To probe loan scams of two state banks 

• One state bank provided Rs 3.1Bn loan to purchase cigarettes

By Yohan Perera 

Main opposition Samagi Jana Balawegaya (SJB) yesterday urged the government to appoint a presidential commission to probe what they called the loan scams of two state banks. 

SJB MP Dr. Rajitha Senaratne told a press conference that a presidential commission should be appointed to look into providing loan facilities to the tune of Rs 3.1 billion by one state bank and providing Rs 23 million to the chairman himself from another state bank. 

“One state bank has provided Rs 3.1 billion to a company to purchase cigarettes. This company has been given the loan following orders received from a government higher up. This company which has been granted a loan of Rs 3.1 billion has been given 65 loan facilities. All these facilities are said to be in arrears for more than 90 days. It has also been given debt moratoriums for 103 loan facilities. Two directors of this bank who opposed the approval of the loan have been made to resign,” Dr. Senaratne alleged.   “Though it was anticipated by this company that the price of cigarettes would go up it has not happened. Therefore the company had been forced to return the consignments of cigarettes it had purchased. It had managed to earn Rs 2.5 billion through this move and this amount has been paid to the bank. However the company has not been able to recover Rs 600 million which it had paid as commissions to get the bank loan approved,” the MP added.