Monetary Board to probe EPF investments | Daily News


Monetary Board to probe EPF investments

The majority of EPF investments go into government securities; bills or bonds and the Monetary Board is conducting a study to find out whether there have been losses in their investments between 2015 and 2016, Finance Ministry Deputy Secretary S.R. Attygalle said as the Monetary Board released a statement to the press yesterday to dispel fears over losses incurred to the Employee Provident Fund (EPF). “An internal examination is currently underway under the direction of the Monetary Board on transactions of EPF in Government securities during 2015 and 2016.

The law enforcement authorities have also been requested to carry out an external independent investigation into the issuance of government securities in 2015 and 2016 in related matters as it involves examining internal operations carried out by the staff of the Central Bank,” stated the release adding that the Monetary Board had taken several measures during the past six months to strengthen the decision making process with respect to investments.

An officer attached to the EPF told the Daily News that they were not aware of the investigations and that the Central Bank had appointed a separate team to conduct it.

“Investments are going on as usual,” the official said.

In 2015, the EPF purchased Treasury Bonds from the Secondary Market at over Rs. 2.36 billion from Perpetual Treasuries Ltd (PTL) at the face value of Rs. 2 billion.

The EPF which functions under the Central Bank, according to revelations made by the COPE report last year, could have bought bonds from the Primary Auction which would have yielded greater profits but chose not to do so.

The actions which are closely connected to the bond scam led to the organisation, Voice Against Corruption (VAC), filing legal action in the Supreme Court claiming that the EPF lost close to Rs. 10 billion because of the bond scam.

The statement comes in the wake of President Maithripala Sirisena appointing a special Presidential Commission to investigate into the Bond Scam and Parliament taking up for debate the very same issue.

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