Central Bank’s failure on Golden Key comes to light

5 February 2013 09:36 pm - 11     - {{hitsCtrl.values.hits}}

A A A

In what appeared to be a startling revelation, the Central Bank had discontinued the activities of its Special Investigation Unit way back in 2006 after it examined the accounts of the Golden Key Company (GKC) and identified a major crisis in it -- three years before the company went bankrupt.

This had come to light during the proceedings of the Parliamentary Select Committee (PSC) that probed the impeachment charges against former Chief Justice Shirani Bandaranayake.  In her submission to the PSC, Justice Shiranee Tilakawardane said that if appropriate action had been taken at that time, the present plight of the depositors could have been averted.  Investigations had been carried out by the Monetary Board during the time of then Governor Sunil Mendis.  The discontinuance of the investigations had taken place only after he retired.

In response to a question by Leader of the House Nimal Siripala de Silva during the PSC session, Justice Tilakawardane had said, “The Special Investigation Unit of the Central Bank had gone into the accounts of Golden Key because there were many petitions that had been sent. When they had been sent, analyzing those, they found that there was a very big problem with the Golden Key Company-the GKC. Then, what happened was, there was a meeting. Mr. Mendis   was the then Governor of the Central Bank. Shortly after he left, there was a meeting that had been held on 24/11/2006. I must say it was almost a fate because there were so many files and I just pulled one and I found inside it, this record. It said that all the proceedings were culminated. The minute said, “the Monetary Board is informed of the above and is invited to approve a discontinuance of the examination commenced in respect of the Golden Key Credit Card Company under Section 11. That was in 2006, long before many more, thousands other people invested in that, things would have come to a halt. If that had happened at that time, things would have come to a halt and there would not have been this huge loss that took place.”

After listening to her remarks, the Leader of the House also remarked that the Central Bank had failed in its duty.

In her oral submissions before the Committee, she further said that it might have happened after a meeting between Lalith Kotelawala, the Chairman of Ceylinco Conglomerate, and the Central Bank.

She said, “That decision was taken by the Central Bank and the Monetary Board. Though ‘X’ or ‘Y’ takes it, it goes as the decision of the Monetary Board. Being lawyers, you understand that; it is called chain command responsibility. So, they discontinued it. After 2006, there were large numbers of investors. When that came up again, we had to take steps to immediately alleviate what was going on.”

These submissions of Justice Tilakawardane are available on pages 1513 and 1514 of Volume II of the PSC Report tabled in Parliament.   She gave evidence before the Committee regarding the charge of professional misconduct against the impeached Chief Justice, in hearing the case involving the Ceylinco group.  

UNP MP Lakshman Kiriella, who commented on the matter, said that he would raise the issue in Parliament very soon.

“Regarding the Golden Key case, the former Chief Justice is blamed. But the fault lies elsewhere. It is now clear who is responsible for the plight of those who deposited money after 2006. We will expose this,” he said. (Kelum Bandara)
See Kapruka's top selling online shopping categories such as Toys, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.

 

  Comments - 11

See Kapruka's top selling online shopping categories such as Toys, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.

 

 
  • Wasantha Wednesday, 06 February 2013 10:17 AM

    Now the time has come for the real depositors to fight against the CB officials from top to the bottom who took bribes.

    Ranjith Wednesday, 06 February 2013 01:10 AM

    Now it is my car my petrol.

    nicky karunarathna Wednesday, 06 February 2013 01:27 AM

    No point of finger pointing now. They, govt have to find answers switly for their debacle. And what's the point to know - who did what? Answers are simple: take all the assets under govt including all the wealth of the directors and its chairman and pay from the govt coffers to depositors immediately. A nominated govt corporation can run those assets profiatably for taxpayer.

    CITIZEN Thursday, 07 February 2013 10:35 AM

    According to Judge Shirani T, the blame for the disaster has been placed on the Central Bank. But, the PSC went public saying Judge Shirani T also gave evidence supporting the charged against the CJ. All this apart, the media reported a protest by the Depositors against the Central Bank yesterday. Are these the genuine depositors or those who ate Kiribath on the Parliament Road? Then, WHO ARE THE SO-CALLED GOLDEN KEY DEPOSITORS WHO DANCED? WHO LIT CRACKERS AND WHO ATE KIRIBATH ON THE WAY TO PARLIAMENT??????

    parakj Wednesday, 06 February 2013 02:25 AM

    X-Files

    MagodisThuma Wednesday, 06 February 2013 02:24 AM

    Law is only used against Sakvithi.

    GC Wednesday, 06 February 2013 06:50 AM

    While I sympathise with you, it is necessary to find the culprits if our country is to progress with transparency in its activities and justice for all. Not identifying those responsible, for whatever reason, will encourage more people to misbehave or make wrong decisions in the future with the hope and belief that justice will not catch up with them.
    The news article does not say who replaced Mr Mendis as the Governor. I think it was said that the Unit was closed during investigations on a pyramid scheme.

    Richardson Wednesday, 06 February 2013 07:00 AM

    The donkey who is opposing this should be fed with cow dung.

    Jehan Wednesday, 06 February 2013 07:03 AM

    Can it be possible that there is another List of Depositors of VIP's and Prominent personalities, other than the one that was printed in the Media, seems that there is some Information not being disclosed for some reason or the other, why did they take such a long time to come out with this, the Truth will come out some day. the way it is, it seems that the genuine investors have really suffered for this cover up, if this story is true.

    Roshan Wednesday, 06 February 2013 07:05 AM

    Sakvithi is charged for bigamy, not for financial fraud.

    Mr Retort Wednesday, 06 February 2013 07:05 AM

    Should depositors prepare kiri bath again. Where have they gone now


Add comment

Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

Reply To:

Name - Reply Comment




“I don’t think Sri Lankans can be realistically ruled by force” -Ahimsa Wickrematunge

Twelve years after the assassination of Lasantha Wickrematunge, the founding

Decisions to be made in Sri Lanka’s hunt for the COVID-19 Vaccine

Around the world, governments are gearing up to roll out nationwide immunizat

“I am the Godfather of Russian tourists” - Udayanga Weeratunga

Former Sri Lankan Ambassador to Russia Udayanga Weeratunga is back in the sce

Sri Lankan migrant workers still in limbo

Sri Lanka’s migrant workers are a significant part of our economy, with the

See Kapruka's top selling online shopping categories such as Toys, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.