Eran exposes in P’ment ETI Group past shady deals

Thursday, 24 May 2018 01:08 - - {{hitsCtrl.values.hits}}

By Skandha Gunasekara

State Finance Minister Eran Wickramaratne yesterday in Parliament exposed some shady deals of the past of ETI Group whilst noting new investors will help depositors and revive the business.

In response to questions from the JVP, Wickramaratne said Blue Summit Capital Management Ltd., a Singaporean-based company, is set to take over ETI and Swarnamahal Financial Services Ltd., which has been bogged down by legal issues pertaining to irregularities in the financial transactions.

The Minister made this disclosure in response to a question raised by Chief Opposition Whip JVP MP Anura Kumara Dissanayake.

The Minister further revealed that Director of ETI and Swarnamahal Financial Services had transferred client deposits worth Rs. 36 billion to their own personal accounts.

ETI Finance had maintained two sets of books to woo more deposits whilst subsidiary Swarnamahal Jewellers had accepted public deposits contravening Central Bank regulations.

“Legal action will be taken against the Directors of ETI group under the provisions of the monitory laws regarding business activities carried out in contravention to the license given by the Central Bank,” the State Minister said.

At this point, the Chief Opposition Whip Anura Kumara Dissanayake called on the Government to take all necessary measures to protect those who invest in deposit monies in financial companies.

“This is not the first time such a financial fraud has occurred in this country with regard to private financial companies. Depositors of Pramuka Bank and those who deposited money in SakvithiMudalai’s company have suffered much and the Government should do something to prevent such tragedies in the future,” MP Dissanayake said.

Agreeing with the sentiments of MP Dissanayake, the State Minister said that Finance Minister Mangala Samaraweera, during a visit to the North, had uncovered scam where drought-affected persons were being duped by money lenders in to borrowing money, after which they would impose high interest rates.