Do you contribute to the EPF, here’s how your money was stolen

Colombo (News 1st): The forensic Audit on the Central Bank Bond Scam has revealed that the Employees Provident Fund had suffered a loss of over Rs. 16 billion between 2008 and 2015.

According to the report, investments in treasury bonds caused losses of about Rs. 8.7 billion, and investments in the Stock Market had caused losses of Rs. 7.7 billion.

The forensic audit pointed out that the losses were caused due to investments made outside the accepted procedures.

The EPF is the largest Social Security Scheme in Sri Lanka with an asset base of Rs. 2.29 trillion as at the end of 2018.

The management of the fund is handled by the EPF department of the Central Bank of Sri Lanka.

The EPF has invested 92% of its investments in treasury bonds while 3.3% in the Stock Market.

Similar to the Central Bank Bond Scam, the EPF was one of the main victims of the corruption and malpractices that had taken place in the Stock Market.

The forensic audit of the Central Bank reveals, the EPF had suffered a loss of Rs. 8.7 billion, due to the bond transactions that had taken place during the controversial period between 2008 and 2015.

It adds that the EPF had suffered a loss of Rs. 7.7 billion due to investments in just six listed companies.

The EPF suffered a loss of Rs 1.3 billion due to investing in the shares of Brown & Co. PLC. and Rs. 6. billion due to investing in the shares of Ceylon Grain Elevators PLC.

The EPF suffered a loss of Rs.620.62 million due to its investment in the shares of Galadari Hotels Lanka PLC and a loss of Rs.1.9 billion due to the investment in the shares of Colombo Dockyard.

Also, the EPF suffered a loss of Rs.1.7 billion in the investment in the shares of Bukit Darah PLC and a loss of Rs.1.6 billion due to investing in the shares of Carson Cumberbatch PLC.

According to the forensic audit, EPF funds worth Rs.4.5 billion had been invested in unlisted companies prior to 2011 without any policy guidelines.

Two of these investments were approved by the monetary board while investment in SriLankan Airlines was ratified by the monetary board later.

The EPF had made certain investments that appear to be on the basis of instructions received from persons outside the Central Bank and said to be in the “national interest”.

The forensic report quoting various persons reveals that Governor Ajith Nival Cabraal had close involvement in these matters.