The Attorney General’s Department is planning legal action, against the F &G Company Ltd, another affiliated group of Lalith Kotelawala's Ceylinco Consolidated, for criminal breach of trust and financial misappropriation, on complaints lodged by depositors, sources from the AG’s department said.
This is the second probe by the AG after the crisis that enveloped the Golden Key Group.
The sources said that depositors, referring to the shocking scandal of large public deposits taken by Golden Key and its subsidiaries which are not being returned, have urged a thorough investigation to be carried out into the affairs of the F& G as well.
The AG has decided to intervene in an alleged scam at the company and necessary action will be taken on Monday, the sources said. The Financial Intelligence Unit of the Central Bank is to be directed to carry out investigations in addition to court action, they said. The collapse of the Golden Key Group has pushed the Ceylinco Group to the brink with one after another of its finance companies collapsing or struggling to cope with the requests of thousands of depositors.
The Merchant Bank of Sri Lanka (MBSL) recently set up a Management Council to assist the F&G Group to restructure the company and prepare a re-payment plan. Sources from the AG’s department said their probe is independent of the MBSL involvement, and action will be taken against the management if fraud and misappropriation are confirmed.
|
E-mail