The workers are facing a predicament since the loan given to them to purchase stocks in the Colombo Stock Exchange is now being deducted from their salaries together with the interest payment to the loan. Some workers have lost their entire monthly salary due to the deduction of the loan money and interest payments.
The Softlogic employees have used the loans to purchase the stocks brought by Chairman/Managing Director of the Company, Ashok Pathirage from the Colombo Stock Exchange at Rs. 20 a share. Pathirage has sold the stocks to his employees at Rs. 100 a share. Therefore, Pathirage has made a quick profit of Rs. 80 for a share.
However, due to the fall in the Colombo Stock Exchange, a stock is now priced less than Rs. 20. If the stocks were sold now in the market, the employees would have to bear the total loss. Although the matter has been raised with the company’s management, the employees are being told to be patient since the value of the stocks would increase soon.
The Japanese Managing Director and Singaporean General Manager of Singapore’s Mitsui Company were sentenced to seven years in prison by the Singaporean authorities after they had carried out a similar transaction.