CB has given Rs. 66 bn to Perpetual Treasuries: Minister

27 October 2016 08:46 pm

COPE member and Sports Minister Dayasiri Jayasekara said the Central Bank had given Rs. 66 billion to the primary dealer Perpetual Treasuries between February 2015 to March 2016 and added there was a prima facie case against former Central Bank Governor Arjuna Mahendran in respect of his tenure as the governor.

Minister Jayasekara also said the information before the Parliamentary oversight committee COPE reveals that the Perpetual Treasuries has obtained these loans without any security and invested them in bonds.

Addressing the weekly SLFP news conference, Minister Jayasekara said however, after an inquiry conducted under the new governor on the issue, the Perpetual Treasuries have been fined for a ridiculous Rs.21 million for the improper transaction.

Minister Jayasekara said it was extremely unusual and disproportionate that the Perpetual Properties alone had recorded a profit of 1853% from bond dealing while all other 15 primary dealers had earned only 37% of profits in 2015 and 2016 and added former governor Mahendran should not have accepted the governor’s post in the first place when he was offered it while his son in law was a primary dealer or at least he should have asked his son in law not to act as a primary dealer while he was serving as the governor.

He said there must be a strong fool proof mechanism to deal with this kind of financial misappropriations involving the public money and the government must direct its attention on priority basis to bring legislations if the current laws were inadequate to deal with major financial crimes. (Sandun A Jayasekera)

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