The Hon. G.G. Ponnambalam

¶ 01 Hon. Presiding Member, I wish to touch on three matters today.

¶ 02 In the North and East, both during and after the war, so-called development through investment was minimal. You know this; there may be many reasons, but that is the reality. In such a situation, people there generally deposit their savings in banks and finance companies and live off the interest. In Jaffna and across the North—especially retirees—have relied on such deposits. Unfortunately, the status of those investments changed drastically after 23 October 2019. The Finance Company went into liquidation and is now being handled by the Central Bank and courts.

¶ 03 Efforts are underway to distribute what remains, but so far more than 6,400 investors have not received even one percent of their investment. Even if the company is fully liquidated and all assets are sold, will they get their money back even in the future? That itself is a big question. The Finance Company’s assets have not been sold at market value; rather, they have been sold at very low prices, and not a single percent has reached the investors. As these meagre proceeds are being apportioned, people are suffering.

¶ 04 In the South, people may have more options. Not so in the North and East. That is why I raise this in the Finance Ministry’s committee-stage debate. I recall in 2001, after the Ceasefire Agreement, when I was first elected, in the first Budget debate we discussed that about 75% of National Savings Bank depositors in one branch were from the Northern Province—because our people rely on fixed deposits in banks or investments in finance companies for income. In such a context, many Tamils invested in The Finance Company—especially war-affected populations contributing heavily—and they must get justice.

¶ 05 Previous governments did not take ordinary people’s problems into account. In every past Budget debate, I and other MPs representing the North and East spoke about finance company issues, yet nothing was done. Even when the Finance Ministry came under the President, this was not addressed. The Government now claims it has a duty to protect the investments of struggling people; it cannot act like past governments. On that basis, I raise this.

¶ 06 The Finance Company was closed for liquidation on 15 February 2019. Shockingly, from 1 January to 31 January 2019—just two weeks before closure—an intense drive was carried out to collect over Rs. 1 billion. Knowing a finance company would be shut in six weeks, how could such a drive be undertaken? Around Rs. 946 million was collected in that month by mobilizing investors. Then, two weeks later, they decided to close the company. Could there be a greater injustice? Though it did not occur under this Government, leaving the North and East investors—who invested their savings—stranded in dire financial circumstances is not acceptable.

¶ 07 I believe these investors met the Central Bank Governor in 2022. They were told they might receive only about 33%—and even that was not guaranteed. Therefore, the Finance Ministry must take this up and ensure justice for investors, whoever they are—not only Tamils or only retirees—these are people truly in hardship. You must return their invested capital and, moreover, pay interest so they receive justice.

¶ 08 Next, 14 Samurdhi Development Officers from Jaffna sat for interviews in 2006 to be promoted from Grade II to Grade I. They had all the required qualifications and no disciplinary issues. However, they were told their interview marks, conducted by the Maruthankerny Divisional Secretariat, were unavailable, and thus District Secretariat did not grant them Grade I appointments.

¶ 09 They sat again later and in 2012 were declared eligible for Grade I, but their appointments were made effective only from 1 January 2012—six years late. The 2006 delay was due to an error by the Maruthankerny Divisional Secretariat. Over those six years, they repeatedly sought redress from authorities, to no avail. They came to me to request that this Government grant them the lost service seniority and salary scale progression for those six years. Given the current economic hardship, they are truly struggling. I ask the Ministry to take this up and act. I table the document containing details of the 14 officers.

¶ 10 Placed in the Library.