Written by Staff Writer
10 Jul, 2017 | 9:02 pm
Arjun Aloysius of Perpetual Treasuries made arrangements to be represented at the Presidential Commission of Inquiry into the bond issue.
Recordings of phone conversations between Pan Asia Banking Corporation, Perpetual Treasuries Limited and the Employees Provident Fund were played at the Commission today.
The Deputy General Manager of Treasury at Pan Asia Banking Corporation, Richie Aruna Benedict Dias stated, PTL calling PABC and informing them that the buying and selling rates were not an accepted practice.
He said the normal practice is for the buyer and seller to state their rates and then reach a rate that is beneficial for both parties.
The witness stated that when PABC was acting as an intermediary for PTL and the EPF, the rates were pre-determined.
Explaining the process to the Commission, the witness said that Kasun Palisena would call PABC and given the rate of the sale and purchase.
Thereafter, PABC would call Saman Kumara at the EPF to confirm the deal and once it is confirmed the transaction would go ahead with PABC acting as the Intermediary.
He testified that this was the pattern that existed when PABC played the role of Intermediary.
Richie Dias doubts if the rates agreed were mutually agreed to benefit both the seller and buyer.
He said the 1/2 basis point profit margin for PABC was agreed by the former Chairman of the Bank, Nimal Perera, and it had been confirmed by Arjun Aloysious as well.
Richie Dias said the bond sales of Nimal Perera, the former Chairman of PABC was also accepted by the EPF.
PABC earned a profit of Rs. 17 million and Rs. 15 million for the year 2015 and 2016 respectively, performing the role of Intermediary only.
The witness said, PABC usually trades securities with another party only via a money broker adding that it was unusual to by-pass the process and deal directly with another market participant.
He testified that PTL had started to bid through PABC only after the practice with BOC stopped. He added that PABC never requested PTL to bid on behalf of them.
Richie Dias said the former Chairman of PABC gives the rates for which his securities would be sold to the EPF.
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