Golden Key Depositors’ Association Chief welcomes Ravi K’s promise

By Charumini de Silva

GKCCL Director and Golden Key Depositors’ Association President, Dushanthi Hapugoda yesterday confirmed that Finance Minister Ravi Karunanayake had promised to pay the depositors according to a repayment plan submitted in 2013.

Hapugoda expressed her appreciation at the effort taken by the Minister and the Governor to recover their money however, she emphasised that the association would be unable to withdraw the case filed before the Supreme Court without the written assurances over the repayment method, particularly with regard to concerns raised by the depositors which she claimed that Karunanayake had failed to address at their last meeting.

Highlighting the great risk to depositors if they withdraw all cases filled before the Supreme Court without any guarantees she said: “What will happen to the struggle that we went through for the past seven years if we do not get a relief as promised? People can change words in a jiffy!”

Clarifying further, Hapugoda asserted that: “It is not that we do not trust the Minister, but if we withdraw the case without seeing the written guarantee of resolving this problem, the culprits [former directors] will again get away claiming that they have no liability whatsoever to pay for the depositors.” 

She further stated that the association had requested an appointment with Central Bank Governor, Arjuna Mahendran for a meeting with their lawyer to further discuss the matter adding that she was hopeful that the Governor would confirm the meeting before 18 May.

“He just said that they will pay it somehow,” she said.

Noting that 41% of repayments should be settled in the ratio of one-third in cash to two-thirds in shares, the association had since found that the company has adequate assets to repay its depositors the full payment in cash. “We do not want shares, we want them in cash!”

In March 2014, GKCCL Chairman Priyantha Fernando hired a new Chief Executive Officer for the company for a gross pay of Rs 600,000 which had only 14 employees. Despite the Directive made by the Central Bank to reduce his pay to Rs 250,000 the company had not adhered to it. 

“Over the years the company had paid around Rs 7 million just to maintain the CEO’s position from the innocent depositors’ money, but in turn he has not done a single value addition to the company or for its depositors. Therefore, all the depositors unanimously requested the Minister to remove him from the current position for which he agreed.”

Another depositor Roshan Fernando said: “We came into an agreement with the Central Bank to withdraw the case and then go for a separate board. The Central Bank will control the whole issue in setting the repayments. But of course the depositors will not get the full amount. Everybody agreed upon 40% of their total investment. However, if there are consensuses we can raise more. If that is the case, they will settle more than 40%, but for now 40% is guaranteed.”