MTD Walkers settles Exim Bank but not local banks

Colombo (News 1st): The saga of MTD Walkers PLC continues with no end in sight. Following intense concern that MTD Walkers PLC was in a nose dive, several developments have taken place. This includes the settling of a US$19 million facility from EXIM Bank Malaysia. This settlement was done directly by MTD Berhad. However, the exposure to the local banks by MTD Walkers Sri Lanka has not been resolved and a number of local banks have sought court action. The latest attempt to save the company came in the form of an offer from companies connected to Supreme Sat who nominated two directors to the board of MTD Walkers PLC. After several weeks of waiting, the offer appears to have fallen apart, as we notice that the two directors have stepped out and two new independent directors have joined the board from a company associated with Korean SPA. In the meantime, the Peoples Bank's original remit was to develop the cooperative movement, rural banking and provide financial support to the agricultural sector. The focus was very much on the agricultural sector. Although several movements indicate that MTD Walkers are on the threshold of resolving their issues, the fact remains that the People's Bank continued to extend facilities to the MTD Walkers Group in spite of the fact that Jehan Amaratunga enjoyed cross-directorships in the two entities. The People's Bank has been at great pains to justify the massive lending, with it's then Chairman Hemasiri Fernando issuing a press release justifying their action. The Central Bank supported the People's Bank by stating that regulations have been met. However, the monies of the people are at stake, with no resolution in sight. In the matter of the Perpetual Treasuries and the then Governor of the Central Bank, Sri Lanka's Presidential Commission of Inquiry held that the Governor was responsible for the scam on the basis of a conflict of interest. The People's Bank extended facilities to MTD Walkers PLC although the potential for a clear conflict of interest existed, where Mr. Amaratunga was a director in both entities playing a clear role at MTD Walkers PLC, as the Deputy Executive Chairman. How many other facilities have been granted by the People's Bank merely relying on assurances of Amaratunga, with the endorsement of the Central Bank of Sri Lanka at the expense of the people? The People's Bank was not set up to fund government infrastructure projects, the very act creating the People's Bank states that it was set up to help the people of the country for the agricultural sector and the cooperative movement.

The people are watching!