PM takes up bond issue in P’ment

By Ashwin Hemmathagama – 

Our Lobby Correspondent

Prime Minister Ranil Wickremesinghe yesterday sought to set the record straight on the controversial bond transactions probed by the Presidential Commission, outlining multiple steps taken by the Government to address the issue, advocating further investigations into sales during 2008-2014 and calling for former finance minister Mahinda Rajapaksa to make a special statement in Parliament.  

Touching on efforts to recover losses incurred by the State due to the controversial bond issuance, Wickeremesinghe informed Parliament that the Central Bank had detained Rs. 12 billion of Perpetual Treasuries’ funds, which could be used to cover the Rs. 11 billion mentioned in the Presidential Committee Report.

In the absence of the report of the special presidential commission to inquire into the allegations of malpractices in the bond issue tabled in Parliament necessary for the debate, the Prime Minister delivered a ministerial statement to the House, which led to an exchange of fisticuffs that left a few MPs on both sides injured.

Despite Joint Opposition MPs protesting in the Well of Parliament and disturbing proceedings, the Prime Minister went on with his statement, highlighting the allegedly fraudulent transactions he charged had taken place during the tenure of the Rajapaksa administration and calling for investigations.

“During 2008-2014 most bond issuance was through direct private placements. They lacked transparency. During this period a total of Rs. 5,147 billion worth of bonds were issued out of which Rs. 4,702 billion were direct private placements. Therefore, over 90% of the issuances during that era were direct private placements. Former president and minister of finance MP Mahinda Rajapaksa should explain this to the Parliament,” said the Prime Minister.

According to the Prime Minister, it is the first time in the country’s history that an impartial investigation of such nature was conducted despite its complexity. With the new government coming into power on 8 January 2015, Parliament has received the monetary power and administrative responsibilities which were removed by the Rajapaksa regime, the Premier explained.

“Nobody knew anything about these transactions before, not even the ministers or state officials. But we have changed that. The Presidential Commission report has recommended that investigations should be made over the transactions that took place during 2008-2014. Our Government strengthened Parliament’s authority over public finances and it was reported frequently in the House. Today the bond issuance has become a political issue used to sling mud at different political parties and media. Some claim interest rates have gone up due to the bond issuance and also the dollar rate has appreciated. We should not give into this false news but should find the truth,” he said, assuring that both the President and himself would continue to build a new political culture ending an era where political parties were at each other’s necks.

In his statement, the PM further explained the facts that were found in the COPE report in addition to the report of the Presidential Commission. “Talk about this bond issuance came up in March 2015. I appointed the Gamini Pitipana Committee comprised of three lawyers. The Pitipana Committee recommended that further investigations were required on the matter and it was tabled in Parliament on 19 May 2015. We debated the report on 21 May 2015. Then the COPE investigations started under the leadership of JVP MP Sunil Handunnetti. Concluding the long investigations, the COPE tabled a report on 28 October 2016. It was debated on 24 January 2017,” he said.

“Meanwhile, I have submitted the two reports, including the special report the Auditor General has submitted to the COPE, to the Attorney General on 31 October 2016. I have obtained legal advice on the action that can be taken against the culprits including CBSL officers and former governor Arjuna Mahendran if they have failed to follow the regulations. We have submitted all documents to the Attorney General through the Secretary General of Parliament,” he added.