Financial Times

Pramuka Bank issue drags on
By Quintus Perera
The Central Bank said last week that while their main concern is to safeguard Pramuka Bank depositors, the process of liquidating the bank would be used only as a last resort. A spokesperson for the Bank added that they were hoping to restructure the failed bank and were awaiting viable proposals.

Meanwhile Palitha Gamage, President, Pramuka Stakeholder's Association told The Sunday Times FT that another Pramuka depositor, L S Perera of Pagoda Road, Nugegoda has died following a heart failure raising the number of deaths to four, so far. It was unclear whether the man had died due to natural causes or whether it was linked to concerns over Pramuka.

The Pramuka issue was also raised in parliament on Wednesday when Commerce Minister Ravi Karunanayake, speaking during the debate of the adjournment motion on the privatization process of the People's Bank, said, "the Central Bank Governor should take the responsibility for the Pramuka Bank (collapse). He should have resigned. The Pramuka Bank should be resurrected and depositors protected."

Pramuka depositors also submitted their own restructuring proposal on September 17 to the Central Bank. K C Vignarajah, Chairman, Depositors' Association Restructuring Committee, said under the proposal there are viable plans to raise Rs. 700 million and a scheme of incentives to depositors who may like to be involved in the collection of dues. Such depositors would receive a 3 percent commission from any monies they collect.

Likewise, the proposal also offers incentives for bank employees to cut overheads.
Gamage said there are more than 9,000 depositors who are members of the association out of the 15,000 Pramuka depositors. Those interested in joining the association could send in their applications to 29A, Ananda Balika Mawatha, Pitakotte, Kotte or contact him on telephone No..0712-365064.

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