The ACF said,
Central Bank of Sri Lanka (CBSL) has issued a statement after its investigations report on the controversial Perpetual Treasuries Limited (PTL) has been leaked. CBSL does not deny the authenticity of the leaked report and states that it was only a preliminary report.
The socialization of the report is a progressive move so that the public is made aware of the real facts surrounding the treasury bonds controversy which has caused Sri Lanka grave financial consequences. Those who leaked the report have given us access to information that could have never reached us, but concerns the people of the country directly.
Anti-Corruption Front (ACF) was the organization that publicized the two controversial Treasury bond deals carried out by the CBSL in 2015 and 2016. ACF advisor Rajith Keerthi Tennakoon took legal action to prevent Arjun Mahendran from being reappointed the CBSL governor. ACF took these actions to reveal one of the most significant financial irregularities which took place in recent history.
Instead of launching an investigation to determine who leaked this report, the CBSL must take action against those who are responsible for this financial scam, which led to an erosion of trust of the people on the CBSL. ACF believes that those who leaked the report should be protected, that is the only way to encourage people coming forward to reveal irregularities in various establishments.
* Given below are some of the significant revelations from the leaked report
1. CBSL has carried out internal investigations from November 24 to 26, 2015, July 26 to 28, 2016 and August 4-6, 2016.
2. Perpetual Treasuries Limited (PTL), owned by Arjun Aloysius, son-in-law of former Central Bank Governor – Arjuna Mahendran, has placed bids outside the interest rates of the market. It is an illegal action.
3. Perpetual Treasuries Limited (PTL) has not revealed the list of its customers, timely and truthfully, to the Lanka Secure System.
4. Perpetual Treasuries Limited (PTL) has signed 172 MRA agreements and 132 agreements with various clients by May 2016.
5. Perpetual Treasuries Limited (PTL) has placed bids, beyond its financial capabilities, in Treasury Bond auction.
6. During the Treasury Bond auction on 29 and 31 March 2016 Perpetual Treasuries Limited (PTL) has placed bids worth 49.4 billion and according to laws it should have paid 42 billion as acceptance credit by April 1, 2016. However they didn't even have the financial capacity to pay Rs 36 billion. This it has to take a substantial debt, from Reverse Repo Auction, financial market and one day liquidity facility.
7. Perpetual Treasuries Limited (PTL) has to pay Rs 21.3 million as a fine since they were not able to pay up.
8. However Perpetual Treasuries Limited (PTL) was able to get capital worth Rs 4652.7 million from selling treasury bonds it obtained.
9. Ms. Inoka Mohotty, deputy director of CBSL, has prepared this report and there were moves to transfer her to another department to thwart the investigation.
Perpetual Treasuries Limited (PTL) has made a net profit of Rs 5.1 billion by the end of the financial year which falls on March 31, 2016. Compared to the net profit of Rs 0.9 billion, this is an increase of 430%. This is a massive profit for a company that only employs 20 people.
ACF believes that those who leaked this report must be protected and it will mediate if anyone attempts to punish those whistle-blowers.
