20 October, 2017

Central Bank Suspends Perpetual Treasuries For 6 Months

The Central Bank of Sri Lanka today decided to suspend Perpetual Treasuries Limited from carrying out business and other activities as a Primary Dealer for a period of six months.

The Central Bank however assured that it will take necessary measured to ensure that the suspension will not have a disruptive impact on the market.

Mahendran

In a statement issued today, the Central Bank said, “The Monetary Board of the Central Bank of Sri Lanka on July 06, acting in terms of the Regulations made under the Registered Stocks and Securities Ordinance and the Local Treasury Bills Ordinance, has decided to suspend Perpetual Treasuries Limited (PTL) from carrying on the business and activities of a Primary Dealer for a period of six months with effect from 4.30 p.m. on July 06, 2017.”

Perpetual Treasuries which has been accused of having a direct link to the Central Bank Treasury Bond scam during ex-Governor Arjuna Mahendran’s term, recorded a profit of Rs. 5.1 billion for the year ending March 2016, which was 430 percent increase in profits in comparison to the previous year.

In February, incumbent Governor of the Central Bank Dr. Indrajit Coomaraswamy instructed Inspector General of Police Pujith Jayasundera to conduct an investigation into Perpetual Treasuries. However, despite the directive, sources said that the police has been soft peddling the probe, because it is a well-known fact that Perpetual Treasuries is directly linked to Mahendran and his son-in-law Arjun Aloysius, who are closely associated to Prime Minister Ranil Wickremesinghe.

During, Mahendran’s tenure as Governor of Central Bank, Perpetual Treasuries made the news rounds after being allegedly involved in a Treasury bond scam. Reports claimed that Perpetual Treasuries was issued, directly and indirectly, with Rs. 5 billion worth in bonds at 12.5%. The COPE report released last year also recommended that a law enforcement agency must carry out an investigation into Perpetual Treasuries Limited and how it received undue advantage as a primary dealer from the Central Bank.

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  • 30
    4

    Arjun Mahendran is now so financially broken that he comes for the inquiry in tiny Alto cars or taxis.

    I think chaps like Mahendran his son in law and RW think the Sri Lankans, esp the Sinhalese ,are absolute donkeys who will be fooled by such cheap tricks.

    They maybe , after all they have a globe trotting comedian like RW for a Prime Minister to look after the nation’s interests and an economic hit man like Mahendran as governor of the Central Bank to look after their money !

    • 9
      2

      “Arjun Mahendran is now so financially broken that he comes for the inquiry in tiny Alto cars or taxis.”

      he could have saved himself from financial ruin by selling those million rupee suits for half price,but coomaraswamy confiscated them saying it was CB property.

      anyway trishaw or alto is better than a prison van.

      • 5
        2

        Great news. We must not be so cynical as to imagine that ALL are rogues!

        I’ve been a reasonably honest man all my life. I’m not perfect, of course, but I’ve never cheated like this.

        I’m sorry, I can’t write much. I’ve got to go down the hill to the school nestling in the valley, there to pick up the threads to all the horrendous things that the Anglican Establishment of Sri Lanka did last year. Today, we have an Executive Committee meeting of the OBA, the last before the Annual General Meeting on the 12th of August. This is what I wrote last year; from the third you could follow the thread to the first article – if you have nothing better to do.

        https://www.colombotelegraph.com/index.php/the-thomian-pharisees-are-unrepentant-why-this-matters-to-all-sri-lankans/

        To expose crooks one has to be patient, consistent, and not afraid to reveal who you are, and suffer the consequences – as I have, for whistle blowing. My real name and photograph had to be revealed.

        This is the problem with Rajapaksa apologetics like K A Sumanasekera. We can’t really identify them. My identity is clear. I keep challenging the Priest-Headmaster to put their version of the story if they dare!

        In this instance the crooked guys are sanctimonious priests and Bishops. I am the main accuser, the main culprits are the members of the Board of Governors of the Colleges of S. Thomas’ – which includes the school at Mt Lavinia, of course.

        • 2
          0

          Sinhala_Man

          I thought you had given up on this. Good to see you haven’t given up the fight. Perhaps you can look into the latest doings of the bishop – trying to put up a multimillion rupee swimming pool complex in the colpetty institution while seems the rest of the school collapses around it.

          • 2
            0

            You’re right, Bagehot. There is a limit to the amount of flack one guy can take. However, words of encouragement from the likes of you, make me crazy enough to keep going.

            So few are willing to speak out unless there is some possibility for them to achieve something. I no longer believe that there is a universal law that truth will triumph, but I will keep going.

            These systems corrupt even those who start decent. The Gurutalawa swimming pool is lovely. But where are the children we have to educate?

            For Bandarawela – a month ago the popular Harin Fernando turned up at an event with Ranil, and for the second time said Thomians are superior to Josephians and promised a million bucks of his own for the pool. Much applause, nothing has materialised.

            August: Bishop to be Chief Guest at Prize Giving on 4th. OBA to meet on the 12th. Change of Head in January 2018.

          • 2
            0

            I wish some of you who express support for me (which in itself is a great encouragement) would establish direct contact with me.

            There are clear indications that there is corruption and sexual abuse throughout the Church (Bishop Dhilo being exempt from all that), but I don’t like dealing with sleaze. If only we can get some transparency in what the Church does, we would have achieved much.

    • 8
      0

      Harry boy ….You made my day…….I don’t know why Dr Ranil’s boy Minister , Gajan Gune has it import Sheep from New Zealand……He could have rounded up all the Donkeys in Mannar and start making Mortadella for our Yahpalan suckers…..

      • 11
        1

        because they don’t shrink when it rains. and CBK is now the holder of the central bank- take good care of the london connection and more scams to come where no questions will be asked or told.

    • 19
      3

      I will not vote for this Government until meaningful action is taken against the Rajapaksas Criminal Network!!
      Every citizen of this country should do so and hold our Government accountable to the promises they made!
      We want INTERPOL involvement along with the FCID…

      #WillNotVoteTillRajapaksasArrested!

      #FCID #INTERPOL

    • 0
      1

      So what? I use an alto for daily city runs as parking is difficult and it’s just more convenient. Doesn’t mean anything

      • 4
        0

        A sign of the times. An Alto doesn’t have the cachet of a Benz, but
        what we really need is a rain-proof motor bike/scooter.

    • 2
      2

      This is stated in the article:
      “Reports claimed that Perpetual Treasuries was issued, directly and indirectly, with Rs. 5 billion worth in bonds at 12.5%.”
      And also:
      ” recorded a profit of Rs. 5.1 billion for the year ending March 2016, which was 430 percent increase in profits in comparison to the previous year.”
      Only one of the above can be true.
      12.5% of 5 billion is about 625 Million.
      I am NOT claiming the deal is above board, but I think the figures are highly exaggerated.
      5.1 Billion is more than 100% of 5 Billion.
      CT, you ought to check your figures.

  • 11
    1

    Sirisenam is in a great hurry to punish Rajapakse saying that his life is at risk but not interested in taking any action against the man behind the ‘Great Bank Robbery’ in Sri Lankan history. As usual, the Presidential Commission will drag on until people forget that scandal. JVP is using SAITAM issue to divert the attention from burning issues. SAITAM is affecting only a tiny fraction of the Sri Lankan society but at the moment it is highlighted as the national issue. SAITAM, Gnanasara, What will be the next?

    • 8
      1

      The JVP is making a huge mistake by keeping the medical faculties in STATE UNIVERSITIES closed.

      The meddas have always been the most disgusting faculty in every University. The are not USUALLY bothered about real social issues, only concerned about themselves. They are normal human beings until they enter the University; from then until they finally close their eyes in death (as all of us have to), they imagine that they are a special breed.

      What this also means is that at least 80% of them will be wanting to be at lectures. But the 10% of JVP activists have now prevented those medical faculties from operating for FOUR MONTHS. Educating these guys costs us a lot of money. No I’m NOT a guy who pays DIRECT income tax because I’m a poor guy, but all this money that is spent is OUR money – earned by whom? Mostly housemaids in the Middle-East.

      I abhor all forms of violence, and I’m not advocating this: but the day is not far off when the people will turn on the entire Medical Profession, and give them the treatment that even I feel that they deserve.

      Whatever good the JVP has recently been agitating for is being undone because of what they are doing over SAITM. Let SAITM students study in Sri Lanka instead of carrying money away from our country, but I don’t expect any more commitment from SAITM doctors than from the GMOA guys.

  • 14
    2

    These thieves made a killing out of the bonds by selling them to the EPF at a great profit. The EPF Trustees also are equally responsible because they could have been a primary buyer from the Central Bank. Dirty Ranil and his cronies, and the Police Chief (as your article reveal), need to be hauled before the law.

    • 1
      0

      “These thieves made a killing out of the bonds by selling them to the EPF at a great profit. The EPF Trustees also are equally responsible because they could have been a primary buyer from the Central Bank.”

      What you say is true.

      Bond-sales and bond-buying are controlled by the Central Bank ………… because EPF is controlled by another section of the Central Bank. These huge commissions are nothing but monies paid to political-lackeys to “facilitate” the transfer of funds from one section of the Central Bank to another section!

      But what you fail to say is that, this ploy was discovered and honed to perfection by Navid Cabral under “the Minister of Finance” Mahinda. A far greater amount was stolen by Rajapakse-cronies using this ploy.

      Mahendran and Ranil just used what was already in place; they did not invent it. But the imbeciles got caught and are now left holding the baby. The Rajapakses were a billion times better at this game.

      Give credit where it’s due.

      People have to get away from partisan politics and look at the truth for what it is.
      But, no one is holding their breath.

      Lankans will always be Lankan. Their logic is always faultless. That’s why I love them.

      Good ol’ sunny isle paradise!

  • 7
    0

    6 months is ideal for aloysious to take a break from work to ponder what to do with the loot of 5 billionThe distillery in the east might not work out with all the bad publicity. When modi changed the currency notes he would have got the shits,but then would have sighed with relief when thinking it is ranil running the show here ,not modi.

  • 7
    0

    This Bond Robbery is nothing …….Bodhi Sira was boasting that he discovered the biggest Robbery of the previous Regime…..And his mouth piece Rilawa Rajitha confirmed Sira’s finding at a Yahapalana Rally , pointing his Rude Finger, towards Heaven… 4200 Million LKR was siphoned off from the Treasury to the Irrigation Ministry on 7 Jan 2015…….How cool……Sira is going to catch the crooks , and punish them in t he next 3 to 4 days…….That is cool too……….But I checked the subject Ministers then………..Surprise…….Surprise ….. They are the same trio who have been sucking Sira’s ******* for the last two and a half years……..Siripala, Dumiya and Soysa……..How cool is that ……May be Rilawa thought it was Rajapaksas…………!….

  • 8
    0

    No point in bolting the stable after the horses have left.
    CBSL should sack the CBSL officers who supported the bond scandal and miss- management of FPF funds.

  • 3
    0

    In Sri Lanka , politicians = parasitic bloodsuckers .

  • 11
    1

    This is the Mother of All Frauds!

    The profit was Rs. 5.1 Billion in 2016? Just in one year? Holy sh…

    Their profit is 430% increase than the previous year. 430%? Man, who wants investigations, this is more than enough. No company can make such a huge profit legally. Perpetual Treasuries were given undue advantage by former Governnor Arjun Mahendran.

    How could they function like that? The rogue Perpetual Treasuries is making billions and people have to pay for the long government took from them for 30 years. Blood hell. This is so unfair.
    In any case once they pull from the market, the total collapse of our economy is inevitable. That will be Soros -II type operation.

    Before it happens, the government should freeze all assets belonging to Perpetual Treasuries and recover the loss.

    Central Bank Bond Scam was the prime reason for the collapsing of the economy in early 2015.

    If this happens in another country, this coumpany’s assets would have been frozen from the day investigations started. How many other companies they bought during 2015 and 2016?

    Rogue government headed by a rogue Prime Minister.

    How could he dare to change the Constitution? Ranil should not be allowed make any changes to not only to the Constitution but also to anything else. He is not trustworth at all. Arjun Majendran was his choice and the PM should take responsiblity of his crimes.

    How could they are scot free?

    • 2
      5

      Dear Champa,

      The profit was Rs. 5.1 Billion in 2016? Just in one year? Holy sh…
      Their profit is 430% increase than the previous year. 430%? Man, who wants investigations, this is more than enough. No company can make such a huge profit legally.
      Here is the Grandmother of all Frauds:
      1. Apple
      Fortune 500 Rank: No. 3
      2015 Profits: $53.4 billion
      Those are Dollars, dear.
      Why do you insist on making idiotic sweeping statements? Do you get them from W.W., or are you his speechwriter?

      • 2
        1

        Champa,
        This is stated in the article:
        “Reports claimed that Perpetual Treasuries was issued, directly and indirectly, with Rs. 5 billion worth in bonds at 12.5%.”
        And also:
        ” recorded a profit of Rs. 5.1 billion for the year ending March 2016, which was 430 percent increase in profits in comparison to the previous year.”
        Only one of the above can be true.
        12.5% of 5 billion is about 625 Million.
        5.1 Billion is more than 100% of 5 Billion.

        Clearly, only 625 Million (max) of the 5.1 Billion is from the bond issue.
        I am NOT claiming that the deal is above board, but people like you and your idol WW the great mathematician keep coming up with fancy figures.

  • 6
    1

    If MP’s and members of the UNP does not question Ranil about the Bond scam, then they too are of the same quality, so is the party.

  • 7
    2

    Ranil and Mahendran hatched this “bank robbery” with Aloysius as the “hatchet man”.
    They are successful.
    Meanwhile, poorest of the poor women are undergoing/risking rape, torture and even murder in the middle east, to “keep the home fires burning”.
    Others too timid, make do with one meal a day – the number of beggars has increased.
    The great ‘buddhists’ from MS,MR, & Maha Sangha downwards are not bothered, as they too have “benefitted” – they believe that the blessing of the Triple Gem has descended on them.
    The 94 O Level failures and others in parliament are ‘blessed’ too – with 40 Millions with each Vehicle Permit – and therefore are silent.

  • 5
    1

    Why only for 6 months?
    In any other democracy it would have been a permanent ban.

  • 5
    1

    Ranil and Mahendran have put the Rajapakse’s in the shade. Time for Maithri to keep Ranil at arm’s length.

  • 5
    0

    It’s all too little, too late. If at all, there should be a proper investigation & if there is evidence (which I doubt because these a professional crooks who exploit loop holes in the law), all those involved, including those at the the treasury who aided & abetted, or even turned a blind eye, should be held accountable & the recovery of any funds fraudulently obtained. However, in reality, it is unlikely to happen because I am sure there was nothing illegal about it & there is no law against making massive, unimaginable profits, apart from payment of income tax on the profits but, at least, the matter of ‘conflict of interest’ should be take into account, & again, the penalties for such an offence is arguable & not clear. Not only Mahenrdran but even the malpractices of the previous Governor of the CB (alleged pyramid scheme comes to mind) should also be investigated & not shoved under the carpet. Corrupt state officials should be at least ‘named & shamed’ in public if the laws of the country are unable to convict fraudsters.

    Unfortunately in SL, money talks. It is obvious that huge profits can be made only if there is an unfair advantage or a monopoly but we ‘respect’ people with wealth, irrespective how it was made. This is the exclusive club of the Colombo ‘elite’ & others unashamedly looking for scraps from the tables of the rich while the average man on the street is burdened with stealth taxes on everything he buys .

    • 5
      0

      Dear Raj,

      I agree with your analysis, which makes lamentable reading. But I think that we are getting somewhere now. This last week the sounds coming from My3 have been good. He’s been taking the UNP to task – Sagala Ratnayake in particular.

      Who are the “Colombo Elite”? I’ve seen them being identified as Anglicans. Well, I gave them beans today at an ExCo meeting of the S. Thomas’ Bandarawela OBA. The school Prize Giving is to be on the 4th of August 2017, with Bishop Dhilo as Chief Guest. Let me see if he can dodge me yet again. He’s made such a mess of these schools, I want to tell him a thing or two.

      And then the OBA AGM on the 12th. The dinner later cannot be in the school because most guys will drink. I don’t imbibe the stuff, but a bit of alcohol is not a crime. He says there is an Education Ministry rule about it. Does this guy think in terms of Universal Laws (coming from an ineffable God), or is it man made regulations that he believes in?

      The humbugs must be shown where they get off!

      • 4
        0

        Dear Sinhala Man

        I was not referring to Anglicans or any particular religious or ethnic group when I mentioned the ‘Colombo Elite’. It was just an observation I made when I was in SL on my annual visit last year. I was at a popular night club where an old friend was entertaining with his band of musicians & I was astonished by the crowd of young people driving in to the venue (apparently a private party) in top of the range Mercedes Benzes, BMWs & Range Rovers. Obviously these kids are enjoying the wealth amassed by their parents but to see such opulence in a tiny third world country beggars belief. I don’t think such wealth would be possible without some unfair advantage & certainly it’s not hard earned.

        As for your optimism, I sincerely hope you are right but, maybe I am a skeptic, because I have no faith in MS at all. To me, he is just another opportunistic & uneducated politician basking in the gravy train, that is the Presidency of SL.

        • 5
          0

          Yes, Raj, I admit that I was getting on my hobby-horse.

          The problem is more pervasive than the little group that I referred to.

          My estimation of My3 is not as low as yours; sincerity there is, and his education, while not in English, I think is better than average. He may feel diffident in Colombo society, but what really ails him is the fact that the undemocratic UNP has let him down and the ultra-nationalistic base of the SLFP prefers Mahinda R’s politics of hate to My3’s more traditional values. AND My3 has no control over his siblings (which damages the former’s reputation).

          But, admittedly I realise that I’m leaning over backwards to make a case for him. His timidity may already have lost him the support of the minorities. He still seems the only choice when casting my vote, but my optimism I have to strain to sustain.

          The ostentation of the “elite” is disgusting, and I must thank you for correcting me so gently. If only ALL were so civilised as you!

  • 3
    0

    Horse has bolted the stable.Perpetual Trust made enough loot in one deal thanks to Honest Mahendran’s non intervention to keep the families in luxurious life style perpetually. Don’t be sad uncle Ranil will look after Anthony after all this guy is his best buddies Son in law.

  • 0
    0

    “Better late than never?”. On what basis is the suspension for a period of six months? The possibility of changes in the market because of this seems to be in the minds of the current authorities. Somebody must reveal as to who are the top players and what is there contribution because after all it may not be only AM, AA are the only culprits involved in improper deals with the CB.

  • 0
    2

    I think the Perpetual Treasuries can not operate while bankrupting the EPDF fund too, profit the way they have during different govts without the knowledge of the govts and without prominent politicians involving in it. It is pretty sure, This will never be corrected. Mahinda Rajapakse had a confidential Advisor who managed his finances who collected billions of assets. Now, Arjun Mahendran should the financial advisor of thei govt’s prominent politicians.

  • 1
    0

    This ban is to get Us to forget this loot . They all includiytheCB that after 6 months we can’t remember this . They are Shari the loot. I trust them if only they take back the money they have stolen other wise they are just fooling around until we forget about it

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