The Sunday Times news report alleges involvement of state bank in money markets – Perpetual Treasuries in the limelight again

The Sunday Times news report alleges involvement of state bank in money markets – Perpetual Treasuries in the limelight again

The Sunday Times news report alleges involvement of state bank in money markets – Perpetual Treasuries in the limelight again

Written by Tharushan Fernando

06 Nov, 2016 | 7:39 pm

Perpetual Treasuries Limited which is at the centre of a controversial Central Bank bond transaction, allegedly worth billions of rupees, continues to draw new attention.

The latest details, as reported by The Sunday Times newspaper, comes days after reports emerged that Perpetual Treasuries has purchased over six million shares of the National Development Bank during the third quarter of this year.

The Sunday Times newspaper, quoting a market source, says new details are beginning to emerge about the involvement of a state bank in the money markets in which Perpetual Treasuries Ltd allegedly played a primary role.

The Business Times section of the Sunday Times newspaper quotes the source, who spoke on condition of anonymity, that “Market players are afraid to talk about this. But one of the dealers from a division from the Employees Provident Fund was apparently transferred to this bank as the head of its treasury division and had been engaged in heavy trading along with PTL during the first half of 2016 when the second bond scam hit the market”.

The source said that this dealer is believed to have taken leave and gone abroad for higher studies.

The Sunday Times newspaper reported that the source echoed calls for a probe to be conducted by a Presidential Commission instead of an Attorney General-led investigation.

The source says the situation is complex as much of the deals were through a web of deals, thus recommending a forensic audit.

Senior Banker, Rusiripala Tennakoon said that since the much-awaited COPE report is now out,  no more speculation is needed and the report has made the sufficient recommendations

He pointed out that what is needed now is for the appointment of a Presidential Commission and such a commission should have the powers to impose punishments to perpetrators.  That is a very important thing and more than that,the commission should be able to conduct a forensic examination of the matters that have been already brought out because it involves so many several parties that have to be examined thoroughly and brought to book, he stressed.

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