Former SEC boss appointed Blue Diamonds Chairman

Former Securities and Exchange Commission Chairman Dr. Dayanath Jayasuriya has been appointed as Chairman cum Non-Executive Independent Director of the troubled Blue Diamonds Jewellery Worldwide Plc.

The appointment follows the Chinese controlling shareholder Xia Liqiang stepping down as Chairman but he will remain on the Blue Diamonds Board as Deputy Chairman cum Managing Director.

The company also announced the appointment of S. Prabaharan as an Executive Non-Independent Director. 

Dr. Jayasuriya PC is a Fellow of the International Compliance Association (UK). He was also former Chairman of Insurance Board of Sri Lanka and a Director of the Public Utilities Commission, the National Procurement Agency among others.

He is currently Chairman of Orient Finance Plc, EAP Films and Theatres Ltd., and EAP Broadcasting Company.

Prabaharan has over 20 years experience in sales and marketing in FMCH and pharmaceuticals and 10 years experience in managerial level and over three years experience as tourist hotel manager. He is the assistant to Blue Diamonds Managing Director.

Blue Diamonds has been subject to multiple actions by the regulator SEC in recent months. Following SEC directive Ernst & Young has completed a special purpose independent audit on Agreed upon Procedure (AUP) to ascertain the conduct of the business affairs of BLUE and very specifically into the utilisation of proceeds that were raised by way of a Rights Issue.

This report has revealed several irregularities which may point to possible misappropriation of public funds. Consequently SEC initiated further investigations into BLUE. The Company has sought time to submit a reply to the findings. 

In May SEC directed the suspended the transfer of the sale proceeds of the then BLUE Chairman’s 15 million shares transacted until further notice.