18 August, 2017

EPF Scam Caused A Loss Of Rs. 9.5 Billion; Governor Indrajit Protects Scammers

The total loss to EPF due to its shoddy deals with Perpetual Treasuries is Rs 9.5 Billion and it is now being hidden from the public, Central Bank sources told Colombo Telegraph.

Indrajit Coomaraswamy – Governor CBSL

According to our sources the EPF scam which caused a loss of Rs. 9,500 Million has been officially brought to the notice of the Monetary Board by a special investigative team of the Central Bank at its meeting held on 23rd March 2017.

The Investigative Team was led by Assistant Governor Kumudhini Saravanamuttu and consisted of Pavithra Withanage and Yohan Samaratunga.

The report sets out in detail the manner in which the scam has been carried out by two officials of the Central Bank who have connived and done deals with Perpetual Treasuries linked to former Governor Arjuna Mahendran’s son-in-law Arjun Aloysius, the sources said.

According to the report, the delay which caused the massive losses to the EPF have been done directly with Perpetual Treasuries or routed through other intermediary dealers, Pan Asia Bank and DFCC Bank.

However, a clear audit trail has been left behind making it possible for the Investigative Team to trace all the transactions and to calculate the losses to the country’s main fund, the EPF, the sources added.

According to our sources, the two officials identified as being involved in the scam are assistant Governor R Jayalath and Senior officer of the EPF Saman Kumara.

At the Monitary Board meeting, Monitary Board members Nihal Fonseka and Chrishantha Perera have demanded that the officials involved are immediately interdicted and disciplinary action taken. However, Treasury Secretary Dr. R. H. S. Samaratunga and another Board member Mano Ramanathan have been non-committal. Finally Governor Indrajit Coomaraswamy had wanted to soft-peddle the issue fearing further controversy and decided to send a “show-cause” letter to the officials who have been clearly named in the report as offenders.

“As a result, the offending officials will remain in the service at the same positions perhaps doing further damage and even intimidating the other junior officials.” a Central Bank officer told Colombo Telegraph.

#BondScam

 

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  • 35
    0

    The loss on EPF was much talked about by an organization headed by a JVP Central Committee member Mr. Wasantha Samarasinghe. I have listened to him over and over again on this subject at number of TV debates. He also led a “March” to the CB and met the present Governor. Now I am wondering all that have been a part of the “Talk Show” and a “Road Sow”. Why this vociferous Central Committee Member and the JVP retain a good lawyer and file a direct civil law suit in an appropriate Court naming all in CB from the highest , viz the Governor and all others as respondents who manage this fund on behalf of the entire workforce of the country. There is one more person who should actually get involved in this case and it is again none other than the Trade Union Boss of the JVP – Mr. Lalkantha. These people have the funds collected on a monthly basis from the employees and isn’t it worthwhile spending those funds in bringing a litigation directly as a civil law suite and recover the losses that belong to the workers. Don’t tell us that “Yes we went and lodged a complaint with the Bribery Commission or FCID. We have heard enough of that BS and now we want you to take direct action. Take an example from Mr. Naganada Kodithuwakku. Come on JVP , Wasantha Samarasinghe, Lalkantha; wake up and prove yourself by ACTION; not by ORATORY .

    • 6
      0

      Douglas

      “Now I am wondering all that have been a part of the “Talk Show” and a “Road Sow”.”

      Irving Berlin’s There’s No Business Like Show Business

      Excerpts:

      There’s no business like show business like no business I know
      Everything about it is appealing, everything that traffic will allow
      Nowhere could you get that happy feeling when you are stealing that extra bow

      • 4
        3

        Dear Native,,

        JVP dudes are on UNP payroll ,full on .

        In fact JVP Prince was boasting the other day how good this UNP Government is .

        He should have qualified it with an addendum to say how good it is for them.

        Bring Prince Guneretnum…

        • 4
          0

          We need to look at Corruption at the SL Central Bank and Bank of Ceylon and the question of Soverign default that IMF dangles in a global perspective.

          Looting of Workers’ Pension funds by bond traders has happened in many countries, particularly Greece. This is because the IMF and the corrupt global financial Governance institutions like IMF “advise “corrupt governments and Central Banks in countries like Sri Lanka and Greece to loot the working people via bond scams and puts countries into DEBT TRAPS so IMF can then take over the economy of a country.

          Indarjith Coomaraswarmy has a high tolerance of corruption – once he said that Commonwealth Institute tolerates African corruption if the job (what job/) is done!
          This winking at massive corruption is done by corrupt global financial institutions to benefit the Global 1 percent who launder money into off shore tax havens in the west. Winking at INSTITUTIONALIZED FINANCIAL CORRUPTION is the name of the Corrupt IMF Game. in the name of protecting the good reputation of corrupt financial institutions! Turn a blind eye to corruption to protect a non-existent reputation and let the corruption mount until the country is in the IMF Debt Trap!

          IMF the lender of Last resorts that works for the GLobal 1 percent, has destroyed the economies of so many countries by giving DEBT TRAP advice to Corrupt Central Bankers.
          Recall How well Blackgard Christin Legarde fromIIMF and Mahendran got on!
          Inderjith Coomaraswarmy also has a high tolerance of Corruption in the name of protecting the good name of the Corrupt Central Bank of SL.
          Sri Lanka is in 2 debt traps – One to China because of Mahinda Jarapassa corruption and to IMF. Meanwhile JVP is playing with SAITM and promoting ragging in universities!
          Miracle of Modayas indeed!

    • 17
      3

      Dear Douglas,

      Excellent advice.

      There will always be insistence that when we have huge problems of this sort “due process” has to be followed, and however good a man the new CB Chairman is, he will understand that he cannot rush in like a fool, and act where even angels (or God!) dare not tread.

      My personal conviction is that Dr Indrajith Coomaraswamy has the capacity to do his job, and the he WILL do all that is within his power to ensure that he acquits himself of the tasks he has been set in such a way that even ten years from now there will be no one saying that things should have been done differently.

      Meanwhile let the JVP act as you have suggested, and follow the processes set out for checking on the way the CB is now run, but without causing disruption to the normal running of the country, and without starting the sort of psychological war which will make it difficult for even a man of Dr Coomaraswamy’s stature to do his job.

      One of the things that Yahapalanaya did right was to appoint Dr I.C. to this position.

      • 14
        1

        Spot on “Sinhala Man”. One thing I would like IC to do is is in addition to serving the “Show Cause” on the two miscreants, he should have immediately suspended them from work without pay, or with pay,as he deems fit. If they continue to be in employment while the inquiry is going on they could interfere with the ongoing inquiries and may even bring pressure to bear on witnesses.

      • 3
        1

        SM
        I am glad to note that you are among those who appreciate the need to conduct matters according to institutional rules and codes of conduct.

      • 4
        0

        I kind of feel like IC is the shape guy brought in to apply the shape theory!

        • 4
          0

          srinathan gunaratnam

          “I kind of feel like IC is the shape guy brought in to apply the shape theory!”

          Was IC a student of Mahinda Rajapaksa?

    • 5
      0

      Douglas

      “Don’t tell us that “Yes we went and lodged a complaint with the Bribery Commission or FCID. We have heard enough of that BS and now we want you to take direct action. Take an example from Mr. Naganada Kodithuwakku. Come on JVP , Wasantha Samarasinghe, Lalkantha; wake up and prove yourself by ACTION; not by ORATORY .”

      Thanks for you comment.

      JVP are politicians . They are after political capital.In that sense the are not much different from the Joint Opposition and Mahinda Rajapaksa and cronies.

      JVP political position on hanging up with GMOA and SLMC, on the SAITIM, issue is clearly obvious. They all can get away with these deceptions, because the average national IQ is 79,

  • 7
    2

    I agree fully with the view that it is risky to allow the alleged offenders to be in service while the inquiry takes place. They could be sent on leave with full pay during this period.

  • 14
    3

    The title serves to unfairly imply that Governor Coomaraswamy was soft-peddling action over this scam, when in fact he seems to have done the correct thing by preferring to issue a show-cause letter. Action as appropriate can of course be taken following receipt of the responses from the accused officials, provided they cannot show sufficient cause.

    It’s called due process, and CT editors should know better than to caste such aspersions on Governor Coomaraswamy’s character for his action in this instance.

    • 8
      3

      That is correct.
      Show cause notices issued in this matter is the right step in the direction of due process to take a correct decision on a matter where scam is alleged.
      The title heading is inappropriate and intended to cause mischief.

  • 5
    2

    Nothing new. Brought out b4 by many on several occasions and different forums. This news will on the one hand satisfy those who had suspicions and on the other will b a further proof of what has in fact happened.However there will b some others whose senses are so dumb not to smell the rot! Those involved will now start writing articles and stories knowing very well they are dwelling on irrelevancies but hell bent to state something to atleast confuse a few gullibles.We have seen this many times. Some are paid and some are the culprits themselves masquerading as social media Writers.
    I have by name indicated those responsible for the EPF ‘s role of this massive fraud perpetrated on a premeditated and calculated basis in my publications on the subject.But we can see how those in power who have had a share of the loot are daringly attempting by ostensible actions which are nothing but desperate moves to attribute justifiable motives to this horribly unjustified and blatantly fraudulent act.
    Don’t be surprised if a new act is proposed to parliament to legalise the loss made to the EPF!!
    We warn that those who initiated this report and the fact finding Mission to be prepared for discriminative and vindictive repercussions by the actions of the big and the very big as we have witnessed throughout this episode.
    It is not out of the norms to invite the attention of the on going commission of inquiry to this aspect as it is only a belated relevant information on the subject of the inquiry.
    Rusiripala Tennekone
    Author of the publication(book) “The Tale of the Bond Saga” (Sinhala)

  • 17
    4

    The title of the article is the type which disgusts every decent human being who understands those who try to do their best to execute their undertakings professionally and according to the Rule of the Law.

    “Governor Indrajit Protects Scammers” – This is a statement; it isn’t a question. An absolute nonsensical statement.

    Indrajit Coomaraswamy is far above protecting the individual. If he soft-peddles any issues as it is alleged, it would be more likely that he does so, in the larger interest of the Institution he represents.

    Suggest you get off his back and let him do his job unhindered. Hound those well deserving to be hounded lest we lose another very good man .

  • 25
    3

    A fraud of this magnitude could not have been done by Mahendran alone. It is clear that RW is the hidden hand and driving force

    The same way that high value targets like Lasatha could not have been assassinated without the knowledge of MR, GR and SF.

    This Mrs Ramanathan is a disgrace who is making a career on her husband judge Ramanathan’s ( himself a nice but a mediocre man) name. A mere officer in the legal draftsman office. ( former)She is just like Mrs Lakshman Kadiragama , false tears of cunning women !

    Those who served the Rajapakses were serving killers.

    Those who serve this regime are serving crooks and fraudsters

  • 7
    14

    From this story, it appears that Indrajit Coomaraswamy is no different to Arjun Mahendran.

    It looks like that these Central Bank Governors brought in by Ranil and Sirisena have either facilitated scamming or protected scammers.

    • 4
      0

      “From this story, it appears that Indrajit Coomaraswamy is no different to Arjun Mahendran”

      Yes, Naga, that is the “Magic” of unsubstantiated stories”. woven by the vile, and swallowed by the likes of you.

  • 7
    0

    Probe the assets and liabilities and bank accounts of the officers involved on both sides that is CBSL and EPF/ETF . The real culprits will come to light.

  • 8
    2

    CT is known for it’s Bull in a China Shop attitude.

    Some journos who dont know what the rules of law are, seem to be in a mighty hurry to cast aspersions, and make a media circus.

  • 8
    4

    So , the plot thickens, confusion is worse confounded and, finally the perpetrators go scot-free. ‘ The Greatest Bank Robbery’.

  • 9
    1

    “EPF Scam Caused A Loss Of Rs. 9.5 Billion; Governor Indrajit Protects Scammers”

    CT, please don’t take the route Sirasa and the Maharajahs have taken- inquisitions and trials by talk show , full of allegations and innuendo without evidence. They were dead quiet during M.R’s rule.
    Currently they are targeting ICTA and its chairman over some “fraud ” regarding Google Loon. Nobody else is interested, but they keep the matter alive daily using their tame opinion-makers like Wasantha Samarasingha and Azath Salley.

  • 15
    1

    Former UPFA regime spent around US$ 8 million (approximately SLR 880 million) for the recent Hambantota 2018 bid to host the Commonwealth Games.
    This included hundreds of millions spent on PR firms, which represented Sri Lanka for the Commonwealth Games bid, and on the 120 strong delegations to St. Kitts and Nevis, while Australia sent only 20 representatives.
    Although official figures have been given for the expenses of the delegation, it is said that the price of an air ticket to St. Kitts was Rs. 250,000 which means, that nearly Rs. 40 million had been spent solely on air travel.
    First, the government paid US$ 2.6m up front to “PMPlegacy”, a London-based international management consultancy firm, to administer the bid. According to financial reports of PMPlegacy, they had paid a 15 percent commission to the Sri Lankan Commonwealth Games organising committee.
    Furthermore, Sri Lanka paid US$ 1 Million to an Indian based Event management Company. The country also spent lavishly on incidentals like foreign trips, visiting CGF delegations, chopper rides to and from the proposed venue—faraway Hambantota, on Sri Lanka’s southern coast and carousing the night away in St. Kitts. The government claimed the money came primarily from the private sector, but then mystifyingly declined to name the contributors.
    In any case, a mammoth delegation left for the Caribbean a full week ahead of the CGF vote. Aboard the chartered plane (CABIN CREW GIRLS HANDPICKED BY NAMAL) were sports personalities, a reigning beauty queen and a former-beauty-queen-cum-actress-turned-politician. Mingling with the politicians, officials and journalists were assorted and sundry businessmen, chefs and a cultural troupe. They enjoyed sing-alongs on board. At St. Kitts, they checked into four-star hotels. The reports reveal that, among the 400 who were present from 70 sports federations of Commonwealth countries, a full 160 were from Sri Lanka. Only a mere 20 came from Australia.
    The bid to play host to the Games in deeply rural Hambantota was based on nothing more than an elaborate dream. The proposal was conjured up by Namal Rajapaksa, the president’s sporty playboy eldest son.
    Critics question the commercial viability of the project which involved large scale construction, the cost of which would run into several billions of dollars. The Commonwealth Games in New Delhi cost US$ 4.6 billion, nine times higher than its 2003 estimate of US$ 500 million. Whether the government could spend such a colossal amount of money, which would dwarf the total investment cost of the Mahaweli project for the Games of the former British Empire, especially when the country is beset by far more pressing issues, is still widely debated.
    Over to you Mr. Auditor General.

    • 8
      0

      Why is seerasa, Therana and Hiroo silent in the frauds committed by namal, Cabraal and rest.
      Arrest the buggers and throw them to welikada along with buruwannse.
      wasantha samare is [Edited out] seerasa to throw mud at ranil and unp

  • 4
    0

    In public service, those suspected of serious offences are first interdicted and then a “show cause” letter is served.
    If the explanation is unsatisfactory, a formal charge sheet is served and an inquiry date is informed.

    Interdiction is to prevent manipulation of evidence, and, interference with potential witnesses and documents.

    Bank officers too are public servants and come under the purview of the Establishments Code.

  • 5
    1

    Whatever is said and done, the ultimate loser of the EPF scam is the poor contributor for that fund. What I cannot understand is why people are so greedy to steal someone else’s money? Just for a moment think if your money is being stolen by someone. If that happens how you would feel? That is how the people who contributed to that fund feels right now. Again, our stay in this world is just a temporary thing. We are not going to stay here permanently, and will never know when the call from the other side will come. At that time we have to leave this world the same way we came, without taking anything. Think about this and try to live your short life in a productive way, helping others in need, and trying to be honest and truthful at all times.

  • 3
    4

    CT ! it looks like you have a friend in CB and he is a big criminal who is panicking with this Gov or RW.

  • 4
    2

    Singapore Mahendran, Dr Ranil, Galleon Ravi and Mendis Special Aloysious are a formidable combination.

    Add the Monetary mafia at the CB, it is close to a Colombian Cartel.

    Weep for the poor EPF members who are not Gaypalana suckers.

  • 4
    1

    9.5 Billion!
    These are the ones that should be tried in Hague!

  • 3
    0

    We are not privy to the report. Let us hope and pray that the report is objective showing clear evidence of insiders conniving with the crooks. Conjecture or suspicion will not do. What is clear from this article is that one Assistant Governor naming another Assistant Governor. While I am not casting aspersions against any individual what must be rememberd is instances like this it is very common for people to take revenge in instances of this kind for old grudges. The loss of EPF money is enormous by any standards. However, that should not sway our balance of judgement. Interdiction or sending on compulsory leave of innocents would damage theor reputation and also have a lasting mental agony.

    Therefore the correct action is to call for explanation or to call for response to the report from the named individuals. However, in view of the enormity of the defalcation, there could be an added provisio that these officers should perform no other duty but first answer the call for explanation or response and await for instructions whether they could continue to perform the duties in their substantive posts.

    Should their response be unsatisfactory then the usual process can continue.

  • 0
    1

    This comment was removed by a moderator because it didn’t abide by our Comment policy.For more detail see our Comment policy https://www.colombotelegraph.com/index.php/comments-policy-2/

  • 2
    1

    Dear Readers: It is now reported that the attention of the Central Bank has been directed to the “Erroneous Facts” given in Media and in clarifying the facts, it says that “Disciplinary Action” would be taken against those found guilty of “wrong doing”. What are these “Erroneous Facts”? Are those relating to the “Billions Lost” and what are those “Wrong Doings”? Now my question to those who spearheaded this campaign and the EPF contributors : Are you all going to be satisfied with the “Disciplinary Action” that would be taken in the future and forget the Colossal Loss suffered? Are you not demanding and proceed on a course of action for the recovery or the restitution of the loss. Where did that money go and in whose hands it is today? EPF contributors: Are you not interested in finding and recovery of that lost funds belonging to YOU?

  • 4
    2

    Sri Lanka freezes billions of funds of Rajapakse family is latest news. [Edited out]

    Why cannot the billions lent to Perpetual Treasuries – which had earlier obtained a massive loan from Central Bank, be frozen pending the conclusion of this probe?

  • 1
    0

    A close and an unbiased analysis of the political conduct of the two top leaders and their confidants in their Governance leaves much to be desired. They have miserably failed to bring justice to the Nation which they promised at the Presidential Election and further reiterated at the last General Elections. On the contrary people can clearly and visibly see highly irregular and illegal orders given for the release of those with criminal charges. Many such individuals still occupy important and sensitive positions. We are constrained to ask you ‘Where is your honesty,justice and Truth’.Please examine your conscience if you care to. People can see the moral degradation of the Nation in general and that of the politicians in particular who are like whited sepulchres.” All that is needed for the triumph of evil is for the so called good men to do nothing”.

  • 1
    0

    Indrajith never had a backbone. He worked for Mahinda , Nivard and Basil as an Adviser. He then did fund raising for Mahinda and then jumped ship using CBK and Malik. When Mahendran was kicked out CBK and Malik go together and planted Indrajith. The CB is now run by Nivard’s mafia. Indrajith is just a puppet enjoying the office of the CB in his old age. He was a consultant to the jailed Raj Rajarathnam. Now he is Govornor of the Central Bank. Tragedy Sir?

  • 0
    0

    GOVERNOR !!!!

    IT IS NOT A JOKE ANYMORE THROWING FIGURES WHICH YOU KNOW WHAT HAS HAPPENED ARE WE SEALING ALL LOOP HOLES WHICH EXISTED BEFORE YOU TOOK OVER ???? IT IS TIME BEFORE THE REAL EARTHQUAKE HIT THE CB AND THE COUNTRY IN WHOLE !!! JUST IMAGINE THERE WILL BE ANARCHY IF THIS COUNTRY CRASHES !!!!

    ALREADY THE POLITICIAN OF THE FORMER REGIME ARE PLANING TO TOPPLE THE CURRENT GOVERNMENT !

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