27 May, 2020

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Sampath Bank Issues Qualified Denial: Admits Culpability In Massive Fraud: Fails To Answer Pertinent Questions

In a qualified denial, Sampath Bank PLC stated that “some parts” of the story appeared in the media referring to a massive fraud at the bank were inaccurate and misleading.

However, the bank, which has come under great public scrutiny following our story, failed to say which part of the story was inaccurate.

“Due to ongoing investigations, the Bank is not in a position to disclose detailed information,” the statement by the bank said.

Admitting that there was a massive fraud at the bank, the statement said this incident occurred a few months back and the Bank had already taken appropriate measures to correct the situation and ensure no-recurrence.

“We wish to assure the public that we have taken steps to ensure that our customers will not be affected in anyway due to the incident reported,” it started.

The statement by Sampath Bank, curiously, has not made any specific reference to the Colombo Telegraph story which provided extensive details relating to the fraud. The same statement has also been sent to the Chief Operating Officer of the Colombo Stock Exchange.

Sampath Bank, however, has failed to respond to following questions sent to its Chief Legal Officer, Senaka Hewavitharana by Colombo Telegraph.

1. Which parts of the story appeared in Colombo Telegraph are factually incorrect?

2. Has the former Manager of Sampath Bank (Thalahena branch) Manoj Rodrigo been arrested by the CID in connection with a fraud committed on an Ayurvedic Physician a customer of the same Bank? Has he been remanded for 14 days by the Kaduwela Magistrate?

3. Are you in the process of investigating whether any other officials of the bank are involved in the fraud?

4. Did your internal audit initially look into the complaint and exonerate the official who is now under arrest?

5. Were there other officials the bank who were involved in the fraud, apart from the arrested official?

6. Have you by now at least apologized to your customer Ayurvedic Physician and reassured him that all the monies illegally obtained from him by your bank would be refunded with any loss incurred by him has further damages?

Related posts:

Massive Fraud At Sampath Bank: Millions Of Rupees Siphoned Off By Manager And Partners In Crime: Media Hushed Using “Advertising Power”

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Latest comments

  • 7
    3

    Sampath Bank has been caught with its pants down.
    Hey CBSLand the CSE in slumber, will at least take action now to arrest the situation?
    If not why?

    • 2
      2

      ” Hey CBSLand the CSE in slumber ”

      Parents may not know, yet son is only with the girlfriend, not that far away. But the father is taking treatment with red light area doctor.

      “CBSL and CSE”? What does that means?

  • 8
    0

    Nanda Fernando has taken speedy action to refute any ‘errors and omissions’ in the report.

    The losses probably are minuscule compared to the extortionate profits of the bank.

    Let us wait for the full details when the case comes to court.

  • 3
    0

    Sampath Bank will admit minimum culpability in the massive fraud through ‘Qualified Denials’ and money power.
    The elite’s treasure troves stashed in the Bank is safe all right.
    But is the wages of layLankans?
    .
    Prosecutions? Highly unlikely

  • 3
    3

    that is why the bank has not paid a cent to the share holders as dividends. they keep all profits to taken out fraudulently.

  • 1
    1

    Losses are set off against Profits..
    Theses losses are then settled by Insurance once investigated and confirmed by the loss adjuster
    The loot then enter the Directors Accounts..unknown source
    They re-invest as own funds…

    These are International Standard frauds..

    Therefore Sri Lanka needs a strong Investigating unit on Financial Crimes….both to investigate Insurance & Financial institutions regularly that work hand in glove ….

    Besides for the period Jan 2017- Dec 2018 the total Bank defaults in the Country amounts to Rs. 14,000 mn or 14 bn… of course with collateral ..but how genuine are these loans …how much is recoverable by disposing the collateral ….what is the collateral damage to the Economy of the Country..? NOBODY KNOWS…

  • 3
    0

    Let me correct one thing blatantly wrong in your reporting that” this is the first time such a fraud has happened in a bank”. This is irresponsible journalism. It has happened so many times in almost all banks in Srilanka running into millions.

  • 0
    0

    I know one of the victims personally, so have heard both side of the story. Would like to get answers for the following from the bank.

    1. Since the Sampath Bank has already accepted that there has been a fraud on the Ayurvedic Physician can you pl explain what steps have you taken to “correct” the situation.

    2. Have you informed your customer who has now been defrauded by the bank of the steps you have taken to “correct” the situation?

    3. Does the bank accept that its Internal Audit went in to the matter, when complained and reported that there has been no mistake on the part of the bank or its representative, the Thalahena Manager.

    4. What steps have the bank taken to redress the customer of the bank in connection with the fraud committed on him?

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