The allegation was made at a media briefing yesterday (23) held by MPs Ashok Abeysinghe and Achala Jagoda.

According to them, PLC has given Rs. 140 m without any security to an institution called Cosmic Construction (Pvt.) Ltd, and another Rs. 250 m for campaigning at the last presidential election.

Also it had paid, without Central Bank approval, a commission to Capital Alliance for a fixed deposit the Ceylon Electricity Board had opened at PLC for Rs. 79 m.

The two MPs said details of these frauds have been handed over to the FCID, which has conducted an investigation and reported to the attorney general.

They went onto say the People’s Bank has been unable to secure return of Rs. 35,000 m it had given as credit.

The bank had Rs. 790,000 worth of deposits by 2014, and Rs. 690,000 m of that amount had been given as credit, the MPs charged.