Golden Key Scandal
Following the collapse of the Golden Key Creditcard Company, which was affiliated with Ceylinco Consolidated, Kotalawala who was the Chairman of the company was accused of misappropriation and Financial mismanagement. He was remanded on February 26, 2009 by the Mount Lavinia Magistrate and an ultimatum was issued to settle the Rs. 26 billion deposits of Golden Key Creditcard Company customers in 10 days. Weeks earlier the CEO Khavan Perera, the CFO, and several other directors were remanded by the same Magistrate. In March the Magistrate refused to consider the application for bail on the grounds that the matter was under consideration in an ongoing high court case. Korelawala was moved to the prison hospital.
In a hearing for bail at the Mount Lavinia Chief Magistrate's court on March 27, 2009 Kotelawala was accused by Deputy Solicitor General Sarath Jayamanna of running a Ponzi scheme. Lawyers representing the investors said that he was not, but, rather had misappropriated depositors’ monies, violating sections of the Companies Act, Act No. 7 of 2007. He stated a willingness to sell off assets worth Rs. 14.5 billion and settle the deposits.
Read more about this topic: Lalith Kotelawala, Businessman
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