ECONOMYNEXT – Sri Lanka’s Attorney General has ordered police to take the statements and bring to court several directors of Sri Lanka’s ETI Finance (Pvt) Ltd, a collapsed finance company, after naming them as suspects for alleged mis-appropriation of deposits and money laundering.
This week police arrested several directors of ETI Finance, belonging to the founding Edirisinghe family who have since been released on bail.
Based on evidenced revealed at a Commission of Inquiry, ETI Finance had maintained undisclosed accounts from which money had been diverted for private use, according to instructions given to police a spokesman for the AG said.
An on-site examination by the central bank had revealed undisclosed accounts of 6.48 billion rupees by the 22.10.2012 according to testimony given at the commission.
Despite facing a severe liquidity crisis, the company had misled the public that it was a doing well and taken deposits, the commission had found.
As a result directors are alleged to have violated sections 386 and 403 of the penal code involving criminal breach of trust and mis-appropriation of funds.
Directors are also alleged to have violated Sri Lanka’s anti-money laundering laws.
The Edirisinghe family had placed a number of assets including a broadcasting company and a jewellery firm to make up for capital deficiencies at ETI Finance, which have since been sold to settle part of the money owed to depositors. (Colombo/Jan09/2021)