By The Pulseline News Desk
Opposition member of parliament (MP) Shanakiyan Rasamanickam on Wednesday (5) challenged what he described as a double standard in the recovery of loans by state-owned banks, questioning why ordinary borrowers face swift legal action while politically connected and wealthy defaulters owing billions of rupees appear to escape similar scrutiny.
Raising the issue in Parliament through a Standing Order 27(2) question addressed to the Minister of Finance, the opposition MP called for unprecedented transparency over some of the country’s largest non-performing loans and loan write-offs involving state financial institutions.
Shanakiyan argued that while small borrowers who default on relatively modest loans are often subjected to Parate Execution and other recovery mechanisms – resulting in homes, businesses and vehicles being seized – there appears to be little public accountability for major borrowers who owe billions to state banks.
He stressed that the funds lent by state-owned banks are not government money but the savings entrusted by the people of Sri Lanka, making it imperative that authorities ensure equal treatment in recovering defaulted loans.
Seeking greater public disclosure, the MP requested the Finance Minister to table details of the 20 largest non-performing loan accounts currently outstanding, as well as the 20 largest loans written off during the past 15 years, covering the Bank of Ceylon, People’s Bank, National Savings Bank, Regional Development Bank and the State Mortgage & Investment Bank.
Shanakiyan asked that Parliament be provided with comprehensive information on each account, including the identity of the borrower, the outstanding or written-off amount, the year the loan was granted, collateral provided, whether the facility had been restructured, the current status of recovery efforts and whether legal or disciplinary action had been taken against bank officials involved in approving or managing the loans.
He further called for a consolidated report on recovery measures undertaken by the state banks, requesting that at least an interim report be submitted within three months if the full information could not be compiled immediately.
Referring to a recent court ruling involving a politician accused of obtaining billions of rupees in loans from a state-owned bank, using the funds for private lending and failing to repay them, Shanakiyan said the case had reinforced public concerns about accountability within the banking sector.
He also noted allegations that certain bank officials had facilitated questionable lending practices, arguing that the public had a right to know whether those responsible had faced any disciplinary or legal consequences.
Responding to the request, the Minister of Finance sought additional time to gather the information requested by the MP.
Closing his remarks, Shanakiyan said the country could not afford a system where different rules apply depending on a person’s wealth or political connections.
“There cannot be one standard for the ordinary citizen and another for those with money, power or political influence. Public money belongs to the people, and accountability must be equal,” he told Parliament.
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