The Central Bank has interdicted the former Chief Dealer B.H.I Saman Kumara of the Employee’s Provident Fund from service with effect from July 10, it was revealed yesterday at the Presidential Commission of Inquiry investigating into the Treasury bond issue.
Former Chief Dealer Saman Kumara has been holding a managerial position in the EPF prior to the interdiction.
The decision to interdict the senior officer has come as a result of an investigation conducted by the Central Bank regarding him. Evidence was led before the Commission on July 7, 2017 that Saman Kumara has also obtained a loan of Rs. 25 million from the Pan Asia Banking Cooperation.
The EPF senior officer was allegedly involved in the questioned Treasury bond transaction which took place on February 27, 2015.
The EPF has bid on behalf of Perpetual Treasuries Limited at the questioned auction while buying the bonds purchased by Perpetual Treasuries at the same auction in the secondary market. The EPF has not bid on behalf of itself at the questioned Treasury bond auction.
Meanwhile, attention was drawn yesterday at the Commission to a certain recorded conversation between PABC dealers and Saman Kumara. Leading evidence at the Commission, Deputy Solicitor General Milinda Gunatilake requested the Commission to listen to the background conversation taking place while a PABC dealer makes a telephone call to EPF’s Saman Kumara. When a call is taken from the recorded line, the background noises also get recorded in.
In the telephone conversation, the caller is waiting until the other end is picked up. Commenting on the delay, the caller converses with the persons who is near him and say, “…the call is not yet being picked up”. The caller is trying to contact EPF’s Saman Kumara. Another party to the conversation asks “So why are you calling him again?” and the caller replies “The EPF has to come and make an indication” regarding a certain transaction.
Commenting on what was said, someone involved in the conversation says “The EPF will pretend as if it does not know anything” (and answer to the telephone call which is coming from a landline, subjected to recording). The telephone keeps ringing while the background conversation goes on and later on Saman Kumara answers the call and discusses certain transactions.
DSG Minilda Gunatilake pointed out that the background conversation implies that these were no ‘bona fide’ transactions. These are pre-arranged transactions, he also pointed out.
Commissioner P.S. Jayawardena asked if the deal tickets for these discussed transactions are available for perusal. The Attorney General’s panel confirmed that the documents are available with the Commission.