Friday, 17 January 2014 00:07
UNP MP and the party’s chief spokesman on the economy Dr. Harsha de Silva yesterday fired a fresh poser to the Central Bank ahead of a planned unveiling of a Master Plan for financial sector consolidation.
“There is a lot of talk about mergers in the NBFI sector these days, but so far there has been absolute silence on an important question I raised in Parliament a month ago during the Finance Ministry Budget. That is why the Central Bank allowed a particular finance company, now technically bankrupt with thousands of depositors unable to get their money back, to continue to advertise and accept public deposits and also why the SEC allowed an IPO just two months after the Central Bank’s NBFI supervision department called it a ‘Ponzi scheme’ upon an onsite investigation,” the statement by Dr. de Silva said.
“Quite incredibly, violations of the law and regulations by this widely-advertised finance company ran in to more than two dozen pages. These included doctoring of accounts, falsifying transactions, fraudulent activity by directors and even the disgraceful act of directors withdrawing funds from the company when it was unable to meet depositor claims. The public are awaiting answers from the Central Bank and the SEC,” added Dr. de Silva.