Financial Times

Now Ceylinco Profit Sharing accused of mismanaging depositors funds

By Bandula Sirimanna

Close on the heels of the collapsed Golden Key Credit Card Company, another Ceylinco venture based on Islamic Shariah Law, Ceylinco Profit Sharing Investment Company Limited (CPSICL) is having a severe financial crisis with 10,000 depositors demanding their money back.

Their total investment amounts to Rs.800 million. Depositors of Ceylinco Profit Sharing told the Sunday Times FT that they have not been paid their profit shares nor have they been able to withdraw their deposits since February this year.

The depositors held discussions with the management on several occasions but they have failed to come with a payment plan. Depositors then formed a committee and wrote to the Central Bank but there has been no reply up to now, Mumtaz M. Rahman, President of the Depositors’ Action Committee said. Disclosing the mismanagement at Ceylinco Profit Sharing Investment Company Ltd, he noted that the company has failed to conduct an audit for last five financial years and audit report for 2003/04 was issued only in June 2009.

Ceylinco Profit Sharing has made most of its' investments within the Ceylinco Group mainly F&G and Ceylinco Sussex Collage. All the Directors have resigned systematically from the company which is left with only two Directors while one of them is remanded in the F&G case, he said. The company has granted loans to certain firms and individuals with out any collateral or security, he alleged. Depositors said the company does not have money for its day-to-day expenses.

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