CPSICL depositors call for redress

by Mohammed NAALIR

The mediation of the All Ceylon Jammiyathul Ulama (ACJU) is crucial to finding a permanent solution to the problems of the depositors who invested in Ceylinco Profit Sharing Investment Corporation Limited (CPSICL) in accordance with Islamic Shariah law under the concept of Islamic Financial law.

These depositors are helpless and are undergoing immense difficulties, trying to get their share profit or invested capital back, the President of the Action Committee for CPSICL Depositors Mumthaz Rahman said.

Over 11,000 depositors have invested over Rs. 800 million in CPSICL under the Islamic Shariah Law. Rahman alleged that despite the promises made by the management of CPSICL from time to time, nothing has happened so far in connection with the share profit and capital of the depositors. He said the majority of the depositors in the company were widows, those who have returned from abroad and retired persons. They were experiencing immense hardships in leading their day-to-day lives as they depended entirely on the share profit of their deposits.

The Committee had held discussions for the last three months with the CPSICL Management, but no productive results could be obtained Rahman added.

The company has invested the major part of its deposits within the Ceylinco Group and is now unable to recover the money. A statutory audit had not been done for the past five financial years and the company had given loan facilities to certain companies or individuals without any security.Rahman accused that even though the depositors had communicated with the company, no action had been taken so far.

As the discussions held for the past three months with the CPSICL Management had ended in failure, the Committee has now decided to take legal action against the company on behalf of the depositors. Also, disrespecting the financial agreement made with the depositors, the money had been deposited by the company in The Finance Company, Celynco Insurance and Golden Key Credit Card, which did not follow the Islamic banking system.

CPSICL has 14 branches islandwide.