Former Finance Minister, ex-President Mahinda Rajapaksa and former Central Bank Governor Ajith Nivard Cabraal should be held responsible for the crisis situation faced by many micro finance companies in the country, said State Minister Eran Wickremetane yesterday.
State Minister Wickremeratne pointed out that the ex-regime did nothing when there was a financial crisis in the Asian market from 2008-2009. They pretended as there was nothing serious going on, he said. Even when the professionals of the Central Bank pointed out the repercussions of such ignorance to the Monetary Board, no steps were taken, Wickremeratne further said.
State Minister Wickremeratne also pointed out that there were only 28 finance companies in the country in 2005, which increased from a 60% by 2014. As at 2014, the number of finance companies had grown into 48, he said.
“This growth is a result of providing licenses to their relatives, friends and political allies. It was the same case when giving license to Leasing companies,” Wickremeratne further said.
Joining the Adjournment Motion on the ETI Finance crisis, State Minister Wickremeratne said that the Central Bank had taken several steps to curtail further such crisis situations. These include appointing an enforcement and resolution unit and a concessionary of six hundred thousand via an insurance policy, he pointed out.
Speaking of several finance companies in similar crisis situations, Wickremeratne said that there was a delay in legal action being taken against Central Investment and Finance PLC (CIFL). He said the Attorney General’s Department was looking into the matter.
Speaking of the first Singapore based investor to the ETI Finance: Blue Summit Capital Management, the State Minister said that the Central Bank’s Financial Intelligence Unit had not received any negative report in the said investor.
Speaking of irregularities taking place in the Entrust Holding Company who allegedly have robbed the general public of Rs.10 billion, Wickremeratne pointed out that there were “brothers of the MPs in the Joint Opposition in that company’s Board of Directors.”
He also raised concerns over the use of the word ‘bank’ by these finance companies which are not under the purveiw of the Central Bank.
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