012
at 1:16 am
Lalith Kotelawala ups stake in Ceylinco Insurance
Mar 7, 2012 1:58:45 PM – http://www.ft.lk
He may be serving bail and facing wrath of Golden Key customers, but the estranged founder Lalith Kotelwala’s craving for Ceylinco Insurance appears to be insatiable.
Kotelawala has bought 18,141 shares during the quarter ended on 31 December 2011 thereby increasing his stake to 54,886 or 0.27% and moving up one position to be the 16th largest shareholder of Ceylinco Insurance.
In the top 20 list of shareholders of Ceylinco Insurance the only movement was that of Kotelawala.
Shares of Ceylinco are illiquid and at Tuesday’s closing price of Rs. 689.90, Kotelawala’s stake is valued at Rs. 38 million.
In the December 2011 quarter during which Kotelawala had purchased additional shares, he could have spent anything between Rs. 10.8 million (lowest price of Rs. 600) and Rs. 14 million (highest price of Rs. 774.60) or Rs. 13.5 million as per the closing price of Rs. 746.70.
Ceylinco Insurance has declared a dividend of Rs. 6.50 for 2011 financial year and Kotelawala as a shareholder will get some cash as well.
Mid February irate and long suffering customers of Golden Key demonstrated urging authorities to put Kotelawala back in jail for their dues unsettled for three years and as he had violated the undertaking given to the Supreme Court as bail condition.
The Ceylinco group has put on sale several of its subsidiaries and properties to raise funds to repay depositors of Golden Key.
Last year, Kotelawala quit the Ceylinco Insurance Board after being absent for several years. Though listed for re-election, he quit the Board saying he “will not be available for re-election as a director of Ceylinco Insurance due to personal reasons”. In July last year Kotelawala was released on bail following an order given by Colombo High Court Judge Deepali Wijesundara. Along with Kotelawala seven others have been accused of massive fraud at the collapsed Golden Key Credit Card Company. The Colombo High Court released Kotelawala and the other accused members on a Rs. 5 million surety bail each.
Following the collapse of the Ceylinco Group affiliated Golden Key credit card company, Kotelawala, who was the Chairman of the company and seven others were indicted in the Colombo High Court for the alleged misappropriation of Rs. 4.1 billion.
The court has served indictment papers on each of the accused and an arrest warrant had also been issued on the sixth accused, Sicille Kotelawala who was not present in court.
http://www.ft.lk – Lalith Kotelawala ups stake in Ceylinco Insurance
By: hgwash on March 9, 2012
at 2:27 am
(Srilankamirror) – Interpol has traced Cecile Kotelawala, wanted in connection with the Golden Key Credit Card scam, to an address in England.
The confirmation was intimated to Colombo high court judge Sunil Rajapakse today (Mar. 09) by officials of the Interpol Sri Lanka branch.
Cecile, her husband, former chairman of Ceylinco Group Lalith Kotelawala, and eight other directors stand accused of misappropriating nearly Rs. 7.2 billion deposited in Golden Key Credit Card Company.
All except her have been released on strict bail conditions, and appeared before the court today.
Many of the 778 witnesses in the case were also present at the hearing.
By: hgwash on March 10, 2012
at 3:57 pm
GK depositors hope to chase Sicille in UK
By Suresh Perera
A four-member team representing depositors of the collapsed Golden Key (GK) is expected to fly to the United Kingdom next month (April) to lodge a formal protest with the British government over “violation of human rights” as Mrs. Sicille Kotelawala has been provided a safe haven on British soil.
As a director of this crisis-hit Ceylinco subsidiary, a judicial arrest warrant had been issued in Sri Lanka against Mrs. Kotelawala but she left the country and continues to evade the law by living in London for the past three years, says Ms. Ms. Dushanthi Hapugoda, president of the All GKCC Depositors’ Association.
“We will protest against the arbitrary British action, ignoring the fact that Mrs. Kotelawala was responsible for collectively breaching the trust and defrauding around 10,000 people, thereby directly transgressing their basic human rights”, she said.
“We are aware of her address in Central London and our team will be lodging a strong protest over harboring a fugitive responsible for Sri Lanka’s biggest white collar crime amounting to 26 billion rupees”, she noted.
Some GK depositors domiciled in the UK will lay the ground work to lodge this formal protest, she continued. “We will take this issue to the highest possible level in Britain”.
The court documentation is now being translated into English to be forwarded to the British government for immediate action to send her back to Sri Lanka to face justice, Ms. Hapugoda explained. “The costs we have to bear are substantial, but we need to take a firm stand on the frustrating inaction”.
When the High Court case indicting Ceylinco Chairman Lalith Kotelawala and the other GK directors was taken up before Judge Sunil Rajapakse, Interpol officer, Inspector Tuan Ishan Raban said the United Kingdom had confirmed that Mrs. Kotelawala had entered the country.
On an application made by the CID, the Mt. Lavinia courts on March 19, 2009 granted permission for an international warrant drafted in English to be issued via Interpol for the arrest of Mrs. Kotelawala, the Registrar of the court testified.
An immigration officer told the High Court that it has been confirmed that she had left the country on January 1, 2009, but the flight details were not known.
IP Raban said that Interpol had alerted Singapore, Hong Kong, Malaysia and the UK on her possible presence, but while the other countries had reported back that she had not gained entry, the British confirmed her arrival and presence on its soil.
Court had issued summons on Mrs. Kotelawala on December 26, 2008 but she could not be traced. Five days later, she had left for the BIA and at 5 am the following day, flown out of the country, he said. “There was no evidence of her return to Sri Lanka”.
The CID has been informed that she has been issued a British visa valid until June 19, 2018.
Asked by court what action had been taken to bring her down, he said, “The Attorney General’s Department was informed about the developments”.
“We appealed to the AG’s department and the CID in May 2011, but no action was initiated to get her down”, Mrs. Hapugoda complained. “Depositors are living in anguish while she is having all the comforts in UK”.
She said that at a meeting with the President before the presidential poll, when she asked why Mrs. Kotelawala cannot be traced when even KP was arrested and brought back to Sri Lanka, he had said that if her whereabouts were known, it could be done within 24 hours. “We have the address in London, but, it was not done”.
It had transpired at the Mt. Lavinia courts earlier that Mrs. Kotelawala had lavishly used GK funds for scores of overseas trips. She had served as a director for only 17 years but had drawn millions of rupees as gratuity from GK claiming she had served for 25 years.
At the time, she had forwarded a medical certificate purportedly from a private hospital in Singapore, but Deputy Solicitor General Sarath Jayamanne had expressed reservations saying the certificate is hazy and if Mrs. Kotelawala was not well, she could have got herself admitted to a government health facility there.
By: Reporter on March 11, 2012
at 8:32 am
INTERPOL confirms Sicille Kotelawala legally living in the UK since 2009
Sunday, 11 March 2012 11:19
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On-the-run Sicille Kotelawala, a key suspect in the Rs 26 billion Golden Key (GK) scam which brought down the entire Ceylinco empire in December 2008, has been legally living in the UK since 2009, after fleeing Sri Lanka, a local court was told this week.
Evading arrest since the GK crisis broke out, Ms Kotelawala, wife of Lalith Kotelawala, is living in Central London, Inspector Ishan Raban attached to the INTERPOL division at the CID, told the Colombo High Court, when the GK financial fraud case was taken up for hearing on Friday.
Lawyers for the depositors said that INTERPOL has been tracking her in Singapore, Hong Kong, Malaysia and England, and finally found her living in London. Her visa in the UK was extended in June 2011, for up to 19-06 -2018.
This was the first time this information transpired in Court, although several depositors informed the CID and Attorney General‘s (AG) Department of the possible hiding place of Ms Kotelawala in the UK in 2011, said President- GK Depositors Association, Dushyanthi Hapugoda. She said that she was informed by the AG’s department that they were contemplating moving for the extradition of Ms Kotelawala, who has been traced to the UK at that time.
She added that they have told her that this procedure is time consuming, as they have to file an application with the British crown prosecution seeking her extradition.
President- GK Depositors Society, Anusha Emmert told the Sunday Times that they cannot understand as to why the authorities are still delaying to arrest the suspect, where a judicial arrest warrant has been issued against her on March 2009, in connection with the GK scam, which saw thousands of depositors deprived of their hard earned money, following the Company’s collapse in December 2008.
The AG’s Department indicted Lalith Kotelawala and eight other GK directors and officials under 91 criminal charges for alleged conspiracy against the State, by operating a finance company between 1999 and 2008, against the provisions of the Finance Companies Act, and thereby, inter alia, committing criminal breach of trust and misappropriation of funds in connection with the GK scam.
Others indicted are Khavan Michael Perera (CEO-Deputy Chairman), Sicille Kotelawala, Padmini Karunanayake, Saradha Sumanasekera, Neranjan Fernando, Suramya Karunanayake, Padma Nandani Kumar and Shantha Ranasinghe, who served as the Company’s Financial Controller.
By: hgwash on March 11, 2012
at 11:50 am
“why the authorities are still delaying to arrest the suspect,”
The same authorities delaying on Duminda Silva, KP and a multitude of political thugs
By: Sam Perera on March 11, 2012
at 2:21 pm
Reply to Sam Perera :- Because the Authorities are benefiting out of it!!
By: A Depressed Depositor on March 24, 2012
at 11:57 am
is sicilia got caught in UK ?
By: Smith on March 20, 2012
at 7:47 am
The CJ by her last ruling thrown the case out of the supreme courts! Now each depositor over 3Mn has to open individual cases in the Commercial High Courts after spending what ever money is left. The others I think the havens will have to bless them! The guys who negotiated without Dushani and Anusha… who called them names now is your turn to shine!!
Please meet on Saturday next @ 9AM near GK office for meeting. We have to go to meet HE.
By: barnabas on March 27, 2012
at 6:06 pm
What happen on 31/03/2012 after protest opposit GK office ,did it success the discusion with Precident ?
By: Cyril on April 2, 2012
at 8:07 am
HC wants AG to report whether directors violated bail conditions
Golden Key fraud
April 28, 2012, 6:49 pm
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By Suresh Perera
A judicial order was made last week directing the Attorney General to submit a report on whether Ceylinco Chairman Lalith Kotelawala and five other Golden Key (GK) directors had violated the conditions under which they were released on bail by the Supreme Court.
Colombo High Court Judge Sunil Rajapaksa gave this directive at the resumed hearing of the case where seven GK directors, Kavan Michael Perera, Saradha Sumanasekera, Suramya Karunaratne, Neranjan Fernando, Lalith Kotelawala, Mrs. Sicille Kotelawala, Mrs. Padmini Kamaladevi Karunanayake and Punya Shantha Ranatunga, the company’s financial controller are charged with defrauding billions of rupees in deposits and criminal breach of trust.
While Mrs. Kotelawala is being tried in absentia as she had left the country, Vithanaralalage Dharmasiri, a former tax officer of the Inland Revenue Department, is also amongst the accused.
Senior State Counsel Damith Thotawatte sought an order directing the CID to hand over to court the relevant GK documentation now being held under police protection at the company’s head office. These documents are vital for the case.
Counsel for depositors, Athula Ranagala said the GK directors were granted bail by the Supreme Court on the basis of a repayment plan they formulated with an undertaking to settle depositors’ liabilities but if they had violated the bail conditions, they can be re-remanded.
He said the former Attorney General (AG) had brought disorder into this issue by indicting the GK directors for a Rs. 4 billion fraud when depositors had been cheated of and thereby lost Rs. 26 billion.The failure on the part of the directors to honor their pledge to repay depositors within the stipulated timeframe is a clear indication that they had violated the conditions under which they were released on bail by the Supreme Court, Ranagala said.
Thotawatte said the former AG made representations on behalf of the Central Bank.
Acceding to the request made on behalf of depositors, the High Court Judge ordered the AG to forward a report on whether the GK directors had violated the conditions under which they were granted bail. He also directed the officers in charge of the Bambalapitiya police and the CID respectively, be informed about the documentation required for the court case.
“Of course, Lalith Kotelawala and the other directors gave a specific undertaking to the Supreme Court on October 23, 2009 that they would repay all depositors”, recalled Ms. Dushanthi Hapugoda, President, All GKCC Depositors’ Association.
That was how they obtained bail but after being released, they failed to pursue with the repayment plan and honor the undertaking given to court, she asserted. “Everything then fell by the wayside”.
She said that according to the repayment plan submitted at the time, depositors who had invested Rs. 1 million and less were to be settled within three months and the second category – those who had invested between Rs. 1 million and Rs. 2.5 million and above to be paid “as early as possible”. But, nothing constructive materialized after bail was granted.
The bulk of GK depositors – around 5,500 (70%) – were relatively small-timers with holdings up to Rs. 2.5 million. Amongst them are people who had invested their retirement benefits to earn a better rate of interest from a subsidiary of the Ceylinco empire to make ends meet, she explained.
The SC bench headed by Mrs. Shiranee Thilkawardena earlier also made order on an application by the AG to dispose of assets worth Rs. 2.2 billion. A part of these funds were to be utilized to repay depositors under Phase I and court also ordered the transfer to a Trust or Special Purpose Vehicle (SPV) all investments and assets of Ceylinco Group represented by the directors of Ceylinco Consolidated Ltd., who are also deputy chairpersons of all Ceylinco Group companies. The purpose of this transfer was to create a holding company for Ceylinco Group.
There were directives and directives, but GK depositors continue to struggle with only Rs. 200,000 paid during the past three years, Ms. Hapugoda complained. “Everything looked good on paper but nothing happened at ground level”.
She said that the SC also directed Ceylinco Group companies to transfer their investments and shareholdings in any of their companies, subsidiaries or associates coming under the deputy chairmen in Ceylinco Consolidated as at October 23, 2009 to the special purpose vehicle.
She recalled how the then AG, Mohan Peiris informed court that Lalith Kotelawala was cooperating with the collection of assets through which 75% of depositors can be repaid and Kotelawala also placed his personal assets at the disposal of court for the repayment of depositors.
The AG told court that Romesh de Silva, appearing on behalf of Kotelawala, informed him that for the balance 30% of the assets, he has already given a list (of assets) with a value of Rs. 13 billion for the purpose of settling the capital sums of these depositors, according to the court order.
It was based on these undertakings that court, under the provisions of the Bail Act No. 30 of 1997, granted Kotelawala and Mrs. Padmini Karunanayake Rs. 5 million cash bail and Rs. 100 million certified bail with five sureties who are tax payers and permanent residents of Sri Lanka, Ms. Hapugoda recounted.
They were released on bail, but for depositors, it meant from the frying pan into the fire, she asserted. “We continue to suffer with neither our capital nor interest”.
“In the Rs. 13 billion list of assets submitted to the SC, Kotelawala had clearly included his shareholding at Seylan Bank and the Seylan Tower valued at Rs. 6 billion to be disposed of to settle depositors, but even this was not realized to grant us a degree of relief”, she said.
Ms. Hapugoda noted that despite a SC order on August 6, 2010 to transfer to the SPV 500,000 shares of Ceylinco Investments illegally acquired by a former senior Merchant Bank of Sri Lanka official, it has still not been done – almost two years since the judicial directive was made.
She said that depositors could lose all hope of recovering their savings in the event of the liquidation of GK as in terms of the law, priority will be given to first honoring the commitments towards accumulated government taxes and dues, EPF/ETF and gratuity of employees and the company’s creditors. “We will be the last in line to be considered”.
“We have sought an appointment with President Mahinda Rajapaksa to discuss these critical issues as GK depositors, some of whom had died, continue to go through agony”, she said
By: barnabas on April 29, 2012
at 2:25 am
tset
By: sally dias on April 29, 2012
at 4:26 pm
la la la la
By: dinal on May 3, 2012
at 3:40 pm
The appointment with President has not materialized and the two lady presidents walk to araliya abode was a fat reducing exercise . Now talking about 70% of depositors being below 2.5 million is a laugh with their now infamous repayment plan put to dustbin by CJ.
They were always trying to get the big black money sharks their money not the small time depositors money !!! This is a ruse to collect money from small time depositors .
By: dinal on May 3, 2012
at 4:43 pm
In a dramatic turn of events in the history of state banks in the country, the National Savings Bank (NSB) is embroiled in a scandal with the Finance Company (TFC), which was once devastated under the Ceylinco Group and now under resurrection. The scandal surrounded a 13% share purchase from TFC where a share of Rs.30 had been reportedly purchased at Rs.49.74 by the NSB, well informed sources disclosed to The Nation.
Following this disclosure President Mahinda Rajapaksa, who is also the Minister of Finance, stopped payment by ordering the Secretary to the Treasury Dr. P.B. Jayasundera to initiate a probe and call explanation from the chairman and the directors at NSB.
Legal experts commenting on this episode claimed the Companies Act of 2007 could be validated in actions that could be contemplated against the Board of Directors of the NSB in pursuing this probe as a state bank has dealt with a private company.
All efforts to contact the chairman and top officials of the NSB by The Nation proved futile yesterday (5). Meanwhile, Treasury Secretary, Dr. Jayasundera is reported to have already called explanations from the chairman and directors of the NSB, official sources confirmed.
TFC Chairman Preethi Jayawardena told The Nation that the deal meant 13% of TFC shares had been purchased from two of its directors – Dinal Wijemanne, CEO of Taprobane Securities and Raynor De Silva, ABC Radio Managing Director. “Both of them who enjoyed 5% of shares each had resigned from the TFC Board having sold their shares. But, despite being chairman I was not aware of such a deal to the last moment,” Jayawardena asserted.
Expressing surprise why the NSB was to pay a share premium of Rs.49.74 against the actual price of Rs.30, Jayawardena claimed had the deal been done with clear intentions, it would have been a plus point for both institutions.
Both Dinal Wijemanne and Raynor De Silva were not available for comment at the time this edition went to press.
By: barnabas on May 6, 2012
at 2:30 pm
A drop for you from the ocean of fraud sinking SL with the participation of Rajapakse–Cabraal, notorious swindlers
(Lanka-e-News-06.May.2012, 8.30PM) The Island newspaper of the Upali newspaper Co. belonging to Govt. Telecom Chairman and Govt. Finance Committee member Nimal Welgama reported yesterday, that the President Mahinda Rajapakse had instructed to revoke the illicit deal (ostensibly legal) that was transacted by the husband of the Chief Justice jointly with the Central Bank Governor in the Colombo stock exchange amidst relentless charges mounted by the people of the country, day in and day out.
This backdoor transaction took place with the direct involvement of National savings Bank Chairman Prasad Kariyawasam who is the husband of the chief justice of SL, Sriyani Bandaranaike .. The Lanka e news exposed this sordid transaction where selected shares of The Finance Co. were purchased at inflated prices from the shareholders who were trading on them, whereby a storm of controversy was triggered Island wide. This also led to certain sections with the Govt. and opposition, as well as the media to raise strong protests against the deal.
It is to be noted that the National savings Bank has still not made the payment due towards this illegal backstage transaction ( under the stock exchange laws , after the transaction is finalized , within three stock exchange open days of the transaction date , the relevant deal must be closed.). The brokers’ center says , the National savings Bank has allowed the transaction to get automatically cancelled without making the necessary payment . Hence , since the transaction has got automatically cancelled , the President’s request to revoke such a transaction is unwarranted and uncalled for.
Meanwhile , Sampath Bank which acted as the supervising Bank for this illicit deal had finished making payment to its parties, but , since the National savings Bank had not reimbursed them, the Sampath Bank is in a quandary, reports say.
UNP M P Dr. Harsha De Silva pointed out that the National savings Bank (NSB)by issuing a notice that it is purchasing the The Finance Co. shares at prices higher than those of the market , and it buying them at about 65% above the market price which costs rupees 08 million is a highly questionable issue. When the The Finance Co. shares are selling at Rs. 30/- in the market , why did the savings Bank pay Rs. 49.74 and buy it , is something most bizarre ,and on what justification ? , it is questioned.
In this illicit transaction which took place last Friday , the National savings bank has purchased 7,863,362 shares constituting 13.02 % ownership of the oldest Finance Co- ‘The Finance Co’. at Rs. 49.74 per share .
In the circumstances , the NSB Bank Chairman and the General Manager ought to furnish answers in this connection.
Meanwhile ,the SL security bonds and exchange Commission has begun special inquiries into this fraudulent transaction and is examining what action can be taken against CEO Dinal Wjemanna and Reno Silva of the Browns Group and the share index Institution that are responsible for this deal and gained maximum benefits, according to reports .
It is a well and widely known fact that Dinal Wijemanne is a close relative of Mallory E. Wijesinghe of the reputed Bartleet group , and during the past had earned a huge income from the stock exchange and share market.
Dinal had played a key role to bring in a relative of Mallik Cader , the former Director General of SL security bond and exchange commission as the replacement for Cader. Therefore, during the tenure of office of Cader , a number of partial decisions had been given in favor of Dinal’s Thebopan brokering Co., reports say. At the same time , when Cader was holding Director General office, he along with Dinal laid the foundation for a star class Hotel at Pasekudah, and it is the uncle of Cader who was doing the interior decoration , it is learnt. Now that the Hotel construction is over , many who know them have seen Cader with his family , along with Ajith Devasurendra and Dinal Wijemanne relaxing on the beach of the Hotel and enjoying themselves .
Malik Cader who had earned to the maximum while he was in the Govt. service had been engaged fully in diverse business activities after leaving the service, with Dinal . Along with the notoriously infamous businessman Anura Fernando , Ajith Devasundra and with the knowledge of the Central Bank Governor Ajith Cabraal , using Govt. funds they have dabbled in the share market transactions. Hereunder is a fraudulent transaction of SL’s Central Bank Governor the No. 1 in the bank in combination with SL’s No. 1 in frauds , Anura Fernando.
It is no secret how the Chairman of Laughfs Co. , a few months ago purchased the Laughs gas shares at the higher rate of Rs. 48/- using the EPF funds of the workers of the Co. To accomplish this illicit sordid deal , he used Anura Fernando to grease the palm (santhosam) of the SL Central Bank No. 1 , the Governor cum SL’s No.1 economic bungler, Ajith Cabraal.
Recently , the shares sold at the high price of Rs. 50/- by Wijemanne to the Savings Bank are shares of the Finance Co. whose majority of the shares belong truly to notorious Anura Fernando , the erstwhile Director of The Finance Co. Interestingly , Cabraal before he became the Central Bank Governor was associated with the Pyramid Organization , an ignominiously notorious Organization of swindlers. It was Anura Fernando who introduced Cabraal to the Pyramid Organization. Cabraal who got cheated after believing that he can secure gains , being an accountant by profession , soon after he became the Central Bank Governor saw to it that the special unit at the Central Bank relating to the Pyramid Organization is removed . So, Cabraal the fox took over the prey – the fowl in that manner.
From that point of time , the present Governor Cabraal had been deploying the funds of the State sector and the Central Bank in violation of the financial regulations with a view to collecting illicit commissions to augment his and the regime’s private incomes. A part of this income so acquired was handed over to another stock market dealer Nimal Perera who is also the Panasia Bank Chairman to be offered as a bribe to secure the Commonwealth games dubious deal, it is reported.
The orchestration to appoint Nimal Perera to the post of Panasia Bank Chairman who has made of the SL Security bonds and exchange Commission a joke is another big ludicrous scenario. The CEO of the Panasia Bank , Daya Mutukumarana once moved to get rid of Nimal Perera from the Bank over a swindle committed by the latter. Nimal Perera after inducing the then Minister of Samurdhi S B Dissanayake , transferred the samurdhi funds to the Bank , and began interfering with the Bank’s administration . Eventually he maneuvered to terminate the services of Daya Mutukumarana . Later joining hands with the infamous casino owner Dammika Perera took full control of the Panasia Bank.
In recent history , it is this Nimal Perera who had earned most in this share market business. Because of his fraudulent intentions and actions, interrogations were on for a long time in the security bonds and exchange Board. In order to evade these investigations against him , he had started teaching the Rajapakse sons Namal and Yoshitha on stock market investment through the stock broking Co.
Mahinda Rajapakse being the highest in the hierarchy of the land and the President of the country cum Finance Minister is absolutely accountable and answerable to all these monumental frauds and glaring financial irregularities occurring under his very nose , for all these swindlers and racketeers have been appointed by him.
We have only exposed just a drop in the ocean of frauds in which our motherland is drowning because of the frauds and scams orchestrated and carefully perpetrated with the direct and indirect participation of those occupying the highest rungs in the country’s hierarchy including the President , the Chief Justice and the Central Bank Governor .
It is therefore little wonder the Govt. is unable to arrest the skyrocketing cost of living , spiraling inflation and the ever plunging economy of the country despite ruthless taxation , tariff and price hikes even on essential goods and drugs imposed almost daily as a routine on the masses who are eating their hearts out in silent misery ,because we are now governed by far the most crooked Govt. ever to rule this country in the history of SL.
By A Special Reporter
By: moda putha on May 9, 2012
at 11:54 am
All sad and done it is a sad plight of the Depositors of the Golden Key and the Staff too who have been left high and dry, except for a few Staff members who have been able to hold Khavan and Lalith a ransom and get there Compensation.
Having come across this Website I have read all the comments and what has struck me is the truth that is revealed by “M. GONE” (probably this person could be identified as ‘MONEY GONE”) and what he has indicated is the GOSPEL TRUTH.
I have known very many people in the Ceylinco Group, including Nihal Peiris who lives in the Luxurious Lotus Grove complex down in Dehiwela, Padmini Karunanayake who lives in the Luxurious residence on isipatha Road, Colombo 5 and also own a residence at No. 9 Nandamithra Place, Kohuwela, Mala Sabratnam at Station Road, Colombo 4 and at some time or the other indicated that Ceylinco Chairman along with Nihal Peiris who is also a Signatory has an Account in Mauritius titled “Associated Global Investments” where all the Foreign Currency from their business oversea is transferred to this Account.
Mr. M. Gone your facts are correct and I do not see the reason why the Honoured Bench of the Supreme Court does not investigage information that is revealed on such a Forum as there could be an Iota of truth in such revelations, as people would be too scared to come out in the open with the truth.
From what I could gather and personally know is that there is also Accounts maintained in London under the name of “GK Banking Solutions” several accounts in Australia under the names of various property companies, and the Golden Key Company Australia Pty Limited which is still in operation and headed by Ajitha Ediriwira and guided by the very (in)famous Suramya Karunaratne, and the companies in Malaysia and Singapore.
If all these accounts had been frozen and the funds brought in to Sri Lanka the aggrieved Depositors could have been paid in full and the Lalith Kotelawala could have had peace of mind and lived happily ever after.
So Mr. M. Gone you have revealed the truth and it is high time that the Hon. Chief Justice shed all interference from the Government and acts independently and brings relief to the Aggrieved Depositors as the Hon. Chief Justice had indicated no sooner she took office that by January 2012 the Depositors will be paid a certain percentage.
Why has the case being transferred to the Commercial High Court??
Someone has commented as to why Mr. M. Gone does not go to Court, well probably he has lossed all he had and is in trauma to eke his daily living and has to depend on others…… so where could he find money to hire a Lawyer. It is the bounden duty of the learned Bench of the most respected Supreme Court to investigate further…… but what happens is they would ask the CID to report…….. the CID Chief would be oiled by the Lalith Kotelawala and his bunch of backlckers and the CID would report that nothing could be found…….. the ANSWER.
I could go on and on and on having known top persons at the Ceylinco Group and watched their live styles using other peoples money…… so it hgih time that relief is given to the Depositors.
So Mr. M. Gone what you have indicated is true and nothing but the truth.
NIHAL PEIRIS SHOULD BE ARRESTED AND INFORMATION OBTAINED ABOUT THE ACCOUNT IN LABUNAN, MAURITIUS AS HE WAS THE FINANCE DIRECTOR OF CEYLONCO CONSOLIDATED.
By: M.Y.O.B. BISI on May 12, 2012
at 7:41 pm
Bravo , At last we are getting focussed and coming to brass tacks , A new team has to get going on this leaving out the failures like Anusha Emmert , Dushanthi et al who are respected professionals who could negotiate and come to a settlement .
Even now its not to late !!
By: legal eagle on May 13, 2012
at 11:10 am
Not Only The Chairman Husband; Chief Justice Wife Must Also Resign!
By Uvindu Kurukulasuriya
Chief Justice Dr. Shirani Bandaranayake and Pradeep Kariyawasam
Chief Justice Dr. Shirani Bandaranayake and her husband National Savings Bank (NSB) Chairman Pradeep Kariyawasam are at the center of a scandal again.
When Justice Bandaranayake was appointed as the Chief Justice, I raised the serious conflict of interest issues relating to her. Within the Asian region, the sixth Conference of Chief Justices of Asia and the Pacific held in Beijing in August 1995 adopted the Statement of Principles on the Independence of the Judiciary. Sri Lanka was represented by the Supreme Court Judge P. R. P. Perera who voluntarily agreed to the Principles on behalf of the then Chief Justice G. P. S. De Silva. Principle 39 of the Beijing Statement says, “Inducements or benefits should not be offered to or accepted by judges if they affect, or might affect, the performance of their judicial functions.”
Under the title “Chief Justice or her husband must resign” I wrote; The Chief Justice must explain how her husband was appointed Chairman of Sri Lanka Insurance Corporation, and a member of the Board of Directors of Lanka Hospitals Corporation PLC. How was he also appointed Chairman of the National Savings Bank? Had he applied for the job? Was he interviewed? Who were the other applicants? Weren’t there any other qualified applicants other than her husband? She must also explain how these things are consistent with international standards concerning judicial independence. If she cannot, she or her husband must resign. After all, “Caesar’s wife must be above suspicion.”
Chief Justice and her husband
While Justice Shirani Bandaranayake sat on the Bench of Sri Lanka’s apex court, her husband Pradeep Kariyawasam was an unsuccessful man working in the marketing field. In June 2009 following a Supreme Court order to the Treasury Secretary to appoint a Board of Directors to the Sri Lanka Insurance Corporation (SLIC) after the government took it over, President Rajapaksa who is also the Minister of Finance, appointed Justice Shirani Bandaranayake’s husband Pradeep Kariyawasam to the new SLIC Board as its Chairman. Herein lies the rub.
The names proposed by President Rajapaksa for the new Board of Directors for SLIC received Supreme Court approval after the list was presented to Court by Deputy Solicitor General Sanjaya Rajaratnam on 26 June 2009 on behalf of the Treasury Secretary. But Kariyawasam’s good fortune did not end there. He was also appointed to the Lanka Hospitals Corporation PLC as a member of its Board of Directors along with Defence Secretary and Presidential sibling Gotabhaya Rajapaksa who was appointed Chairman.
But that is not all. On May 15, 2010 Pradeep Kariyawasam was also appointed Chairman of the National Savings Bank by President Rajapaksa. The NSB controls assets worth Sri Lankan Rupees 424,994,303,000/-.
Now under her husband’s chairmanship, the NSB has evolved a “Sophisticated bank robbery”; the questionable Rs. 390 million deal between the National Savings Bank and a group of investors of The Finance Company (TFC).
Sophisticated bank robbery under CJ’s husband
During an interview with Mirror Business, The Finance Company PLC (TFC) Chairman Preethi Jayawardena and TFC Director/Chief Executive Officer Kamal Yatawara reiterated that the transaction in question was strictly a private one between the owners of the shares and the NSB, thereby having no material impact on TFC or its depositors. According to them, this corrupt transaction is not even a transaction between two state run organizations. It is a private deal between two cronies. Good Governance and Minority rights activist K. C. Vignarajah told The Island Financial Review: “The deal was suspicious from the very start …The management of the NSB should be held accountable to the public, no matter how small the transaction may seem to them. Some had argued that the President cannot prevent the payments from being made on technical grounds, but if the deal was suspect there is nothing wrong with preventing those responsible from getting away with the loot, especially when it is public money”.
The Ceylon Chamber of Commerce issuing a statement called for an impartial inquiry and urged authorities to take action against any wrongdoers. “The Ceylon Chamber of Commerce (CCC) notes with concern the recent transaction of approximately 13 percent of The Finance Company PLC. The Chamber believes that ensuring integrity and transparency are vital to maintain investor confidence in the Colombo Stock Exchange (CSE) for the capital market to remain robust,” the Chamber observed.
Opposition lawmaker and leading economist Dr. Harsha De Silva said, “This transaction exposed only the tip of the iceberg. There is a mafia in the country’s Stock Exchange and this deal has exposed a few of them and we are not going to let go. We hope the Regulators find the courage to carry out an investigation and give a fair judgement. If they do this, it will have a positive impact on the Colombo Stock Exchange, the inflow of foreign investments and the overall development of the country”. Alluding to the deal as a ‘sophisticated bank robbery, Dr. Harsha De Silva said the country needed sophisticated law enforcement officers and regulators to tackle such fraud. Dr. De Silva called for the resignation of NSB Chairman Pradeep Kariyawasam and said authorities should be allowed to carry out an impartial inquiry and punish any offenders without fear and favour.
Now, I must say the resignation of NSB Chairman Pradeep Kariyawasam is not enough, his wife must also resign! How can any investigation be carried while his wife sits as the Chief Justice?
The government has already announced that it has appointed a committee to investigate the matter. At the end of the day any findings will go to the Supreme Court for a decision.
Nelum Gamage and her Husband
We do not need to go for India or to the west for best practices. Sri Lanka already has a good example. When the husband of the head of the Bribery Commission Nelum Gamage was allegedly involved in corruption, she resigned. She was a respected civil servant. When the then President D. B. Wijetunga had asked her to close the corruption investigation file related to the then General Manager of the Railway Department W. A. K. Silva, she put a note regarding the President’s request. She was a lady of integrity. After the Bribery Commission was established under President Chandrika Kumaratunga, Nelum Gamage was appointed as its first Chairperson. Unfortunately her husband was allegedly involved in corruption, so she resigned. We must ask Chief Justice Dr. Shirani Bandaranayake to follow Nelum Gamage’s example!Like all Chief Justices since President J. R. Jayewardene’s 1978 Constitution, Shirani Bandaranayake’s too was a direct appointment by the President. That then is not the point. What is however important is that none of the spouses of previous judges have accepted political appointments.
The Chief Justice is automatically the Chairperson of the Sri Lankan Judicial Service Commission. This means that, effectively, she is the boss. While much of the work is delegated to others, it is the Chairperson who is ultimately responsible for the “corporate culture” in the operations of any organization. This is how organizations operate on a psychological level. The leader sets the tone. The relationship between the Chief Justice of Sri Lanka and her spouse cannot be private. Not when that spouse holds key positions in government institutions that is a conflict of interest. A conflict of interest is also corruption. It is worthwhile quoting Dr. Colvin R. De Silva when he said, while participating in a no confidence motion against then Prime Minister Sirima Bandaranaike, “the service exacts from itself a higher standard because it recognizes that the state is entitled to demand that its servants shall not only be honest in fact but beyond the reach of suspicion of dishonesty”.
By: Mangala S on May 13, 2012
at 11:12 am
What is Caesar’s Wife Up To?
By Ravi Perera
The controversy concerning the recent purchase by the government owned National Savings Bank (NSB) of a large parcel of shares of The Finance Company (TFC), a struggling finance company, once again has laid before us the sorry state of affairs in our public as well as private institutions. On the face of it, a very large amount of public money has been invested by the NSB to purchase shares of the publicly quoted company at a much higher price than it is now sold on the Colombo Stock Market. Presently these shares are selling at about Rs. 30 in the market while the NSB has paid approximately Rs. 50 for a share!
It is argued by some that the financial wizards at the National Savings Bank discerned a hidden ‘value’ in some of the assets of the struggling finance company which according to their calculations is not reflected accurately in the books of the company. By buying into TFC even at a premium price of Rs. 50 per share they reckon that in the long run since the NSB is a State owned bank, it is natural that the people at large, will gain substantially.
These enthusiasts point out that in addition, ‘The Finance’ has a large network of branches all over the island which apparently gives the Bank an advantage in synergy. Although why the NSB which has a much more extensive network needs the synergy provided by this troubled finance company will be something that we amateurs in this world of high finance will find difficult to comprehend. We may however assume that these large banks are run by people who understand their business very well. They use words like arbitrage, franchise, value buying, market share etc., to explain these complex manoeuvers where the buyer pays much more than the market price to buy a share.
The distracters of the deal on the other hand are aghast at the cavalier as well as secretive manner in which it was done. They are saying that those involved on the side of the government bank were out of their depth and were absolute patsies when it came to this kind of deal making. Leave alone grasping the idea of synergies and arbitrage opportunities they say that that those on the bank’s side don’t know how to even spell such words!
The sellers of these shares are one or two well known and large scale investors in the small stock market of Colombo. Apparently, they themselves had bought these shares around Rs. 50. Naturally they would have been badly placed by the drop of the share value to Rs. 30. A buyer offering to buy their badly depressed shares at Rs. 50 would have been a bonus from financial heaven to the sellers.
No one will think of the large scale players of our stock market as babes in the wood. The general belief is that the Colombo Stock Market is largely manipulated. The usual reasons that affect share prices rarely operate here. In our market shares can be artificially boosted and similarly for no reason dumped, with small amounts of funds. All one needs is the know-how and a moral neutrality in such matters. There are very few professional investors, advisors or analysts in the country. Even the business pages of the newspapers only reproduce company briefings and statements which are given to the reader as financial analysis. This has created an ideal stage for cunning manipulators and greedy speculators. Making matters worse the political establishment is very much involved in the share market on the one hand as decision makers and on the other hand as buyers, sellers and players. In recent times the captive Employees’ Provident Fund had made investments in some public companies which in the opinion of experienced investors are hair-raisingly risky. In Sri Lanka’s byzantine public life bribery, insider dealing, political patronage and the stock market are so enmeshed that it seems without them the so-called market will wither away!
The assumption that normal regulatory organs of the government will provide the necessary background for integrity and transparency of the system is absolute nonsense in the local context. It is said that Caesar’s wife should be above suspicion. In Sri Lanka it is commonly believed that some of the regulators are themselves market players. Besides, the Central Bank, the CSE, Treasury and so on are so politicized that their regulatory pose is just a lubricant for what the politician wants to achieve. If a stock market manipulator can win over a political big wig, these so-called regulators will surely ensure the success of his scheme. These individuals play different roles in day light hours but in the night the share market manipulator, the politician and the bureaucrat feast at the same table.
Now, the persons who sold shares of The Finance Company to the National Savings Bank obviously did not think much of the future prospects of the company. Whatever else they maybe, no one will consider them fools. When they got this unbelievable offer from the NSB for their shares in TFC they seem to have jumped at it. It is said that one of the sellers was also part of the brokering set up. We do not know how this large deal originated. Did the offer come from the buyers or the sellers? Since the National Savings Bank is a State institute the people of this country should be able to demand absolute transparency in the transaction. According to some reports the bank had not even obtained the mandatory go-ahead from the Treasury for the transaction. Given the existing standards in the public service, we do not think this would have been too difficult to obtain for persons so well connected to the powers that be. Perhaps it was a pure oversight.
In most countries such controversial deals would end up in courts of law. Where would that take us here?
By: Mangala S on May 13, 2012
at 11:13 am
Committee seeks AG’s intervention to get back 500,000 ‘illegally acquired’ shares
Golden Key scam
May 12, 2012, 6:41 pm
By Suresh Perera
Amidst the controversial NSB-TFC share trading transaction, the Supreme Court appointed Committee of Chartered Accountants on Golden Key (GK), has written to the Attorney General’s department on the alleged failure of a one-time Chairman of a state-run bank to “transfer 500,000 shares of a Ceylinco company he had illegally acquired and reverse the millions of rupees involved in the deal”.
“We have sought the intervention of the AG’s department to have these shares transferred to the special purpose vehicle to repay GK depositors”, a senior official close to the Committee said last week.
He asserted that this official had acquired the lot for Rs. 5 million at Rs. 10 per share when the trading price at the time was Rs. 26/50. “We need to recover this money to meet depositors’ commitments”.
The shares were held by Ceylinco Investments Company Ltd., in The Finance Company.
“Yes, the Committee has written to us but we cannot offer any advice as it is a matter left to the Supreme Court to determine”, a high-ranking AG’s department official explained.
Although Court had made some orders, the hearing will be based on their merits, he noted. “All other issues have to take a back seat until Court finally disposes of these matters”.
There were objections and counter objections filed and what has happened has been dealt with, the official said. “The Committee is not expected to do anything now as a judicial order has to be made”.
He said that Court will finally decide whether the shares had been transferred and if not, what steps should be taken to deal with the situation.
“We have taken up the non-transfer of these shares with the Committee as well as Deputy Solicitor General Viraj Dayaratne”, says Ms. Dushanthi Hapugoda, president, All GKCC Depositors’ Association.
Depositors continue to suffer while valuable GK assets are either lying idle or being acquired by influential people, she charged. “This is grossly unfair”.
In hearing the GK Fundamental Rights (FR) application, the Supreme Court on March 3, 2011 noted that it perused a letter sent by this senior bank official informing the Central Bank Governor that he had transferred these shares to the bank and therefore is not vested with legal and beneficial ownership.
As the Court found this letter had not been filed for record, a directive was given directed that this be done by the Committee. The Court had, in terms of its order of 06/08/2010 cancelled the issue of shares to this official, but observed the suspended order does not include any reference to the ownership of the shares.
The Supreme Court at that time also directed that these shares be sold in accordance with the prices that prevail at the time the transaction takes place. It should be done through the Colombo Stock Exchange and the price should be above Rs. 26/50 and subject to the rules of the Securities and Exchange Commission and the law in Sri Lanka.
The proceeds of the sale should be transferred to the Golden Key special collection account. The sale is to be made only to the Merchant Bank of Sri Lanka Ltd., or the Bank of Ceylon or both, according to the Court order.
By: barnabas on May 13, 2012
at 1:37 pm
Any news on payment plans , liquidation and presidential intervention , General will be released on coming saturday , but we are still paupers thnx to Anusha and Dushanthi , the two brilliant presidents who really messed it up with their fraudulent repayment plan designed meet their selfish plans!!
Thanahaya Jayathi Soko , That Joker Marco is also getting no where
By: JLBK on May 17, 2012
at 12:54 pm
Will see on Sunday 20th at Dehiwala Jayasinghe Hall & see what they say
regading this matter.
By: Laksiri on May 18, 2012
at 7:01 pm
Ceylinco Insurance PAT Up 39%
Sunday Leader
Ceylinco Insurance recorded an enviable Rs.1129 million (Rs 1.1 billion) profit after tax for the year ended December 31, 2011.
By: barnabas on May 20, 2012
at 12:41 am
An affidavit has been given to the SUCKERS who went to the meeting after collecting Rs.500/- and affidavit begs from CJ to pay ONLY the people who send the affidavit and the people who lodge entry at the CID and not others who Anusha says are not interested about their money !!!
This is a joke as people who are interested about their money responded to the advertisement put by CENTRAL BANK send their affidavits to the CENTRAL Bank claiming their money about 02 years ago with documentary proof in prescribed form and already 02 lakhs has been paid.
This is a circus done by the two lady presidents two collect cash from poor ignorant people . They are no worse than that GOD fearing christian bastard Lalith Kotalawala !!!
By: yankee doodle on May 23, 2012
at 11:01 am
Yankee Man , you are correct . Other Bitch is getting ready for the same thing at SdeS this saturday. Dear Mutt GK depositors dont fall for this !!! Her price for the affidavit Rs. 750/- . Khavan is also coming for this meeting !!!Bravo
By: kondebadapu chhena on May 23, 2012
at 3:46 pm
‘ගෝල්ඩන් කී’ හි තැන්පත් කළ ලක්ෂ 305
නොලැබුණොත් ගිනි තියාගන්නවා
- ගනුදෙනුකරුවෙක් උපවාසයක් අරඹයි
කෑගල්ල – එම්. බී. පහළවත්ත, කොටියාකුඹුර – රම්යපාල
ගෝල්ඩන් කී සමාගමේ තැන්පත් කළ ලක්ෂ 305 මුදල නොලැබුණහොත් දරු පවුල සමග සිරුරට ගිනි තියාගෙන ජීවිත හානි කරගන්නවා යෑයි කියමින් රඹුක්කන පදිංචි හත්තොට රාළලාගේ සමන් ශාන්ත (48) මහතා කෑගල්ලේ පිහිටි එම සමාගමට අයත් ආයතනයක් ඉදිරිපිටදී ඊයේ (24 වැනිදා) උපවාසයක් ආරම්භ කළේය.
රඹුක්කන කිරිවන්දෙණිය ප්රදේශයේ පදිංචිකරුවකු වන සමන් ශාන්ත මහතා උපවාසය ආරම්භ කරමින් කියා සිටියේ තමා තැන්පත් කළ මුදල් හෝ කිසිම දෙයක් තමාට නොලැබුණු බවයි.
ඊයේ (24 වැනිදා) ආරම්භ කළ උපවාසයෙන් පසු දිවයිනේ ප්රධාන නගරවලට ද ගොස් උපවාස කර ඉන් ද පිළිසරණක් නොලැබුණහොත් කොළඹ හැව්ලොක් ටවුමේ ඇති ප්රධාන කාර්යාලය ඉදිරිපිටදී තමා සමග දරු පවුලම ගිනි තබාගෙන ජීවිත හානි කරගන්නා බවද සමන් ශාන්ත මහතා වැඩිදුරටත් කියා සිටියේය.
By: Marco Boy on May 25, 2012
at 4:36 pm
At least 800 disgruntled depositors of the failed Golden Key (GK) credit card scheme, in a dramatic and often emotional move on Monday, filed petitions in the Supreme Court urging the judiciary to help them as they are not in a position to present their case to any other court.
These depositors waited patiently in a long queue to file their motions as the court authorities had given permission for 10 depositors to enter, at a time. They appealed to the Supreme Court to continue their fundamental rights case, as the Chief Justice had earlier ordered that the case now before the Commercial High Court for the liquidation of GK be proceeded with and a liquidator would be appointed.
These depositors noted that they were in financial difficulties and they cannot afford to go to any other court to get back their deposits given to GK which crashed some years back, triggering a part collapse in finance companies.
(Bandula)
By: Marco Boy on May 28, 2012
at 2:17 pm
GKDA members seek redress in Supreme Court
Jayantha de Silva
The Golden Key Depositors’ Association members individually filed motions and affidavits in the Supreme Court seeking redress .
The petitioners are Roshan Harindra Fernando and Ishani Srimathi Fernando, in addition to several other petitioners. The respondents cited are the Central Bank, together with additional respondents.
The joinder petition states interalia:
The seventh petitioner Lalith Kotelawala in filing his bail application by way of an affidavit had agreed to dispose his assets and compensate the depositors.
However it remains a puzzle as to why he has not done so. Therefore Lalith Kotelawala has violated his bail conditions. The respondents’ bail bond should be revoked.
Although it is the responsibility of the Attorney General to inform the Supreme Court, no course of action in this direction has been initiated.
By: barnabas on May 29, 2012
at 1:35 pm