Bond Scam & Political Responsibility

By Rusiripala Tennakoon –January 6, 2018

Sri Lanka badly needs at-least a Ministerial Code if not a code of conduct for all our Parliamentarians. Innocent citizens are unaware of what their elected representatives should practice as reasonable good ethical practices on their behalf. Politicians in our country are undivided when it comes to increasing of their perks – be it salaries or other benefits including pension privileges. 

But rather lethargic and indecisive when it comes to declarations involving policy and responsibilities. What we see as ‘happenings’ under good democratic governance elsewhere continue to remain as unfulfilled dreams. It is a pity such a situation prevails even under a so called good governance regime! All the more unpalatable after nearly seventy years of being masters of our own destiny.

Breaking news of the Panama leaks shook the whole world in April 2016. Focus was centered on several leading political figures in addition to giants in the corporate field. We witnessed the response of many in public life immediately following this information leak.

In order to complete the record a few names are mentioned below;

 

On 5^th April 2016, ICELAND’s Prime Minister Sigmundur resigned his post when his name appeared,

Ukrainian Prime Minister resigned on 10^th April, Industrial Minister of Spain relinquished his duties on 15^th April.

Besides the political figures there were several others who resigned on moral grounds such as, Bert Meerstadt, ABN Amro Bank Board Member and FIFA ethics committee member JOHN,  and the President of Transparency International Chile,

President Mugabe of Zimbabwe was forced to resign after impeachment on corruption and mismanagement were threatened,

Theresa May fired  the one time  first secretary of State  and her  minister for the Cabinet Office Damian Green over a PORN cover up incident.

 

Michael Fallon Britain’s Defence Secretary was forced to quit on accusations of sexual harassment leveled against him;

Priti Patel, another cabinet minister of Theresa May’s government was removed for holding unofficial meetings with Israeli government officials during a private holiday.

These are some of the recent actions to uphold democracy and good governance while history records other similar events such as, sudden resignation of Lebanon PM; Richard Nixon, US President who had to quit due to the Watergate scandal and the Japanese PM who resigned a few months after his election to power due to his failure to honour election promises.

Alas!, a pity what we experience today here in our country. Governors of Central Banks refused reappointments are made Prime Ministerial advisers. Ministers virtually sacked for unethical conduct are leading political campaigns with the party leaders and enjoy highly prestigious political patronage! They appear in public platforms too and criticize the performance of high profile officials in extremely vulnerable positions that account for the good image of the country such as Auditor generals’, Attorney Generals ‘   etc. etc. Then we have Ministers who when accused of corrupt deals with facts and figures come out and publicly declare they have huge bank balances and therefore no need for them to rob ! Who cares what they have, the people only want to safeguard public money being misused, wasted and robbed.

We are also witnessing strange interpretations which appear to vivify the morale of degraded comrades by some ministerial characters. Most recent is the statement made by a cabinet minister about the Prime Ministers’ responsibility in the Central bank bond scam. While no one is interested in pinning any responsibility to any one, there are several issues that demand scrutiny and clarification due to facts revealed in the public domain on related matters, in the overriding national Interest. The following issues require specific answers rather than conciliatory whitewashings.

1. Are the following actions viewed in retrospect justified?

• The statement made by the PM in parliament on 17^th March 2015, where he maintained that  CBSL Governor Arjuna Mahendran has not committed any wrong !
• The selection of Mahendran as a suitable person to hold the position of the  Chairman of the Monetary Board of Sri Lanka,

a) While being a non-citizen of Sri Lanka who is not able to take the national oath of allegiance and loyalty.
b) With no proven acceptability for such a high post evaluated at a proper forum,
c) With no proven record of an unblemished previous background
d) Being a person connected/related to persons having dealings with the CBSL with a potential for future conflicts of interest and  insider dealings or access to sensitive information,

• The contradictions yet to be clarified, about the additional excess amounts of funds made out as required immediately one day before the questionable bond auction of 27^th February. Ravi Karunanayake under oath has stated a different amount and the former governor another amount while two cabinet ministers have stated yet a different position. What the PM stated in Parliament as the amount has not been corroborated by other evidence.
• The failure of the PM as the minister in charge of the CBSL to take adequate preventive measures after the 1st Bond scam was reported;

(I) Not sending Arjuna Mahendran at least on compulsory leave to facilitate the ongoing enquiries free of intervention /obstruction

(II) Not monitoring whether the son in law had divested himself of his interests in the primary dealer company licensed by the CBSL

(III) Failure to monitor whether similar events will be repeated as shown in the bond transactions of 29^th march and 31^st march 2016 in particular amidst the commotion already created.
(IV) Failure to obtain a report on the implementation mechanism and the  resulting consequences of the directive given by him personally to the Governor to change the bond auction system

Read More