Presidential Commission of Inquiry: Concerns raised over Perpetual Treasuries transactions

Presidential Commission of Inquiry: Concerns raised over Perpetual Treasuries transactions

By Keshala Dias

19 May, 2017 | 8:05 pm

Transactions that Perpetual Treasuries Limited entered into in 2015 raised concern at the Presidential Commission of Inquiry today, May 19.

When the Commission reconvened after recess, Deputy Solicitor General Milinda Gunatilleke presented evidence pertaining to the transactions of the primary and secondary markets from 2015 and 2016.
The Additional Director of IT at the Central Bank, Wasantha Alwis, explained the contents in the documents.

Most of the transaction in these documents were by or on behalf of Perpetual Treasuries Limited.

The Deputy Solicitor General also led evidence to show that the Perpetual Treasuries Limited had entered into ‘Re-purchase Agreement’ transactions with the Employees Providence Fund in March 2015.

He noted that, as the return price for these transactions were the same, the system had not recorded any interest component for the EPF on those transactions.

Presidents Counsel Nihal Fernando, appearing on behalf of Perpetual Treasuries Limited objected, citing that the evidence created a misunderstanding that his client had obtained free money from the EPF.

The Deputy Solicitor General responded saying that the evidence did show that on occasions, that there are some transactions between Perpetual Treasuries Limited and the EPF where there was an interest component.

President’s Counsel Nihal Fernando said he would bring experts to elaborate on the evidence. The Attorney General’s Department called on Perpetual Treasuries Counsel to bring his client Arjun Aloysius, to provide explanation.

The Commission announced that it will be calling Arjun Aloysius to testify.

The Presidential Commission of Inquiry to Investigate and Inquire into the Issuance of Treasury Bonds will convene again on June 05, 2017.