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 Post subject: 70 billion assets for just 7 billion rupees!!
 Post Posted: Sat Jun 16, 2007 2:19 am 
SLIC assets worth Rs. 70 billion sold for less than seven billion

Sri Lanka Insurance Corporation (SLIC) has sold assets worth about Rs. 70 billion for a mere six billion and fifty million rupees.

By Stanley Samarasinghe
@ The Nation / Sunday June 03rd, 2007


Sri Lanka and its citizens have been victims to an immeasurable loss caused as a result of the selling of the assets of the Sri Lanka Insurance Corporation (SLIC) worth about Rs. 70 billion for a mere six billion and fifty million rupees, this was disclosed to the Supreme Court during the filing of a Fundamental Rights Application.

The Fundamental Right Application No. 117/07 was filed by Ranawerage Sarath Nandalal and Ariyachakra Bandaranayake Thewage Mudiyanselage Ariyawansa Bandaranayake.

The Petitioners are former employees of SLIC and members of the organization to re-establish SLIC which was privatized.

Attorney-at-law Lilanthi de Silva appearing for the petitioners pointed out that the sole objective of the organization was to revive the corporation which had been privatized in a questionable manner, thereby violating the constitution without informing the general public sufficiently.

The Petitioners requested the Supreme Court to declare the privatization process and the shares, sale and purchase agreement violates Article 12(1) and thus has no force or avail in law.

Petitioners also requested the court to direct respondents to submit all relevant documents to court connected with the privatization process. The petitioners further requested the court to direct the Attorney General and the Bribery Commission to prosecute those who have violated the law of the country including the Criminal Law governing public property and the law governing corruption.

Public Enterprises Reform Commission (PERC), Sri Lanka Insurance Corporation Ltd, Milford Holdings Pvt. Ltd. No. 110 Nonis Cannel Road Colombo, Greenfield Pacific E. M. Holdings Ltd. Asia Box Consulting Services (Pvt) Ltd. Club Street Singapore, Distillers Company of Sri Lanka Ltd 110 Noris Road, Aitken Spence and Company Ltd. 305 Vauxhall Towers Vauxhall Street Colombo 2, P. B. Jayasundara Secretary to the Treasury, Minister of Finance Colombo and Attorney General have been cited as respondents in the application.

The Petitioners further stated that the Committee on Public Enterprises (COPE) in its first report to the Parliament on 12/01/2007 revealed the nature of the said privatization process.

In the same year (PERC) sought expression of interest in respect of the sale of 90% shares of Sri Lanka Insurance Cooperation (SLIC) with possible option to purchase 10% allocation by the employees.
The PricewaterhouseCoopers was the financial advisor to the said sale and 17 companies/Groups had submitted expression of interest to purchase the shares of SLIC.

Technical Evaluation Committee after evaluation recommended to sell 90% share to a consortium comprising Distillers Company, Aitken Spence and Company Ltd, Aitken Spence Insurance Private Ltd. together with Techno parties ING Industrial and government of advisory Services (Holland).

The cabinet on 27/03/2003 in its memorandum recommended to the selling of shares amounting to 90% to the consortium.

The sale had taken place on un-audited accounts and intentionally adjusted according to the COPE report. On 11-04-2003 share purchase agreement was signed, acting secretary to Treasury had signed on behalf of the Government of Sri Lanka while Milford Holding (Private Ltd.) and Greenfield Pacific E. M. Holdings Ltd. signed as purchasers. Distilleries Company of Sri Lanka Ltd. Aitken Spence Company Ltd, Aitken Spence Insurance (Pvt) Ltd signed as guarantors.

However, the petitioners stated that the two companies who signed as purchasers were not bidders to offers and the two companies were registered in Gibraltar on 11.04.2003.

The clause 2(c) of the share purchase agreement state that the agreement consideration for the entire sale of shares was six billion and fifty million rupees, but the petitioners claimed that the SLIC assets exceed seventy billion rupees.


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