Travesty of justice

From Ceylon Today

By Lakshman I. Keerthisinghe - (LLB, LLM, M Phil, Attorney-at-Law)

It was reported that the deposed Chairman of the Golden Key Credit Card Company Lalith Kotelawala appeared on ITN recently and blamed the previous Rajapaksa regime of plundering his wealth, including the Hyatt Hotel thereby preventing the repayments due to the poor depositors of the GKCC. From Kotelawala's remarks in the interview with ITN it becomes crystal clear that he will not help in making any repayments whatsoever.

In a report published in the Daily FT on 8 February 2013, Dharisha Bastians wrote: "A Central Bank investigation into Golden Key that may have led to a suspension of the company's financial activities as far back as 2006 was buried by the Bank's Governor Ajith Nivaard Cabral soon after he assumed office, the main Opposition United National Party (UNP) charged at that time. UNP Senior Vice President Lakshman Kiriella said Supreme Court Justice Shiranee Tilakawardane had revealed details of an investigation by the Central Bank's Special Investigations Unit in her evidence before the Parliamentary Select Committee (PSC) that was probing the impeachment charges against Chief Justice Shirani Bandaranayake on 7 December.

The investigation had been conducted during the tenure of Former Central Bank Governor Sunil Mendis. "According to Justice Tilakawardane's testimony, the investigation was discontinued after Mendis retired and the new Governor took office," Kiriella told a media briefing some time before the present government took office and that more than 50 per cent of Golden Key depositors invested with the company after 2005. "All these people could have been spared this loss if the Central Bank had performed its duty and alerted the public and suspended their operation," Kiriella charged. He said Justice Tilakawardane's testimony indicated that the investigation may have stopped after a meeting between Central Bank officials and Former Ceylinco Chairman Lalith Kotalawela
Central Bank
The Central Bank had a mandate to supervise financial institutions and suspend the operations of those that were found to be unsound, Kiriella said, adding that it was "a clear dereliction of duty" by the supervisory institution. According to the UNP MP, the evidence at the PSC was sufficient for Golden Key depositors to file legal action against the Central Bank for negligence. "Finally there is concrete proof. There is no point in the Government directing the blame and the depositors' wrath elsewhere now," he charged. The UNP MP also distributed copies of Justice Tilakawardane's testimony before the PSC as recorded on pages 1513-1514 of Volume 2 of the PSC report. He said that based on the evidence given by the Supreme Court judge, the Golden Key depositors could now squarely lay the blame at the government's feet.

In this connection it must be noted that the Supreme Court (SC) of Sri Lanka in its order of 23.03.2009 granting leave to proceed in the SC applications filed by some depositors of the Golden Key Credit Card Company stated thus: 'On a perusal of the file... it was revealed that the folio ... containing report of the Head of the Special Investigation Unit (SIU) of the Central Bank which had considered the very matter raised by Counsel for the petitioners ... has stated as follows: 'In view of the above facts the examiners are of the view that the Golden Key Credit Card Company Limited carries on a finance business in contravention of the provisions of the Finance Act No.78 of 1988'.

The files that have been produced do not indicate with any clarity the action that has been taken thereafter. However, there is a report to the Monetary Board dated 24.11.2006 which culminates as follows: 'The Monetary Board is informed of the above and is invited to approve a discontinuance of the examination commenced in respect of the Golden Key Credit Card Company under Section 11 of the Finance Companies Act'. The Supreme Court further held that: 'This Report does not give any reason for disregarding the findings in the Report of the Special Investigation Unit but refers to certain discussions had with the Chairman of the Ceylinco Group. It appears that the subsequent course of action has resulted entirely on the basis of these discussions had with the head of the very institution which was being investigated.

Arjuna Mahendran
Even at this late stage if present President Maithripala Sirisena as the Head of State, Ravi Karunanayake as Minister of Finance and Arjuna Mahendran as the new Governor of the Central Bank who is presently on leave should admit the failure of the Central Bank and intervene to grant solace to the depositors it would be a blessing as this would avoid the curse of the Golden Key falling upon others as it did on the fallen Chief Justices of Sri Lanka, the previous Rajapaksa regime and the previous Governor Cabraal. The present Chief Justice K. Sripavan is heading the bench that is presently hearing this matter. The Supreme Court has reversed its earlier orders and held that CIESOT Private Limited is a legally established trust for the Ceylinco employees. Thus the Golden Key depositors were effectively deprived of obtaining repayment through the funds held by that Company.

It is a travesty of justice that Lalith Kotelawala and the other Directors of GKCC including Cecilia Kotelawala are leading comfortable lives, having sufficient funds to obtain expensive legal and security services for themselves while the depositors who entrusted their life long savings with these fraudsters have been left in the lurch. The Golden Key scam is described as the largest financial fraud committed in Asia and yet the justice system in Sri Lanka has miserably failed to mete out justice to these fraudsters and to recompense the impoverished depositors. It is ridiculous that the criminal justice system in Sri Lanka which delivers speedy justice to a poor man who robs a coconut to feed his starving children by sending him to prison has failed to mete out justice to the rich and powerful. Some persons appear to be more equal before the law than others in this country resulting in our people losing their confidence in the justice system of our motherland, which system appears to need a thorough reformation without further delay.

As UNP MP Lakshman Kiriella (who is a Minister of the present Government) stated at that time "based on the evidence given by the former Supreme Court Judge Shiranee Tilakawardane, the Golden Key depositors could now squarely lay the blame at the Government's feet." The present Government of President Sirisena has promised to provide solace to these long suffering depositors as it is one point in the 100-day Agenda but this relief though promised seems very slow to arrive.
In the absence of political or judicial intervention, divine intervention would undoubtedly ensure punishment to the fraudsters and wrongdoers who would pay dearly in time to come. The people of Sri Lanka are aware of the fate that befell those who contributed to such frauds in the past.