FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com


Join the forum, it's quick and easy

FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com
FINANCIAL CHRONICLE™
Would you like to react to this message? Create an account in a few clicks or log in to continue.
FINANCIAL CHRONICLE™

Encyclopedia of Latest news, reviews, discussions and analysis of stock market and investment opportunities in Sri Lanka

Click Link to get instant AI answers to all business queries.
Click Link to find latest Economic Outlook of Sri Lanka
Click Link to view latest Research and Analysis of the key Sectors and Industries of Sri Lanka
Worried about Paying Taxes? Click Link to find answers to all your Tax related matters
Do you have a legal issues? Find instant answers to all Sri Lanka Legal queries. Click Link
Latest images

Latest topics

» Latest Financial Status and Future Outlook of SMB Finance PLC
by ChatGPT Yesterday at 11:15 pm

» Latest Financial Status and Future Outlook of Overseas Realty PLC
by ChatGPT Yesterday at 11:00 pm

» Latest Financial Status and Future Outlook of Merchant Bank of Sri Lanka & Finance PLC
by ChatGPT Yesterday at 10:55 pm

» McDonald’s අපේ නෙමෙයි අපේ බෝස්ගේ – අබාන්ස් කියයි
by ChooBoy Yesterday at 10:19 am

» AI Assistance for Stock Market Research and Analysis
by ChatGPT Yesterday at 7:12 am

» Comparative Analysis of the Insurance Sector
by God Father Tue Mar 26, 2024 11:46 pm

» Sri Lanka: Why Pay Exorbitant Taxes?
by ChatGPT Tue Mar 26, 2024 10:52 pm

» LANKA CREDIT AND BUSINESS FINANCE PLC (LCBF.N0000)
by K.R Tue Mar 26, 2024 3:15 pm

» CENTRAL INDUSTRIES PLC (CIND.N0000)
by D.G.Dayaratne Tue Mar 26, 2024 9:11 am

» SIYAPATHA FINANACE PLC (SLFL.N0000)
by ChatGPT Tue Mar 26, 2024 7:58 am

» FINANCE AND LEASING SECTOR
by ChatGPT Mon Mar 25, 2024 6:45 am

» LOLC FINANCE PLC (LOFC.N0000)
by ChatGPT Mon Mar 25, 2024 6:36 am

» CIC HOLDINGS PLC (CIC.N0000)
by ChatGPT Mon Mar 25, 2024 6:18 am

» UNION ASSURANCE PLC (UAL.N0000)
by ChatGPT Mon Mar 25, 2024 6:15 am

» First Capital Holdings PLC: Current Financial performance and future outlook
by God Father Sun Mar 24, 2024 10:58 pm

» LankaBizz: Sri Lanka's First ever Artificially Intelligent (AI) Business and Research Assistant
by God Father Sun Mar 24, 2024 7:27 am

» HOTEL AND TRAVEL SECTOR
by ErangaDS Wed Mar 20, 2024 7:22 am

» CIC Holdings Good Times Ahead
by ashan silva Mon Mar 18, 2024 11:00 am

» EPF Fund keep eye on low P/E Shares
by K.R Mon Mar 18, 2024 8:45 am

» SINS - the Tailwind effects of a crisis hit Economy
by Hawk Eye Mon Mar 18, 2024 8:37 am

» Ceylon cold stores
by Hawk Eye Mon Mar 18, 2024 8:25 am

» Asha securities Provide buy signal for CIC
by ddrperera Fri Mar 15, 2024 1:10 am

» CSE ready for another Downtrend?
by D.G.Dayaratne Thu Mar 14, 2024 11:24 am

» LankaLAW Forum : Sri Lanka’s #1 Discussion Platform for Legal Questions and Answers
by blindhog Thu Mar 14, 2024 9:14 am

» Sri Lanka poised to benefit from demand surge for ‘non-China origin’ graphite
by samaritan Wed Mar 13, 2024 1:31 pm

LISTED COMPANIES

Submit Post
ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post


CONATCT US


Send your suggestions and comments

* - required fields

Read FINANCIAL CHRONICLE™ Disclaimer



EXPERT CHRONICLE™

ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)



CHRONICLE™ YouTube

Disclaimer
FINANCIAL CHRONICLE™ Disclaimer

The information contained in this FINANCIAL CHRONICLE™ have been submitted by third parties directly without any verification by us. The information available in this forum is not researched or purported to be complete description of the subject matter referred to herein. We do not under any circumstances whatsoever guarantee the accuracy and completeness information contained herein. FINANCIAL CHRONICLE™ its blogs, forums, domains, subdomains and/or its affiliates and/or its web masters, administrators or moderators shall not in any way be responsible or liable for loss or damage which any person or party may sustain or incur by relying on the contents of this report and acting directly or indirectly in any manner whatsoever. Trading or investing in stocks & commodities is a high risk activity. Any action you choose to take in the markets is totally your own responsibility, FINANCIAL CHRONICLE™ blogs, forums, domains, subdomains and/or its affiliates and/or its web masters, administrators or moderators shall not be liable for any, direct or indirect, consequential or incidental damages or loss arising out of the use of this information. The information on this website is neither an offer to sell nor solicitation to buy any of the securities mentioned herein. The writers may or may not be trading in the securities mentioned.

Further the writers and users shall not induce or attempt to induce another person to trade in securities using this platform (a) by making or publishing any statement or by making any forecast that he knows to be misleading, false or deceptive; (b) by any dishonest concealment of material facts; (c) by the reckless making or publishing, dishonestly or otherwise of any statement or forecast that is misleading, false or deceptive; or (d) by recording or storing in, or by means of, any mechanical, electronic or other device, information that he knows to be false or misleading in a material particular. Any action writers and users take in respect of (a),(b),(c) and (d) above shall be their own responsibility, FINANCIAL CHRONICLE™ its blogs, forums, domains, subdomains and/or its affiliates and/or its web masters, administrators or moderators shall not be liable for any, direct or indirect, consequential or incidental violation of securities laws of any country, damages or loss arising out of the use of this information.


AI Live Chat

You are not connected. Please login or register

New SEC Chairman – A Pawn Of The “Stock Market Mafia”

3 posters

Go down  Message [Page 1 of 1]

sriranga

sriranga
Co-Admin

By Faraz Shauketaly

New SEC Chairman – A Pawn Of The “Stock Market Mafia” 10-new10

The appointment of Dr Nalaka Godahewa as Chairman of the Securities Exchange Commission far from putting the controversy surrounding pump and dump and market manipulation at the Colombo Stock Exchange at rest, has caused an uproar amongst seasoned investors. The uproar has been fuelled by Dr Godahewa’s links to Dilith Jayaweera who admitted to the media last week that he had received ‘five’ letters – and he was talking about events surrounding the Securities Exchange Commission (SEC).

Nalaka Godahewa’s links and investments in companies in which Dilith Jayaweera is also involved has seen him being appointed Chairman of George Stuarts Finance and Colombo Land & Development Plc.
Godahewa was also previously a Director at Seylan Bank. In the days leading to his SEC appointment Godahewa resigned his position at George Stuarts Finance.

In the Annual Report for 2011 of Colombo Land & Development Plc Godahewa is listed as the 7th largest shareholder holding 2,301,000 shares – valuing the shares at the end of 2011 at Rs 126.3 Million. The shares are listed as being on lien to Seylan Bank.

New SEC Chairman – A Pawn Of The “Stock Market Mafia” 10-0210
Our Previous Exposés On Nalaka Godahewa
The Quarterly Report for March 2012 shows Godahewa holding the same portion of shares but the value of the shares had crashed to Rs 39 from the 2011 close of Rs 54.90. A notional loss of Rs 36.5 Million however should only have made Seylan Bank become alert as a tranche of 2,301,000 shares are on lien to them. If Seylan Bank was exposed to 50% of the holding in 2011 and lent Rs 60 m to Godahewa by March 2012 the value of those shares had dipped by Rs 36.5 Million or more than half of the amount Seylan Bank lent Godahewa – one time Director of the bank.

New SEC Chairman – A Pawn Of The “Stock Market Mafia” 11-0210

The Quarterly Report for June 2012 shows Godahewa still holding to his 2,301,000 shares but the share value had dropped below March 2012 levels. In June 2012 the share was trading at Rs 32.20 and Godahewa was staring at a notional (paper) loss of a staggering Rs 52.3 Million – perilously close to the Rs 60 Million he obtained from Seylan Bank. On the basis that Seylan Bank granted a loan of Rs 60 million when the shares were worth Rs 126.3 Million, (keeping in line with the norm of 50% although we cannot establish whether as a Director of Seylan Bank at the time Godahewa received preferential treatment).

In 2012 according to documentation publicly available from the Colombo Stock Exchange under statutory disclosure rules, Dr Godahewa is reported as having made several purchases of stock in Colombo Land: 9,100 shares at Rs 30.00; 35,300 shares at Rs 30.50. None of these shares are listed as having a lien to any bank.

A separate entity, Pasikudah Beach Resort is listed by Citrus Leisure as a subsidiary with notes stating that a sum of Rs 168 Million was spent for Pasikudah Beach Resort to purchase prime land in Pasikudah. The ownership of this land is disputed with the Swiss nationals owning the property maintaining that they have never sold the land. The land was sensationally purchased by the Deputy Mayor of Kotte Madura Vithanage for Rs 60 Millon, who sold it several days later to Pasikudah Beach Resort, a company connected to Dilith Jayaweera, for Rs 168 Million. A legal battle to establish the authenticity of the ownership is ongoing.

New SEC Chairman – A Pawn Of The “Stock Market Mafia” 10-tab10

It has also been revealed that Godahewa is listed as the owner of 1,091,700 shares valued at Rs 10.7 Million in Waskaduwa Beach Resort Plc making him the 10th largest shareholder there. The entire shareholding is on lien to Seylan Bank and under normal circumstances the bank would have advanced Godahewa 50% of the value making the bank’s exposure Rs 5.2 Million. The interest Godahewa is likely to attract would work out at Rs 880,000 per year or Rs 74,000 per month. With the interest on the other loan for the Colombo Land & Development shares, Godahewa is servicing a loan of Rs 700,000 plus per month to Seylan Bank.

Additionally Godahewa has a tranche of 500,000 shares in Waskaduwa Beach, making him the 16th largest shareholder with that – occupying both 10th and 16th position. This tranche of shares is not on lien to Seylan Bank.

According to the Inland Revenue Department, whilst capital gains realised on investments on the Stock Exchange are not ordinarily subject to income tax, monies utilized to service loans will be deemed to be income and taxed accordingly. Further reports state that a group of Sri Lankan citizens are readying themselves to petition the Courts claiming that Dr Godahewa’s continuation as Chairman at the Sri Lanka Tourism Development Authority is unconstitutional and that his appointment at SEC displays a very high degree of ‘conflict of interest’.

The web of Godahewa’s link lays bare his claim that he is permitted to hold office at Sri Lanka Tourism because Colombo Land & Development does not operate a hotel and therefore is not in breach of the Tourism Act. A legal eagle told us that was a singularly one-sided view of the events, The Tourism Act specifically debars anyone who has a link in operating hotel services from holding office.

But Godahewa has demonstrated that he does have a link or indeed had such a link at some point whilst he continued to hold office at Sri Lanka Tourism.

As our diagram shows, Godahewa is intrinsically linked to Colombo Land & Development, Waskaduwa Beach Resort and Kalpitiya Beach. All of these are patently also linked to Dilith Jayaweera directly or through other companies in which Jayaweera has interests.

By his own admission to the media Jayaweera has admitted to being the recipient of letters from the SEC but has denied being part of any alleged ‘Mafia’ operation at the SEC in what is widely believed to be Mr Jayaweera alluding to allegations that he was part of the pumping and dumping and market manipulation at the Colombo Stock Exchange.

New SEC Chairman – A Pawn Of The “Stock Market Mafia” 10-tab11

As part of the work that Nalaka Godahewa will have to oversee as Chairman of the SEC, would be the investigations that are already underway. The former Chairman of the SEC, Tilak Karunaratne told the President that he had sent out 226 letters to investors asking for more information. The prospect of Godahewa overseeing an investigation into his business partner or indeed a fellow shareholder in the form of Dilith Jayaweera has caused more serious questions to be raised as to the integrity, probity and transparency of any investigation being contemplated or already under way by the SEC. A number of telephone calls and e-mails addressed to Nalaka Godahewa went unanswered; the opportunity for Godahewa to respond to this article went unheeded.
(faraz@thesundayleader.lk)
Chairmen Of The Securities
Exchange Commission
2012 - Nalaka Godahewa (current)
2012 - Tilak Karunaratne
2011 - Mrs. Indrani Sugathadasa
2010 - Mrs. Indrani Sugathadasa
2009 - Udayasri Kariyawasam
2008 - Udayasri Kariyawasam
2007 - Dr. Gamini Wickramasinghe
2006 - Dr. Gamini Wickramasinghe
2005 - Dr. Dayanath C. Jayasuriya
2004 - Dr. Dayanath C. Jayasuriya
2003 - Lt. Gen. J.E. DENIS PERERA
VSV.D Litt (Honoris Causa) FCMI
2002 - Mr. M.L. Mack

http://www.thesundayleader.lk/2012/09/02/new-sec-chairman-a-pawn-of-the-stock-market-mafia/

http://sharemarket-srilanka.blogspot.co.uk/

sapumal


Vice President - Equity Analytics
Vice President - Equity Analytics

thanks for sharing this

Sidath

Sidath
Manager - Equity Analytics
Manager - Equity Analytics

As a govt employee ( at SLIC, Tourist Board and now SEC) doesn't he have make a declaration of assets?

Sponsored content



Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum