Committee named to probe BOC-Seylan deal
A 3-member committee to ascertain the circumstances in which the state-owned Bank of Ceylon (BOC) had sold its 7.5 per cent stake in Seylan Bank has been appointed by the Ministry of Public Enterprises Development.
Kabir Hashim, the minister in charge of this Ministry told the Business Times that he has appointed this committee to take necessary action as the Prime Minister has asked to carry out a comprehensive investigation. The transaction was cancelled on the directive of the PM on the grounds that strategic stakes held in banks are not for sale.
Priyantha Mayadunne, Additional Secretary of the Ministry, H. R. H. Swarnatilleke, CFO of the Ministry and an independent lawyer were appointed, the Minister said. “I requested this committee for a report in 14 days.”
Separately the ministry has asked the BOC board of directors to submit all reports regarding the decision taken by them to sell the Seylan stake.
The government has also initiated an investigation through the Criminal Investigations Department (CID), Mr. Hashim said as this transaction was illegal. “It has flouted the Ministry of Public Enterprises’ direction. Therefore it’s illegal. That’s why we informed the police.” Meanwhile BOC board sources say they were unaware of any circular requiring the ministry permission to sell what they called was a ‘non-strategic’ stake.