Inquiries have revealed that the failed Golden Key Credit Card Co. Ltd induced investors by assuring them that their deposits with the company of the Ceylinco Consolidated wouldn’t be subjected to Withholding Tax (WHT).

A disappointed investor told The Sunday Island that the company assured them as their investments had been taken as security deposits for the issue of credit cards, they wouldn’t be liable to WHT.

The Sunday Island also received a copy of a letter signed by GK chairman Deshamanya Dr. Lalith Kotelawala and his deputy Khavan Perera assuring investors of what they called the legal status of their operations. They said, "As a credit card company we do not fall within the categories of a banking institution, non-banking financial institution or a leasing company, the board categories of institutions regulated by the Central Bank of Sri Lanka. We were in fact examined by the Central Bank of Sri Lanka in 2005 and 2006, and the examination terminated as our deposit taking was restricted to security deposits for the issue of credit cards."

The letter dated December 3, 2008 came three weeks before an unprecedented crisis hit the Ceylinco Consolidated, leading to the arrest of top Ceylinco officials, including Kotelawela and Perera.

A guarantee that an investor could avoid paying taxes by investing with GK coupled with high interest rates deceived people, another investor told The Sunday Island. Nothing could have been as ridiculous as accepting millions of rupees under a special category called security deposits, he said. Certain GK managers also made special arrangements to pay a higher interest to their friends and associates, he said.

Among the investors who took advantage of the scheme were Buddhist and Catholic clergy, politicians and senior government officials and retired public servants.

GK investors said that the government should identify the person or persons who created so called security deposit scheme to deceive the public.

Police said that investors couldn’t be unaware that they were taking part in a gigantic fraud. Would anyone deposit Rs. 50 million to take a credit card when anyone could have easily obtained one from a public or private sector bank.

The following is a list of clergy deceived by the security deposit scheme:

             LKR

1

Rev. ARC Peiris

40,000,000.00

2

Rev. Bishop of Ratnapura

40,000,000.00

3

Rev. Raja Perera

41,050,000.00

4

Rev. PDSB Rathnasinghe

10,391,300.00

5

Rev. Sister Heloise Mariet De Silva

12,000,000..00

6

Rev. Dr ARL Peiris

15,214,400.00

7

Rev. Father M Thomas

17,066,944.00

8

Rev. Fr Dexter Fredric Gray

5,000,000.00

9

Rev. JARL Rodrigo

5,000,000.00

10

Rev. JKLNG Perera

5,000,000.00

11

Rev. Joseph Arulraja Albert

5,000,000.00

12

Rev. Fr MGAM Ferdinandez

5,050,000.00

13

Rev. HPJ Tissera

5,074,591.50

14

Rev. Malegoda Nanda

5,505,000.00

15

Rev. BKER Rodrigo

3,000,000.00

16

Rev. Bishop of Badulla

3,000,000.00

17

Rev. Bishop of Badulla

3,000,000.00

18

Rev. Fr D Fredric Gray

3,000,000.00

19

Rev. IG Pietersz

3,000,000.00

20

Rev. Fr D Fredric Gray

3,700,000.00

21

Rev. Fr D Claretian Publications

3,900,000.00

22

Rev. WMFE Tissera

4,100,000.00

23

Rev. A Winitha

4,289,216.16

24

M/Rev. Dr Oswald Gomis

4,580,000.00

25

M/Rev. Chairman of the Bishops Conference

4,750,000.00

Total

251,671,451.66

LKR

1

Ven. B Somawansa Thero

41,400,000.00

2

Rev. Kegalle Ratnasara Thero

17,050,000.00

3

Ven. M Dhammasara Thero

4,316,000.00

Total

62,766,000.00

Grand Total