SEC Chairman’s resignation: A severe blow

Good governance and minority shareholder rights activist K.C. Vignarajah says the resignation of an official of the caliber of SEC Chairman Thilak Karunaratne would be a blow to the country.

Karunaratne is expected to resign amidst pressure from an influential group of investors being investigated by the SEC for market malpractices who undoubtedly enjoy patronage from the state.

In a letter addressed to President Mahinda Rajapaksa, Vignarajah said, "It will be a severe blow to our country’s image, if persons of very high caliber resign from the chair of SEC. (Mr. Thilak Karunaratne now, and only 8 months after Ms. Indrani Sugathadasa.) There has been an unmistakable chorus of good advice, from the COPE to all good editors, journalist, and all eminent persons of goodwill."

This band of influential investors and its crony brokers have been running a smear campaign against persons and media in support of the SEC, in support of a cleaner market.

Vignarajah’s letter to the President in full:

"Please permit me the honour to draw your kind and urgent attention, once again, to a matter of grave importance to the good name of our country and its capital market.

My letter to you dated 20th ultimo, handed over immediately after, the market stakeholders’ meeting with you, concluded thus:

"Your Excellency’s ambition to fly the flag of our country high is being undermined by many extremely selfish persons. You have great potential to do good by defending the actions of the regulators to do their duty of protecting the investors, create a level playing field and ensure fair play."

At that meeting I heard (not saw) some desperate wrongdoer interjecting that I was "anti-Government and anti- Lanka". I was amused at this desperado’s attempt to divert your keen attention away from my speech. His absolute falsity was countered thus: By training and culture, I have always been non-political, and truthful in all my public interest, good governance and investors’ interest activities. To contribute, for the betterment of humanity, the country and the average decent citizens, have always been foremost in my upbringing. I have always been extremly proud of my parents, the extended family, teachers at college and lifelong friends; none of them touched anyone else’s money or property!

In the above context only, I drew attention to my role as Chairman, Pramuka Bank Restructuring Committee meeting with your Excellency on few occasions, to obtain relief, which bore fruits for the poor depositors. I was neither a depositor nor a shareholder, but acted in the public interest. I did not charge any fees nor claim any expenses. I worked tirelessly with the poor depositors, paying respects to all religious, political and social dignitaries in the process. UPFA, UNP, TNA, JHU, JVP figures were all there. I have never sought any personal favors.

"It was also the Depositors’ action to take the matter before the Appeal Court which ruled in their favor to reopen Pramuka Bank. The Supreme Court dismissing the appeal by CBSL, directed them to consult, K.C. Vignarajah the depositors’ representative in the restructuring process of the Bank". - (Sunday Observer 11th July 2004)

I understand that Mr.Thilak Karunaratne also sought no fees or expenses, did an Honorary job at SEC. Remarkable person, truly patriotic. My admiration for those who do their duty by the people is tremendous. If he is moved out, or resigns, it will be a great tragedy for our country and the investing public.

In 1978, the M.D Gunasena controlled "SUN" news paper carried the following front page banner headline: Quote- An angry young man states:

"THE QUOTA WE WON IN WASHINGTON WAS LOST IN SRI LANKA!"

On returning from a successful trip as advisor to the first quota negotiating team to USA led by Minister Lalaith Athulathmudali, I stoutly opposed the JRJ diktat on distribution of 50% of the hard won quota, to multinationals in the FTZ who were not entitled to any! We finally won for the small and medium indigenous industry, and retrieved nearly all the key quotas from the multinationals in the FTZ.

Mr.Thilak Karunaratne’s remarks that he would not allow "Robber barons" to exploit our innocent investors, reverberates the very same spirit as mine, about 34 years ago in defending the country’s industrial interests!

President Premadasa had the concept of 3Cs "Consultation, Compromise and Consensus". There was at that time, some "Crony capitalists" feeding off a lopsided "free market". I was always for a competitive free market economy with basic safeguards. As a counter to the revolutions that have been caused by exploitative hierarchies, I was espousing the creation of more manufacture and exports of added value products and services; also stressing the necessity of 4Cs "Creative, Competitive Caring Capitalism" which shares the fruits of the enterprise society in an equitable and fair manner to enlarge a shareholding democracy. President Premadasa responded beautifully, (even though a very close caring friend cautioned me) after watching a detailed 12 minute presentation of all the faults, and (with other chamber heads giving me their time) seeking a level playing field, revamped Policies, removing unethical practices, competition and corruption.

Your Excellency, It will be a severe blow to our country’s image, if persons of very high caliber resign from the chair of SEC. (Mr.Thilak Karunaratne now, and only 8 months after Mrs.Indrani Sugathadasa.) There has been an unmistakable chorus of good advice, from the COPE to all good editors, journalist, and all eminent persons of goodwill.

Thanking you for your urgent attention, to retain the honest chairman of SEC, and the acting Director General Prof. Dr Dissa Bandara, while rejecting the advice of High Net Work Crooks (HNWC) and wrong doers.

Yours Truly,

K C Vignarajah (Acting in the interest of IMS and the investing public)
http://island.lk/index.php?page_cat=article-details&page=article-details&code_title=59343

No..
තව මොනවත් වෙන්න ඉතුරු වෙලා තියෙනවද?

Interesting. KCV has spoken about himself, more than the subject....!

If someone is holding the top position, he should be able to convince the stakeholders and implement what the job requires. If he is unable, it is logical to pave the way for another..

Japanese prime ministers keep changing... Good or bad for the economy? If someone is not able to get the support of all concerned and march forward successfully, trying with another is only judicious.

"I understand that Mr.Thilak Karunaratne also sought no fees or expenses, did an Honorary job at SEC. "

If this is accurate we should admire that whatever other issues people have with him.

I genuinely think Tilak tried to gain cheap popularity by publicizing the so called investigation. He never thought about what happen to investor confidence.

I think Tilak got his priorities wrong. Manipulators are not the only problem we have. the conduct and attitude of SEC itself is a problem. SEC is run by stupid SLAS officers who have no idea what the investment market is..

in an investment market every action has thousand reactions, so far SEC not able to calculate reactions of their actions. That is why arrogant SEC Indrani Sugathadasa, suddenly decided to cut down credits by 50% within few months, then brokers did forced selling and recovered credit, but poor investors lost money.that is the beginning of the collape.

If I were that stupid woman I would cut down brokers credit 2%-5% a months regularly, without collapsing the market all of sudden, through forced selling.

still SEC did not get the correct person with the right attitude, may be many will come and go, or they will never find the right person.

Jokers at the SEC are typical set of lethargic pompus set of donkeys typical of Sri Lankan Government servants and corrupt to the core and may be negotiating to cut a deal with the Mafia and dragging the cases till the price is right to let the mafia off the hook and by that time the retailers will be dead and gone !!!