COPE raises concerns over prolonged delay in recovering Rs 68 Mn lost in SMIB loan scam

The Parliamentary watchdog committee – COPE (Committee on Public Enterprises) has raised serious concerns regarding the State Mortgage and Investments Bank’s (SMIB) failure to recover a substantial sum of Rs 68 million lost due to a loan scam dating back to 2017, parliament sources said on Thursday.

Sources said that the committee’s investigation into this matter revealed unsettling delays in the recovery process, despite six years having passed since the incident.

The COPE committee, led by Chairman Prof. Ranjith Bandara, expressed its disquiet over the matter and promptly issued an order for SMIB officials to submit a comprehensive report to the committee within the next two weeks. This report is expected to shed light on the reasons behind the prolonged delay in recovering the losses incurred.

Officials associated with the SMIB have reported that, to date, they have managed to recoup eight million rupees through legal proceedings. Furthermore, they have initiated legal measures to secure the remaining amount. The loan scam, which led to the losses, involved 49 loan applicants who obtained loans with the collusion of certain SMIB officials.

In addition to the investigation into the loan scam, the COPE committee scrutinized the audit reports of the State Mortgage and Investments Bank for the years 2020 and 2021. They also assessed the bank’s current performance in a meeting held for this purpose.

State Minister Janaka Wakkumbura, Members of Parliament Eran Wickramaratne, Sanjeeva Edirimanna, Sudarshana Denipitiya, Madhura Withanage, and former COPE Chairman Prof. Charitha Herath were present. Additionally, officials representing the Ministry of Finance, as well as the Chairman and General Manager of the SMIB, were also present, parliament sources said.