HNB has written to shareholders asking for Rs 15 Billion to beef up their capital. But Harry Jayawardana one of the Key Shareholders of the bank who has been associated with the bank for over 30 years is alleging that the money is to cover up a huge loss due to a 3.5 Billion bad loan given to Magampura during the previous administration at the request of Cabral.
No proper guarantees have been obtained according to a source close to him to give the loan, neither have they provided for it in the books. He is furious that the bank is being taken to the cleaners by the current board.
The Directors of that time appointed by Nivard Cabral are still on the board and pushing for the rights issue once again according to a Shareholder. He identified them as Sujewa Mudelige, Rohan Karunarathne, Rose Cooray and Cabral’s 1 st cousin Amal Cabral. Harry Jayawardana has already gone to court and got an injunction to prevent a dilution of his shareholding.
He is also alleging according to his plaint that the Board has even sold a valuable property of the Bank for a song for a director to make a hefty profit. The property being the birth place of Hatton National Bank. The government owns 35% of the bank but totally inactive because of poor appointments and Harry Jayawardana has around 23% . But he is restricted to 10% by a previous government ruling.