State-owned National Savings Bank (NSB) yesterday said it was in the process of undertaking a financial due-diligence of the scandal-hit primary dealer Entrust Securities PLC.
“An action plan for restructuring of Entrust Securities PLC will be formulated thereafter,” NSB said.
The Central Bank on January 5 said a management team from NSB will be installed at Entrust Securities amid allegations of large-scale fraud and mismanagement.
Entrust Securities is the largest primary dealer in government securities after banks.
Central Bank Governor Arjuna Mahendran said liquidity issues were seen in Entrust since 2013 but a recent routine check flagged major problems. “This is the first time that a primary dealer has had a problem. We are keen to see that public confidence is maintained on government securities,” he said.
Though the Central Bank did not give a figure, Mahendran admitted the defrauded amount could run into billions of rupees.