Golden Key Directors ordered to declare assets

Wasantha Ramanayake

The Supreme Court rejecting a statement of assets by Lalith Kotelawela ordered the Directors and the office bearers of the Golden Key Credit Card Company to declare their assets and that of the company to the Monetary Board of the Central Bank when the rights application filed by the two depositors was taken for hearing, yesterday.

The Court cautioned that if any declarations are found out to be false that would be treated as contempt of the Supreme Court.

The Court noted that the figures of the statement of assets of the Golden Key company by the seventh respondent Lalith Kotelawela could not be accepted. The statement had been addressed to the Attorney General. Attorney General Mohan Pieris PC tendered the statement to Court.

The Court noted that there was a serious discrepancy between the assets of the company and the deposited money. The Court among other things noted that the assets of the company was valued at Rs. 372 million whereas it had invested Rs. 400 million in a teak plantation project. The Court also pointed out that it failed to give a true picture of the assets and that the money had been siphoned. The Bench comprised Chief Justice Sarath N. Silva PC with Justice Ms. Shiranee Thilakawardane and Justice K. Sri Pavan.

The Attorney General gave an undertaking that the Monetary Board of the Central Bank would take expeditious steps in terms of the Section 10 of the Financial Services Act in the next few days.

He submitted that he could not submit a report explaining as to why investigations into the Golden Key Company by the Monetary Board was suddenly stopped in 2006, since there had been a delay in obtaining the Court order.

The Court on last occasion issued a stay order preventing the Golden Key Credit Card Company from selling or disposing any of its property or assets. The Court also issued an order preventing the company or its directors from operating or closing any foreign accounts held by the company. The petitioners, some of the 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 Kotelawela, Khavan Perera, Sicille Kotelawela, 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 allegedly involved in numerous illegal activities using the money of the depositors. They pointed out that the company had misappropriated around Rs. 26 billion of the depositors.

The petitioners stated that the failure of the Monetary Board to supervise and control the activities of the respondent company were in violation of their rights. M.A. Bastion appeared for the petitioners. Attorney General Mohan Pieris PC appeared for the Monetary Board and the Governor of the Central Bank.

Wijedasa Rajapaksha PC appeared for the Golden Key Credit Card Company, its Chairman Lalith Kotelawela and some of its Directors and the Ceylinco Consolidated Ltd. The hearing was put off for April 27.