Friday 27 March 2015

Govt. probing previous regime's CB investments in EPF

By Ravi Ladduwahetty

Ceylon Finance Today: The Government is currently probing the transaction of the Central Bank's investments Employees Provident Fund in the Colombo Stock Exchange.
"All these transactions are heavy probe in a true spirit of transparency and good governance and we are determined to complete the findings within these 100 days," top official and political sources told Ceylon FT yesterday.

A cloud of controversy was looming over these transactions of the previous regime which also prompted the Auditor General also to comment on these transactions.
We are committed to transparency and we have given directions to the Central bank to give the maximum returns to the EPF members, whose lifetime earnings are in the fund, the sources said.

The probe also revolves round how the EPF Funds went into the shares which were making thumping losses and at present investments were being made into shares which were prone to risks, they said, adding that the investments were continued to be made into the stock market even under the present regime as well. "There has not been any directives to us not to invest EPF Funds in the CSE, Central Bank sources said

They said that investments were being made into the Treasury Bills and Treasury Bonds as well but brokers said that they were not given clear directives on what stocks to invest the EPF funds.

However, other sources said that it was conflict of interest for the Central Bank to invest EPF funds in banking stocks when the CB was expected to regulate the banks themselves!
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