Opposition law maker Dr. Harsha De Silva slammed the capital markets watchdog for the easy let-off alleged offences of the Board of Directors of Environment Resources Investment PLC.
"We are deeply perturbed at the news that ERI and its Directors have been let off the hook by the SEC with a negligible Rs 10 million fine by compounding a serious offence of securities fraud," the economist said.
"This is totally unacceptable given the serious nature of the white collar crime in the context of continuing manipulation of the CSE by powerful individuals. It is also noted that ERI has ironically promised to fund the Hambantota 2018 Commonwealth Games while the investigation was being carried out. As a responsible opposition we will dig deeper in to this fraud and its perpetrators to safeguard the interest of the large number of bona fide investors," Dr. De Silva said in a statement to The Island Financial Review.
Media reports said the Securities and Exchange Commission (SEC) had fined ERI and several officers, over a disclosure related offence. The regulator had earlier sent the company a notice of action, over a disclosure related issue.
The SEC had fined the company and three directors that had been fined close to Rs. 10 million as the law provides for offences to be thus compounded without admission of guilt, thus avoiding criminal proceedings before the law.
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