Fraud hit Sri Lanka gilt dealer Entrust reveals Rs11bn scam
Oct 13, 2017 10:42 AM GMT+0530 | 0 Comment(s)
ECONOMYNEXT - Sri Lanka's Entrust Securities, a primary dealer in government securities embroiled in a fraud has revealed an 11 billion rupee hole in its balance sheet by June 2017, which is growing at the rate of 200 million rupees a quarter with new losses.
Entrust Securities Plc in unaudited accounts filed with the Colombo Stock Exchange said it had assets of just 753 million rupees and liabilities of 12.34 billion rupees, leaving 11.58 rupees unaccounted for.
The firms March 2015 accounts audited by Price WaterHouse Coopers showed assets of 17.3 billion rupees.
As late at June 2016, Entrust reported assets of 16.4 billion rupees and profits of 95 million rupees, when reporting paused.
The June 2017 accounts shows losses of 223 million rupees and an 11.5 billion rupee hole in the balance sheet.
The March 2017 accounts filed at the Colombo Stock Exchange which was also just filed shows a loss of 197 million for the quarter and an 11.3 billion rupee loss recognized last year.
The firm had taken money from large investors and several state pension funds including a central bank backed against government bonds, but sold the bonds to third parties.
Entrust was put under the administration of National Savings Bank by the central bank in 2016 and top officials were later arrested by police.
A government minister told parliament that Entrust had funded the Carlton Rugby Tournament connected to ex-President Rajapaksa's son Namal with millions of rupees.
It owned the Western Warriors club, whose Captain was Yoshitha Rajapaksa, who was brought from an auction paying 11 million rupees, Minister Kabir Hashim told parliament.
He said the central bank had not taken any action during the Rajapaksa regime despite on-site investigations by examiners showing money was missing. (Colombo/Oct13/2017)