Three more Directors surrender

Sarath MALALASEKERA

Three more directors of the Ceylinco Sri Ram Capital Management Private Company yesterday surrendered to the Colombo Fort Magistrate and Additional District Judge Gihan Pilapitiya. They are alleged to have failed to pay the depositors a sum of Rs. 7 billion.

Later the Directors Ajith Gunawardena, Nihal Perera and Shanaka Wijesinghe were released on cash bail in Rs. 50,000 and a bond of Rs. 500,000 with two sureties each. Earlier four directors were produced in connection with the same charges before Judge Pilapitiya and released on bail.

The Judge directed them to appear before the CID once a month on every last Sunday. He also directed them not to interfere with the prosecution witnesses and also to surrender their passports to court.

The CID commenced investigations into the alleged massive fraud on a directive by the Central Bank of Sri Lanka, to the Attorney General.

The CID investigations revealed that the three directors of the company have misappropriated the depositors' funds. They also had operated several other companies, said State Counsel Shaminda Wickramage. State Counsel Shaminda Wickremage objected to the suspects being released on bail and submitted that they have misappropriated a sum of Rs. 7 billion from 7,325 depositors. They have not taken any steps to settle the depositors money. The Company directors had not paid depositors even their interests, the State Counsel told Court.

The State Counsel in his lengthy submissions said that if the suspects released on bail might leave the country and the prosecution will not be able to file any charges against them. The Judge Pilapitiya inquired that the Central Bank at any stage had warned the public and the depositors about these companies who are misappropriating their funds.

The State Counsel said the CID commenced investigations on a directive by the Central Bank to the Attorney General. President's Counsel Rienzie Arasacularatne, Senior Defence Counsel Kuvera de Soysa who appeared for the three directors said that their clients will assist the CID in their investigations and will not leave the country. Moving for bail the Senior Defence Counsel submitted that their clients appeared before court not on notice, but seeing news items in the newspapers. They had already made arrangements to pay the depositors.

Attorneys Nalinda Indatissa, Prasanna Weeraratne, Asela Rakewa, Siraz Noordeen instructed by Mangala Seneviratne appeared for the three directors.

Granting bail for the three directors the Judge directed them to appear in Court on July 29.