SC orders sale of GK perishable items

Wasantha Ramanayake

The Supreme Court on Monday will decide on the names and the number of Charted Accountants to be appointed to the Golden Key Committee, once the Central Bank and the petitioners submitted the names of the persons to Court.

The Court also made an order to immediately sell perishable items belonging to the company and credit the proceedings to the dedicated bank account of the company in the Bank of Ceylon.

Senior State Counsel (SSC) Janak de Silva for the Central Bank (CB) submitted that although the Bank had contacted several persons, some were not willing to be on the committee. Petitioner's Counsel M.A. Bastiansz submitted that the petitioners too would suggest some names as committee members.

The Bench comprised Justice Shirani Thilakawardane, Justice K. Sri Pavan and Justice P.A. Rathnayake PC.

The SSC also tendered the court the second interim list of property list of the Golden Key Company.

Justice Thilakawardane observed that the Attorney General should make arrangements with Police to provide security to the Golden Key properties and only if there were any lapses the AG could complaint to Court. The Court made the observations when the SSC pointed out that the teak plantation belonging to the company in Puttalam needed security since it was being encroached and trees were being felled.

Justice Thilakawardane noted that the company directors could make representations to the committee regarding their assets once it was appointed. She made these observations when President's Counsel A.S.M. Perera on behalf of Company Director P. Renganathan submitted his client should be heard before his property could be seized.

The Supreme Court on the last occasion directed the Attorney General and the Central Bank 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 petitioners, depositors of the Golden Key company cited 17 respondents including the Monetary Board of the Central Bank, the Governor of the Central Bank, the Secretary to the Treasury, Golden Key Company, Lalith Kothalawale, Khavan Perera, Sicille Kothalawale, the Ceylinco Consolidated Pvt. Ltd. and the Attorney General.

The petitioners complained that the respondent company first stopped the payment of interest on deposits and then the depositors were not allowed to withdraw their deposits, without giving any reason.

They stated that they have learnt that the Company Directors had been involved in numerous illegal activities using depositors' money. They pointed out that the company had misappropriated around Rs. 26 billion of the depositors.

The petitioners stated that the Monetary Board's failure to supervise and control activities of the respondent company were in violation of their rights.

SSC Janak de Silva appeared for the Monetary Board, and the Central Bank Governor.

M.A. Bastiansz with Sudath Jayawardane appeared for the petitioners. Further hearing will resume on Monday.