Touchwood investors raise concerns
Questions are being raised on whether authorities should suspend trading in stocks of the troubled forestry firm Touchwood when the company is not fully functional, industry sources said.
One depositor told the Business Times that no one picked up the phones at the company office. “I found out that their office has been relocated to Nawala from Joseph Lane, Colombo 4.” He raised concerns as to why the regulators are allowing this share to trade on the stock exchange
Asked about these concerns, Touchwood Investments chairman, Lanka Kiwlegedara confirmed that they are in the process of shifting their Colombo 4 office to Nawala. “All the former staff (more than 70 of them have abandoned the company. There is now 10 new staff,” he told the Business Times. He added that they will start operations at the new office on April 1. The Securities and Exchange Commission (SEC) says that since there is a case concerning Touchwood in court, with an investor seeking to wind up the company, they are unable to suspend trading as it’s a matter of subjudice.
SEC officials said however they are pursuing the company’s founder Chairman Roscoe Maloney and his wife Swarna for questioning on alleged frauds related to inter-company transfer of funds. Last year Touchwood trading was suspended twice but lifted after clarifications by the company.