JKH says will fully comply with SC verdict on LMSL

John Keells Holdings (JKH) said on Wednesday night that its directors at a special board meeting were fully briefed of the judgement in the Lanka Marine Services Ltd (LMSL) and the board had decided to ‘fully implement’ the Supreme Court decision.

“The board resolved to meet full compliance with the judgement,” JKH Deputy Chairman Ajit Gunawardene said .

The board meeting which all 10 directors attended was called by JKH Chairman Susantha Ratnayake to discuss the judgement over the 2002 privatization of LMSL, in which JKH has a 90 percent stake, and discuss the financial implications and other issues arising out of the verdict.

Mr Gunawardene said it was a ‘normal’ board meeting. “The board was briefed by the executive directors of all the facts of the judgement. The board also resolved that John Keells will continue to serve its customers and stakeholders to the highest standards as maintained by the company,” he said. The JKH Deputy Chairman said they were discussing with the authorities on fulfilling the tax obligations as listed out in the judgement.

The 10-member board comprises executive directors -- Susantha Ratnayake - Chairman, Ajit Gunewardene - Deputy Chairman, Sumithra Gunesekera and Ronnie Peiris - Group Finance Director, and non executive, independent directors -- Franklyn Amerasinghe, Tarun Das, Steven Enderby, Mohamed Muhsin, Deva Rodrigo and Ms Sithie Tiruchelvam.

Last week the Court declared that the 2002 privatisation of LMSL was illegal, unlawful and arbitrary. It ordered Treasury Secretary Dr P.B. Jayasundera (who was chairman of the Public Enterprise Reforms Commission at the time) to pay compensation of Rs 500,000. Directors of JKH were asked to pay Rs 250,000 as costs. Court also ordered that the land on which the bunkering facilities lies should be returned to the state and that all taxes – since LMSL got tax-free status – should be paid from the date of privatization onwards.