Lankaputhra Development Bank reappoints employee suspected of fraud after political pressure

Despite the Government being criticised for appointing officials to high positions at state banks as well as safeguarding bureaucrats found guilty of financial fraud in the recent past, it appears that neither politicians nor the administration are heeding  concerns.

The saga at State-owned Lankaputhra Development Bank (LDB) still continues as the current Chairman Ruwan Gallage allegedly gave into political pressure and reappointed a former employee who was expelled for serious financial fraud.

The Daily FT learns that Gallage has submitted a letter dated 14 November 2017 to Public Enterprise Development State Minister Lakshman Yapa Abeywardena stating that considering the requests made by ministers at the Board Meeting held on 31 October 2017 that they had decided to reappoint N.W.A.R.W. Nanayakkara and the decision had been conveyed to the relevant authorities of the LDB.

This decision reflects that neither the bureaucrats nor the politicians had paid any attention to the voice of the Ceylon Bank Employees’ Union (CBEU). 

Although Gallage claims that the reappointment of Nanayakkara was a collective decision taken at the Board Meeting, the Daily FT learns that the verdict was not taken during the Board Meeting. 

Interestingly, on the following day (15 November 2017), the State Minister has notified Nanayakkara in a letter that the LDB Board has decided to reappoint her after considering his direction made to the bank’s Chairman in his capacity as the subject minister and the resolution has been informed to the respective officials. 

In addition, in a letter dated 24 November 2017, Nanayakkara has acknowledged to the LDB Chairman that she received a letter from State Minister Abeywardena on the Board’s decision to reappoint her, while requesting to notify her in the immediate future when to commence work at the bank.

Nanayakkara has also noted that as she was expelled from work in an unreasonable manner, she has filed a case at the Labour Tribunal in Kaduwela and the case was still being heard. She has requested Gallage to notify LDB’s attorney and other officials on the latest decision in relation to this matter stressing that the case would be taken up on 28 November 2017. 

Furthermore, Nanayakkara has requested the LDB Chairman to make arrangements to fast-track the decision without any further delays for her to commence work, noting that she has been unemployed since 28 October 2013.