AG urged to expedite TFC-NSB case

SEC letter follows request from COPE

Sri Lanka’s Securities & Exchange Commission (SEC) has requested the Attorney General (AG)’s Department to expedite the investigation pertaining to the controversial TFC-NSB transaction involving Pradeepa Kariyawasam, a former bank chairman and husband of former Chief Justice Shirani Bandaranayake.

Amidst allegations swirling in the marketplace that SEC Director General Hareendra Disa Bandara’s resignation, effective May 27, was connected to a possible cover-up in the case, the SEC said on Friday that the AG is handling the issue after a probe report was given some months ago.

“We followed up a request from the last COPE (Committee on Parliamentary Enterprises) meeting that the SEC should write to the AG to expedite this investigation. This letter was sent last week (2-3 days after the COPE meeting on March 19),” SEC Chairman Nalaka Godahewa told the Business Times. In the meantime, the post of Director General of the SEC was advertised in the newspapers yesterday.

Mr Kariyawasam was forced to resign after the SEC cancelled a deal in which the NSB (National Savings Bank) had purchased a sizable stake in TFC (The Finance Co.) at an inflated price. The investigation is pending.

Initially dilly-dallying in taking action against Mr Kariyawasam despite a complaint of corruption against him, anti-bribery authorities probe after the former chief justice fell out of favour with the Government and was successfully impeached by parliament.

Asked about the status of the TSB-NSB deal, Dr Godahewa said, “The SEC inquiry into this transaction had been completed and sent to the AG for action even before I joined the SEC last September. Subsequently there were some consultations with the AG on this issue.”

Last Thursday, Dr. Disa Bandara submitted a letter to the Commission saying he intended to resign with effect from May 27 and told reporters that this was over reasons of principles and issues. At the weekend, he clarified his comments, saying in a statement that many probes had been completed. No reference was made about ‘issues’ at the SEC.

Dr. Godahewa said however that the DG’s contract ends on May 31 and at a meeting of the Commissioners on Tuesday, at which the DG was present, it was agreed that pursuant to the DG’s contract ending, the post would be advertised. “Therefore I can’t understand why he should resign a few days before his contract ends. Generally if there is an issue, that individual would quit immediately, which was not the case here,” he said.

The DG sent in his resignation on Thursday, 2-3 days after the SEC Commissioners’ and the COPE meetings.

The SEC chief declined to comment on COPE proceedings. According to reports, COPE had asked the SEC to speed up the probes which had been held up owing to amendments to the SEC Act being studied by the AG.

Stock market insiders allege that there is an attempt to scuttle the TFC-NSB case as the former NSB chairman is believed to have named some influential government supporters as also being responsible for the decision to buy the TFC stake.

Dr. Disa Bandara’s intended resignation follows the ‘forced’ departure of former SEC chairpersons Indranee Sugathadasa and Thilak Karunaratne and some other officials after a crackdown on market manipulation.

This is the third time the post of DG is being advertised in the past year. Although a suitable candidate was found in the first call for applications and he was informed of his intended appointment, the decision was withdrawn at the last minute.
http://www.sundaytimes.lk/130331/business-times/ag-urged-to-expedite-tfc-nsb-case-38681.html

According to past records thid govt will not appoint who will work to achive objectives of SEC and stated policy of mahinda Chinthanaya

There is a big deference between STATED Mahind Chithanaya and Practical Mahinda Ghinthanaya

Lanka-e-News -28.March.2013, 7.30PM) The Rajapakse regime is deploying all its resources to hide the true picture regarding the sudden resignation on the 22nd, of Professor Harendra Disabandara , the director general of the SL Securities and Exchange Commission , and paint a falsified impression.

Following he Director General’s promise to present the corruption investigation report to the Parliament COPE Committee on the alleged purchase of ‘The Finance’ shares by the National savings Bank at inordinately higher rates , the President who had got jittery that he will be exposed , has furiously berated the Director general most insolently. . The whole objective of the President now is to camouflage the Professor’s resignation as not compelled but voluntary , and say his tenure of office was to end soon any way. This explanation is of course absolutely funny and fake.

Professor Disabandara had a few days to complete his five year term in office. Such a post after completion of five years entitles him to a pension, rights attaching to the official vehicle and other perks. MaRa had screamed foul at the Professor and asked him to resign just a few days prior to his completion of five years. However , what is painted by MaRa is , ‘ in any case he was to go on retirement.’ This is the most idiotic and ridiculous explanation, for a Director general who has only a few days to retire and secure all the perks and benefits , tendering his resignation ahead voluntarily foregoing all these advantages must either be insane or as moronic as MaRa .

The SL security bonds and exchange Commission is the only Institution which has powers of the Parliament and the courts. This Commission can introduce laws to control exchange and stock exchange . It has also powers of the court to punish defaulters . In every country in the world the exchange control Commission is run by economic specialists and the intelligentsia and every attempt is made to keep it independent.

But in a country that is governed by AliBaba and forty thieves , that is not followed.

When Chandu Epetawela of the exchange Commission who was in charge of the investigation into the corruption charges linked to ‘The Finance- NSB ‘ fraudulent transaction of MaRa ,resigned three months ago, and the charges are instead being heaped on the husband of the former chief justice , the following facts must be taken into consideration :

The stock exchange is now being used completely for the money laundering purposes of the Rajapakse regime. It is akin to a venue for the Rajapakse regime’s extortion activities. It is not governed by any rules or regulations. The Broker Companies of the stock exchange from whom the Rajapakses collect commissions have themselves revealed to Lanka e news about it. This is borne testimony by the fact that for the Carlton rugby sport , the maniacal obsession of the Rajapakse boys , all expenses are met by these Broker companies who are fleeced via extortion.

Meanwhile during the last two years six high ranking officers of the SL security bonds and exchange Commission had resigned. JVP politburo member Anura Dissanayake holding a special media briefing today said , the last of the officers who resigned is Dissa Bandara . Of the 50 shady transactions that took place at the stock exchange , 30 of them are criminally tainted , according to the former Chairman Thilak Karunaratne as revealed by him before the COPE Committee, Anura Dissanayake stated.

http://www.lankaenews.com/English/news.php?id=13617