22 November, 2019

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Central Bank Admits Highly Confidential Document On Perpetual Treasuries Was Leaked; Hunts For Whistleblower

The Central Bank has admitted that the highly confidential document on an on-site examination of Perpetual Treasuries Limited which was published by the media including Colombo Telegraph was in fact a leaked document, and the bank has lodged a complaint with law enforcement authorities to inquire as to who was behind the unauthorized release of the report.

Indrajit Coomaraswamy - Governor CBSL

Indrajit Coomaraswamy – Governor CBSL

The Secretary to the Monetary Board in a statement issued on October 10 said, “There has been widespread coverage in the press and electronic media regarding a report related on the on site examination of Perpetual Treasuries Ltd conducted by the Central Bank of Sri Lanka as the regulator of Primary Dealers operating in the Government securities market. The release of this report into the public domain has not been authorized.”

The bank also said that following this unauthorized disclosure, steps have been taken to strengthen the internal control mechanisms. “A complaint has also been made to law enforcement authorities to inquire into the unauthorized release of this report,” the statement said.

The bank said that the internal processes within the Department of Supervision of Non-Bank Financial Institutions have not been completed and the final report has not as yet been submitted to the Monetary Board for its consideration.

“At its last meeting held on 3rd October, 2016, the Monetary Board decided to hold a special meeting to consider issues related to the resolution of distressed non-bank financial institutions as well as the operations of Primary Dealers, including the current concerns regarding Perpetual Treasuries Ltd.

This special meeting will be held shortly and was scheduled before the Monetary Board was aware of the unauthorized release of the draft examination report on Perpetual Treasuries Ltd,” the statement said.

Meanwhile a good governance activist told the Colombo Telegraph that the bank has admitted the report was prepared inside the Central Bank. “The bank’s only worry is that it has been released without authority. So, the bank is going after the whistle blower; otherwise the facts are correct. Instead of taking action against the message, the messenger is to be shot,” the activist pointed out.

Following the leaking of the document, W.A. Wijewardena, a former Deputy Governor of the Central Bank of Sri Lanka said in his column that a ‘good-intentioned’ whistle blower from within the bank has released the document to the market.

Due to the scandals at Central Bank, during former Governor Arjuna Mahendran’s term, Wijewardena said that the damage done to the Bank’s reputation was far worse than the damage caused by the LTTE bomb explosion in 1996.

“This writer warned the Monetary Board in an article published in April 2016 that its anomalous interest rate policy would breed opportunities for market participants to borrow at low rates from the Central Bank and lend at high rates to the Government, a process known as ‘arbitraging’,” Wijewardena said in his article published on October 10.

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Latest comments

  • 16
    16

    “Wijewardena said that the damage done to the Bank’s reputation was far worse than the damage caused by the LTTE bomb explosion in 1996.”

    What a politics? Everything in Srilanka based on LTTE. Why cannot some one do some analysis of the damaged caused by LTTE and the damage caused by Buddhist Fundamentalism.

    • 9
      2

      if Wijewardhana assumes this way, so there should be something behind the deals.

      Today, I really dont know who has been adding the truth. That is my problem. The current CBG stays not attacking anyone. These men like Wjewardhan or the other may have a grudge on former CBG.
      Anything and everything can be – but guys please give us facts but facts.

      • 6
        5

        Two wrongs don’t make a right!
        the corrupt clown Ajith Nivard Cabraal looted the Central Bank with Mahinda Jarapassa on a smaller scale than Mahendan
        Both Cabraal and Mahendran should be in Jail and their assets taken to pays the National Debt of Sri Lanka.

        The looted funds of Perpetual Treasuries and Mahendran are in Singapore which is a money laundering Hub.

        The Malaysian Prime Ministers 1MB money laundering operation has been exposed in Singapore and Singapore has shut a second Swiss bank over 1MDB corruption scandal.

        Monetary authority orders closure of Falcon Private Bank and fines UBS and DBS. When will we see economic and social justice with corruption being legalized by IMF whose head is also facing corruption charges in France. IMF which is supposed to do global govarnance has legalized financial crime and now is collaborating with Ranil-Sira Jarapalanaya to load Vat tax onto poor people to pay for the Tax free lifestyle of the global 1 percent and Mahinda Jarapassa family and cronies in Sri Lanka.

    • 14
      2

      Please don’t shoot the messenger. Take action against the previous two Governors who jointly brought the country down.

    • 10
      4

      Typical UNPer. The heart melts down as soon as the terrorists are mentioned. LTTE is always mentioned because they have done the most damage to our country. JVP and UNP comes second and third.

  • 15
    3

    Does not Indrajith know that Whistle Blowers should be protected?

    The stink of corruption in all the financial institutions is massive. Mahendran and Aloysius should be arrested immediately.

    People of Sri Lanka needs ECONOMIC RIGHTS and ECONOMIC JUSTICE now!

    We will not pay any taxes when massive fraud and corruption and tax free lifestyles is the norm for politicians and their business cronies.

    People who steal billions like Arjuna Mahendran and the Avant Guard crooks fly in and out while a poor school by who steals a coconut is jailed.

    The FCID and entire judicial system of Sri Lanka are corrupt.
    Why have all the crooks who indulge in financial crimes including Namal Rajapaksa been released to travel overseas and hide their off shore bank accounts to more safe havens? These funds should be traced and returned to Lanka and the IMF should do this.

    Colombo Magistrate, Pilapitiya must be a Gota Jarapassa man who is playing games while Ranil-Sira Jarapalanaya turn a blind eye on massive corruption and dance to the tunes of the foreign donors who are equally corrupt!

    • 1
      1

      Don it depends on which side of the Whistle the whistle blower blowing todays Sri Lanka.

  • 16
    5

    “Damage done to the Bank’s reputation was far worse than the damage caused by the LTTE bomb explosion in 1996.” This is so true and hats off to Dr. Wije for saying so.

    Mahendran and Alluysius should be jailed and their assets ceased to pay of some the massive DEBT of Sri Lanka, rather than heaping taxes on the poor at IMF behest.

    IMF should track the off shore bank accounts and ensure that funds looted from developing countries are used to pay off debt. But IMF looks after global 1 percent.

    • 3
      2

      There was nothing like to be protected by the time new rulers took it over.

      Now talking about the reputation is a joke really.

      Alone to experience, under Kabral there had been no legal department to function independently for Central Bank.

      Anyone if not mad, would see it right, so then how should have it been before the current rulers took it over…

      Just forgetting as born today, to react this way is for jokers not forme.

  • 6
    1

    Whether by “Whistle Blowers” or others, the facts and true facts have come out; though the PM and his colleagues do not want to acknowledge. The worst is, the PM continues to keep this main player in the “Bond Scam” very close to him and even has the courage to present him at various meetings at world forums as if this country hasn’t got such an equal to match his talents. He, (the PM) is quite aware how the foreign missions study the subjects and equally the background of the delegates who accompany the leaders. This whole subject of the “Bond Scam” (popularly termed) has been already studied and connecting developments, starting from the appointment of “Committees” to COPE investigations are well analysed and documented by foreign Govt. Agencies. So taking the main man involved with you to world forums is a big mistake done by the PM. This is what happened to ex President MR, when he took with him Mr. Sajin Vas Gunawardane to world forums. All knew he was a “class A” crook and no one cared to give any credence to those meetings and consequent outcome. Now, unfortunately, the present PM thinks by taking an “educated schemer” he could give weight to his negotiations. No, Not at all. That could be one reason for not seen that very many expected investors are not coming, but talking. This Govt. made a big BLUNDER from the very start of the “Bond Issue” and provided much wanted ammunition to the MR & Co. to talk for the rest of the life of this present regime. Mr. PM, you are making matters worse by keeping this person close to you. The least, it is time to keep him at arms length. So long as you are with him, it would be a PERPETUAL HEADACHE for you as well as the Government.

  • 9
    1

    Looks like Wijewardena is antagonised and DISAPPOINTED that his earlier warnings were not heeded to, so he draws attention to this whistle blowers story and calls him “good intentioned”. Does he think that had the CB listened to his warnings theses stories would not have been leaked ? What a man !

    The second point is that the Bank should find out who the whistle blower is but refrain from acting on the information. Maybe it will be good to highlight who he is to the Public and let the others so inclined within to learn that CB’s unauthorised information must not be made known until the Bank releases the information. There are “SPIES and UNDESIRABLES” still within the CB and without (those retired).

  • 6
    1

    Here goes all the hopes when Dr Injrajith was appointed as the governor. Arjun or Dr Injrajith all are staunch UNP supporters. They won’t turn their backs on their religion (the corrupt UNP i mean)

  • 6
    1

    Damn the Whistleblower…………………Indrajith.
    Are the facts correct in the leaked report??????????
    If correct, Act on it fast without any further delay instead of speaking nonsense.

    Perpetual makes Rs. 5200m profit. Is it Pea Nuts? Investigate.
    Confiscate the 10% shares Perpetual bought in the NDB immediately.

  • 3
    0

    Arbitraging ..Aloysious has taken it to a new level..

    5000 Million Yahapalana LKR Annual profit for a company which turned over only 700 Million in the previous 12 months..

    I don’t think Daham is into Economics..

  • 3
    0

    Dr. Indrajit Coomaraswamy – Governor CB,

    People did not hear any bad news about CB for the last few months and they thought that everything
    was going fine at CB and happy that they have at last found the right man to run the Bank but this news is shocking.

    With your vast experience in this field, did you not foresee this
    ‘leak’ forthcoming, with various vultures hovering around CB. and
    why was enough precautions not taken to protect the secrets of this
    great institution?

  • 5
    3

    Indrajith, you are no different from your former CB governor! (punishing the mailman for bringing the bad news)!

  • 3
    0

    Have you taken any action to look into the contents of the leaked report rather than going behind the whistle-blowers. I believe the recent RTI has made provisions to protect and safeguard them. So investigate the contents Mr. Coomaraswamy dont be a political puppet

  • 2
    0

    Arbitrage? call it fraud. dont legalize by using jargon most people wont understand.
    FIL & SIL should be in jail. pay fines 3 times the amount.

    • 2
      0

      FIL is now the CFABR,, Chief Financial Advisor to Batalanada Ranil,

      And is stitching up mega deals to make Yahapalana suckers to be on par with the Swiss in 1500 days…

      How cool..

      SIL evidently is sailing the high seas in a super luxury Yatch .. And occasionally drops in to Megapolis in his spanking new Helicopter.

      That is what some dude said in his comment here the other day..

      Wonder in which Bank he has parked that cool 5 Billion LKR ROI in Yahapalana Inaugural Bonds …YIB ?

  • 3
    0

    A whistle blower whether Snodown or Assange, are positive people who leak information not for his own benefit but for the benefit of the people! Hounding them is not Yahapalanaya! YahaPalanaya should prevent things from happening and Whistle blowers will not be born!

    Dear Indrajith, you are there to prevent unjust things from happening NOT hunting down people who point fingers at unjust things!!!

  • 0
    0

    Time for an alternative notion of the truth, that is missing in this argument!

    When you have a chance of cleaning up Rs5B profit and you don’t make it, then you are responsible for actually losing this on behalf of the people of Sri Lanka. Where is the Media coverage on this error? Not surprising considering the idiots called Journalists.

    The GM of the Bank of Ceylon and possibly also the Chairman (who knows nothing of banking being a lawyer) should resign for their dereliction of duty in managing this Bank to give their owners, the Govt. the best possible profit.

    It was obvious to all, that the Central Bank (CBSL) had a massive borrowing requirement to meet their obligations. Instead of bidding for the bonds on their own account through their Primary Dealership, they merely lent the Money to Perptetual Treasuries(PT) to do the bidding and making Rs5B profit in two months, April and May 2016, by selling at a profit on the secondary markets.

    Where is the media when it comes to reporting this? NOTHING, ZILCH! Why have they not picked up on this? Simply because they are following their own agenda, in hounding profitable businesses and our Financial Media, obviously don’t like people legitimately making money! The STUPID writers of the Daily Mirror pick up on a success story and turn it round somehow to look as if it was somehow obscene, or INSINUATE that PT did something wrong in making this kind of money! Don’t blame PT blame BOC instead for their risk averse attitude.

    On a different note the Central Bank senior staff MUST be interdicted for leaking this information, and Public Debt Department fired for being unable to get a better rate which to anyone was far too high, as seen by the profits in the secondary market selling them for much more than purchase. Why do we tolerate incompetent people and pay them so much to litter these positions in the CBSL?

    It is time therefore that the readers understand BOTH halves of the attached link which only shows one side and not the fact that the CBSL and BOC are really to blame for the fiasco. All Bank Primary dealers are abrogating their responsibilities.

    The CBSL gets monthly information on the profitability of the Primary Dealers, and that information is NOT shared with the Public Debt department which therefore does NOT realize how big their mistakes are in pricing Bonds. Its time for a cull of the top staff of the CBSL, as they are clearly shown to be costing billions to the Country. That is where the real problem lies NOT with PT!

  • 0
    0

    Leaking information of a confidential nature is a punishable offence.
    But there is a moral argument for ‘whistle-blowing’ if the information was leaked in public interest, when the institution attempted to deny legitimate access by suppressing reports or distorting information or other means.
    The moral argument fails in circumstances where intentions are not very clean.

    The doubt I have here is whether the whistle-blower had jumped the gun.
    Only time can tell.

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