CB bond issue: PT makes profit of Rs.14,845 Mn: JVP

Testifying before the Presidential Commission on on the Central Bank bond issue, JVP provincial councilor Wasantha Samarasinghe said yesterday Perpetual Treasuries (PT) had made a profit of Rs.14,845 million on the sale of bonds from February 27, 2015 to May 26, 2016.

He said according to his calculations the Central Bank had suffered a loss of Rs.55,000 million during this period.

Mr. Samarasinghe said the decision to increase the interest rate to 12.5% before the acceptance of the bids amounting to Rs.10.058 billion bids on February 27 had affected the country’s economy with the State incurring a loss of more than Rs.144,000 million.

When asked how he obtained the details to prepare his reports, Mr. Samarasinghe said several primary dealers had provided significant details on this matter.

The Commission of Inquiry said the identity of those primary dealers would be vital to the inquiry and will undertake to record their evidence in camera as such asked him to reveal the names of the primary dealers who gave the details.

“Yes, I can identify the primary dealers who provided these details on the assurance of protecting their identity,” Mr. Samarsinghe said.

Mr. Nihal Fernando PC, who appeared for the Perpetual Treasuries and Counsel Chanaka de Silva who appeared for Arjun Mahendran cross examined the witness.

Some contradictions came to light during the cross examination on the yield rates and the interest rates cited in the drafts prepared by the witness raising doubts to the accuracy of the reports.

Meanwhile, in his evidence MP Weerakumara Dissanayake, who was a member of the two COPE committees told the Commission yesterday that during the COPE inquiries it was evident that the Central Bank had disregarded the advise of the Auditor General.

The Commission comprised Supreme Court Judges K. T. Chitrasiri, Prasanna Sujeewa Jayawardena and former Deputy Auditor General Kandasamy Velupillai. They will resume the inquiry today. (Shehan Chamika Silva)