EPF, NSB, SLIC losses due to bond scams exceed Rs. 31 billion

The manipulation of the secondary bond market by Perpetual Treasuries caused three state institutions, Employees’ provident Fund (EPF,) Sri Lanka Insurance Corporation (SLIC) and National Savings Bank (NSB), to lose over Rs. 31 billion, anti corruption activists said yesterday.

“On Sunday we revealed that the total loss incurred by the Employees’ Provident Fund (EPF) due to the bond scam alone was over Rs. 26 billion. However, the EPF is not the only state institute that suffered losses because of Perpetual Treasuries’ secondary bond market manipulation,” Centre for Human Rights (CHR) Executive Director Rajith Keerthi Tennakoon said yesterday, addressing a press conference at Rajagiriya.

The loss incurred by the Sri Lanka Insurance Corporation due to the bond scam alone was over Rs 4.11 billion while the NSB lost over Rs. 819 million.

As the Auditor General had not received necessary documents, there were no details about the losses suffered by the Sri Lanka Insurance Corporation, in the Presidential Commission of Inquiry (PCoI) or Committee on Public Enterprises (COPE) reports, Tennakoon said.

“However, we have found that Perpetual Treasuries and the Sri Lanka Insurance Corporation have had six transactions, under International Securities Identification Numbers (ISIN) LKB 03045 C013, LKB 01528 I 017, LKB 01530 E 152, LKB 01236 F 014, LKB 01025 C 157, LKB 02035 C 155. These show that Perpetual Treasuries bought treasury bonds worth Rs. 8,594 million and resold them to Sri Lanka Insurance Corporation for Rs. 12,708 million, within a few days. The company made a profit of Rs. 4,114 million,” he said.

Meanwhile, retired senior banker, Rusiripala Tennakoon said that they had found that Perpetual Treasuries and the NSB have had over four transactions, under ISINs LKB 0528 I 017, LKB 01530 E 152, LKB 01226 F 014, LKB 01025 C 157. “The company made a profit of Rs. 819 million therefrom,” he said.

He added that they were looking at all the transactions by Perpetual Treasuries using the International Securities Identification Numbers and would continue to unearth more incriminating evidence.

(Source: The Island – By Rathindra Kuruwita)