Several big companies have defrauded local banks. Generally the banks go after the small companies. Not the big companies. Despite shareholders and Directors writing to the CBSL no action is taken. Conflict of Interest galore but the fit and proper test is totally ignored by CBSL.
Several banks have ignored governance rules when appointing directors. For example Daya Gamage, Arjun Aloysius -WM Mendis have been given Billions nothing has been done against the officials. We have highlighted the bad lending at HNB to a big shareholder. Amal Cabral is a director of HNB. He heads the debt recovery committee according Union sources of Hatton National Bank.
We understand CIC has defaulted to the tune of 700 million the bank. The board
has decided to write off a loss of 700 million and acquire a defunct assets. Cabral is a Director or Chairman of a CIC subsidiary. The Chairperson is a Director of Sunshine Holdings. Amal Cabral is the Chairman of Sunshine holdings.
We understand a CIC employee is a Director of the Bank. What a web of connections .What is CBSL doing or investigating these connections. Public
deposits are at risk. What is SEC doing? No compliance? Another case in point is MTD walkers.
Then Board and some employees misrepresented the true situation of the company and acted like confidence tricksters, giving newspaper interviews etc only to end up as conmen. Violated all SEC and CBSL rules and cheated investors, the public and the banks PEOPLES BANK default of Rs 10 Billion ,should be treated as criminal as its public funds.A proper investigation must be done to ascertain whether cash cheques were withdrawn, who approved them? The chairman?
The CFO ? The accountant ? Who cashed those cheques if so? Who did they give the cash to?
One must study the board minutes to see the depth of involvement and who is responsible and whether there are any explanations to what happened to the money. In 2019 News 1st in an exclusive exposé on a conflict of interest involving the Chairman, who served as the Director of Peoples Bank and as the Chairman of MTD Walkers PLC has now uncovered yet another irregular business dealings.
The People’s Bank granted MTD Walkers PLC various types of borrowings at times amounting to Rs 10 billion. These borrowings were granted without sufficient and easily realisable assets.
Without proper securities in place, the bank will be unable to recover the monies owed to it. The Credit was given by Aruni Goonthileke now Chairman of HNB, unions say criminal charges are to be put against her soon. Whilst there were significant disclosures by News 1st in the past regarding various malpractices involving the state banks and MTD Walkers PLC, the authorities are yet to initiate any legal action.
The Colombo Stock Exchange (CSE) has placed MTD Walkers PLC (KAPI.N0000) on a watch list.The company’s financial records show a staggering Rs 18 billion debt to many local banks. Of the Rs 18 billion, Rs 4 billion is owed to state banks on top of other borrowing facilities already granted to MTD Walkers PLC.The SEC has ordered the MTD the board CEO, CFO and all management personnel to desist in any manner from destroying, concealing, altering, removing, amending or cause the destruction, concealment, alteration, amendment or removal of any information that is in the records or books maintained by the Company. SEC further imposed a fine of Rs.36.3 million on the MTD directors for breach of listing rules violating rule no.6 of the Act. “The Securities and Exchange Commission (SEC) hired a local
audit firm to get to the bottom of MTD accounts.
The auditors will advise future course of action against MTD Walkers taking note on the debentures issued, the non-submission of the Annual Reports for the financial years ended 2018/2019, interim financial statements after 30 June 2019 and on the complaints received alleging that the assets of MTD Walkers were being sold and funds being siphoned out without proper internal controls. Despite all these allegations the Central Bank has done nothing other than being a silent bystander. (https://www.dailymirror.lk/business-news/Peoples-Bank-acquires-Arjun-Aloysius-owned-W-M-Mendis-Co-s-Aluthgamadistillery/273-235304)
Adolf
