|
|
 |
 |
| Sunday, 26 October 2003 |
 |
|
 |
News |  |
| News Business Features Editorial
|
Response to the Pramuka Bank Story Depositors in the lurch We refer to the article in the Sunday Observer of 19th. October 2003 under the above caption. Referring to the statement made by Mr. A.H.A. Mendis, Managing Director of the Pramuka bank we note with regret that Mr. Mendis is sending incorrect information to the general public and the outstation depositors. Mr. Mendis state that the Courts have given him the green light to recover the outstanding loans. We categorically state that neither the Appeal Court nor the Supreme Court gave any authority to the Management of the Pramuka Bank to do so. It is widely known that the Central Bank (CBSL) had accused them of mismanagement, improper and imprudent practices. During the period of suspension of the PSDB the responsibility of loan recovery and other business was vested in the Director, Banking Supervision. The CBSL has only authorized the Management to open the bank every Wednesday for borrowers to settle their loans. We also wish to inform Mr. Mendis that the Depositors are not in agreement with re-employment of the present management who were responsible for the downfall of the PSDB. Mr. Mendis seems to be of the opinion that the PSDB should have a member in the Restructuring Committee without which the Restructuring Committee cannot function. Mr. Mendis should understand that the Restructuring Committee was formed for no reason other than to co-ordinate the restructuring process in the interest of the Depositors, Creditors and deserving employees and not the present Management including Mr. Mendis who should take full responsibility for the insolvency of the PSDB. Any member from the PSDB Management cannot be accommodated in the Restructuring Committee for the simple reason clear from the Ernest & Young report which clearly state that the Total loss and Total shareholders fund as at 25th. October is Rs.1390 and 307 million respectively. It is therefore evident that nothing is left for the present management of the PSDB and its shareholders. Whatever assets now available belong to the Creditors and Depositors. Mr. Mendis state that the Depositors Association, RDA, Samurdhi and Rural Banks have agreed to maintain the deposits with them for two years. This is a very irresponsible statement. At no stage have we or the other Institutional Depositors given this undertaking We are not in the least prepared to trust them with our deposits in the future having known their past track records. He further states that if the bank is liquidated we will loose only 30 to 40 percent of the deposits. This is the height of absurdity. If the PSDB is liquidated we will get only peanuts and that too after at least 20 years as is evident from the case of Home Finance. Mr. Mendis state that if the PSDB opens all of us will win. The Depositors will strive hard to see that the bank is opened purely for the benefit of the Depositors, Creditors and employees and not the present management. He also says that they cannot pay back 100 percent of our deposits and only about 10 percent can be serviced. We are certain that Mr. Mendis will realize that the Depositors have not received a single cent as interest from their investments for the last two years forcing some of them to suicide and that they are in the thresh hold of loosing at least 90 percent. Many of them may not survive to receive even the meager 10 percent under liquidation. Is this not good evidence of their service capabilities? |
|
News | Business | Features
| Editorial | Security Produced by Lake House |
