CIFL depositors urge formation of joint Depositors Forum to safeguard investments in all finance companies
View(s):Depositors at the crashed CIFL (Central Investment and Finance Ltd) are preparing to file objections as a prelude in appeal in the Supreme Court against the Appeal Court dismissal of its case against the Central Bank (CB)-led recovery plan.
K. Wijaya Gunawardena, President, CIFL Depositors Association (CIFLDA) said the collapse of the case has seriously affected the moral of the members and they are much concerned that there could be a spate of deaths due to heartburn, shock and despair. The CIFLDA is trying to seek the assistance of a rights group or any other organisation to save their members from mounting medical bills, particularly those who are unable to pay.
He said that the least the government could do is save these lives because all these happened due to the irresponsibility of the CB. He said that the finance companies are set up with the complete knowledge of the CB but it has now become completely unreliable.“Therefore at least to save the depositors in the existing finance companies the CB should create a safety net by way of an insurance framework so that whenever a finance company fails depositors funds could be refunded,” he said.
He suggested that all the depositors of the existing finance companies should form into an association like a deposiotrs forum and demand that the CB set up this safety net.
Apart from the activities of the CIFLDA, a large number of depositors have complained to the Police Fraud Bureau. An official of the Fraud Bureau told the Business Times that 218 CIFL depositors have complained against the CIFL and these were forwarded to the Attorney General for advice on prosecution.
(QP)