Sri Lanka’s CB to take-over Entrust Securities
Jan 04, 2015 (LBO) - Sri Lanka's Central Bank is to take-over Entrust Securities Plc, primary dealer in government securities if the company fails to submit a viable restructuring plan today, Governor Arjuna Mahendran said.
If a re-structuring plan is not submitted by 6 p.m today the company will be taken-over to protect the government securities market and a state bank will be entrusted with the management, he said.
“We want to ensure stability and also confidence in the market and this was the reason we decided to offer the management of Entrust to a government bank." Mahendran said.
If there is fraud involved action will be taken against the management and other officials in the company.
So a horse, it appears, may have bolted; and given the indigenous aversion to process driven management it may be just the first of many. The allegedly resulting threat to the government securities market would seem to indicate that the horse sense has spread to the point where such a threat has been perceived.
Of course horsing around is nothing new and has become a global occupation. Nevertheless bolting horses may actually bring down the barn setting in motion a clean up that is long overdue and which government officials have failed to do so far in order most likely to protect their ‘brothers and sisters at arms’. It goes all the way up – or I should say down – to war crimes that have to be exposed and war criminals who have to be prosecuted rather than protected before the massive clean up and restructuring can begin.
It seems fairly clear that the institute for organizational development and design cannot be avoided if a great implosive collapse is to be avoided.
Sri Lankan taxpayers are a proud owners of a failed finance company now.