Time to reopen bond scam case, punish wrongdoers - Cabraal | Daily News


 

Time to reopen bond scam case, punish wrongdoers - Cabraal

Senior Economic Adviser to the Prime Minister, Ajith Nivard Cabraal presenting a copy of ‘The great bond scam cover-up’ to former Deputy Governor of the Central Bank Dr. W.A. Wijewardena at Ramada on Friday.
Senior Economic Adviser to the Prime Minister, Ajith Nivard Cabraal presenting a copy of ‘The great bond scam cover-up’ to former Deputy Governor of the Central Bank Dr. W.A. Wijewardena at Ramada on Friday.

The Forensic audit carried out by the Central Bank on the infamous bond scam cannot be accepted as it is a mere eye wash, said former Governor Central Bank (CBSL) and Senior Economic Adviser to the Prime Minister, Ajith Nivard Cabraal said.

He was speaking at the launch of his book, ‘The great bond scam cover-up’ at Hotel Ramada last Friday (4).

Cabraal said that some of the Central Bank officials were involved in the Bond scam and the Forensic audit prepared by them cannot be accepted. “Obviously there will be a major cover up.”

He said that he will push for a new investigation where politicians and officials from top to bottom who were responsible for the Bond Scam should be named and shamed. The culprits should be even given prison terms after a through a legal investigation.

“The culprits were well guarded and protected, with a series of public hearings and commissions appointed to keep down the pressure from the public by top VVIPS of the previous government.

He said that the Central Bank Bond scam is a crime against the people of Sri Lanka and now it’s time to reopen this case and punish the wrongdoers and my book describes in detail all the findings.” The former governor said that this Bond Scam happened on February 27, 2015 and caused huge losses to the nation. The bond scam is also regarded as the largest reported financial scam in Sri Lanka despite the country’s reputation of having a solid visionary banking system over the years.

“Hence Sri Lanka has to rebuild its lost international financial prestige and the only way to do is to punish the wrong doers and ensure such things don’t happen again.

On February 27, 2015, then CBSL governor Arjuna Mahendran advertised the sale of Rs. 1 billion in 30 year government bonds at a coupon of 12.5%, despite several accounts erroneously cite an indicative rate of 9.5%.

The sale was oversubscribed with 36 bids totaling Rs. 20 billion. However, a few bidders, including Perpetual Treasuries Limited, wanted interest rates of 11%–12%. The CBSL accepted Rs. 10 billion in bids at rates of 9.5%–12.5%, which meant that the base value of the auction doubled twenty times. Perpetual Treasuries was one of the primary dealers in the sale and is owned by Mahendran’s son-in-law Arjun Aloysius.

The Governor also thanked former MP, Vasudewa Nanayakkara, a former Deputy Governor of the Central Bank Dr. W.A. Wijewardena, former Ceylon Bank Employees Union President and civil society activist Rusiripala Tennakoon, former Chairman of the Securities Exchange Commission of Sri Lanka, Dr. Nalaka Godahewa and two media personalities, for continuing to peruse this incident.

 


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