A ray of hope for F&G depositors

By Lalin Fernandopulle

Depositors of F&G Property Developers Ltd. and Real Estate Company Ltd. (PDL and RECL) who were left high and dry for years without any solution in sight can now heave a sigh of relief with the Government giving the nod to go ahead with the plan of the Independent Association Depositors (IAD) to settle the money of depositors.

Depositors who were left in the lurch for nearly six years since the two companies of the Ceylinco Group went bust in 2008 with the fall of the Golden Key Credit Card Company could now see some light at the end of the tunnel as they anxiously await the approval of the resettlement plan by the Court early next month.

Tudor Weerasinghe, a RECL depositor said that he had invested half of his retirement benefits in the company hoping for a safe retirement without having to depend on his children for existence. Since the company got into hot water he had not received a cent to date making life difficult.

The interest in 2006 and 2007 was all that he received.

“Depositors received neither the interest nor the capital since 2008 and it has been a struggle to keep our head above water with the cost of living rising each year. We are extremely happy that at last an investor had agreed to come to our rescue,” Weerasinghe said.

Around 167 depositors have died and 23 have committed suicide since 2009 while many pensioners who earn a megre income have to forgo medication which is costly.

“It has come to a do or die situation. We need to get our money back to tide over the burden of daily expenditure,” said Weerasinghe.

Tialk Samarasekera, a F & G Group depositor and a pensioner said that he had to delay a bypass surgery for over one year as it would cost around Rs.1 million.

“I invested around ten million rupees in the company and have not received a cent since it ran into the crisis. I have no means of surviving and my life is at stake” Samaraweera said.

Depositors have been in the dark for years since the authorities in the previous Government dragged their feet on the matter. Depositors want the Government to expedite the matter and address their grievances.

“We hope that the Central Bank will approve the new plan and the Court would give the green light to go ahead,” a depositor said.

A UK based investment bank has pledged to invest US$ 55 million (Rs. 7 billion) in the two companies to settle the funds of the depositors. The investor has nominated a board of directors to relaunch operations of the defunct companies.

IAD Secretary General Mahinda Wijesuriya said that there is ray of hope for PDL and RECL depositors, land owners and other aggrieved parties as authorities have been favourable towards the proposals of the IAD to reveive operations of the two entities.

He said that to resolve this protracted case, the Central Bank on the orders of the Supreme Court intervened and worked out a plan of action with the Depositors’ Association in repaying depositors and resolving the issues with the two collapsed companies.