Feb 25, 2017

‘Bond’ scam – EPF loss Rs. 8.5 billion Featured

The Central Bank initial investigation has revealed that the Bond scam has caused

the Employees Provident Fund (EPF) Rs. 8.5 billion in losses, according to the Anti-Corruption Front.

It is alleged that the treasury bonds that were purchased for Rs. 70 by Perpetual Treasuries were sold for Rs. 85  to Pan Asia and DFCC Wealth Trust and thereafter through Perpetual Treasuries was sold to the EPF for Rs. 90.

Subsequently, after a day the bonds were brought under a stable value of Rs. 70. Accordingly, the EPF loss was Rs. 20 per unit having purchased the Rs. 70 bonds at a higher value of Rs. 90 through Arjun Aloysius’s company.

Hence, the direct loss incurred by the EPF is Rs. 8.5 billion.  However, adding on the interest and other expenses incurred during this transaction, the EPF had to endure a further loss of millions.

Unions are silent?

The EPF is the social security fund of 6.5 million private sector employees.

However, due to their direct involvement with the parties involved in the Bond scam, the Unions have maintained silence regarding the infringements of rights of the EPF members.

The largest proportion of funds invested in the country’s biggest monetary scam was by the Employees Provident Fund.