22 October, 2020

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Infamous Perpetual Treasuries Makes Over 5 Billion Profit After Bond Scam

Perpetual Treasuries Limited, which is linked to Arjun Aloysius, son-in-law of ex-Central Bank Governor, Arjuna Mahendran has recorded a profit of Rs. 5.1 billion for the year ending March 2016.

The firm has seen a staggering increase in its profits of up to 430 percent in comparison to the previous year.perpetual-treasuries-profits-in-201516

The company in an advertisement published in the state owned Sunday Observer said that the total comprehensive (audited) income for the year ended 31st March 2016 was Rs. 5,124,321,124 against Rs. 959,529,416 recorded in 2015. As a primary dealer, appointed by the Central Bank, it is compulsory for Perpetual Treasuries to publish their annual accounts.

During, Mahendran’s tenure as Governor, 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 highly controversial Treasury Bond Issuance is currently under investigation by the Parliamentary Committee on Public Enterprises (COPE). The COPE report on the bond scam is scheduled to be presented to Parliament mid-October.

Since the bond scandal, Aloysius is reported to have resigned and no longer plays an active role in the company. Earlier, he headed Perpetual Treasuries as its CEO. As per the company website, Geoffrey J. Aloysius is the Chairman, while Ranjan Hulugalle and Ajahn Punchihewa serve as Non-Executive Independent Directors. Kasun Palisena who was the Chief Dealer during Arjun Aloysius’s tenure as CEO has replaced Aloysius as the new CEO of the company.

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Latest comments

  • 29
    17

    Ranil doesnt want to loot money but he has unlocked the path for his friends to do that
    Ranil is not a thief but his friends are thieves.

    • 28
      15

      Sir,

      Does anybody really know who this financial wiz kid Arjun Aloysius is? What’s this chap’s background? Whom does he mongle with apart from infamous Ravi K.?

      Guy is so mysterious. Not seen anywhere in public. His FIL Mahendran takes all the hits. While the SIL Arjun Aloysius bags the billions. It is a business model worth imitating.

      I really would like to invest my life’s savings with Perpetual. Who can resist a 430% windfall year on year?

      Arjun Aloysius makes Wall Street’s Gordon Gekko look like an Apprentice.

      Cheers!

      • 11
        4

        Bittara rakena (hatchery) Ben, follower of Hugo Chávez

        ” What’s this chap’s background?.Guy is so mysterious. Not seen anywhere in public.””

        and you unlike govi jim softy you are SC/ST kochi. stupid BIGOT.

        a ½ irish name and ½ English name but you have neither gene
        self styled Sinhala Buddhist Cyril Mathew Kochi.

        Your SC/ST Atapirikara අටපිරිකර was found in a boat that was drifting down under??

        The dirge that you all sing at truth’s funeral is:
        `I am entirely right and you are entirely wrong`

        Hide and squeak ambude ben.

    • 23
      5

      I am sure that Ranil is the master minder behind this bond scandal. That is why he wants to protect Arjun et al so badly. Other than Ranil who can give orders to the Bank of Ceylon to forward bids on behalf of Perpetual Treasuries and delay the bond auction deadline for 10 minutes? It is unimaginable that the Bank of Ceylon and its director board were able to approve the request by high echelon of this so called good governance regime to forward bids on behalf of this company. How long this bank will take to approve a loan worth of a few hundred thousands to a normal person?

      • 3
        0

        BoC board gave a blank cheque to Perpetual. No questions asked from board of directors or GM?

        EPF bought the bonds from the secondary market when Perpetual off loaded them and no questions asked from the public debt department head and monetary board?

        They are all in the game!!

    • 9
      1

      Ravi, so we may forgive you because you are not a product of the borough.

      “Ranil `doesnt want to `loot` money` `is not a thief`

      yes he lives on thin air like a Tao -a fool all day.
      So several Muslims surround him.

      NO politician is EVER…EVER well-meaning.
      IF YOU believe that, Lankan Politicians are well-meaning then you are very naive. Money, power, and ulterior motives are the ONLY things that drive a politician to get out of bed each morning.

    • 7
      0

      A new definition for collusion ! you are known by your friends. It is bad only when MR helped his cronies !I look after you and you look after me !

    • 2
      0

      A new definition for collusion! You are known by the friends you keep. It is bad only when MR did it. I help you and later you help me!

  • 25
    2

    Time for FCID to initiate money laundering charges against Perpetual and pocket the Rs. 5 billion to the Treasury and provide subsidies to the poor VAT hit people.

    • 4
      0

      To initiate an inquiry. first who is going to make a complaint to the FCID? Surely not a govt supporter. JVPer or from the opposition leaders party? Complaint from JO will never be looked into. This issue will die a natural death with the help of Ranil to save his friends.

  • 13
    1

    Sri Lankans are perpetually being ripped off. Those in power keep allowing their buddies to rip off the system, and they get away with it. Even the previous regime has mostly got away with scamming us, their ill gotten gains stashed away where no one can find it, and the present regime seems incapable of getting justice.

    What a sorry state of affairs.

  • 8
    0

    The name of the outfit is most appropriate! Perpetual Treasuries Ltd.
    Arjun Aloysius must have read Treasure Island in his salad days!

  • 10
    1

    The shadowy figures who actually conducted the auction, and authorised a massive increase of the amount/worth of the bonds auctioned, at an increased rate of interest, are the persons responsible for this massive scam which will cost many more billions to the government of Sri Lanka, during the total period of 30 years.
    They have never been named.
    Mahendran knew and secretly consented to take the blame.
    Thus, this was a carefully planned scam.

    https://en.wikipedia.org/wiki/Arjuna_Mahendran

    There cannot be any doubt that they benefitted, from Aloysius.
    This fact has been totally ignored by all those who investigated this scam.
    I hope COPE will consider this aspect of the scam.

    These persons most probably are still there, in their posts, having enriched themselves from parts of this Rs. 5 Billion profit.

  • 6
    1

    5 billion of our money.tsch,tsch,where is my handkerchief?to wipe my tears.

  • 12
    1

    From the time this “Bond Issue:” was initiated everyone, including PM, the Governor Mr. Mahendran downwards KNEW it was all wrong. That is why quite “Unusually” when the Public Cry came, all manner of actions were taken to “justify” the actions taken both by the PM and the Governor. Even a prominent young Parliamentarian wrote a book justifying the Bond Issue. When it ended up in COPE, arm twisting took place and it is public knowledge that the PM got one of its members to resign and appointed that very same young MP as a member of the COPE. In the end the Governor Mr. Mahendran could not get the blessings of another authority to get re-appointed. To further JUSTIFY the correctness of the “SCAM”, this same Mr. Mahendran is now made to move close to Governmental affairs. With this revelations of making such a HUGE profit, still do the “Authorities” who initiated the “SCAM” and the people who put the scam into operation have any feeling of “GUILT”. That word GUILT is quite foreign to them and things will continue, in spite of the fact that the PM did APPOLIGIZE at the 70 year Anniversary of UNP, for any wrongs that were done in the past. That is as usual only an “Election Stunt”. All that “HUGE PROFIT” properly speaking belongs to PEOPLE and the COUNTRY; but those involved would say GO TO HELL and once again the PEOPLE are the FOOLS.

  • 11
    2

    Ask Ranil. He will tell you how the profits have been distributed.

  • 6
    2

    why don’t we just make in this budget a law that super profits by primary dealers will be taxed at 100% and get our money back.oh i forgot ravi karunanayaka is the finance minister.gone is the last chance to get back that money.If as sirisena wanted, eran was the finance minister instead of ravi, something could be done.Or is it going much higher up to ranil himself.Then eran also would not be able to do a thing and get the money robbed from us back to us.ravi is anyway making a hash of things as finance minister now being called to court for giving 6billion duty credits for particular vehicle importers and maithri was right in opposing his appointment in the first place.Once a dodgy character always a dodgy character they say.

  • 4
    1

    ooooooh!look at that 5 billion rupees smile.can retire comfortably for the rest of his life even after the payouts are made.poor biso menike and gonthirala won’t be even able to pop a piece of tuna into their mouths the whole year.

  • 6
    2

    It appears Rs 5 Billion from Central Bank’s treasuries (that’s your and my money) simply put into Perpetual Treasuries Ltd. for the use whoever concerned.
    It all happened and it’s really disturbing soon after the RaPa regime committed the same kind of financial crimes (Greek Bond) with the blessing of Caabral!!!!!!!

  • 4
    3

    As far as the Aloysius / Mahendran clan is concerned, what does it matter what the people think when the entire clan can retire in comfort with the profits of unethical banking? The former Chairman of Royal Scotland bank paid himself millions on bonuses even though he was responsible for bankrupting the bank, triggering the banking crisis in UK a few years ago & now lives in comfort in Monaco after showing ‘two fingers’ to the British Govt.

    Welcome to the world of high finance where ‘indirect’ forms of insider trading is the way for instant billions (Anybody watched the Wall Street real life TV series ‘Billions’?)

    • 6
      1

      Where are the wall street protesters??-
      that is same as Obama hussain (nandikadal 1)
      Change..Hope now Hillary Charity.

      ROUGE TRADER.!
      “Nick” Leeson was the first inside trader – Barings of Coutts royalty
      house painters son, Came out in 1/2 time (3years) complaining of colon cancer.
      Today he is a celebrity.
      human rights and democracy to voter is the fault.

    • 5
      0

      Central Bank of Lanka will hang on with these 2 words- `honest services`.

      Americas famous lawyer turned judge of dist court of Columbia
      Sri Srinivasan (born Chandigarh) – defended Enron and won bringing the sentence down by 1/2
      A future judge of Supreme court if Trump wins.
      The Supreme Court ruled in favor of Skilling on the “honest services” fraud statute, but rejected the trial location argument.

      It’s the voter that has to put up or shut up.- hide and squeak like Rats

  • 8
    0

    5 Billion is 5000 Million Is that correct.

    So it is USD 40 Million in BOS in just 12 months of Yahapalana Trading.

    As my mate Jimmy said, this is only the tip of the Ice Berg as there are another 29 years to mine it.

    Not bad at all,

    Or should I say it will be even better going forward, as the ass is falling off the Bond markets.

    Just for the benefit of Yahapalana suckers, Aloysious makes even more, every time the Bond Rates drop.

    Now the beauty is Mahendran is a Tamil gentleman from the Diaspora.

    Diaspora Surendran who was instrumental in giving us Yahapalana was one of the main organizers / part of the of the LTTE -GFT Fund Raising to
    finance Pirahaparan and his 30 year Tamil insurrection.

    Together with the Global Eeelam headed by PM Rudrakumaran, they pumped in between USD 600 Million to 800 Million over the 30 years.

    Now Diaspora Mahendran has extracted USD 40 Million in just 12 months.

    And there are another 29 times of 12 months instalments to collect..

    At this rate and with the help of lower and lower interest rates..Singapaore Mahendran and his family outfit Perpetual Treasures will rake in USD 1200 minimum over the 30 year bond life.

    That is USD 400 Million pure profit plus the the USD 800 Million Capital which Suren and Rudrakumaran invested in Pirahaparan and his Tamil Terrorism in Yahapalana Land,

    Mind you the Bond Capital still will be intact, as all these USD 40 Million 12 monthly collects are all ROI.

    Not only Aloysious but Mahendra’s grandsons will be laughing all the way to the Bank.

    • 0
      0

      sumane
      don’t you think you should pay back what you looted in 83.you did it with brawn,they are getting it back with brain.

  • 3
    0

    I declare today that a Day of Judgment WILL come. Sooner than later. Did we ever think that the LTTE rebellion will end, explosions stop, VP’s demonic activities ended, MR and clan defeated, murderers and plunderers of the previous regime brought to justice?? Did we??

    There is a righteous Judge and He sees the ways of arrogant and crooked men. He will bring their down-fall very soon.

    • 2
      0

      Kumaran,
      ” Murderers and plunderers of the previous regime
      brought to justice ” WHEN ?
      Duminda is appealing his sentence.
      Is arrest-remand -bail of the others …… justice?
      What about the plunderers of the present regime ?

      ” There is a righteous Judge and He sees the ways of arrogant
      and crooked men.He will bring their down-fall very soon.”
      AMEN.

  • 3
    0

    insider dealing fraud. FIL & SIL should be in jail for 30years, and pay back the money and fine 3times the amount.
    we want justice.
    white collar crime is also a crime

  • 1
    0

    (Investigative) Journalists should obtain profit figures of the Company since its incorporation and make a comparison with the profit made in F/Y 2015/16 and publish same for the information of general public together with expert observations on the phenominal growth of profit during the yeay under review. They should also take Water Gate scandal of USA as an example and fight this case to the end, if they are convinced that there is a fraud/manipulation/abuse of authority/cover-up is involved. UNP and Country can go forward even if their present leaders have to leave politics on account of this scandal. Sgt. Punyasoma

  • 2
    2

    Next Year when their profits go up to Rs10B (as long as the chief trader stays in the job) after the CB tightens its rules, and establishes transparency, what will you say? It is the difference between idiots doing bond trading elsewhere, and a brilliant trader at Perpetual who knows his stuff. Just look at what happened to Entrust and the EPF Rs3B. Where is it? Idiot traders who lost, and the rest was stolen by the owners. Why is no one asking about a loss, and is so jealous about someone else’s profits?

    Come on guys get real. Find some BOND TRADERS instead of Montessori kids who are running the Primary Dealer arms of Banks. This guy has NO competition, so he cleans up. Shame I don’t get a kick out of making money, otherwise I will also show you how it is done.

    Hint just study, the Govt cash need on a daily basis, and you can guess which way the interest rate is LIKELY to move. By the time research arm of the Bank comes up with the figures it is too late. This is a real time business, and you have to be on your toes. Your knowledgeable research department must be sitting next to you when you make your trades, to advise you on the facts.

    Our Banks make far too much easy money, by screwing the borrower and lender due to the high spread. Time they know how to make risky money like Perpetual.

    Don’t forget when you take big bets you win big and lose big, so you have to be smart in guessing which way the market will move. BANKS ARE RISK AVERSE. Perpetual is NOT.

    Don’t diss this example of brilliance. Seems all the comments arise out of sour grapes, the PERPETUAL PROBLEM OF SRI LANKA. No one admires brilliance, they cant even identify it when it stares them in the face. Ask the dumb traders for their honest opinion. They will admit this guy is just too good.

  • 2
    0

    In case you think I am biased, I predicted the Bond Scandal in my blog of January 11 2015 see link:

    [Edited out]
    Clearly, I am not taking sides of Aloysius/Mahendran I am merely separating fact from fiction.

    We live in a parallel Universe, with most of the comments living in a dream world, and have yet to wake up to what is really going on, which NEVER gets reported, and the crooks and media, like it that way. Time you discover the real crooks.

    Read my blog, and you will be surprised how many predictions have come true. I can see it as clear as day follows night. Why are you so blind?

  • 5
    0

    “Ranil doesnt want to loot money but he has unlocked the path for his friends to do that. Ranil is not a thief but his friends are thieves” – quote of Ravi 26-09.

    If Ranil has unlocked the path for his friends to loot money, is he innocent?

    Is there a great difference between him and MR who did not act on ‘FILES’ of parliamentarians who were loyal to him ? Prasanna

  • 2
    0

    Prasanna

    Food for thought !

  • 1
    0

    Prez Sirisena runs after local government reps who travel abroad to save public money! Can he do something about this robbery or will he just brush it off like his former boss?
    Yahapalana economic osthar (Dr. Harsha de Silve) can bring up a defensive economic theory and enlighten us on this windfall through media!
    Venerable Mahanaike Malwatta has full confidence on PM Ranil W and what would the Mahanake Malwetta say about this Mother of all bank robberies?
    Let’s calculate it just to have a glimpse of the stolen amount: 5 billion is 5000 million and 5000 million is a good percent of the government’s 2016 budget. I am sure the VAT could have been totally scrapped if this robbery had not happened. Where is Finance Minister Ravi Karunanayake? Are you busy counting the money?

  • 0
    0

    How come there is no provision made for corporate tax?

  • 5
    0

    “Fool tonight I will call for thy soul.
    What will thou do with all the grain stuffed in thy barn.”

  • 2
    0

    So, what about it? They have to meet Ravi’s accomodation bill.
    If Avante Garde made filthy money, so can WE……..

    Mr. Unclean laughing all the way to the Bank.

  • 0
    1

    So what? Why can’t we all be happy that some company made a lot of profits? Crying foul whenever someone makes money is in Sri Lankan DNA.

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