12 November 2016 12:02 am
By Yohan Perera
A new chairman will be appointed to state-owned Lankaputhra Development Bank shortly, Minister of Public Enterprise Development Kabir Hashim told Parliament yesterday.
Minister Hashim who was responding to a question raised by JVP MP Sunil Handunnetti in the House said the Monetary Board is expected to approve the nomination to the post shortly.
However he fell short of naming the person.
Responding to a supplementary question raised by Handunnetti as to whether the former Chairman of Lankaputhra Bank who was removed from the post recently had made illegal appointments, the Minister said appointments made by the former Chairman were not valid if they were illegal.
“If the Chairman had made appointments they were illegal as these had to be made by the Director General. The appointments made by the chairman were void if he has made such appointments,”
he said.
Responding to another question as to whether what action the government intends to take against the former Chairman, who had allegedly ordered to lend funds to various persons exceeding the fixed limits, he assured that action would be taken after proper investigations.
The Minister added that lendings exceeding limits have taken place even during the last regime. Further the minister said the non performing loans
ratio of the bank has come down this year.