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Mahendran hits back

7 February 2017 10:18 pm - 27     - {{hitsCtrl.values.hits}}

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Former Central Bank Governor Arjuna Mahendran said a group of disgruntled Central Bank employees closely allied with a former Governor lobbied for his removal because he cancelled all the tamashas and excessive foreign travel enjoyed by a few of his select cronies.

“During my period as Governor, I cancelled all the tamashas and excessive foreign travel enjoyed by a few select cronies of a former Governor. This is why these persons lobbied for my removal. They have effectively scuttled investigations into their shady practices from the past. These include buying Gold at very high prices, buying highly risky Greek bonds, advising the government to undertake a highly risky hedging strategy for petroleum imports and incurring huge losses for the Central Bank for three consecutive years by undertaking dubious foreign bank borrowings guaranteed by the Central bank,” he said in a statement to the Daily Mirror yesterday. Following is the full statement sent to the Daily Mirror:

"A news item has appeared in the edition of your newspaper dated 6 Feb 2017 which carries the statements of various interested parties alleging various unsubstantiated issues against me.

These statements are libellous in the extreme. They are based on extremely dubious and unverified sources. Nor has anyone in your newspaper approached me to find out my version of the story.

The allegation that an internal audit report from the Central Bank of Sri Lanka has made comments that are unfavourable has never been brought to my attention. Such audit reports cannot be finalised until the accused party is given a fair hearing for his or her explanation of events. This is standard procedure in any government or private institution. Hence your story has no basis in fact.

It has been stated by the Hon Minister of Finance that a group of disgruntled employees in the Central Bank of Sri Lanka who were closely allied with a former Governor are attempting to bring the current government’s policies into disrepute. This news item is an example of such activity. We have seen several previous instances in the past two years where confidential reports of the Central Bank have been disseminated to the press and social media to discredit the current government.

It is clear that these disgruntled staff of the Central bank are trying to deflect attention away from their own wrong-doings of the past. The doctoring of GDP data, the expenditure of vast amounts of money on futile international media campaigns, the loss of over Rs.6 billion of state funds that were handed over by these same Central Bank officials to a now-bankrupt primary dealer are issues that these unscrupulous officials are attempting to hide.

During my period as Governor I cancelled all the tamashas and excessive foreign travel enjoyed by a few select cronies of a former Governor. This is why these persons lobbied for my removal. They have effectively scuttled investigations into their shady practices from the past. These include buying Gold at very high prices, buying highly risky Greek bonds, advising the government to undertake a highly risky hedging strategy for petroleum imports and incurring huge losses for the Central bank for 3 consecutive years by undertaking dubious foreign bank borrowings guaranteed by the Central bank.

The officials responsible for all these actions which resulted in several billions of dollars of losses to the country are still in very senior positions in the Central bank.

If the Central Bank rules and procedures were subverted in any way as a consequence of my actions, there are ample fora to seek remedial action. His Excellency the President has set up a Commission of Inquiry with a broad mandate to investigate such matters. It is therefore highly unbecoming of your newspaper to take it upon itself to give vent to rumour-mongers and others whose ulterior motive is to bring disrepute to my erstwhile superiors, the Honourable Prime Minister and the Honourable Minister of Finance, by attacking my conduct and pre-judging the outcome of the deliberations of the Commission of Inquiry.

For the record, all expenses incurred by me while serving as Governor of the Central Bank were made according to proper procedures and audited by the Auditor General’s department.

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  Comments - 27

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  • Kali Wednesday, 08 February 2017 02:10 PM

    Actually he clearly states that the accusations are false and his real expenses were audited by AG

    PMS Wednesday, 08 February 2017 09:36 AM

    My question is how these trillions of money survived during the Cabral - Rajapakse era, if it is this easy for a Governor to rob single handed.

    Daham Wednesday, 08 February 2017 10:14 AM

    Who has given him freedom to talk like this?

    Ranjith Wednesday, 08 February 2017 10:32 AM

    It is not Rajapaksa's time now. He is free to tell his side of things.

    Dhanu Wednesday, 08 February 2017 11:02 AM

    The pot calling the kettle black!

    Namal Wednesday, 08 February 2017 11:08 AM

    That is a right of any human(freedom of speech).

    Ranger Thomas Wednesday, 08 February 2017 11:13 AM

    This is Democratic Country, dummy. He has the right to say what he wants.

    Ranger Thomas Wednesday, 08 February 2017 11:23 AM

    Mr. Mahendra, where have you been all this time to say what you have to say. There are 100 rifles pointed at you this moment. Too late to confess but not too late to wash dirty linen of the CB. However, it does not explain the colossal amount of presumed lost to the CB.

    Bobby Pereira Wednesday, 08 February 2017 04:06 AM

    You might have stopped other people's excesses so that you and your buddy Ranil could rob the bank to the hilt. I can't believe that you are still a free man thanks to Ranil and vahupalanaya. You should be rotting in jail.

    Ravi Wednesday, 08 February 2017 05:08 AM

    Any explanation about the bond story?

    shanthapriya Wednesday, 08 February 2017 11:55 AM

    if they can steal why cant I myself

    lion Wednesday, 08 February 2017 06:27 AM

    Well done we can see who is telling the truth at the investigation. Millions of funds spent un necessary during the period of Nevard Cabral too has to be fully probed.

    Kadiya Wednesday, 08 February 2017 06:45 AM

    Depanco mekata uththara!!!

    mohamed Hashim Wednesday, 08 February 2017 06:56 AM

    If the Former Governor has involved in malpractice there are standard procedures to be adopted instead of mud slinging.Let the first person who has not sinned cast the first stone via DM Android App

    Mahendran Hora Wednesday, 08 February 2017 07:01 AM

    Baba! As if you haven't spend lavishly. Why do ypu think people have forgotten how you enjoyed during your foreign trips?

    crooks ar CB Wednesday, 08 February 2017 07:15 AM

    We PEOPLE agreed. Govt should investigate for say 3 or 4 years period by lome lenered chartered accountants and lawers who are not alligned ti Nivard Cabral (sorry ajith )

    dulan Wednesday, 08 February 2017 07:51 AM

    Did he not say await the findings of the Presidential committee?

    SL Wednesday, 08 February 2017 08:05 AM

    God knows who is correct,one thing is very sure.All of this bunch are white collar criminals safeguarded by another top brass criminals.God bless Lanka !

    Leo Wednesday, 08 February 2017 08:06 AM

    If you are innocent why so long to make a statement via DM Android App

    Flanker Wednesday, 08 February 2017 08:24 AM

    Don't blame others to cover your sins, there was never a scam as huge as the bond scam in the history of the CB for which you are responsible. Do not try to fool us the citizens for we do not believe you nor anyone else any longer!!!

    STRIKES Wednesday, 08 February 2017 08:27 AM

    EMPIRE STRIKES BACK !

    Sunil Wednesday, 08 February 2017 08:29 AM

    This comment sums up everything so nicely.

    ralahamy Wednesday, 08 February 2017 08:37 AM

    At last Sril Lankans can get a chance to know the fairy tale of Nivard Cabraal and his sister at Perpetual.

    Ravi Wednesday, 08 February 2017 08:40 AM

    Cabral also robbed the bank and a disgraceful Accountant to the profession.

    Sri Lanakan Wednesday, 08 February 2017 08:45 AM

    Don't tell lies to the people of this country, You should be in a jail

    TONY Wednesday, 08 February 2017 08:46 AM

    YOU HAVE NOT EXPLAINED ON CHARGES THAT YOU WERE LAVISH IN SPENDING FOR YOURSELF FROM GOVT FUNDS, BUT TALK ABOUT WHAT OTHERS DID

    Sid Wednesday, 08 February 2017 08:47 AM

    It took him so long to give a statement.This is because his henchmen and him took time to study the situation and found loopholes to fool the public even more.This has to be stopped!Spending two million on a suits out of public money when infact people can't afford to eat or sleep under a roof.And he has the audacity to blame another person! Hes a criminal and should be treated like one.but he knows for a fact that he's got unlimited get out jail free cards for the next 3 years.


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