Presidential Commission to probe failed finance companies

A special presidential commission has been appointed by President Mahinda Rajapaksa to probe finance companies that failed in the past after the Committee on Public Enterprises (COPE) found fault with the central Bank for not recovering large amounts due to the government.

Justice Priyantha Perera will head the commission while the other members are President's Counsel Faisz Mustapha, banker Eastman Narangoda and the head of the accounting watchdog Ajith Ratnayake while the secretary to the presidential commission is Nandani Dissanayake.

The special Presidential Commission was appointed after the COPE report accused the Central Bank last year for not monitoring financial institutions properly and for failing to take action against illegal finance companies.

The commission has been given the responsibility to inquire and report the individual conduct of Central Bank officials who have been in charge of the regulation and supervision of banking and non-banking financial institutions from 1991-2005, make recommendations on appropriate steps to be taken against any officials responsible for such deficiencies, examine the possibility of recovering funds given to failed finance companies by the Central Bank during 1991-2005 and make recommendations on action to be taken.

The committee has to suggest action that could be taken against the directors of failed finance companies for mismanagement of companies and misappropriation of funds, if any.

The commission has invited the public to make or send representations to the committee by May 31. In addition any individual or organisation not forwarding written representations but desirous of testifying orally should write or inform the secretary indicating the desire.