Three UNPers and Mr. Bandula Gunawardena who recently defected from the PA yesterday expressed unhappiness about Bank of Ceylon Chairman, Ken Balendra, in reportedly writing off Rs. 15 million interest on loan due from Ronnie Peiris, discribed as a close confidante and political ally of President Chandrika Kumaratunga.

Four Ex-MPs — Karunasena Kodituwakku, Bandula Gunawardena, Rajitha Senaratne and Ravi Karunanayake — presented a letter to Balendra yesterday, outlining several allegations against Peiris. A copy of the document was made available to The Island.

Calling it a "disreputable decision" on Balendra’s part, the UNP pointed out that the full details of the "transaction" had been exposed in the October 7 issue of a Sunday newspaper. They emphasise that information provided therein hadn’t been denied by either Kumaratunga, Peiris or the Bank of Ceylon.

The letter quotes the newspaper article as saying that, in 1995, Ronnie Peiris had opened an account in the BOC’s London branch. He had subsequently applied for and obtained a loan of 500,000 sterling pounds (around Rs. 60 million). The letter alleges that the bank granted this amount without considering the fact that many of Peiris’ business enterprises were on the brink of collapse.

"Most probably with your knowledge, perhaps even on your insistence, the general manager of the bank has cancelled Rs. 15 million interest due on this loan on May 25, 2001," the letter states.

"As you know, BOC belongs to the Sri Lankan people," the UNP emphasises. "It is not your private property. Neither is it President Kumaratunga’s personal property. Therefore, permitting a friend and political ally of Kumaratunga to evade the payment of interest on a loan means cheating of the Sri Lanka people, in our opinion."

The UNP points out that it is a legal requirement for collateral to be obtained when granting a loan. It asks whether this procedure had been followed when 500,000 sterling pounds was lent to Ronnie Peiris. "If so, why does the bank not exercise authority to claim it now that he has defaulted payment of interest on the loan?" it asks.

"Mr. Balendra, you are a high ranking member of the private sector," it said. "You are known to be a well-informed and clever businessman. Didn’t you know, therefore, that Ronnie Peiris was involved in many leading projects in Sri Lanka?"

It points out that the golf course in Kotte is one of these enterprises. Also, the ABC Broadcasting Service and the Colombo-Katunayake expressway. Sri Lankan media has given much publicity to Ronnie Peiris’ involvement in these projects and the public is well aware that some of these projects were given to Ronnie Peiris by circumventing due process, the letter claimed.

Referring to a commercial company set by Peiris in Bahamas, the UNP claims that the company has a stake in ABC Radio.

"There are many doubts about the distribution of profits made through Sri Lankan entities in which the Bahamas company has a stake," it alleges. "In any case, the Bahamas company is one that makes huge profits."

"In this context, it’s evident that Ronnie Peiris is not one deserving of alms or concessions," it stresses. "For what reason was this Rs. 15 million written off? Examination of profits posted for 1999 by ABC Radio, will reveal that Peiris is no way in need of any assistance. He is one who has amassed wealth through the beneficence of the People’s Alliance government. He needs no more public funds."

"Mr. Balendra, it is well known that you are the very first Sri Lankan to be the chairman of John Keells and that you have provided the basis for both its local and international success as a company," the letter says.

"As one who rose from lower ranks, you are a living example of a businessman who has made his profits the right way," it noted. "Not only are you the head of a big company, but you are one in whom much faith has been placed by many."

"There was much euphoria when you took over as BOC chairman after retiring from the chairmanship of John Keells," it elaborates. "The general sense was that finally, one who did not brook political interference or injustice had come to the helm of the BOC."

"This is why the current breach of faith is tragic to the people of this country. We write this to you to intimate our displeasure at this action that you have taken. We also want to inform you in advance that this casts aspersions on your honesty. We have annexed all documents tabled by Gamini Atukorale in Parliament."