Govt intervenes again to help GKCC depositors

EDITORIAL | BUSINESS

(February 03, Colombo, Sri Lanka Guardian) We are compelled to comment on the matter of the Golden Key Credit Company Depositors matter again as we receive a large number of communications from the public for taking interest in the plight of the smaller depositors. We are informed in a recent meeting President Mahinda Rajapakse, Secretary Lalith Weeratunga, Governor/CBSL Ajit Nivard Cabraal, AG Mohan Peiris and other officials they have discussed the latest

Proposals sent by Khavan Perera, former Deputy Chairman of GKCCC where he is reported to have assured a payments programme as follows :-

- Interest at 6% to be paid on the deposits held from December 200 to the date of final settlement

- 30% of deposits will be settled in 2 instalments this year viz. June and December

- The balance 70% will be settled within 3 years from next year

Those who contact us say they are prepared to settle for this arrangement in the absence of anything better. However, they still continue to have apprehensions interested parties - with powerful political backing – are still trying to buy the valuable GKCCC assets stealthily at highly undervalued prices. Additionally, they fear GKCCC management also might confuse issues coming out with different and subtle formulaes of settlement to different officials. One such fear is the proposal from

Khavan Perera a few months ago all outstanding depositors will be debited amounts drawn by them as Interst so far. If this unfair step is taken many depositors will end up being debtors to the company. In the circumstances, GKCCC depositors

plead with His Ecellency (1) to get GKCCC to confirm the latest formulae, outlined above, as the final - in writing (2) All outstanding deposits from December 2008 to be credited with annual interest of 6% until the date of final settlement. Depositors point out they have already taken a substantial cut in accepting 6% interest whereas the agreed rate has been between 15 to 20% (3) The present formulae accepted by depositors to be formally brought to the notice of the Supreme Court for necessary instructions (4) In view of the dire financial difficulties they are in, the payment of

Rs.200,000 the Supreme Court ordered to be paid a few months ago be released soon considering the next payment is due only in June 2011.

Sri Lanka Guardian usually does not get involved in matters of a pecuniary nature such as this. We, however, are personally aware many families that were considered prosperous only 2 years ago today are virtually in the streets, some commiited suicide, some families divided, some children denied schooling and many of them even finding it difficult to feed their families and children. We hope the President and the officials concerned will bring the required relief to these people soon.