The draft interim report of the COPE committee on the Treasury bond issue has been leaked to the public.

 

The committee has observed that the behavior of Perpetual Treasuries Ltd with regard to this bond issue is suspicious due to several factors. The company placed a bid 14.9 times its capital, the report said. It also is the first occasion that a primary dealer bid through another primary dealer, the report said.

 

Perpetual Treasuries Ltd. is a fully owned subsidiary of Perpetual Capital (Pvt) Ltd. Geoffrey Joseph Aloysius and Arjun Joseph Aloysius are the shareholders of Perpetual Capital (Pvt) Ltd., notes the COPE interim report. Arjun Aloysius is the son-in-law of Central Bank Governor Arjuna Mahendran. Since Perpatual Treasuries is fully owned by Perpetual Capital (Pvt) Ltd, the interest with Arjun Aloysius cannot be ruled out, the report said.

 

"Thereby it is evident that the primary dealer Perpetual Treasuries Limited and the Central Bank had a related party transaction" the COPE committee observed.

 

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