CBSL Bond Scam: How Perpetual Treasuries stole people’s money in broad daylight

CBSL Bond Scam: How Perpetual Treasuries stole people’s money in broad daylight

CBSL Bond Scam: How Perpetual Treasuries stole people’s money in broad daylight

Written by Lahiru Fernando

27 Jun, 2017 | 10:19 pm

An alarming revelation was made at the Central Bank bond scam inquiry today June 27 at the Presidential Commission. The Attorney General’s Department revealed there is a pattern in trading designed to mask the real beneficiary in bond transactions.

According to the pattern, the Employees Providence Fund sells its securities at a lower price and buys them back at a higher price, while an intermediary makes a profit.

The examples presented by Counsel Milinda Gunathilake are as follows

November 5, 2015 – EPF sold Rs. 2.55 Billion worth of bonds to Pan Asia Banking Corporation at Rs. 110.56 per unit.

PABC in turn, sold all of it to Perpetual Treasuries Limited at Rs. 110.60 per unit.

EPF ———————–> PABC ———————–> PTL
(Rs. 110.56 per unit)                (Rs. 110.60 per unit)

PABC Profit : 04 Cents per Unit (0.4%)

November 6, 2015 (next day) – PABC purchased those bonds back at Rs. 119 per unit. And then sold it back to the EPF at Rs. 119.05 per unit.

PTL ———————–> PABC ———————–> EPF
(Rs. 119.00 per unit)              (Rs. 119.05 per unit)

EPF: Rs. 08.50 (8.5%) loss per every Rs.100 bond

Incidentally, November 2015 was when Perpetual Treasuries Limited made the highest profit in securities and had a net cash inflow of just over Rs. 210 Million.

It was revealed that the pattern has been designed at the expense of the Employees Provident Fund to which all the workers in the country contribute to on a monthly basis for their retirement.

News 1st exposed the bond scam back in 2015 – and we will continue to report on this scam that has resulted in the colossal loss of the people’s money.

Stay tuned with newsfirst.lk for more.

WE REPORT – YOU DECIDE

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