Golden Key deposit payments:

Supreme Court directs accountants, auditors to form repayments committee

Wasantha Ramanayake

The Supreme Court yesterday directed the Attorney General (AG) and the Central Bank (CB)to appoint a committee comprising chartered accountants and auditors who would be ultimately responsible for the repayments of Golden Key deposits to its creditors.

The Court directed that the committee would be responsible for the examination of the interim property list of the Golden Key Credit Card company prepared by the CB and other information provided by various sources regarding its transactions and compilation of a list of immediately perishable and disposable, medium term and long term realizable assets.

The Court also directed to prepare a list of deposits and property, and prepare a scheme of payment on the basis of the lowest to the highest depositors.

The Court granted approval to the Director Banking Supervision to open a dedicated account in the Bank of Ceylon that would enable the Committee to credit the money realized from the sale of perishable items and deposits from credit card defaulters.

The Bench comprised Chief Justice Sarath N. Silva PC with Justice Shirani Thilakawardane and Justice P.A. Rathnayake PC.

The Court made the directions after hearing the submission of the Attorney General and counsel of the parties. Attorney General Mohan Pieris PC, tendered an interim list of assets of the Golden Key company, some of its past and present directors, including its Chairman Lalith Kotelawela and his wife Sicille Kotelawela.

However, the Attorney General submitted that out of 112 past and present directors only 36 persons had declared their assets to the Central Bank in terms of the Supreme Court order.

Attorney General Mohan Pieris submitted that Ceylinco Group Chairman Lalith Kotelawela had requested two weeks time to furnish full declaration of his assets. Citing an interim declaration tendered by Kothelawela the AG submitted that his immovable property included Hotel Ceysands, and several other properties in Colombo. Kotelawela who was in remand was not represented by any lawyer yesterday.

The AG further submitted that the an interim report had been prepared on the declarations made by its present and past directors and employees in terms of the court order.

The AG submitted that in terms of the declarations, assets belonged to the company, its subsidiary companies, present and past directors exceed Rs. six billion.

“The CB is in the process of verifying these declarations,” the AG submitted. However, he submitted that these were the minimum possible values and these had to be valued by the Chief Valuer.

“The commercial values of the assets could be doubled,” he said. He added that the names of the directors who provide false information will be notified to Court. He submitted that the CB was conducting investigations into the overseas investments of company.

Meanwhile Chief Justice Sarath N. Silva PC observed that the company had not been operating within the framework of the law.

“The AGMs of the company had not been held for years,” he said. He noted that the company had not been registered as a financial institution with the CB.

He added that Directors of the Golden Key company, whether they were nominal or functional should be liable.

He made the observations when President’s Counsel Denzil Gunaratne PC appearing on behalf two of the company directors Bandula Ranaweera and Wardhani Karunanayake submitted that they were only nominal directors of the company and that they had not illegally earned money from the company. M.A. Bastiansz with Sudath Jayawardane appeared for the petitioners.

Attorney General Mohan Pieris PC appeared for the Monetary Board, and the Central Bank Governor. The hearing was put off for May 15.