TSCFL to choose new investor ‘soon’ | Sunday Observer

TSCFL to choose new investor ‘soon’

 Prof. Harendra Dissabandara
Prof. Harendra Dissabandara

Depositors of The Standard Credit Finance Ltd. (TSCFL) who had been left in the lurch for over six years due to the crisis in the company, can breathe a sigh of relief as new investors are keen to put the company back on its feet.

Current Chairman of the company, Prof. Harendra Dissabandara who was appointed by the Central Bank early last year, said that depositors need not worry about their deposits any further as the house has been cleaned and put in order now.

“We have done the audits and have brought in new practices. What is now needed is capital infusion.

We are confident the company will be in full operation soon with new investors,” Prof. Dissabandara said.

According to the new management, several investors have shown keen interest in resurrecting the company.

One of the investors is willing to bring in several billion rupees after the evaluation is completed, while two others are in talks with their counterparts. The three investors are having final discussions with their fund providers, he said.

“We are confident that at least one investor will be chosen within the next few months,” Prof. Dissabandara said.

However, depositors said that they have been left in the lurch for the past several years with no solution in sight.

Their grouse is that the regulator, at the time the company ran into trouble, turned a blind eye to the issue.

Depositors said that cash deposited in the company, which was registered with the Central Bank, was misappropriated by its former directors on a large scale between 2008 and 2009.

Noel Fernando, a member of the Action Team of Depositors of TSCFL said since 2010/11, the Central Bank has been attempting to restructure the company at the expense of the balance valued deposits of the depositors but up to now failed to achieve any positive results for depositors.

“The last to run away with the assets of the company was Entrust Ltd.Now the company is insolvent.

“The regulator and has even failed to renew the contracts of the depositors,” Fernando said.

According to depositors, a staggering sum of over Rs. 2 billion in deposits was misappropriated by the directorate during above stated time frame and within two years registered an erosion of assets of the company by over Rs. 2.239 billion.

A press release by the Action Team of Depositors of TSCFL stated that around 1,778 depositors and around 700 saving account holders have not been paid back their money.

However, according to a press release issued by the Central Bank in October last year, all deposits will be settled in full in eight years.

The deposit liability of the company stands at Rs. 3 billion with deposits of Rs. 950 million and converted deposits of around Rs. 1.9 billion.