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Golden Key Fraud in Sri Lanka
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dumindak
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 12 Mar 2009 04:19:46 GMT Report for Abuse
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Lalith Kotalawala and Sakvithi both are same, sakvithi is a known crook while LK was an unknown crook.
People had to waste 2.6b to know sakvithi is a crook, in LK case it is ten times more, 26b
But some segment of sri lanka population alwasy suspected LK. they had reservation about him as a honest person, but many educated people fell into trap.
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UKResident
Joined: Feb 2009
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 13 Mar 2009 12:21:31 GMT Report for Abuse
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Ceylinco group had purchased real estate at the Kings Cross area in London also Ceylinco chief owned 20 residences in Australia and 12 in Singapore
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NonResident
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15 Mar 2009 12:56:29 GMT Report for Abuse
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Read Island (15 Mar 2009).
It transpires CBSL carried a paid full page advertisement in 2003 identifying GK as an institution that can source funds from the public! (the devil is in the detail!)
Now, Isn't this an endorsement, of GK's actions by the regulator, published in the newspapers for the benefit of the general public.
Now I like to ask the question:
On what basis did CBSL publish this full page advert?
If CBSL was not regulating the GK, in whose interest did the CBSL use public funds to publish an advertisement endorsing an unregulated entity's ability to source funds?
Shouldn't the CBSL to be in the dock for misleading the public to venture into scam?
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Joy09
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 17 Mar 2009 02:45:43 GMT Report for Abuse
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NonResident
I remember seeing this ad. I may be even having a copy of it. This was after a court case filed by the Golden Key and as an out of court settlement the Central Bank published this ad. It said that GK can source funds from the public for their purposes but that they are not monitoring GK. The question is whether the Central Bank can now wash their hands off?
Central bank has done another blunder with Ceylinco Development Bank. Although it is only a leasing company Central bank has allowed them to use the word 'Bank'. They have promptly taken public deposits amounting to Rs.6 Billion which they are not supposed to do as a leasing company. Now who is to be blamed here? I feel Central Bank misled the public by allowing them to use the word 'Bank' when in fact they are not a Bank.
Edited By - Joy09 - 17 Mar 2009 02:47:29 GMT |
dumindak
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17 Mar 2009 07:37:26 GMT Report for Abuse
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Non resident/Ukresident/Joy
I got some informatin that they are in foreign currency fraud, around 6-7B.
it happened thru Celinco Fast cash. It is very popular among expats, the money is not transfered to sri lanka, it goes to singapore, in sri lanka Golden Key paid to customers. totol payments so far exceeded 6-7billions. all money lying in singapore banks. I think now CID is investigating.
that is how GK went bankrupt.
the biggest question is when will we get our money???? |
NonResident
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18 Mar 2009 14:01:44 GMT Report for Abuse
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Joy09/UKResident and Others
This is undoubtedly the biggest Fraud perpetrated on the SRi Lankan public. I am not inclined to 'paint or massage' the reference to fraud by calling it a 'white coller' fraud as frequently referred to by the SRi Lankan press.
In my view, the perpetrators of fraud, whether they are enterprenours or coolies, are plain Criminals and should be treated like criminals. I dont understand, why differentiate (White Coller/Blue Coller or any Coller for that matter).
Furthermore, in my view, the Central Bank stays accused in the same dock as these criminals.
Here is an analysis of the fallacy of the Sri Lankan Financial Regulator's (currently led by a 'Moron') role in regulating and maintaining financial stability
For clarity a 'Moron' is defined as 'A person of mild mental retardation having a mental age of 7 - 12 years, and generally having communication and social skills enabling some degree of academic or vocational education.'
Now, back to the analysis
CBSL Annual Report of 2007 reports total Deposits with registered finance companies at Rs. 78 Billion. (these are the licensed non-bank institutions which can accept deposits from the public.)
Based on historical growth rates this number at December 2008 can be at or around 80 Billion.
Golden Key's deposits of Rs 26 Billion, translates to approximately 33% of the total deposits of all registered finance companies! (Even a Moron can calculate this)
We are also aware of the fact that the Central Bank was aware since 2003 that GK was accepting deposits from the public.
Now if we assume that GK was the only company which was not licensed which accepted deposits from the public, and in light of the CBSL being aware of GK's deposit taking business, in the eyes of the CBSL, the total public deposits with financial institutions (both licensed and unlicensed) equals to Rs 106 Billion.
If the CBSL, being the financial regulator, had analysed this number, it would have been evident to a 12 year old or even a 'Moron' that the amount of public deposits with un-licensed institutions accounted for 25% of the total deposits with non-bank financial institutions.
If the CBSL or the Moron who heads it had done this simple calculation, neither, would have compared GK accepting deposits to the Elephant House bottle deposits.
Now the question is
Is the Central Bank and the Moron who heads it, aware of any other un-licensed institution which accepts deposits from the public similar to 'Elephant House' bottle deposits?
OR
Should the general public wait for another financial Tsunami to unfold! |
mari
Joined: Mar 2008
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 18 Mar 2009 17:38:18 GMT Report for Abuse
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Happens all over the world at the moment, even in countries with a much better financial position than Sri Lanka.
So, to tell you the truth, I think you are in for a lot more 'surprises'. |
UKResident
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19 Mar 2009 12:07:29 GMT Report for Abuse
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Ceylinco F & G - Rs 70 Company attracted Rs. 11 billion deposits. They are also unable to repay depositors. CBSL had approved this company as a licensed deposit taker although the share capital was only Rs 70 !. CBSL has been negligent in allowing this company also to take deposits like GK.
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NonResident
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21 Mar 2009 10:40:41 GMT Report for Abuse
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CBSL approves a Rs. 70 Company.
This Company goes on to accept Rs. 11 Billion of Deposits.
Now Rs. 4.2 Billion is set aside to bailout these Companies!
What a fallacy!
Isn't calling them 'Morons' justified? |
Deepthroat
Joined: Dec 2008
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 21 Mar 2009 16:14:50 GMT Report for Abuse
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I do 'feel' for thoes who have lost their money due to GK mismanagement. Again I do not think Ceylinco Group's intentions were to rip-off anyone. There are a lot of good people who have put in years of hard work within the Group who have also been hurt by this. Its just the way the world works. In this case the snowball started to roll in far away places.
There is no such thing as a 100% safe investment. Most of these people who invested on this type of high return knew of the inherent risks. Even in good times 'unless you are investing in large scale drug and arms smuggling operations, how could anyone sustain paying 30% interest on investment? Even with the Kothalawela name or not the whole thing was illegal! They had to have 'known it. Come on... people are not stupid, especially when it comes to money. But greed, blinds better judgement. Again I am sorry for the people who lost money. I hope in time they would be able to recover some of their monies.
I also like the way the depositors have 'united' in their effort to go after the perpetrators. That is a 'first' in Sri Lanka. This would get the establishment and thoes who are to come in later and set up shop with an idea of 'taking the people for a ride' think twice.
For an interesting article on this and a list of the larger depositors names and the amounts they have put in go to
http://srilankareports.wordpress.com/2009/03/09/drlalith-kotalavela-swindlers-list/ |
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