Financial Times

Claremont Vs. Sampath
A Virgin Islands investor has complained to the Central Bank and the police and is suing Sampath Bank over the allegedly illegal sale of the company’s five percent stake in the bank.

A spokesman for lawyers F.J &G. de Saram, representing Claremont Capital Ltd, said the Central Bank and the CID were pursing a complaint that Sampath Bank had sold Claremont's five percent stake worth Rs 273 million.

Claremont has filed action in the Commercial High Court of Colombo against the bank’s action, a claim for the money and losses worth Rs 53 million and other costs.

The company said that around December 2002 it bought the five percent stake held by business magnate Harry Jayawardene.

Subsequently, the company alleges there was a reshuffle at Claremont with Aasim Masoon Mahmood, a director, transferring his shares to Tariq Mumtaz, the only other shareholder in the company. A board resolution was passed cancelling the authority of Mahmood as a signatory for the company and this decision was conveyed to Sampath Bank, the company alleged.

Claremont alleged that in October last year, it was surprised to learn that the shares had been sold and money transferred to the former director.

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