- PTL/Aloysious’ made on average Rs 30 Million PER DAY while Mahendran – father in-law – was Governor
- Allegation that relatives connected to Commission work in ‘High places’
- Silence on Rs 6 Billion PTL profit made in last 3 months of Mahendran ‘service’
By Faraz Shauketaly
January 9th 2015. Sri Lanka’s voters chose a rank outsider over the incumbent Mahinda Rajapaksa as President. The unlikely victory saw a former Cabinet Minister and Secretary General of the Rajapaksa-led Sri Lanka Freedom Party, Maithripala Sirisena ascend the Presidency. The victory was more poignant because Rajapaksa had consistently over looked Sirisena for the position of Prime Minister in spite of his long and loyal service to the party.
The first item on the agenda was for Sirisena to take oath which he did pretty quickly and with very little fanfare and cost. The next was to appoint a Prime Minister. In keeping with the deal that had been struck earlier when 47 disparate and perhaps desperate groups banded together united only by a single cause: an attempt to bring back ‘good governance’, Sirisena chose the leader of his coalition partners Ranil Wickremesinghe for the plum post.
There followed various positions of a ministerial nature and when it came to choosing Ministers it became clear that the President and his Prime Minister had decided that the UNP would administer the nation whilst the President would generally oversee matters. For a man who had been a Minister not involved in economic matters, it was an arrangement Sirisena was happy to tag along with – as the projection made was that the UNP were the economic gurus or the master blasters. That perception may have been created and rings true in any event, when talking of President Jayawardena and his laissez faire economic policies. Talk of RW and his band of boys and you are definitely speaking a rather different language.
On the 26th of February 2015 the rot had started. Ministers Kabeer Hashim, Ravi Karunanayake and the Chairman of the party Malik Samarawickrema made their way to the Central Bank and had a meeting with Arjuna Mahendran the now disgraced Governor of the Central Bank – plus officials from units falling within the purview of the Ministry of Highways.
They discussed that there was a need for Rs 18 Billion to pay contractors at the Road Development Agency RDA. They acknowledged that Rs 3 billion was in the kitty but required Rs 15 billion. They maintain under oath as well that there was no discussion as to how this money was to be raised. Supporters of Kabeer Hashim maintain that the Minister has all the required documentation from the RDA in support of his testimony.
Malik Samarawickrema for his part has confirmed that he was present as an advisor to the Prime Minister. He may as well have said anything. Quite why the Prime Minister needed Malik Samarawickrama at this meeting is beyond the scope of understanding of many a liberal thinker. After all the Prime Minister as the subject minister for the central bank had hundreds of professional central bankers he could have called upon to advise him on this matter – he could have done better had he done so instead of relying on persons well known for their acumen in making profits out of garment exports and running successful sporting teams. We must acknowledge that Malik Samarawickrama also possesses a background in accounting. Even that feat cannot be rationale enough for Malik Sam to be there at the Central Bank. Even now, there are persons who question why Malik Samarawickrama even recently spent two consecutive days at the Central Bank during which time a statement was put out by the Governor in connection with Perpetual Treasuries et al.
Was Malik Samarawickrama there to assist Dr Coomaraswamy? Perhaps with the Sinhala translations. Dr Indrajit is rather capable of taking care of himself and would resent the insinuation that he is infirm when it came to standing on his own two feet.
Arjuna Mahendran was completely out of order: He produced a letter notable for at least four items.
One was the letter was undated. (It was on Ministry of Finance notepaper/letterhead)
Secondly the letter had NO file reference which makes it highly probable that the letter did not come out via the usual channels.
Thirdly the letter as the Commissioners themselves noted appeared fresh and crisp. Purportedly issued “around” the time of the first bond in February 2015. I a
Arjuna Mahendran said that was because he safeguarded the letter and that it was kept in a safe in an air conditioned environment. Presumably at home. What were state documentation doing at the residence and safe deposit box of the FORMER Governor? It drives home the point that the upper echelons of the power holders acted with almost intimate knowledge that they would be safeguarded and protected by the Establishment. Which in any event is precisely what they received:
The Prime Minister no less a person saying there was no evidence of wrongdoing. It is only under the Sharia law that to obtain a conviction for adultery one needs two independent witnesses to the entire proceedings.
However whilst all the above is what has transpired and with due respect to the supporters of Kabeer Hashim who can’t imagine their ‘man’ dipping his fingers into any kind of till, the fact remains that we must give respect and credence to the testimony of Mr Attygalla, the deputy Secretary Treasury. They had enough of funds”
Mr Attygalla told the Commission under oath, that there was no such requirement needed from the Central Bank! After all we must note that it is the Deputy Secretary Treasury who liaises with the Central Bank when the government is in need of money.
This is an important point to keep in mind: that it is not the Central Bank who decides on the amounts required by government but rather the Treasury.
There was no need for such an unprecedented meeting and discussions by these Ministers. All they had to do was to follow established procedure.
The Prime Minister in his statement in parliament agreed that he asked these Ministers to have a meeting and discuss funding requirements. Although according to what appears above there was no need for the PM to get involved
In Parliament on the 17th of March 2015 – nine days after NewsFirst broke the story on National television after the Sunday Times wrote about it – the Prime Minister confirmed that it was he who insisted on the change of the method in issuing bonds. He said that primary dealers claimed there was a lot of corruption in the past. Here is what the PM actually said,
“I INSISTED ON A PUBLIC AUCTION BECAUSE PRIVATE PLACEMENTS HAVE LED TO CORRUPTION AND LACK OF TRANSPARENCY”
The Commission report says that there is no evidence of Mahendran being given instructions by the PM to act unilaterally or to change the system immediately.
We beg to pose the question as to the definition of the word “INSISTED”. We felt that the public may well believe the Oxford dictionary and also the Sinhala the Malalasekere dictionary would be acceptable.
According to the Oxford dictionary ‘insisted’ is usually without refusal.
It makes it plain therefore that the leaving out of this important statement uttered by the PM in parliament is an inexcusable lapse from a team that have been extremely proactive in extracting a grave amount of data, many of which came via cross examination of the witnesses.
The Prime Minister had benefitted from the Commissioners giving him the soft touch because his diary is ever so busy. We aver that although the law and procedure permits questions to be sent out as it indeed was in the form of a questionnaire and that the answers were in the form of an affidavit, it would have been far better in terms of transparency and openness if the Prime Minister subjected himself to the Commissioners in person.
Now that would have been democratic and would have rejuvenated the country’s collectively tired senses.
Instead we know that the PM is presenting his appearance at the Commission as evidence of his democratisation but the country at large is aware that this was not his first but second time before a special commission. The last time he did was before the Batalanda Commission. He was Leaderof the Opposition then.
During that inquiry DIG Douggie Peiris in essence saved the day for the UNP leader. He did not disclose details of what he now says will end up in a book. Yet the PM has abandoned this man, who ekes out a living thanks to the largesse of friends and friends. Douggie Peiris’ story is mentioned here only to prove my point that the PM is a grave disappointment.
Details are starting to emerge that Perpetual Treasuries the Aloysious connected company has made a profit of around Rs 6 billion from the bond of 31st March 2016. The Commissioners say they have no evidence of wrong doing in that bond.
Our contention is perhaps they ought to have commented on the fact that clearly PTL had the money to buy that bond from the unusual profits they amassed in earlier bonds. Every bit of money they made since February 2015 must be deemed to be tainted by corruption and the use of sensitive and privileged information which according to the Commissioners themselves, was provided by Arjuna Mahendran. All profits made by using information gained and gleaned for profit must be sequestered, a separate fine must be imposed and if the penal code so provides, they must all be jailed forthwith. That includes persons however high or low or upper middle they may well enjoy as their station in life, they must all be sent to jail if they have been involved in any form of cover up, favouritism, patronage, misplaced respect – whatever. When it comes to the peoples’ monies they must and they cannot be any form of mitigating causes.
Arjuna Mahendran served approximately 538 days as the Governor of the Central Bank – Perpetual Treasuries amassed profits of around Rs 32,000,000 (Thirty two million) per day. That’s right – per day. Not bad for a spot of sensitive information.
The mere removal of Ravi Karunanayake and the symbolic hanging of Ravi K will not suffice. It is the Prime Minister who is the disappointment. It is he who has led the side. It is he who must go.
