24 September, 2018

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Ranil-Bond: ‘Arjuna Denied, Now Call Explanations From Tender Board & Public Debt Department’ Says RMB

“The Governor of the Central Bank, Arjuna Mahendran has denied that he participated in the decision to take Rs 10 billion instead of Rs 1 billion, the amount for which offers were called. In that case the members of the Committee should be called upon to explain why they took Rs 10 billion at a higher rate of interest from the same tender knowing well from their fast experience that they could borrow cheaper at the following tender the next week. In fact the interest rate was less in the very next tender. ” says a former Secretary to the Ministry of Finance, R.M.B Senanayake.

RanilThe three-member committee appointed by Prime Minister Ranil Wickremesinghe to probe into the controversy that has emerged over the issuance of Treasury Bonds has said that the Central Bank Governor Arjuna Mahendran had no direct role in deciding to accept bids over and above the one billion rupees stipulated in the 30-year bond tender and accept up to 10 billion rupees.

R.M.B Senanayake, who was a member of the former Ceylon Civil Service told Colombo Telegraph“The Minister of Finance should call upon the Monetary Board to call for the explanation of the Members of the Public Debt Committee to justify their decision. The Minister of Finance should direct the Monetary Board to do so.”

The Central Bank now directly comes under Ranil Wickremesinghe‘s Economic Affairs and Policy Planning Ministry.

Related posts;

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

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

  • 1
    7

    Singapore Mahendran told the Media a few days ago, that he is innocent and knows nothing about the LKR 10 Billion which Ranil and Ravi borrowed at 13 %..

    He even exonerated the Son in Law saying that little Arjuna didn’t have anything to do with the Primary Dealer..

    Mahendran further said “Bring it On” when a reporter asked whether he is prepared to face Ranil’s F,,,,, CID…

    Is Mahendran innocent of this financial Swindle of the Century?..

    Or is it an expression of faith in Ranil’s F….. CID?..

  • 2
    1

    RMB is right. Someone should be answerable. Over to you PM.

  • 8
    1

    This issue is the one thing that the public hold against the present government. It is doing immense harm, to Ravi Karunanayake, Ranil Wickremasinghe, and ultimately even to President Maithripala Sirisena whom nobody links with the actual happenings.

    I know that Arjuna Mahendran has recently been acting with seeming confidence. I just don’t understand Finance, so I cannot even try to evaluate what he is doing, although it is obvious that he has competence and a good track record. However, doesn’t he realise that there are vital political dimensions to all this? What he could do for the land of his birth is to resign, since I’m sure that he has a secure livelihood.

    Yes, the Monetary Board must now be questioned.

    • 2
      0

      Completely agree with all what you’ve stated.

      Frankly, if I were ‘Singapore Mahendran’ I would resign, simply as a good ‘friend’ of the current PM, he’s bringing nothing but disrepute to his old, close friend. That’s what a ‘friend’ would do

      Unfortunately, next question would be, well, is he going in to retirement after that? With this slur on his work status, it’s unlikely he’d find a job back in his new found adopted home-land, nor any other country. Insider trading is an extremely serious crime punishable by jail sentencing in all countries, maybe with the exception of the land of paradise.

      His disowning any knowledge of his son-in-law being close with the last regime is laughable. Not with all the evidence provided by media plus I’m sure the mega deals they’ve transacted. Even the, then President MR attended his nuptials, along with the rest of the MR clan. I guess they were passing by and decided to ‘drop by’?

      Son-in-law tendering his resignation from Perpetual is enough for him? Hey, he claims maybe some other family members may have interests in it. He doesn’t know that it all comes under one banner, and the entire company is under one roof, and mother company? Any profits made, is shared equally and enjoyed by all members of the Aloysius family. Oh, come on! Even a beggar, to the man who works at the petrol shed at the D. S junction knows that’s, but poor Singapore Mahendran is clueless!

      Darn! Must be either amnesia or dementia

  • 5
    1

    The answer is simple. The tender board is used to taking commands from the governor. The governor said the bank needs 10 billion. The board took 10 Billion. Why did the board not wait till the next week and take 10 billion at lower rates?. The board has not been paid to think for all these years so thinking is no longer part of the boards business.

    Holding the board responsible is the only way that good governance can be established. If they have acted on what the governor said then they have abdicated their responsibilities and should be dismissed. The next board may then be able to do its job as it should.

  • 4
    1

    It is so easy to deny, when one is in high position: even MR and all his “staff” now deny and call it a “smear campaign”. If I were Ravi K and Arjuna M., I would resign, if a serious question like this is raised. Assuming that Mahendran is innocent, the fact that his son-in-law who also has close ties to the previous regime has benefitted abundantly is enough reason to step-down, at least for the sake of ensuring that My3 wins the upcoming elections.

  • 0
    0

    We are in the dark on this issue. What is the actual loss to the country, if there is a loss
    Is it not possible to cancel this bond and call fresh tenders

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