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Golden Key Fraud in Sri Lanka
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Sam007
Joined: Aug 2005
Posts: 381
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 25 Dec 2008 11:25:15 GMT Report for Abuse
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| This sounds like a scam to evade taxs. This money is not accounted for if it is mismanged by the person in question. I think it's plan to buy time to come out of the situation that the GK is in. |
justman
Joined: Mar 2006
Posts: 1149
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 26 Dec 2008 15:37:10 GMT Report for Abuse
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| This company has been moving in to many fields in a way that we feel a bit uneasy but that's business and without taking a calculated risk one will never move forward.Lalith must investigate any wrong doings and put his company right and we are as patriots are willing to support his efforts,though some will want to sling mud at you.It's the duty of the government to help them out as it's not the habit of a company like this to fleece it's depositors.So let's not talk this company to doom that has given much needed income to pensioners and the likes to oblivion.We would urge the depositors to stay put while the company sort it self out and Please don't withdraw and wait for the better times as this hasty exit will kill this company.It's like destroying Sri lankan to create Mihin and simple as that.Cylinco is a national asset and safeguard it well for the country's sake.Lalith must go after the culprits who had let that company down.Is this government trying to create another insurance coporation to house it's cronies? |
Deepthroat
Joined: Dec 2008
Posts: 8
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 27 Dec 2008 04:34:32 GMT Report for Abuse
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Now to address those who are suggesting that there should be a lynching of the CEO of Golden Key Company. Let's see who is so pure as to throw the first stone!
The company did no better or worse than any institution which has to survive. Of course the company bent the rules. And show us one which does not?
Unless its British Petroleum we are talking about every company is leveraged. Calling this mismanagement of the highest order and the outrage of these poor depositors.
It's the same old story. Greed. From the little old lady to the savvy international businessman.
For your money at Golden Key, you got a great tax free return without having to declare it to the IRS. Now that these people have come forward it might not be such a bad idea to have the IRS audit these folks and see if they have any more undeclared assets stashed away. These people are not exactly the types who are making monthly deposits into their daughter's dowry account at the National Savings Bank. They knew what they were getting into.
There is no such thing as an iron clad investment with these types of returns. Of course, we being Sri Lankan our memories are very short. Remember UTI, Mercantile Credit, and whole slew of so called registered financial institutions that paid out high interest rates. How about the Bank of Crooks and Cowboys Inc.? (BCCI)
Now that the Central Bank is involved. It could be bit frightening. If this thing takes off and there is truly a run on Seylan Bank. It would not be a good thing. They will collect nothing. Mr. Khavan Perera is being utterly loyal to Mr.Kotelawala. The way he has taken the blame means that this is damage control of the highest order. And I suspect other disgruntled Senior Directors who have been sidelined have been waiting for something like this to happen to Golden Key for years.
Golden Key Company started off as a two man operation with very little investment from Mr. Kotelawala in a small office at Ceylinco House in the early 80's. By the mid-80's the company's main business was operating small credit card company which had only debt and no assets. Golden Key was just about to be scrapped. Mr. Khavan Perera was offered the Director/General Manager's job and challenged to make it viable. He worked diligently with his small management team, about 300 or so original credit card customer's and less than 100 establishments (business's where the credit card was accepted as mode of payment). During those early days Golden Key started to take in security deposits of say Rs 50,000 against the issuance of its Premium Gold Card and offered a higher than market interest rate (rebate) which would be credited into the Gold Card accounts monthly. You could withdraw the interest component as a cash withdrawal at the front counter every month if you choose to do so.
For the rest of the article you can go to my blog: http://sandresuniversalportal.blogsp0t.com/
Edited By - Deepthroat - 27 Dec 2008 04:45:49 GMT |
Deepalku
Joined: Dec 2006
Posts: 8
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 29 Dec 2008 07:20:41 GMT Report for Abuse
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| This is not a time to act in malicious way and destroy the image of the ceylinco Group. The ceylinco Group is a mother of feed to many families in Sri Lanka and have done a great past years. so it is our duty to protect the Ceylinco Group as an Assets forever as Sri Lankans. give a reasonable time to Dr. LK to solve the problem and don't let other companies to fell down as Sri Lankan. Now it is time to intervene the Government to Protect the Ceylinco Group and by way protect the employments of the Group. |
paulson
Joined: Dec 2008
Posts: 5
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 29 Dec 2008 17:40:40 GMT Report for Abuse
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| The net worth of Ceylinco Group is around 20 Billion. The Golden Key investor fund is around 26 Billion. The Finance Director should be held responsible for this kind of fraud. |
Deepthroat
Joined: Dec 2008
Posts: 8
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29 Dec 2008 20:57:16 GMT Report for Abuse
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While its great to have a debate and weigh the facts. Why does this company's faliure demand so much attention? Because it is a one of the Ceylinco Group? This is a result of the times. Come on you guys! A bunch of people deposited money for returns above market, they were not paying withholding taxes. They knew the risks. Financial markets take a tumble. 150 banks in the US are expected to go under in 2009.
These people are still in fairly good shape. They may yet get some of the interest and capital back in a stuctured settlement. But if work them selves up to a frenzy thru the media and create a run on Seylan Bank then everyone's going to lose. |
justman
Joined: Mar 2006
Posts: 1149
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29 Dec 2008 21:28:22 GMT Report for Abuse
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My sympathy goes to all three parties to this unfortunate situation and the real culprit is this world wide credit crunch and global recession and all three are real victims of it.
My sincere advice to the depositors is not to panic and stay put,unless you are really desperate for the money you deposited.Try and withdraw only what you really require and to do otherwise is to kill the Golden goose that layed the eggs for you in the past.
yesterday I had met a such an investor from SL who frequents London regularly and she was in a terrific haste to withdraw her money from Cylinco though I strongly advised otherwise.She too is disappointed with the low return for her bonds and long turn investments in UK,money earned here over 3 decades.Since she has seen my business in UK is going on as usual with a fair number of customers patronizing my business wants me to accept some of the money and she has expecting an fairly a good interest for it,though she has no real reason for more income because of her regular good incomes from the pensions.I flatly refused her offer of money as her late husband withdrew a set of money deposited 2 decades ago where he got an good interest rate though I pitied him being an old man though I had no need for it nevertheless I added few more facilities to by business with his money.When a similar crunch came during the gulf war this old fellow had no pity for me and demanded all the monies deposited with me and I promptly gave it to him though it reduced the working capital I had to maintain by business.I was furious about this that he had to take out his money right at the time when I needed it the most to sit out that recession and he came to me a year late to reinvest with me to get that good return and I chased this ungrateful fellow and now his desperate wife trying it again to park her investments that are not giving any good returns and I chased her out as well.Though I have a fair amount of clients still patronizing my Establishments I barely making a profit as the prices I am getting is reduced with low number of customers and last thing I want to do is to accommodate a greedy and selfish client who wants to invest in my business as my best friend at this hour is my longstanding bank who understand the problems of maintaining any type of sanity in this horrible downturn and it is to their own interest that I survive this downturn.
I truly pity those misguided people who throw insults at this company. |
justman
Joined: Mar 2006
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29 Dec 2008 21:44:59 GMT Report for Abuse
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I was curious about the fate and the problems of GK and my friend who had read in the web thinks that GK may have thought that the safe haven for that money is abroad where the growth and returns would have been hedged against the high inflation,depreciation of the rupee and the lack of investment environment at present in SL.Unfortunately it was bad timing perhaps there is a global down turn all over the world but those invested abroad might recover earlier than if invested in SL.Perhaps it was a good move but the investors and this company must sit it out to enjoy the dividends if this capital is been exported.
I would be very awkward for this company to explain to it's investors and I am sure their intentions are Honorable to it's investors. |
Gayan123
Joined: Dec 2008
Posts: 3
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30 Dec 2008 03:21:03 GMT Report for Abuse
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Actually any depositors need not worry about Golden Key....Mr.Kotalawala has more than 300 companies in SL.. and Golden Key is one.. this company has been running for more than a decade.. just this one guy messed up the Golden Key.. there is a conference today at the BMICH for all the Golden Key depositors..he is going to reestablish the company.. and neither any depositor would loose any money.. since Mr.Kotalawala is not a cheater.. and nor will the Golden Key company will close down...
Well fool... open your eyes & see the group of companies.. Just see which company actually perform & which get the benefit from other profiting companies.. Mr. Kothalawala has only few performing companies. Don't try to mis lead people by giving recommendations like this. Instead, ask them to look into what ever the companies stability & investment patterns before investing in them. |
paulson
Joined: Dec 2008
Posts: 5
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30 Dec 2008 04:23:00 GMT Report for Abuse
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| Most of the Ceylinco Group of companies are floated just for publicity. The Finance Director of Golden Key, Saradha Sumanasekara should be held responsible for hiding the truth and misleading investors as well as management. The Finance Directors properties such as the collage he is running and independent business should be annexed by the government and auctioned for compensating poor investors. |
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