Recommendation

July 18, 2009 (LBO) – Court appointed accountants probing a failed financial firm in Sri Lanka’s Ceylinco group have recommended that its chairman directors “bring in” an additional 13 billion rupees to start repaying depositors. The Golden Key Credit Card Company collapsed with debts of 26 billion of which 12.7 billion is capital and 13.2 billion is interest according to initial findings of a Supreme Court appointed committee of chartered accountants.

The committee says two sets of accounts were found and some assets have already been mortgaged to other parties, complicated a liquidation process.

Reconciling

The committee’s report to court says an audit is underway to reconcile Golden Key Credit Card Company’s computer system and customer deposit confirmations.

“The company has two sets of accounts one from the IMAS system (computer system) and a set of corrupt accounts prepared on excel sheets,” the report said citing information provided by Golden Key accounts department employees.

The three court appointed accountants, Lakshman Watawala, Nelson Nagasinghe and Mahendra Panditha, are probing Golden Key businesses and assets to repay depositors by selling them.

They have requested court t