Wednesday 25 February 2015

Shareholders want action against Touchwood directors

Hiran H. Senewiratne (hsenewiratne @gmail.com)

All depositors and shareholders of Touchwood urged the government to investigate and file legal action against former directors, current directors and top officials attached to the company.

The Touchwood files are lying at the Attorney General's Department without legal action they said.

One of the shareholders of Touchwood Investment told the Daily News Business that the Commercial High Court ordered the liquidation of Touchwood and files against the directors are still at the Attorney General's Department unattended. "So far no action has been taken against directors of Touchwood, a shareholder said.

However, an Attorney General's Department source told the Daily News Business that they are now in the process of preparing all documents against the responsible persons who put Touchwood into this plight. All shareholders and depositors of the company have complained to the Securities and Exchange Commission that this company has not conformed to the regulations.

Therefore, directors and top officials of the company should be brought before the court, they said. The depositors and shareholders have complained to the SEC, the Central Bank and the Criminal Investigations Department to take remedial action against directors and top officials of the company.

Touchwood Investments founder Chairman, Roscoe Maloney and Swarna Maloney his wife are the main shareholders of the company. Former Touchwood Chairman Vijaya Kiulegedera told the media that irregularities of more than Rs 1.5 billion have occurred during Maloney's period. Touchwood has been a listed company in the Colombo Stock Exchange (CSE) it is auditors are also responsible for the collapse of the company, shareholders said.

Some shareholders queried why the company's external audit firm and the accountants involved in auditing have not informed the SEC about the questionable insider dealings, one of the shareholders said.
www.dailynews.lk

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