Min. Ravi Karunanayake to initiate legal action against Mahinda Rajapaksa

Min. Ravi Karunanayake to initiate legal action against Mahinda Rajapaksa

Written by Staff Writer

11 May, 2015 | 7:38 pm

Minister of Finance Ravi Karunanayake announced on Monday (May 11th) that he is preparing to initiate legal action against former President Mahinda Rajapaksa, claiming damages of two billion rupees since his reputation had been damaged by false claims made by him.

Minister of Finance Ravi Karunanayake noted that he has instructed his lawyers to file a 2 billion rupee lawsuit. The Minister also noted that individuals who are leveling charges against him have been accused of fraud themselves with regard to the Helping Hambantota project.

Min. Karunanayake also noted that the individuals who level charges at him had ruined the country’s economy and are not questioning as to why development projects are being stopped. In this regard the Minister of Finance challenged the Former Minister of Finance to a debate and even went to the extent of consenting to travel to wherever the former Minister of Finance sees fit.

The Chairman of the Lankaputhra Development Bank, who also attended the media briefing alongside Minister Karunanayake pointed out that under the previous regime, the bank had acted in violation of its primary purpose which is granting loans for small and medium scale enterprises.

Chairman of the Lankaputhra Development Bank K.H. Lasantha Gunawardena noted that large portions of loans that were granted have been written off as bad debts. He revealed that up to date there is a sum of 1.6 billion rupees written off as bad debts. Lasantha Gunawardene also revealed that after initiating a credit audit they have been able to witness that through Gem and Jewellery a loan of 5 million rupees was obtained after leaving some quartz stones which had no value as collateral along with a false estimation value of 1.4 million rupees.

He went on to note that a loan of 30 million had been given using a deed to a temple as collateral, according to the Chairman of the Lankaputhra bank even the monks residing at the temple were unaware of it.

Revealing further details about transactions which transpired under the previous regime the Chairman of the Lankaputhra Bank stated that  75 million rupees was given as a loan to an individual who carried out political work in Trincomalee, in order to build boats. Another businessman received a loan of 330 million without any due diligence being undertaken.

He further added that when the bank refused to provide the loan, a letter was issued by the Presidential Secretariat instructing that the loan be granted.

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