Ceylinco Chief further remanded

Summons issued on 31 directors

Jayampathi JAYASINGHE

The Chairman of the Ceylinco Consolidated, Lalith Kotelawala was further remanded till April 8 when the case regarding the misappropriation of Rs. 26 billion from the Golden Key Credit Card Company (GKCCC) was taken up before the Additional District Judge and the Chief Magistrate Mount Lavinia, Harsha Sethunga last Thursday.

The Judge also issued summons on 31 directors of other companies affiliated to GKCCC to be present on court at the next date. The Magistrate told police that the warrant for the arrest of Sicille Kotelawala should be executed. The CID at this stage informed court that Interpol have already been notified about it.

The Deputy Solicitor General Sarath Jayamanna who appeared for the prosecution informed court that Lalith Kotelawala had not made a statement to the CID officers on three occasions when they called over at the Colombo National Hospital where he was warded.

He said a medical report should be called for regarding his inability to speak. The Magistrate ordered the Judicial Medical Officer (JMO) Colombo to forward a report on Kotelawala whether he was in a position to make a statement to the Criminal Investigation Department.

The Deputy Solicitor General informed court that Ceylinco Group Head Lalith Kotelawala was agreeable to a proposal to sell off assets worth Rs. 14.5 billion to settle depositors' claims. The decision was made at a meeting held with Counsel for Kotelawala and the Counsel for depositors. Earlier the Supreme Court suspended the selling of Ceylinco assets and the personal properties of directors of the GKCCC.

Around 600 depositors of GKCCC had complained to the Criminal Investigation Department (CID) that they could not withdraw deposits due to a fraud in the company. A number of depositors has not complained to the CID due to fear of being questioned by tax officials regarding their wealth, according to sources.

A person who had deposited Rs. 1,700 million with the GKCCC too had complained to the CID. Police earlier informed courts that they are investigating the reason as to why GKCCC invested large sums of money in foreign banks in Malaysia. Although records show that several billions had been invested in Malaysian banks they are unable to account for these monies.

Although Rs. 26 billion have been invested by 9,214 depositors at GKCCC, the company has borrowed Rs. 600 lakhs from a private bank and another Rs 175 lakhs from a state bank, according to reports.