20 April, 2024

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IMF Bailout: Why This Concern About Good Governance, Anti-Corruption Laws & An Independent Central Bank?

By W A Wijewardena –

Dr. W.A Wijewardena

Three continuing conditions for EFF

Three conditions which the Sri Lankan Government should meet before end-June 2023 to receive continued assistance from the recently approved bailout package of $ 3 billion seem to have been extraordinary to many observers of IMF’s global operations. They are the establishment of proper governance systems, introduction of strong anti-corruption mechanisms, and enacting a new law to make the central bank an autonomous institution.

The first two are interrelated and the third one supports the first two. Their importance was highlighted by IMF’s Managing Director Kristalina Georgieva in the press release announcing the bailout package as follows: “The ongoing efforts to tackle corruption should continue, including revamping anti-corruption legislation. A more comprehensive anti-corruption reform agenda should be guided by the ongoing IMF governance diagnostic mission that conducts an assessment of Sri Lanka’s anti-corruption and governance framework. The authorities should step up growth-enhancing structural reforms with technical assistance support from development partners.”

Sri Lanka: Weak governance, anti-corruption and central bank

The governance and anti-corruption laws have been further emphasised in the report submitted to the Executive Board of the Fund seeking the approval of the bailout package. The Fund has noted that Sri Lanka’s governance has been weak in several state functions and there is high level of corruption in the system. Accordingly, a governance diagnostic mission has been fielded by the Fund to Sri Lanka to assess the adequacy of governance and anti-corruption laws. The report will be published in September 2023 providing guidelines for the Sri Lanka Government to introduce necessary changes in these areas. The anti-corruption legislation should be in line with the United Nations conventions against corruption and should include provisions for asset declaration and asset recovery if such assets have already been siphoned out of the country.

The government seems to take credit for this as was announced by President Ranil Wickremesinghe, though it is being introduced not on its own accord but on the insistence of IMF for continued support. Likewise, the Central Bank is to be made autonomous not on its own accord but due to the pressure from the Fund to make it free from political interferences that lead to the decline in the value of money. It is unfortunate that an outside institution should advice Sri Lanka as to how it should introduce new laws relating to these vital issues.

IMF and Russian fiasco of 1990s

But IMF has a very good reason to insist that its borrowers should have a good governance system, strong anti-corruption laws, and an independent central bank after it burned its fingers in 1990s by lending an enormously high amounts of money to Russia on the pressure brought on it by the United States. The US government wanted to help Boris Yeltsin to rebuild Russia in line with the ideologies of the Western nations. As a result, when the IMF staff and the Executive Board were willing to lend only modest amounts to Russia, the pressure was brought on the Fund to lend extraordinarily large amounts by way of bailout packages. Deviating from the normal practice of providing its funds only for balance of payments purposes, IMF allowed the Boris Yeltsin administration to use for budgetary purposes as well. This paved way for the Russian government to misspend the money it receives from IMF.

Similarities between lending to Russia and Sri Lanka

There are certain similarities between IMF’s lending to Sri Lanka today and its lending to Russia in 1990s. After the collapse of the Soviet Union in 1991 and a new nation called Russian Federation was born, it was necessary for IMF to step in and help the new nation to thrive as a free market economy. Like Sri Lanka, Russia was a bankrupt nation with foreign debt contracted by the old Soviet Union amounting to some $ 66 billion. But its foreign reserves, including the gold reserves, were only $ 2 billion. As a result, Russia was about to default its foreign loan obligations to the financial institutions in the West.

Same as in Sri Lanka today, IMF stepped in as the policy advisor, lender, and the arranger of support from Western countries. IMF was so enthusiastic about its new role that the program was started even before Russia was formally admitted as a member. But that was formalised after Russia gained IMF membership in June 1992.

IMF’s three blunders in Russia

Writing on the IMF’s failure in Russia in 1990s, a paper published by Heritage Foundation in 1998 has identified three blunders committed by the Fund in its enthusiastic lending to Russia (available at: Russia’s Meltdown: Anatomy of the IMF Failure | The Heritage Foundation). First, there was an inadequate risk assessment by IMF about its borrower which every bank does even for small loans granted by it. In this connection, one serious mistake was the overestimation of the growth rate of Russia after 1994. Second, the Fund had committed its funds to Russia betting on the will and ability of the leadership implementing the reforms that had been recommended by it. No allowance had been made for the possibility of Russian leadership being unwilling or unable to implement those reforms. As a result, there was no Plan B if Plan A was not successful.

Third, IMF had failed to do the necessary due diligence about the quality of Russian leaders who would succeed the existing leaders should they leave their positions midway through. This was like a situation where the top executives of a company leaving it immediately after a loan has been approved by a bank. It would have been clear to the IMF officials that some of the tough reforms would not have passed through the anti-reform lower house of Parliament, known as Duma. But it was exactly what happened.

Money lent to Russia disappearing without a trace

The problem with IMF officials was that they had ignored the high level of corruption in the government. According to the report mentioned above, $ 250 million lent to Russia by the World Bank to restructure the coal industry and an undisclosed amount of dollar loans supplied for rehabilitating Chechnya have disappeared without a trace. In addition, according to reports, a vast sum of money had been siphoned off by corrupt politicians who had been supported by central bank officials through the US bank, Bank of New York, or BNY.

Leaving the moneys lent to Russia off its shores

According to the Corruption Watch released by Radio Free Europe Radio Liberty or RFERL on 27 June 2002 (available at: https://www.rferl.org/a/1342417.html), the scandal connected with the disappearance of the IMF funds had not been over even as late as 2002. In April that year, the head of the State Audit Chamber, Sergei Stepashin, had confessed that he did not know the whereabouts of almost $ 5 billion received as a loan in 1998 to support banks like SBS-Agro, in Russia. He had said that money had really dissolved or more precisely, the loan from IMF had simply been stolen. He had said that it would have been done by the top officials implying those at the central bank. Many banks from Frankfurt to Australia to USA had been involved in these illegal transactions.

First, $ 2.35 billion had been transferred from the foreign branch in Frankfurt of the Bank of Russia to the Bank of Sydney in Australia. It is from this account that money had been disbursed to bank accounts in other countries. $ 235 million to the account of an Australian company, $ 2.115 million to National Westminster Bank in London, $ 1.4 billion to the Bank of New York, $ 780 million to Credit Suisse, and the remaining $ 270 million to Kreditanstalt-Bankverein in Austria. This roundabout method of sending money illegally to its destination by employing several banks in several countries was successful in hiding the unauthorised transactions from the audits of the Fund.

It was simply satisfied that it was a legitimate transaction because money had been transferred by the Bank of Russia to its own branch in Frankfurt. This complacence had helped those in the Russian central bank and the Boris Yeltsin administration to systematically steal the IMF money without its knowledge. As a result, IMF management refused to accept that its money had been misspent by Russian authorities. Instead, according to them, the IMF loan proceeds had been used to defend the Ruble, the explanation given by the Bank of Russia officials. Over the period, the Bank of New York had received an estimated sum of $ 22.5 billion. In 2007, the Russian government had sued the Bank of New York demanding that it should return this money to Russia.

But in 2009, due to some unknown reasons, Russia dropped this legal case and accepted only the legal costs from the Bank. However, according to the London-based The Guardian, IMF’s top officials had known about the Bank of Russia placing IMF loan proceeds with its subsidiaries overseas and had just advised it that it was not a good practice (available at: https://www.theguardian.com/world/1999/oct/17/russia.business ). Again, it is a callous approach to news about its loan money being pilfered by those in the central bank and the Yeltsin administration.

IMF is wiser now: Once bitten twice shy

Since the Russian scam of 1990s, IMF has become wiser. Before lending to any country, it does a routine check on the governance system, anti-corruption machinery, and the central bank autonomy to ascertain whether they are adequate to protect the moneys lent to these countries. That is why all these three aspects have been made a continuing condition for Sri Lanka to receive the next instalment of the approved EFF. If there are deficiencies in the governance system, Sri Lankan authorities should take immediate action to rectify them. In a fact sheet issued by IMF it has been noted that good governance and sustainable development are interrelated.

Accordingly, governance is a concept involving how a country is governed and it includes how economic policies are made and implemented, what type of regulatory framework is available and adherence to rule of law. Sri Lanka is weak in all these three aspects, especially matters relating to the rule of law. All successive governments have been using the law partially favouring their supporters and applying strictly on others. It will be interesting to learn what type of findings will be made by the visiting team on assessing the diagnostics of governance in the country relating to the rule of law.

There are two main initiatives which IMF is promoting in member countries in this respect. The first relates to the management of public resources through reforms covering public sector institutions. The other is concerned with the development and maintenance of a transparent and stable economic and regulatory environment conducive to private sector activities. It is widely held that both are missing in Sri Lanka.

Strengthen the corruption combating machinery

IMF through its EFF has stepped in when there is a need for a strong anti-corruption machinery in Sri Lanka. The existing bribery or corruption commission is weak, politicised, understaffed, and no teeth to bite top politicians and those who are related or connected to them. IMF has insisted that new laws should be enacted to give additional teeth to the machinery in line with what is recommended by the UN system. The new machinery should conduct investigations into bribery or corruption on its own rather than waiting for someone to make a complaint. Also, it should have provisions to bring back the money siphoned off the country. IMF failed in this respect in Russia. It cannot fail again in the case of Sri Lanka.

New central bank bill needs a major overhaul

The new bill to make the Central Bank independent seems to be an eyewash. The bill has boldly pronounced that the Central Bank is administratively and financially autonomous. This refers to the bank’s budget independence. While the budget independence is necessary, the more applicable independence relates to the autonomy in its policy making. The bill is silent on it. The Secretary to the Ministry of Finance, the main causal agent of subduing the bank’s independence is no more on the Governing Board or the Monetary Policy Board. But according to the proposed law, both boards are going to be filled by nominees of the minister of finance who has a vested interest in bringing the Central Bank under his control.

In the current Monetary Law Act, there are nominees of the minister on the Monetary Board. In the proposed law, there are still nominees of the minister on both governing boards of the bank, in addition to the two Deputy Governors who are actually appointed by him. Hence, if the present Monetary Board is not independent, so is the two boards to be set up under the proposed law. What is suggested is that instead of the minister of finance nominating these members, let a selection process be introduced under which suitable persons are nominated, screened, vetted by a selection board and three names are presented to the appointing authority for selecting one person out of them.

In any case, the minister of finance should not be empowered to appoint Deputy Governors as has been proposed in the new law. That should be done by the Governing Board based on the merit of the persons so appointed.

If the central bank bill is enacted as it is, IMF will be fooled once again as it had happened in the case of the Russian scam of 1990s.

*The writer, a former Deputy Governor of the Central Bank of Sri Lanka, can be reached at waw1949@gmail.com

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Latest comments

  • 4
    1

    To the IMF: Please be aware that you will get FOOLED in Sri Lanka much worse than in Russia.

    Your proposals (1) Good Governance. Do you have an iota of the QUALITY of the people who are placed in charge of the Governing Functions? Take a look at the composition of the Parliament, the Cabinet, and the top Beaurocracy. Do you ever think that these already corrupted and scrupulous bunch of the Political Hierarchy and its accomplices in the Top Beaurocracy are going to CHANGE their mindset and work in accordance with Good Governance Principles? A good example to look at is the Good Governance (Yahapalanaya) Regime established under the then-PM and the present President. You can learn more about its “Development” that came to power by replacing “Good Governance” (Yahapalanaya) with “Splendor and Prosperity” under “Rajapakses”. Don’t you see that the SAME BUNCH of corrupted “Thieves” are in power?
    (2) Introduction of Anti-Corruption Mechanisms: Haven’t you seen such “Mechanisms” (Legislations) are in place? Look at a large number of Judiciary Actions instituted against highly profiled personnel in the State Machinery that has been “DISCHARGED”. Have you seen the REASONS for such “Discharges” (Nidoskota Nidahas)? I invite you to take a deep study of all those cases. Interesting to study “The WHO” failed those cases and “WHY”.

    • 3
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      You didn’t mean scrupulous, I know.
      Un silently slipped away!

      • 1
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        Dear Nathan: Thank you so much for pointing out that mistake. Surely, it must have been written as “Unscrupulous”. That is what I meant. See how that missing “Un” created the blunder. Thanks again.

  • 3
    1

    contd:

    So please don’t FOOL us. In the end, you are definitely going to get FOOLED in Sri Lanka perhaps worse than in Russia.
    One more thing I would like to ask you and direct your attention to. Don’t you know that to do all those “Changes” you are proposing and to “Succeed” the Government needs to muster the support and more especially the “COOPERATION” of the public at large? This Government, by and large, is very unpopular and makes things worse with the public utterances that the President and the Ministers are making to get things done are extremely difficult. For example, look at the “Anti Terrorism” Legislation that has been proposed. In the midst of wide public outcry of protest on it, the Minister of Justice who drafted it openly says: “We won’t change anything. If the people want they can go to courts”. Then the President says: ” I have told the Minister of Justice to frame “Tuffest Laws” to handle any sort of uprisings in the country”. Do you think that is the way to address issues? That “ARROGANCE” resulted in one President “FLEE” the country.
    As regards “Anti Terrorism Legislation”, already International condemnation and protest have arisen. “ICJ” and “Amnesty International” are the main organizations that have come forward to condemn it. Recently AI asked the International Community not to be “BLIND” to what is going on in S/L.

  • 19
    3

    Simon agree 100 %. 1) Do you think similarities in lending money to corrupt Russia and Lanka, must be a Western media propaganda. 2) Author says vast amount of money was siphoned by Corrupted Russian politicians with the help of BNY, Bank of New York. If so, at some point those involved would have been found guilty and put behind bars. 3) Can banks be blamed for doing transactions ?? 4) Many Russian Oligarchs held accounts outside of Russia, including in the U.S. If IMF loans changed hands, do we blame the banks. 4) For unknown reasons Russia dropped the legal case in 2009 ??? Thanks to Obama, for not just implementing bank reforms ( following financial meltdown, occupy WS movements ) but going after those illegal / corrupt Oligarchs who were using the U.S soil to hide their loot. Many such illegal accounts were freezed and now embezzlement is considered as international crime. 5) Thanks to Putin, Finland will join NATO this Tuesday and Sweden too is expected to join soon. 6) Who would have thought of an explosion in Saint Petersburg killing Putin’s mouth piece.???

    • 17
      3

      On 11 June 1998 , two months BEFORE, IMF money was sanctioned to Russia U.S House of Rep advised President Clinton requesting for more information to consider 18 Billion funding request for the IMF. Letter to President Clinton stated ” Recent reports on fund misappropriation in Russia and Indonesia demonstrate the need for more careful examination of IMF programs . The plain fact is that no one in Congress has anyway of knowing, these funds have been improperly used . Congress has fiduciary responsibility to U.S tax payers to ensure our funds are not misappropriated or squandered. The notion that there is no cost to the appropriation of 18 Billion of U.S Government funds is invalid and does not absolve Congress of it’s fiscal responsibilities”. The WH did not respond to the request and on 14 August an additional 4.8 Billion was transferred to Russia. But instead of transferring to Financial Ministry ( as had been done in the past ) it was directly sent to Central Bank where it immediately became intertwined with other foreign reserves and all track of it was lost. Does it sound familiar ????

  • 1
    3

    chiv: Thanks. This “17th” – the so-called “EFE” of IMF is a different “LOGARITHM”. Our President, in presenting the entire “Agreement” “Hinted” that it must be approved by the Parliament. Now he has made a public statement and said: ” If the Agreement is approved by the Parliament, I would make all those terms and conditions the Laws of the Country”. So what the President is seriously looking forward is to implementing that “Hidden Agenda” of the IMF. This President is the “Chosen Agent” based in the newly created “US/INDIA/AUSTRALIA/JAPAN” a “CONGLOMERATE” in the South Asia Region. The next “Entrants” to this “Chosen Land” ) S/L would be “The World Bank”, “ADB” and several other “Private Financiars” in the name of “ISB HOLDERS”.The “Head Quarters” would be in India. Already India is in a “BIG WAY” affiliated with both the “Internal” and “External” affairs of Sri Lanka. The “COORDINATING” officer is Milinda Moragoda – the “Cabinet” level Ambassador of Sri Lanka to India, another “Citizen” of the USA. You see how the “Lid” fits the “Pot”. Unfortunately, no politician both in the Government and the Opposition have seen this “Danger”.

    So as I said above, this is a “Different Ball Game” played with Sri Lanka by the above-mentioned “Conglomerate”.

  • 9
    1

    The IMF Managing Director Kristalina Georgieva begged China to issue a release letter so she can lend to Lanka. What is it called that a new lender blaming the earlier lender and asking that guy to release the client so she can lend? Has anybody heard any words for this lending theory or in any Economics lessons a name for this new order? China said that the IMF is only trying to steal its repayment by Langkang for them! Is that wrong? How can we bypass after all it was we who wrote here that China proposes unevaluated, White Elephant Projects to Langkang, then China lends for that projects, on 25 times to 50 times higher interest than country to country loans, then brings 2nd hand materials & prison labor, collect back the loan by breaking down the computers by hacking, then obtains additional contract to fix the computers. Now can we pretend that we do not see what the IMF is playing? Doesn’t this sound like someone above wrote earlier that if China is the pot, then IMF is the lid? Don’t the economically balanced loans have to be competitive, and the clients select what he/she wants? How can the IMF kick China out of its business and they steal that business? Is this not what the Sinhala Intellectuals in Colombo?

  • 9
    1

    Sinhala Intellectuals hire the Modayas, buy Biryani- Arrack, give them gallons of kerosene and send to the Tamils’, and Muslims’ businesses, then take over the businesses at the appropriate time. How, in the world, can an international organization steal a country’s business? I know you all might have read HRW’s Asia Branch’s statement. They are looking at the loan on the inverse side we look at. HRW blames that IMF’s loan to Langkang is even worse than the loans China gives. If this story of China and IMF are not the lid and the pot, then what another story might one cite for that saying? When China fined $300M Evil Emperor without any protest paid all the fines. He never took China to any international Arbitration. Hitler King followed the same method to Hunu Ship demerges. Why is the IMF thinking that Langkang is patiently paying these fines to China? Because China is their only friend, they believe to use the Veto vote in UNSC and save the Old Rowdy King, as a last resort.

  • 9
    1

    Does the IMF want to guarantee to Langkang that they can give better protection to Old Royals at UNSC than China’s veto, so borrow from them, not China? Is the IMF advising UNHRC to get rid of the resolutions which ask to prosecute Royals for Economic crimes and war crimes? Why is prosecuting politicians at ICC for economic crime not one of the conditions for the loan?

    • 0
      0

      Mallai, thank you so much for saving my time. For some time I was thinking about writing on this subject of “China and it’s role in recent IMF negotiations” but let go thinking it’s trivial (busy with work / family , lazy at other times). You’re absolutely right. China had no intentions of helping with debt re-negotiation, until they were exposed and pressured, by rest. The Chinese policy in such situations is to lend more to pay interest on previous Mega Loans, applying stricture conditions. I don’t know what terms or explanations Economist have, but to me this is what is called ” DEBT TRAP”. People then have audacity to accuse IMF of Debt Trapping it’s already “BANKRUPT” customers. ( bad loan liabilities).

      • 0
        8

        Niyama joduwa!

        • 0
          0

          Di not feel upset. You have Chimpa , Dinuk, DRS You can find deadwood comarades like you , to keep company.

          • 0
            0

            Instead of foul mouthing name calling and trying to belittle, do you have anything to say about GDP mentioned by Mallai between 1992 and 1998. You like other comrades lied and got caught . Russia was almost BANKRUPT at the time of disintegration. Not just them , they bankrupted all their allies by then with their Pseudo Marxism/ Socialism Marx was a great political theoretician, no doubt but didn’t expect Megalomaniac like Putin or the blind followers like Prof Deadwood to promote his great theory .

  • 2
    11

    Strange coincidence with the disappearance of IMF funds and Yeltsin becoming president of Russia from 1991 to 1999. To the great joy of his western backers, in 1992 Yeltsin signed accords with U.S. President George H. W. Bush, declaring the Cold War officially over. He gave independence to Ukraine and Belarus and replaced the Soviet Union with the Commonwealth of Independent States. The catastrophic destruction of Russia began soon after. Russian criminals with support of Western crooks began the plunder, only stopping with the arrival of Putin. Theft of IMF funds were negligible in comparison with the overall losses Russia was subject to. All of that ended up in the Western banking system.

    • 11
      2

      The KGB beggar is estimated to have stolen between $200 to $300 B. Did Vasanthi, Deva & any others in that gang benefited out of it too? Because some communists claim that they don’t support the capitalistic KGB boss, Putin any more

    • 11
      1

      No Sarath, the strange coincidence is, the disappearance of IMF funds and Putin becoming President in just 3 years after joining politics just 3 years before in 1996, by forcing Yeltsin to resign (President from 1992). Now a days people have some idea about “money needed to finance person/ party to successfully campaign a Presidential election. How much money will be needed for a non politician like Putin to become President within mere 3 years after he joined politics in 1996.?? Who had all the foreign network / people / financial system , at his control at that time. None other than Putin who was Foreign Intelligence Officer for 16 years, (it’s not easy to develop foreign network beyond Iron Wall, unless you are Putin) and was appointed as the Director of FSB (Federal Security Service) and Secretary of of Security Council of Russia, in 1998, by the very same Yeltsin, who he got rid in a year. He had the luxury to established his own foreign network with right people working for him, in and outside of Russia. All he needed was loads of cash to execute his well planned coup. Putin had Oligarchs swindle Russian companies they owned and launder more than 10 Billion using just one U.S bank (BONY). Rest of the details are already provided above in my comments.

      • 11
        1

        Sarsth, Just to clarify 1) Putin quit KGB after 16 years. 2) joined politics in 1996. 3 ) Yeltsin appointed Putin as director of FSB and secretary of Security council in year 1998. Same year Putin became PM 4 ) Very next year ousted Yeltsin to become President in 1999. 5 ) IMF Fund dissapeared under Putin’s watch not when Yeltsin was president from 1992 until end.6) Obviously Putin made Yeltsin look culprit.,( among many other BS) 6) what more Putin is still in power after 23 years and planning to stay until 2035 or so. 7 ) Marxism at it’s best. Isn’t it???? 8 ) do anyone know how much Putin is worth since becoming President???

        • 2
          11

          This sounds like a stereotype whodunit fiction.
          I could not find a shred of evidence to support the thesis that Mr P got rid of Mr Y.
          Mr Y screwed up the economy and had to go sooner or later, although that was not the reason that he gave,

          • 10
            3

            Deadwood information is freely available provided you know where and how to look. ( not China Daily or Putin s media) I just provided the findings from investigation report , conducted after IMF money scandal. Check the Economy / GDP in 1992 when Yeltsin became President and at the end when he was forced out.

            • 0
              0

              The point is that you said Putin got Yeltsin out.
              Where is your evidence for that claim which I contested. (“I could not find a shred of evidence to support the thesis that Mr P got rid of Mr Y.”)
              Getting something wrong is no crime. But trying to cover it up is more than dishonesty.

          • 0
            0

            Hard to believe isn’t it?? Just like the missing 4.2 Billion fund

      • 10
        2

        Sorry because of typing error, my
        previous comment to Sarath got mixed up. Sarath , the strange coincidence is Putin becoming president and Billions of IMF loan going missing. Putin became President in just 3 years after joining politics. We know how much money was needed for a non politician like Trump and and Gotha to become President. Do we know how Putin got his funds??

        • 0
          7

          “Putin becoming president and Billions of IMF loan going missing”
          When did Putin become President and when did the money go missing?
          *
          On 19 March 1999, U.S. Treasury Secretary Robert Rubin had told “The New York Times” in an interview that the $4.8 loan the IMF allocated to Russia on 14 August 1998 was “probably spent improperly. To be more precise, it was misappropriated by Yeltsin’s [circle].”
          [https://www.rferl.org/a/1342417.html]
          *
          If you want to foul-mouth Putin do by all means.
          But avoid using false information and subjective guesswork.
          That is not something that one who claims to be not a hypocrite would do.

          • 0
            0

            Prof Deadwood there is nothing to foul mouth about Hitler , Pol pot , Rajapaksas and simila.r Megalomaniac like Putin. It’s just pathetic to see a learned so called professor like you trying to defend, exvuse , condone their sins

    • 0
      0

      Sarath , personally I am disappointed with your last comment and the stereotype referral you made about your made good friend living in the US. I still respect your opinion and hence this response.

  • 2
    10

    Chiv comes across as very clever with first-hand knowledge of Putin and other world leaders. Could it be that he has experience working with the CIA, KGB and MI6? Or could it be that all sorts of medicinal doses effect his pen when writing late in the evening? Consequently, fact, history and other complicated issues gets mixed up, like a sambol with all sorts of strange and messy ingredients. Apoi! very clever aney.

    • 10
      2

      Einstein Sonaive, in that case, why don’t you tell us , where the missing Billions are ?? You being a Lankan, missing funds must be so routine and trivial to notice ??? . Provided you know where and how to look information is freely available No need to be a member of any conspiracy agencies.By the way why do you need an alias, to come up with such intelligent observation.

      • 10
        2

        Is your friemd Chimpa working for CIA , KGB, or M 16 or could it be the psychatric cocktail Chimpa is on effecting ability to think ??? I understand Fact and history but what is other complicated issues ??? That only you seem to be aware. You mean typical Lankan BS to go with it. Ask your partner Chimpa to dish usual “cut and paste sambol ” of his / her , when ready. Very silly and childish aney.

  • 2
    10

    Information freely available, uncle Chiv saying. Correct. Dr Wijewardena’s above saying IMF allowed Boris Yeltsin administration to “misspend IMF money”. So “a vast sum of money had been siphoned off by corrupt politicians who had been supported by central bank officials through the US bank, Bank of New York, or BNY.” Dr Wijewardena also saying, “Many banks from Frankfurt to Australia to USA involved in these illegal transactions.” But reading and understanding Dr Wijewardena difficult, no? Better cut and paste Google. USA Google won’t let Putin creep in. Has only back door to FBI and CIA. Myself mostly Sinhala writing. But I’m adding Maldive fish to sub-standard uncle Chiv’s pol sambal. Then becomes tasty, no?

    • 10
      2

      I expected you to come back with this childish question. If there were more than 10,000 transactions, to different entities , using the same bank account, Mr.Wijewardena, is assuming all those Banks are inadvertently responsible. So it’s for him to answer you. Banks do transactions on behalf of their clients/ account holders. Hope you can understand that much. Unless and until , the banks are aware of the scandal it’s those account holders who are responsible for illegal transactions. By the way , BONY is a private entity and not treasury or central bank of US.( just like Bank of America). In Sinhala does Bank of Ceylon mean Central Bank/Treasury. There is no central Bank but US .Dept of Treasury. Doesn’t look like you read much to understand. I already mentioned the person who was then VP of that private entity, who helped in cheating IMF. Anyway, my purpose here is not to enlighten you on banking, so please continue enjoying , making variety of your sambols, which obviously seems to be your speciality.

      • 1
        9

        Chiv uncle giving banking lesson now. Must be Central Bank working, no? FBI and CIA side-line business. Clever man. Brain working like a vandura, jumping here and there, from nonsense to garbage dump. Doesn’t like pol-sambal. Must be McDonalds eating only. My schoolteacher saying McDonalds’ affects brain in long run. Signs already showing.

        • 9
          1

          OMG , You need a Psychiatrist more than anything.. Sorry didn’t expect a breakdown (of a patient), by making just a few comments.
          .

          • 9
            1

            Sonaive, sorry that I mistook you for a regular ( sane) commentator .

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