The Presidential Commission appointed to inquire into the bond scam said to have taken place at the Central Bank during the tenure of Arjun Mahendran has learned that Perpetual Treasuries, the company allegedly owned by Mahendran’s son-in-law Arjun Aloysius, has defaulted on a loan amounting to Rs. 11.06 billion.

Central Bank Information Technology Additional Director Wasantha Kumara Alwis told the Commission comprised of Supreme Court Judges Kankanithanthri T. Chitrasiri, Prasanna Sujeewa Jayawardena and former Deputy Auditor General Kandasamy Velupillai that the loan was obtained from the Central Bank loan facility and the EPF Fund.

Alwis further revealed that Perpetual Treasuries had also defaulted on a previous loan of Rs. 360 million, the interest on which would be very high.

Giving evidence before the Presidential Commission, Alwis also acknowledged that Perpetual Treasuries had used the monies borrowed from the Central Bank to purchase Central Bank bonds.