9 December, 2019

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Bond Issue: Arjuna Mahendran Can’t Say He Didn’t Know About It

“I’ve just read the report in full. I’m appalled, according to the Monetary Law in this country the Central Bank Governor can not say that he didn’t know about it” a Central Bank economist told Colombo Telegraph.

Prime Minister Ranil Wickremesinghe

Prime Minister Ranil Wickremesinghe

Commenting on the three-member committee report, appointed by Prime Minister Ranil Wickremesinghe to probe into the controversy that has emerged over the issuance of Treasury Bonds, the Central Bank economist said “this report and the way the ‘yahapalana’ government deals with problems is not only ridiculous, but dangerous.”

The first government-commissioned inquiry into the alleged corruption under the Sirisena government, concluded that “there was no evidence to the effect that the governor had direct participation with regard to the activities of the PDD and the Tender Board Committee.”

The following sections of Monetary Law Act will shed light on Governor’s responsibility which cannot be passed on to any other:

20. The Governor of the Central Bank shall be the principal representative of the bank and of the Monetary Board and shall in that capacity, but in accordance with policies or rules approved or made by the board, have authority.-

(a) to represent the Central Bank and the board in all relations with other persons, including the Government and any body of persons, corporate or unincorporate, whether public or private, domestic, foreign, or international; and

(b) to represent the Central Bank and the board in any legal proceedings either personally or through an attorney-at-law.

21. Subject to and in accordance with such rules, if any, as may be made by the Monetary Board in that behalf, the Governor may delegate to any other officer of the bank his authority to represent the bank for any purpose mentioned in section 20, so however that the Governor shall remain and continue to be responsible to the board for and in respect of any act or thing done or omitted to be done by any such delegate.

“So, he can’t say that he didn’t know about it!” said the economist who did not wish to be identified. He is barred from officially talking to the media.

Related stories;

Full Text Of Ranil’s Bond Committee Report – I’ve Nothing To Do With Committee Findings: Dr. WAW

Ranil’s Committee Clears Arjuna Mahendran

Arjuna Mahendran and the bond issue

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Latest comments

  • 2
    1

    Shame on you CB Governor that you were not aware that your son-in-law is a Director of Perpetual Treasuries!!! This is Family Trading !!!

    Ravi K too cut a very poor figure on the Saturday night 23 May Satana program when he stated that he is unaware of the Governor’s Singaporean citizenship.

    • 2
      1

      It clearly demonstrates that Arujuna Mahendran is incompetent as the Governor of central Bank if he does not know what is happening in the Bank .

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