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PCoI: BoC waived off Rs.168mn from interest of Mihin’s loans

2018-08-10 07:16:50
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The Bank of Ceylon (BoC) had waived off Rs.168 million from the interest of the Overdrafts (ODs) and loans amounting to Rs.173 million borrowed by Mihin Lanka (Pvt) Limited from 2007 to 2009, BoC Relationship Manager Prageeth Lasantha Balasuriya told the Presidential Commission of Inquiry (PCoI) on alleged irregularities at SriLankan Airlines, SriLankan Catering and Mihin Lanka yesterday.

He informed the Commission that the Government had obtained a Loan amounting to Rs.1.381 billion in March, 2009 to settle the ODs and loans borrowed by Mihin Lanka during that period.

During his testimony it was also revealed that Mihin Lanka (Pvt) Limited had obtained several ODs and loans from 2007 to 2009 and it was notified that most of the borrowings had taken place without a guarantee.

He informed the Commission during the period from 2007 and 2009, Gotabaya Rajapaksa was the Chairman of Mihin Lanka (Pvt) Limited and requests were made by the then Board of Directors of Mihin stating that the company needed to improve their working capital.

However, he informed the Commission, the BoC had not considered the waived off interest amount as a loss because it would be a bigger loss if the bank had kept these loans and ODs for a further period.

He also informed the Commission that a short term loan obtained by the present board of Directors of Mihin Lanka in November, 2016 amounting to USD 2.5 million was also given an extension to complete the loan till March, 2018 but the Government Treasury as the loan guarantee had so far not settled the amount.

He further informed the Commission that another loan obtained by the present Board of Directors of Mihin Lanka (Pvt) limited in 2016 amounting to Rs.1.6 billion was also extended till March 2019 and the Bank had sent the claims to the Mihin Lanka Liquidator. (Yoshitha Perera)


  Comments - 13

  • BuffaloaCitizen Friday, 10 August 2018 08:51

    I would not be surprised, that Sri Lanka is the only country in the world that has abused public money to such levels.

    Reply : 0       56

    ND Friday, 10 August 2018 16:15

    Due to uneducated and corrupt leaders governing the country! Why do people vote for them???

    Reply : 0       18

    Lord Wolfstein Friday, 10 August 2018 10:01

    The credits between 2007 and 2009 were given with the guarantee that bankers who were responsible for the granting of loans have not to face white vans.

    Reply : 0       43

    Guy Friday, 10 August 2018 11:29

    This is the person who is trying to be presidentGod please save us.

    Reply : 0       22

    Ben Friday, 10 August 2018 11:32

    We are paid the lowest interest rates and the banks are millions and also able write off debts of blundeering public servents.Arnt there any people with some logic in the brains.This Mhinair cannot be writen off , The former President must pay for this Why cannot the givernment ask people about this.Or else the Present President must pay for this.

    Reply : 0       18

    Nihal Friday, 10 August 2018 13:19

    Arrest all these cowards immediately before they vanish from island imprisoned them act faster

    Reply : 0       14

    Ceylon Friday, 10 August 2018 13:20

    Not only air lines but all other government run businessess alsi same or wirse.thats why governments are running bussiness,its the main multy billion robery opportunities.using government propertites and stealing.politicians are stealing and peoole pay.

    Reply : 0       14

    Dhaya Friday, 10 August 2018 13:30

    "Paradise Island like no other". Where does the accountability lies and will there be anybody taking responsibility. You politician guys, you are not playing with your savings, its is our hard earned tax money. Inland revenue and the government squeezes the poor person with taxes and give to the governments.to waste. Joke is that still the click wants to come to power to earn more their generations and cover up. We citizen continue to pay taxes and the government and ministers enjoy. Poor us.

    Reply : 0       10

    Rohan Friday, 10 August 2018 14:57

    This country always had leaders who think government has enough money to cover any expenses that they impose on. Looking back on who those leaders were, most of them have no formal education or zero knowledge of economics and finance education. Current issue is how can we stop this kind of leaders ruling the country in the future?

    Reply : 0       8

    Nihal Friday, 10 August 2018 15:38

    Bring all Wrong doers bring immediately to LAW and prosecute all of them without delay Now they start to leave the country

    Reply : 0       9

    Neophyte_008 Friday, 10 August 2018 16:51

    Rs.168 million waived off?? what rubbish.. wait and see.. they will try and earn this through the money they lend to the common man like you and me..

    Reply : 0       7

    athula Friday, 10 August 2018 17:13

    the man who was fine 1000 rupees by court is responsible for all these mishap.

    Reply : 0       4

    wilkie Friday, 10 August 2018 17:51

    In 2009 BOC waived Rs168 million according to the data. Such waiver is unethical and impact good borrowers adversely. It also encourages habitual defaulters as they will think they too can get waivers of interest accrued on their loans.

    Reply : 0       7

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