All party committee to decide

Published : 9:09 am  June 8, 2018 | No comments so far |  | 


 reads | 

By Yohan Perera

Government intends to set up a multi-party committee to decide on the steps to be taken against financial companies which had cheated its depositors, Minister of Finance Mangala Samaraweera told Parliament yesterday.

“We will set up a committee which comprises members from all political parties,” the Minister said in response to a request made by Chief Opposition Whip Anura Kumara Dissanayake during an adjournment debate in the House last afternoon where he questioned the steps government intends to take to help those who have deposited money in financial institutions that are de stabilized. .   

The Minister accepted that the country’s financial sector has been destabilized as a result of financial institutions going in for crisis though the economy in the country is stable as a whole.  

“Some officials of the Central Bank may be behind these crises in financial institutions but I am sure that the Central Bank’s current governor and the Deputy Governors are genuinely interested in resolving the issues pertaining to financial institutions and safeguarding the depositors,” he said.  

The Minister revealed that the Central Bank has uncovered details of 58 directors of some financial institutions that have been engaged in various frauds. “Some of them have demanded sexual bribes from depositors,” he said.  
Further the Minister said the government had already introduced “Sri Lanka Deposit and Liquidity Support Scheme”  to insure the deposits.  Mr. Dissanayake who moved an adjournment debate on fallen financial institutions said 75,000 families have been affected by destabilizing of financial institutions. “It is the innocent depositors who have been affected by the destabilizing of financial institutions while the owners of institutions have not been affected at all as they have purchased assets abroad and thus live comfortable lives. He said 4,000 depositors of Standard Finance Company Ltd have lost a total sum of Rs 2.9 billion, 4,092 depositors of CIFL had lost a sum of Rs 3.5 billion and 36,000 depositors of ETI had lost Rs 3.5 billion. Further he said the President of SANASA Bank Brach in Wattegedara had robbed Rs 600 million. “ There are SANASA branches all over the country but they are not governed by a mother organization as they act independently,” he said.