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By Chamitha Kuruppu

Several Non Bank Financial Institutions which do not have Central Bank sanction now want to operate as cooperative societies, Central Bank sources told the Daily News, yesterday.

These companies have consulted the Central Bank and discussed possibilities of operating as Cooperative Societies.

Since the process is still in the preliminary stage the Central Bank did not reveal the names of the companies.

Following the controversial Pramuka Bank incident the public have inquired them the Central Bank about many non-bank financial institutions questioning whether those institutions are legally accepted by the Central Bank.

In response to public inquiries the Central Bank recently published 27 names of companies which have no authority to accept deposits.

According to the Central Bank this list does not include all the names of the institutions that have no authority to accept deposits or any other investment similar to deposits from the public. The Central Bank is most likely to publish another list of names in the near future.

Meanwhile, some of the companies included in the list have taken steps to explain 'their side of the story' alleging that the Central Bank has no right to publish the list of names.

" But none of these companies has contacted the Central Bank," sources said.

Two of the companies included in the list, Okanda Investments Private Limited and Okanda Finance Private Limited alleged that this is the result of a multinational conspiracy to ruin local companies. Chairman of the Okanda Finance Okanda Silva said that the company is primarily engaged in development projects of the country such as Teak Plantation Projects, Hydro Power Projects and Housing projects.

The Chairman alleged that the Central Bank has been harassing the company since 1998 and even requested it to submit a large number of documents including very confidential documents in August 2002. Although the Director of Non Bank Financial Institutions Supervision Department of the central Bank has informed Okanda Finance that they have to take an adverse decision against the company, the Central Bank has failed to do so.

The company has sought legal assistance and filed a case against the Central Bank in the Court of Appeal on October 14,2002.

The Court of Appeal has issued a temporary Stay Order on the Central Bank.

" Great damage has been caused to us because of the irresponsible action of the central Bank and as such we have already referred this matter to our lawyers for suitable action," Silva said.

The company claims that they are not accepting deposits but only loans (Credit Investments).

The Central Bank refused to comment on the issue due to the case pending.

Meanwhile, the public have been instructed to inquire about similar institutions from the Central Bank.

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Copyright 2001 The Associated Newspapers of Ceylon Ltd.
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