Top officials of the Central Bank accused ex-Governor Arjuna Mahendran of giving scant regard to any regulation at the bank, breaking all laws, during his tenure as Governor.
Mahendran
During an inquiry conducted by COPE on Thursday, even Deputy Governor P. Samarasiri, who sided with Mahendran while he was in office, had claimed that he along with other officials of the bank were under instructions from Mahendran to go for a higher amount since private placements have been stopped by Mahendran with immediate effect.
However, despite the officials accusing Mahendran of wrongdoing openly, two UNP MPs, who are members of the COPE continued to defend Mahendran at Thursday’s meeting, although the rest of the members had acted in a professional manner.
According to the officials of the Bank, Mahendran had claimed that he was carrying out instructions issued to him by Prime Minister Ranil Wickremesinghe. The accusation comes amidst allegations that Wickremesinghe was continuing to shield Mahendran despite his alleged wrongdoings in the issuance of the Treasury Bonds in 2015 and 2016.
During the meeting, COPE Chairman Sunil Handuneththi had had inquired from members of the tender board members whether anyone of them had objected to it; Samarasiri had been silent but another Assistant Governor had explained that he objected but he was overruled by Samarasiri who had consulted Mahendran on the phone after walking out of the tender board meeting.
It has also been brought to the notice of COPE that the termination of the private placement system had been done by Mahendran without getting the approval of the Monetary Board or consulting the senior staff. But subsequently, Mahendran had informed the Board on 7th of March of the termination, and the Board had not ratified it. “This is the contentious issue with Auditor General who says that it had not been approved by the Board in advance,” a source said.
Rufus Perera / July 8, 2016
Now we know how the croos get away and NOT
one has been brought to book. The high and
the mighty in the UNP has been shielding
them. Great yahapalanaya by Mr Clean and
party. Now it is VD or Very Dirty.
/
Hunu Patiya / July 8, 2016
Holly cow !! Mr. CLEAN just became MR. Bean !!
Now it’s very clear why Mr. Bean was so much in love with Mr. Bond.
Nice…. Now what? Over to you Mr. President…
/Hunu Patiya
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Samuel Jayaweera / July 8, 2016
too early to make such conclusions man… who is behind you ? MR et al or Basil ?
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Hunu Patiya / July 8, 2016
Oops !!!! A lot of Royalists, LGBTs and NGO crows seem have got hurt, sorry mate.
Before you point your finger at me, check yourself. Not who, but what’s behind you to protect Mr. Ranil Wicramasinghe, when so much of evidence is coming out to prove that he was behind the recent bonds issue.
In your opinion, if it wasn’t Ranil nor Mahendran, then who mastermind this?
/Hunu Patiya
/
len / July 9, 2016
You can’t defend the indefensible – anything you say sounds self-serving and hypocritical.
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thrishu / July 10, 2016
F…..the Royals. Clean up our country of Royal Crooks! Does not matter if it is MR side or RW side. Wrong is Wrong, Period.
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Simon De Silva / July 8, 2016
Urupatiya would fit most… from what you utter here. Have your brain check.. and have good food replacing your EXTREMANT consume
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Amarasiri / July 8, 2016
Ranil Wichramasingh and COPE,
RE: Central Bank Officials Tell COPE: “Arjuna Mahendran Broke All Laws”
“Top officials of the Central Bank accused ex-Governor Arjuna Mahendran of giving scant regard to any regulation at the bank, breaking all laws, during his tenure as Governor.”
They say, RW, your Buddy from Royal College, “Royal” College, broke All Laws.
Anyway, how many Laws were broken and crinmes committee by MaRa MaRa Chatu MaRa Amana MaRa HoRa MaRa Dhushana MaRa and his cronies.
Can we do a comparison?
Just curious!
/
Rohitha / July 8, 2016
Mr Amarasiri
MR is no longer in government. Please comment on the the issue at hand. Do you think Mr Mahendran has rigged the bond market. Overwhelming evidence from independent, trusted public officials- Auditor General and deputy governors of Central Bank show a massive fraud by Mr Maendran; and that Ranil Wickramasinghe the Prime minister connived to protect the wrong doer.
Pleasedont blame the previous government for a massive fraud costing the country and future generation 140billion rupees.
/
Amarasiri / July 8, 2016
Rohitha
While, it is true what you say, any Fraud by Mahendran was by him and his cronies, the Culture of Frauds and deception was established by Mahinda Rajappsaksa over the 10 years period, by him, his family and his cronies.
So, Mahendran was following on the Mahinda Rajapaksa “Traditions”.
/
gamunu / July 9, 2016
Amarasisri mahattayo,
So you think it is ok for Mahendran to copy Mara? What kind of world you live in. You must be one of the a*** lickers of RW if you cannot see the damage he and AM did. Still you want to put the blame on mara.
Did you vote for the yahapalanaya to continue from where mara was stopped. Just get someone to count your brain cells(if there are any).
/
Amarasiri / July 9, 2016
gamunu Mahhattayo,
“So you think it is ok for Mahendran to copy Mara?”
No. He is responsible for his own corruption. However, MaRa and cronies he established a culture of corruption and deception.
Amarasiri has been an advocate for the removal of Mahendran, and it had nothing to do with him being a Tamil. Actually, he is disgrace for the Tamils, and now some non-Tamil Racists can point out to Mahendran, just like everybody is pointing to MaRa and his cronies.
Now Sing the Kavi:
MaRa MaRa Chatu MaRa
MaRa MaRa Amana MaRa
MaRa MaRa HoRa MaRa
MaRa MaRa Dhushana MaRa.
/
paul / July 10, 2016
“However, MaRa and cronies he established a culture of corruption and deception.”
This is the most idiotic statement I have heard so far this year. Your mob was elected to clean up the act, not to grow fraud and corruption at the highest level EXPONENTIALLY.
/
rew / July 9, 2016
Where were these Officers in the Bad Old Dats of MR and Cabral?
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max / July 8, 2016
Right Royal Power! Or so much so to the ‘cleanness’ of Mr. PM?
/
Desperate Lanken / July 8, 2016
Wait and see these are just speculations only – I have read the kind of headlines about former Health Minister turned to country s president today… but what happened was the other way around…. no lies can harm any personalities to the manner they aim at.. There is a huge conspiracy being aimed at RW – attacking him – it will not be easy this time, since they have got almost everything at their hand if want to put the men in jail.
/
shankar / July 8, 2016
“According to the officials of the Bank, Mahendran had claimed that he was carrying out instructions issued to him by Prime Minister Ranil Wickremesinghe.”
looks like he covered his arse.Now the ball is in ranil’s court.It confirms what was always suspected,via aloysious to UNP.Mahendran was a used condom.
/
Rarityminds / July 8, 2016
Do you guys ever trust to say RW has grabed these funds ?
If he involved here being unable to bear the burden lanka has to face – having being looted by Medamulana criminals.
I never ever believe, Ranil W would grab funds to his own celebrities. That he has no in his genetics. Be he the Mr Clean or not.. that he has proved over the years.
Even Sajith Premadasa would never ever say, that Ranil W could be corrupted.
You guys work on the agendas of Unseen hands will learn if not today later.
This audience is srilanken stupid, gawky gullible, Wimal weerawanse controlled people.. so what do we need to question anymore.
This Maxes or Hunu Patiya are the men controlled by Rajakashe AVATHARAYA…
This man Rajaakshe will have to face it if not today tomrrow. He has been even worst than a deady virus in terms destroying the nation.
/
max / July 8, 2016
Lol! What you “BELIEVE” is NOT counted here German Shepherd Rarityminds but fact, facts and facts. See, how much the length a man could go down in the toilet pit when he is so BLIND and fond of politicians. Rarity is a classic example for that. Pathetic!
/
Sinchuappu / July 8, 2016
You please shut up and run your business with MR et al.. That will never heal you guys… You the flies floating in overflowing extrements pits of Raja will brutallly be abused for their political surivival.
/
rana / July 8, 2016
Rarityminds, No,Ranil did not grab this money. Because he has no children. He distribute the money among his Happy and the [Edited out] clan and Royalists Clan. And some invest in Karunanayakam companies.And part of the money use to pay the 5 star hotel suite where he presently domicile in SL.If you are stupid,ignorant or blind by the whims and fancies of “Royal Robbers”, don’t ask us to believe it.
This proves the truth that when somebody pointing a finger at a person and said repeatedly, he is a robber, he is a robber. he himself the biggest swindler or robber. His name wrote in the history as a great robber in SL history.
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Buffaloa Citizen / July 9, 2016
Donkey Rana
You do realise that the payments on a 30 year bond are not made up front, and that no money changed hands in the transaction, don’t you?
/
gamunu / July 9, 2016
Rarityminds,
Why are you trying to protect RW so much despite evidence stacking up against him. You like Amarasiri mahatatya will bring out MR and his cronies to side step the issue. You seem to know RW’s genetics well. Are you ashamed to admit your revered one now is a crook?
I never said MR was without blame and he must be properly investigated and taken and if found guilty be punished accordingly.
Shouldn’t you agree to a proper investigation into the bond scam as well without being the judge and the jury.
Do not think I am being controlled by the Rajapaksas as with your posting. Reading them is evidence who is controlling who. You are sad figure.
/
K.A Sumanasekera / July 8, 2016
There you go..
Is Batalanda Ranil going to uphold his Westminster tradition , if he has one left still?..
/
Dr.Rajasingham Narendran / July 8, 2016
I give below, the link to yet the best article that appeared in CT on the alleged Feb’2015 bond scandal by Aruna Kulatunga:
https://www.colombotelegraph.com/index.php/bond-who-scammed-whom/
He explains the situation in detail and with a time line. What the situation was in comparison between private placements and public auctions pre- and post- Mahendran appointment are tabulated with numbers and graphs.
I hope the readers and commentators will read this link to refresh their memories.
Can anyone challenge the information presented?
I of course smell a rotten rat in what the Central Bank officials have told COPE.
This article is also reference material for the new Givernor, Indrajit Coomaraswamy and COPE.
This evidence smacks of what a female justice of the Supreme Court, now retired, told in camera to the select committee probing then Chief Justice Bandaranaike. I pray the present sittings of COPE are turned into a circus, like that of that Select Committee!
Is Mahendran being made the scape goat for the sins of well entrenched and well practiced sinners?
Dr.Rajasingham Narendran
/
KA Sumanasekera / July 8, 2016
What was Batalanada’s bag man , Malik Smare doing in the Monetary Board Office Room, when the Tenders of the Son in Law were declared the winners?..
/
Samuel Jayaweera / July 8, 2016
Now we will see, the very parties will atack you Ranjana.. calling you as an another LTTEr who supports and takes the side of them. Dont worry, we the sinhala guys would never allow Rajaakshes to rise again.
This is purely well planned conspiracy to show that Mr Clean is no clean.
Butthey will have no facts to prove that.
Even AM is said to have nothing in his records to say that the banker was corrupted along his carrier.
Just by returning to lanka, he should have become the scape goat for all the sins left by Rajakashes.
Here AM and RW are both clean.. wait and see, these men will have to shut their both orifices inthe near future.
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Allen Francis / July 8, 2016
You know Ranil would do a better running the country if you did have your head so far up Ranil’s behind. Ranil is no different MR.
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KA Sumanasekera / July 9, 2016
Our Dalits with EPF got only 7.95 return for their money by investing in T Bonds.
But they were happy because they knew that they are also contributing something to the development of their country for the benefit of their fellow brethren who do not have anything, let alone EPF.
Now the Treasury is paying 12.95 % ( not sure of the rate on the 2nd tranche).But the EPF totally missed out on that extra dollop of cream which is over 5 % .
It is a hell of a lot even in Yahapalana LKR, considering the total sum of over 200 Billion.
I don’t think our Dalit EPF members know whether any of that cream gets pumped back in to help the less privileged.
May be they will have to wait till the next Election?…
/
Buffaloa Citizen / July 9, 2016
ka Sumaney
You do understand how a bond auction works do you not? A rate of 9.5 was expected. Nobody bought it. Therefore the rate kept going up before somebody bit. If you wanted it issued at a lower rate then why didn’t you buy it yourself?
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KA Sumanasekera / July 10, 2016
Buffalo Citizen,
You must be going to those property auctions in Western Suburbs on the Weekends..
You should change your name to Yahapalana Citizen..
Most commentators here wouldn’t know a T Bond from “Gypsies”…
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Lone Wolf / July 9, 2016
Dr RN,
Thank you for the link.
“Is Mahendran being made the scape goat for the sins of well entrenched and well practiced sinners?”
Maybe.
What are the chances that there is a real investigation, somebody is charged, found guilty and convicted?
What are the chances that the proceeds of the alleged fraud are found and recovered?
/
okkomaekai / July 8, 2016
I guess in typical lankan style all at CB will say anything to get into good books of anyone
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The Central Banker / July 8, 2016
Here’s a little explanation to all those CT readers who cannot understand what the above means, but choose to cry BOND BOND BOND (includes Sunil Handunneti), since nobody has explained what these so called broken rules were.
The private placement system was supported by the notoriously corrupt Public Debt Department (PDD) due to the personal benefits extended to them by the primary dealers (who are the ones who benefit from private placements). I quote from an article by former Jardine Fleming analyst (who later set up Forbes research in Sri Lanka) Aruna Kulatunga.
“It is no secret amongst the primary dealers and the top financiers of the country of the incestuous relationships between the dealer desks of the primary dealers and that of the Public Debt department. Jobs are offered to kith and kin of senior central bank employees by primary dealers to propagate these relationships and there has been a free-flow of information between dealer desks for decades.”
Any banker who knows the subject will concur. With the arrival of Mahendran, who discovered that the Central Bank was going for 100% private placements in an era where NO central bank in the world did such a thing any more, he moved to a system of 100% public auctions (which is now in place). The public auctions are exactly that – they allow for a free flow of information to the public on the expected values, expected rates, and allow the rates to be determined by bids rather than at the discretion of which primary dealer has offered a job to the son of the officer in charge of that particular private placement from the PDD that day.
What went wrong is when Mahendran, affectionately known as ‘Bond Mahendran’ fell for the trap of the corrupt officials at the PDD and people like Nandalal who was obviously eyeing the top post (despite not being a presentable solution) and advertised an auction of 1 billion instead of the 10 billion that was actually required to meet the government funding for that fateful week in March 2015. Some insider information obviously got to the primary dealers who subsequently bid for values of up to 20 billion, which was then informed to Mahendran. The fact that Perpetual (in which his son in law had been chairman but had stepped down from in January) was among the largest bidders had likely not been informed to Mahendran. He had then conferred with his deputies and the PDD and monetary board and had agreed to accept bids of up to 10 billion. The danger in doing this was that this was not the amount that had been advertised, and he was not aware that people were out to get him within his own direct reports.
He himself explains what happens here: https://www.youtube.com/watch?v=ygrW75hufNc
He also reveals some of the other strange things that were going on in the Central Bank in the last few years up to his arrival. It is amazing that people like Samarasiri and Nandalal have not said a word about any of these things up to this point. This includes the non existence of a legal and compliance department. many other changes that Bond Mahendran did were also good, and he is particularly popular among the younger and more qualified staff who have worked overseas and are aware of professional standards unlike Nandalal and Samarasiri who think that having been there for 20 years is qualification enough to be smart. Samarasiri is not popular as he is a bend over for anyone type of guy and is completely inarticulate. Nandalal is a lot more conniving than Samarasiri and orchestrated this whole thing with the PDD in the hopes of being picked for the top seat, although he too is not very articulate although technically savvy. The president was about to hand over his letter of appointment when Ranil scuttled the whole thing. This is why Indrajith Coomaraswamy always ensures that Nandalal is in every picture and video that he is in- it is a bit like keeping Karuna Amman captive during the MR era (Whatever happened to the man anyway?).
I only hope that the Dr Indrajith doesn’t fall for the tricks of these spineless cronies and get shafted like Bond Mahendran did.
/
ramona therese fernando / July 8, 2016
The Central Banker,
All that Mahendran Arjuna did for the county (and Comarasamy can do), is quite perfect, if not for the India awaiting eagerly in excited anticipation to build up the railroads of our little fragile Island, and merrily across the Palk.
Raj Rajaratnam’s 7-billion dollars heist from Western bond market, is something that the West will exonerate and allow us to use, as long as Sri Lanka’ s strategic position in non-threatening to them, and is placed in within the Indian-Commonwealth-of-Nations.
In comparison, the previous family-circle at PDD was so very patriotic for Lankan Sovereignty.
Let’s say Hi to India, People! :
https://www.youtube.com/watch?v=vzgabAhzDYM
https://s-media-cache-ak0.pinimg.com/564x/93/2f/e8/932fe8dd42a95d81a176dccc95236a21.jpg
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Highway / July 9, 2016
RTF
Are you stupid or do you just like sounding that way?
When the inter European highways were built did you find that those countries were getting invaded because they allowed the free movement of people?
People like you who believe everything they see in the media should just fade away and disappear. The west is finished. india and china are the future. It’s up to you to sink or swim.
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ramona therese fernando / July 9, 2016
Highway,
European countries will never have the train system as caste-systemed India. This is because of their relative egalitarianism due to their Christian values, compared to caste-systemed India. And poor little Sri Lanka is very egalitarian indeed.
Also, we have just recovered from a 30 year old war with the very place that trained and abetted their terrorists on us. So, it’s not a good idea for the next 100 years or so, to ever have a transportation system connecting our lands.
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media watcher / July 10, 2016
Peek a Boo, I can see you Samarasiri
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media watcher / July 10, 2016
Hello!!! I can see you Samarasisri!!!
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goes out to you / July 10, 2016
Media Watcher you got it wrong. Central Banker is not really a Central Banker anymore. He had to leave
due to public pressure recently. Please give him a chance to sling mud at others and clean himself. Except him, no one knows the facts explained here.
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Raj / July 8, 2016
Ranil had one credibility, that he was clean. Now Ranil’s close friend says he was acting under the orders of Ranil. It may be mud slinging but Ranil has to stand up & clear the air. If Mahendran is only trying to save his skin, then Ranil has been betrayed by a selfish opportunist no better than a common criminal but if he is telling the truth, then the honorable thing for Ranil to do is to step down immediately. His political career maybe gone but at least he took the blows like a man.
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MsMaralathoni / July 8, 2016
He is still clean. May be he is like – a pigeon among the wild cats.
In a country where law and order was a like greek – how can RW and Mr Sirisena make wonders ?
Just exchanging bits this way could helpful but in practice – srilanka handed over to MS and RW was an another somalia but with newly built highway form Colombo to Matara. That is the difference.
Jonsten or other fernandoos, the IRC of thug world became MRs buddies. So there had been no limits when it went to looting.
Today the very same bugger with lanken MEDIA men continue attacking the current duo… since they cant bear it today.. since the move can end up putting them jail sooner than later. Wait and see men…. truth will succeed.
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THONDAMANNY / July 8, 2016
If you say Ranil was or has been betrayed, ranil had aided and abetted Hopper SIRISENA to betray MARA.
They are all then common criminals.
YES. RANIL SHOULD STEP DOWN AS WELL AS SIRISENA, IMMEDIATELY.
But, time will tell whether they were Manly.
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DPJ / July 8, 2016
In the past Central Bank [CB] had been blessed to be served by the likes of John Exster, D W Rajapathirana, Sir Arthur Ranasinghe, William Tennekoon, H E Tennekoon and Neville Karunatilleke. N U Jayawardene the 2nd man to head the CB was made to resign within about 2 years in office as he was found to be unfit to hold that office by a commission. He had while in office had engaged in certain dirty deals. [The Commission Report is available in major public libraries] Rasaputram was the first Governor to women as his secretary and used to travel abroad accompanied by them. Just like now it was the UNP government at that time who got him to do dirty works of the govt.. He bowed down to govt pressure to cancel certain clerical appointments to the CB and the Anuradhapura RRDB as the selected by the CB through a competitive exam.It was alleged that more than 90% of the cronies of the UNP MPP were not in the final list. Mind you million were spent for the selection exams etc. On the other hand all unsuitable Jathika Sevaka Sangamaya stooges found the way up by obtaining dubious promotions. Some of them tried to be consultants through Arjuna Mahendran.
We are at a loss to understand as to why the present senior officers like DGG, AGG etc. kept silent when Cabraal was playing havoc in the CB from 2006 to 2015. They being in the permanent staff should have told Cabraal in no uncertain terms the illegality of spending CB funds to bid for Commonwealth games [more than Rs.one billion] the dirty investment in Greek Bonds [loss of more than Rs.3.5 billion] We believe that monies were taken to Greece to be credited to hidden accounts of Mahinda Rajapaksa. The investment of EPF monies in loss making Mihin Air, Sri Lankan Airlines, The Finance Co. and the Hedging deal. The former DGG Ranee Jayamaha, W A Wijewardene, Dheerasinghe, De Silva and also Samarasiri, Weerasinghe, and other senior officers should be questioned.They cannot and should not be allowed to wash their hands.
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Nimal Maharage / July 8, 2016
Has this CB governor position lately been set aside only for Colombo Royalists? One corrupted product of the Royal College was last week replaced with another one of the fraternity (though the latter is still deemed innocent until proven different later) as if the island/CB had no qualified economists to do the job. It seems that Mr. Clean, or his clan thinks only Royalists can do this job. Isn’t this a disgusting and nauseating trait of the third world mentality?
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simon / July 9, 2016
“”or his clan thinks only Royalists can do this job. Isn’t this a disgusting and nauseating trait of the third world mentality? “”
international exposure and royal seemed to have it.
if you fight for every bone you will never see a bone.
when in doubt always look inwards and the answer invariably lies inwards.
He has to serve somebody the president.it takes 2 to tango for loans, bonds.
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KA Sumanasekera / July 8, 2016
This got to be the mother of all rorts in the history of this land of Mahavamasa.
And the so called Mr Clean pulling it off will be legendary , when the next volume of Mahavamsa comes out.
What a coincidence that the latest volume was in fact presented to Mr Clean at the Temple Trees the other day..
And Mr Clean himself recommended that they should start a new volume for the period starting from Vanculanbergs .
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Lucky Luke / July 9, 2016
“” period starting from Vanculanbergs .””
banda invention period? they always go in twos.
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KA Sumanasekera / July 8, 2016
Yahapalana PM Batalanada Ranil is in it up to his eye balls.
So how can this COPE prosecute the Singaporean?.
What the COPE should and must do is tell the inhabitants the following,
How much was borrowed in the two Bond Issues.
What are the Interest Rates,
How much has to be paid back in total – Capital and Interest,
Over how many years,
What is the amount of each instalment.
What is the frequency of payments.
And last but not least, how much the Income Tax payers have to fork out per capita, to cover these instalments?..
This will benefit our Dalits also,to understand what have been the major achievements of Yahapalanaya so far, besides VAT and Luxury Cars for the Ministers & the Deputies..
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Diogenes / July 8, 2016
Mr Clean seems to be wallowing in pure 100% clean shit! Terrible smell!
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eldorado / July 8, 2016
Except for the “Central Banker” above no proper analysis or explanation to the whole issue has been attempted by anyone. A lot of ‘red herrings’ have been drawn across the ‘bond scam’ but it basically leaves readers still groping in the dark as to what really happened and who could be held accountable finally. Is it because no one knows, and everyone is just throwing stones in the dark to create a noise and a furore?
In my opinion COPE should get down the former Governor Mahendran and question him along with and in the presence of the Officials of the CB, including the new Governor, to unravel this issue and get to the bottom of this scam and then publicise the findings ! After all we are entitled to know the truth.
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NADARAJAH / July 8, 2016
POOR MAHENDRAN – MONEY ACTUALLY WENT TO FUND THE UNP
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Sona / July 8, 2016
CT , you ll are becoming a bunch of jokers.
Like a trash msg u pick up at a supermarket, while waiting to pay & have actually finished the mag, tho decency makes one pay for it.
But CT, you have no decency, no shame.
If you don’t find some shit to print daily or every other day about Governor Arjuna Mahendran, not the old [Edited out] who can barely stand & tries to give the public lessons, incl his own staff.
NANDALAL can stand as close as he wants to the old [Edited out] with his brylcreamed hair, but he not going any further than where he is now.
The other cunning[Edited out] Kumidini Saravanamuthu, was made an ADG by Governor Mahendran, shameless [Edited out], but that family has no [Edited out].
The day you CT have nothing to print on Governor Mahendran, you ll have to close up your website, [Edited out] .
I’m certain they’ve already considerably reduced.
Adios CT
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PROUDMAN / July 9, 2016
Well said Soma
I endorse every word you have written. We need people like you to stand up and NOT STAND BY.
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thondamanny / July 8, 2016
CENTRAL BANKER…… WHERE IS ak AIMING TO GET?
pROF. NALAKA GODAHEWA PROVIDES A SIMPLISTIC EXPLANATION ON YOUTUBE INTO THIS WHOLE SAGA.
Quote: advertised an auction of 1 billion instead of the 10 billion that was actually required to meet the government funding for that fateful week in March 2015. Some insider information obviously got to the primary dealers who subsequently bid for values of up to 20 billion. —- Anura Kulatunga
LEAVE ASIDE THE FINAL AMOUNT, PDD CALLS FOR ONE (01)B FIRST TO THE PRIMARY dELAERS TO GET A FEED BACK ON THE RATE OF % BEIT FOR A SHORT TERM OR LONG TERM.
GOING BY THE QUOTES OF % RATE THAT THE PDD NEGOTIATE FOR THE 20B.
IN THIS INSTANT IN FEB/2015, THE RATE QUOTES RECEIVED AND FINALISED FOR (01)B WAS AROUND 10.4%.
oN THIS BASIS PDD NEGOTIATE FOR (20)B.
NEVERTHELESS, ALL PRIMARY DEALERS FELL INLINE TO QUOTE FOR (01)B EXCEPT PERPETUAL WHO HAD QUOTED FOR (10)B.
wHEN PDD NEGOTIATED FOR (20)B, PERPETUAL WAS READY WITH BANK OF CEYLON CONNIVANCE.
CLOSING OF BOND PURCHASE NORMALLY TAKE PLACE BY 1100HRS WAS EXTENDED UNTILL 1110HRS.
FINALLY WHEN THE BOND DEAL WAS SETTLED AT 11.7% FOR 30 YEARS.
INBETWEEN THERE HAS BEEN CERTAIN CALLS from VIP received by BOC AND MANY THINGS HAVE TAKEN PLACE WITH DEAL ROOM VISITS BY UNWELCOMED VISITORS ECT.,LOT OF THINGS ARE BEING NOW being revealed TO THE COPE BY THE CB OFFICIALSto the COPE. Wonder whether they could comprehend?
FINAL LOSS TO THE CB IS (59)B.
MR. CHANDRA.j TOO HAS WRITTEN TO THE COPE CHAIRMAN AND GOD HELP THE COPE.
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Bagehot / July 9, 2016
Does Nalaka Godahewa provide a simplistic video for his pump-and-dump scandals in the stock market with his buddies Dilith and Paddy, for which he rightfully belongs behind bars?
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Lanka Watch / July 8, 2016
Either Mahendran was ignorant of the CB rules, which is doubtful with
his experience in the same bank (CB) he served years ago and IMF or he found the rules obsolete and introduced new laws to suit the immediate
demands pending approval from the board. The question here is for COPE to prove whether he was involved in any kind of malpractices where as the bond issues were concerned and not discuss what methods he applied
to run the bank.
There is no need to shield him by any political party and if he has done anything wrong he should be punished and money taken illegally if
any, should be returned to the Bank and perpetrators also punished and if he is proved not guilty,he should be compensated for loss of career and defamation of character.
The recent case where FBI decided not to charge Hillary Clinton,presump
-tive nominee of the Democratic party for the position of President United States 2017, as her offence did not amount to a punishable offence although she carelessly handled the email issue.Mr. Mahendran’s
case is similar.
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roger / July 8, 2016
it is time Mr Dirty pack his belongings and get ready to go. He is not fit to be the PM. The way he was clinging onto leadership in UNP itself was quite evident of his real nature. Karu or even Sajith will be better
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Plato. / July 8, 2016
Dr.R.N.
Thanks.
I suspected this right along.The rotten rats in the Central Bank are really the catchers of MaRa/Cabraal.
Besides what is most hilarious is the fact that Sunil Handunetti is sitting in judgment.I wonder whether he knows the difference between a Bond and James BOnd?
Now, I know why PM.Ranil stood by AM.Westminster,as typed by Sumane has no relevance.
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Tamil from the north / July 8, 2016
If this guy did what the media is saying, then he should be tried for the crimes he committed and if proven guilty then he should face the legal consequences. If you commit a crime, then you pay the price…………regardless whether you are Tamil, Sinhala……….whatever!!!!
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Piranha / July 9, 2016
All this is pure speculation! That’s all, folks. I wouldn’t get overexcited by these unverified titbits. Let’s see what the final report by COPE comes out with.
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Upul / July 9, 2016
It seems the bond issue has spawned a range of conspiracy theories even the authors have lost track of.
Mahendran was appointed to the CB as Mr. Clean’s stooge. Lets get that one out of the way first. Then, Mahendran had to follow Mr. Clean’s instructions on what needed to happen next, as the Rajapakse debts came up for payment or refinancing. Without being upfront with the country asto how they were going to be dealing with these enormous burdens on the country’s treasury, Mr. Clean assumed (wrongly) his credibility justified any means he chose to adopt to sort out the mess.
The first mistake – When the bond amount was changed without the traders being informed formally. The only firm in a position to make a bid was Arjun Aloysius’ company. He did not use his family wealth to make the bid. He obtained a line of credit from Bank of Ceylon ( who could not bid on this bond issue because they are not licensed for this.)
Upto to now, nothing has happened that is illegal. All players involved were authorised participants. Being Mahendran’s son in law should not penalise Aloysius. Why should there by a different rule for him when the entire government has ALL OF THEIR FAMILIES benefiting from the country. Atleast he was working whilst the rest are all charity cases.
The ONLY ISSUES ARE:
1. When and who decided to increase the bond issue amount.
2. Was it only Perpetual securities who were informed of this change.
3. If not, why did the other traders not bid.
4. Were they not able to get lines of credit like Perpetual did.
5. How was that possible.
The 1.6 billion being thrown around by all and sundry comes from the difference between the bid and ask, at the auction. If there are’nt enough buyers at a certain interest rate, the amount of interest has to be increased to successfully dispose of the bonds. For the fools who keep insisting the government paid too much I say, get a life! You don’t know what the hell you are talking about, except to make a noise.
What is ironic in all this is that the money the govt was looking to borrow did not come from outside the country but from a bank it owns 100%. That should be criminal BUT IS NOT.
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Bagehot / July 9, 2016
You are correct. But you missed the bit where Aloysious (purportedly) stepped down as chairman of the company the day Mahendran was appointed. So even there, nothing illegal seems to have happened.
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harry hatton / July 9, 2016
But who owns the company-the aloysious family. All the profits from these deals go to the family which includes Mahendran and daughter
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Lone Wolf / July 9, 2016
“However, despite the officials accusing Mahendran of wrongdoing openly, two UNP MPs, who are members of the COPE continued to defend Mahendran at Thursday’s meeting, although the rest of the members had acted in a professional manner.”
Anybody know who were the two MPs defending Mahendran? We have the right to know.
I received a tweet saying that all UNP MPs were defending Mahendran or silent.
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harry hatton / July 9, 2016
If Cabrall did all these wrong things why is he not being charged ?
At least explain to us what he had done and the evidence against him
We were told to vote against MR because he was a corrupt man
Now who should we vote for ?
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renu / July 9, 2016
If he has broken all regulations of CB take
appropriate action against him If proved give him the maximum punishment People will not allow Ranil Mr. Clean to interfere in anyway . If he does he must go home and say good bye to Politics in the country
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ranjith / July 9, 2016
For every thing MR MR but nobody confessed like this on MR dealing even though he is out of power.that means writers here write everything against MR on jealousy as he did what he promised.
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Tax Payer 2 / July 9, 2016
Well Bondie M slept with the dogs and got up with ticks.
Now he ran away. If there is no fraud the government can have an independent
investigation without interference.
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pattapal / July 10, 2016
Firstly the heading of the TITLE is wrong, as NO LAWS were broken.
Secondly, it was not even rules that were broken, only previously established practice, which in hindsight was abused by Nivaard Cabraal (private placements) for his own advantage, and no action has been taken on established daylight robbery.
Thirdly, misleading the reader in this way is puerile journalism as the reader becomes a sucker to incorrect news.
In any case, following previous practice does not mean it is good, in fact we do not need the repeat of prior behaviour as it has NOT done this Country and good, and in any case the politicization of the CB by the previous govts. merely continued in this.
As for advice of senior staff of the CB, they are fossils who have learnt their economics in a bygone age, and have NEVER practiced TODAY’s MONETARY POLICY, so what they say is not even worth the waste of time listening to their dead ideas!
What we need in the CBSL is NEW THINKING to face REALITY. We must introduce Monetary Policy, that produces the desired result. What are they?
A stable exchange rate that encourages exports, and discourages imports. A severe reduction in debt service payments that are crippling our Country, and impoverishing the poor even further, encourages foreign investment by breaking and reducing the barriers to Investment. Taking EPF away from the CB so they can make investment decisions to benefit the people who the members not the CBSL who want to reduce their debt interest payments. To name but a few.
I have outlined in my blog, how we can reduce annual interest payments, especially on external borrowings by Rs500B per annum in my blog. That alone is enough to save our bacon, and NOT have to impose morbid regressive taxes on the poor.
Just read the comments on this section, and we know the caliber of the reader. No wonder we are where we are!
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