By Rohan Mathes
A delegation from the Pramuka Savings and Development Bank (PSDB) Depositors Association and the Pramuka Stakeholders Association met the Chairman Pramuka Bank Udaya Nanayakkara and his Board of Directors, at his residence yesterday morning and handed over a proposal requesting the present Board of Directors of the defunct Pramuka Bank to submit their resignations and convey this decision to the Central Bank (CB) accordingly.

The President, PSDB Depositors Association Ranjan Arambewela said at the discussion with Udaya Nanayakkara and his board that on behalf of all the destitute depositors of PB, he is fervently appealing to them, to step down in order to submit a viable proposal to the Monetary Board to formulate a proper restructuring process acceptable to all concerned, at a time when Janashakthi Capital Limited (JCL) had agreed to come forward and offer a restructuring proposal. Arambawela said, "we are confident you will agree that the money of the depositors of the collapsed PB could be secured only by restructuring the Bank. We are confident you will agree with us that there should be a new management and a board of directors, as a temporary measure, incorporated in the restructuring proposals of Janashakthi, as a vital condition for its acceptance by the CB".

According to Arambawela two parties have already submitted their proposals to reopen the Bank, but both have been rejected by CB as the CB was not prepared to infuse Rs.600 million, and other reasons known to them. JCL is to offer a restructuring proposal after studying the investigation report prepared by Ernst and Young, the Auditors, at the request of the CB. Arambewela further said that after the CB has approved the restructuring proposals, the permanent management and Board of Directors will be decided at a general meeting of the shareholders. "As you have already agreed to safeguard the interests of the depositors and offered to give whatever assistance possible to meet that end, this will be an excellent opportunity to demonstrate your sincerity," he said.

In response to the request of the Depositors’ Union President Ranjan Arambewela, PB Chairman Udaya Nanayakkara said that while endeavouring to safeguard the interests of the depositors, he and his board will have to discuss these proposals with the shareholders and make a decision and that needs time. He also mentioned that they will have to study the impact of such a proposal on the case they have filed in court. Regarding the Janashakthi matter, "Janashakthi must speak directly with us and convey their willingness to come in," he said.