Interdicted EPF Chief Dealer takes the heat on witness box

The credibility of former Chief Dealer of the EPF B.H.I. Saman Kumara, who was interdicted recently (10), was relentlessly attacked when he stood before the commission to testify, yesterday.

Saman Kumara is the former Chief Dealer of the Employee’s Provident Fund (EPF) who purchased Perpetual Treasury Bonds from the secondary market for the EPF. Pan Asia Bank was the intermediary.

The EPF could have brought the bonds from Primary Market instead of the secondary market.

Saman Kumara’s personal life and details of his professional life where many questionable transactions had taken place were put on record by Senior Additional Solicitor General Dappula De Livera.

At the initial stage of questioning Saman Kumara was asked whether he is aware of the gravity of giving false evidence under oath.He said he does not have the necessary legal knowledge regarding such. Justice Prasanna Jayawardena said a witness who provides false evidence could be prosecuted and be imprisoned under the Penal Code.

According to the evidence led before the Commission, Saman Kumara and his family members own assets exceeding Rs. 80 million while owning a chain of businesses and shares in the stock market. It was revealed that he holds 19 accounts in nine different banks. He and his family members also holds accounts worth more than Rs ten million. Saman Kumara has also done transactions with Primary Dealers such as HSBC and the NDB in the Treasury bond market. He has very recently purchased a fuel bowser tank as well.

Justice Jayawardena asked the witness whether he has failed to provide an assets declaration to the Central Bank, to which Saman Kumara answered in affirmative. He said he ‘failed’ to provide assets declarations for two years. Justice Jayawardena said, a well-planned businessman as he is, he cannot say that he ‘failed’ to provide the documents. Justice Jayawardena asked ‘isn’t there a case against his regarding the same matter at present’, to which the witness answered in affirmative as well. Justice Jayawardena pointed out that another case could be filed against him at the magistrate courts if the necessity occurs.

The Commission ordered Saman Kumara to hand over the passports of his and all his family members to the Commission by today (13) morning. Commissioners also ordered Saman Kumara to hand over a phone he used few years back within a two weeks time.

The Commission asked Saman Kumara whether he would like to add his comments to the testimony, to which the witness said ‘yes’. He said there is a ‘conspiracy’ within the Central Bank against him. Saman Kumara said a Deputy Governor is behind the ‘conspiracy’.

As a result of this ‘conspiracy’, the witness said he was not summoned before the COPE committee or the Auditor General’s Department who were investigating into the Treasury bond issue.

Saman Kumara said he has been promoting the auction method from 2014, since it is more a transparent than the direct placement method. Saman Kumara also said he admired former Governor Mahendran for the changes he introduced to the Central Bank. The witness also said that he is able to provide information with data, regarding all the discrepancies that took place at the Employee’s Provident Fund.

The Commission gave permission to Saman Kumara to seek legal counsel when he appears before the Commission next Monday (17). The Commission requested him to give an honest and truthful testimony.

Earlier in the morning Justice Prasanna Jayawardena and Chairman, Justice K.T. Chithrasiri ordered Counsel for Perpetual Treasuries Nihal Fernando PC to desist from confusing a witness. Pan Asia Bank DGM Richard Dias who was on the witness stand was cross examined by Counsel for Perpetual Treasuries Romali Tudawe and Nihal Fernando PC. During the evidence it was revealed that Nimal Perera the former Chairman of Pan Asia Bank had bought bonds in his personal capacity and using another company under him.

Senior Additional Solicitor General Dappula De Livera led evidence for the day.

It was revealed at the Commission that there have been more parties involved in the selling of the questioned Treasury bonds in the secondary market. The Commission instructed Deputy Solicitor General Milinda Gunatilake to find out who these involved parties are.The Commission also said these parties will also be summoned if necessity arises.

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