The 10bn People’s Bank loan is being investigated – Min. Kiriella

Over the past few days, News1st has been reporting on a Rs 10bn loan granted by People’s Bank to MTD Walkers PLC. The loan is special not only because it is the largest loan issued by the bank in its history but also because Jehan Amaratunge who sits on the People’s bank board of Directors also holds the position of Executive Deputy Chairman of MTD Walkers PLC.

Senior Banker Rusiripala Tennakoon joining News1st for a special interview noted that Jehan Amaratunge has been serving as a member of the People’s bank, board of directors since 2010. He noted that it is very rare to see an individual continuing to serve for a long period of time especially in a backdrop where there was a change in Government.

Tennakoon revealed that any related party transactions undertaken by a banking institution needs to be referred to an audit committee of the same bank. The senior banker also revealed that Amaratunge serves as the Chairman of the Audit Committee of People’s bank and that this itself is unethical.