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Bank won't let him go
The People's Bank will not give up its efforts to recover loans due from Yasodha tycoon Yasasiri Kasthuriarachchi, although he was on Friday acquitted of charges of misappropriation in a sugar deal involving about Rs. 598 million, bank's chairman Lal Nanayakkara said yesterday.

Mr. Nanayakkara told the Sunday Times the bank had filed a separate case against Mr. Kasthuriarachchi to recover the money due from him. On Friday, Mr. Kasthuriarachchi was acquitted and discharged by Colombo High Court Judge S. I. Imam in a case where he was charged with misappropriation of a Rs. 598.5 million Pledge Loan, a loan taken on the value of goods imported.

The charges made against Mr. Kasthuriarachchi by the state were conspiring to misappropriate a sugar consignment brought under five pledge loans and the misappropriation of the sugar consignment. Mr. Kasthuriarachchi had obtained these loans between January 1995 and December of the same year.

The state counsel on Friday informed court that the prosecution was dropping the case due to inconsistencies in the evidence and because Mr. Kasthuriarachchi had paid back the amount by obtaining various short term loans.

The People's Bank Chairman said that there were disputes about the amount of money that Mr. Kasthuriarachchi should pay to the bank and that a joint audit was being carried out by the bank and Mr. Kasthuriarachchi's audit firm. When the joint audit was completed a report would be submitted to courts and the case would go on.

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