CBSL Bond Scam Part 2: Internal leak allegations grab the President’s attention

CBSL Bond Scam Part 2: Internal leak allegations grab the President’s attention

CBSL Bond Scam Part 2: Internal leak allegations grab the President’s attention

Written by Lahiru Fernando

18 Oct, 2016 | 8:43 pm

Yesterday’s story in brief:

* Ministry of Policy Planning and Economic Affairs issues a statement at a meeting – Emergency funding of Rs. 15 billion needed to recommence expressway projects.

* Civil society and experts raised questions on UNP Chairman Malik Samarawickrama attending the meeting.

* CBSL indicated its intention to raise one billion rupees, but went on to accept bids up to Rs. 10 billion.

* Central Bank Governor’s son-in-law owned “Perpetual Treasuries” is the only company which knew of the raise.

Full article – click here

The story continues…

THE BACKFIRE

Opposing parties made strong allegations that a company connected to the CBSL Governor’s son-in-law was privy to privileged information leading to a take up of Rs.10 billion as apposed to the advertised figure of one billion rupees.

News 1st’s Shameer Rasooldeen questioned the former governor over the phone on increasing the bids up to Rs. 10 billion and if it was communicated to the primary dealers.

Responding to Shameer, Arjuna Mahendran confirmed that the primary dealers were not informed of the increase. Commenting on the increase, he added:

“So basically we advertised one billion and the public debt department told me that they would get me an order of one and a half billion. And when they informed me that they had got 20 billion worth of orders. I then told them that the government had indicated to me that they needed a large amount of money. And I told them why don’t we take half of that – 10 billion. And accordingly the tender committee went and told that the lowest that they could get the 10 billion.”

Shameer: “But the problem right now is the fact that this was not communicated to the primary dealers.”

Mahendran: “Well, in the past it wasn’t either. The point is that how can we communicate that to primary dealers because we didn’t know that we would get 20 billion amount of orders. The moment we opened the bills we realised that there was much is excess of what we had anticipated.”

March 9,2015 – the President calls for a committee to be appointed to look into the matter considering the allegations on CBSL Governor’s son-in-law benefiting through internal details of the bond issuance.

The Prime Minister took steps to appoint a three-member committee which included Gamini Pitipana, Mahesh Kalugampitiya and Chandimal Mendis. Incidentally, all three of them had close affiliations with the UNP.

March 16, 2015 – UPFA General Secretary Minister Mahinda Samaraweera lodged a complaint at the Bribery Commission in this regard.

What happened next?

More details tomorrow…

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