By Duruthu Edirimuni Chandrasekera
A due diligence study conducted by the Central Bank (CB) on the affairs of troubled Entrust Securities PLC has revealed that there’s enough evidence to prosecute the company’s senior management, CB officials said. CB Governor Arjuna Mahendran was tight lipped on it but confirmed that the due diligence was concluded. He said a forensic audit that’s underway will reveal the exact position in the company after which a restructuring plan will be set by the CB. “We will find out the exact position in a few months time,” he told the Business Times.
Entrust Securities was taken over by the CB early last month and its management handed over to the National Savings Bank after its liabilities fell below its assets putting depositors and investors at risk. In a related move, Entrust Group subsidiary Multi Finance PLC is in discussion with investors to unload some shares and bring in new owners, in a move that’ has been frowned on by the CB. “We need to analyse the intercompany transactions with Entrust and come to a conclusion,” Mr. Mahendran said. He said that there is interest for Multi Finance but the company’s relationships with Entrust Securities in terms of transactions and intercompany borrowings need to be analysed.
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Entrust Securities was taken over by the CB early last month and its management handed over to the National Savings Bank after its liabilities fell below its assets putting depositors and investors at risk. In a related move, Entrust Group subsidiary Multi Finance PLC is in discussion with investors to unload some shares and bring in new owners, in a move that’ has been frowned on by the CB. “We need to analyse the intercompany transactions with Entrust and come to a conclusion,” Mr. Mahendran said. He said that there is interest for Multi Finance but the company’s relationships with Entrust Securities in terms of transactions and intercompany borrowings need to be analysed.
www.sundaytimes.lk
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