The Ceylon Bank Employees’ Union says that the government should immediately inform the people of the country about the real situation of the People’s Bank which is at risk.
The people of the country as well as the employees of the People’s Bank are deeply concerned about China’s bad documentation of the People’s Bank in Sri Lanka. Therefore, the Ceylon Bank Employees’ Union has stated in a statement that this situation should be resolved immediately.
The statement further stated:
The issuance of letters of credit on behalf of a fertilizer company for the purchase of organic fertilizer from China has threatened the business existence of the People’s Bank and it is the responsibility of the Association to protect the public’s trust in the People’s Bank as a state bank by properly informing the public of the current situation.
Our association has already taken steps to inform the Minister of Finance in writing of the problem that has arisen with regard to the People’s Bank regarding the purchase of fertilizer from foreign countries. The issuance of letters of credit on behalf of a fertilizer company for the purchase of organic fertilizer from China has threatened the business survival of the People’s Bank. The Fertilizer Company has obtained an injunction in the Commercial High Court against the payment of the letters of credit and our association informed the Minister in writing in the wake of reports that the companies had threatened to defraud the People’s Bank in China if the letters of credit were not paid. We have stated that the situation is adversely affecting People’s Bank’s foreign transactions.
Meanwhile, the People’s Bank and several of its employees have been exposed to professional risks following the media revelation of a deal made by the People’s Bank to a fertilizer company to import nitrogen fertilizer from India. According to the revelations, it is felt that some corruption has taken place under the guise of importing this fertilizer on the basis of national interest. People’s Bank’s reputation has also been severely affected by its involvement in such corruption or fraud. While many state institutions in the country are making losses, the state banks including the People’s Bank have contributed to the economic development of the country by making profits. These banks are built on the savings of the general public of the country. Therefore, we emphasize here that it is the responsibility of the government to safeguard these valuable national resources and secure their business existence. It is unfortunate that such banks are involved in such problematic and corrupt transactions and put at risk, and we are of the view that it would be a more serious situation if the responsible parties in the government were involved.
In the letter sent to him, we have stated that it is the responsibility of the Minister in charge of the subject to give proper explanations to the problems that have been created among the people of the country regarding the People’s Bank, revealing the veracity of these transactions. We also consider it the responsibility of the Association to protect the public’s trust in People’s Bank as a State Bank by properly informing the public of the circumstances that have arisen in this regard. (End)
Meanwhile, Finance Minister Basil Rajapaksa had stated in Kandy yesterday (30) that no one had informed him about this.