Brokers acting as third parties acquire large amounts of money: JVP MP Hadunnetti

Brokers acting as third parties acquire large amounts of money: JVP MP Hadunnetti

Brokers acting as third parties acquire large amounts of money: JVP MP Hadunnetti

Written by Staff Writer

10 May, 2016 | 10:03 pm

Former chairman of the Ceylon Chamber of Commerce, Chandra Jayaratne emphasises that the officials at the Central Bank of Sri Lanka cannot violate the rights of the people by shielding themselves with the Monetary Law Act.

In a letter to the Secretary of the Monetary Board of Sri Lanka, he notes that fraud and corruption must be exposed. Several factions cast their doubts over the Treasury Bond issue in February and March this year.

In a letter to the Secretary of the Monetary Board, dated April 19, the former chairman of the Ceylon Chamber of Commerce requests that details of all bond issues with long-term maturity be made public. However, in response, the Secretary of the Monetary Board informed Chandra Jayaratne that such information cannot be disclosed.

Re-sending a letter to the Secretary of the Monetary Board, Chandra Jayaratne notes that the response position is inconsistent with the commitments towards assuring transparent, good governance. He points out that it is further untenable, unjust, and narrow in
its interpretation of the constitution and the commitments of the government as embedded in the pending Right to Information Bill.

He adds that Monetary Board and the Secretary of the Monetary Board have failed to take cognisance of the matter, in denying the legitimate request for information. Chandra Jayaratne goes on say that not disclosing information means that the people’s right to
information has not been accepted.

He requests the Monetary Board and the Secretary to the Monetary Board to release the information on the March bond issue. A weekend newspaper also reported on this matter.

One billion rupees was expected from the Treasury Bond Issue that took place on February 27 2015, maturing in 30 years.
However, at the auction bid a sum amounting 10.05 million rupees was accepted and it was noted that it was ten times more than the issue rate.

It was also noted that the Superintendent of Public Debt had placed a noted that bid to ten billion rupees were accepted as per the instructions of the Governor of the Central Bank of Sri Lanka. The newspaper also reveals that details pertaining to the bond issue
on the 29th of March including the interest rate and bid have not been made public.

The newspaper also notes that at a time when there is an opportunity to accept bids, so that the interest rates do not rise not, following the proper procedure had led to an issue.

JVP MP, Sunil Handunnetti stated that by engaging in malpractices brokers acting as a third party acquire large amounts of money therefore professionals with proper skills need to take over in order maintain transparency in the process undertaken and ensure the invested money of the public is secured.

Explaining further, he added that no action was taken until now as those who earned profits out of these transactions benefited.
However the innocent people who invested suffered a grave loss as the 10 billion bond scam has reached a loss amounting to around 4000 -5000 billion.

He went on to note that it is not only the Central Bank  that is lagging behind to answer the questions posed over the bond scam, an investigation too has not  been launched to look into the  fraudulent acts that have been committed.

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