{"id":161746,"date":"2016-05-05T00:38:02","date_gmt":"2016-05-04T19:08:02","guid":{"rendered":"https:\/\/www.colombotelegraph.com\/?p=161746"},"modified":"2016-05-06T03:44:46","modified_gmt":"2016-05-05T22:14:46","slug":"sweeping-bond-scandals-under-the-carpet-biggest-blemish-on-government-chandra-warns-sirisena","status":"publish","type":"post","link":"https:\/\/www.colombotelegraph.com\/index.php\/sweeping-bond-scandals-under-the-carpet-biggest-blemish-on-government-chandra-warns-sirisena\/","title":{"rendered":"Sweeping Bond Scandals Under The Carpet Biggest Blemish On Government, Chandra Warns Sirisena"},"content":{"rendered":"

Good governance activist and former chairman of the Ceylon Chamber of Commerce, Chandra Jayaratne<\/span><\/a> has warned President Maithripala Sirisena that due to the bad governance at Central Bank, the good governance government is facing its biggest credibility threat.<\/p>\n

\"Chandra<\/a>

Chandra Jayaratne<\/p><\/div>\n

In a letter addressed to Sirisena, Jayaratne reminded how civil society and media protested early in the administration under his leadership, when a purported bond scam<\/span><\/a> was reported at the end of February, 2015.<\/p>\n

“Despite investigations by a Committee appointed by the Prime Minister<\/span><\/a> and later by COPE<\/span><\/a>, the elections of August 2015 intervened and there was no further progress despite several promises of further action. Civil Society efforts to have a Judicial review via a fundamental rights petition was also frustrated by not gaining the right to proceed. Financial media, financial analysts, securities management professionals and intellectual voices of advocacy prevailed long after these initiatives but regrettably brought forth no redress. The Monetary Board did not actively investigate nor initiate necessary additional controls and process changes to reverse the several weaknesses pointed out by civil society advocates and professionals,” Jayaratne said in his letter.<\/p>\n

He also highlighted about the strong possibility where the latest bond issuance this year is also riddled with continuing bad governance practices. “These include facilitation of interests of third parties via information leakages and questionable collusive transactions by managers in State-controlled entities. These deficiencies in ethical conduct and professional integrity are believed to have resulted in avoidable losses to the State, State institutions, the public at large and stakeholders of institutions such as the Employees Provident Fund,” he said.<\/p>\n

Jayaratne warned Sirisena that the continuation of such practices reflects poorly on his administration and leadership.<\/p>\n

We publish below the letter in full;<\/p>\n

President Maithripala Sirisena,
\nPresident of Sri Lanka,
\nJanadhipathi Mawatha,
\nColombo 1.<\/p>\n

Dear Mr. President,<\/p>\n

MAINTAINING PUBLIC CONFIDENCE IN \u201cYAHAPALANAYA\u201d IN THE FACE OF PURPORTED CONTINUING MAL PRACTICES IN BOND ISSUES<\/strong><\/p>\n

We in civil society are heartened by your May Day speech and recognize your commitment to good governance and to take hard action against actors and actions that are detrimental to peace, harmony and equitable socio-economic development.<\/p>\n

We are unanimous in our view that the purported bad governance practices occurring in the issuance of long dated bonds by the Central Bank remains the biggest potential threat to the credibility of good governance by the government under your leadership.<\/p>\n

Civil society and media protested early in the administration under your leadership, when a purported bond scam was reported at the end of February, 2015. Despite investigations by a Committee appointed by the Prime Minister and later by COPE, the elections of August 2015 intervened and there was no further progress despite several promises of further action. Civil Society efforts to have a Judicial review via a fundamental rights petition was also frustrated by not gaining the right to proceed. Financial media, financial analysts, securities management professionals and intellectual voices of advocacy prevailed long after these initiatives but regrettably brought forth no redress. The Monetary Board did not actively investigate nor initiate necessary additional controls and process changes to reverse the several weaknesses pointed out by civil society advocates and professionals.<\/p>\n

Unfortunately, there is a strong public perception that long dated bond issues in 2016 are also riddled with continuing bad governance practices. These include facilitation of interests of third parties via information leakages and questionable collusive transactions by managers in State-controlled entities. These deficiencies in ethical conduct and professional integrity are believed to have resulted in avoidable losses to the State, State institutions, the public at large and stakeholders of institutions such as the Employees Provident Fund.<\/p>\n

The stubborn rejection of transparency by the Monetary Board\/Central Bank regarding large State transactions with private entities is a sad reflection of the commitment and integrity of those leading the relevant State institutions. The continuation of such practices too reflects poorly on your administration and leadership.<\/p>\n

In the light of above, I urge you to please take immediate executive action outlined hereinafter;<\/p>\n

Presidential Commission:<\/strong><\/p>\n

Appoint a Presidential Commission with terms of reference to review the issuances by the Central Bank of bonds of duration 4 years or longer during the period 1st January 2015 to 30th April 2016. This review should also include such bond issues which were cancelled or where all bids were rejected.<\/p>\n

The Commission should determine whether<\/p>\n