UNP asks for a Parliamentary Select Committee to probe NSB-TFC, EPF and other State entity deals

By Chamitha Kuruppu

The main Opposition yesterday called for the appointment of a Parliamentary Select Committee to probe the contentious and later abandoned NSB-TFC deal as well as investments by other State funds, including the EPF, but the Government said appropriate action had been taken to address the issues.

UNP MP Dr. Harsha De Silva, presenting an adjournment debate in Parliament on the ill-fated NSB decision to buy a 13% stake in loss-making and negative net worth The Finance Co (TFC) for Rs. 290 million, asked five direct questions.

They were as to why the deal was cancelled and by cancelling it if it was an admission of wrongdoing, if NSB Board is being held accountable as the members have resigned, and whether members of NSB as well as TFC Board have qualified the fit and proper test stipulated by the Central Bank.



Other questions included what action the SEC has taken on all parties to the deal and what the Government has done to rebuild public confidence in NSB.

Dr. De Silva urged the appointment of a Parliamentary Select Committee to look into how and why NSB bought the shares of the Finance Company at Rs. 50 when the market value at the time was Rs. 30.

Dr. De Silva also told Parliament that there was no point reversing or cancelling the corrupt deal, but that people who were responsible should be punished.

Democratic National Alliance Parliamentarian Anura Kumara Dissanayake seconding the proposal said that Parliament should be informed why public funds and State institutions like EPF and NSB were entering into valueless shady investments such as this.

Speaking on behalf of the Government, Deputy Finance Minister Geethanjana Gunawardena had assured the House that following Presidential intervention, the deal had been cancelled whilst further efforts to take appropriate action were ongoing. He had also said that the Opposition was dead silent when there was an era when an illegal Eelam Bank was operating in the north.

Education Minister Bandula Gunawardena also assured Parliament that NSB hadn’t suffered a loss as the transaction was cancelled whilst public deposits were safe as well.

During responses from Government benches, the UNP MP alleged that his questions weren’t getting direct answers and that the Government was beating around the bush and referring to irrelevant issues. Dr. De Silva even threatened to walk out since proper answers weren’t forthcoming.