Aloysius doesn’t remember password

-Measures have been taken to find the password: ASG

-Aloysius wants his sim back

-ASG says if Aloysius gives password all devices of his can be given back within 48 hours

 

 

By Shehan Chamika Silva

 

President’s Counsel Anuja Premaratne, who appeared for ArjunAloysius today, told the PCoI that according to his instructions Mr. Aloysius has forgotten the password of his Apple Account.

 

Following President’s Counsel Kalinga Indatissa’s withdrawal, PC Premaratne yesterday appeared as the new representative for Mr. Aloysius.

 

PC Premaratne sought PCoI’s indulgence to get back the sim card of Aloysius given to the CID investigation or to obtain a sim card with the same number from the mobile service provider. He was of the view that his client was in need of his sim card considering the difficulty he has to confront in his daily business matters.

 

However, Additional Solicitor General Yasantha Kodagoda objecting to the requests said Mr. Aloysius had not supported the investigation so far by providing his apple account and the password.

 

“Forgetting of the password cannot be accepted because the investigations had revealed that he had used his account for the i-store in downloading applications, and the new version of the IOS had been updated in his phone which cannot be done without the password, so forgetting is an absurd stance”, ASG said.

 

The ASG said Mr. Aloysius had lied and it can be proven at an appropriate time.

 

The ASG also hinted that the investigators had undertaken parallel measures to find out the password.

 

He also said that every device can be given back within 48 hours if Mr. Aloysius could provide his password, or else the investigators has to find it and therefore Mr. Aloysius will have to be patience until they find it.

 

 

Mahendran ‘threatened’ former EPF superintendent

Secondary Market transactions of EPF- Perpetual Treasuries Ltd pre arranged

-Saman Kumara was a constant visitor to Mahendran office

-Mahendran wanted daily reports of EPF secondary market transactions

-This was not a prevailing practice before at CBSL

-Witness listens to voice recordings between EPF, PTL and PABC

By Shehan Chamika Silva

 Former Superintendent of the EPF, A. Jayalath today told the PCoI that Former Governor Arjun Mahendran had threatened him to appoint Saman Kumara, the controversial dealer, into the Front Office operations of the EPF in 2015.
  

Former Superintendent of the EPF, A. Jayalath yesterday also confirmed that there were certain collusive activities visible during the secondary market transactions happened between EPF and Perpetual Treasuries, where Pan Asia Bank had acted as an intermediary in November, 2015.

Mr. Jayalath, who is currently serving as an Assistant Governor at CBSL and had worked as the Superintendent of the EPF Department during the time period of April, 2015 to April 2016.

Mr. Jayalath explaining the several transfers that took place at EPF in 2015 told the Commission that when he was appointed as the Superintendent, two most experienced officials, Paduman and Dilini, were transferred from the EPF in April, 2015.

Later in June, 2015, Saman Kumara was transferred into the EPF and the witness had appointed him to do Risk Management duties.

The witness said that he was concerned about the performance of Saman Kumara because the staff at EPF was kept informing the witness about Saman Kumara’s questionable past and his involvement in several controversial deals when he was at the EPF before.

However, on June 8, 2015, former Governor, Arjun Mahendran had phoned him and scolded saying that he has sent a CFA qualified fellow to the EPF, therefore appoint him to the Front Office of the EPF.

The witness said the Former Governor wanted to put Saman Kumara into the Front Office by going against the witness’ wish.

“The Governor scolded me to put Saman into Front Office and it was apparently a threat to me then I asked him to give one more week to do so”, the witness said.

Subsequently, Saman Kumara was trading in equity matters at the Front Office.

During this time period the witness said that he was continuously asked to intensify the secondary market transactions of the EPF by the former Governor and as a result of that he had to send daily reports relating to its transactions to the Governor, which was not a prevailing practice previously at the CBSL.  

However, in October, 2015 two officials who were handling the matters relating to the Front Office Fund Management were also transferred.

The witness said then he kept asking experienced and skilled persons to operate the division but the Governor was reluctant to send previously transferred people back to the EPF but asked him to utilize Saman Kumara instead.

Consequently, the witness said he had then appointed Saman Kumara as the head of the Front Office, and thereby he started handling deals relating to the Treasury Bonds.

According to the witness it was also revealed that Saman Kumara was a constant visitor to the office of the former Governor, and their unusual relationship was evident in several instances. He said it was unethical for Saman Kumara to talk about EPF division’s decisions with the Governor.

It was revealed that questionable secondary market transactions between EPF and Perpetual Treasuries Ltd had been taken place in November, 2015, where PABC acted as an intermediary.

However, in January, 2016 there was a rumor circulating in the market about the EPF’s secondary market transactions.

The witness said an e-mail was circulating at that time and consequently he was asked to conduct an investigation about the matter by the Monetary Board and the then Governor.

It was revealed that the witness had prepared a report identifying some suspicious activities that happened during the alleged transactions based on the information he collected at the middle office.

He said the preliminary investigation was conducted in the absence of a voice recording system at the EPF and therefore he had mentioned in his report that he could not affirm allegations stated.

However, the report was given in February 2016 to the then Governor but the witness had not received any feed back from the Governor afterwards. The existence of such a report came to light only in October 2016 during the inquiry conducted under the new Governor Indrajith Kumaraswami.

The witness also said that he had informed the Governor about the necessity of having a voice recording system to scrutinize the dealers who contact with other counter parties. However, setting a voice recording system was never considered.

According to the PCoI Commissioner, Justice Prasanna Jayawardena’s examination it was revealed that setting such voice recording system into the EPF costs only about Rs. one million.

Subsequently, Deputy Solicitor General Milinda Gunathilake, who led the evidence, played few phone conversations that had been taken place between PABC, PTL, and EPF dealers in the course of secondary market transactions.

These voice recordings were obtained by the investigation from the voice recording system of the PABC.

Having listened to the phone conversations, the witness, Mr Jayalath said that it was apparent that the prices and the rates had been prearranged when PTL and EPF have been transacting in the secondary market through PABC, because there were no negotiations visible in the conversations.

Funds to purchase Ravi’s penthouse had no origin or documentation; PCoI hearing reveals

* ASG Yasantha Kodagoda hints at money laundering

* Rs.145 mn unaccounted money in GTLPL Chairman Lakshmi Kanthan’s safe

* GTLPL Chief Financial officer B.R. Chinnaiya makes startling revelation at inquiry

By Shehan Chamika Silva

The Rs.145 million used in making the initial payment of Rs.16.5 million and thereafter to pay the monthly loan installment of Rs.11 million for the controversial purchase of the Monarch Residency Penthouse in Colombo by a company owned by Minister Ravi Karunanayake's family- has no origin nor has it been accounted for, according to what was revealed at the PCoI.

Testifying at the inquiry, Chief Financial Officer of the Global Transportation and Logistics Pvt Ltd (GTLPL), Mr B.R. Chinnaiya explained the manner in which the Monarch Residencies Penthouse had been purchased.

The witness, who has 36 years of experience in the banking field had been also appointed to the Board of Directors of the BOC in 2015 by the then Finance Minister Ravi Karunanayake for a period of one year.

It was earlier revealed that Minister Karunanayake and his family occupied a Penthouse at the Monarch Residencies for eight months on a lease basis and the monthly lease rental of Rs.1.45 million was paid by Arjun Aloysius.

Subsequently the penthouse had been purchased for Rs.165 million by GTLPL, in which Minister Karunanayake’s wife Mela and daughter Onella were directors.

According to the witness, the GTLPL has two major share holders, 30% acquired by a foreign company headed by the GTLPL Chairman and 70% owned by a company known as OSM Holdings, in which Ms. Karunanayake and their daughter Onella are directors.

The witness said he was instructed by these two directors to obtain a loan and purchase the Penthouse in July 2016 for the use of the Chairman and the family or to be uses when foreign guests are required to be accommodated.

The witness said he then negotiated with the Seylan Bank for the loan but had no negotiations with the price at which the GTLPL would buy the apartment.

It was told that there was an advance payment of Rs.16.5 million had to be paid to the owner of the Penthouse.

However, it was revealed during the evidence that the GTLPL did not have that much money in there account at the time.

He said directors Ms Karunanayake and daughter Onella, instructed him to get the Rs.16.5 million from the Chairman’s safe at the company and pay the initial payment as they had obtained his permission to do so. Mr. Chinnaiya said there was Rs.25 million in the Chairman’s safe.

Later, a loan of Rs.150 million had been granted by the bank on a mortgage to buy the Penthouse.

It was also revealed that the witness had told the bank that the Company wished to buy the Penthouse to rent it out and the rental payment would be directly allocated into the repayment, though it never happened.

The GTLPL agreed with the bank to repay the loan in 15 installments of Rs.11 million each.
The witness said nine installments had been paid so far using the liquid cash available at the Chairman’s safe at the GTLPL.

In a shocking revelation, when he was questioned about the origin of the money, the witness said Chairman ‘Lakshmi Kanthan’ who resides in Britain had arrived at the Company on two occasions in February 2016 and 2017 and dumped cash amounting to Rs.145 million in the Chairman's safe.

The witness said that the Chairman had handed him Rs.70 million to be kept in the safe in February 2016 and later another Rs.75 million had been given in February 2017.

It was revealed that the witness had accepted the cash on the two occasions and it had not been supported by any documentation or receipt issued to Mr. Kanthan neither were there any entries in the GTLPL accounts books regarding these two cash inflows.

It seemed that the Commission and the Additional Solicitor General Yasantha Kodagoda who led the evidence were shocked with the comment of the witness and continued to question him about the origin of the money.

The witness said he never questioned his Chairman Kanthan over how the money was generated.

Justice Prasanna Jayawardena and Justice KT Chithrasiri asked the witness on what basis, being a prudent banker himself, had accepted the money by not verifying its origin. And the Commission also questioned the possibility of the practice that such a large amount of money being kept in a safe without allocating it to the business.
ASG Kodagoda was also of the view that there could be criminal aspects, such as money laundering, deriving through such practices.

On being questioned by the ASG, the witness said the Chairman's safe was of medium size and that he had brought the money in two parcels to be placed in the safe.
Adding some amusement to the query, ASG Kodagoda commented, “the chairman’s safe is like a Perpetual Treasure Box”.

Refering to the statement of accounts presented by the witness of the GTLPL, Justice Jayawardena also questioned the witness relating to the Rs.145 million given by the chairman. The witness was unable to find such an entry in the company's statement of accounts.

The ASG finally explained to the commission that the initial payment of Rs.16.5 million and the installment of Rs.11 million for nine months had been paid from the money (Rs.145 million) placed in the chairman’s safe by Mr. Kanthan himself, while the origin of that money was not reflected in any documentation.

PCoI wants details relating to purchases of Perpetual Capital Holdings

By Shehan Chamika Silva

The PCoI today wanted to findout the information relating to the purchases of the Perpetual Capital Holdings Pvt LTd or its subsidiaries since February 1, 2015 in order to find out how the money circulated in the secondary market transactions had been generated.

SC Justice Prasanna Jayawardena pointing few company names requested the President's counsel Kalinga Indatissa who appeared on behalf of the Perpetual Capital Holdings to provide the dates and costs relating to the purchases of those companies.

The companies named by the Justice were W.M.Mendis & Co. Ltd, Voice of Asia Network associated with the Siyatha TV network, Integrated Media Networks Pvt Ltd and Janayugaya Newspaper.

The Commission also required the particulars in respect of the Companies controlled and owned by the Free Lanka Group and the Perpetual Capital Holdings.

In determining the ownership of the companies, the commission wanted details of any substantial share holding companies or subsidiaries of the Free Lanka Group and the Perpetual Capital Holdings.

The President's Counsel also undertook to provide the required details by August 2 through an affadavit.

Aloysius refuses to provide password of his Apple account to Commission

By Shehan Chamika Silva

The Commission of Inquiry today ordered Arjun Aloysius to provide his Apple user account name and password, it to the investigating officers and directed the staff to notice him as he had earlier refused to provide this information.

The Additional Solicitor General today told the Commission that the mobile phone which was given by Aloysius is the one he was using since October 2016. He said when the investigations had revealed about an apple account belonging to Mr. Aloysius, he was questioned about its user name and the password but he refused to divulge them.
Acceding to the ASG’s request the PCoI then decided to order him to provide the details as it was required for the digital forensic examination.

In the meantime, Counsel Chanaka de Silva who appeared for Central Bank's former Governor Arjun Mahendran, sought an order from the PCoI allowing his representative to be present when experts extract information from his client’s mobile device.

However, ASGs Dappula de Livera and Yasantha Kodagoda objecting to the submission told the commission that there was a well established practice by law in the process of case production and no one should be permitted to be present when experts extract details because it could jeopardize the forensic investigation.

They also drew the Commission’s attention into few higher court precedents and said there were international standards maintained in such instances, which could also be made available if the commission requires such information based on the situation.

The Commission directed the Attorney General’s Department to provide necessary details pertaining to the practice of productions so that they could make an appropriate order in relation to that later.

Funds to purchase Ravi’s penthouse had no origin or documentation; PCoI hearing reveals

* ASG Yasantha Kodagoda hints at money laundering

* Rs.145 mn unaccounted money in GTLPL Chairman Lakshmi Kanthan’s safe

* GTLPL Chief Financial officer B.R. Chinnaiya makes startling revelation at inquiry

By Shehan Chamika Silva

The Rs.145 million used in making the initial payment of Rs.16.5 million and thereafter to pay the monthly loan installment of Rs.11 million for the controversial purchase of the Monarch Residency Penthouse in Colombo by a company owned by Minister Ravi Karunanayake's family, has no origin nor has it been accounted for according to what was revealed at the PCoI today.

Testifying at the inquiry, Chief Financial Officer of the Global Transportation and Logistics Pvt Ltd (GTLPL), Mr B.R. Chinnaiya explained the manner in which the Monarch Residencies Penthouse had been purchased.

The witness, who has 36 years of experience in the banking field had been also appointed to the Board of Directors of the BOC in 2015 by the then Finance Minister Ravi Karunanayake for a period of one year.

It was earlier revealed that Minister Karunanayake and his family occupied a Penthouse at the Monarch Residencies for eight months on a lease basis and the monthly lease rental of Rs.1.45 million was paid by Arjun Aloysius.

Subsequently the penthouse had been purchased for Rs.165 million by GTLPL, in which Minister Karunanayake’s wife Mela and daughter Onella were directors.

According to the witness, the GTLPL has two major share holders, 30% acquired by a foreign company headed by the GTLPL Chairman and 70% owned by a company known as OSM Holdings, in which Ms. Karunanayake and their daughter Onella are directors.

The witness said he was instructed by these two directors to obtain a loan and purchase the Penthouse in July 2016 for the use of the Chairman and the family or to be uses when foreign guests are required to be accommodated.

The witness said he then negotiated with the Seylan Bank for the loan but had no negotiations with the price at which the GTLPL would buy the apartment.

It was told that there was an advance payment of Rs.16.5 million had to be paid to the owner of the Penthouse.

However, it was revealed during the evidence that the GTLPL did not have that much money in there account at the time.

He said directors Ms Karunanayake and daughter Onella, instructed him to get the Rs.16.5 million from the Chairman’s safe at the company and pay the initial payment as they had obtained his permission to do so. Mr. Chinnaiya said there was Rs.25 million in the Chairman’s safe.

Later, a loan of Rs.150 million had been granted by the bank on a mortgage to buy the Penthouse.

It was also revealed that the witness had told the bank that the Company wished to buy the Penthouse to rent it out and the rental payment would be directly allocated into the repayment, though it never happened.

The GTLPL agreed with the bank to repay the loan in 15 installments of Rs.11 million each.
The witness said nine installments had been paid so far using the liquid cash available at the Chairman’s safe at the GTLPL.

In a shocking revelation, when he was questioned about the origin of the money, the witness said Chairman ‘Lakshmi Kanthan’ who resides in Britain had arrived at the Company on two occasions in February 2016 and 2017 and dumped cash amounting to Rs.145 million in the Chairman's safe.

The witness said that the Chairman had handed him Rs.70 million to be kept in the safe in February 2016 and later another Rs.75 million had been given in February 2017.

It was revealed that the witness had accepted the cash on the two occasions and it had not been supported by any documentation or receipt issued to Mr. Kanthan neither were there any entries in the GTLPL accounts books regarding these two cash inflows.

It seemed that the Commission and the Additional Solicitor General Yasantha Kodagoda who led the evidence were shocked with the comment of the witness and continued to question him about the origin of the money.

The witness said he never questioned his Chairman Kanthan over how the money was generated.

Justice Prasanna Jayawardena and Justice KT Chithrasiri asked the witness on what basis, being a prudent banker himself, had accepted the money by not verifying its origin. And the Commission also questioned the possibility of the practice that such a large amount of money being kept in a safe without allocating it to the business.
ASG Kodagoda was also of the view that there could be criminal aspects, such as money laundering, deriving through such practices.

On being questioned by the ASG, the witness said the Chairman's safe was of medium size and that he had brought the money in two parcels to be placed in the safe.
Adding some amusement to the query, ASG Kodagoda commented, “the chairman’s safe is like a Perpetual Treasure Box”.

Refering to the statement of accounts presented by the witness of the GTLPL, Justice Jayawardena also questioned the witness relating to the Rs.145 million given by the chairman. The witness was unable to find such an entry in the company's statement of accounts.

The ASG finally explained to the commission that the initial payment of Rs.16.5 million and the installment of Rs.11 million for nine months had been paid from the money (Rs.145 million) placed in the chairman’s safe by Mr. Kanthan himself, while the origin of that money was not reflected in any documentation.

Kalinga Indatissa PC says President faulted in extending the PCoI proceedings

By Shehan Chamika Silva

Making a special application Kalinga Indatissa PC today said that the President has faulted when extending the PCoI proceeding in April 27, therefore the evidence led after that date up to July 25 has no authority as per the PCoI Act.

He said the PCoI had been appointed on January 27, 2017 for three months of period. Later, in April the President had extended the Proceedings of the Commission for another three months without issuing a Gazette.

PC said the extension should be made through a Gazette as per law, and the President has faulted on that occasion. He said the second extension on July 25 however made through a Gazette.

However, replying to the submission, ASG Dappula de Livera said that the section 4 of the PCoI Act provides provisions on such instances and the president has sufficiently complied with them when extending the PCoI proceedings.

The Attorney General’s Department was of the view that there was no absolute requirement of a Gazette in extending the PCoI proceedings.

Meanwhile, Kalinga Indatissa yesterday also withdrew his representation of Mr. Aloysius and made a fresh application to represent Perpetual Capital Holdings only.

ASG wants Mahendran’s electronic devices too

-Mobile phone given by Aloysius only Six months old

-Public has a right to know what happens at PCoI: ASG Livera

By Shehan Chamika Silva

Submitting a special application, Additional Solicitor General Yasantha Kodagoda today requested the commission to direct Arjun Mahendran, former Governor of CBSL, to hand over all communication devices he used since January 1, 2015 to date for the investigation.

The ASG made the application under section 6 of the Presidential Commission on Bonds Issue (PCoI) Act based on available material obtained during the investigation which was sufficient to make such a request. The Commission said it will consider the request.

Drawing the attention of the commission to that some witnesses have already lost their mobile devices on previous occasions saying various reasons, the ASG also said the mobile device handed over recently by Arjun Aloysius was only six months old.

On a previous occasion, it was revealed that Aloysius had allegedly destroyed the mobile phone he was using at the time in Singapore while interdicted EPF dealer Saman Kumara’s mobile device had been broken for no apparent reason.

Objecting to the application, Counsel Chanaka de Silva who appeared on behalf of the former Governor said that the application was solely made seeking Media attention.

Responding to it, ASG Dappula de Livera said that the public have a right to know what happens inside the PCoI and the Media is present to convey that to the Public.

“So you admit that the application was made for the Media,” counsel asked. The ASG said he never said that.

Ravi cites Security Council meeting, will come to PCoI on August 2: His lawyer informs PCoI

* PCoI unconvinced

* ASG says other EPF witnesses crucial

* ASG Livera and his team commended

By Shehan Chamika Silva

Appearing for former finance minister Ravi Karunanayake, President’s Counsel Rienzie Arseculeratne today informed the PCoI that his client was unable to be present at the inquiry because he had to attend a Security Council (SC) meeting convened by the President.

When questioned by the PCoI, Mr. Arseculeratne PC said the minister had to attend parliamentary sessions scheduled for today and tomorrow and will be leaving for the Maldives on Monday and according to his instructions the minister will testify at next Wednesday's inquiry.

Considering time constraints, the PCoI asked the counsel about the possibility of the minister being present on Saturday. Mr. Arseculeratne PC said he was not so instructed.

During submissions, it was revealed that the minister had already submitted a letter to the PCoI with regard to the inquiry.

“We need to find out the truth, that is why the minister was summoned,” Justice K.T. Chithrasiri said.

It appeared that the Commission was unhappy about the minister's absence at the inquiry.

Justice Prasanna Jayawardena was also of the view that as much as the PCoI respected the duties of the minister, he on his part, should also be concerned about the convenience of the proceedings because the PCoI had a limited time frame to complete its mandate.

“On the first day we summoned him, he said he has to attend Cabinet meetings and then we again summoned him to be present yesterday because there were no cabinet meetings but he now says he as to attend a security council meeting,”Justice Jayawardena said.

In response Mr. Arseculeratne PC assured the commissioners that the minister would attend the inquiry next Wednesday.

Justice Jayawardena informed Mr. Arseculeratne PC that it would be the last chance to be present and if the minister failed to attend the inquiry on the promised date then commission would have to reconsider its options.

Subsequently, when questioned, Additional Solicitor General Dappula de Livera said they had not lined up a new witness to testify before the PCoI in the absence of the Minister.

Justice Jayawardena said two to three days of PCoI proceedings had been wasted because of the situation that had cropped up and asked the ASG to call Mr. Jayalath, who is a witness from the EPF, to testify on the next two days.

However, even though the commission wanted to summon another witness until the minister attended; the ASG was of the view that his Department would be unable to lead evidence from witnesses, Mr. Jayalath or interdicted EPF dealer Saman Kumara during the next few days because the investigations into their activities were still ongoing.

However, the Commission wanted one of the witnesses to be summoned and asked ASG to produce a witness immediately despite the conclusion of the investigations. The ASG said he could produce a witness but would not be examining him at the PCoI because he needs more time.

“:We have been working day and night, my team works on a 24 hour schedule, there are lots of material to be perused and several persons to be interviewed in relation to those two crucial witnesses,” ASG Livera said.

The Commission replied, “We are fully aware that the Attorney General’s Department is completely committed to the inquiry and about the superb work done so far,” Justice Jayawardena said.

ASG Livera informed the commission that the next two witnesses from the EPF were crucial and as such needed more time to investigate before bringing him in.

Justice Jayawardena said the entire country was concerned about the commission’s report therefore, with the aim of writing an impartial report along with definite findings; the commission needs substantial time as well.

The commission also asked the ASG to produce Mr. Jayalath on Friday. The ASG said he would do his best to bring him and extended his maximum support to the Commission.

“No trying, you must produce the witness”, adding some amusement into the conversation the Commission told ASG.

Aloysius hands over electronic devices to CID

By Shehan Chamika Silva

Following the directions made by the PCoI, Arjun Aloysius has today handed over the requested electronic communication devices to the CID officials attached to the PCoI.

The PCoI had instructed Arjun Aloysius to hand over his mobile phones, laptops and other communication devices used since 2015.

Initially at the PCoI proceedings yesterday, President’s Counsel Kalinga Indatissa who appeared for Mr. Aloysius submitted an affidavit which contains the details of the requested devices by the CID.

The Counsel asked to provide his client’s all devices to the CID officials but the DSG wanted Mr. Aloysius to come and hand them over personally.

The Criminal Investigations Department (CID) carries out investigations into the devices.

Heated argument over Ravi`s absence at Commission

By Shehan Chamika Silva

A counsel appearing for former Finance Minister Ravi Karunanayake today informed the PCoI that the minister would not be able to appear at the PCoI today to summoned to do so. The PCoI had earlier summoned the minister to testify at the PCoI.

Counsel Sandun Gamage appearing for the minister said according to his limited instructions, the minister would not appear before the PCoI today and that the minster had said he would inform the PCoI of the date he would be able to attend the inquiry.
The submission was made at the end of today’s PCoI proceedings by Minister Karunanayake's counsel.

Subsequent to the submission, there was a heated argument between Additional Solicitor General, Dappula de Livera and the minister's counsel.

The ASG was of the view that the counsel should have informed the PCoI about the matter at the beginning of the proceedings and the reason for the failure to appear before the PCoI clearly mentioned.

The counsel said he was instructed by the minister about a Cabinet meeting. Then the Commission questioned the counsel whether Cabinet meetings were normally held in the evening.

However, the ASG was of the view that if the reason was to attend a Cabinet meeting then the reason must be clearly mentioned with the details.

The ASG informed the PCoI that they had not lined up another witness to testify at the PCoI today in place of the former finance minister.

The PCoI also emphasized that it would consider the minister's request and directed the counsel to inform the earliest date on which his client would attend the inquiry.
The Commission made these directions considering the time constraints. 

Aloysius paid Ravi’s penthouse lease rental: Witness

* Witness says Aloysius asked her to destroy the lease agreement

* Former Finance Minister’s family company later purchased the penthouse

* Ravi phoned witness’ father last Saturday

By Shehan Chamika Silva

Former Finance Minister Ravi Karunanayake and his family leased out a penthouse at Monarch Residencies for eight months with the monthly lease rental Rs.1.45 million being paid by Arjun Aloysius, a key witness revealed at the PCoI proceedings today.

Testifying at the PCoI, Construction Company Director M. Vinodini said she had owned a Penthouse at Monarch Residencies in Kollupitiya which she wanted to rent-out during December, 2015.

Subsequently, in early January, 2016, former finance minister Ravi Karunanayake and his wife Mela had inquired from the witness' brother about renting the apartment. Later the witness contacted Ms. Karunanayake and carried out initial negotiations about renting the apartment.

It was revealed that the Karunanayake family was looking for an apartment to stay during the renovations being carried out at their residence in Rajamalwatte, Kotte.

The witness had later asked Ms. Karunanayake to visit the apartment to examine it. It was revealed that during the examination Perpetual Treasuries Ltd. owner Arjun Aloysius had also arrived at the apartment and had assured the witness that he would lease out the apartment.

The witness said she was aware at the time that Mr. Aloysius would be the lessor while the Karunanayake family occupied the apartment.

The witness also explained that she developed a friendship with Mr. Aloysius and his wife before the lease agreement was signed.

When questioned by the PCoI, the witness said the apartment was leased at a monthly rental of Rs.1.45 million.The lease agreement amounted to Rs.7.3 million while an additional Rs.1.4 million was paid to the witness by cash.

The witness said she entered into a lease agreement with the Company called Walt and Row Pvt Ltd, to which the Rs.7.3 million was transferred by the Perpetual Capital Holdings Pvt Ltd, to be paid to her.

The witness confirmed that the Karunanayake family occupied the penthouse. In July, 2016, there was news published on websites regarding the incident highlighting the Karunanayake family occupying an apartment, with the rental paid by Mr. Aloysius.

In the wake of media reports, the witness revealed that Mr. Aloysius had asked her to destroy the lease agreement.

“He said he destroyed his copy of the lease agreement and asked me to do the same, but I was confused with the request because the documentation would generally be available at the public records room and did not do what he asked me to do,” the witness said.

She said she also contacted Ms. Karunanayake afterwards and talked about the media reports and their negative impact on her as the owner of the apartment.
The witness said she had asked Ms. Karunanayake to either purchase the apartment or vacate it considering the circumstances.

However, the witness said she allowed the Karunanayake family to occupy the apartment for another two months allocating the refundable deposited money into it because the renovations of their residence were not concluded.

Then the witness had called Mr. Aloysius and informed about the extension of the lease agreement. The witness said the Karunanayake family later conveyed their willingness verbally to buy the apartment and settled on a price of Rs.165 million.

She said a Company known as Global Transportation and Logistics Pvt Ltd, in which Ms. Karunanayake and her daughter Onella were directors, purchased the apartment in September 2016.

When questioned by DSG Yasantha Kodagoda who led the evidence in chief, the witness revealed that Ravi Karunanayake had phoned her father last Saturday prior to testifying at the PCoI. President’s counsel Kalinga Indatissa also crossexamined the witness

“Excitement” with new witness on Monday: State Counsel says during PCoI hearing

-PCoI informs PTL lawyers to get ready

 

-AG’s evidence over Bond issue will end by July 31

 

By Shehan Chamika Silva

 

The Presidential Commission of Inquiry (PCoI) today advised the Lawyers of Perpetual Treasuries Ltd (PTL) to come up with their evidence before the PCoI in the week starting from July 31.

 

The direction was made based on the possible conclusion of the Attorney General’s entire evidence relating to the bond inquiry by the end of July.

 

The Commission also informed the Counsel who appeared on behalf of the former Governor to be prepared with his evidence immediately after the conclusion of PTL’s evidence.

 

In the meantime, it was revealed that there will be a new witness testifying before the PCoI on Monday (24 July).

 

When the Counsel appearing for PTL questioned about the identity of the next witness, the Commission said that the name cannot be disclosed at the moment because the initial investigations on bringing in that witness were still not concluded.

 

However, the Attorney General’s Department assured PTL lawyer that there would be an “excitement” on Monday.

 

Initially at the proceeding, Deputy Superintendent of the Public Debt Department (PDD) at CBSL, W. Prabath gave evidence before the Commission.

 

His evidence was led by Deputy Solicitor General Milinda Gunathilake based on a document published by the PDD.

 

Based on the average of the quotes (rates) received from all Primary Dealers, the PDD generally prepares the sheet regarding rates of the secondary market transactions.

 

The DSG was referring to the average quotes of PDD along with the transactions that happened in the secondary market pertaining to the PTL.

 

However, the DSG requested the commission to call the witness again before the PCoI next week because more deal tickets are yet to be received to the AG’s Department over PTL’s transactions through DFCC Bank.

 

On the request of the ASG Dappula de Livera, the Commission adjourned the proceedings till Monday.

 

 

 

Alloysius requested “to conceal vital information”: witness

- Alleged pattern visible in PTL and EPF transactions: DSG 

- Former PABC chairman sold bonds to EPF at a prearranged rate: witness

By Shehan Chamika Silva

Deputy General Manager of the Pan Asia Bank (PABC), R. A. B. Dias yesterday said that owner of Perpetual Treasuries Ltd, Arjun Alloysius, had asked him “to conceal vital information” when testifying before the Presidential Commission of Inquiry.

The revelation was made when the witness was questioned by Deputy Solicitor General Milinda Gunathilake regarding the previous testimony he gave about Mr. Alloysius’ request prior to him giving evidence before the PCoI.

The solicitation had been allegedly made during a meeting, which took place on June 30, 2017 at the residence of Mr. Alloysius with, who was the DGM of the PABC.

Earlier, it was revealed that the witness had visited Mr. Alloysius residence subsequent to the continuous phoned calls made by Mr. Alloysius demanding a short meeting with the witness prior to his testimony at PCoI.

“Mr. Arjun phoned me on June 30 and wanted to meet me, and he was pleading to meet me, I also wanted to meet him to get clarifications, and when we met he said next two weeks are crucial to him, therefore, need my support at PCoI proceedings ”, the witness said in his earlier evidence.

Meanwhile, during the cross- examination led by Mr. Nihal Fernando PC and Counsel Romali Tudawe the witness exposed certain matters regarding the Bonds that were sold to the EPF in the secondary market, where PABC acted as an intermediary.

According to the witness, during the intermediary process, the PABC had also sold Rs. 8.5 billion worth Government Securities of its former chairman, Nimal Perera and the securities belonging to his private company called ‘NP Capital’ to the EPF.

The amount was in relation with only 32 secondary market transactions, on which PTL lawyers had been cross examining the witness.

He explained that Mr. Nimal Perera had pre arranged the rates and prices at which the bonds would be sold to EPF.  ‘He had negotiated with the EPF dealer, Saman Kumara directly about the rates and had informed PABC to confirm them and continue with the deals’, he said. 

The PABC was handling the portfolio of its Chairman in the secondary market transactions.

When questioned by the Commission, the witness explained that apart from its former chairman there were five clients of the PABC who had sold Bonds to the EPF, where PABC acted as an intermediary.

Navara Capital, Virtual Investments, Tradies Holding, Vitavel Private Ltd and Trillion Securities were the companies which had dealt with PABC when selling bonds to the EPF in the secondary market.

Acceding the commission’s request, the witness agreed to provide details about the directors and the shareholders of those companies for the perusal of the PCoI.

It was explained that these clients of PABC had also sold bonds to the EPF at a rate similar to what Mr. Nimal Perera’s rates in selling bonds to the EPF.

He said that its dealers were negotiating with the EPF on behalf of its clients to decide the rates.

The witness said that Mr. Nimal Perera and Perpetual Treasuries Ltd had sold bonds to the EPF at a prearranged higher rate through PABC, and based on that the PABC also traded with its other clients in the intermediary process.  

The witness said that there was a manipulation in market rate because of the long term bonds. “If we set a batting wicket in a cricket match, opposite team could also get the advantage of it, that is exactly what happened”, he said

He said the PABC gained only a nominal profit while the actual profits went to its clients during these transactions where the PABC acted as an intermediary.

Consequent to the questions made by PTL counsel Romali Tudawe regarding the 32 specific secondary markets transactions, which were reflected in a marked document at PCoI, the witness said that the information relating to transactions between the PABC and its clients during the intermediary process was not reflected in the document due to the shortcomings of its back office officials.

However, he said the information would be available in the bank’s internal records if wanted.

Pointing a specific transaction, which had been recorded in the document, the counsel questioned the reason for the contradictory practice of recording, and the Witness said that it was a mistake of the back office.

Re-examining the witness, the DSG told the commission that there was a pattern visible in the transactions where PTL sold bonds to the EPF through PABC because such instances there were other clients of the PABC exist in between those transactions.

The Commission also permitted the DSG to submit a document prepared by the Attorney General’s Department depicting the alleged pattern derived from the document that contains a large amount of secondary market transactions.