Recent news on Lalith Kotelawala being summoned before PRECIFA, and the Bill Gates of Lanka arriving there on a Wheel chair, reminded me how thousands of depositors, victims of Golden Key 
scam surrounded his luxury Jaguar guarded by a few dozens of STF men at Mount Lavinia Chief Magistrate’s Courts premises when the first day’s hearing ended, compelling him to leave the place through a ‘secret’ outlet under the patronage of state authorities.
Addressing media on July 16, 2015, Finance Minister Ravi Karunanayake once said that the government would confirm the arrangements pertaining to the disbursement of Golden Key depositors by July 24. He added that the Cabinet had permitted a proposal based on the Cabinet memorandum to pay 41 percent of the funds of Golden Key depositors through the Central Bank and also that the earlier government was involved in a trick, delaying the payments to the depositors?
Though the Central Bank failed to submit, for a second consecutive date, the re-payment plan during the last Supreme Court hearing of the Fundamental Rights petition before a five- judge bench, on July 07; further hearing was fixed for August 4.
Income tax dodgers
Apart from the Income tax dodgers who deposited huge amounts ranging from 10 to 200 million that included a few Buddhist and Christian clergy, politicians, lawyers and sportsmen, it has brought untold misery and suffering to thousands who placed their trust on the business magnate. They deposited their hard-earned savings ranging from a mere 50,000 rupees to a couple of millions at Golden Key. Lalith Kotelawala, was known as the ‘entrepreneur par excellence’ and head of Ceylinco Consolidated, one of Sri Lanka’s oldest and largest business conglomerates.
A few days before the collapse, one of the brokers/representatives of the Pyramid Scam company covering our area called at my residence and offered an interest enhancement up to 24 percent for my deposit if I made an addititional 250,000/- within a couple of days creating restlessness in me in finding funds to meet the attractive offer.
My forty years of savings on EPF/ETF and Gratuity already dumped there by the ‘greedy-fool in me’, I approached a family member who obliged with part of it and I managed to collect the amount and planned to visit the GK office with money on the following day, when the news spread of a large crowd that had surrounded their Duplication Road HQ and were demanding their moneys back. I had a narrow shave, though 60 percent of my original deposit had vanished into thin air.
The first phase of payment of 41 percent up to Rs 1 million deposits was completed in April 2015. A discussion was held on Dec 21 under the patronage of President Maithripala Sirisena on the second phase to those who had deposited Rs.2 million to Rs.10 million. During the 100 Days Programme the President made a token payment to a selected 15 depositors. Earlier, each member of the Committee of Chartered Accountants appointed to work out details of disbursements to the depositors, was said to have been paid a monthly allowance of Rs 200,000/-.
Desperate depositors were once again offered a new payment plan by the CB. The proposed new plan was discussed at end February 2015 at a meeting chaired by CB Governor Arjuna Mahendran with a group of depositors and members of the new GK board including Dushyanthi Hapugoda. Mr. Mahendran stated that the regulator would step in to expedite the payment process.
At the meeting, the representatives of depositors fully endorsed the CB Governor’s plan and initiative implemented with the consent of the Supreme Court.He also stated that the CB will take over the management of the court-appointed GK company and all its subsidiaries and liquid assets following a comprehensive audit.
The previous government’s attitude
The previous government failed to get Mrs. Sicille Kotelawala, who is known to be living in safety in the UK deported through Interpol. The Interpol in reply to a media query stated that they have reliable information of her whereabouts. This has been detrimental to the interests of depositors and in ascertaining the missing billions that they mustered in deposits.
British foreign office issuing a statement in 2013 said that they are not pursuing the matter as the Sri Lankan Government has not requested for her extradition. CJ, Shirani Bandaranayake, in March 2012, ordered the GK case before Commercial High Courts (CHC). Lawyer Bastian, one of the counsels appearing for depositors, pleaded that this case was heard before the SC for the last three years and that an order was made to advertise three properties of the company for sale.
The counsel appearing for the other depositors’ association, Srikanth said for the past one and a half years not a cent has been paid back and pleaded for the transfer, after the sale of properties and part payment to depositors were made, as cases in the Commercial High Court drag on for a long time. CJ, Shirani Bandaranayake said half cannot be done here and the balance at the Commercial HC.
Office bearers join the fray
GK depositor, Alex Jayasinghe who attended the meeting told media, that they have full confidence in the new Central Bank Governor, adding that the previous board of directors of the court-appointed GK company had failed to fulfil their task and breached the trust bestowed upon them. He was referring to the board represented by several officers-bearers of their own society.
However, Dushyanthi Hapugoda, a director of the Court appointed GK Board, believed that they fulfilled the task assigned to them with commitment: countering the claim, the depositors spoke about various irregularities and misuse of GK money by the present management including huge payments made to directors exceeding the amount stipulated by the Supreme Court.
When it crashed in 2008, the failed credit card company had over 9,000 depositors and a deposit base of Rs. 26.5 billion, making it the second largest financial scam in the island’s history, the first being [the conveniently forgotten or being swept under the carpet] the CB Scam amounting to 63 Billion. GK had been paying a handsome interest rate of 16 to 40 per cent for selected depositors on a peculiar credit card. Nearly 100 depositors have died since the crash of which 26 by taking their own lives, being unable to support their kith and kin.
I remember going to Mount Lavinia courts being a victim of GK scam, on the first day when the GK case was heard six years ago and meeting one of the thousands of depositors gathered there. The fifty-eight-year old ‘Anton’, (name fictitious) who travelled 210 km from Passara, carrying with him two files marked ‘Golden Key Papers’; he sat on a concrete block under a huge tree in the Mt. Lavinia Courts premises. The date was January 9, 2009. On hearing the bad news, that the respondents were released with no settlement plan forthcoming in the foreseeable future, with shattered hopes, Anton broke down in despair.
LUXURY JAGUAR ‘Mobbed’
A group of protesters shouting anti- Kotalawala slogans ‘mobbed’ the luxury Jaguar that was parked in front of the entrance to the building which was under heavy guard by non-other than a dozen elite STF men (Implying that the influential business magnate received maximum protection at the command of some principal authority).
Former Chief Justice Dr. Shirani Bandaranayaka failed to take action against the disappearance of an investigative report on the Golden Key scam prepared by the Special Unit of the CB, according to office bearers of Golden Key Depositors’ Association. They revealed this on 11th December 2012, at a press conference.
The report kept with the Registrar of SC on the advice of former CJ, Sarath Silva, who declared that it contained valuable evidence, said President Dushanthi Hapugoda. She also said that report was submitted to the SC as evidence against Directors of Golden Key on March 17, 2009. According to her the report had highlighted how GK was collecting money going out of its way and against all legal provisions. Hapugoda added that in February, 2012, they raised the matter before Dr Shirani Bandaranayake, CJ, and that she admitted hearing about the loss of that report. “Matath Eka Aaranchi” [I have been made aware].
On being requested to issue summons on Registrar, Dr Bandaranayake CJ, replied that the Registrar is helpless. This was just one twist in their case.
Golden Key Credit depositor Prasanna Hennayaka said at the press conference, the Golden Key Credit case has been heard under several Chief Justices for three and a half years.
When the case was before Justice Shirani Thilakawardene, she arranged a repayment plan to pay a sum of Rs 200,000 to each depositor on a quarterly basis, which never saw the light of the day. From October 13, 2011, the case was taken up for hearing under CJ, Dr. Bandaranayake. The depositors did not receive any payment during this time.
All depositors of up to Rs. 2mn have been settled 41% of the amount. They say for the balance 59% each one would be allocated company shares of the revived Golden Key Co. Ltd. , a non-profit making white elephant?
