Friday, June 5, 2009

SL Insurance sale annulled, shares revested in Treasury

* Deal struck under UNF/UNP government
* Govt. Valuer kept in the dark
* Tender Board had no jurisdiction

The Supreme Court yesterday declared in judgement that the sale of 90 per cent shares held by the Secretary to the Treasury on behalf of the government, in the Sri Lanka Insurance Corporation, had been carried out wrongfully. The Court declared the aforesaid sale to a private owner null and void and ordered that the shares sold in that transaction be immediately re-vested in the Secretary to the Treasury.

The respondents, Milford Holding Pvt. Limited and Greenfield Pacific EM Holdings Ltd., would have to return to the Treasury the 90 per cent shares they purchased subsequent to an agreement dated April 11, 2003.

The aforesaid companies will be entitled to their investment amounting to Rs. 6.5 billion.

The Court ordered that the Secretary to the Treasury nominate new Directors to the Sri Lanka Insurance Corporation.

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