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Financial fraud in treasury bond auction!

Financial fraud in treasury bond auction! Featured

06 March 2015

There is a big controversy over a financial fraud said to have taken place in the Central Bank’s auction of treasury bonds on February 27 to raise Rs. 01 billion for the state, lankatruth reports.

It was earlier announced the loan would be repayable in 30 years with 12.5 per cent interest at maturity.

However, the auction was oversubscribed and the government had obtained a loan of Rs. 10 billion at an ordinary interest of 11.73 pc.

Son-in-law of CB governor

Appearing for the auction, Perpetual Treasuries Capital (Pvt.) Ltd. secured a sizeable share.

CEO of this company Arjun Alocius is the son-in-law of Arjun Mahendran, the Singaporean citizen, who is governor of the Central Bank.

The company was registered at the CB as a primary sales agent of treasury bonds in 2013, and it is alleged it has obtained a very high loan of Rs. 10 billion in order to earn a considerable profit.

Last modified on Tuesday, 10 March 2015 10:34
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