GKCC depositors still left in the lurch

by I.S. Senguttuvan

(May 30, Colombo, Sri Lanka Guardian) The year 2009 bears much significance to the 7,000 plus GKCC depositors as it is to the rest of the country “liberated” in May of that year. While Prabakaran was inflicting his own dosage on his own people and the rest of the country, Lalith Kotelawala, inebriated with the self-inflicted belief he is yet another Avatar come to serve the country, was all set to destroy the lives of over 7,000 well-do-do families with his fanatical dream of turning the entire Colombo city into a Ceylinco Fantasy Land. Within a few weeks since 1/1/2009, school-going children from comfortable families in Colombo, Kandy, Galle and many other places had their educational careers shattered. Tens of thousands of people who lived an above-average lifestyle were rendered paupers by this misguided super-rich man of supposed to be noble birth. His wife, who paid herself over Rs.2 million a month for many years, remains outside the grasp of Interpol since she took flight This once respected body - Interpol - today has lost much of its credibility in failing to locate a woman widely believed to be in a Far Eastern city – under the very nose of the police in that country. Money certainly can do wonders even in hiding influential crooks.

The Sri Lanka Guardian and several other sections of the media have carried a campaign to help the depositors. The Supreme Court has shown concern , as has the President and the Governor of the Central Bank. It is understood last month a further (2nd?) advance of Rs.100,000 was paid to most of the depositors. These folk were assured by the Courts the payment will be Rs.200,000 to be paid mid-2011. Some of them have told the SLG they do not want to be called ungrateful but wish to painfully point out their families continue to be in dire straits. It is also understood the Depositors associations continue to battle on behalf of their members and have secured a concession of an assurance from Mr. Kavan Perera – former Deputy Chairman of GKCCC – that all depositors will be paid Annual Interest also at 6% If this accumulated interest is also paid to the depositors - calculated from December 2008 todate - this will go a long way to ease their anguish and the extreme difficult circumstances they are placed in.

There is still no public announcement of the status of the valuable GKCCC properties

the Supreme Court ordered to be sold at the best prices available in the market.

Depositors continue to fear some of the more valuable assets may have already been sold at considerably under-valued prices to favourites of the regime. This is why the Depositors call for a Statement from the government. The original value of the assets - said to be in excess of Rs.28 billion - was reported to be sufficient to meet the capital and interest of all depositors. The Committee that was set to protect the interest of the depositors seems to have lost their confidence and so that “ Special Vehicle” of a company to be formed to engage into trading to save depositors’ welfare. Since there are so many grey areas and alleged sinister activities going on, it is best the Central Bank issue a statement as to the actual affairs at the moment. The sooner this is done this will re-assure the depositors as well as help to maintain the government’s credibility. This is a matter of much public interest and the greatest measure of transparency and accountability is required here as a matter of urgency.