Connected Goldquest parties still in NDB

A. P. Jagaiah, the Malaysian investor said to be the local backer of GoldQuest's efforts to secure ownership of the National Development Bank (NDB), last week sold around six percent of his holding to another Malaysian investor, A. B. Khalid, stockmarket sources said.

However there is strong speculation that the new investor is also connected to GoldQuest, the controversial multi level marketing firm. "NDB has not registered some shares of Fast Gain International, Credit Suisse Catana Ltd and Jagaiah's shares because we want 'more information' on these shareholders," a NDB official said. He said that it was strongly suspected that Fast Gains, (also believed to be a front company for GoldQuest) and Credit Suisse were acting in concert and the latest investor's Malaysian connection is fuelling speculation that he also might be connected to GoldQuest.

"Fast Gains has allegedly got 10 percent and Credit Suisse holds nine percent," he added.

As at the latest data, Renuka, a local company, holds around nine percent of NDB; 16 percent is owned by foreign funds; the government together with the Bank of Ceylon, the Treasury and Employees' Trust Fund has 21 percent, and the employees of NDB have 2.5 percent.