GK depositors losing confidence

A group of Golden Key depositors said the confidence they had on the Central Bank is waning because it had failed to fully execute its plans to repay all the troubled finance company depositors within the stipulated time-frame.

The repayment plan proposed by Finance Minister Ravi Karunanayake was to repay 41 per cent of the amount originally deposited in the Golden Key Credit Card Company Limited (GKCCC) depositors in four stages.

The depositors said they are clueless as to how the final payment was to be made even two months after the deadline expired.

The CB had informed the Supreme Courts on August 4, 2015 that the final installment to depositors with deposits of more than Rs.10 million, was to be completed by August 4, 2016.

The relevant authorities have informed the depositors as to what was happening.

The members of the Golden Key Depositors’ Association are known to have written to CBSL Governor Indrajith Coomaraswamy on September 27 highlighting situation and urging him to take immediate action. However, the letter copied to the Attorney General’s Department, the Finance Minister and Treasury Secretary R.H.S. Samaratunge is yet to be acknowledged.

Speaking to Mirror Business, Golden Key Depositors’ Association President Vasantha Goonaratne said the members were growing nervous that given the country’s revenue status, they understand it is possible for the payment to be further delayed or worse might remain unpaid.

“We understand that the reserves are tight. But we were promised and that too through the Supreme Court. Adding to our worry is the authorities keeping mum on the repayments. Not a word about the lapsed deadline or anything for that matter. Even our letters are not acknowledged,” a depositor said

He said the lack of any information by the authorities would only lead to the association taking “stern action” via the Supreme Court.

“If they require more time, they can tell us so. Ignoring is and keeping us in the dark is not the answer,” the depositor said.

When Mirror Business was unable to obtain a response from the Central Bank's Department of Supervision of Non-Banking Financial institutions.

Defunct GKCCC completed the repayments of depositors with deposits up to Rs.10 million. The final batch of cheques cleared by the auditors was posted on January 29. (Shabiya Ali Ahlam)