Vignarajah extends “heartiest” congratulations to SEC

K.C. Vignarajah, who represents independent minority shareholder interests, has extended what he described as “heartiest congratulations” to the Securities and Exchange Commission for some of its recent regulatory actions. Following is the full text of Vignarajah’s letter to the SEC which he shared with the media:

Heartiest congratulations to you, other members and staff of the commission who worked positively to

1. Review LRA highly unethical, immoral, and in the larger context of good corporate governance, totally unacceptable;

2. To question Citrus Leisure PLC on use of investors’ monies obtained via rights issues.

Your firm action was possible mainly because of the courage and openness of President Maithripala Sirisena (MS) and Prime Minister Ranil Wickremesinghe (RW) appointing you as the Chairman of SEC. However, we have noted that you have to work, surrounded and shackled by the same infrastructure of Conflicts of Interests (CoI) of some commissioners and officials who exhibit the same traits.

Excerpts from Daily FT (10 June):

Quote: “Conflict of interests between LRA and issuer company…”

“…The Securities and Exchange Commission (SEC) has directed the Colombo Stock Exchange to defer the opening date of the subscription of the proposed debenture issue of EAP Broadcasting Company until a rating is obtained from an independent agency…”

“…The commission was of the view that the integrity of the process adopted by LRA does not appear to support the credibility of the rating…”

“…the Common Director reference is M.P. Jayawardena who is Chairman of LRA and a Director on the EAP Broadcasting Board. The two directors of the company serving on LRA’s Rating Committee are none other than the former SEC Chairman and one-time Director General Dr. Dayanath Jayasuriya (Chairman of EAP Broadcasting) and former NDB CEO veteran banker Russell de Mel (Director of EAP Broadcasting)…” Unquote.

Thank you once more for the two above actions.