EPF gets Rs. 231 m in lieu of excess paid for 33 m LAUGFS Gas PLC shares in 2011

Thursday, 1 August 2024 04:21 - - {{hitsCtrl.values.hits}}

Three including Chairman and Director settle Rs. 23.1 m fine in compounding offences of market manipulation to SEC Compensation Fund

The Employees Provident Fund (EPF) has been paid back Rs. 231 million in lieu of excess paid for 33 million shares in LAUGFS Gas Plc way back in 2011 following an alleged market manipulation case filed by the Securities and Exchange Commission (SEC).

The SEC also announced yesterday that three accused compounded the case and paid Rs. 23.1 million collectively to the SEC Compensation Fund.

The SEC filed action against W.K.H. Wegapitiya for offences of conspiracy to commit market manipulation and committing market manipulation under the provisions of the then Securities and Exchange Commission of Sri Lanka Act No 36 of 1987 as amended before the Magistrates’ Court, Fort in Case bearing No 16967/20, in respect of the shares of LAUGFS Gas PLC (LGL) during the period 7 to 10 October 2011.

An application was made in Court by the Counsel representing W.K.H. Wegapitiya in order for the SEC to consider compounding these offences in terms of Section 51A of the then Securities and Exchange Commission of Sri Lanka Act No 36 of 1987 as amended.

Having considered the loss caused to the EPF, the time since the said offences were committed, the accused agreeing to settle the loss caused to the EPF, other pending litigation connected to this case, and the absence of previous convictions, the Commission decided to consider the application to Compound the said offences upon the payment of a sum of Rs. 6.6 million to the Compensation Fund of the SEC by the accused.

This compounding was effected following W.K.H. Wegapitiya together with the other accused in this case, U.K. Tilak N de Silva and T.I. Hulangamuwa, agreeing to settle the EPF for the excess amount of Rs. 231 million paid by the EPF in respect of the 33 Million shares of LAUGFS Gas PLC bought at Rs. 48 on 10 October 2011. The other two accused T.I. Hulangamuwa and U.K. Tilak N. de Silva paid Rs. 6.6 million and Rs. 9.9 million respectively.

The amounts were settled to the EPF and to the SEC in open court when the matter was called before the Learned Magistrate on 19 July 2024 and the funds were duly credited to the EPF and to the Compensation Fund of the SEC respectively.

Editor’s Note: This article has been updated and revised, correcting few inaccuracies in the print version of 1 August 2024.