Lankaputhra Bank slips show in Chairman drama
Embroiled already in controversy over allegations of corruption by the Rajapaksa regime at the state owned Lankaputhra Development Bank (LDB), its present Chairman Lasantha Goonewardena’s appointment has been invalidated by the Central Bank, a year after assuming office.
The Bank Supervision Department of the Central Bank in a letter addressed to the General Manager/CEO of the LDB rejected the appointment of Lasantha Goonewardena ? as the Chairman as he is not fit and proper to hold office.
Under provisions (Section 42 (2)) of the Banking Act of No. 30 of 1988 a director of a bank should be fit and proper in terms of his academic and professional qualifications; not involved in fraud, deceit, dishonesty or any other improper conduct, among other matters.
In this respect, the appointment of Mr. Goonewardena - who is a member of the United National Party Working Committee, has been refused by the regulator citing the above provisions, but the refusal was made nearly an year after the said officer had assumed duties.
However, the Treasury-appointed Chairman said that he believed he had the adequate qualifications to assume office and continue in his position.
Further the letter states that there are two more reasons for the refusal of his appointment based on a special examination which was carried out in 2015 of the LDB where it has been found that Mr. Goonewardena has failed to comply with directions pertaining to Corporate Governance under Section 3 (5) (ix) of the Banking Act Direction No. 12 of 2007.