President passed ball on Mahendran reappointment to COPE: JVP

Wednesday, 29 June 2016 00:58 - - {{hitsCtrl.values.hits}}

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By Chamodi Gunawardana

The Janatha Vimukthi Peramuna (JVP) yesterday charged President Maithripala Sirisena had neglected his responsibility of removing Central Bank Governor Arjuna Mahendran and passed the decision to the Committee on Public Enterprises (COPE).

JVP Leader Anura Kumara Dissanayake questioned why President Sirisena was willing to wait until the COPE report was finalised before making a decision on Mahendran’s reappointment, especially since he did not see kinput before appointing him as the Governor.

“We are wonder why President wantsCOPE to prove Mahendran’s innocence when there are many clear allegations against him. The President still has executive powers to make a correct decision on Mahendran. There is no need to wait for COPE’s findings,” he said.

Mahendran, under intense fire on allegations of insider trading, informed the Monetary Board last week that he would not seek an extension until the COPE report was finalised.

Dissanayake further charged that so far the Government had not adoptedany COPE suggestions over several State-owned institutions including Lankaputhra Development Bank (LDB) and Agriculture Insurance Board (AIB).

“Following inquiries by COPE over LDB and AIB, it directed the President to remove the Chairmen of those two institutes. However the Government disregarded these findings,” he stated, adding that there was no guarantee the same would not happen regarding the Central Bank Governor.

Dissanayake said that even if COPE decided Mahendran should be removed, it would be only belimited to a recommendation and the body did not have the power to order the Governor to step down.

Slamming Mahendran, Dissanayake claimed that prior COPE investigations had clear findings on the alleged Treasury bondscam which took placein February 2015 with Mahendran’sinvolvement.

“We believe Mahendran wanted to offer a higher profit for his son-in-law by issuing bonds higher than the initially announced limit and he changed the normal proceedings of the Central Bank in issuing bonds for his own interest. We believe such a person should not hold the position of Governor,” he alleged.