FORENSIC AUDITS OUT – MP’S CLAIM INCOMPLETE

FORENSIC AUDITS OUT – MP’S CLAIM INCOMPLETE

  • CABRAAL DISMISSES LOSS FIGURES AS INACCURATE
  • MAHENDRAN’S DUPLICITY FURTHER EXPOSED

Sri Lanka’s parliament gave into several calls for the release of the Forensic Audits into the infamous Bond issuance by the Central Bank. The release has caused yet another delaying tactic – as the Central Bank has not sent the parliament the complete document with parliamentarians claiming the missing data was essential for proper evaluation.

At the same time Ajith Nivard Cabraal the former Governor rubbished the findings saying that the stated losses during his years of stewardship was totally wrong.

The former Deputy Governor of the Central Bank Dr W A Wijewardena appeared to agree on a different aspect – to do with the methodology referred to as Direct Placements, stating that this method was not unique to Sri Lanka’s Central Bank but was used elsewhere too.

Ranil Wickremesinghe who is battling for his political future as leader of the UNP had alluded to the Direct Placements claiming that there were instances of fraud in that methodology, disregarding the time tested fact that the CBSL used a system of Weighted Average Yield Rates to directly place urgent requirements of funds from within the list of primary dealers and state owned “captive” audiences.

However the forensic reports whilst alluding to the instances of Direct Placements has failed to address or identify any instances of misuse of the intra day lending facility or the overkill of the facility such as that done during the Mahendran years.

A senior Central Banker speaking exclusively to the Ceylon Independent raised the spectre of the possibility that the particular forensic audit was not truly independent as evidenced according to our anonymous source, by the comparison of the issuance of bonds where the WAYR was higher than the rates at the secondary market level. The source claimed this was a notional point and was impractical.

The Ceylon Independent will carry a full article on the website after exhaustive study is carried out of the forensic reports.