Monday Dec 16, 2024
Monday Dec 16, 2024
Thursday, 2 February 2017 00:35 - - {{hitsCtrl.values.hits}}
By Charumini de Silva
The apparent battle between Ministers Ravi Karunanayake and Kabir Hashim has shifted to Lankaputhra Development Bank (LDB) with contentious opinions over the Chairmanship of the state bank.
Public Enterprise Development Ministry held by Hahsim has instructed the Finance Ministry to ‘hold’ the appointment of the new Chairman Ruwan Preethi Kumara Gallage.
Gallage was appointed to the position of the Chairman by the Finance Ministry on a letter dated 8 December 2016 in place of Lasantha Goonewardena, who was removed by the Central Bank on the grounds of being unfit and improper for the post.
In a letter dated 26 January 2017 the Public Enterprise Development Minister Kabir Hashim has instructed Finance Minister Ravi Karunanayake to hold the said appointment till further instructions are issued.
“I have been instructed by Prime Minister’s office to hold the said appointment till further instructions are issued,” Minister Hashim said in the letter insisting to take action to adhere to the request accordingly.
The copies of the letter had been forwarded to the Finance Ministry Secretary as well as to the Lankaputhra Development Bank Board Secretary.
However, when contacted by the Daily FT Lankaputhra Development Bank Chairman Ruwan Gallage asserted that he is not aware of the said letter.
According to sources, the Public Enterprise Development Ministry had verbally directed the bank’s Board Secretary on 25 January not to hold any Board Meetings.
Nevertheless, the Chairman told the Daily FT that he had held one Board Meeting on 26 January and another was supposed to be held on Tuesday (31 January), but due to the unavailability of two of the Directors; the meeting will now be rescheduled next week.
In the meantime, the former Chairman of the bank Lasantha Goonewardena had written a letter to the Public Enterprise Development Minister on 20 January 2017 highlighting the appointment made by the Finance Ministry Secretary that Ruwan Gallage as the Chairman ‘cannot be considered as valid’.
The copies of the said letter had been sent to Finance Minister Ravi Karunanayake, Public Enterprise Development Deputy Minister Eran Wickremeratne, Secretary to the President, Secretary to the Prime Minister, Secretary to the Ministry of Finance, Secretary to the Ministry of Public Enterprise Development, Department of Public Enterprise Development Director General, Lankaputhra Development Bank Company Secretary, Ruwan Gallage and Auditor General.
Goonewardena was appointed as a Director and Chairman of LDB by the Finance Ministry Secretary on 9 February 2015, but failed the crucial ‘fit and proper’ test according to the Bank Supervision Department of Central Bank. Thereby, the Central Bank refused to ratify Goonawardena’s appointment as chairman in a letter dated 24 March 2016, after he was found to be in violation of the Banking Act for corporate governance violations and violating confidentiality regulations under the Banking Act.
After much debate, the Supreme Court recently granted leave to proceed in the Fundamental Rights application filled by former Lankaputhra Development Bank Chairman Goonewardena against the Central Bank.
“As per the appointment I continued to be the Director and Chairman of LDB and since there was no indication to the contrary from Secretary Ministry of Finance for the same,” Goonewardena said in the letter addressed to Public Enterprise Development Minister Kabir Hashim.
When inquired from Gallage he said Goonewardena was not present in the last Board Meeting 926 January) and that he no longer involves in the bank’s administration work.
However LDB sources alleged that Goonewardena continues to influence the affairs of the Bank even though ousted and he is adamant in regaining the post.
