Monetary Board verdict on bond scam soon

2 November 2016 11:08 am - 14     - {{hitsCtrl.values.hits}}

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The Monetary Board is soon expected to come up with its verdict on the alleged treasury bond scam based on an on-site report prepared by the Central Bank officials, which is now being deliberated by the Monetary Board.

To this end the, Monetary Board on Monday for the first time began to study the on-site examination report on Perpetual Treasuries Limited and it will meet on Friday for the second time for the week to further deliberate the report, said the Central Bank Governor, Indrajit Coomaraswamy.  

“That report was presented to the Monetary Board yesterday and (we) had a discussion on that report.
It (report) has requested the various departments of the Central Bank to undertake more work in specific areas to enable the Monetary Board to take an informed decision (and) as to what the Monetary Board should do in relation to the finding of the on-site report.

The board will have another meeting on Friday to discuss this further,” Dr. Coomaraswamy told a press briefing yesterday.  The Central Bank is expected to issue a statement once the Monetary Board decides on the future course of action related to the on-site report.

The country’s financial market was stunned by the findings of a leaked draft report on the activities of the primary dealer in question—Perpetual Treasuries—by the Central Bank, where it was stated that Perpetual Treasuries made a Rs.5 billion profit in just two months trading in government securities.

The Central Bank later acknowledged the ownership of the report.

Before that, the published accounts of Perpetual Treasuries showed the primary dealer raking in a profit of Rs.5.1 billion for the financial year 2015/16 against Rs.960 million in the previous year, much higher than the profits earned by a mid-sized commercial bank in the country.

Last week, the Committee on Public Enterprises (COPE) presented its findings on the alleged bond scam and said that former Central Bank Governor, Arjuna Mahendran, who is the father-in-law of the ultimate owner of Perpetual Treasuries, was directly responsible for the scam and recommended legal action against him.

According to Dr. Coomaraswamy, the Central Bank’s probe on the alleged bond scandal would continue independently, but they would study the COPE report as well as the initial findings made by the three-member committee appointed by the Prime Minister last year to look into the matter.

“My understanding of the Monetary Board is that they want to follow the evidence as they come out in an objective way,” he stressed.

When the Monetary Board meets on Friday it will evaluate the powers vested with the Central Bank as to what actions could be taken by them on the findings of the on-site report.

Meanwhile, in another development, the Central Bank has also set up an enforcement division with the objective of bringing the wrongdoers to book more persistently.   

“We want to aggressively prosecute the wrongdoing. Perhaps the Central Bank could have done a bit more on that front. So we really want to change the whole culture there,” the Governor explained.

The newly setup enforcement division will also resolve some of the outstanding issues.  

“We want to be more persistent and concerted in our efforts to prosecute wrongdoing,” he added.

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  Comments - 14

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  • dd Wednesday, 02 November 2016 03:26 PM

    all current eye wash via DM Android App

    kapila Wednesday, 02 November 2016 04:02 PM

    Now the central Bank has wake up via DM Android App

    Tissa Wednesday, 02 November 2016 05:39 PM

    just tell us how long this type of things happening in the CVthis cannot be the first and not then the lastwHy dont cancelled all the P d s and do business with recognise banks. and EPF and ETf etc via DM Android App

    BuffaloaCitizen Wednesday, 02 November 2016 11:17 AM

    While it is true that a scam has taken place on this issue and the CB is working overtime on this. However why is the CB so lethargic to issues where they have directly gone to sleep or perhaps even bribed by bankrupt financial companies such as CIFL where poor old citizens money has been embezzled.

    Ramsay Wednesday, 02 November 2016 11:32 AM

    I'm sure monetary board verdict will be those involved in this mega scam including PM exonerated

    Jagath Leanage Wednesday, 02 November 2016 11:36 AM

    We cant expect impartial inquiry from monetary board since it was appointed by P.M.

    Bingo Wednesday, 02 November 2016 11:56 AM

    If this happens in 1st world both PM and Gov will be jailed for at least 10 years and money will be recovered. I do not see SL becoming at least 2nd world during my life time. Sad but the truth.

    Sanjaya Wednesday, 02 November 2016 12:23 PM

    Now there will be two reports that will have different opinions about who is at fault. This will then dilute the findings of COPE and finally no one will be held accountable except the poor population of Sri Lanka. Way to go Yahapalanaya! Well done. This scam has caused more loss to the economy than the total cost of all scams in the past including the sale of Sathosa.

    siripala Wednesday, 02 November 2016 12:56 PM

    LOL. You mean under some kind of a barbarian country? Jail someone without prosecuting?

    Citizen Wednesday, 02 November 2016 01:44 PM

    Trying to close the door after the horse has bolted?

    Nihal Amarasekera Wednesday, 02 November 2016 01:52 PM

    The problem was all were hand in glove. Wrongdoers galore.

    Premalal Wednesday, 02 November 2016 02:00 PM

    The whole country is holding its breath.

    Palle Wednesday, 02 November 2016 09:14 PM

    First of all suspend the chief crook with immediate effect.

    ala Wednesday, 02 November 2016 02:30 PM

    The Monetary Board is directly implicated in the bond scam because of its negligence. What verdict can they give? Will they acknowledge that it was turning a blind eye on Central Bank affairs where white collar criminals robbed public money?


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