CBSL draft report on Perpetual Treasuries leaked to the media

CBSL draft report on Perpetual Treasuries leaked to the media

CBSL draft report on Perpetual Treasuries leaked to the media

Written by Lahiru Fernando

11 Oct, 2016 | 10:00 pm

A draft report compiled by the Central Bank on Perpetual Treasuries, which has been accused of being involved in the Central Bank bond scam, was recently leaked to the media.

Civil activists point out that the Central Bank should now launch investigations into alleged fraud that took place during the bond issuance, instead of investigating as to how the document was leaked.

The CBSL has issued a media release stating that they have requested authorities to launch an investigation into the unauthorised release of a report related to the examination of Perpetual Treasuries conducted by the Central Bank.

The release notes that the report had not been completed and that the final report has not been submitted to the Monetary Board for its consideration.

Charges have been levelled that the government suffered extensive losses due to actions related to the February 2015  and March 2016 bond issuance.

Civil activists charge that primary dealer Perpetual Treasuries, which is allegedly owned by Arjun Alyosius, the son-in-law of Former Central Bank governor Arjuna Mahendran, earned an extraordinary profit through this ..

The Report

Refering to the report, W.A. Wijewardena (Former Deputy Governor of the Central Bank) stated that Perpetual Treasuries have borrowed Rs. 66 billion from CBSL at 7.5% and lent to the government at 13%, thus making big profits.

“The Central Bank has issued a statement today in the evening. It has not denied that it was a report that was prepared in the Central Bank. What it has actually said is that Central Bank has not authorised the people who had prepared the report to release it to public domain. So it’s a credible a report that had been prepared in the Central Bank”, added the Former Deputy Governor

Speaking on the report and its leak, Rusiripala Tennakoon stated:

In my opinion, I think the person or the team that prepared this report that did this initial investigation to formulate this report would have certainly known one thing – that it will not have an official sanction in the end. Whatever the findings are for that reason they had no choice but to leak it to the public – release it and let the public take care of it”.

Meanwhile, the Acting Minister of Finance Lakshman Yapa Abeywardene has stated that the government trusts the (former) governor of the central bank and believe him to be an honest individual.

“Let us give him a chance, let see what decision the monetary board reaches after they convene on Friday. Else there is another process that can be adopted, give the president some time to implement it”, he added.

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