Checkmate

Moves by DFCC Bank to invest in National Wealth Corp. were put on hold following defamatory reports by the state media on Tuesday.
NatWealth, which is a fully owned subsidiary of the Mahapola Trust Fund, has denied allegations of misappropriation of funds.rn

rnState news reports alleged that Rs. 3.16 bn in Mahapola Funds were illegally transferred to float NatWealth, Rs. 200 mn loan given to key staff to buy shares in the company and Rs. 10 mn loan was given as operational expenses last August. rn

rnNatWealth has sent a letter of demand to the Chairmen of state media houses, claiming Rs. 1 bn in damages as compensation for the firm and its professional staff.rn

rnNatWealth was floated off last April, with private sector expertise to manage government funds. rn

rnThe firm has a license from the Central Bank to deal in the primary market for government debt and is also a member of the Colombo Stock Exchanges new debt trading system endash DEX.rn

rnLargely seen as an upcoming debt house, NatWea