Key seminar on failures of finance companies on 31 January
Thursday, 23 January 2014 00:00
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In the midst of speculation of the failure of more finance companies, a Key Seminar is scheduled to be held on Friday, 31 January at 3 p.m. at the Winchester Hall, The Kingsbury on the very subject of these repetitive failures of finance companies.
Daily FT yesterday headlined that the Central Bank was slammed in Parliament for the failure of Central Investment & Finance Ltd. There is speculation in the media that there are more finance companies in financial difficulties.
Several finance companies, including the then giant Central Finance Co., crashed in the late 1980s, even after being funded heavily by the Central Bank. House & Property Trades was a household name at that time and is no more.
In the recent past, the cycle occurred again, with the failure of the giant Golden Key Co., not forgetting operations, such as Sakvithi Finance, etc. the Central Bank has now shockingly pronounced that there are too many finance companies, around 60, which should be reduced to about 20. If that be the case, the question arises, as to why the Central Bank issued licenses to establish finance companies in the first instance?
The Central Bank has a separate Department of Supervision of Non-Banking Financial Institutions, raising the question, as to how this Department has not been able to effectively supervise the existing finance companies, like how the Department of Director of Bank Supervision supervises banking institutions?
The Central Bank taking the risk, prominently published lists of finance companies in full page advertisements in the media, where public were advised that they were safe to deposit monies with, thereby giving rise to the question, as to whether the Central Bank held out as a procurer or guarantor ?
This Key Public Interest Seminar on Friday, 31 January is to be presided by the Chairman of the Human Rights Commission, former Supreme Court Justice Priyantha Perera, who also chaired the Presidential Commission on Failed Finance Companies, and includes the participation of expert persons in their own fields, including eminent Senior Counsel K. Kanag-Isvaran P.C., a veteran banker Ranjit Fernando, who is also an accountant and lawyer, and renowned public interest activist Nihal Sri Ameresekere, who has gained international recognition in government financial management and anti-corruption work.
This is a first of a series of Public Interest Seminars being organised to create public awareness and to activate civil society on matters concerning the public, and very aptly the first seminar is on a very current burning issue of the failure of finance companies, where innocent depositors’ monies have been mismanaged or swindled, with several victims even having committed suicide.
This seminar also concerning human rights is to be presided over by the Chairman of the Human Rights Commission.
