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Golden Key Fraud in Sri Lanka
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rajithw
Joined: Dec 2008
Posts: 1
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 30 Dec 2008 11:00:28 GMT Report for Abuse
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[LK CAME FORWARD TO RESCUE Investors who are invested sakvithis place.now who can come forward to rescue investors in GK?
Parents should takecare their children studies in the school such under controle by Directors in GK. |
Gayan123
Joined: Dec 2008
Posts: 3
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30 Dec 2008 17:39:39 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.
100% agreed....
What about GK assets?? According to my knowledge, Mr. Kothalawala's plan was to liquidate Seylan Bank assets to pay GK depositors funds. I believe now he can't touch Seylan bank assets.. & Seylan is one of the most successful companies of Mr. Kothalawala. It seems that this happen not because of the global crisis, but because of the companies mismanagement. It seems that no one know what happen to Money?? how come that happen in a company like GK? Pls correct me if I'm wrong...
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paulson
Joined: Dec 2008
Posts: 5
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 31 Dec 2008 07:59:53 GMT Report for Abuse
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| There are several companies incorporated by GK Group Finance Director with the blessing of Mr. Perera and most of them are run by friends and relatives of Finance Director. I am an expatriate who had worked with GK Group as Senior Manager for 3 years in early 2000 and know in and out of Golden Key and mis-use of investors funds. They had no vision but opened companies left,right across mis-using investor funds. There were Managers and Directors visiting as many as countries as possible in the name of business development as they are entitled to US$250 per day as overseas allowance ! Even Foreign Minister of India is not entitled to any overseas allowances. I personally know a manager in Golden Key Group spending atleast 40 days overseas in every quarter to claim US$ 10000 in addition to his salary and other allowances. While overseas, this manager also get his 'seeni sambol' by DHL to China. It goes without saying there was clear cut mis-use of power, positions and money in Golden Key. |
bunpeiris
Joined: Jan 2009
Posts: 1
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1 Jan 2009 09:53:15 GMT Report for Abuse
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A couple of decades ago 7 Finance Companies crashed & depositors lost billions of LKR. Then Pramuka Bank crashed. Then THE GREAT SAKWITHI SWINDLE DAYLIGHT ROBBERY.
The Central Bank of Sri Lanka, regulator of finance establishments, the state & private banks has provided us with ample testimony to the efficiency of its regulatory machinations.
Golden key credit Card company has crashed which in turn made the run in Seylan Bank. Now the Central bank very proudly states it has taken prompt action to prevent the run on Seylan Bank. Seylan Bank would have been saved most possibly since we have a better man commanding the island. But what about the billions lost at Golden Key?
How nice! When the horses are gone, Central Bank arrives to close the barn doors. Magnificient cow boys.
How many more crashes, swindles & robberies to come solely due to the inefficiency of the Banker to the State, the Central Bank of Sri Lanka.
If we don't have expertise to regulate the financial institutions & banks,we better get foreign expertise.
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Joy09
Joined: Jan 2009
Posts: 18
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2 Jan 2009 14:06:48 GMT Report for Abuse
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There are many suggestions that the fall of GK is the consequence of the world economic crisis. I beg to differ. I was involved with the group for sometime and knew at least for the last four years that this would happen one day. GK was a time bomb that was ticking. If you ask me whether Mr.LK and others know about it-yes they were very much aware!. What is the role of Khavan Perera?- To me, he is only a scapegoat. Of course he and others enjoyed all the perks when the going was good, but he never stole anything. What is the credit card scam that LK is talking about? GK cards were hardly used for the last few years and did not have international acceptability, under the circumstances how can there be a massive scam to the tune of Rs.27 Billion? To my knowledge what happened is this:
Somewhere in 2003 GK had a deposit base of around Rs.6 Billion. They were paying interest on these deposits but the investment they made with these monies were not generating sufficient income to sustain the interest payments and other overheads. However to meet the interest payments GK started taking in new deposits on a monthly basis through its team of marketing executives. In this way every month the interest was being added to the capital and the requirement for the ensuing months became larger and larger. Thus the entire amount snowballed during the last five years. Several times, commencing in 2003 Central Bank was informed but they never did anything about it. Whether economically hard times or not this cannot go on for ever and somewhere in November 2008 they were unable to meet the ballooning interest payments and the time bomb burst. How can Mr.LK now pretend that he knew about it only few days back? I was privy to several top level meeting at Ceylinco from 1996 to 2003. They had two mottoes: 1) If you are alright for the time being don't worry about the future. 2) Business had to be carried on rugger tactics i.e. you run until somebody tackles you down. I would add a third one as Mr. LK's motto: when you are tackled down find a scapegoat. That is what he exactly did when Blue Diamonds controversy broke out in 2000. Although he too had signed all relevant board resolutions, he made Mr. Daya Senanayake the scapegoat. If he could do that to his childhood friend who was with him through thick and thin especially through the dark days of Blue Peacock diamonds, who is Khavan Perera for him? In my opinion Mr.LK had taken the public for a good ride all these years, please do not fall for him any longer. It is also very clear to me that he will not be able to settle all the depositors of GK since the sale of Seylan holdings can net only around Rs 300 Million.
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justman
Joined: Mar 2006
Posts: 1150
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 2 Jan 2009 14:20:56 GMT Report for Abuse
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Paulson
What you have revealed is disappointing of this company.Is LK any way involved in this scandal?He being a very generous philanthropist has it's own draw backs in running a company like this.If he is soft on the people who are below him then he is asking for trouble.There is a saying in Sinhalese for soft hearted people like him.' hitha honda gahani hamadama budding'.
I have given one of my premises for their branches and it seems that they were run well and with much thrift.
Ceylinco group must turn things around by hiring a person like Ken Balendra that might bring back much needed confidence.
Who ever who takes over must keep some liquidity in hand just for a situation like this and this high rate of interest is absurd and not realistic.We must blame the politicians for setting a bad example where they seems to be living an extravagant lives at the expense of the tax payer,their absurd foreign trip extravaganzas set a bad precedent to others and they must take the primary blame.
I am glad that the Central bank has not intervened in the affairs of this prestigious company as the company it self should be allowed to regulate it self for it's own good to keep the customer confidence high.That the way to go about in a free and fair society without creating an ugly nanny state.
I too run business in more than one country with no state intervention as I correct my self listening to the requirements and concerns of my customers as my customers are my judge, jury and the executioner.
Edited By - justman - 2 Jan 2009 14:23:36 GMT |
paulson
Joined: Dec 2008
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2 Jan 2009 15:19:28 GMT Report for Abuse
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Justman
As far as I know Ceylinco Group is divided into several sub-group or umbrella and each sub-group or umbrella have several companies under them. Under Golden Key group there are more than two dozen companies managed by the friends and relatives of Dy. Chairman and Finance Director. Most of these tranding companies have no business other than their CEO/COO/CED's taking flight to US/Middle East/Asia Pacific just to incur expenses and claim overseas allowances. Even I personally know an Accountant in Golden Key in early 2000 who used to come by bus from Bataramulla to GK Office in R.A. De Mel Mawatha was promoted to Chief Executive Director for one of the trading company within 12 months of joining ! This person have 'O' level education and provided with luxury car since last 7 years and visited more than 25 countries and travel like UN Secretary General GK investors funds. I don't think LK have any control over some of his group companies but it is hard to believe with so many degrees below his name LK is unaware of what is happening in GK group since last several years. As you rightly mentioned, there are excellent business people like Ken Balendra in Sri Lanka. LK should learn from Ratan Tata of Tata Group of India as to how the business to be run and what is corporate governance. |
justman
Joined: Mar 2006
Posts: 1150
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3 Jan 2009 00:33:53 GMT Report for Abuse
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Paulson
Thank you for your further revaluations of this company and we are disappointed and I will not show no consideration at all to them if they don't pay my monthly rent for the premises they have rented from me.Office of the Tata group is not far from me here in UK and I know a few people there and they send me their customers and seems to be well run,from what I heard and I think they just bought the land-rover company.The Ceylinco group seems to be a complicated web and they may even be trading between their own departments with a very little outside clientele.SL is famous for rolling money from some one to another and in Ceylinco this habit seem to be inter departmental,which is very odd. |
Gayan123
Joined: Dec 2008
Posts: 3
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3 Jan 2009 02:52:16 GMT Report for Abuse
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Paulson
What you say is very true. LK may have so many designations & companies.. but if he doesn't know how to manage it, that will be the end of it. He is running a risky business by letting the no of companies grow and not even knowing what they do. I believe LK have a COMPANY for each and every thing, some other company might do the same job through a separate department without creating a new company.
Anyway, Thank you. |
paulson
Joined: Dec 2008
Posts: 5
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3 Jan 2009 05:17:53 GMT Report for Abuse
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Gyan
You are right. LK have a company even to sell pastries and samosa's. You wont even believe there several companies in the group doing same business and competing each other ! Even LK may not know the Finance Director of GK Group opened more than a dozen companies to accomodate his friends and relatives and most of them just for name sake ! |
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