Govt Tries To Slip ‘Protect Mahendrans’ Clause Into Debt Management Bill
January 29, 2018
The
Yahapalan Government, in the process of introducing new regulations
governing the management of the country’s debt, has scripted in
provisions granting immunity against prosecution to Central Bank
officials and members of the Monetary Board ‘if they act in good faith.’
The proposed regulations has ben gazetted and will be presented to
Parliament within the next three months as the Active Liability
Management Bill.
The said immunity is included in Section 9 which deals with ‘defence in
criminal or civil proceeding.’ Accordingly members of the Monetary
Board, officials of CB and those working for the line Ministry ‘cannot
be held liable, either for criminal matters or civil matters for
performing in good faith the duties and/or exercising the powers given
to them by this Act or any regulation, Order, decision or directive
issued and made.’
Deputy Minister of National Policies and Economic Affairs Dr Harsha de
Silva pooh-poohed concerns over the immunity clause. He told the Sunday
Times that ‘most of the laws have this as a standard clause and there is
nothing to be alarmed about.’
The Sunday Times, quoting unnamed analysts opined that ‘the immunity
clause in the Active Liability Management Bill appears to have a wider
meaning than what is contained in other bills.’
There is, for example, a safeguard through a connected clause in the
Monetary Law Act under Section 47 on ‘Protection for acts done in good
faith,’ where it is clearly stated that ‘No member of the Monetary Board
or officer or servant of the Central Bank shall be liable for any
damage or loss suffered by the bank unless such damage or loss was
caused by his misconduct or willful default.’
In the case of the Central Bank bond issue scam, for example, misconduct
and willful default have been established by the various commissions
and committees inquiring into the same. As such the plea ‘I acted in
good faith,’ does not stand.
