would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc.. 
Home
* New SEC Chairman clueless about
appointment?
* Analysts: 17 investigations an indicator of Dr. Godahewa’s performance, not ASPI
Newly appointed Chairman of the Securities and Exchange Commission (SEC) did not know until the very last moment that the government had appointed him to the important position left vacant by Thilak Karunaratne, who resigned due to pressure exerted by some high net worth investors and their crony brokers, as did his predecessor Ms. Indrani Sugathadasa.
The Island Financial Review spoke to Dr. Godahewa on Tuesday night. Our question to him was; "Would you accept the post of SEC Chairman if it was offered to you?" His response; "There is nothing I can say because no one has asked me yet." A few hours later news reached the news desk that he had been appointed with immediate effect. Which means Dr. Godahewa may have not been consulted and had less than an hour or so to decide.
It was widely speculated that Godahewa would be given the tough assignment after he was seen offloading his shares and resigning from top positions in firms linked to controversial investor Dilith Jayaweera. It was still unclear whether he would continue to function as the Chairman of the Sri Lanka Tourism Development Authority Chairman.
He commenced duties yesterday afternoon.
We spoke to him briefly last evening and he wanted a few more days to familiarise himself with his new role before speaking to the media. In response to our query on the ongoing investigations, Dr. Godahewa said he would continue them.
Several brokers and analysts have already pointed out in the media that the stock exchange slump followed after the Central Bank was forced to take action without further delay to counter a growing credit bubble which threatened the country’s reserves and balance of payments. The belated corrective measures hit interest rates, the rupee and cost of living and, with credit tightening, the stock exchange.
Instead of looking at the fundamentals, certain groups pinned the blame on the SEC.
Those being investigated for market offences and their crony brokers then used the media and emails to show that the SEC was investigating market offences and creating a fear psychosis in the market. Whereas the SEC had always declined to comment on any investigations and have answered our constant queries with a ‘no comment’, adding that it could not say whether investigations were taking place or not.
Former Chairman Karunaratne only told the press that 17 investigations were on and that the SEC was under immense pressure, with calls from top officials for him to resign. He did this with the sole objective of creating awareness among the public. The parliamentary Committee on Public Enterprises commended him for his work and has said the SEC needed more teeth to counter the ‘stock exchange mafia’.
Various emails from gmail accounts are doing the rounds these days blaming the SEC and the media for being unpatriotic and anti-government in the way the issue was reported. They said it was bad for the country’s image because it created negative
perceptions about the country’s bourse, preferring instead that the SEC and media remain silent, that honourable officials should resign quietly and quickly.
Some analysts are disappointed with Dr. Godahewa’s appointed because of his former business connections. Although he has resigned and offloaded his shares in these companies, his personal relationships however would be intact. However, these same analysts were quick to point out that Dr. Godahewa should not be pre-judged, that he should be given the opportunity to do his best for the country’s capital market. The outcome of the 17 investigations would be his acid test.
"Thanks to Karunaratne, we have a number. 17 investigations there are at the beginning of Dr. Godahewa’s tenure as SEC Chairman. This is a great indicator to monitor the new look SEC Commission without getting hung up on how the ASPI moves," one broker said.
"We are now living in a country where the mere call to crack down on illegal activities is deemed to be anti government and unpatriotic. We hope and expect Dr. Godahewa to do the right thing," an analyst pointed out.
Meanwhile, a list of companies of which share transactions were under investigation by the SEC was reported in the media yesterday. Dr. Godahewa was Chairman of Colombo Land Development Company PLC.
The full list: Environment Resources Investments, Mirmar Beach Hotel PLC, National Lanka Finance Corporation, Huejay International, MTD Walkers PLC, Confifi Hotel Holdings, SMB Leasing, DPC Blue Twod & GREG, Hotel Reef Comber, Sommerville Stockbrokers, (PVT.) Ltd, Watapota Investments, Colombo Land and Development Company, Alutab Ltd, Pan Asian Power Ltd, Nation Lanka Finance, Deepes Merchant Ltd., Swarnamahal Financial Services, East West Properties Traders, Taprobane Securities (PVT) Ltd., Nawaloka Hospitals PLC, Union Bank PLC and Blue Diamond Jewellery Worldwide. Mahaweli Reach Hotels, Ascot Holdings, Singer Finance, Radiant Gems, On’ally Holdings, Asian Finance, Asia Assets Finance and Acme Printing and Packaging Ltd, MTD Walkers PLC.
http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=60324
appointment?
* Analysts: 17 investigations an indicator of Dr. Godahewa’s performance, not ASPI
Newly appointed Chairman of the Securities and Exchange Commission (SEC) did not know until the very last moment that the government had appointed him to the important position left vacant by Thilak Karunaratne, who resigned due to pressure exerted by some high net worth investors and their crony brokers, as did his predecessor Ms. Indrani Sugathadasa.
The Island Financial Review spoke to Dr. Godahewa on Tuesday night. Our question to him was; "Would you accept the post of SEC Chairman if it was offered to you?" His response; "There is nothing I can say because no one has asked me yet." A few hours later news reached the news desk that he had been appointed with immediate effect. Which means Dr. Godahewa may have not been consulted and had less than an hour or so to decide.
It was widely speculated that Godahewa would be given the tough assignment after he was seen offloading his shares and resigning from top positions in firms linked to controversial investor Dilith Jayaweera. It was still unclear whether he would continue to function as the Chairman of the Sri Lanka Tourism Development Authority Chairman.
He commenced duties yesterday afternoon.
We spoke to him briefly last evening and he wanted a few more days to familiarise himself with his new role before speaking to the media. In response to our query on the ongoing investigations, Dr. Godahewa said he would continue them.
Several brokers and analysts have already pointed out in the media that the stock exchange slump followed after the Central Bank was forced to take action without further delay to counter a growing credit bubble which threatened the country’s reserves and balance of payments. The belated corrective measures hit interest rates, the rupee and cost of living and, with credit tightening, the stock exchange.
Instead of looking at the fundamentals, certain groups pinned the blame on the SEC.
Those being investigated for market offences and their crony brokers then used the media and emails to show that the SEC was investigating market offences and creating a fear psychosis in the market. Whereas the SEC had always declined to comment on any investigations and have answered our constant queries with a ‘no comment’, adding that it could not say whether investigations were taking place or not.
Former Chairman Karunaratne only told the press that 17 investigations were on and that the SEC was under immense pressure, with calls from top officials for him to resign. He did this with the sole objective of creating awareness among the public. The parliamentary Committee on Public Enterprises commended him for his work and has said the SEC needed more teeth to counter the ‘stock exchange mafia’.
Various emails from gmail accounts are doing the rounds these days blaming the SEC and the media for being unpatriotic and anti-government in the way the issue was reported. They said it was bad for the country’s image because it created negative
perceptions about the country’s bourse, preferring instead that the SEC and media remain silent, that honourable officials should resign quietly and quickly.
Some analysts are disappointed with Dr. Godahewa’s appointed because of his former business connections. Although he has resigned and offloaded his shares in these companies, his personal relationships however would be intact. However, these same analysts were quick to point out that Dr. Godahewa should not be pre-judged, that he should be given the opportunity to do his best for the country’s capital market. The outcome of the 17 investigations would be his acid test.
"Thanks to Karunaratne, we have a number. 17 investigations there are at the beginning of Dr. Godahewa’s tenure as SEC Chairman. This is a great indicator to monitor the new look SEC Commission without getting hung up on how the ASPI moves," one broker said.
"We are now living in a country where the mere call to crack down on illegal activities is deemed to be anti government and unpatriotic. We hope and expect Dr. Godahewa to do the right thing," an analyst pointed out.
Meanwhile, a list of companies of which share transactions were under investigation by the SEC was reported in the media yesterday. Dr. Godahewa was Chairman of Colombo Land Development Company PLC.
The full list: Environment Resources Investments, Mirmar Beach Hotel PLC, National Lanka Finance Corporation, Huejay International, MTD Walkers PLC, Confifi Hotel Holdings, SMB Leasing, DPC Blue Twod & GREG, Hotel Reef Comber, Sommerville Stockbrokers, (PVT.) Ltd, Watapota Investments, Colombo Land and Development Company, Alutab Ltd, Pan Asian Power Ltd, Nation Lanka Finance, Deepes Merchant Ltd., Swarnamahal Financial Services, East West Properties Traders, Taprobane Securities (PVT) Ltd., Nawaloka Hospitals PLC, Union Bank PLC and Blue Diamond Jewellery Worldwide. Mahaweli Reach Hotels, Ascot Holdings, Singer Finance, Radiant Gems, On’ally Holdings, Asian Finance, Asia Assets Finance and Acme Printing and Packaging Ltd, MTD Walkers PLC.
http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=60324
