Colombo (News1st) – The Cabinet of Ministers decided on Wednesday (August 29) to liquidate the functions of the National Wealth Corporation Limited and NatWealth Securities Limited which were established under the Mahapola Higher Education Scholarship Trust Fund.
Co-Cabinet Spokesperson Minister Gayantha Karunatileka stated that the Cabinet of Ministers approved the proposal presented by Minister of Higher Education and Cultural Affairs Dr. Wijeyadasa Rajapakshe to invest all the funds owned by the Mahapola Higher Education Scholarship Trust Fund, in Government Banks and Central Bank Bonds, liquidating the functions of these two companies in order to formalize the investments.
He said the decision was taken in a bid to strengthen the Mahapola Higher Education Scholarship Trust Fund as the two companies established to invest in it have caused the fund certain disadvantages.
Minister Karunathilake added that the Cabinet also approved the proposal to amend the name of the Mahapola Higher Education Trust Fund Act to the Lalith Athulathmudali Mahapola Higher Education Trust Fund Act.
These two companies (National Wealth Corporation Limited and NatWealth Securities Limited) were established under the complete ownership of the Mahapola Trust Fund which was initiated as a concept of Minister Lalith Athulathmudali for the welfare of higher education students. The Mahapola Higher Education Trust Fund is headed by the Chief Justice.
Several issues arose surrounding companies which were established using the resources of funds with such an administrative structure.
The primary issue was the fact that funds of the National Wealth Corporation Limited and NatWealth Securities Limited were being diverted to an external company. It was even revealed at the Presidential Commission of Inquiry that these companies suffered serious losses due to the Central Bank bond scam.
What is the reason behind the decision to liquidate the companies?
What are the investments that have been made using the funds?
Shouldn’t an audit be conducted before these companies are liquidated?
News 1st is keeping a close watch.