Jun 04, 2020

Jagath Alwis's conduct lead to 'The Finance Company' closure Featured

The National Movement for Consumer Rights Protection alleges that the misconduct of businessman and administrator - Jagath Alwis has led to the closure of 'The Finance' Company PLC.

With a history of 80 years, The Finance Company PLC was one of the most prominent non-banking financial institutions in Sri Lanka.

Chairman of the movement - Ranjith Vithanage has pointed out the above fact in a letter to Prime Minister Mahinda Rajapaksa.

The letter notes that in 2000 and 2003, the bankrupt The Finance Company PLC had heavily invested in shares of ICBT Campus and American National College (ANC), which are two institutions of the Ceylinco education subsidiary.

It further alleges :

Mr. Jagath Alwis, the chairman of C.E.G. Holdings, which is the mother company of these institutions, has deliberately evaded paying dividends to The Finance Company for over 10 years and paid them to Ceylinco Insurance instead, to consolidate his own position.

In 2008, he had founded the Ceylinco Education Group in 2008 with shares from these two institutions. Six months after the collapse of the Golden Key company, he had fraudulently changed the name to C.E.G. Holdings in a bid to portray that the company wasn't a part of of Ceylinco Holdings.

Accordingly, Jagath Alwis has deliberately evaded paying dividends to The Finance Company and any of its affiliate companies.

The following details have also been included as attachments for the attention of the PM.

 

According to the list of shareholders of ICBT and ANC, The Finance Company PLC alone has one million shares.

The letter also states that the Central Bank was compelled to pay Rs. four billion rupees to Golden Key depositors due to the conduct of Jagath Alwis.

Since Jagath Alwis is a prominent shareholder of Ceylinco Insurance, he has indirectly led the dividends to the insurance company, which were rightfully entitled to The Finance Company PLC and other companies, the National Movement for Consumer Rights Protection alleges.

It is said that the value of one million shares owned by The Finance Company PLC is worth over Rs. 500 million.

It is also revealed that Jagath Alwis has used his personal wealth for ventures including ICBT Campus, American National College, Wycherley International College, Modern Montessori International, CEC Events, Netassist and Chaks Capital (Pvt) Ltd.

Upon contacting Mr. Ranjith Withanage, said that he had written to comprehensively to Prime Minister Mahinda Rajapaksa on this regard.

Ranjith

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