Down the Drain

Central Bank today directed its banking supervision department to liquidate Pramuka, after cancelling its licence.
An attempt to revive the suspended bank was put down by the Central Bank as it involved channelling Rs. 600 million of taxpayers money into the venture.rn

rnThe Central Bank says the request was dropped as the directors and shareholders did no demonstrate any commitment to contribute fresh funds to revive Pramuka. rn

rnThe decision under the Central Banks recently amended Monitory Law Act came after Pramuka directors written and verbal responses to the findings of the banking supervision departments on December 13.rn

rnThe Central Bank has also referred several irregularities at Pramuka to the Criminal Investigation Department, the commissioner General of Labour and the Commission to Investigate Allegations of Bribery or Corruption. rn

rnIndustry experts say that Pramuka Banks depositors are likely to get about a third of their money back if liquidation proceedings are kicked of