Internal Investigations lead to resignation of two Jt. COOs from Asia Capital PLC
Asia Capital accepts resignation of Reyhan Morris, Sandun Hettige subject to an Independent Audit
Two Joint Chief Operating Officers Reyhan Morris & Sandun Hettige at Sri Lanka’s pioneering investment bank Asia Capital PLC has submitted resignations despite an upcoming internal independent audit, two resignation letters accepted by the company reveals.
Accordingly, in the letters dated 21st July and 11th August 2021 respectively, addressed to Reyhan Morris and Sandun Hettige from Asia Capital PLC, signed by Director Raju Radha note that both their resignations from the position as Joint Chief Operating Officers at Asia Capital PLC, Chief Executive Officer at Asia Leisure Holdings held by Morris and Chief Investment Officer position held by Hettige has accepted subject to an independent audit to be carried out with regard to affairs of the company during their serving period.
The two letters further note that as requested by the both individuals’ letters for good standing shall be issued subject to audit findings.
In late August 2020 it was reported in the media that longstanding Japanese shareholders of Asia Capital PLC (ACAP) were demanding their money amounting to US $ 18 million back plus interest and legal fees alleging no return on investment due to serious malpractices by senior management.
That time in a leaked letter it was revealed that the apparent disappointment and extreme and unprecedented action of demanding money back is because ACAP hasn’t provided any return on their investments and Japanese have alleged malpractices and irregularities by the senior management of the company. That time Japanese investors held nearly 15% stake in ACAP with the first investment made way back in 2012 and there were two Japanese Directors on the Board. In the leaked letter Japanese that time had further clarified that they are not against the company but specifically over the loss of faith and confidence in the senior management which includes then Director/CEO Stefan Abeyesinhe and two Chief Operating Officers Reyhan Morris and Sandun Hettige.
Meanwhile Asia Capital official sources on the grounds of anonymity, highlighted that Reyhan Morris has tendered resignation dated 9th July to be effective from 27th August 2021 and Sandun Hettige has tendered the resignation dated 5th August to be effective from 30th September 2021. The two letters further note that Morris and Hettige held further directorships in 13, 15 companies respectively in Asia Capital group.
About two weeks ago, reports revealed another Director at Asia Capital Toshiaki Tanaka resigned from Asia Capital PLC upon inquiry on his vested deals with Japanese . Reports revealed that upon a year in restructuring the Japanese – Malaysian investments Asia Capital PLC on Tuesday the 18th August 2021 disclosed to Colombo Stock Exchange that Toshiaki Tanaka had resigned from the board with effect from the same day. Media reports highlight that Toshiaki Tanaka has sent his resignation letter when an audit inquiry was called by the entire board of directors at Asia Capital PLC about Tanaka’s dealings with the other Japanese investors who had pumped in money to Asia Capital but complicated the owning structure for leisure investments it had made that had vested grips with the Japanese.
Accordingly, reports revealed a leaked letter sent to Tanaka that highlights Asia Capital had demanded over Rs. 77 million from Tanaka for causing failure in continuation of other Japanese investors’ relationship, since now a complete breakdown of relationship has occurred from the side of Japanese investors.
