CID probe on People’s Merchant’s missing Rs 2,220 million

Unaudited for during Rajapaksa regime :

The People’s Merchant Bank has called in the CID to unravel the mystery behind Rs. 2,220 million which had gone missing from its funds during the Rajapaksa regime making the institution bankrupt.

The Bank’s management had also discovered a sinister plan hatched to make the Bank inactive and build a 30 storeyed building at its land housing the head office at Navam Mawatha, Colombo. Plans had also been hatched during the period 2013 to 2014 to close down this profit making banking institution by halting its business activities alltogether.

The financial loss of Rs. 2220 million is shown in the Bank’s audit reports too.

There are allegations that funds belonging to this bank were utilised to achieve political objectives and needs during the Rajapakse regime. It is alleged that a large account of the bank’s funds had been used to feed large gatherings at tamashas and danselas held at Temple Trees during the Rajapaksa period of rule.

A fleet of 20 low quality tractors imported on the pretext of importing Massey Ferguson tractors are lying idle gathering rust in a vehicle park in Kurunegala.

All this information had been supplied to the CID for investigation and Enterprise Development Minister Kabir Hashim has been made aware of the situation. During the Rajapaksa regime nearly 70 percent of this Bank’s shares were held by a financial institution friendly with the Rajapaksa clan and named in Panama papers. The Bank has now recovered these shares after the present government came to power.

Reports said the Bank is now being revived by minimising losses under the guidance of Minister Kabir Hashim.The Peoples Merchant Bank is a subsidiary of the People’s Bank.