Bond scams caused Rs. 10bn loss to EPF – The Island newspaper reports

Bond scams caused Rs. 10bn loss to EPF – The Island newspaper reports

Written by Keshala Dias

27 Mar, 2017 | 10:44 pm

The Island newspaper reports that bond scams under the current government have caused a staggering loss of about Rs. 10 billion to the Employees’ Provident Fund (EPF).

The newspaper quotes a yet to be disclosed report by a special investigation, commissioned by the Monetary Board of the Central Bank, which would be submitted to the Committee on Public Accounts in Parliament and the Presidential Commission of Inquiry into the controversial bond transactions.

Accordingly, the report was submitted to the Monetary Board meeting on March 23 by a team led by Assistant Governor Kumudhini Saravanamuttu, who looked into the investment of EPF monies in treasury bonds in 2015 and 2016.

The Island reports that two high-ranking CBSL officials including one involved with the EPF have been accused of their links to a primary dealer.

According to the newspaper, the report sets out in detail the manner in which the EPF scam had been carried out by the two high-ranking CBSL officials who had connived and done deals with the Primary Dealer.

It has also been found that the deals, which caused massive losses to the EPF, have been done directly with the Primary Dealer or routed through other intermediary Primary Dealers.

However, the probing team had found an audit trail which enabled them to trace all the transactions and calculate the losses to the EPF.

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