Standard Newspapers frozen funds freed

Wasantha RAMANAYAKE

COLOMBO: Petitioners Standard Newspapers (Pvt) Ltd. and Standard Printers Pvt. Ltd now can operate their accounts, the Attorney General informed the Supreme Court when rights applications filed by four companies against the freezing of their accounts by the Finance Intelligence Unit (FIU) of the Central Bank were mentioned before the court yesterday.

Deputy Solicitor General (DSG) Buwaneka Aluvihare informed the court that the FIU did not seek to extend the freeze in connection with these two companies but with the other two namely Communications Business Equipment Pvt. Ltd. and CBE Securities Ltd. whose financial activities were further investigated on the suspicion of alleged dealings with the LTTE.

Accordingly the court terminated the two rights applications by the Standard Newspapers (Pvt) Ltd. and Standard Printers Pvt. The Court however directed the DSG to explore the possibility with the FIU of releasing money for the payments of the salaries.

The Bench comprised Chief Justice Sarath N. Silva PC and Justices Raja Fernando and Andrew Somawansa. Petitioners Standard Newspapers Pvt. Ltd., CBE Securities Private Ltd., the Communications Business Equipment Pvt. Ltd., and the Standard Printing Pvt. Ltd. in four separate applications cited the Finance Intelligence Unit of the Central Bank, its CEO George N. Fernando, Central Bank Governor Ajith Nivad Cabral and Attorney General as the respondents.

The petitioners stated that in terms of the directives of Monetary Intelligence Unit Chief Executive Officer George N. Fernando of the Central Bank the funds of the petitioners in four banks were illegally frozen without making any prior inquiry and following the formal procedure.

The petitioner stated that they could not carry out their business activities including the publishing of their two newspapers and were unable to pay the salaries of the employees.

They sought to quash the decision of the respondents suspend the accounts and to free the funds of the petitioners dated March 9.

The Communications Business Equipment Pvt. Ltd. also complained to the court of the suspension of its telecommunication services by the Telecommunication Regulatory Commission.

President’s Counsel Romesh de Silva instructed by G.G. Arulpragasam appeared for the petitioners.

The hearing was fixed for April 3.