Management of the provident funds: Role of the Finance Ministry
Monday, 26 May 2014 00:00
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You have been the longest standing Treasury Secretary in our country. You have managed the country’s finances during very difficult times and done an excellent job. I would say you are the most qualified economist in the country. No one in the treasury or the Central Bank can match your intellect and experience.
As you aware the provident funds have been badly managed since independence and now it has gone from bad to worse. The Auditor General himself, appointed by the Government, accuses the fund managers for losing Rs. 12 billion in one year. That is tragic and must be stopped. The loss to the workers is well and truly now in the pockets of a few people. They have to be found out and prosecuted. You as a man of integrity must please prevail upon the leaders to stop those people in their tracks. The ETF comes directly under you.
The other issue now is how the banks are getting ruined by the appointment of friends and relatives by certain people occupying seats of power in the financial sector. The current Governor has appointed over six of his relatives. Two of closest relatives are chairmen. Appointing ex-Central Bankers to run banks is madness. They have never seen the inside of a business. Very soon the husband of the former head of the EPF, who ran the fund when it made a loss of over Rs. 11 billion according to the papers, will be installed in a Commercial Bank. Hope the bank does not go from most awarded to the least awarded? Why are you allowing this madness? You are responsible for providing oversight for the financial sector. History has shown us that everything finally comes to an end and the wrong do have to pay for their sins. Many Sri Lankans have confidence in you and the newspapers (must have the guts) to ensure that the workers’ retirement money will be safeguarded at any cost.
Palitha Fernando
