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| Sunday, 27 February 2005 |
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| News Business Features Editorial
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Large percentage of population hit by Pramuka closure, say depositors by Rohan Mathes A considerable percentage of the country's population has been directly or indirectly affected by the sudden crash of the Pramuka Bank which is heading for inevitable liquidation, unless the government responsibly commits itself to resolve the crisis. Pramuka Bank's Association's President Palitha Gamage told the Sunday Observer that public money has been squandered by a few unscrupulous individuals holding high office within the banking sector of the country. The Central Bank (CB), the banker's bank and regulator has dismally failed in their task of proper supervision of the defunct bank, he said. In addition to the 15,200 odd destitute depositors who have been directly affected by the closure, the Public Trustee's Department, a major institutional investor in Pramuka, has placed Rs. 129 million. The other biggest institutional investor, the Provincial Road Development Authority (RDA) has Rs. 453 million in it. Albeit the CB had considered these funds as state funds, the Attorney General had recently rejected the same. "Therefore, they will also be considered in the same plight as the private depositors," he said. He said the Rural Banks have Rs. 900 million of over 350,000 small depositors' contributions and Rs. 60 million Samurdhi Bank funds contributed by over 100,000 Samurdhi holders. These, along with their families depend on them, make up a sizeable percentage of the total population of the country. Meanwhile, Central Bank's Deputy Director Bank Supervision, W. Weeraratne when contacted by the Sunday Observer said that he could not comment, as the matter was before court. Minister of Trade, Commerce and Consumer Affairs Jeyaraj Fernandopulle has however pledged his optimum assistance to the Pramuka Bank Depositors' Association in their bid to recover their life-long savings placed in the bank, Palitha Gamage said. |
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