Mendis and Company directed to handover audited accounts

Palisena asked to disclose money trail for Rs 712 million:

The Presidential Commission of Inquiry investigating into the Treasury bond issue yesterday questioned Perpetual Treasuries Limited Chief Executive Officer Kasun Palisena on Rs 712 million worth dividends paid by his company to Perpetual Asset Management, a 100% shareholding company of PTL.

According to the evidence led before the PCoI yesterday, Perpetual Treasuries Limited pays 100% dividends to Perpetual Holdings and Perpetual Asset Management (PAM). From 2014 to 2016, the payment of dividends amounted to Rs 700 million plus. Evidence regarding PTL dividend payments surfaced as Commissioner, Supreme Court Judge Prasanna Jayawardena questioned Palisena as to who the owners of the Perpetual Treasuries Limited are.

According to the evidence led, within the web of companies where full ownership of the PTL is with PAM, the 100% PAM ownership is with Perpetual Capital Holdings (PCH). 100% ownership of the PCH is with Perpetual Capital, which is owned by Geoffrey Aloysius and his son Arjun Aloysius.

Justice Jayawardena then put a question to the witness asking as to where the trail of money ended up at. Palisena came up with an ‘I don’t know’, to which Justice Jayawardena said there is no way that Palisena would not know about that. Justice Jayawardena also asked isn’t Palisena a non-executive director at Perpetual Assets Management as well. Palisena did mention a purchasing of bank shares with the payments, but the answer was not confirmed or clear.

Palisena agreed to provide necessary information regarding the matter raised.

The PCoI reminded Palisena that it can trace these transactions itself but said the commission will hold Palisena responsible to provide correct and comprehensive information on the matter.

Meanwhile, Senior Additional Solicitor General Dappula de Livera informed Palisena to be careful with the tone of his voice with which he testifies before the PCoI.

The concern was raised by SASG Livera when Palisena was grilled on the PTL’s call recordings system, third time this week.

Palisena informed the PCoI that they are not able to provide call recordings corresponding to specific transactions like Bank of Ceylon, Pan Asia Banking Corporation and DFCC.

Justice Jayawardena following Livera’s caution reminded Palisena that he is under oath and legal action is a possibility if he makes false statements.

Palisena informed the PCoI that he checked into the call recording system in the morning. He also said that when PTL receives a call, it is recorded as a missed call and an outgoing call can be identified as it is.

Asked as to from whom PTL purchased the telephone call recording system, Palisena told the PCoI that they got it from Metropolitan Technologies.

He was then questioned if PTL customised the system when they purchased it. Palisena said he needs to check it with his IT section.

Meanwhile, President’s Counsel Anuja Premarathne requested the PCoI a time extension to provide details on W.M. Mendis and Company.

The PCo requested W.M. Mendis and Company to handover its audited accounts, bank statements and other relevant documentation from 2013 to 2017 for probing, on August 8, 2017.

The PCoI observed that W.M. Mendis and Company must have maintained audited accounts.

PCoI informed W.M. Mendis and Company to handover its audited accounts by August 16, 2017. 

Post a Comment

Previous Post Next Post