Clean Cut

The securities watchdog has compounded an insider case against its ex-chairman and another company director, wrapping up two years of suspense which rocked Lanka Inc. The securities watchdog has compounded an insider case against its ex-chairman and another company director, wrapping up two years of suspense which rocked Lanka Inc. Ex-Chairman Michael L Mack got off paying a Rs. 3.3 mn fine to the Compensation Fund set up under the Securities & Exchange Commission (SEC).

Norman Gunawardena closed the chapter paying a Rs. 2.5 mn fine, SEC said Monday.

Both parties have made the necessary payments, and the SEC has dropped the cases before the Court of Appeal.

The SEC prosecuted Mack and Gunawardena – former directors of Aitken Spence & Co. – for alleged insider dealing transactions in 2002.

Manil de Mel, another ex-Director, was issued a show cause letter by the regulator.

At that time, the SEC commissioners themselves were deeply divided over the Mack affair, making public statements defending their former Chairman – further undermining the credibility of the regulator.

The then SEC Director General, Dr. Dayanath C Jayasuriya quit in dis