Members of the EPF lose Rs 12 billion at the Colombo bourse, says Harsha

Notwithstanding the almost daily statements by the Employees Provident Fund (EPF) defending its investments in the Colombo Stock Exchange ( CSE) violating its own published ' Investment Guidelines' it has now been revealed that the EPF share portfolio has made losses to the tune of a staggering Rs 12.2 billion, says Harsha de Silva, the UNP economist-Parliamentarian who has become a persistent critic of the Central Bank ( CB) and its current policies

In a statement, he said these figures were from the list of EPF investments in the CSE as at 20 June 2012 tabled by Senior Minister Sarath Amunugama as a partial response to a question raised by Opposition Leader Ranil Wickremasinghe.

The losses made on just the six stocks listed on the Secondary Board of the CSE in violation of the guideline that investments should be made only on ‘blue chips’ has resulted in a loss of Rs 2.7 billion or 22.5 per cent of the total loss, he said. Of this amount, the largest losses are from the investments in Laugfs amounting to Rs 1.8 billion, Vallibel One - Rs 740 million and Lighthouse Hotels - Rs 87 million. Some of the other massive losses are from the investments in LOLC Rs 1 billion, Browns Rs 945 million, Ceylon Grain Elevators Rs 713 million and Galadari Hotels Rs 470 million.

“Besides investigating the governance issues alluded to by the global rating agency S& P in issuing a very high risk rating for the entire banking system of the country the UNP will continue to push for an independent investigation into the transactions of the entire EPF stock portfolio and thereafter for legal action in the event persons are found to have committed securities fraud.

In the meantime we will assert that officials of the EPF Department of the Central Bank be summoned urgently to the Public Accounts Committee of Parliament to answer queries on alleged improper transactions at the CSE over the last two years and general queries for the last six years,” the statement added.

In a statement, he said these figures were from the list of EPF investments in the CSE as at 20 June 2012 tabled by Senior Minister Sarath Amunugama as a partial response to a question raised by Opposition Leader Ranil Wickremasinghe. The losses made on just the six stocks listed on the Secondary Board of the CSE in violation of the guideline that investments should be made only on ‘blue chips’ has resulted in a loss of Rs 2.7 billion or 22.5 per cent of the total loss, he said.