Sri Lanka ready to clawback profits of Perpetual: Prime Minister

ECONOMYNEXT  Sri Lanka is ready to follow the recommendation of a presidential commission of inquiry and clawback profits made by Perpetual Treasuries a primary dealer which have been frozen by the central bank, Prime Minister Ranil Wickremesinghe said.

"The central bank has frozen 12 billion rupees of money belonging to Perpetual Treasuries," Prime Minister Wickremesinghe said in a special statement.

"As a result it is possible to recover 9.2 billion rupees as recommended by the commission. All this money can be recovered by the government."

The commission said Perpetual Treasuries, connected to Arjun Aloysius, son-in-law of ex-Central Bank Governor Arjuna Mahendran made 8.5 billion rupees from state funds including the Employees Provident Fund, using insider information.

The commission recommended that legal proceeding be filed to recover losses from Perpetual Treasuries, its beneficial owners, and ex-Central Bank Governor Arjuna Mahendra, to also consider that parliamentary powers be used clawback cash.

…[I]n view of the extreme gravity of the facts and circumstances which formed the subject matter of our Mandate and the very substantial prejudice caused by these facts and circumstances to our economy and our Nation, Parliament may wish to carefully consider whether it is appropriate and necessary to take steps to recover the aforesaid monies, by exercising its legislative powers," the commission said.

The commission said Perpetual had made 8.5 billion rupees in profits. A sum of 688 million rupees should be recovered from Mahendarn in respect of a bond auction in February 2017 that he interfered in and Perpetual should be fined twice that.

Prime Minister Wickremesinghe said his party was also ready to take action against members named in the report and a committee headed by Minister Tilak Marapone  had been appointed. (Colombo/Jan19/2018)

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