Over 2000 GK depositors receive their 41% repayment

With the government injecting Rs.544.3 million through the Treasury, 41 per cent of deposit money owed to around 2,200 disgruntled Golden Key (GK) depositors has been settled within 21 days after the July 24 launch of the new repayment process, GK company oficials confirmed.

All 2,200 cheques were sent to depositors with deposits up to Rs.2 million by mail during the period July 24 to August 14 after stringent checks under audit supervision, GK CEO Dinesh Perera told the Business Times.

The second tranche would be for the depositors who have deposits ranging from Rs. 2 million to Rs.10 million which is due to be paid within 2 months, he said, adding that a sum of Rs. 3.9 billion is required for this purpose.

According to the new repayment initiative of the government, the final tranche amounting to Rs. 4 billion would be paid within a period of one year to depositors who have deposits over Rs. 10 million, he disclosed.

In another development around 200 of the next of kin of depositors who have died after the GK collapse in December 2008 will receive their payments soon on a court order.

The Colombo High Court this week ordered the GK company to make re-payments for the next of kin of GK depositors who have died after the collapse of the company after properly going through their relevant files which were under lock and key till the issuance of a court order.

The court issued this order after considering the appeal made by the counsel appearing for the company Bathiya Kumarasinghe.

The High Court Judge fixed the date for the next hearing of the case on October 21 to fix a date for the GK company computer data inspection.

President of the All GK depositors Association Dushanthi Hapugoda had brought to the notice of the court through her counsel Sumudu Liyanage that the company operating expenditure was very high and urged the judiciary to take necessary action to remedy the situation.

It has transpired at the High Court that the GK CEO Dinesh Perera has drawn a salary of Rs. 5.3 million over the past 11 months. Mr. Perera had been recruited on a monthly remuneration of Rs. 525,000, which was subsequently reduced to Rs. 375,000 despite the Monetary Board of the Central Bank’s directive that individual salaries should not exceed Rs. 200,000, it was stated in court. Responding to the allegations Mr. Perera said that his salary and other allowances had been approved by the GK board of directors headed by Chairman Priyantha Fernando.