Written by Keshala Dias
15 Sep, 2017 | 8:48 pm
It has come to light that Arjun Aloysius of the Perpetual Group had lied to COPE on the bond inquiry.
In a statement to COPE, Arjun Aloysius had said he was not involved in the operations of Perpetual Treasuries Limited.
However, during the cross examination of Kasun Palisena, the Attorney General’s Department had pointed that out Arjun Aloysius was in fact involved in Perpetual Treasuries Limited operations, and is the decision maker at Perpetual Treasuries Limited.
Kasun Palisena, the CEO of Perpetual Treasuries Limited admitted that Aloysius had in fact deliberately lied to COPE on the matter.
In addition, the Attorney General’s Department pointed out Arjun Aloysius would be aware of Perpetual Treasuries Limited violating the Central Bank regulation on a frequent basis.
Members of the Presidential Commission were not pleased with the manner in which Palisena was responding to questions and noted that if he is not telling something true, to at least make it believable.
Deputy Solicitor General Milinda Gunathilaka said Kasun Palisena included members from state institutions in the ring that was formed to help Perpetual Treasuries Limited make unlawful gains.
He stated that Perpetual Treasuries Limited made fairly substantial cash payments through W. M. Mendis & Company Limited and Perpetual Capital Holdings to various other parties.
The money that is moving are the capital gains that have been made by Perpetual Treasuries Limited.
The Deputy Solicitor General stated that Perpetual Treasuries Limited generates money and distributes them for unlawful purposes with only Arjun Aloysius knowing who is paying to whom.
He added that the employees at Perpetual Treasuries Limited were not aware where the money was going.
Justice Prasanna Jayawardena, taking a look at the evidence presented, noted that Perpetual Treasuries Limited makes payments on the instructions of Arjun Aloysius and these payments are going to Aloysius’ pocket or to be given to another party which Perpetual Treasuries Limited refers to as ‘Little Jhonny’.
Some of the other Perpetual Treasuries Limited code names identified by the Attorney General’s Department were ‘Bee Hive’ and ‘Fashionable Farmer’.
The Attorney General’s Department said Perpetual Treasuries Limited became successful because of unlawful inside information and because they manipulated the market.
It stated that it was also because of the yield predictions of Perpetual Treasuries Limited employee, Gajan Devarajan, Kasun Palisena’s quick thinking and team Perpetual Treasuries Limited which included Arjun Aloysius.
Deputy Solicitor General, Milinda Gunathilaka highlighted that Perpetual Treasuries Limited made phenomenal profits as it purchased bonds at a very low price and dumped them at very high prices with the Employees Provident Fund.
In April and May 2016, Perpetual Treasuries Limited made profits to a tune of over Rs. 2 billion per month.
Notably, after the Employees Provident Fund stopped trading in the secondary market, the profits of Perpetual Treasuries Limited had plummeted.
It was placed on record that Kasun Palisena was paid a nine digit bonus by Perpetual Treasuries Limited during the time in question.
In relation to the Perpetual Treasuries Limited call recording system, Palisena said he had nothing to do with deleting certain phone calls.
However, the Attorney General’s Department said from the evidence given by both the Senior IT Executive and Chief Dealer at Perpetual Treasuries Limited that it is clear that Palisena had instructed them to delete certain phone calls that were harmful to both Palisena and Arjun Aloysius.
In addition, it was noted that the call recording system at Perpetual Treasuries Limited crashed on July 06, 2017, the very day Perpetual Treasuries Limited was suspended from trading as a Primary Dealer.
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