“I didn’t go inside Public Debt Dept.”, says CB Governor
Under-fire Central Bank (CB) Governor Arjuna Mahendran on Friday strongly denied references in the report of a parliamentary committee that he had been at the Public Debt Department when bids of a controversial Treasury Bonds were being perused.
The report by the Committee on Public Enterprises (COPE) had said that the Governor had visited this department on two occasions on February 27 where the auction in question had taken place
“I was not in the department. I was in the ‘corridor’ of the Public Debt Department asking her (Ms. C.M.D.N.K. Seneviratne, Superintendent of Public Debt Department) about how much more money we need to raise,” he told reporters at a hurriedly-called media briefing at the CB office in Fort.
While journalists were informed of the Governor’s 2.30 pm briefing only on Friday morning, COPE Chairman D.E.W. Gunasekera told reporters at a 10.30 am briefing – which he had informed media the previous day – that their report showed that there were at least three other (better) options by which the CB could have raised funds rather than resort to the 30-year bonds.
Journalists attending the Governor’s briefing – his first since being appointed in January – were first provided a slide presentation by Assistant Governor Mahinda Siriwardene on Sri Lanka’s half-year performance which gave a positive look of the economy, before journalists bombarded the Governor with questions on the flawed bond issue.
Economists, analysing the two briefings and the decision to call them, said that both statements appeared to be targeted at scoring pre-election points (Mr. Mahendran on a positive economy and Mr. Gunasekera on a flawed bond issued involving a United National Party-nominated professional).
Mr. Mahendran said that he had discussions with the Public Debt Superintendent on the situation and that the department could ‘always reject my offer’ He added that he had suggested that they should raise Rs 10 billion from the auction and noted that COPE didn’t have enough time to examine all the issues involved.
But Mr. Gunasekera meeting journalists earlier in the day – without any aides or members of his committee at the Sri Lanka Foundation – said the 13-member committee had prepared a 447-page report within a month after recording statements of 42 witnesses.
Seated in front of a banner which proclaimed “COPE Report to People’s Court”, he said the President has constitutional authority to take action on the report, even though the sudden dissolution of parliament stalled the presentation of the completed report.
He said the full report is now with the Secretary General of Parliament.
He said it was the responsibility of the new government to accord first priority to the COPE report after the general election.
People should demand that the new government debate the COPE report in parliament and take necessary action, he said, adding that he had decided to address the ‘Fourth Estate’ to bring this matter before the ‘People’s Court’ because parliament was inoperative.
Mr. Gunasekera pointed out that there were at least three options that could have been followed by the Central Bank to raise money to fund urgent needs of the government rather than resorting to the 30-year Treasury bond issue on February 27 auction which had initially sought to raise just Rs. 1 billion.
The committee had received the expert advice of retired Deputy Governor of the Central Bank W.A. Wijewardena.The Gunasekera committee is the first time in Sri Lanka’s Parliamentary history that a special committee comprising members of COPE has been tasked with investigating a specific allegation against a senior state official.
It commenced the probe on May 26 and completed the investigation report on June 25, handed over the report to the Secretary General of Parliament on the morning of June 26 (Friday) with a request that it be listed in the next order paper.
But by Friday evening, the President issued the gazette notification dissolving the legislature. On the economic front, the Governor said that a growth of 7 per cent is attainable with an expansion of 6.4 per cent in the first quarter of this year. “The second-half growth is expected to be higher with fast recovery in the construction sector kicking in,” he added.
Entrance ticket …
would be purchasing tickets sold with one day validity only and at the entrance to the sites, officials at the CCF explained.
However, some travel industry persons from Sri Lanka Association of Inbound Tour Operators (SLAITO) had approached the fund saying that they found it cumbersome to purchase it at the site due to the delays.
The CCF noted this was natural as any new programme would have delays and this method would be continued since it would continue to bring in the revenue to the state, which was considerably lost previously due to the fraudulent manner in repeatedly selling the 14 day valid tickets from Colombo.