The Central Bank (CB) on Friday refuted all claims of impropriety on the conduct of the Governor and other CB officials regarding the oil hedging agreements. A CB press release said its attention has been drawn to recent media reports which claimed the government was trying to protect certain officials including the Governor which the Bank feels was said to tarnish the image and credibility of the institution. Earlier this week, Minister of Petroleum and Petroleum Resources Mr. A.H.M. Fowzie said the Governor was responsible for pushing the hedging agreements the Ceylon Petroleum Corporation (CPC) entered into.
However, the CB said that once the Cabinet has approved the concept of hedging and permitted the CPC to commence operations, the role of the CB in this exercise which it initiated as the economic advisor to the government, was complete. In this context, the CB noted that it regularly provides policy advice to the government and government institutions. Upon the acceptance or otherwise of such policy advice, the responsibility of either implementing or not implementing such proposals, lies entirely with the implementing agency. The CB further stated that it would be clear that the Governor and other CB officials have carried out their duties and responsibilities in a prudent and professional manner, in complete contrast to the allegations and insinuations made.
After the recent developments in relation to hedging were known, the CB stated it has already taken several steps in the effective fulfillment of its role as the regulator of the commercial banks by commencing examinations into the banks' roles in hedging transactions in early November 2008, well before any petition or plaint had been filed in Courts. Nevertheless, at present, since hedging related issues are the subject matter of judicial proceedings before the Supreme Court, the CB would refrain from making any comments in relation to its current investigations. |
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