Feb 08, 2017

CBSL hands over bond scam investigations to IGP

The Central Bank has taken some action against primary dealer Perpetual Treasuries curtailing some of their activities in treasury bond trading for their alleged involvement in Central Bank (CB) bond issue in accordance with the bank’s onsite examination report of the company, Central Bank Governor Dr. Indrajit Coomaraswamy told a media conference a short while ago in Colombo.

Two internal investigations into the bond scam are now underway and the Central Bank will definitely take disciplinary action against any high ranking official and perpetrators involved in the bond scam if they found guilty of any wrong doing after the completion of on going investigations, he said.

A letter was sent to the IGP to conduct a CID investigation into this matter to find culprits he said pointing out that until the investigations are over Central Bank cannot say anything or take any action regarding the alleged scam, he added.

If allegations are proved beyond any reasonable doubt then he will not hesitate to take necessary disciplinary action against any official, who manipulated bond transactions, he pledged.

“It’s not as easy to scrutinize transactions of this nature and put the blame on someone within a short time. We need more time to study as it is a highly complicated issue,” the Governor said.

The relevant onsite examination report has covered operations of primary dealers including their financial performance during the year ended 31st March, 2016 as well as the 5-month period ended 31st August 2016.