Tilak Karunaratne paid off by businessman Ashok Pathirage
Financial irregularities swept under the carpet
Nov 19, 2015
Tilak Karunaratne who claims to be an honest businessman as reported in the Sunday Times, has been found to engage in high-level fraudulent activities usurping his position as the Chairman of the Securities and Exchange Commission of Sri Lanka.
WE WILL EXPOSE HIM & HIS DISHONEST ACTIVITIES, ONE BY ONE IN THIS SERIES OF EXPOSES.
DEAL NO.1
ODEL PLC raised Rs.2100 Million in their IPO with a disclosed objective of expanding their business to other countries like Bangladesh, Vietnam, Burma and India in collaboration with the international retailer Parksons.
ODEL PLC raised Rs.2100 Million in their IPO with a disclosed objective of expanding their business to other countries like Bangladesh, Vietnam, Burma and India in collaboration with the international retailer Parksons.
However, the Corporate Affairs Division of the SEC on conducting an audit review on how some of the public listed companies have disbursed monies raised via share issues, and also if these modalities were in line with the objectives presented to the market, found out that ODEL PLC had grossly violated the objectives set out by them. Although about 10 company names had come to light as contravening the objectives set out in their prospectus, the biggest violators have been identified as ODEL PLC.
When members of the Corporate Affairs Division of the SEC sought an explanation from ODEL PLC, the information provided by the Board of ODEL PLC now run by business tycoon Ashok Pathirage, has been less than acceptable. According to Pathirage, he has written to the SEC informing them that Softlogic affiliated companies like Nike, Mango and Levi branded shops have been bought by ODEL PLC at a disproportionately enhanced value, in order to take the public quoted ODEL’s funds out of ODEL PLC. This is observed by the Corporate Affairs Division of the SEC as being the biggest ever fraud committed by any public company.
Based on the above, the Corporate Affairs Division of the SEC prepared a report on this violation and presented the same to the Chairman Tilak Karunaratne and Director General Vajira Wijewardena, as the due process prior to presenting to the Commission. It is reliably noted that Tilak Karunaratne then proceeded to take matters to his own hands and invited his friend from the Ananada College OBA Ashok Pathirage, to meet him in person where the observations of the Corporate Affairs Division was divulged, breaking all rules of governance and fair-play. It is also reliably understood that Tilak Karunaratne had assured Ashok Pathirage that this matter will not reach the commission members and that he will personally sort the matter out. In turn, Tilak Karunaratne had then severely reprimanded the Head of Corporate Affairs and ordered him to refrain from bringing up this matter at a Commission meeting. Shocked and upset by this turn of events, the Head of Corporate Affairs who is a thorough professional, decided on his own integrity and took upon himself to verbally inform the Commission members of the situation. As mentioned by 2 of the Commission members who were present that day, at this mention, Tilak Karunaratne had become visibly angry and resorted to misleading the Commission members by presenting a completely inaccurate version of the disbursement of ODEL’s public funds.
In addition to this, SEC also found that a number of serious irregularities with regards to the financial information divulged to the public. SEC wished to question the company once again, but Tilak Karunaratne intervened and stopped the action and again the paper which was supposed to be presented to the Commission, was halted.
Now it has become common knowledge at the SEC that Tilak Karunaratne personally benefitted by way of receiving cash from the likes of generous businessmen like Ashok Pathirage, who had by now become a frequent visitor to Tilak Karunaratne’s residence as Sakvithi Lane in Colombo 5.
Tilak Karunaratne who is a private businessman of an ailing concern, boasts that he doesn’t take a salary from the SEC. However, the SEC staff discuss in corners as to why he should need this peanut salary when he has millions coming from investors like Ashok Pathirage.
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