CBSL should vigorously monitor financial companies- Voice Against Corruption | Daily News


CBSL should vigorously monitor financial companies- Voice Against Corruption

President Rajapaksa addressing the CBSL officials
President Rajapaksa addressing the CBSL officials

Some Central Bank officials have taken bribes and other favours from financial companies to create an ‘all clear picture’ in the public, alleged Convener of the Voice Against Corruption, Wasantha Samarasinghe.

He said that it is compulsory for the Central Bank Supervision Unit to monitor and forward a progress report on financial companies every three months. It’s the CBSL that approves the licence of a Finance company hence it’s a responsibility of the CBSL to ensure its smooth function.

The crash of CIFL, ETI, The Finance and other companies did not happen overnight and the CBSL monitoring Unit should have taken precautionary measures to stop the closure of these institutions. “In addition to CBSL officials, some politicians too were involved in covering up the crash of these institutions and they were ‘looked after’ by owners, directors of these defunct finance companies,” he alleged.

Samarasinghe said that some of the corrupt officials involved in EPF, Bond Scam and who are covering up activities of Finance Companies are still in the Central Bank and proper legal investigation should be launched against them.

He said that it is the Central Bank that lays economic guidelines, spells out policy and most importantly monitors banks and financial institutions but sadly this is not happening to the anticipated levels.

He also said that there are no laws to start Micro Finance Companies and hence several villages borrow from unlicensed companies for interest rates going up to 200% and fall into trouble.

President Gotabaya Rajapaksa on Tuesday accused officials of CBSL that they have not put forward a single proposal to rebuild the economy. “Officials who worked at the Central Bank during the scandalous bond scam still hold their positions.”

“It is your responsibility to regularise and monitor finance companies. However, you have failed in your task. Leasing companies too evade their responsibilities. The ETI is not in a position to repay the people. The Finance has closed down without informing. How are we going to pay for that? There is no management there. All at the CBSL are economic specialists drawing very high salaries but not performing.”

“The CBSL has ignored the proposal made to provide Rs. 150 billion to banks by accepting the outstanding due as collateral. The Government will have to take the blame for the economic slowdown due to this serious negligence of duty on the part of CBSL,” the President said.

Meanwhile, Former Governor CBSL and Senior Economic advisor to the Prime Minister, Ajith Nivard Cabraal also endorsed the views expressed by the President and said he strongly objects to the closure of The Finance and other steps could have been taken by the CBSL.

He said that one Assistant Director of CBSL was adamant of closing this institution for a long time. He recalled that in 2008 meaningful steps were taken to prevent the closure of Seylan Bank which too was with the Kotalawela Empire. “Likewise we have to revive The Finance too but I am not sure if this can be done with the negative mindset of some of the CBSL officials.”

Cabraal said that when he was the governor he initiated a ‘Deposit Insurance Fund’ and this is the fund that is now helping to bail out some of  The Finance depositors.

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