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CB spotlight was on CIFL says Govt.

4 September 2013 05:23 pm - 0     - {{hitsCtrl.values.hits}}


The Central Bank ordered the Central Investment Finance Ltd. (CIFL) on numerous occasions to rectify its shortcomings in financial management, the government said in Parliament today.

Janatha Vimukthi Peramuna (JVP) MP Anura Kumara Dissanayake made a statement under the Standing Order 23/2 in this regard, and asked as to why the Central Bank had not taken steps to prevent the CIFL from going bankrupt, leaving its depositors in the lurch.

Chief Government Whip Dinesh Gunawardene who responded said the Central Bank had ordered the company to adhere to regulations and guidelines stipulated in this regard. After the comprehensive on- site examination conducted in November, last year, the Director Board of the company was asked to remove its chief executive officer   because he was unqualified for the post, he said.

He also said the Director Board had made irresponsible and reckless investments using people’s deposits.

“After the auditing is done, its findings will be submitted to the Central Bank.  Based on the comprehensive on-site examination,   information was provided to the Criminal Investigations Department (CID) to take action against the culprits,” he said.

The Central Bank vowed to take action under the provisions of the Finance Business Regulation Act once investigations were completed, with plans underway to restructure the company.

A complaint has been lodged with the CID against the Director Board responsible for the collapse of the company.  The passports of those who embezzled depositors’ money have also been impounded. (Kelum Bandara)

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