Monday, 06 July 2020 15:21

CB extends alleged bond scammer Perpetual Treasuries suspension

The Monetary Board of the Central Bank has decided to extend the suspension of Perpetual Treasuries Limited (PTL) from carrying on the business and activities of a Primary Dealer for a period of six months with effect from 05th July 2020.

This action has been by the Monetary Board in terms of the Regulations made under the Registered Stock and Securities Ordinance and the Local Treasury Bills Ordinance in order to continue the investigations being conducted by the Central Bank of Sri Lanka.

A Presidential Commission of Inquiry, which probed the rigged bond auctions that allegedly benefitted Perpetual Treasuries, has recommended criminal action against those involved and profits to be recovered.

Perpetual Treasuries owner Arjun Aloysius and its Chief Executive Officer are currently out on bail. Former Central Bank Governor Arjun Mahendran, who happens to be the father-in-law of Aloysius, is absconding court and has an Interpol red notice for his arrest.

According to the Auditor General, the estimated avoidable loss suffered by the government at February 27, 2015 bond scam was nearly Rs.688.7 million.

The government’s estimated loss incurred due to bond scam was Rs. 8.5 billion.

Presidential Bond Commission reported that The Employees Provident Fund (EPF) and other government institutions had lost more than Rs 8,524 million or Rs 8.5 billion following the bond scam

(LIN)

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