Legal counsel for Perpetual Treasuries points to error in Lanka Settlement System

Legal Counsel for Perpetual Treasuries (Pvt) Limited President’s Counsel Nihal Fernando, yesterday contradicted the suggestion made at the Presidential Commission that there has been an unusual manual intervention to the Central Bank’s Lanka Settle System regarding a transaction relevant to his client. The suggestion was made while questions were put to the Additional Director of the Central Bank IT Department K.W. Alwis.

It was suggested that, when a total amount of Intra-day Liquidity Facility (ILF) outstanding due on April 1, 2016 was settled by the Perpetual Treasuries (Pvt) Limited (PLT) on April 4, 2016, a manual intervention has released them from paying a sum of Rs.88 million.

Answering to a question by Deputy Solicitor General Milinda Gunatilake, Alwis said a sum of Rs.88 million was credited through an authorization issued by the Public Debt Department, signed by Deputy Governor Dr. N. Weerasinghe and Assistant Governor J. Mampitiya. DSG Gunatilake, questioning on the subject asked the witness, if such a manual intervention was ever done before to the Lanka Settlement System to which the witness answered in the negative .

Explaining on the ILF outstanding, Fernando PC said it was a costly mistake on the part of PTL not having bid under smaller portions, because of which his client was unable to pay the defaulted amount as at April 01, 2016.

Fernando PC said PTL has settled all amounts outstanding by the next working day and has also paid a penalty of 13.6 million for the delay. 

 

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