‘Let Perpetual Treasuries Ltd comes to the Commission’: said DSG

-‘Methodology’ used in determining Bond Transactions totally erroneous: PTL lawyer  

By Shehan Chamika Silva

In order to clean its reputation, the Perpetual Treasuries Ltd (PTL) should come to the Court (Commission), said Deputy Solicitor General Milinda Gunathilake.

The DSG said so regarding the allegations leveled against PTL based on the questionable higher profits gained during the bond transactions which had taken place in the secondary market. 

He made the submission during a heated argument took place between Deputy Solicitor General and PTL’s Counsel based on the methodology of calculation used in providing bond transaction details by Additional Director of CBSL’s IT Department Mr. Wasantha Kumara Alwis.

Mr. Alwis had testified before the commission based on the systematical details pertaining to the bond transactions of the PTL which was set out in the systematic medium called Lanka Security System (LSS).

Based on provided bond transactions details, DSG Milinda Gunathilake on the earlier occasion highlighted the questionable pattern which had been used by the PTL when selling bonds to the State institutes (EPF) in the secondary market, where PTL gain higher profits doubtfully as details depicted in the LSS. 

However, President’s Counsel Nihal Fernando, who appeared on behalf of the PTL yesterday cross examined the witness and questioned the means, on which the witness had analyzed bond transactions.

Mr. Fernando was of the view that the calculations of the net cash in flows of PTL was made without considering the dates of which the parties had entered into the bond transactions, and as a result, the yield price, which determined on the Transaction dates were also not concerned.

Therefore, he contested that the ‘Methodology’ used by the witness in preparing net cash inflows details was totally flawed for not considering the transaction dates.

The witness replied that he had analyzed the calculations reasonably with the details available in the system technically in the form of script less documents.

Meanwhile, during the Cross examination, when Mr. Nihal Fernando questioned on the relevancy of the witness’ uncertain evidence before the commission, Deputy Solicitor General commented that such evidence was led in expectation of summoning the ‘Perpetual Treasuries Ltd’ before the Commission and let them come and clear their name.