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Frauds seem to be continuing – Harsha de Silva

08 Mar 2015 - {{hitsCtrl.values.hits}}

Against the backdrop of the controversial bond issue, deputy Economic Affairs and Policy Planning Minister, Harsha de Silva said frauds in the stock exchange and the bond market seemed to be continuing.

He said he had spoken out against such manipulations and violations during the previous regime, but it had ignored his complaints.

Dr. de Silva said his ministry would investigate the bond issue.

The conversation continued as follows:

Reporter: Can you describe how you will investigate the controversial bond issue --- be it by the Central Bank itself or a third party?

Minister: We have decided to investigate. We are yet to appoint a person or persons to carry out investigations. We have decided to do it in the coming days.

Reporter: Can you let us know whether the Central Bank is carrying out any investigation on the primary dealer Perpetual Treasuries?

Minister: There are a number of primary dealers and stock brokers manipulating and violating the law. In the past, I, as an opposition MP, raised this matter on multiple occasions. The previous government did not give any hearing to me about these frauds both in the bond market as well as in the stock exchange. It seems that these frauds continue just as if nothing has happened.

Reporter: What is your response to the allegation that there was a conflict of interest in the involvement of the Central Bank Governor in the bond issue?

Minister: That is a matter to be discussed. The resignation of Arjuna Aloysius from the Director Board of Perpetual Treasuries is sufficient. We must have a fresh look at the conflict of interest – real and perceived. In the financial market, even a perceived conflict of interest matters. The two are correlated.

Reporter: Why was a higher offer accepted without informing other dealers that they wanted bids for higher amounts?

Minister: that is not the case. Thirty odd separate bids were received for a total sum of Rs.20 billion -- ranging from Rs.8 million to Rs.5 billion and ranging from nine percent to over Rs.13 percent. In the end Rs.10 billion was taken in at the lowest rate of 9.3 percent and the highest rate of 12.5 percent. (Kelum Bandara)

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Frauds seem to be continuing – Harsha de Silva

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