The Central Bank has extended the suspension on controversial primary dealer Perpetual Treasuries Limited by further six months with effect from today Friday 05.
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, in order to continue the investigations being conducted by the Central Bank, CB announced.
The suspension on Perpetual Treasuries was first implemented on July 6, 2017 for a period of six months and then was extended by another six months on January 06, 2018 and by another six months on July 06, 2018.
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.
(LI)