New laws to nab bogus finance companies

Uditha Kumarasinghe Irangika Range and Sandasen Marasinghe

KOTTE: Finance and State Revenue Minister Ranjith Siyambalapitiya told Parliament yesterday that new laws will be enacted soon to bring fraudulent financial institutions to book.

The Minister said existing laws were inadequate to raid and take action against various fraudulent financial institutions operating within the country.

The Central Bank through media, publish from time to time names of the recognised finance companies.

"This clearly reveals to the public what the fraudulent financial institutions are. However, the Central Bank has also accepted the necessity of formulating new laws to bring these fraudulent financial companies to book," the Minister said. Minister Siyambalapitiya was responding to a question raised by National Freedom Front MP Wimal Weerawansa. Weerawansa said an individual had swindled billions of rupees of the innocent people by using a bogus name called Sakvithi Ranasinghe. The MP questioned what steps will be taken by the Central Bank against this racketeer who has left the country. The Minister said he will reply the question after inquiring the matter from the Central Bank.

The Central Bank through the media always educate the public on the financial institutions accepted by it. If a complaint is received by the Central Bank with regard to any fraudulent financial institution, steps are taken to investigate the matter, he said.

Weerawansa said this racketeer called Sakvithi Ranasinghe through a bogus financial company has collected millions of rupees from innocent people.

"He has also published various newspaper advertisements to collect money from the people. After collecting millions of rupees from the people, this racketeer has left the country.

Complaints are flowing to Mirihana Police station against this racketeer. What did the Central Bank do until this racketeer left the country?," Weerawansa asked.

When an advertisement is published in a newspaper on a finance company it seems as an accepted financial institution.

It is important to mention whether that particular financial institution has been approved by the Central Bank or not when such a newspaper advertisement is published.

Therefore the Central Bank should have taken steps promptly, he said.

Speaker W.J.M. Lokubandara said the media also has a responsibility to look into these newspaper advertisements. It can always ask the Central Bank.

Information and Media Minister Anura Priyadharshana Yapa said media survives through newspaper advertisements.