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Central Bank bond scam was a shock to us all

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17 January 2018 12:10 am - 0     - {{hitsCtrl.values.hits}}

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In an interview with Daily Mirror, Health Minister Dr. Rajitha Senaratne expressed his views on the bond scam, the President’s term and the way forward for the government. Excerpts:


  • We came to root out corruption in all its manifestations
  • I asked right at the beginning not to appoint Arjun Mahendran as CB Governor 
  • I know his negative track records 
  • PM agreed to remove if there were any wrongdoing
  • By the time of his removal, Govt. was bogged down in a quagmire
  • There are no financial experts in Sri Lanka to evaluate the economic loss of this transaction 

Q President Maithripala Sirisena sought to stay in power for six years. What is the way forward for the government in the wake of the Supreme Court’s opinion that the President can serve only up to five years? 
Some lawyers told the President that the 19th Amendment did not have retrospective effect. We formulated this piece of legislation in 2015 taking into consideration all these aspects. I do not know why the lawyers could not see it. It was made clear that the 19th Amendment had retrospective effect. Therefore, the term is confined to five years. 

Nevertheless, the President had ambiguity. If he were to relinquish office after five years, he will have to accomplish the planned tasks by next year. If it were a six-year term, he will have one more year to attend to these. He wanted to have clarity in advance rather than to wait for the eleventh hour so that he could pre-plan his work. He followed the proper constitutional procedure in making a reference to the Supreme Court in this regard. 

Q The UNP, which is the main ally of the government, raised concerns over the President’s move. How will it affect the future of the government? 
It is absolutely unwarranted for anyone to panic over such a move. If the President sought to increase his term from five years to six, it would have been serious. He only asked how long his term spanned. It is only the Supreme Court that can give its opinion. Why should one get alarmed when the law of the country is followed by another? 

Q It is clear that the relationship between the President and UNP has been strained over the appointment of the Presidential Commission to probe the Central Bank bond scam. What is the way forward for the government now? 
I am not aware of any such relationship being strained with the UNP. Be that as it may, I know for a fact that the understanding between President Maithripala Sirisena and Prime Minister Ranil Wickremesinghe is still intact. 

Whenever there is any difference in opinion, the Prime Minister asks me to contact the President to secure his consent and vise versa. Other than that, the two leaders always sit together and discuss matters. Before every Cabinet meeting, they meet for a while. The other MPs are not aware of this understanding because both leaders are non-committal. 

Q The President took steps to revoke the Gazette notification that sought to remove the ban on liquor sales for women and to extend the time for liquor sales. How does it happen if there were a proper understanding between the two leaders in common decision-making? 
If the President did not revoke the Gazette, then it would be the problem. I too stood for revoking it. I asked him to annul it. The President contacted me immediately after the Gazette notification was released. One should bear in mind that this is Sri Lanka. This is not the United States or England. We do not want to make Sri Lanka such a country. We do not want to live in such a country. That is the reason why we live here. We have our civilized culture that is unique from those countries. 

None knew liquor sales for women were banned in Sri  Lanka before this Gazette note. We knew it only after it was announced. This is inviting unnecessary problems. We came to power with the promise of creating an alcohol-free country. As the Health Minister, I have the greatest role to play. In the world, 70 per cent of deaths are caused by non-communicable diseases. It is the same in Sri  Lanka. In 2017, some 138,000 people died of such diseases. We have achieved a lot in curbing the spread of communicable diseases. 

Smoking and consuming alcohol are the main reasons for non-communicable diseases. Lack of physical exercise is yet another matter. The World Health Organisation (WHO) invited me to its main session after recognising the initiatives taken by me to eradicate such diseases in 2017. Today, smoking has dropped by 16 per cent due to high taxation. 

Our approach is used as a model for the entire world today. The world credits the President and me for it. When taxation on tobacco products was increased, some ministers argued against it in the Cabinet. They said the industry would collapse. 

Q Anyway, won’t the President’s cancellation of a Gazette issued by another minister lead to resentment within the government? 
The President has the power. He contacted Finance Minister Mangala Samaraweera who is abroad. 

Q You said the President and Prime Minister are in great understanding with each other. Yet, the UNP backbenchers are harsh on the President. How does it happen then? 
Even the members of the Sri Lanka Freedom Party (SLFP) do the same to the other side. Actually, the SLFP started it. This is retaliation for what they initiated. Some SLFP members are having double standards. They remain with the government, but are critical of it. They do not mind whether this government survives or not. People are scornful of these MPs who spurn the government while enjoying its benefits. If they are critical of the government, they should leave it. 

Q If the President and Prime Minister are in good terms, they can simply ask their members to keep their mouths shut. Why doesn’t it happen? 
There was a time like that. The Prime Minister asked UNP MPs not to be provoked by criticism from the other side. Yet, they questioned the Prime Minister at the parliamentary group meetings. He asked the Prime Minister to engage the President in this regard. They said they were not ready to remain quiet in the face of mounting verbal attacks from the other side. 

If it is countered, things will take a turn for the worse. Both sides should stop it. This is a national government. Two forces that harboured enmity and bitterness have been brought under one umbrella. What is impossible has been achieved. Total reconciliation is impossible overnight. 

It is a dream for some that this government has been elected. Some electoral organisers became MPs and MPs became ministers overnight. We made a huge compromise in defecting from the previous government. We risked it. What we aspire is not what these MPs want. Those who sacrificed a lot for the formation of this government conduct themselves properly. They know how arduous it was for them. 

The UNP and SLFP alone did not form this government. There were a lot of apolitical forces that were at work. In fact, they wrote the manifesto. It is not the UNPers or SLFPers who did it. There were university academics, youth, women representatives, Bhikkhus and others involved in it. 

Q Along with the President, you were the first to defect from the previous government. The main allegation against the former regime is fraud and corruption. You came to power with the promise of rooting out corruption. What did you feel when you learnt about the Central Bank bond scam? 
This is the only allegation to be made against our government. We have taken action against that as well. We are not confronted with hundreds of allegations, unlike the former rule. 

At that time, even a person who murdered one man and raped his girlfriend was at large. The Prime Minister referred the COPE report to the Attorney General. He took steps to appoint someone from the JVP to the COPE. On the other hand, the President appointed a commission to evaluate the loss to the national economic. There are no financial experts in Sri  Lanka who can do it. 

What is important is not who paid whose rental and who phone called whom. It is important to estimate the economic loss of this transaction and to work out modalities to recover it. I asked for it. 

The commission should have brought foreign financial experts. The commission says there has been a loss of Rs.11 billion. Yet, we have frozen financial assets worth Rs.12 billion of Perpetual Treasuries Ltd. It means the amount frozen is one billion higher than the amount lost. 

This commission says Rs.4,000 billion was lost in the past. Another commission has to be appointed to look into it. 

Q There are reports that you have been assigned to whitewash the UNP. Is it true? 
No. I studied this in my own. Nobody has given me any assignment to clear the name of the UNP. 

Q How did you feel when you heard about this financial crime? 
It is a major problem for us. It is a shock because we came to power on the plank of eliminating all forms of fraud and corruption. I objected the appointment of Arjun Mahendran as the Governor at the very beginning. 

I pointed out his negative track records when he was in the Board of Investment. He was with me in Jathika Sevaka Sangamaya at that time. I asked what would happen if a person like this were appointed as the Central Bank Governor. The Prime Minister said, “This is my ministry. Let me handle it!”  

Besides, the Prime Minister said he would sack Mahendran if found guilty of any offence. When he was removed, it was too late and the entire government was bogged down in a quagmire. 

Q There is a huge gap between the first fraud and the second. Why didn’t you take action when the first fraud took place? 
That is why the Prime Minister said Mahendran misled him. The premier made inquiries about this. There is one thing. Mahendran is a qualified person. The Prime Minister would have trusted an internationally qualified person. That is where the fault is. 

Q There are media reports that a new Prime Minister will be appointed after the election on February 10. What is your view? 
It is fiction. 

Q Do you think the incumbent Prime Minister should serve in office further? 
What matters is not what I believe. He is the one chosen by the people of this country. We have parliamentary democracy. We cannot make ad hoc decisions. The Prime Minister made a huge sacrifice to form the government. I know it as the person who was involved in preliminary talks. 

Initially, he wanted to contest the Presidential election. In fact, he asked me to become the common candidate. I insisted that someone who could get a chunk of Sinhala-Buddhist votes should be fielded. I proposed Speaker Karu Jayasuriya for it. The Prime Minister asked me not to propose anyone from his party. 

Then, I asked for 24 hours to find another candidate. I informed President Sirisena at that time. Then, the President sought some more time to consult his family members to decide on the offer. 


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