Harsha decries stench emanating from SEC

Tuesday, 25 September 2012 01:07 - - {{hitsCtrl.values.hits}}

UNP MP Dr. Harsha de Silva yesterday decried the serious slip in good governance and effectiveness at the Securities and Exchange Commission (SEC), saying the stench was unbearable.

With reference to Daily FT article on SEC’s decision to send letters of assurance to 50 investors who had been previously summoned or written to seeking information,

Dr. de Silva said it signalled the end to investigations.

“This is deeply demoralising. The “mafia” has succeeded to put an end to investigations,” the UNP MP alleged.

The UNP MP also said the price of George Steuart Finance Ltd., in which newly-appointed SEC Chairman Dr. Nalaka Godahewa holds 1.12 million shares (5%), has been manipulated after being listed a fortnight ago to become among the top 20 most valuable companies.

“Overnight Godahewa has become a billionaire,” Dr. de Silva said, referring to the value of the SEC Chief’s shares in GSF of Rs. 1.34 billion at yesterday’s closing price of Rs. 1,200 per share.

The UNP MP said that as per best practices and given the serious conflict of interests and his links to high profile investors, Dr. Godahewa should make a full public disclosure of his investments annually.

“The regulator must not only be above board but perceived to be so,” emphasised Dr. de Silva.

He also linked developments at SEC as a further reflection of the fast deteriorating state of governance overall in the Government and the country along with respect for the rule of law and justice.

With regard to sending fresh letters SEC officials said the move was to wade off the fear psychosis created originally by the previous regime on mere information gathering. However the letters had a rider that if more information was needed SEC would revert. They also maintained that investigations based on credible evidence had been and would be pursued.