"We refer to the article under the caption "Depositors question role of Muslim Clerics", which appeared in The Island newspaper of 28 August 2009. The said article contains references to the All Ceylon Jamiyyathul Ulama which are incorrect.

"The Ceylinco Profit Sharing Investment Corporation Limited sought the advice of the ACJU in regard to the Sharia implications of its affairs. The Banking Advisory Committee of the ACJU, in pursuance of its objective of ensuring compliance with the Sharia by financial institutions engaged in Islamic Finance, decided to make its services available on a consultancy basis. Hence the ACJU nominated three of its members to serve on the Sharia Advisory Board of that Company at its request. The Advisory Board consisted of eight members of whom five had been appointed directly by the Company and who were serving purely in their individual capacities. The function of the Board was strictly of an advisory nature. The Board was not involved in the management or operations of the Company. The approval of loans to customers did not come within its purview. In January 2008, the ACJU decided to assume the role of a Sharia Regulatory Authority and to withdraw its nominees from the Advisory Board. The Company was informed accordingly and as such the ACJU ceased to have any nominees on the Advisory Board of the Company concerned from January 2008. The ACJU issued a public statement to this effect which was carried in the newspapers including The Financial Times of 20th January 2008.

"If any of the former nominees had served on the Advisory Board thereafter, it was purely in his individual capacity and not as representatives of the ACJU. The erstwhile nominees of the ACJU had not obtained any loans from the Company. Indeed, there are no dues whatsoever owing to the Company from the said nominees of the ACJU.

"The ACJU or its nominees did not at any stage promote the Company concerned. The ACJU has presently no nominees serving in any financial institutions and the allegation that it is engaged in promoting the Islamic financial concept in other institutions is incorrect. If any member of the ACJU is found to have committed any act of misconduct, the ACJU will take appropriate action.

"The ACJU deeply sympathises with the depositors and calls upon the Company to take swift action to settle their dues."

News Editor’s Note: