Monday, August 26, 2013

Union Object on selling Peoples Bank shares

It is reported that trade unions which are related to Banking field are holding discussions these days regarding the steps which could be taken against Goverment's attempt to amend the 1961 no.29 of People's bank Act.

They say that although the Govt alleges that this to increase the capital in order to strengthen the financial stability of the bank, this could result in shifting the ownership of the bank from the Govt's hands to the hand of private businessmen.

Treasury secretary Dr. P.B. Jayasundara has explained briefly to the trade union representatives about this amendment at a meeting held on the 21st at the finance ministry regarding the pension of state bank employees.

He had also stated that this is an amendment made on behalf of the 8 Billion Rupee financial aid given by the ADB when the bank was in a financial crisis.

However, trade unions of state and private banks are discussing steps which could be taken against this decision of the Govt.

In a inquiry made regarding the matter one TU leader said that although it is said that this is to expand the bank's capital, this transaction might even be conducted with one person or a group of persons without even appearing at the common share market.

The Cabinet has given their approval for the proposal presented by the President in the capacity of the finance minister.

Accordingly the cabinet has decided to permit the legal drafter to prepare the bill and after receiving the AGs advice, to discuss it once again in the cabinet.

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