The fall of Nalaka Godahewa

Quibit · 1 The fall of Nalaka Godahewa Sun Dec 13, 2015 9:04 am

Quibit

Senior Vice President - Equity Analytics

Posts : 2661
Equity Stars : 11266
Reputation : 380
Join date : 2010-05-08

Teller · 2 Re: The fall of Nalaka Godahewa Sun Dec 13, 2015 9:18 pm

Teller

Moderator

Posts : 5640
Equity Stars : 17119
Reputation : 232
Join date : 2013-06-25
Location : Abhudhabi

He has worked out of procedures. So there should be a punishment.

EquityChamp · 3 Re: The fall of Nalaka Godahewa Mon Dec 14, 2015 12:06 pm

EquityChamp

Moderator

Posts : 4068
Equity Stars : 15418
Reputation : 1014
Join date : 2014-11-05

Let's the court decide the justice.In previous times we know how things were happned.

AUS79 · 4 Re: The fall of Nalaka Godahewa Thu Dec 24, 2015 6:28 pm

AUS79

Manager - Equity Analytics

Posts : 146
Equity Stars : 3409
Reputation : 3
Join date : 2015-06-19

http://www.thesundayleader.lk/2015/12/20/fresh-probes-against-errant-sec-officials-market-manipulators/

If CSE chairman is a such a fraud.....Mara *** lickers......what to say...? Is there justice system really exist in lanka to punish them???
CSE is supposed be the back bone of economy.....if they play it like their petty shop......what to say ??

worthiness · 5 Re: The fall of Nalaka Godahewa Thu Dec 24, 2015 7:25 pm

worthiness

Senior Vice President - Equity Analytics

Posts : 2577
Equity Stars : 8931
Reputation : 115
Join date : 2011-04-08

Present judiciary concerned, Mr. NG has a high chance of defending himself if he acted in compliance with regulations in his tenure of office.

Yahapalanaya · 6 Re: The fall of Nalaka Godahewa Thu Dec 24, 2015 7:31 pm

Yahapalanaya

Senior Vice President - Equity Analytics

Posts : 1817
Equity Stars : 5290
Reputation : 93
Join date : 2015-06-07
Location : North America

Fresh Probes Against Errant SEC Officials, Market Manipulators
by Dinuk Samarasinghe
[img(495.77778px,271.77778px)]http://www.thesundayleader.lk/wp-content/uploads/2015/12/174.gif[/img]

Colombo Stock Market

[size]
New probes are to be initiated against errant officials of Sri Lanka’s capital market watchdog – Securities & Exchange Commission of Sri Lanka (SEC) – including its defamed Former Chairman Dr. Nalaka Godahewa, several other officials and numerous high net-worth individuals by several law enforcement agencies and regulatory bodies.[/size]
According to a highly-placed source, fresh multi-pronged investigations are to be initiated by several agencies into alleged frauds and corrupt activities of onetime Chairman Dr. Nalaka Godahewa, sitting Deputy Director General Dhammika Manjira Perera, former Director/Board Member Ronnie Ibrahim and several other individuals for inter alia insider trading.
“SEC, FCID (Financial Crimes Investigations Division) probes will continue. In addition authorities will see the possibility of initiating action with the Bribery Commission and/or Presidential Commission Investigating into Large Scale Corruption and Fraud (PRECIFAC). Separate probes would be initiated by the Inland Revenue Department to see whether these individuals were engaged in any tax evasion activities. In addition, authorities will look into the possibility of instituting fresh prosecution with the Colombo Magistrate’s Court and/or continuing existing criminal action,” he added.
In July, Colombo Magistrate’s Court directed SEC to submit detailed report on share transactions since 2008 of Dr. Godahewa, along with three other individuals, in relation to alleged irregularities in Lanka Hospitals shares.

Appointment causes uproar
On September 2, 2012, The Sunday Leader exclusively reported that 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. (See www.thesundayleader.lk/2012/09/02/new-sec-chairman-a-pawn-of-the-stock-market-mafia/)
In the Annual Report for 2011 of Colombo Land & Development Plc, Godahewa is listed as the seventh 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.
The Quarterly Report of Colombo Land & Development Plc 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 per cent of the holding in 2011 and lent Rs. 60 million 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. 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 per cent although we cannot establish whether as a Director of Seylan Bank at the time Dr. 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. According to the Inland Revenue Department, whilst capital gains realized 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.
The Sunday Leader also reported at the time that many concerned citizens were of the view that Dr. Godahewa’s continuation as Chairman at the Sri Lanka Tourism Development Authority was unconstitutional and that his appointment at SEC displayed a very high degree of ‘conflict of interest’.

Errant officials arrested
On December 7, Dr. Nalaka Godahewa was arrested along with onetime SEC Director/Board Member Ronnie Ibrahim over a major financial fraud whilst SEC’s suspended Deputy Director General Dhammika Manjira Perera was arrested on December 4.
They were arrested by the FCID in connection with a donation of Rs. five million towards – Tharunyata Hetak, the one-time de-facto youth wing led and run by Hambantota District Parliamentarian Namal Rajapaksa- son of former President Mahinda Rajapaksa.
However, The Sunday Leader reported last week that these recent developments were apparently due to an ongoing tug-of-war and difference of opinion between SECs sitting Chairman Tilak Karunarathne, who himself was forced to resign allegedly under pressure by the former President Mahinda Rajapaka for difference of opinion. (See http://www.thesundayleader.lk/2015/12/13/sec-controversy-heats-up/)

SEC probes to continue
Last week speaking to The Sunday Leader, Incumbent SEC Chairman Tilak Karunaratna said investigations against Perera (and others) were conducted by the FCID independent of SEC, whilst Commission’s probes into these frauds will continue.
“The Commission will continue investigations into these irregularities.” (See http://www.thesundayleader.lk/2015/12/13/sec-controversy-heats-up/)
However, a Finance Ministry official was unable to confirm whether any investigations would be initiated by the Ministry. Finance Minister Ravi Karunanayake was unreachable at the time the paper went into press.